Laws & Executive Issuances: Public Accountability (1903-2010)

LAWS & EXECUTIVE ISSUANCES
(1907-2010)
PUBLIC ACCOUNTABILITY
AND ETHICS
Republic of the Philippines
House of Representatives
Quezon City, Metro Manila
foreword
public office as a public trust vests

on every public servant the duty to
be accountable to the people at all
mes. For public servants, there is no
escaping the duty to account.
Beyond the use of public funds in the performance of public

duty, the mere acceptance of the mandate to represent the people
to arculate their senments and their aspiraons, and safeguard
their best interests, binds the public officer – especially those elected
as representaves of the people – to answer for their acons, their
conduct, and their actual accomplishments during their tenure in
office.
This compendium of Philippine laws and execuve issuances

on public accountability, part of a connuing legislave publicaon
program iniated by the Office of the Secretary General with our
support, is intended to serve as a reference material for legislators
and policy makers in understanding the substance and implicaons
of laws governing the conduct of public officials, and guide their
iniaves at craing and formulang policies and programs that
will strengthen the mechanisms of public accountability and render
public office truly an office of public trust.
This compendium, which is a most mely and relevant
instuonal publicaon, will also be immensely helpful to students
and researchers, and the general public as a whole, in aaining a
broader perspecve on the spectrum and the evoluon of policies in
the arena of public accountability across the years of our existence
as a democrac representave government.
Laws and execuve issuances craed from the American

period to the Commonwealth era, the Japanese occupaon, up to
the country’s imdependence from American rule to date covering
the years 1900 to 2011 are brought together in this compendium.
The reader will see laws that are named Acts, Commonwealth Acts,
Presidenal Decrees, Batas Pambansa and Republic Acts designang
statutes passed in specific periods of legislave history, as well as
Execuve Orders which exemplify Presidenal issuances and other
execuve regulaons implemenng pernent laws.
This is the fih book in our series of topical compilaon

of laws produced by the House Secretariat, a most commendable
program of legislave documentaon which certainly enriches the
terrain of legislave policy making in the country.
I acknowledge and commend the reless efforts devoted

to the producon of this book by the House Secretary General
Marilyn B. Barua-Yap and the Legislave Informaon and Research
Management Department consisng of the Legislave Library
Service and the Archives and Museum Management Service, as well
as the Prinng and Reproducon Service.
FELICIANO BELMONTE, JR.

Speaker
prefatory remarks
We are grateful to the the Honorable Speaker Feliciano

Belmonte, Jr. for his unwavering support to our connuing legislave
publicaon program bannered by the series of topical compilaons
of laws and related execuve issuances.
Many mes, we have been asked why we are publishing

compilaons of laws and execuve issuances on specific areas
of policy. With the texts of laws and pernent issuances already
available in our library and our archives, why go through the trouble
of gathering and compiling these laws and issuances?
Our objecve is to bring our laws and their implemenng

rules and regulaons closer to the consciousness and understanding
of our people, most especially to the scholars, academicians,
researchers and policy studies specialists whose efforts impact on
the craing of laws and related policies in our country. By bringing
together laws and issuances on a specific topic or area of policy in
one compilaon, we are not only shortening the me for finding and
retrieving copies of laws and issuances, but we are also providing
a comprehensive panorama of the evoluon and state of policy
acons on a parcular area of policy concern. This ensures beer
understanding of policy iniaves in their respecve socio-polical
and historical contexts as well as a more incisive appreciaon of the
substance of these policies.
The relevance of this publicaon cannot be overstated,
especially in these mes when there is yet no instuonal arm in
the House of Representaves that could respond to the need for an
instuonal publicaons machinery that can put out to the Filipino
public and to the world, the wealth of our legislave informaon
materials in the House of Representaves – such immense wealth
of instuonal memory that should not be neglected because it is
the net that captures, across our history, how the men and women
of the Philippine Legislature grappled with craing laws that are
responsive to the conngent and enduring needs and aspiraons of
the naon and the Filipino people.
That this compendium brings together all laws and execuve

issuances on public accountability makes this 5th of the series of
our topical compilaons even more relevant – as it is put out to the
public and to our legislators, academics, researchers and scholars at
a me when the demand for authenc public accountability of all
public officials is at its most feverish pitch.
To our legislators, past and present, and the Filipino

people who will never abdicate their aspiraons for the blessings
of democracy under the sovereignty of the law, this publicaon is
humbly offered.
MARILYN B. BARUA YAP

Secretary General
LEGISLATIVE MEASURES
TABLE OF CONTENTS
LAWS AND EXECUTIVE ISSUANCES ON
PUBLIC ACCOUNTABILITY AND ETHICS
Part I
PUBLIC LAWS PAGE
1987 CONSTITUTION 3
ARTICLE XI – ACCOUNTABILITY OF PUBLIC OFFICERS
ACT NO. 5 8
AN ACT FOR THE ESTABLISHMENT AND MAINTENANCE OF AN
EFFICIENT AND HONEST CIVIL SERVICE IN THE PHILIPPINE
ISLANDS
ACT NO. 12 11
AN ACT PRESCRIBING THE METHOD TO BE ADOPTED BY
THE INSULAR TREASURER IN KEEPING AND RENDERING
ACCOUNTS OF HIS RECEIPTS AND DISBURSEMENTS
ACT NO. 190 12

AN ACT PROVIDING A CODE OF PROCEDURE IN CIVIL ACTIONS
AND SPECIAL PROCEEDINGS IN THE PHILIPPINE ISLANDS
ACT NO. 328 13

AN ACT AMENDING SECTION TWO OF ACT NUMBERED TWO
HUNDRED AND FIFTEEN, ESTABLISHING AND REGULATING
ACCOUNTABILITY FOR PUBLIC PROPERTY IN THE PHILIPPINE
ARCHIPELAGO
i
LAWS AND EXECUTIVE ISSUANCES ON PUBLIC ACCOUNTABILITY
PUBLIC LAWS PAGE
ACT NO. 749 14

AN ACT REQUIRING OFFICERS AND AGENTS OF THE INSULAR
GOVERNMENT WHOSE DUTY IT IS TO RECEIVE AND DEPOSIT
REVENUES OR OTHER MONEYS IN THE INSULAR TREASURY
OR IN A DESIGNATED DEPOSITORY TO DEPOSIT THE SAME
PROMPTLY, AND PROVIDING A PENALTY FOR FAILURE
TO DO SO; AND ALSO A PENALTY FOR FAILURE BY ANY
ACCOUNTABLE OFFICER OF THE INSULAR GOVERNMENT
OR PROVINCIAL GOVERNMENTS TO RENDER ACCOUNT AS
REQUIRED BY LAW
ACT NO. 839 16

AN ACT TO AMEND ACT NUMBERED FIFTY-TWO, ENTITLED
“AN ACT PROVIDING FOR EXAMINATIONS OF BANKING
INSTITUTIONS IN THE PHILIPPINE ISLANDS, AND FOR
REPORTS BY THEIR OFFICERS”
ACT NO. 1044 17

AN ACT TO PROVIDE FOR SUBMISSION TO THE CIVIL
GOVERNOR OF ANNUAL REPORTS BY ALL PROVINCIAL
GOVERNORS, AND REPEALING SUCH PORTIONS OF ACT
NUMBERED EIGHTY-THREE, THE PROVINCIAL GOVERNMENT
ACT, AND ITS AMENDMENTS, AND OF ACT AND AMENDMENTS
THEREOF PROVIDING FOR THE ESTABLISHMENT OF CIVIL
GOVERNMENT FOR THE PROVINCE OF BENGUET, LEPANTO-
BONTOC, NUEVA VIZCAYA, MINDORO, AND PARAGUA AS ARE
INCONSISTENT WITH THE PROVISIONS OF THIS ACT
ACT NO. 1054 19

AN ACT TO AMEND SECTION ELEVEN OF ACT NUMBERED
SIX HUNDRED AND NINETEEN, ENTITLED “AN ACT TO
PROMOTE GOOD ORDER AND DISCIPLINE IN THE PHILIPPINES
CONSTABULARY,” SO AS TO PROVIDE THAT WHERE THE
ACCUSED HAS BEEN CONVICTED BY SUMMARY COURT
THREE TIMES WITHIN A YEAR HE MAY BE SENTENCED TO
BE DISHONORABLY DISCHARGED AND TO FORFEIT ALL PAY
AND ALLOWANCES DUE OR TO BECOME DUE, IN ADDITION
TO ANY OTHER PENALTY PROVIDED BY LAW
ii
PUBLIC LAWS PAGE
ACT NO. 1072 21

AN ACT AMENDING ACT NUMBERED FIVE, ENTITLED “AN
ACT FOR THE ESTABLISHMENT AND MAINTENACE OF AN
EFFICIENT AND HONEST CIVIL SERVICE IN THE PHILIPPINE
ISLANDS.” AS AMENDED BY ACTS NUMBERED FORTY-SEVEN,
ONE HUNDRED AND TWO, ONE HUNDRED AND SIXTY-SEVEN,
THREE HUNDRED AND SIX, AND FIVE HUNDRED AND EIGHTY-
NINE
ACT NO. 1096 27

AN ACT AMENDING ACT NUMBERED TWENTY-FIVE, ENTITLED
“AN ACT PROVIDING FOR THE APPOINTMENT AND REMOVAL
OF SUBORDINATE OFFICERS AND EMPLOYEES IN CERTAIN
DEPARTMENTS AND BUREAUS OF THE GOVERNMENT OF THE
PHILIPPINE ISLANDS,” AS AMENDED
ACT NO. 1161 29

AN ACT DECLARING ANY BONDED OFFICE OR EMPLOYEE OF
THE CIVIL GOVERNMENT WHO LEAVES OR ATTEMPTS TO
LEAVE THE PHILIPPINE ISLANDS WITHOUT FIRST SECURING
A CLEARANCE FROM THE AUDITOR TO BE GUILTY OF A
MISDEMEANOR
ACT NO. 1373 30

AN ACT TO AMEND ACT NUMBERED SIX HUNDRED AND
NINETEEN, ENTITLED “AN ACT TO PROMOTE GOOD ORDER
AND DISCIPLINE IN THE PHILIPPINES CONSTABULARY”
ACT NO. 1605 31

AN ACT FORBIDDING, UNDER PENALTY, BONDED OFFICERS
OR BONDED EMPLOYEES, OR FORMER BONDED OFFICERS
OR BONDED EMPLOYEES, OF THE INSULAR GOVERNMENT
, OR OF ANY PROVINCIAL OR MUNICIPAL GOVERNMENT
IN THE PHILIPPINE ISLANDS, OR OF THE CITY OF MANILA,
FROM LEAVING OR ATTEMPTING TO LEAVE THE PHILIPPINE
ISLANDS WITHOUT FIRST SECURING A CERTIFICATE FROM
THE INSULAR AUDITOR, AND REPEALING ACT NUMBERED
ELEVEN HUNDRED AND SIXTY-ONE
iii
PUBLIC LAWS PAGE
ACT NO. 1726 33

AN ACT TO AMEND ACT NUMBERED FIFTEEN HUNDRED
AND EIGHTY – TWO, KNOWN AS “THE ELECTION LAW,”
BY DISQUALIFYING CERTAIN PERSONS FROM HOLDING
PROVINCIAL OR MUNICIPAL OFFICES AND AUTHORIZING
THE GOVERNOR-GENERAL TO REMOVE INELIGIBLE PERSONS
FROM OFFICE
ACT NO. 1739 35

AN ACT CREATING THE “FIDELITY-BOND PREMIUM FUND”
PROVIDING FOR ASSURANCE AGAINST LOSSES, SHORTAGES,
AND DEFALCATIONS BY OFFICERS OR EMPLOYEES
ACCOUNTABLE FOR PUBLIC FUNDS AND PUBLIC PROPERTY,
AND FOR OTHER PURPOSES
ACT NO. 1740 44

AN ACT PROVIDING FOR THE PUNISHMENT OF PUBLIC
OFFICERS AND EMPLOYEES WHO FAIL OR REFUSE TO
ACCOUNT FOR PUBLIC FUNDS OR PROPERTY OR WHO MAKE
PERSONAL USE OF SUCH FUNDS OR PROPERTY, OR ANY PART
THEREOF, OR WHO MISAPPROPRIATE THE SAME, OR ANY
PART THEREOF, OR WHO ARE GUILTY OF ANY MALVERSATION
WITH REFERENCE TO SUCH FUNDS OR PROPERTY, OR WHO
THROUGH ABANDONMENT, FAULT, OR NEGLIGENCE PERMIT
ANY OTHER PERSON TO ABSTRACT, MISAPPROPRIATE, OR
MAKE PERSONAL USE OF THE SAME
ACT NO. 1980 46

AN ACT TO PROVIDE FOR THE CREATION OF A COMMISSIONED
AND ENLISTED SERVICE WITHIN THE BUREAU OF NAVIGATION,
THE CREATION OF A PENSION FUND IN CONNECTION
THEREWITH, AND FOR THE PUNISHMENT OF OFFENSES
AGAINST GOOD ORDER AND DISCIPLINE WITHIN SUCH
SERVICE.
iv
PUBLIC LAWS PAGE
ACT NO. 3192 54

AN ACT TO AMEND AND REPEAL CERTAIN PROVISIONS OF
THE ACT CREATING A PUBLIC UTILITY COMMISSION, AND
FOR OTHER PURPOSES
ACT NO. 3815 56

AN ACT REVISING THE PENAL CODE AND OTHER PENAL
LAWS
COMMONWEALTH ACTS PAGE
COMMONWEALTH ACT NO. 320 75

AN ACT PRESCRIBING CERTAIN ADDITIONAL FUNCTIONS OF
THE GENERAL AUDITING OFFICE

AN ACT TRANSFERRING THE AUDIT OF THE BOOKS AND
ACCOUNTS OF PUBLIC SERVICES FROM THE PUBLIC
SERVIVCE COMMISSION TO THE GENERAL AUDITING OFFICE
AND PROVIDING FUNDS THEREFOR

AN ACT FIXING THE TIME WITHIN WHICH THE AUDITOR
GENERAL SHALL RENDER HIS DECISIONS AND PRESCRIBING
THE MANNER OF APPEAL THEREFROM

A N A C T R E L AT I N G TO T H E P R O C E D U R E I N T H E
ADMINISTRATIVE DISCIPLINE OF SUBORDINATE OFFICERS
AND EMPLOYEES IN THE CIVIL SERVICE AND CREATING A
CIVIL SERVICE BOARD OF APPEALS

AN ACT TO PENALIZE ANY VIOLATION OF SECTION 17,
ARTICLE VI, OR SUBSECTION (2), SECTION 11, ARTICLE VII OF
THE CONSTITUTION OF THE PHILIPPINES, AS AMENDED
v
BATAS PAMBANSA PAGE
BATAS PAMBANSA BLG. 242 85

AN ACT PRESCRIBING THE PERIOD WITHIN WHICH A
DENOUNCED PUBLIC OFFICER MAY BRING ACTION
AGAINST AN INFORMANT OR WITNESS WHO GAVE FALSE
OR MALICIOUS TESTIMONY, AMENDING FOR THE PURPOSE
SECTION TWO OF PRESIDENTIAL DECREE NUMBERED SEVEN
HUNDRED FORTY-NINE, “GRANTING IMMUNITY FROM
PROSECUTION TO GIVERS OF BRIBES AND OTHER GIFTS AND
TO THEIR ACCOMPLICES IN BRIBERY AND OTHER GRAFT
CASES AGAINST PUBLIC OFFICERS.”
BATAS PAMBANSA BLG. 871 86

AN ACT AMENDING ARTICLES TWO HUNDRED TEN AND
TWO HUNDRED ELEVEN OF ACT NUMBERED THIRTY-EIGHT
HUNDRED AND FIFTEEN, OTHERWISE KNOWN AS THE
REVISED PENAL CODE, AS AMENDED, TO INCREASE THE
PENALTY FOR THE OFFENSE OF BRIBERY
REPUBLIC ACTS PAGE
REPUBLIC ACT NO. 10 88

AN ACT PENALIZING USURPATION OF PUBLIC AUTHORITY

AN ACT TO AMEND SECTION EIGHT OF ACT NUMBERED
FORTY-ONE HUNDRED AND NINE, AS AMENDED, ENTITLED,
“AN ACT TO CREATE AN ANTI-USURY BOARD, TO PRESCRIBE
THE DUTIES AND FUNCTIONS OF THE SAID BOARD, AND FOR
OTHER PURPOSES”

AN ACT TO AMEND ARTICLE ONE HUNDRED AND SEVENTY-
SEVEN OF THE REVISED PENAL CODE

AN ACT TO ORDAIN AND INSTITUTE THE CIVIL CODE OF THE
PHILIPPINES
vi
REPUBLIC ACTS PAGE

AN ACT TO REQUIRE ALL BUREAUS, OFFICES, AGENCIES AND
INSTRUMENTALITIES OF THE GOVERNMENT, INCLUDING
GOVERNMENT OWNED OR CONTROLLED CORPORATIONS,
PROVINCES, CITIES AND MUNICIPALITIES, TO DEDUCT
AND WITHHOLD FROM ANY MONEY PAYMENT TO PRIVATE
INDIVIDUALS, CORPORATIONS, PARTNERSHIPS, AND/OR
ASSOCIATIONS, ANY AND ALL TAXES DUE AND PAYABLE ON
ACCOUNT OF SAID MONEY PAYMENT

AN ACT INCREASING THE PENALTY FOR THE CRIME OF
MALVERSATION OF PUBLIC FUNDS OR PROPERTY, BY
AMENDING ARTICLE TWO HUNDRED SEVENTEEN OF THE
REVISED PENAL CODE

AN ACT DECLARING FORFEITURE IN FAVOR OF THE STATE
ANY PROPERTY FOUND TO HAVE BEEN UNLAWFULLY
ACQUIRED BY ANY PUBLIC OFFICER OR EMPLOYEE AND
PROVIDING FOR THE PROCEEDINGS THEREFOR

AN ACT PROHIBITING DISCLOSURE OF OR INQUIRY INTO,
DEPOSITS WITH ANY BANKING INSTITUTION AND PROVIDING
PENALTY THEREFOR

AN ACT TO AMEND AND REVISE THE LAWS RELATIVE TO
PHILIPPINE CIVIL SERVICE

ANTI-GRAFT AND CORRUPT PRACTICES ACT
vii
REPUBLIC ACTS PAGE

AN ACT TO AMEND SECTION SEVEN OF REPUBLIC ACT
NUMBERED THIRTY HUNDRED AND NINETEEN, OTHERWISE
KNOWN AS “THE ANTI-GRAFT AND CORRUPT PRACTICES
ACT” SO AS TO EXEMPT CLASSROOM TEACHERS, LABORERS,
CASUAL AND TEMPORARY EMPLOYEES, AND BARRIO
OFFICIALS FROM THE REQUIREMENTS THEREOF

AN ACT AMENDING SECTION THIRTY-TWO OF REPUBLIC
ACT NUMBERED ONE HUNDRED AND EIGHTY, AS AMENDED,
OTHERWISE KNOWN AS “THE REVISED ELECTION CODE”, SO
AS TO REQUIRE CERTAIN INFORMATION REGARDING INCOME
TAXES OF CANDIDATES

AN ACT TO CONVERT THE DIVISION OF STANDARDS
UNDER THE BUREAU OF COMMERCE INTO A BUREAU OF
STANDARDS, TO PROVIDE FOR THE STANDARDIZATION
AND/OR INSPECTION OF PRODUCTS AND IMPORTS OF THE
PHILIPPINES AND FOR OTHER PURPOSES

AN ACT TO AMEND REPUBLIC ACT NUMBERED THREE
THOUSAND FOUR HUNDRED AND FIFTY-TWO, ENTITLED
“AN ACT TO ADOPT A PROGRAM TO STABILIZE THE PRICE
OF PALAY, RICE AND CORN, TO PROVIDE INCENTIVES
FOR PRODUCTION AND TO CREATE THE RICE AND CORN
ADMINISTRATION TO IMPLEMENT THE SAME, AND TO
PROVIDE FUNDS THEREFOR”

AN ACT TO SAFEGUARD THE HEALTH OF THE PEOPLE AND
MAINTAIN THE DIGNITY OF THE NATION BY DECLARING
IT A NATIONAL POLICY TO PROHIBIT THE COMMERCIAL
IMPORTATION OF TEXTILE ARTICLES COMMONLY KNOWN
AS USED CLOTHING AND RAGS
viii
REPUBLIC ACTS PAGE

AN ACT PUNISHING THE WITHHOLDING OF THE RELEASE
OF THE TEN PERCENT SHARE OF THE BARRIO IN REAL
ESTATE TAXES, AMENDING FOR THE PURPOSE REPUBLIC
ACT NUMBERED TWENTY-THREE HUNDRED SEVENTY,
OTHERWISE KNOWN AS THE BARRIO CHARTER

AN ACT AMENDING CERTAIN SECTIONS OF THE TARIFF AND
CUSTOMS CODE OF THE PHILIPPINES

AN ACT AMENDING CERTAIN SECTIONS OF COMMONWEALTH
ACT NUMBERED FOUR HUNDRED SIXTY-SIX, AS AMENDED,
OTHERWISE KNOWN AS THE NATIONAL INTERNAL REVENUE
CODE

AN ACT REGULATING THE AWARD OF CONTRACTS FOR THE
SUPPLY TO, OR PROCUREMENT BY, ANY GOVERNMENT-
OWNED OR CONTROLLED CORPORATION, COMPANY, AGENCY
OR MUNICIPAL CORPORATION OF MATERIALS, EQUIPMENT,
GOODS AND COMMODITIES, AND PROVIDING PENALTY FOR
THE VIOLATION THEREOF

AN ACT GRANTING FURTHER AUTONOMOUS POWERS TO
LOCAL GOVERNMENTS

AN ACT TO PROMOTE HIGHER STANDARD OF EFFICIENCY AND
JUSTICE IN THE ADMINISTRATION OF THE LAWS AS WELL AS
TO BETTER SERVE THE RIGHT OF THE PEOPLE TO PETITION
THE GOVERNMENT FOR REDRESS OF GRIEVANCES, CREATING
THEREFOR THE OFFICE OF THE CITIZEN’S COUNSELOR
ix
REPUBLIC ACTS PAGE

AN ACT DECLARING A NATIONAL POLICY ON THE PETROLEUM
INDUSTRY, REGULATING THE ACTIVITIES AND RELATIONS OF
PERSONS AND ENTITIES ENGAGED THEREIN, ESTABLISHING
AN OIL INDUSTRY COMMISSION TO EFFECTUATE THE SAME,
AND DEFINING ITS FUNCTIONS, POWERS, OBJECTIVES, AND
FOR OTHER PURPOSES

ELECTION CODE OF 1971

AN ACT ESTABLISHING A CODE OF CONDUCT AND ETHICAL
STANDARDS FOR PUBLIC OFFICIALS AND EMPLOYEES, TO
UPHOLD THE TIME-HONORED PRINCIPLE OF PUBLIC OFFICE
EING A PUBLIC TRUST, GRANTING INCENTIVES AND REWARDS
FOR EXEMPLARY SERVICE, ENUMERATING PROHIBITED
ACTS AND TRANSACTIONS AND PROVIDING PENALTIES FOR
VIOLATIONS THEREOF AND FOR OTHER PURPOSES
RULES IMPLEMENTING THE CODE OF CONDUCT AND ETHICAL 182

STANDARDS FOR PUBLIC OFFICIALS AND EMPLOYEES
(RA NO. 6713)

AN ACT PROVIDING FOR AN ORGANIC ACT FOR THE
AUTONOMOUS REGION IN MUSLIM MINDANAO

AN ACT PROVIDING FOR THE FUNCTIONAL AND STRUCTURAL
ORGANIZATION OF THE OFFICE OF THE OMBUDSMAN, AND
FOR OTHER PURPOSES

AN ACT STRENGTHENING CIVILIAN SUPREMACY OVER
THE MILITARY BY RETURNING TO THE CIVIL COURTS
x
REPUBLIC ACTS PAGE
THE JURISDICTION OVER CERTAIN OFFENSES INVOLVING

MEMBERS OF THE ARMED FORCES OF THE PHILIPPINES,
OTHER PERSONS SUBJECT TO MILITARY LAW, AND THE
MEMBERS OF THE PHILIPPINE NATIONAL POLICE, REPEALING
FOR THE PURPOSE CERTAIN PRESIDENTIAL DECREES

AN ACT DEFINING AND PENALIZING THE CRIME OF
PLUNDER

AN ACT PROVIDING FOR A LOCAL GOVERNMENT CODE OF
1991

AN ACT INCREASING THE PENALTIES FOR TAX EVASION,
AMENDING FOR THIS PURPOSE THE PERTINENT SECTIONS OF
THE NATIONAL INTERNAL REVENUE CODE, AS AMENDED

AN ACT TO REVITALIZE AND STRENGTHEN THE BUREAU OF
CUSTOMS, AMENDING FOR THE PURPOSE CERTAIN SECTIONS
OF THE TARIFF AND CUSTOMS CODE OF THE PHILIPPINES,
AS AMENDED

AN ACT TO IMPOSE THE DEATH PENALTY ON CERTAIN
HEINOUS CRIMES, AMENDING FOR THAT PURPOSE THE
REVISED PENAL LAWS, AS AMENDED, OTHER SPECIAL PENAL
LAWS, AND FOR OTHER PURPOSES

AN ACT TO STRENGTHEN THE FUCTIONAL AND STRUCTURAL
ORGANIZATION OF THE SANDIGAN BAYAN, AMENDING FOR
THAT PURPOSE PRESIDENTIAL DECREE NUMBER 1606, AS
AMENDED
xi
REPUBLIC ACTS PAGE

AN ACT FURTHER DEFINING THE JURISDICTION OF
THE SANDIGANBAYAN, AMENDING FOR THE PURPOSE
PRESIDENTIAL DECREE NO. 1606, AS AMENDED, PROVIDING
FUNDS THEREFOR, AND FOR OTHER PURPOSES

AN ACT AMENDING CERTAIN PROVISIONS OF PRESIDENTIAL
DECREE NO. 1464, OTHERWISE KNOWN AS THE TARIFF AND
CUSTOMS CODE OF THE PHILIPPINES, AS AMENDED, AND FOR
OTHER PURPOSES

AN ACT INSTITUTING A FRAME WORK OF GOVERNANCE
FOR BASIC EDUCATION, ESTABLISHING AUTHORITY AND
ACCOUNTABILITY, RENAMING THE DEPARTMENT OF
EDUCATION, CULTURE AND SPORTS AS THE DEPARTMENT
OF EDUCATION, AND FOR OTHER PURPOSES

AN ACT DEFINING THE CRIME OF MONEY LAUNDERING,
PROVIDING PENALTIES THEREFOR AND FOR OTHER
PURPOSES

A N A C T P R O V I D I N G F O R T H E M O D E R N I Z AT I O N ,
STANDARIZATION AND REGULATION OF THE PROCUREMENT
ACTIVITIES OF THE GOVERNMENT AND FOR OTHER
PURPOSES

AN ACT PROVIDING FOR A SYSTEM OF OVERSEAS ABSENTEE
VOTING BY QUALIFIED CITIZENS OF THE PHILIPPINES
ABROAD, APPROPRIATING FUNDS THEREFOR, AND FOR
OTHER PURPOSES
xii
REPUBLIC ACTS PAGE

AN ACT AMENDING REPUBLIC ACT NO. 9160, OTHERWISE
KNOWN AS THE “ANTI-MONEY LAUNDERING ACT OF 2001”

AN ACT DEFINING VIOLENCE AGAINST WOMEN AND THEIR
CHILDREN, PROVIDING FOR PROTECTIVE MEASURES FOR
VICTIMS, PRESCRIBING PENALTIES THEREFORE, AND FOR
OTHER PURPOSES

AN ACT INCREASING THE PENALTIES FOR ILLEGAL NUMBERS
GAMES, AMENDING CERTAIN PROVISIONS OF PRESIDENTIAL
DECREE NO. 1602, AND FOR OTHER PURPOSES

AN ACT TO IMPROVE THE REVENUE COLLECTION
PERFORMANCE OF THE BUREAU OF INTERNAL REVENUE
(BIR) AND THE BUREAU OF CUSTOMS (BOC) THROUGH THE
CREATION OF A REWARDS AND INCENTIVES FUND AND OF
A REVENUE PERFORMANCE EVALUATION BOARD AND FOR
OTHER PURPOSES

AN ACT AMENDING REPUBLIC ACT NO. 7227, AS AMENDED,
OTHERWISE KNOWN AS THE BASES CONVERSION AND
DEVELOPMENT ACT OF 1992, AND FOR OTHER PURPOSES

AN ACT ENHANCING REVENUE ADMINISTRATION AND
COLLECTION BY GRANTING AN AMNESTY ON ALL UNPAID
INTERNAL REVENUE TAXES IMPOSED BY THE NATIONAL
GOVERNMENT FOR TAXABLE YEAR 2005 AND PRIOR
YEARS
xiii
REPUBLIC ACTS PAGE

AN ACT TO REGULATE THE PRACTICE OF DENTISTRY,
DENTAL HYGIENE AND DENTAL TECHNOLOGY IN THE
PHILIPPINES, REPEALING FOR THE PURPOSE REPUBLIC ACT
NO. 4419, OTHERWISE KNOWN AS “AN ACT TO REGULATE
THE PRACTICE OF DENTISTRY IN THE PHILIPPINES, AND FOR
OTHER PURPOSES”, AND REPUBLIC ACT NO. 768, OTHERWISE
KNOWN AS “AN ACT TO REGULATE THE PRACTICE OF
DENTAL HYGIENISTS IN THE PHILIPPINES, AND FOR OTHER
PURPOSES”, AND APPROPRIATING FUNDS THEREFOR

AN ACT TO IMPROVE EFFICIENCY IN THE DELIVERY OF
GOVERNMENT SERVICE TO THE PUBLIC BY REDUCING
BUREAUCRATIC RED TAPE, PREVENTING GRAFT AND
CORRUPTION, AND PROVIDING PENALTIES THEREFOR
IMPLEMENTING RULES ON RA NO. 9485 325

REPUBLIC ACT NO. 9485 IMPLEMENTING RULES AND
REGULATION (RESOLUTION NO. 081471)

AN ACT ESTABLISHING A COMPREHENSIVE FIRE CODE
OF THE PHILIPPINES, REPEALING PRESIDENTIAL DECREE
NO. 1185 AND FOR OTHER PURPOSES

KNOWN AS THE MIGRANT WORKERS AND OVERSEAS
FILIPINOS ACT OF 1995, AS AMENDED, FURTHER IMPROVING
THE STANDARD OF PROTECTION AND PROMOTION OF
THE WELFARE OF MIGRANT WORKERS, THEIR FAMILIES
AND OVERSEAS FILIPINOS IN DISTRESS, AND FOR OTHER
PURPOSES
xiv
REPUBLIC ACTS PAGE

AN ACT ESTABLISHING THE TUBBATAHA REEFS NATURAL
PARK IN THE PROVINCE OF PALAWAN AS A PROTECTED
AREA UNDER THE NIPAS ACT (R.A. 7586) AND THE STRATEGIC
ENVIRONMENTAL PLAN (SEP) FOR PALAWAN ACT (R.A.
7611), PROVIDING FOR ITS MANAGEMENT AND FOR OTHER
PURPOSES

AN ACT PROVIDING FOR THE DEVELOPMENT AND PROMOTION
OF ORGANIC AGRICULTURE IN THE PHILIPPINES AND FOR
OTHER PURPOSES

AN ACT ESTABLISHING THE PHILIPPINE TAX ACADEMY,
DEFINING ITS POWERS AND FUNCTIONS

AN ACT TO PROMOTE FINANCIAL VIABILITY AND FISCAL
DISCIPLINE IN GOVERNMENT-OWNED OR -CONTROLLED
CORPORATIONS AND TO STRENGTHEN THE ROLE OF THE
STATE IN ITS GOVERNANCE AND MANAGEMENT TO MAKE
THEM MORE RESPONSIVE TO THE NEEDS OF PUBLIC
INTEREST AND FOR OTHER PURPOSES

AN ACT REQUIRING ALL CONCERNED GOVERNMENT
AGENCIES TO ENSURE THE EARLY RELEASE OF THE
RETIREMENT PAY, PENSIONS, GRATUITIES AND OTHER
BENEFITS OF RETIRING GOVERNMENT EMPLOYEES

AN ACT TO FURTHER STRENGTHEN THE ANTI-MONEY
LAUNDERING LAW, AMENDING FOR THE PURPOSE SECTIONS
10 AND 11 OF REPUBLIC ACT NO. 9160, OTHERWISE KNOWN AS
THE “ANTI-MONEY LAUNDERING ACT OF 2001″, AS AMENDED,
xv
Part II
EXECUTIVE ISSUANCES
PRESIDENTIAL DECREES PAGE
PRESIDENTIAL DECREE NO. 6 367

AMENDING CERTAIN RULES ON DISCIPLINE OF GOVERNMENT
OFFICIALS AND EMPLOYEES

CREATION OF POLCOM ADJUDICATION BOARDS AMENDING
THE POLICE ACT OF 1966

REQUIRING ALL PERSONS, NATURAL OR JURIDICAL, OWNING
OR ADMINISTERING REAL PROPERTY, INCLUDING THE
IMPROVEMENTS THEREON, TO FILE SWORN STATEMENT OF
THE TRUE VALUE OF SUCH PROPERTY

MAKING IT PUNISHABLE FOR PUBLIC OFFICIALS AND
EMPLOYEES TO RECEIVE, AND FOR PRIVATE PERSONS TO
GIVE, GIFTS ON ANY OCCASION, INCLUDING CHRISTMAS

REQUIRING ALL PERSONS, NATURAL OR JURIDICAL, OWNING
OR ADMINISTERING REAL PROPERTY, INCLUDING THE
IMPROVEMENTS THEREON, TO FILE SWORN STATEMENT OF
THE TRUE VALUE OF SUCH PROPERTY

PRESCRIBING A HEAVY PENALTY FOR THE THEFT OF
ANY MATERIAL, SPARE PART, PRODUCT OR ARTICLE BY
EMPLOYEES AND LABORERS
xvi
EXECUTIVE ISSUANCES

GRANTING AMNESTY TO PERSONS WHO ARE REQUIRED BY
LAW TO FILE INCOME TAX RETURNS BUT HAD FAILED TO
DO SO, SUBJECT TO CERTAIN CONDITIONS

ENLARGING THE COVERAGE OF THE TAX AMNESTY ON
PREVIOUSLY UNTAXED INCOME AND/OR WEALTH, SUBJECT
TO CERTAIN CONDITIONS

REQUIRING THE SUBMISSION OF STATEMENT OF ASSETS,
LIABILITIES AND NET WORTH

AMENDING CERTAIN SECTIONS OF PRESIDENTIAL DECREE
NO. 379 BY ENLARGING THE COVERAGE OF THE SAME

FURTHER AMENDING PARAGRAPH 7 OF PRESIDENTIAL
DECREE NO. 76 DATED DECEMBER 6, 1972 REQUIRING
ALL PERSONS, NATURAL OR JURIDICAL OWNING OR
ADMINISTERING REAL PROPERTY, INCLUDING THE
IMPROVEMENTS THEREON, TO FILE SWORN STATEMENT
OF THE TRUE VALUE OF SUCH PROPERTY, AS AMENDED BY
PRESIDENTIAL DECREE NO. 261 DATED AUGUST 2, 1973, AND
FURTHER AMENDED BY PRESIDENTIAL DECREE NO. 304
DATED OCTOBER 2, 1973

PROVIDING FOR AN IMPROVED SYSTEM OF ACQUISITION,
UTILIZATION, CARE, CUSTODY AND DISPOSAL OF SUPPLIES
IN THE LOCAL GOVERNMENTS, AMENDING FOR THE PURPOSE
SECTION THREE OF REPUBLIC ACT NUMBERED TWENTY-TWO
HUNDRED SIXTY-FOUR, OTHERWISE KNOWN AS “THE LOCAL
AUTONOMY ACT OF 1959”, AND OTHER RELATED LAWS
xvii

AMENDING PRESIDENTIAL DECREE NO. 379 ENTITLED
“REQUIRING THE SUBMISSION OF ASSETS, LIABILITIES AND
NET WORTH”

EXTENDING THE PERIOD OF FILING OF THE STATEMENT
OF ASSETS, LIABILITIES AND NET WORTH AND ALLOWING
TAXPAYERS WHO HAVE NOT AVAILED OF PRESIDENTIAL
DECREE NO. 23, AS AMENDED, TO AVAIL OF PRESIDENTIAL
DECREE NO. 370, AS AMENDED

GRANTING AN ULTIMATE AMNESTY ON UNTAXED INCOME
AND/OR WEALTH EARNED OR ACQUIRED IN 1973 AND
PRIOR YEARS AND IMMUNITY FROM INVESTIGATION
OF THE STATEMENT OF ASSETS, LIABILITIES, AND NET
WORTH REQUIRED BY PRESIDENTIAL DECREE NO. 379, AS
AMENDED

AMENDING SECTION 7 OF REPUBLIC ACT NO. 3019, AS
AMENDED, OTHERWISE KNOWN AS THE ANTI-GRAFT AND
CORRUPT PRACTICES ACT.

GRANTING IMMUNITY FROM PROSECUTION TO GIVERS OF
BRIBES AND OTHER GIFTS AND TO THEIR ACCOMPLICES
IN BRIBERY AND OTHER GRAFT CASES AGAINST PUBLIC
OFFICERS

PROVIDING FOR THE ORGANIZATION OF THE CIVIL SERVICE
COMMISSION IN ACCORDANCE WITH PROVISIONS OF THE
CONSTITUTION, PRESCRIBIN ITS POWERS AND FUNCTIONS
xviii
EXECUTIVE ISSUANCES
PRESIDENTIAL DECREE NO 1079 441

REVISING AND CONSOLIDATING ALL LAWS AND DECREES
REGULATING PUBLICATION OF JUDICIAL NOTICES,
ADVERTISEMENTS FOR PUBLIC BIDDINGS, NOTICES OF
AUCTION SALES AND OTHER SIMILAR NOTICES

AUTHORIZING THE REVERSION TO THE GENERAL FUND OF
DORMANT OR UNNECESSARY SPECIAL AND FIDUCIARY
FUNDS

CREATING THE MERIT SYSTEMS BOARD

ORDAINING AND INSTITUTING A GOVERNMENT AUDITING
CODE OF THE PHILIPPINES

C R E AT I N G A S P E C I A L C O U RT TO B E K N O W N A S
“SANDIGANBAYAN” AND FOR OTHER PURPOSES

CREATING THE OFFICE OF THE OMBUDSMAN, TO BE KNOWN
AS TANODBAYANPRESIDENTIAL

REVISING PRESIDENTIAL DECREE NO. 1486 CREATING A
SPECIAL COURT TO BE KNOWN AS “SANDIGANBAYAN” AND
FOR OTHER PURPOSES

REVISING PRESIDENTIAL DECREE NO. 1487 CREATING
THE OFFICE OF THE OMBUDSMAN, TO BE KNOWN AS
TANODBAYAN
xix

AMENDING PRESIDENTIAL DECREE NO. 1276, ENTITLED
“AUTHORIZING THE CENTRAL BANK OF THE PHILIPPINES TO
CONTINUE THE IMPLEMENTATION OF ITS REWARD SYSTEM
FOR INFORMATION LEADING TO THE CONFISCATION OF GOLD
AND FOREIGN EXCHANGE”

AMENDING PRESIDENTIAL DECREE NO. 1486, CREATING A
SPECIAL COURT TO BE KNOWN AS “SANDIGANBAYAN”, AS
REVISED BY PRESIDENTIAL DECREE NO. 1606

CONDONING PENALTIES FOR CERTAIN VIOLATIONS OF
THE INCOME TAX LAW UPON VOLUNTARY DISCLOSURE
OF UNDECLARED INCOME FOR INCOME TAX PURPOSES
AND REQUIRING PERIODIC SUBMISSION OF NET WORTH
STATEMENT

PROVIDING FOR THE TRIAL BY COURTS-MARTIAL OF
MEMBERS OF THE ARMED FORCES CHARGED WITH OFFENSES
RELATED TO THE PERFORMANCES OF THEIR DUTIES
PRESIDENTIAL DECREE NO. 1822-A 512

AMENDING SECTION 1, PRESIDENTIAL DECREE NO. 1822,
PROVIDING FOR TRIAL BY COURTS-MARTIAL OF MEMBERS
OF THE ARMED FORCES CHARGED WITH OFFENSES RELATED
TO THE PERFORMANCE OF THEIR DUTIES

GRANTING A TAX AMNESTY ON UNTAXED INCOME AND/
OR WEALTH EARNED OR ACQUIRED DURING THE TAXABLE
YEARS 1974 TO 1980 AND REQUIRING THE FILING OF THE
STATEMENT OF ASSETS, LIABILITIES, AND NET WORTH
xx
EXECUTIVE ISSUANCES

MEMBERS OF THE INTEGRATED NATIONAL POLICE AND
FURTHER DEFINING THE JURISDICTION OF COURTS-
MARTIAL OVER MEMBERS OF THE ARMED FORCES OF THE
PHILIPPINES

AMENDING THE PERTINENT PROVISIONS OF PRESIDENTIAL
DECREE NO. 1606 AND BATAS PAMBANSA BLG. 129 RELATIVE
TO THE JURISDICTION OF THE SANDIGANBAYAN AND FOR
OTHER PURPOSES

DECREE NO. 1606 AND BATAS PAMBANSA BLG. 129 RELATIVE
TO THE JURISDICTION OF THE SANDIGANBAYAN AND FOR
OTHER PURPOSES
EXECUTIVE ORDERS PAGE
EXECUTIVE ORDER NO. 21 s. 1903 532

DIRECTING HEADS OF BUREAUS AND OFFICES TO CAUSE TO
BE COUNTED AND VERIFIED THE CASH WITH WHICH EACH
CASHIER OR DISBURSING OFFICER UNDER HIS JURISDICTION
IS CHARGEABLE, AT LEAST ONCE EACH MONTH

DEFINING THE AUTHORITY OF THE OFFICER IN CONTROL
OF AN APPROPRIATION AND THE RESPONSIBILITY OF THE
DISBURSING OFFICER

BANNING THE DISCUSSION OF TRANSFER OF EMPLOYEES
FROM ONE OFFICE TO ANOTHER
xxi

PROVIDING FOR THE EXAMINATION OF THE ACCOUNTS OF
THE CLERK OF THE COURT OF FIRST INSTANCE

PROVIDING FOR PROCEDURE IN THE INSPECTION OF
GOVERNMENT PROPERTY
EXECUTIVE ORDER NO. 33. s. 1906 539

PROVIDING FOR GENERAL PRINCIPLES GOVERNING ANNUAL
REPORTS OF BUREAUS AND OFFICES OF DEPARTMENTS

POLICY ON THE PROVISION OF CASH ADVANCES

AUTHORIZING MUNICIPAL AND PROVINCIAL OFFICIALS
TO INVESTIGATE ISSUES REGARDING VOLUNTARY
CONTRIBUTIONS

AMENDING EO 13, S. 1907 ON THE ISSUE OF VOLUNTARY
CONTRIBUTIONS.

POLICY ON ENGAGING IN PRIVATE BUSINESS BY GOVERNMENT
EMPLOYEES.

NOTIFICATION TO AUDITOR OF CHANGES AFFECTING PAY
STATUS OF MUNICIPAL OFFICIALS AND EMPLOYEES.

PROVIDING FOR THE OBSERVANCE OF REGULAR WORK
HOURS AND PENALTIES FOR FALSIFICATION OF TIME
RECORDS
xxii
EXECUTIVE ISSUANCES

ORDERING ALL OFFICIALS AND EMPLOYEES TO REFRAIN
FROM TAKING PROFIT FROM THE SALE OF CURRENT UNUSED
POSTAGE STAMPS AND PROVIDING PENALTIES FOR ITS
VIOLATION

PROVIDING FOR THE REVERSION TO THE TREASURY OF
UNEXPENDED BALANCES OF APPROPRIATION

CIVIL SERVICE RULES AND REGULATIONS ON PROHIBITIONS
AND PENALTIES

SUBMISSION OF FINANCIAL REPORTS TO DETERMINE ACTUAL
EXPENDITURES.

PROVIDING BUDGETARY PROCEDURE FOR REIMBURSABLE
SUPPLY ACCOUNT FOR BUREAUS

BANNING PUBLIC OFFICER, PERSONS ELECTED OR APPOINTED
FROM ACCEPTING, RECEIVING, CONSENTING TO RECEIVE
FREE PASS, FREE TRANSPORTATION, FRANKING PRIVILEGE,
FOR HIMSELF OR FOR ANOTHER

EXEMPTING THE DIRECTOR OF HEALTH FROM RISK OF CREDIT
TRANSACTIONS BETWEEN THE BUREAUS OR OFFICES OF THE
INSULAR GOVERNMENT AND GOVERNMENT EMPLOYEES
WITH RESPECT TO THE SUBSISTENCE AND TREATMENT OF
PATIENTS IN HOSPITALS UNDER HIS JURISDICTION
xxiii

POLICY ON CREDIT TRANSACTIONS BETWEEN BUREAUS
OR OFFICES OF GOVERNMENT AND GOVERNMENT
EMPLOYEES.

OFFICIAL TRANSPORTATION OF EVERY NATURE, INCLUDING
AUTOMOBILES, MUST BE RESTRICTED TO USE FOR OFFICIAL
BUSINESS.

PROCEDURE FOR THE CLOSING OF BOOKS OF ACCOUNTS BY
THE INSULAR AUDITOR

CAUTIONING GOVERNMENT EMPLOYYES TO TREAT
DOCTORS, NURSES, AND OFFICIALS OF THE GOVERNMENT
HOSPITALS WITH CIVILITY AND RESPECT.

POLICY ON CONFLICT OF INTEREST

PROHIBITING PUBLIC OFFICERS AND EMPLOYEES FROM
TAKING/ACCEPTING VOLUNTARY CONRIBUTIONS FROM THE
PUBLIC TO DEFRAY EXPENSES FOR ENTERTAINMENT AND
RECEPTION OF PUBLIC OFFICIALS ON PROVINCIAL VISITS

FORBIDDIING THE SOLICITATION OF QUOTATIONS FOR
GOVERNMENT EQUIPMENT, MATERIALS AND SUPPLIES
EXCEPT THROUGH THE PURCHASING AGENT

PROVIDING THAT PARTICIPATION, BY THE PRESIDENT AND
MEMBERS OF THE PHILIPPINE BOARD OF THE PANAMA-
xxiv
EXECUTIVE ISSUANCES
PACIFIC INTERNATIONAL EXPOSITION, EITHER DIRECT OR

INDIRECT, BY MEANS OF THE SALE OF ARTICLES PRIVATELY
OWNED IN CONNECTION WITH ANY EXHIBIT OR EXPOSITION
TO DERIVE THEREFROM A PERSONAL PROFIT OR GAIN WILL
BE CONSIDERED SUFFICIENT CAUSE FOR REMOVAL FROM
THE SERVICE.

GUIDELINES IN THE USE OF OFFICIAL TRANSPORTATION

AMENDMENT OF CIVIL SERVICE RULES XIII – PROHIBITION
AND PENALTIES
EXECUTIVE ORDER NO. 7. s. 1922 577

CALLING THE ATTENTION OF PROVINCIAL TREASURES AND
OTHERS CHARGED WITH THE COLLECTION OF INTERNAL
REVENUE TO THE NECESSITY OF MORE THOROUGH AND
PROMPT PERFORMANCE OF THEIR DUTIES.

IN ORDER TO INSURE FREE, HONEST AND ORDERLY
ELECTIONS, AND TO AVOID EVEN THE APPEARANCE OF
INTERFERING WITH THE LAWFUL EXERCISE OF THE RIGHT
OF SUFFRAGE, THE ATTENTION OF PROVINCIAL GOVERNORS
IS CALLED TO THE NECESSITY OF EXERCISING THE UTMOST
CAUTION IN SUSPENDING MUNICIPAL OFFICIALS.

BANNING THE LOBBYING FOR INCREASE IN SALARY BY
GOVERNMENT EMPLOYEES

EFFECTING ECONOMIES IN THE USE OF TELEGRAMS
xxv

DISCOURAGING VOLUNTARY CONTRIBUTIONS TO PAY FOR
ENTERTAINMENT OF VISITING OFFICIALS

DISALLOWING THE PURCHASE OF GOODS FOR PERSONAL
USE BY GOVERNMENT OFFICERS AND EMPLOYEES THROUGH
GOVERNMENT SUPPLY OFFICERS AND PROVIDING FOR
DRASTIC ADMINISTRATIVE ACTION

ELIMINATION OF LAVISH ENTERTAINMENT FOR VISITING
PUBLIC OFFICIALS IN ALL RECEPTIONS AND OTHER PUBLIC
MEETINGS

REGULATIONS GOVERNING SENIORITY, PROMOTION, AND
SEPARATION FROM THE SERVICE, OF OFFICERS OF THE
RESERVE FORCE, PHILIPPIN ARMY

APPOINTMENT AND SEPARATION OF SECRET AGENTS OR
DETECTIVES AND CONFIDENTIAL EMPLOYEES

PRESCRIBING UNIFORM PROCEDURE TO BE FOLLOWED IN
THE INVESTIGATION OF ADMINISTRATIVE CASES

TRANSFERRING FROM THE GENERAL AUDITING OFFICE THE
FUNCTION OF PREPARING AND KEEPING THE ACCOUNTS
OF THE VARIOUS DEPARTMENTS, BUREAUS, OFFICES
AND DEPENDENCIES OF THE NATIONAL GOVERNMENT,
INCLUDING THE SUPREME COURT, THE COURT OF APPEALS,
THE PEOPLE’S COURT, THE COMMISSION ON ELECTIONS
xxvi
EXECUTIVE ISSUANCES
AND THE UNIVERSITY OF THE PHILIPPINES, THE FUNCTION

OF ACTING UPON REQUISITIONS OR ORDERS FOR SUPPLIES,
MATERIALS, FURNITURE AND EQUIPMENT, AND THE
FUNCTION OF OPERATING THE SALVAGE WAREHOUSE

CREATING AN INTEGRITY BOARD TO RECEIVE AND PASS UPON
ALL COMPLAINTS AGAINST THE CONDUCT OF ANY OFFICER
OF THE GOVERNMENT, OR FOR GRAFT, CORRUPTION,
DERELICTION OF DUTY OR ANY OTHER IRREGULARITY IN
OFFICE; TO RECOMMEND TO THE PRESIDENT THE COURSE OF
ACTION TO BE TAKEN IN EACH CASE AND TO INVESTIGATE
SPECIFIC CASES THEREOF

ORGANIZING THE PHILIPPINE INFORMATION SERVICE

UNIFORM CHARTER FOR GOVERNMENT CORPORATIONS

CREATING THE PRESIDENTIAL COMPLAINT AND ACTION
COMMISSION UNDER THE OFFICE OF THE PRESIDENT

ABOLISHING THE INTEGRITY BOARD

CREATING THE PRESIDENTIAL COMPLAINTS AND ACTION
COMMITTEE UNDER THE OFFICE OF THE PRESIDENT

AMENDING PARAGRAPH FIVE OF EXECUTIVE ORDER NO.
111, DATED AUGUST 30, 1937, ENTITLED “PROHIBITING AND
RESTRICTING THE PRACTICE OF NEPOTISM”
xxvii

PROHIBITING THE USE OF PUBLIC FUNDS FOR THE
ENTERTAINMENT OF VISITING OFFICIALS AND THE
COLLECTION OF CONTRIBUTIONS FROM GOVERNMENT
OFFICIALS AND EMPLOYEES FOR THE SAME PURPOSE

AMENDING SECTION 2 OF EXECUTIVE ORDER NO. 111, DATED
AUGUST 30, 1937, ENTITLED “ PROHIBITING AND RESTRICTING
THE PRACTICE OF NEPOTISM”

FURTHER AMENDING PARAGRAPH FIVE OF EXECUTIVE
ORDER NO. 111DATED AUGUST 30, 1937, ENTITLED
“PROHIBITING AND RESTRICTING THE PRACTICE OF
NEPOTISM”

FURTHER AMENDING PARAGRAPH FIVE OF EXECUTIVE ORDER
NO. 111 DATED AUGUST 30, 1937, ENTITLED “PROHIBITING
AND RESTRICTING THE PRACTICE OF NEPOTISM”

CREATING A PRESIDENTIAL ANTI-GRAFT COMMITTEE TO
ENFORCE AND IMPLEMENT REPUBLIC ACT NO. 1379

ABOLISHING THE PRESIDENTIAL ANTI-GRAFT COMMITTEE
TO ENFORCE AND IMPLEMENT REPUBLIC ACT NO. 1379,
CREATED BY EXECUTIVE ORDER NO. 378, DATED FEBRUARY
18, 1960

CREATING A PRESIDENTIAL ANTI-GRAFT COMMITTEE
xxviii
EXECUTIVE ISSUANCES

INSTITUTING THE PRESIDENTIAL CITATION FOR HONESTY
AND INTEGRITY

ENJOINING ALL PUBLIC OFFICERS AND EMPLOYEES OF THE
GOVERNMENT AND PRIVATE CITIZENS TO COOPERATE MORE
FULLY IN THE INTENSIFIED ANTI-SMUGGLING CAMPAIGN

REQUIRING ALL OFFICERS AND EMPLOYEES OF THE
GOVERNMENT VISITING BUSINESS ESTABLISHMENTS FOR
PURPOSES OF EXAMINING BOOKS OF ACCOUNTS, RECORDS,
OR OTHERWISE INSPECTING THE PREMISES THEREOF IN
CONNECTION WITH THE PERFORMANCE OF THEIR DUTIES
TO SIGN A REGISTRY BOOK

OUTLINING THE PROCEDURE BY WHICH COMPLAINANTS
CHARGING GOVERNMENT OFFICIALS AND EMPLOYEES WITH
COMMISSION OF IRREGULARITIES SHOULD BE GUIDED

REQUIRING THE FILING OF CRIMINAL COMPLAINTS AGAINST
GOVERNMENT PERSONNEL CHARGED ADMINISTRATIVELY,
WHERE THE ADMINISTRATIVE CASE INVOLVES DISHONESTY,
CORRUPTION OR MORAL TURPITUDE

CREATING THE PRESIDENTIAL COMMISSION ON GOOD
GOVERNMENT

REGARDING THE FUNDS, MONEYS, ASSETS, AND PROPERTIES
ILLEGALLY ACQUIRED OR MISAPPROPRIATED BY FORMER
PRESIDENT FERDINAND MARCOS, MRS. IMELDA ROMUALDEZ
MARCOS, THEIR CLOSE RELATIVES, SUBORDINATES,
BUSINESS ASSOCIATES, DUMMIES, AGENTS, OR NOMINEES.
xxix

DEFINING THE JURISDICTION OVER CASES INVOLVING THE
ILL-GOTTEN WEALTH OF FORMER PRESIDENT FERDINAND
E. MARCOS, MRS. IMELDA R. MARCOS, MEMBERS OF THEIR
IMMEDIATE FAMILY, CLOSE RELATIVES, SUBORDINATES,
CLOSE AND/OR BUSINESS ASSOCIATES, DUMMIES, AGENTS
AND NOMINEES

ENHANCING THE INDEPENDENCE OF THE COMMISSION ON
AUDIT

CREATING THE PHILIPPINE INFORMATION AGENCY

FURTHER AMENDING PRESIDENTIAL DECREE NO. 1486, AS
AMENDED BY PRESIDENTIAL DECREE NO. 1606 CREATING A
SPECIAL COURT TO BE KNOWN AS “SANDIGANBAYAN”

REPEALING PRESIDENTIAL DECREES NOS. 1791 AND 1774

DECLARING THE EFFECTIVITY OF THE CREATION OF THE
OFFICE OF THE OMBUDSMAN AS PROVIDED FOR IN THE 19878
CONSTITUTION

INSTITUTING THE “ADMINISTRATIVE CODE OF 1987”

OFFIE IN THE OFFICE OF THE PRESIDENT, DEFINING IT
POWERS AND FUNCTIONS, AND FOR OTHER PURPOSES
xxx
EXECUTIVE ISSUANCES

RENAMING THE PRESIDENTIAL COMPLAINTS AND ACTION
OFFICE AS PRESIDENTIAL ACTION CENTER

PRESCRIBING PROCEDURES AND SANCTIONS TO ENSURE
SPEEDY DISPOSITION OF ADMINISTRATIVE CASES

DIRECTING THE IMPLEMENTATION OF A POLICY OF
ACCESSIBILITY AND TRANSPARENCY IN GOVERNMENT

CREATING A PRESIDENTIAL COMMISSION TO INVESTIGATE
ADMINISTRATIVE COMPLAINTS INVOLVING GRAFT AND
CORRUPTION
EXECUTIVE ORDER NO. 151-A s. 1995 692

AMENDING EXECUTIVE ORDER NO. 151 DATED 11 JANUARY
1994 TITLED “CREATING A PRESIDENTIAL COMMISSION TO
INVESTIGATE ADMINISTRATIVE COMPLAINTS INVOLVING
GRAFT AND CORRUPTION

I N S T I T U T I O N A L I Z AT I O N O F T H E D O C T R I N E O F
“COMMAND RESPONSIBILITY” IN ALL GOVERNMENT
OFFICES, PARTICULARLY AT ALL LEVELS OF COMMAND
IN THE PHILIPPINE NATIONAL POLICE AND OTHER LAW
ENFORCEMENT AGENCIES

CREATING A SPECIAL TASK FORCE TO REVIEW, INVESTIGATE,
AND GATHER EVIDENCE NECESSARY TO SUCCESSFULLY
PROSECUTE IRREGULARITIES COMMITTED AT THE BUREAU
OF INTERNAL REVENUE, BUREAU OF CUSTOMS AND OTHER
GOVERNMENT OFFICES OR AGENCIES UNDER OR ATTACHED
TO THE DEPARTMENT OF FINANCE
xxxi

CREATING THE NATIONAL ANTI-CORRUPTION COMMISSION
AND ABOLISHING THE PRESIDENTIAL COMMISSION AGAINST
GRAFT AND CORRUPTION CREATED UNDER EXECUTIVE
ORDER 151, S. 1994, AS AMENDED

PRESCRIBING A CODE OF CONDUCT FOR RELATIVES AND
CLOSE PERSONAL RELATIONS OF THE PRESIDENT, VICE-
PRESIDENT AND MEMBERS OF THE CABINET

CREATING THE PRESIDENTIAL ANTI-GRAFT COMMISSION
AND PROVIDING FOR ITS POWERS, DUTIES, AND FUNCTIONS

ESTABLISHING THE GOVERNANCE ADVISORY COUNCIL

STREAMING THE RULES AND PROCEDURES ON THE REVIEW
AND APPROVAL OF ALL CONTRACTS OF DEPARTMENTS,
BUREAUS, OFFICES AND AGENCIES OF THE GOVERNMENT,
INCLUDING GOVERNMENT-OWNED OR CONTROLLED
CORPORATIONS AND THEIR SUBSIDIARIES

DIRECTING THE ADOPTION OF THE CODE OF GOOD
GOVERNANCE FOR THE PROFESSIONS IN THE PHILIPPINES

AMENDING EXECUTIVE ORDER NO. 12 DATED 16 APRIL 2001
ENTITLED “CREATING THE PRESIDENTIAL ANTI-GRAFT
COMMISSION AND PROVIDING FOR ITS POWERS, DUTIES,
AND FUNCTIONS AND FOR OTHER PURPOSES”
xxxii
EXECUTIVE ISSUANCES

DESIGNATING THE CHIEF PRESIDENTIAL LEGAL COUNSEL AS
ANTI- CORRUPTIONG SWIFT ACTION TEAM (SWAT) LEADER

ENSURING OBSERVANCE OF THE PRINCIPLE OF SEPARATION
OF POWERS, ADHERENCE TO THE RULE ON EXECUTIVE
PRIVILEGE AND RESPECT FOR THE RIGHTS OF PUBLIC
OFFICIALS APPEARING IN LEGISLATIVE INQUIRIES IN AID OF
LEGISLATION UNER THE CONSTITUTION, AND FOR OTHER
PURPOSES

STRENGTHENING THE PRESIDENTIAL ANTI-GRAFT
COMMISSION BY AMENDING EXECUTIVE ORDER 12 SERIES
OF 2001, AS AMENDED BY EXECUTIVE ORDER NO. 327 SERIES
OF 2004 AND REVOKING MEMORANDUM ORDER NO. 86 SERIES
OF 2003

AMENDING EXECUTIVE ORDER NO. 531, SERIES OF 2006, TO
FURTHER STRENGTHEN THE PRESIDENTIAL ANTI-GRAFT
COMMISSION
EXECUTIVE ORDER NO. 531-B s. 2006 759

FURTHER AMENDING EXECUTIVE ORDER NO. 531, SERIES
OF 2006, TO CLARIFY THE INVESTIGATIVE JURISDICTION OF
THE PRESIDENTIAL ANTI-GRAFT COMMISSION

ESTABLISHING AN ANTI-RED TAPE TASK FORCE

ENHANCING TRANSPARENCY MEASURES UNDER REPUBLIC
ACT NO. 9184 AND CREATING THE PROCUREMENT
TRANSPARENCY BOARD
xxxiii

AMENDING EXECUTIVE ORDER NO. 662, SERIES OF 2007
ENTITLED “ENHANCING TRANSPARENCY MEASURES UNDER
REPUBLIC ACT NO. 9184 AND CREATING THE PROCUREMENT
TRANSPARENCY GROUP”
EXECUTIVE ORDER NO. 662-B s. 2008 772

AMENDING SECTION SEVEN OF EXECUTIVE ORDER NO. 662
(SERIES OF 2007) ENTITLED ENHANCING TRANSPARENCY
MEASURES UNDER REPUBLIC ACT NO. 9184 AND CREATING
THE PROCUREMENT TRANSPARENCY BOARD

AMENDING EXECUTIVE ORDER NO. 531, SERIES OF 2006 TO
SPEED UP THE PROCESSING OF CASES OF THE PRESIDENTIAL
ANTI-GRAFT COMMISSION

TO DELINEATE THE ADJUDICATORY POWERS OF THE
‘PRESIDENTIAL ANTI-GRAFT COMMISSION’

DESIGNATING THE DEPUTY EXECUTIVE SECRETARY FOR
LEGAL AFFAIRS (DESLA) AS ADDITIONAL MEMBER OF THE
PRESIDENTIAL ANTI-GRAFT COMMISSION (PAGC) CREATED
UNDER EXECUTIVE ORDER NO. 12, SERIES OF 2001, AS
AMENDED

CREATING THE PHILIPPINE TRUTH COMMISSION OF 2010

RECALLING, WITHDRAWING, AND REVOKING APPOINTMENTS
ISSUED BY THE PREVIOUS ADMINISTRATION IN VIOLATION OF
THE CONSTITUTIONAL BAN ON MIDNIGHT APPOINTMENTS,
xxxiv
EXECUTIVE ISSUANCES
EXECUTIVE ORDER PAGE

ABOLISHING THE PRESIDENTIAL ANTI-GRAFT COMMISSION
AND TRANSFERRING ITS INVESTIGATIVE, ADJUDICATORY
AND RECOMMENDATORY FUNCTIONS TO THE OFFICE OF
THE DEPUTY EXECUTIVE SECRETARY FOR LEGAL AFFAIRS,
OFFICE OF THE PRESIDENT
ADMINISTRATIVE ORDERS PAGE
ADMINISTRATIVE ORDER NO. 07, s. 1990 799

RULES OF PROCEDURE OF THE OFFICE OF THE
OMBUDSMAN
ADMINISTRATIVE ORDER NO. 10 (As Amended), s. 2001 816

GUIDELINES ON THE INSTALLATION OF RESIDENT
OMBUDSMAN (NON-ORGANIC)
ADMINISTRATIVE ORDER NO. 25 s. 1987 820

CREATING A PRESIDENTIAL COMMITTEE ON PUBLIC ETHICS
AND ACCOUNTABILITY AND FOR OTHER PURPOSES
CODES OF JUDICIAL CONDUCT PAGE
CODE OF JUDICIAL CONDUCT, 20 October 1989 823
THE NEW CODE OF JUDICIAL CONDUCT FOR THE 829

PHILIPPINE JUDICIARY, 3 May 2004
CODE OF CONDUCT OF COURT PERSONNEL, 3 May 2004 840
APPENDIX: List of Law Amendments 849
INDEX 854
xxxv
Part I
Legislative Measures
2
LEGISLATIVE
LEGISLATIVE
MEASURESMEASURES
– THE CONSTITUTION
– PUBLIC ACTS
- ARTICLE XI
THE CONSTITUTION OF
THE REPUBLIC OF THE PHILIPPINES
ARTICLE XI
ACCOUNTABILITY OF PUBLIC OFFICERS
SECTION 1. Public office is a public trust. Public officers

and employees must at all times be accountable to the people, serve
them with utmost responsibility, integrity, loyalty, and efficiency,
act with patriotism and justice, and lead modest lives.
SEC. 2. The President, Vice-President, the Members of the

Supreme Court, the Members of the Constitutional Commissions,
and the Ombudsman may be removed from office, on impeachment
for, and conviction of, culpable violation of the Constitution, treason,
bribery, graft and corruption, other high crimes, or betrayal of public
trust. All other public officers and employees may be removed from
office as provided by law, but not by impeachment.
SEC. 3. (1) The House of Representatives shall have the

exclusive power to initiate all cases of impeachment.
(2) A verified complaint for impeachment may be filed by

any Member of the House of Representatives or by any citizen upon
a resolution of endorsement by any Member thereof, which shall
be included in the Order of Business within ten session days, and
referred to the proper Committee within three session days thereafter.
The Committee, after hearing, and by a majority vote of all its
Members, shall submit its report to the House within sixty session
days from such referral, together with the corresponding resolution.
The resolution shall be calendared for consideration by the House
within ten session days from receipt thereof.
(3) A vote of at least one-third of all the Members of the House

shall be necessary either to affirm a favorable resolution with the
3
Articles of Impeachment of the Committee, or override its contrary

resolution. The vote of each Member shall be recorded.
(4) In case the verified complaint or resolution of impeachment

is filed by at least one-third of all the Members of the House, the same
shall constitute the Articles of Impeachment, and trial by the Senate
shall forthwith proceed.
(5) No impeachment proceedings shall be initiated against

the same official more than once within a period of one year.
(6) The Senate shall have the sole power to try and decide all
cases of impeachment. When sitting for that purpose, the Senators
shall be on oath or affirmation. When the President of the Philippines
is on trial, the Chief Justice of the Supreme Court shall preside, but
shall not vote. No person shall be convicted without the concurrence
of two-thirds of all the Members of the Senate.
(7) Judgment in cases of impeachment shall not extend

further than removal from office and disqualification to hold any
office under the Republic of the Philippines, but the party convicted
shall nevertheless be liable and subject to prosecution, trial, and
punishment according to law.
(8) The Congress shall promulgate its rules on impeachment

to effectively carry out the purpose of this section.
SEC. 4. The present anti-graft court known as the

Sandiganbayan shall continue to function and exercise its jurisdiction
as now or hereafter may be provided by law.
SEC. 5. There is hereby created the independent Office

of the Ombudsman, composed of the Ombudsman to be known as
Tanodbayan, one overall Deputy and at least one Deputy each for
Luzon, Visayas, and Mindanao. A separate Deputy for the military
establishment may likewise be appointed.
SEC. 6. The officials and employees of the Office of the

Ombudsman, other than the Deputies, shall be appointed by the
Ombudsman according to the Civil Service Law.
4
LEGISLATIVE
LEGISLATIVE
MEASURESMEASURES
– PUBLIC ACTS
- ARTICLE XI
SEC. 7. The existing Tanodbayan shall hereafter be known

as the Office of the Special Prosecutor. It shall continue to function
and exercise its powers as now or hereafter may be provided by law,
except those conferred on the Office of the Ombudsman created under
this Constitution.
SEC. 8. The Ombudsman and his Deputies shall be natural-

born citizens of the Philippines, and at the time of their appointment,
at least forty years old, of recognized probity and independence, and
members of the Philippine Bar, and must not have been candidates
for any elective office in the immediately preceding election. The
Ombudsman must have for ten years or more been a judge or engaged
in the practice of law in the Philippines.
During their tenure, they shall be subject to the same

disqualifications and prohibitions as provided for in Section 2 of
Article IX-A of this Constitution.
SEC. 9. The Ombudsman and his Deputies shall be appointed

by the President from a list of at least six nominees prepared by the
Judicial and Bar Council, and from a list of three nominees for every
vacancy thereafter. Such appointments shall require no confirmation.
All vacancies shall be filled within three months after they occur.
SEC. 10. The Ombudsman and his Deputies shall have the
rank of Chairman and Members, respective, of the Constitutional
Commissions, and they shall receive the same salary, which shall
not be decreased during their term of office.
SEC. 11. The Ombudsman and his Deputies shall serve for
a term of seven years without reappointment. They shall not be
qualified to run for any office in the election immediately succeeding
their cessation from office.
SEC. 12. The Ombudsman and his Deputies, as protectors

of the people, shall act promptly on complaints filed in any form or
manner against public officials or employees of the Government, or any
subdivision, agency or instrumentality thereof, including government-
owned or controlled corporations, and shall, in appropriate cases,
notify the complainants of the action taken and the result thereof.
5
SEC. 13. The Office of the Ombudsman shall have the

following powers, functions, and duties:
(1) Investigate on its own, or on complaint by any person,

any act or omission of any public official, employee, office or agency,
when such act or omission appears to be illegal, unjust, improper,
or inefficient.
(2) Direct, upon complaint or at its own instance, any public

official or employee of the Government, or any subdivision, agency
or instrumentality thereof, as well as of any government-owned or
controlled corporation with original charter, to perform and expedite
any act or duty required by law, or to stop, prevent, and correct any
abuse or impropriety in the performance of duties.
(3) Direct the officer concerned to take appropriate action

against a public official or employee at fault, and recommend his
removal, suspension, demotion, fine, censure, or prosecution, and
ensure compliance therewith.
(4) Direct the officer concerned, in any appropriate case, and

subject to such limitations as may be provided by law, to furnish it
with copies of documents relating to contracts of transactions entered
into by his office involving the disbursement or use of public funds or
properties, and report any irregularity to the Commission on Audit
for appropriate action.
(5) Request any government agency for assistance and

information necessary in the discharge of its responsibilities, and to
examine, if necessary, pertinent records and documents.
(6) Publicize matters covered by its investigation when

circumstances so warrant and with due prudence.
(7) Determine the causes of inefficiency, red tape,

mismanagement, fraud, and corruption in the Government and
make recommendations for their elimination and the observance of
high standards of ethics and efficiency.
6
LEGISLATIVE
LEGISLATIVE
MEASURESMEASURES
– PUBLIC ACTS
- ARTICLE XI
(8) Promulgate its rules of procedure and exercise such other

powers or perform such functions or duties as may be provided by
law.
SEC. 14. The Office of the Ombudsman shall enjoy fiscal

autonomy. Its approved annual appropriations shall be automatically
and regularly released.
SEC. 15. The right of the State to recover properties unlawfully

acquired by public officials or employees, from them or from their
nominees or transferees, shall not be barred by prescription, laches,
or estoppel.
SEC. 16. No loan, guaranty, or other form of financial

accommodation for any business purpose may be granted, directly or
indirectly, by any government-owned or controlled bank or financial
institution to the President, the Vice-President, the Members of the
Cabinet, the Congress, the Supreme Court, and the Constitutional
Commissions, the Ombudsman, or to any firm or entity in which they
have controlling interest, during their tenure.
SEC. 17. A public officer or employee shall, upon assumption

of office and as often thereafter as may be required by law, submit a
declaration under oath of his assets, liabilities, and net worth. In the
case of the President, the Vice-President, the Members of the Cabinet,
the Congress, the Supreme Court, the Constitutional Commissions
and other constitutional offices, and officers of the armed forces with
general or flag rank, the declaration shall be disclosed to the public
in the manner provided by law.
SEC. 18. Public officers and employees owe the State and
this Constitution allegiance at all times, and any public officer or
employee who seeks to change his citizenship or acquire the status
of an immigrant of another country during his tenure shall be dealt
with by law.
7
ACT NO. 5
AN ACT FOR THE ESTABLISHMENT AND MAINTENANCE OF

AN EFFICIENT AND HONEST CIVIL SERVICE IN THE
PHILIPPINE ISLANDS
By authority of the President of the United States, be it enacted by the

United States Philippine Commission, that:
SECTION 1. The Commission shall appoint three persons

to be members of a board to be called the Philippine Civil Service
Board. The Commission shall designate one of such persons as
Chairman, and another as secretary, and may in its discretion
designate from among the members of the Board a chief examiner.
SEC. 2. No person shall be eligible for appointment as a

member of the Board unless he shall be a native of the Philippine
Islands owing and acknowledging allegiance to the United States,
or a citizen of the United States.
XXX XXX XXX
SEC. 4. The Board shall prepare rules adapted to carry

out the purpose of this Act, which is hereby declared to be the
establishment and maintenance of an efficient and honest civil
service in all the executive branches of the Government of the
Philippine Islands, central, departmental, and provincial, and of the
city of Manila, by appointments and promotions according to merit
and by competitive examinations where the same are practicable,
and it shall be the duty of all officers in the Philippine civil service
in the Department and Offices to which any such rules may relate,
to aid in all proper ways in carrying said rules and any modifications
thereof into effect.
XXX XXX XXX
SEC. 12. When the Board shall find that any person is
holding a position in the civil service in violation of the provisions
8
LEGISLATIVE MEASURES – PUBLIC ACTS
of this Act or the rules of the Board, it shall certify information of

the fact to the disbursing and auditing officers through whom the
payment of the salary or wages of such position is by law required
to be made, and if thereafter the disbursing or auditing officer shall
pay, or permit to be paid, to the person such salary or wages, the
payment shall be illegal, the disbursing officer shall not receive
credit for the same, and the auditing officer who authorizes the
payment shall be liable on his official bond for the loss resulting to
the proper government.
SEC. 13. Any person in the Philippine civil service who shall
wilfully or corruptly, by himself or in cooperation with one or more
persons, defeat, deceive, or obstruct any person in the matter of his
right of examination by said Board; or who shall wilfully, corruptly,
and falsely rate, grade, estimate, or report upon the examination or
standing of any person examined hereunder; or who shall wilfully
and corruptly make any false representations relative thereto;
or who shall willfully and corruptly furnish any special or secret
information for the purpose of improving or injuring the prospects
or chances of any person so examined, or to be examined, employed,
appointed or promoted, shall for each offense be punished by a fine
not exceeding one thousand dollars, or by imprisonment for a period
not exceeding one year, or by both such fine and imprisonment.
SEC. 14. Any person who shall wilfully and corruptly become
the beneficiary of an act in violation of the last preceding section
shall be punished in that section.
SEC. 15. No inquiry shall be made, and no consideration

whatever shall be given to any information, relative to the political
or religious opinions or affiliations of persons examined, or to be
examined, for entrance into the service, or of officers or employees
in the matter of promotion: Provided, however, That disloyalty to
the United States of America as the supreme authority in these
Islands shall be a complete disqualification for holding office in the
Philippine civil service.
XXX XXX XXX
9
SEC. 17. No officer or employee in the Philippine civil service

shall, directly or indirectly, give or hand over to any other officer
or employee in said service any money or other valuable thing to
be applied to the promotion of any political object whatever, and a
violation of this section by the giving or receiving officer or employee
shall subject the violator to a penalty of not exceeding five hundred
dollars or to imprisonment not exceeding six months, or both, and
upon conviction he shall be removed from office.
XXX XXX XXX
SEC. 29. This Act shall take effect on its passage, and shall
be referred to as the “Civil Service Act.”
ENACTED, September 19, 1900.
10
ACT NO. 12
AN ACT PRESCRIBING THE METHOD TO BE ADOPTED BY THE

INSULAR TREASURER IN KEEPING AND RENDERING
ACCOUNTS OF HIS RECEIPTS AND DISBURSEMENTS

SECTION 1. The accounts of the Insular Treasurer shall

show the kind of money, whether insular or that of the United
States, in which each item of his receipts and disbursements of
public funds has been made, and the account upon which the same
has been received or disburse.
SEC. 2. For the purpose of all reports required by law,

the Insular Treasurer shall prepare, on the books of the treasury,
tabulated statements, showing the several sources from which
revenue has been received and the several purposes for which the
same has been disbursed, with three columns of figures, the first
column showing the amounts of insular money actually received or
disbursed, the second column showing the amounts of United States
money so received or disbursed, and the third column showing the
aggregate amounts so received or disbursed stated in the money of
the United States, which last-named amount shall be ascertained
as provided in the next section.
XXX XXX XXX
SEC. 6. The Treasurer shall account for the actual money

received and disbursed by him, in the kinds of moneys so received
and disbursed, irrespective of its reduced equivalent in United
States money, and his accounts shall be audited upon this basis.
SEC. 7. This Act shall take effect on its passage.
ENACTED, October 3, 1900.
11
ACT NO. 190
AN ACT PROVIDING A CODE OF PROCEDURE IN CIVIL

ACTIONS AND SPECIAL PROCEEDINGS IN THE
PHILIPPINE ISLANDS

XXX XXX XXX
USURPATION FOR OFFICE OR FRANCHISE, ETC.
SEC. 197. Usurpation of an office or franchise. – A civil action

may be brought in the name of the Government of the Philippine
Islands:
Against a person who usurps, intrudes into, or unlawfully

holds or exercises a public civil office or a franchise within the
Philippine Islands, or an office in a corporation created by the
authority of the Government of the Philippine Islands;
Against a public civil officer who does or suffers an act which,

by the provisions of law, works a forfeiture of his office;
Against an association of persons who act as a corporation

within the Philippine Islands, without being legally incorporated or
without lawful authority so to act.
XXX XXX XXX
SEC. 796. When to take effect. – This Act shall take effect on
the first day of September, nineteen hundred and one.
ENACTED, August 7, 1901.
12
ACT NO. 328
AN ACT AMENDING SECTION TWO OF ACT NUMBERED

TWO HUNDRED AND FIFTEEN, ESTABLISHING
AND REGULATING ACCOUNTABILITY FOR PUBLIC
PROPERTY IN THE PHILIPPINE ARCHIPELAGO

SECTION 1. Act Numbered Two hundred and fifteen is

hereby amended so that section two shall read as follows:
“SEC. 2. Every officer or agent accountable for civil property

shall make returns of the same to the Auditor for the Archipelago,
in such manner as may be prescribed, quarterly as of the thirty-
first day of March, the thirtieth day of June, the thirtieth day
of September, and the thirty-first day of December of each year:
Provided, however, That officers accountable for Constabulary sales
stores shall make returns of the same monthly and within ten days
after the close of the period for which rendered.”
SEC. 2. The public good requiring the speedy enactment of

this bill, the passage of the same is hereby expedited in accordance
with section two of “An Act prescribing the order of procedure by the
Commission in the enactment of laws,” passed September twenty-
sixth, nineteen hundred.
ENACTED, January 8, 1902.
13
ACT NO. 749
AN ACT REQUIRING OFFICERS AND AGENTS OF THE INSULAR

GOVERNMENT WHOSE DUTY IT IS TO RECEIVE
AND DEPOSIT REVENUES OR OTHER MONEYS IN
THE INSULAR TREASURY OR IN A DESIGNATED
DEPOSITORY TO DEPOSIT THE SAME PROMPTLY, AND
PROVIDING A PENALTY FOR FAILURE TO DO SO; AND
ALSO A PENALTY FOR FAILURE BY ANY ACCOUNTABLE
OFFICER OF THE INSULAR GOVERNMENT OR
PROVINCIAL GOVERNMENTS TO RENDER ACCOUNT
AS REQUIRED BY LAW
By authority of the United States, be it enacted by the Philippine

Commission, that:
SECTION 1. All officers or agents of the Insular Government

whose duty it is to collect or receive revenues or other moneys and
deposit the same in the Insular Treasury or a designated depository
shall make deposits or remittances of the same, regardless of the
amount received or collected, as often as once a month, where safe
and possible, and if there is no opportunity for such remittance
within the month, as soon thereafter as possible, and a deposit shall
be made in every case as soon as possible where the revenue or
moneys in the hands of any officer or agent amounts to five hundred
dollars, United States currency, or its equivalent in Philippine or
Mexican currency: Provided, That no such officer or agent shall be
required to make a deposit oftener than once a day: And provided
further, That postmasters who are authorized to issue and pay
money orders shall remit by registered mail to their designated
depository all sums received by them from sales of money orders
in excess of their authorized reserve or the amount of the advices
of unpaid orders on hand less than two weeks, such remittances to
be made with each and every mail dispatched from their respective
offices which may convey mail to their designated depository.
SEC. 2. Any officer or agent of the Insular Government

who fails or neglects to comply with the provisions of this Act as to
14
deposits or remittances shall be, upon conviction, punished by a fine

in any sum not exceeding two thousand dollars in the discretion of
the court, and may be imprisoned until the fine and costs are paid.
Such failure to deposit or remit in accordance with the foregoing
section on the part of a collecting officer shall be also held to be
prima facie evidence of embezzlement of the sum not remitted or
deposited in any prosecution for embezzlement thereof.
SEC. 3. Every officer or agent of the Insular Government or of

any provincial government required by law to render accounts to the
Insular Auditor, who fails or neglects for the period of two months to
render accounts to the Insular Auditor as required by law, or when
required to do so by the Insular Auditor pursuant to law, shall be
deemed guilty of gross neglect of duty, and upon conviction thereof
may be punished by a fine of not exceeding two thousand dollars,
in the discretion of the court, and may be imprisoned until the fine
and costs are paid. Failure to make the proper accounts for money
received shall be held to be prima facie evidence of embezzlement of
the sums received and not accounted for.

ENACTED, May 16, 1903.
15
ACT NO. 839
AN ACT TO AMEND ACT NUMBERED FIFTY-TWO, ENTITLED

“AN ACT PROVIDING FOR EXAMINATIONS OF BANKING
INSTITUTIONS IN THE PHILIPPINE ISLANDS, AND FOR
REPORTS BY THEIR OFFICERS”

Commission, that:
SECTION 1. Section three of Act Numbered Fifty-two,

entitled “An Act providing for examinations of banking institutions
in the Philippine Islands, and for reports by their officers,” is hereby
repealed and the following substituted therefor:
“SEC. 3. It shall be the duty of the Treasurer for the Islands,

or of an authorized deputy by him appointed, personally at least
once in every six months, and at such other times as he may deem
expedient, to make an examination of the books of every such bank,
of its cash and available assets in the Philippine Islands, and of
its general condition and method of doing business, and he shall
make report of the same to the Civil Governor, to the Philippine
Commission, and to the Secretary of War.”

ENACTED, August 24, 1903.
16
ACT NO. 1044
AN ACT TO PROVIDE FOR SUBMISSION TO THE CIVIL

GOVERNOR OF ANNUAL REPORTS BY ALL PROVINCIAL
GOVERNORS, AND REPEALING SUCH PORTIONS OF
ACT NUMBERED EIGHTY-THREE, THE PROVINCIAL
GOVERNMENT ACT, AND ITS AMENDMENTS, AND OF
ACT AND AMENDMENTS THEREOF PROVIDING FOR
THE ESTABLISHMENT OF CIVIL GOVERNMENT FOR
THE PROVINCE OF BENGUET, LEPANTO-BONTOC,
NUEVA VIZCAYA, MINDORO, AND PARAGUA AS ARE
INCONSISTENT WITH THE PROVISIONS OF THIS ACT

Commission, that:
SECTION 1. Between the first and fifteenth of July of each

year a report shall be made by each provincial governor to the Civil
Governor of the Philippine Islands for the fiscal year ending on the
thirtieth day of June. This report shall embrace all matters pertinent
to the administration and progress of the provincial government,
and contain full information as to the commercial, economic,
financial, industrial, and political conditions of the province, in
order that the Civil Governor and the Philippine Commission
may be properly informed of the actual existing conditions in the
Islands during the period covered by the report. Should unexpected
events or matters of special importance to the general welfare of
the province occur subsequent to the date of the regular annual
report, a supplementary statement may also be filed, not later than
September fifteenth, in order that complete data may be at hand for
the use of the Civil Governor in submitting his annual report to the
Philippine Commission: Provided, however, That this is shall not
apply to the Moro Province.
SEC. 2. Such portions of Act Numbered Eighty-three, the

Provincial Government Act, and its amendments, and of Acts
and amendments thereof providing for the establishment of civil
government for the Provinces of Benguet, Lepanto-Bontoc, Nueva
17
Vizcaya, Mindoro, and Paragua as are inconsistent with the

provisions of this Act are hereby repealed.

with section two of “An act prescribing the order of procedure by the
ENACTED, January 26, 1904.
18
ACT NO. 1054
AN ACT TO AMEND SECTION ELEVEN OF ACT NUMBERED

SIX HUNDRED AND NINETEEN, ENTITLED “AN ACT
TO PROMOTE GOOD ORDER AND DISCIPLINE IN THE
PHILIPPINES CONSTABULARY,” SO AS TO PROVIDE
THAT WHERE THE ACCUSED HAS BEEN CONVICTED
BY SUMMARY COURT THREE TIMES WITHIN A YEAR
HE MAY BE SENTENCED TO BE DISHONORABLY
DISCHARGED AND TO FORFEIT ALL PAY AND
ALLOWANCES DUE OR TO BECOME DUE, IN ADDITION
TO ANY OTHER PENALTY PROVIDED BY LAW

Commission, that:
SECTION 1. Section eleven of Act Numbered Six hundred

and nineteen, entitled “An Act to promote good order and discipline
in the Philippines Constabulary,” is hereby amended by inserting
in the eighteenth line of said section, after the words “discharge”
and before the words “in addition to the penalties hereinbefore
mentioned,” the following words: “and to forfeit all pay and
allowances due or to become due,” so that the proviso in which said
insertion occurs shall read as follows: “Provided, That where the
accused is a noncommissioned officer or a first-class private, he may
be sentenced to reduction to the grade of second-class private in
addition thereto, and that where the accused has been convicted
by summary court three times within a year he may be sentenced
to be dishonorably discharged and to forfeit all pay and allowances
due or to become due, in addition to the penalties hereinbefore
mentioned.”

19
ENACTED, February 20, 1904.
20
ACT NO. 1072
AN ACT AMENDING ACT NUMBERED FIVE ENTITLED “AN

ACT FOR THE ESTABLISHMENT AND MAINTENACE
OF NA EFFICIENT AND HONEST CIVIL SERVICE IN
THE PHILIPPINE ISLANDS.” AS AMENDED BY ACTS
NUMBERED FORTY-SEVEN, ONE HUNDRED AND TWO,
ONE HUNDRED AND SIXTY-SEVEN, THREE HUNDRED
AND SIX, AND FIVE HUNDRED AND EIGHTY-NINE

Commission, that:
SECTION 1. Section one of Act Numbered Five is hereby

stricken out and the following substituted in lieu thereof:
“SECTION 1. The Civil Governor, by and with the advice and

consent of the Philippine Commission, shall appoint three persons
to be members of a board to be called the Philippine Civil Service
Board. The Civil Governor shall designate one of these appointees
as chairman.”
SEC. 2. Section three of Act Numbered Five, as amended by

Act Numbered One hundred and two, is hereby stricken out and the
following substituted in lieu thereof:
“SEC. 3. (a) The Board shall keep an official roster of all

officers and employees above the grade of unskilled laborer in the
civil service of the Philippine Islands, and for the purpose of this
roster each head of a Bureau or Office shall furnish to the Bureau
the necessary information, in such form and manner as it shall
prescribe. The rooster shall be published at intervals to be fixed by
the Civil Governor.
“(b) All heads of Bureaus or Offices shall cause to be kept

an accurate record of the attendance of all officers and employees
under them who are entitled to leave of absence provided by law,
21
and shall report to the Board, in the form and manner prescribed by
it, all absences from duty from any cause whatever. The Board shall
keep an accurate record of such absences.”
SEC. 3. Section five of Act Numbered Five, as amended by

Acts Numbered One hundred and sixty-seven, Three hundred and
six, and Five hundred and eighty-nine, is hereby amended to read
as follows:
“SEC. 5. This Act shall apply, except as hereinafter expressly

provided, to all appointments of civilians in the Bureaus and Offices
of the Government of the Philippine Islands, insular or provincial,
or of the city of Manila: Provided, That persons appointed by the
Civil Governor, by and with the advice and consent of the Philippine
Commission, shall not be included in the classified service unless
otherwise specifically provided by law.”
SEC. 4. Paragraph (p) of section six of Act Numbered Five is

hereby amended to read as follows”
“(p) For the employment of clerks and other employees for

temporary service in the absence of available eligibles or when
the work is temporary in character: Provided, that the temporary
employment of any person occupying a permanent position shall
cease when the Board shall certify an eligible who accepts temporary
or probational appointment.”
SEC. 5. Section seven of Act Numbered Five is hereby

amended by striking out the word “January” and the words “which
it has adopted,” and substituting respectively in lieu thereof the
word “July” and the words “which have been certified by the Board
and approved by the Civil Governor.”
SEC. 6. Section twelve of Act Numbered Five is hereby

amended to read as follows:
“SEC. 12. No person shall be appointed to or employed

in the classified service of the Philippine Islands or in any of the
22
unclassified positions enumerated in section twenty, except as

provided by an appropriation Act or a resolution of the Philippine
Commission pledging an appropriation or by a resolution of a
provincial board approved by the Insular Treasurer, passed prior
to such appointment or employment. Any person appointed to or
employed in the classified service by the head or acting head of a
Bureau or Office in violation of the provisions of the Civil Service
Act or Rules shall not be entitled to receive salary or wages from the
Government, but the head or acting head of the Bureau or Office who
signs or makes such appointment or employment shall be personally
responsible to him for the salary which would have accrued to him
had the appointment or employment been made in accordance with
the provisions of the Civil Service Act and Rules, and payment shall
be made to him out of the salary of the head of the Bureau or Office
by the disbursing officer. No disbursing officer shall pay any salary
or wages to any person appointed to or employed in a classified civil-
service position, except from the salary of the head or acting head of
the Bureau or Office as hereinbefore provided, until proper evidence
is furnished him by the head or acting head of the Bureau or Office
that the person has been appointed or employed in accordance with
the provisions of the Civil Service Act and Rules. When the Board
shall find that any person is holding a position in the classified
civil service in violation of the provisions of the Civil Service Act or
Rules, it shall certify information of the fact to the Auditor and to
the disbursing officer through whom the payment of salary or wages
to such person is by law required to be made. If the Auditor shall find
that a disbursing office has paid or permitted to be paid salary or
wages to any person illegally holding a classified position, the whole
amount paid shall be disallowed and the disbursing officer shall not
receive credit for the same. If the Auditor shall find that the head or
acting head of a Bureau or Offices is responsible, as above provided,
for the payment of salary or wages to such person and that such
payment is not due to the failure of the disbursing officer obtain
proper evidence as herein required, the disbursing officer shall be
directed to withhold from the salary of such head or acting head
of the Bureau or Office an amount equal to that disallowed by the
Auditor. A disbursing officer, the head of any Department, Bureau
or Office, or the Auditor may apply for and the Civil Service Board
23
shall render a decision upon any question as to whether a position

is in the classified or the unclassified civil service, or whether the
appointment of any person to a classified position has been made
in accordance with the Civil Service Act and Rules, which decision,
when rendered, shall be sufficient authority for the Auditor in
passing upon the account.
SEC. 7. Section thirteen of Act Numbered Five, as amended

by Act Numbered Five hundred and eighty-nine, is hereby amended
by striking out the words “in the Philippine civil service,” and by
inserting after the word “corruptly” and before the word “furnish”
the words “use or,” and by striking out the words “of any” after the
word “chances” and before the word “person” and substituting in
lieu thereof the words “of himself or any other.”
SEC. 8. Section twenty of Act Numbered Five, as amended

by Acts Numbered One hundred and sixty-seven, Three hundred
and six, and Five hundred and eighty-nine, is hereby amended to
read as follows:
“SEC. 20. The requirements of this Act for entrance into the
civil service, or for promotion by examination, shall not apply to the
selection of the following officers and employees:
“1. One private secretary to each member of the Philippine

Commission, including the Civil Governor.
“2. Any person in the military or naval service of the United

States who may be detailed for the performance of civil duties.
“3. Persons employed as semiskilled or unskilled laborers

whose rate of compensation is less than three hundred and sixty
dollars per annum.
“4. All employees whose rate of compensation is one hundred

and twenty dollars or less per annum.
“5. Postmasters and customs inspectors whose rates of

compensation do not exceed three hundred and one hundred and
24
eighty dollars per annum, respectively, who may lawfully perform

the duties of postmasters or customs inspector in connection
with the other official duties with which they are charged, if they
be government employees, or if not government employees, in
connection with their private business, such duties requiring only a
portion of their time.
“6. Detectives, secret agents, sheriffs, and deputy sheriffs.
“7. Any position in the Department of Commerce and

Police the duties of which are of a quasi military or quasi naval
character.
“8. Chinese and Japanese employees.
SEC. 9. Section twenty-one of Act Numbered Five, as

amended by Acts Numbered One hundred and sixty-seven, Three
hundred and six, and Five hundred and eighty-nine, is hereby
amended to read as follows”
“SEC. 21. Vacancies in the position of heads and of assistant

heads of Bureaus or Offices and of superintendents shall filled
by promotion, without examination, of persons in the classified
service, if competent persons are found in the service who in the
judgment of the appointing power are available and possess the
qualifications required, the intention of this provision being that
the appointing power may, by virtue hereof, select for appointment
from the entire classified service the person deemed most competent
to fill the vacancy: Provided, however, That an examination may be
given when requested by the Civil Governor or proper head of an
Executive Department.”
SEC. 10. Section twenty-three of Act Numbered Five, as

amended by Act Numbered Five hundred and eighty-nine, is hereby
“SEC. 23. The position of teacher in the insular service and

in the municipal service of Manila is hereby classified and made
25
subject to all the provisions of the Civil Service Act and Rules, and
all teachers now serving under regular appointment in the insular
service or in the municipal service of Manila are hereby declared to
be in the classified service.”
SEC. 11. Section thirty of Act Numbered Five, as provided

in Act Numbered Forty-seven, and all other Acts or parts of Acts
inconsistent with this Act are hereby repealed.

ENACTED, March 3, 1904.
26
ACT NO. 1096
AN ACT AMENDING ACT NUMBERED TWENTY-FIVE, ENTITLED

“AN ACT PROVIDING FOR THE APPOINTMENT
AND REMOVAL OF SUBORDINATE OFFICERS AND
EMPLOYEES IN CERTAIN DEPARTMENTS AND
BUREAUS OF THE GOVERNMENT OF THE PHILIPPINE
ISLANDS,” AS AMENDED

Commission, that:
SECTION 1. In lieu of section two of Act Numbered Twenty-

five, which was repealed by Act Numbered Five hundred and eighty-
eight, the following is substituted:
SEC. 2. For neglect of duty or violation of reasonable

office regulations, or in the interests of the public service, heads
of Bureaus or Offices are hereby authorized to reduce the salary
or compensation of any subordinate officer or employee, to deduct
from his pay a sum not exceeding one month’s pay, or to suspend
him without pay for a period not exceeding two months: Provided,
however, That such deduction from pay or such suspension without
pay shall receive the approval of the Civil Governor or the proper
head of an Executive Department, after having submitted to the
Civil Service Board for recommendation: And provided further,
That any reduction in salary or deduction of pay or any suspension
without pay as provided for in this section shall not affect the right
of the person thus disciplined to accrued leave of absence, but in the
event of his suspension from duty no accrued leave of absence shall
be allowed for the time he is thus suspended.”

27
28
ACT NO. 1161
AN ACT DECLARING ANY BONDED OFFICE OR EMPLOYEE OF

THE CIVIL GOVERNMENT WHO LEAVES OR ATTEMPTS
TO LEAVE THE PHILIPPINE ISLANDS WITHOUT FIRST
SECURING A CLEARANCE FROM THE AUDITOR TO BE
GUILTY OF A MISDEMEANOR

Commission, that:
SECTION 1. Any bonded officer or employee of the Civil

Government of the Philippine Islands who leaves or attempts to
leave the Philippine Islands without first securing a clearance from
the Auditor showing that his accounts with the Government have
been satisfactory settled and adjusted, shall be deemed guilty of
gross neglect of duty, and shall be punished by imprisonment for
not exceeding six months or by a fine of not more than one thousand
pesos, or both, in the discretion of the Court.

ENACTED, May 23, 1904.
29
ACT NO. 1373
AN ACT TO AMEND ACT NUMBERED SIX HUNDRED AND

NINETEEN, ENTITLED “AN ACT TO PROMOTE GOOD
ORDER AND DISCIPLINE IN THE PHILIPPINES
CONSTABULARY”

Commission, that:
SECTION 1. Act Numbered Six hundred and nineteen,

entitled “An Act to promote good order and discipline in the
Philippines Constabulary,” is hereby amended by striking out
section nine and substituting in lieu thereof the following:
“SEC. 9. It shall be the duty of all Constabulary officers

having knowledge of the facts to report to the prosecuting attorney
or provincial fiscal the name of any member of the Constabulary
force guilty of any of the offenses mentioned in the preceding
sections, together with the names of the witnesses against them,
and it shall be the duty of the prosecuting attorney or provincial
fiscal, if upon investigation of the facts an offense appears to have
been committed, to prosecute the same before the Court of First
Instance as in other criminal cases; and if the prosecuting attorney
or provincial fiscal has information from any other source of the
commission of any of the offenses mentioned in sections one, two,
and three hereof he shall proceed against the offenders as in other
criminal cases.”

ENACTED, July 11, 1905.
30
ACT NO. 1605
AN ACT FORBIDDING, UNDER PENALTY, BONDED OFFICERS

OR BONDED EMPLOYEES, OR FORMER BONDED
OFFICERS OR BONDED EMPLOYEES, OF THE INSULAR
GOVERNMENT, OR OF ANY PROVINCIAL OR MUNICIPAL
GOVERNMENT IN THE PHILIPPINE ISLANDS, OR OF
THE CITY OF MANILA, FROM LEAVING OR ATTEMPTING
TO LEAVE THE PHILIPPINE ISLANDS WITHOUT FIRST
SECURING A CERTIFICATE FROM THE INSULAR
AUDITOR, AND REPEALING ACT NUMBERED ELEVEN
HUNDRED AND SIXTY-ONE

Commission, that:
SECTION 1. No bonded officer or bonded employee of the

Insular Government, or of any provincial or municipal government
in the Philippine Islands, or of the city of Manila, whether in the
actual service of such government or separated therefrom, shall
leave or attempt to leave the Philippine Islands without first
securing a certificate from the Insular Auditor showing that his
accounts with the government of which he is or was such bonded
officer or bonded employee have been finally settled by said Auditor.
Every such officer or employee violating any of the provisions of this
Act shall, on conviction thereof, be punished by imprisonment for
not exceeding six months, or by a fine of not more than one thousand
pesos, or both, in the discretion of the court.
SEC. 2. Act Numbered Eleven hundred and sixty-one,

entitled “An Act declaring any bonded officer or employee of the
Civil Government who leaves or attempts to leave the Philippine
Islands without first securing a clearance from the Auditor to be
guilty of a misdemeanor,” is hereby repealed.

31

32
ACT NO. 1726
AN ACT TO AMEND ACT NUMBERED FIFTEEN HUNDRED

AND EIGHTY-TWO, KNOWN AS “THE ELECTION
LAW,” BY DISQUALIFYING CERTAIN PERSONS FROM
HOLDING PROVINCIAL OR MUNICIPAL OFFICES AND
AUTHORIZING THE GOVERNOR-GENERAL TO REMOVE
INELIGIBLE PERSONS FROM OFFICE

Commission, that:
SECTION 1. The sixth paragraph of section twelve of Act

Numbered Fifteen hundred and eighty-two, known as “The Election
Law,” as amended, is hereby amended to read as follows:
“Unless fully pardoned, no person who is under judgment

of conviction of a crime which is punishable by imprisonment for
two years or more or which involves moral turpitude, regardless of
whether or not an appeal is pending in the action, shall hold any
public office, and no person disqualified from holding public office
by the sentence of the court, whether or not an appeal is pending in
the action, or so disqualified under the provisions of Act Numbered
Eleven hundred and twenty-six, as amended, shall be eligible to
hold public office during the term of his disqualification.”
SEC. 2. Section twelve of said Act Numbered Fifteen hundred

and eighty-two is hereby further amended by adding at the end
thereof a new paragraph to read as follows:
“The Governor-General, upon receipt of proof satisfactory to

him that an ineligible person is holding any provincial or municipal
office or employment, may summarily remove such person.”
SEC. 3. The second paragraph of section twenty-five of said

Act Numbered Fifteen hundred and eighty-two is hereby amended
to read as follows:
33
“Upon the filing of said certificate in the office of the Executive

Secretary, the Governor-General shall confirm the election of each
of the candidates so certified unless there be a contest pending
and undetermined in the courts, in which case he shall withhold
confirmation with respect to any person involved in such contest
until a certified copy of the decision of the court shall have been
filed with the Executive Secretary. The Governor-General may
refuse to confirm the election of any elective provincial officer if
there is reasonable ground to suspect his loyalty to the constituted
authorities, or if there is, in the opinion of the Governor-General,
reasonable ground to believe that such person is morally unfit to hold
public office, or in case, in the opinion of the Governor-General, such
person has a bad reputation for morality, honesty, and uprightness
in the community in which he lives. In case of refusal to confirm
the election of any provincial officer the Governor-General, with the
advise and consent of the Philippine Commission, may appoint a
suitable person to fill the vacancy for the full term and until the
election and qualification of a successor or, in his discretion, may
call a special election to fill the office as provided in section four
hereof, and at such special election a person whose confirmation
was so refused shall be ineligible and no vote shall be counted or
canvassed for him.”

ENACTED, September 27, 1907.
34
ACT NO. 1739
AN ACT CREATING THE “FIDELITY-BOND PREMIUM FUND”

PROVIDING FOR ASSURANCE AGAINST LOSSES,
SHORTAGES, AND DEFALCATIONS BY OFFICERS OR
EMPLOYEES ACCOUNTABLE FOR PUBLIC FUNDS AND
PUBLIC PROPERTY, AND FOR OTHER PURPOSES

Commission, that:
SECTION 1. There is hereby appropriated, out of any funds

in the Insular Treasury not otherwise appropriated, the sum of
forty thousand pesos, to be known as the “Fidelity-bond premium
fund.” This fund shall be a permanent reimbursable appropriation
and shall be available –
(a) For the purpose of replacing losses, shortages, or

defalcations in the accounts of all Insular and provincial officers and
employees and officers and employees of the city of Manila who are
accountable for public funds or public property, unless such officers
or employees have been relieved under the provisions of existing
law ;
(b) For the purpose of replacing losses, shortages, or

defalcations in the accounts of municipal treasurers who are at the
same time deputies of the provincial treasurer, unless such officers
have been relieved in like manner ;
For the refund of unearned premiums on bonds executed

prior to December thirty-first, nineteen hundred and seven, when
such refund would have been properly chargeable against the fund
created by Act Numbered Fourteen hundred and sixteen, entitled
“Fidelity- bond premiums,” and abolished in the next succeeding
section ;
(d) For the payment of all fees and costs accruing as a result
and in consequence of any civil action or proceeding taking against
35
any bonded officer or employee, within the meaning of this Act, who
has suffered losses in the public funds or public property for which
he is accountable, or who has defaulted, or in whose accounts of
public finds or public property shortages may be discovered which
have been arisen from any cause: Provided, however, That whenever
any person suffers loss in money or property intrusted to any officer
or agent of the Government bonded in the fidelity-bond premium
fund who, by virtue of his official position and in accordance with
law, received such money or property, the head of the Bureau or
Office concerned and the Insular Auditor may, after ascertaining
and fixing the amount of loss, recommend that such loss be repaid
out of the fidelity-bond premium fund. Upon approval of such
recommendation by the Governor-General the Insular Treasurer
shall pay the amount so recommended and approved out of said
fund.
SEC. 2. The permanent reimbursable appropriation entitled

“Fidelity bond premiums,” and created by Act Numbered Fourteen
hundred and sixteen, entitled “An Act making appropriation
for sundry expenses of the Insular Government for the fiscal
year ending June thirtieth, nineteen hundred and six, and other
designated periods,” is hereby abolished, and any balances standing
to the credit of said appropriation and all moneys which are due
to said appropriation and remain unpaid on December thirty-first,
nineteen hundred and seven, and all sums paid to cover or replace
shortages, losses, and defalcations and afterwards recovered, and
all payments required from provinces or municipalities and from
bonded officers or employees on account of fidelity-bond premiums,
and all premiums paid out of funds or appropriations of Insular
Offices or Bureaus under section ten of this Act , and all interest of
other accretion on the money in the said fidelity-bond premium fund
shall be merged in, accrue to, and become a part of said fidelity-bond
premium fund created in the preceding section.
SEC. 3. The Governor-General shall fix, and may from time

to time change, the annual rate of premium chargeable for insurance
of the fidelity of officers and employees in the fidelity-bond premium
fund. Two-thirds of the rate of premium so fixed shall be charged
36
to the fidelity-bond premium fund on behalf of every Insular officer

or employee, and in the case of provincial officers or employees
and officers and employees of the city of Manila two-thirds of said
premium shall be paid by the province to which the particular
bonded position may belong or by the city of Manila, as the case may
be, and one-third of such premium shall in all cases not exempted
under sections four and nine of this Act be paid out of the personal
funds of the officer or employee whose fidelity is insured in said
fund. The Insular Treasurer shall collect the amount of premiums
due from the various Bureaus, Offices, and provinces and from the
city of Manila and from the individuals who are bonded under such
Offices, Bureaus, and provinces and the city of Manila.
SEC. 4. The Philippine Commission may, by resolution,

exempt any accountable officer or employee from the payment of
his part of the bond premium, and any officer or employee now
exempted from such payment shall continue to be so exempted
unless and until the Philippine Commission, by resolution, shall
otherwise determine.
SEC. 5. It shall be the duty of the Insular Treasurer to prepare

and keep an exact and accurate record of bonded positions in such
manner and in such detail as may be required by the Secretary of
Finance and Justice, and to make such changes in said record from
time to time as changing facts and conditions may require.
SEC. 6. Whenever an appointment or designation is made

to any bonded Insular or provincial position, or to a bonded position
under the city of Manila, or to the dual office of the municipal and
deputy provincial treasurer, the person so appointed or designated
shall ipso facto be deemed to be a bonded officer or employee within
the meaning of this Act, and his liability as such shall begin on
the day on which he enters upon the discharge of the duties
of such position; and his liability for the payment of his share
of the premium, and, if he be a provincial officer or employee or
an officer or employee of the city of Manila, or a municipal and
deputy provincial treasurer, the liability of the province, the city
of Manila, or the municipality, as the case may be, for its share,
37
of the bond premium of such person shall begin on such day. No

formal application on the part of any person occupying a bonded
position shall be deemed necessary to make him such bonded officer
or employee, but the fact of his acceptance of the position and of his
entrance upon the discharge of the duties of such position shall be
deemed to carry with it his consent to be placed upon the schedule of
bonded officers and employees, and to the assumption of all duties,
premium charges, liabilities, and penalties by law attached to such
position : Provided, That the liabilities, responsibilities, and duties
of all persons occupying bonded positions within the meaning of
this Act on January first, nineteen hundred and eight, shall begin
on said day and the liability for the payment of their share of the
fidelity-bond premium and the like liability of the provinces, the
city of Manila, and municipalities shall likewise begin on said day
: And provided further, That premiums shall be due and payable
semi-annually in advance, and no refund of premiums so paid shall
be made from the fund hereby created, but refund of unearned
premiums shall be made to the officer or agent who has paid the
same (a) upon retirement from the services, by his successor, or in
case there is no successor from the appropriations or funds of the
Bureau or Office concerned; (b) in cases where by reason of illness or
other cause an acting officer or agent is appointed and bonded, from
the appropriations or funds of the Bureau or Office concerned, the
intent of this law being that two bonds shall not exist for the same
office at the same time.
SEC. 7. The chief of the Bureau or Office to which any

bonded position, now in existence or hereafter created, may pertain,
shall at one, and without delay, notify the Insular Treasurer of
the appointment or designation of any person to fill or discharge
the duties of such position. In the provinces this duty shall be
performed by the provincial treasurers, in the Moro province by the
provincial treasurer of that province, and in Manila by the secretary
of the Municipal Board. Such notification shall contain the title or
designation of the position, the name of the person appointed or
designated, the name of the person relieved, the financial or property
accountability pertaining to the position and the maximum of public
funds, or the total value of the public property likely to be in the
38
hands of the incumbent at any one time, the salary attached to the
position, the amount of the bond required of the position by law or
authoritative regulation, if any, and if not, a recommendation as
to the amount, the date of the relief of the preceding incumbent
from the duties of such position, and the date on which the person
appointed or designated assumes charge. Such notification shall also
state the opinion of the appointing officer of the business and moral
qualifications of the person appointed or designated for the position
in question and any such other information in the possession of the
appointing officer as may have a bearing upon the amount of the
bond to be required or as may be asked for by the Insular Treasurer.
Upon receipt of this information the Insular Treasurer shall place
the name of such person upon the record provided for in section five
of this Act and shall notify the chief of Bureau or head of Office of
the action taken: Provided, however, That the Insular Treasurer, if
in his judgment the character, associations, or habits of the insured
person do not constitute such person a safe and conservative risk,
may report the facts to the Governor-General for proper action.
SEC. 8. When an official is acting in the dual capacity

of deputy of the provincial treasurer and municipal treasurer,
notification thereof, as prescribed in section seven of this Act, shall
at once and without delay be forwarded to the Insular Treasurer by
the provincial treasurer whose deputy such official is, and in such
cases the provisions of section seventeen of Act Numbered Eighty-
two, as amended, shall not apply. The Insular Auditor shall fix the
amount of the bond of such officer upon the recommendation of the
provincial treasurer, and one-half of the premium chargeable shall
be paid by the province and the other half by the municipality. It shall
be the duty of the provincial treasurer, subject to the supervision of
the Insular Auditor, to collect from the various municipalities in
his province, the treasurers of which are deputies of the provincial
treasurer, and from the individuals who are his deputies, the
amounts respectively due as bond premiums, and to forward the
same to the Insular Treasurer.
SEC. 9. Whenever any official, employee, or agent shall be

designated by the proper authority temporarily to perform the duties
39
of the head of a Bureau or Office or of any subordinate office or the

duties of any employment under any Office, Bureau, or province in
accordance with section fifteen of Act Numbered Sixteen hundred
and ninety-eight, all fidelity and premium charges which shall be
due or accrue on account of such temporary designation shall be
paid wholly from the appropriations or funds of the Department,
Bureau, Office, province or municipality, as the case may be, in
which the services are rendered.
SEC. 10. All persons whose names are listed on the record
required in section five of this Act to be made and kept shall be
deemed to be bonded to the Government of the Philippine Islands
for the faithful performance of all duties now or hereafter imposed
by law upon the positions occupied by them, and for the faithful
accounting for all public funds and public property coming into their
possession, custody, or control by appropriation, collection, transfer,
or in any other manner, and for the lawful payment, disbursement,
expenditure or transfer of all public funds or public property in their
hands, possession, or custody or under their control as accountable
or responsible officers : Provided, however, That the conditions
governing the accountability of provincial treasurers shall continue
and remain as fixed in section five of Act Numbered Eighty-three,
known as “The Provincial Government Act,” as amended, and section
four of Act Numbered Thirteen hundred and ninety-six, known as
“The Special Provincial Government Act,” as amended.
SEC. 11. Every person whose name is or has been listed on

the record or schedule of names of bonded positions provided for in
this Act shall be deemed to be or to have been a “bonded officer” or
a “bonded employee” within the meaning of Act Numbered Sixteen
hundred and five, entitled “An Act forbidding, under penalty,
bonded officers or bonded employees or former bonded officers or
bonded employees, of the Insular Government, or of any provincial
or municipal government in the Philippine Islands, or the city of
Manila, from leaving or attempting to leave the Philippine Islands
without first securing a certificate from the Insular Auditor, and
repealing Act Numbered Eleven hundred and sixty-one,” and within
the meaning of every other Act in force fixing the responsibility,
40
accountability, liability, duties, or penalties of officers or employees

who were heretofore required to give bond for the faithful
performance of their duties and the accounting for public funds or
public property.
SEC. 12. The Insular Auditor shall fix the amount for which
the various positions contemplated in this Act shall be bonded. The
Auditor shall determine the exact amount of losses, shortages, and
defalcations which may be found in the accounts of any bonded
officers, employees, or agents, whether of money or property, the
amount to be paid in order to replace such losses, shortages, or
defalcations, and the account or accounts of the Bureau, Office,
province, or municipality to which such sums shall be paid from
the fidelity-bond premium fund. When the Auditor has determined
such amount he shall certify the same to the Insular Treasurer, who
shall thereupon issue a warrant therefor.
SEC. 13. The powers and duties vested in the Insular

Auditor by sections forty-three and forty-four of the Accounting Act
are hereby extended in their entirety to the fidelity-bond premium
fund.
SEC. 14. The moneys in the fidelity-bond premium fund

may be invested by the Insular Treasurer, with the approval of the
Governor-General, in any or all of the ways in which the funds of
the Philippine Postal Savings Bank may be invested by the Postal
Savings Bank Investment Board under authority of section eighteen
of Act Numbered Fourteen hundred and ninety-three, as amended.
SEC. 15. The provisions of this Act shall not be applicable to

sheriffs of provinces or to provincial governors acting as sheriffs.
SEC. 16. Section twenty-three of Act Numbered One hundred

and thirty-six, as amended, is hereby amended to read as follows:
“SEC. 23. The governor of the province, or, if he declines

to act as sheriff, any person lawfully appointed to the position of
sheriff, shall, before being qualified to perform the duties of sheriff or
41
officer of the court, execute a bond, with not less than three sureties,
running to the Government of the Philippine Islands, for the benefit
of whom it may concern, in the penal sum of twenty thousand pesos.
The sureties on said bond shall qualify under oath before the judge of
the court of the First Instance, or, in his absence, before the clerk of
the court. The bond shall be conditioned for the faithful performance
of the duties of himself and his deputies as sheriff and officer of the
court and for the payment to the Government or the persons entitled
thereto of all sums of money that shall come into his or their hands
officially. Its form shall be prescribed by the Auditor, who shall
approve and forward it to the Insular Treasurer for file. The bond
shall bear an indorsement of the provincial treasurer stating that
after due investigation, and to the best of his knowledge and belief,
the sureties collectively own real property in the sum of twenty
thousand pesos, free from incumbrances and over and above any
liabilities owing by them. The bond shall thereupon be forwarded to
the Insular Treasurer and, after his approval, be kept on file in his
office. The bond shall be available for the benefit of the Government
and of any person in interest. Until the bond has been approved by
the Auditor the officer shall not be entitled to any fees for services
performed, but the Auditor’s approval shall be effective as of the
date of the bond. The governor or sheriff may require each deputy
appointed by him to execute a sufficient indemnity for his protection
against any wrong-doing on the part of such deputy.”
SEC. 17. Act Numbered Two hundred and forty-nine, entitled

“An Act requiring all officers and employees who shall receive and
have custody of money in the discharge of their official duties to
give bond;” Act Numbered Four hundred and sixty-four, entitled
“An Act vesting the Insular Treasurer with power to increase or
diminish the bonds of public officials, with the approval of the Civil
Governor;” Act Numbered Six hundred and twenty-six, entitled “An
Act providing that when any official or employee of the Governor shall
be designated to perform the duties of another official or employee,
in accordance with Act Numbered Four hundred and eight, he shall
be reimbursed for such additional expense as he shall be obliged to
incur for bond by reason of such designation ; and making this Act
retroactive;” Act Numbered Seven hundred and ninety-nine, entitled
42
“An Act immediately to reimburse from the Insular Treasury the

treasuries of provinces which have suffered loss through defalcations
of their bonded officials, pending recovery of amounts lost on the
official bonds,” and Act Numbered One thousand and ninety-seven,
entitled “An Act relating to the payment of the premium charges
upon the bonds of bonded Insular, provincial, and municipal officers
and employees,” are hereby repealed.

SEC. 19. This Act shall take effect on December thirty-first,

nineteen hundred and seven, with the approval of the Secretary of
War first had and obtained.
43
ACT NO. 1740
AN ACT PROVIDING FOR THE PUNISHMENT OF PUBLIC

OFFICERS AND EMPLOYEES WHO FAIL OR REFUSE TO
ACCOUNT FOR PUBLIC FUNDS OR PROPERTY OR WHO
MAKE PERSONAL USE OF SUCH FUNDS OR PROPERTY,
OR ANY PART THEREOF, OR WHO MISAPPROPRIATE
THE SAME, OR ANY PART THEREOF, OR WHO ARE
GUILTY OF ANY MALVERSATION WITH REFERENCE
TO SUCH FUNDS OR PROPERTY, OR WHO THROUGH
ABANDONMENT, FAULT, OR NEGLIGENCE PERMIT
ANY OTHER PERSON TO ABSTRACT, MISAPPROPRIATE,
OR MAKE PERSONAL USE OF THE SAME

Commission, that:
SECTION 1. Any bonded officer or employee of the Insular

Government, or of any provincial or municipal government, or of the
city of Manila, and any other person who, having charge, by reason
of his office or employment, of Insular, provincial, or municipal
funds or property, or of funds or property of the city of Manila, or
of trust or other funds by law required to be kept or deposited by or
with such officer, employee, or other person, or by or with any public
office, treasury, or other depositary, fails or refuses to account for
the same, or makes personal use of such funds or property, or of
any part thereof, or abstracts or misappropriates the same, or any
part thereof, or is guilty of any malversation with reference to such
funds or property, or through his abandonment, fault, or negligence
permits any other person to abstract, misappropriate, or make
personal use of the same, shall, upon conviction, be punished by
imprisonment for not less than two months nor more than ten years
and, in the discretion of the court, by a fine of not more than the
amount of such funds and the value of such property.
SEC. 2. In all prosecutions for violations of the preceding

section, the absence of any of the public funds or property of which
any person described in said section has charge, and any failure
44
or inability of such person to produce all the funds and property

properly in his charge on the demand of any officer authorized to
examine or inspect such person, office, treasury, or depositary shall
be deemed to be prima facie evidence that such missing funds or
property have been put to personal uses or used for personal ends by
such person within the meaning of the preceding section.
SEC. 3. Every person convicted of a violation of this Act shall

ipso facto be forever disqualified from holding any public office or
employment of any nature whatever within the Philippine Islands.
SEC. 4. Articles three hundred and ninety, three hundred

and ninety-one, and three hundred and ninety-two of the Penal Code
of the Philippine Islands, in so far as the same may be in conflict
with this Act, are hereby to that extent only repealed.

45
ACT NO. 1980
AN ACT TO PROVIDE FOR THE CREATION OF A COMMISSIONED

AND ENLISTED SERVICE WITHIN THE BUREAU
OF NAVIGATION, THE CREATION OF A PENSION
FUND IN CONNECTION THEREWITH, AND FOR THE
PUNISHMENT OF OFFENSES AGAINST GOOD ORDER
AND DISCIPLINE WITHIN SUCH SERVICE

Legislature, that;
SECTION 1. The Director of Navigation shall appoint the

necessary petty officers and crews for the proper maintenance and
operation of all Vessels belonging to or under the charge of the
Bureau of Navigation, and the necessary officers, light keepers and
apprentices for the proper performance of the light-house service
in the Philippine Islands, subject to such rules, regulations, and
examination as the Director of Navigation, subject to the approval
of the Secretary of Commerce and Police, may prescribe.
Captains, first lieutenants, second lieutenants, and third

lieutenants, Bureau of Navigation, shall be recommended by
the Director of Navigation, with the approval of the Secretary of
Commerce and Police, and appointed and commissioned by the
Governor-General, by and with advice and consent of the Philippine
Commission, and they shall perform such duties as may be assigned
to them by the Director of Navigation: Provided, However, That
no officer shall be commissioned who is not a citizen of the United
States or of the Philippine Islands and who has not taken oath of
allegiance to the United States.
XXX
SEC. 4. Each officer, enlisted man, light keeper, and

light-house apprentice of the Bureau of Navigation shall, before
entering upon the duties of his office or position, make and subscribe
the following oath:
46
“I ________________________, having been appointed as

_____________ in the Bureau of Navigation, do solemnly swear (or
affirm) that I am a citizen of _____________, that I recognize and
accept the supreme authority of the United States of America in
the Philippine Islands, and will maintain true faith and allegiance
thereto; that I will obey the laws, legal orders, and decrees
promulgated by its duly constituted authorities; that I impose upon
himself these obligations voluntarily, without mental reservation or
purpose of evasion; and that I will well and faithfully discharge the
duties of the office upon which I am about to enter; so help me God.
(The last four words to be stricken out in case of affirmation).
“___________________________
(Signature of officer or member)
“Subscribed and sworn to (or affirmed) before me this

_________day of _______ 19____”
The oath may be taken before any judge, justice of the peace,
notary public, or other officer authorized to administer oaths, and
when taken shall be filed in the office of the Bureau of Navigation.
XXX
SEC. 9. Any officer, enlisted man, light keeper, or apprentice

of the Bureau of Navigation —
(a) Who participates in, incites, or encourages any mutinous

uprising, or begins, incites, causes, or joins in any mutiny,
opposition or resistance to, or defiance of, any superior authority in
said Bureau with intent to usurp, subvert, or override the same, or
who, being present, does not use his utmost endeavors to suppress
all such mutiny, opposition, resistance, or defiance, or who, having
knowledge of any such mutiny, opposition, resistance, or defiance
being intended, does not without delay give information thereof
to such superior authority, shall, upon conviction, be punished by
a fine not exceeding five thousand pesos, or by imprisonment not
exceeding two years, or by both such fine and imprisonment in the
discretion of the court.
47
(b) Who willfully disobeys the lawful command of his superior

officer shall, upon conviction, be punished by a fine not exceeding
one thousand pesos, or by imprisonment not exceeding one year, or
by both such fine and imprisonment in the discretion of the court.
(c) Who, being duly enlisted therein, absents himself from

duty without leave and with intent not to return, or advises or
persuades others to do the like, shall, upon conviction, be punished
by a fine not exceeding one thousand pesos, or by imprisonment not
exceeding one year, or by both such fine and imprisonment in the
(d) Who misbehaves himself before any outlaw, robber,

pirate, or other enemy, shamefully abandons his ship or light
station, or advises or persuades others to do the like, or quits his
post to plunder or pillage, shall, upon conviction be punished by
a fine not exceeding two thousand pesos, or by imprisonment not
exceeding one year, or by both such fine and imprisonment in the
SEC. 10. Any petty officer, enlisted man, light keeper, or

apprentice, who willfully, or through neglect, wastes, loses, or
spoils property put, in his charge, his clothing, or accounterments,
or behaves himself with, disrespect toward his superior officer,
or advises or persuades any other enlisted man, light keeper, or
apprentice to be disrespectful to his superior officer, or hires
another to do his duty for him, or is found drunk on duty, or advises
or persuades any other petty officer, enlisted man, light keeper, or
apprentice to desert from his ship or light station, or is guilty of
any petty offense, disorder, or neglect to the prejudice of good order
and discipline not hereinbefore mentioned, shall be punished as the
summary court hereinbefore provided for shall direct, subject to the
provisions and limitations hereinafter contained.
SEC. 11. For the purpose of carrying out the provisions of

section ten hereof, the Director of Navigation, the Assistant Director
of Navigation, the Second Assistant Director of Navigation, and
the Marine Superintendent of the Bureau of Navigation are each
48
hereby designated as summary court officers before any one of whom

offenders under the provisions of section ten hereof shall be brought
to trial within twenty-four hours of the time of their arrest or as
soon “thereafter as is practicable, and the officer holding a summary
court shall have the power to administer oaths, and to hear and
determine such cases and, when satisfied of the guilt of the accused,
adjudge the punishment to be inflicted as hereinafter provided. ,No
petty officer, enlisted man, light keeper, or apprentice, shall while
awaiting trial, be confined with prisoners who are not also petty
officers, enlisted men, light keepers, or apprentices, nor at all unless
such confinement be absolutely necessary as a measure of restraint;
and no petty officer or light keeper shall be sentenced to confinement
except when he is also sentenced to reduction to a lower grade. No
petty officer or light keeper reduced to a lower grade by sentence
of the summary court shall be again advanced within six months
from the date of such sentence. When the accused is sentenced to
a forfeiture of pay, the sentence may provide for the deduction of
the amount of the forfeiture in equal monthly installments, during
a period of not exceeding six months after the date of the sentence.
The summary court shall keep a record in which shall be entered all
cases heard and determined and the action had thereon.
Upon the first conviction the maximum penalties for the

offenses described shall be as stated in the following schedule:
Losing or spoiling : Five days confinement and

accouterments or reimbursement of the value of
clothing through the accouterments or clothing
neglect. lost; for petty officers and light
keepers, reduction in grade in
addition thereto.
Absence without leave: : Forfeiture of one peso and fifty
(a) One hour or less centavos for petty officers and
light keepers; enlisted men
and apprentices one peso.
49
(b) For more than one to : Forfeiture of three pesos for petty
six hours, inclusive. officers and light keepers;
enlisted men and apprentices
two pesos.
(c) For more than six to : Forfeiture of six pesos for petty
twelve hours, officers and light keepers;
inclusive. enlisted men and apprentices
four pesos.
(d) For more than twelve : Forfeiture of ten pesos for petty
to twenty-four hours, officers and light keepers;
inclusive. enlisted men and apprentices
eight pesos.
(e) For more than twenty- : Forfeiture of fifteen pesos and
four to forty-eight confinement at hard labor for
hours, inclusive. five days or reduction in
grade, for petty, officers and
and apprentices ten pesos and
confinement at hard labor for
five days.
(f) For more than two to : Forfeiture of twenty pesos and
ten days, inclusive. confinement at hard labor for
ten days and reduction in
grade, for petty officers and
and apprentices ten days at
hard labor.
(g) For more than ten to : Forfeiture of all pay and one
thirty days, month’s confinement at hard
inclusive. labor.
Using threatening or : One month’s confinement at hard
insulting language labor and forfeiture of fifteen
or behaving in an pesos; for petty officers and
insubordinate manner light keepers reduction in
to a superior officer grade in addition thereto.
while in execution of
his duties.
50
Found drunk on duty...... : Forfeiture of fifteen pesos for

enlisted men and apprentices;
for petty officers and light
keepers, forfeiture of
twenty pesos and reduction
in grade in addition thereto.
Noisy or disorderly conduct : Forfeiture of ten pesos for petty
aboard ship, or at light officers and light keepers;
station. enlisted men and apprentices
five pesos.
Drunk and disorderly : Forfeiture of ten pesos and
aboard ship, or at light reduction in grade for petty
station, but not on officers and light keepers;
duty. enlisted men and apprentices,
forfeiture of five pesos, or
confinement at hard labor for
five days, or both.
Petty officers, light : Reduction in grade and forfeiture
keepers, enlisted of five pesos for petty officers
men, or apprentices and light keepers; enlisted
gambling or encouraging men and apprentices, forfeiture
gambling. of five peso
Encouraging another to : Forfeiture of fifteen pesos and
behave a disrespectful reduction in grade for petty
manner to a superior officers and light keepers;
officer, or encouraging enlisted men and apprentices,
another to desert or forfeiture of ten pesos or
to commit any petty confinement at hard labor for
offense. ten days, or both.
Any offense created by this Act for which a specific penalty

is not provided shall be punished by forfeiture of not more than one
month’s pay or by imprisonment at hard labor for not more than one
month, or both, in the discretion of the court.
Upon a second conviction for any one of the above-described

offenses within six months the penalty may be increased to twice that
51
provided in the foregoing schedule, and upon a third conviction for

any offense within the term of enlistment, in addition to the penalty
prescribed for a second offense, the offender may be dishonorably
discharged.
SEC. 12. All forfeitures imposed in accordance with the

last preceding section shall be deposited with the Treasurer of the
Philippine Islands, and shall be added to the fund created by section
seven of this Act and used for the purposes therein provided. All
expenditures made from such fund shall be audited by the Insular
Auditor.
SEC. 13. The rules contained in the “Manual for Courts-

martial, and so forth,” for use in the United States Navy, published
by the Secretary of the Navy, in so far as such rules relate to
procedure, forms of charges, previous convictions, records, reports,
sentences, and approvals, shall be observed by the summary court
provided by section eleven, in so far as said rules are applicable and
not inconsistent with the provisions of this Act.
SEC. 14. Pending investigation of a charge of crime or conduct

un becoming an officer or gentleman or prejudicial to good order
and discipline in the service, the Director of Navigation, Assistant
Director of Navigation, Second Assistant Director of Navigation and
Marine Superintendent, or any captain in the Bureau of Navigation,
may arrest and confine in his quarters on board any vessel or at any
light station any subordinate officer, or, pending investigation of the
charge and action thereon, may arrest and confine, for not exceeding
ten days, any enlisted man, light keeper, or apprentice charged with
crime of conduct prejudicial to good order and discipline. Any petty
officer, enlisted man, light keeper, or light-house apprentice of the
Bureau of Navigation charged with crime or with any offense under
this Act may be arrested and temporarily confined by any superior
authority of the Bureau of Navigation until delivered to the proper
executive or judicial officials having jurisdiction over such crime
or offense, or until tried, when the offense is punishable by the
summary court provided in this Act. Such arrest and confinement
shall be without warrant.
52
SEC. 15. All Acts or parts of Acts inconsistent with the

provisions of this Act are hereby repealed: Provided, That if any of
the crimes herein enumerated are punishable under the provisions
of the Penal Code by higher penalties than those herein provided,
the provisions of the Penal Code shall prevail.
ENACTED, April 19, 1910.
Annotations: Repealed by Act. No. 2346.
53
ACT NO. 3192
AN ACT TO AMEND AND REPEAL CERTAIN PROVISIONS OF

THE ACT CREATING A PUBLIC UTILITY COMMISSION,
Be it enacted by the Senate and House of Representatives of the

Philippines in Legislature assembled and by the authority
of the same:
SECTION 1. Section one of Act Numbered Thirty-one

hundred and eight is hereby amended by adding at the end of
said section the following words: “and shall have the rank and all
prerogatives and privileges of judges of Courts of First Instance and
shall belong to the Judiciary of the Philippine Islands.”
SEC. 2. The last sentence of section two of Act Numbered

Thirty-one hundred and eight is hereby repealed and the following
inserted in its stead: “The Public Utility Commissioner and the
Assistant Public Utility Commissioner may be removed from the
office for the following reasons and no others: for physical incapacity,
misconduct, incompetency, negligence and irregularity in the
performance of their duties, or any act constituting a misdemeanor,
in accordance with the procedure prescribed by section one hundred
and seventy-three of Act Numbered Twenty-seven hundred and
seventy-three of Act Numbered Twenty-seven hundred and eleven,
known as the Administrative Code.”
SEC. 3. Section ten of Act Numbered Thirty-one hundred

and eight is hereby amended by adding to said section a new proviso
to read as follows: “Provided, That during the months of May and
June of each year, only one of the Public Utility Commissioner shall
be on duty and the other shall be on vacation, in such manner that
the Public Utility Commissioner shall be on duty as Commissioner
during the vacation months in even years and the Assistant Public
Utility Commissioner shall be on duty as Commissioner during
the vacation months in odd years: Provided, further, That nothing
hereinbefore provided shall prevent either of the Public Utility
54
Commissioners from rendering service and remaining on duty

during the vacation months when the interest of the public service
requires it: Provided, finally, That the foregoing provisions shall
not prevent the Public Utility Commissioners from the enjoyment
of accrued leave privileges in the manner prescribed for judges of
Courts of First Instance.”
SEC. 4. Section twenty-three of Act Numbered Thirty-one

hundred and eight is hereby amended by adding at the end thereof
the following proviso: “Provided, That either of the Public Utility
Commissioners may summarily punish for contempt, by a fine
not to exceed two hundred pesos or imprisonment not exceed ten
days, or both, any person guilty of misconduct in the presence of
the Commission or Commissioner or so near them as to interrupt
the hearing or sessions or any other proceedings of a Public Utility
Commissioner, including refusal by any person present at a trial,
session or investigation conducted by either of the Commissioners
to be sworn as a witness or answer as such when legally requested
to do so.”
SEC. 5. This Act shall take effect on its approval.
APPROVED, November 29, 1924.
55
ACT NO. 3815
AN ACT REVISING THE PENAL CODE AND OTHER PENAL

LAWS

Philippines in Legislature assembled and by the authority
of the same:
PRELIMINARY ARTICLE. – This law shall be known as

“The Revised Penal Code.”
XXX XXX XXX
BOOK TWO
CRIMES AND PENALTIES
TITLE TWO
CRIMES AGAINST THE

FUNDAMENTAL LAWS OF THE STATE
Chapter One
ARBITRARY DETENTION OR EXPULSION, VIOLATION

OF DWELLING, PROHIBITION, INTERRUPTION, AND
DISSOLUTION OF PEACEFUL MEETINGS AND CRIMES
AGAINST RELIGIOUS WORSHIP
Section One. – Arbitrary detention and expulsion
ART. 124. Arbitrary detention. – Any public officer or employee

who, without legal grounds, detains a person, shall suffer:
The penalty of arresto mayor in its maximum period to

prision correccional in its minimum period, if the detention has not
exceeded three days;
56
The penalty of prision correccional in its medium and

maximum periods, if the detention has continued more than three
but not more than fifteen days;
The penalty of prision mayor, if the detention has continued

for more than fifteen days but not more than six months; and
That of reclusion temporal, if the detention shall have

exceeded six months.
The commission of a crime, or violent insanity or any other

ailment requiring the compulsory confinement of the patient in a
hospital, shall be considered legal grounds for the detention of any
person.
ART. 125. Delay in the delivery of detained persons to the

proper judicial authorities. – The penalties provided in the next
preceeding article shall be imposed upon the public officer or
employee who shall detain any person for some legal ground and
shall fail to deliver such person to the proper judicial authorities
within the period of twelve (12) hours, for crimes or offenses
punishable by light penalties or their equivalent; eighteen (18)
hours, for crimes or offenses punishable by correctional penalties,
or their equivalent; and thirty-six (36) hours, for crimes or offenses
punishable by afflictive or capital penalties, or their equivalent.
In every case, the person detained shall be informed of the

cause of his detention and shall be allowed, upon his request, to
communicate and confer at any time with his attorney or counsel.
ART. 126. Delaying release. – The penalties provided for in

article 124 shall be imposed upon any public officer or employee
who delays for the period of time specified therein the performance
of any judicial or executive order for the release of a prisoner or
detention prisoner, or unduly delays the service of the notice of such
order to said prisoner or the proceedings upon any petition for the
liberation of such person.
57
ART. 127. Expulsion. – The penalty of prision correctional

shall be imposed upon any public officer or employee who, not
being thereunto authorized by law, shall expel any person from
the Philippine Islands or shall compel such person to change his
residence.
Section Two. – Violation of domicile
ART 128. Violation of domicile. – The penalty of prision

correccional in its minimum period shall be imposed upon any public
officer or employee who, not being authorized by judicial order, shall
enter any dwelling against the will of the owner thereof, search
papers or other effects found therein without the previous consent
of such owner, or, having surreptitiously entered said dwelling, and
being required to leave the premises, shall refuse to do so.
If the offense be committed in the night-time, or if any

papers or effects not constituting evidence of a crime be not returned
immediately after the search made by the offender, the penalty shall
be prision correccional in its medium and maximum periods.
ART. 129. Search warrants maliciously obtained and abuse

in the service of those legally obtained. – In addition to the liability
attaching to the offender for the commission of any other offense, the
penalty of arresto mayor in its maximum period to prision correccional
in its minimum period and a fine not exceeding P1,000.00 pesos shall
be imposed upon any public officer or employee who shall procure
a search warrant without just cause, or, having legally procured
the same, shall exceed his authority or use unnecessary severity in
executing the same.
ART. 130. Searching domicile without witnesses. – The

penalty of arresto mayor in its medium and maximum periods
shall be imposed upon a public officer or employee who, in cases
where a search is proper, shall search the domicile, papers or other
belongings of any person, in the absence of the latter, any member of
his family, or in their default, without the presence of two witnesses
residing in the same locality.
58
XXX XXX XXX
Section Three. – Prohibition, interruption, and

dissolution of peaceful meetings
ART. 132. Interruption of religious worship. – The penalty

of prision correccional in its minimum period shall be imposed
upon any public officer or employee who shall prevent or disturb the
ceremonies or manifestations of any religion.
If the crime shall have been committed with violence or

threats, the penalty shall be prision correccional in its medium and
maximum periods.
ART. 133. Offending the religious feelings. – The penalty

of arresto mayor in its maximum period to prision correccional in
its minimum period shall be imposed upon anyone who, in a place
devoted to a religious worship or during the celebration of any
religious ceremony shall perform acts notoriously offensive to the
feelings of the faithful.
XXX XXX XXX
TITLE SEVEN
CRIMES COMMITTED BY PUBLIC OFFICERS
Chapter One
PRELIMINARY PROVISIONS
ART. 203. Who are public officers. – For the purpose of

applying the provisions of this and the preceding titles of this book,
any person who, by direct provision of the law, popular election
or appointment by competent authority, shall take part in the
performance of public functions in the Government of the Philippine
Islands, or shall perform in said Government or in any of its branches
public duties as an employee, agent or subordinate official, of any
rank or class, shall be deemed to be a public officer.
59
Chapter Two
MALFEASANCE AND MISFEASANCE IN OFFICE
Section One. – Dereliction of Duty
ART. 204. Knowingly rendering unjust judgment. – Any

judge who shall knowingly render an unjust judgment in any case
submitted to him for decision, shall be punished by prision mayor
and perpetual absolute disqualification.
ART. 205. Judgment rendered through negligence.—Any

judge who, by reason of inexcusable negligence or ignorance, shall
render a manifestly unjust judgment in any case submitted to him
for decision shall be punished by arresto mayor and temporary
special disqualification.
ART. 206. Unjust interlocutory order. – Any judge who shall

knowingly render an unjust interlocutory order or decree shall suffer
the penalty of arresto mayor in its minimum period and suspension;
but if he shall have acted by reason of inexcusable negligence or
ignorance and the interlocutory order or decree be manifestly unjust,
the penalty shall be suspension.
ART. 207. Malicious delay in the administration of justice.

– The penalty of prision correccional in its minimum period
shall be imposed upon any judge guilty of malicious delay in the
administration of justice.
ART. 208. Prosecution of offenses, negligence and tolerance.

– The penalty of prision correccional in its minimum period and
suspension shall be imposed upon any public officer, or officer of the
law, who, in dereliction of the duties of his office, shall maliciously
refrain from instituting prosecution for the punishment of violators
of the law, or shall tolerate the commission of offenses.
ART. 209. Betrayal of trust by an attorney or solicitor. –

Revelation of secrets. – In addition to the proper administrative
60
action, the penalty of prision correccional in its minimum period, or

a fine ranging from P200 to P1,000 pesos or both, shall be imposed
upon any attorney-at-law or solicitor (procurador judicial) who by
any malicious breach of professional duty or inexcusable negligence
or ignorance, shall prejudice his client, or reveal any of the secrets
of the latter learned by him in his professional capacity.
The same penalty shall be imposed upon an attorney-at-

law or solicitor (procurador judicial), who, having undertaken the
defense of a client or having received confidential information from
said client in a case, shall undertake the defense of the opposing
party in the same case, without the consent of his first client.
Section Two. – Bribery
ART. 210. Direct bribery. – Any public officer who shall

agree to perform an act constituting a crime, in connection with
the performance of his official duties, in consideration of any offer,
promise, gift or present received by such officer, personally or
through the mediation of another, shall suffer the penalty of prision
mayor in its medium and minimum periods and a fine of not less
than three times the value of the gift, in addition to the penalty
corresponding to the crime agreed upon, if the same shall have been
committed.
If the gift was accepted by the officer in consideration

of the execution of an act which does not constitute a crime, and
the officer executed said act, he shall suffer the same penalty
provided in the preceding paragraph; and if said act shall not have
been accomplished, the officer shall suffer the penalties of prision
correccional in its medium period and a fine of not less than twice
the value of such gift.
If the object for which the gift was received or promised was
to make the public officer refrain from doing something which it
was his official duty to do, he shall suffer the penalties of prision
correccional in its maximum period to prision mayor in its minimum
period and a fine of not less than three times the value of such gift.
61
In addition to the penalties provided in the preceding

paragraphs, the culprit shall suffer the penalty of special temporary
disqualification.
The provisions contained in the preceding paragraphs shall

be made applicable to assessors, arbitrators, appraisal and claim
commissioners, experts or any other persons performing public
duties.
ART. 211. Indirect bribery, -- the penalties of prision

correccional in its medium and maximum periods, suspension and
public censure shall be imposed upon an public officer who shall
accept gifts offered to him by reason of his office.
ART. 212. Corruption of public officials. – The same penalties

imposed upon the officer corrupted, except those of disqualification
and suspension, shall be imposed upon any person who shall have
made the offers or promises or given the gifts or presents as described
in the preceeding articles.
Chapter Three
FRAUDS AND ILLEGAL EXACTIONS

AND TRANSACTIONS
ART. 213. Frauds against the pubic treasury and similar

offenses. – The penalty of prision correccional in its medium period
to prision mayor in its minimum period, or a fine ranging from P200
to 10,000 pesos, or both, shall be imposed upon any pubic officer
who:
In his official capacity, in dealing with any person with regard

to furnishing supplies, the making of contracts, or the adjustment
or settlement of accounts relating to public property or funds shall
enter into an agreement with any interested party or speculator or
make use of any other scheme, to defraud the Government;
62
Being entrusted with the collection of taxes, licenses, fees

and other imposts, shall be guilty of any of the following acts or
omissions:
Demanding, directly or indirectly, the payment of sums

different from or larger than those authorized by law.
Failing voluntarily to issue a receipt, as provided by law, for

any sum of money collected by him officially.
Collecting or receiving, directly or indirectly, by way of

payment or otherwise, things or objects of a nature different from
that provided by law.
When the culprit is an officer or employee of the Bureau of

Internal Revenue or the Bureau of Customs, the provisions of the
Administrative Code shall be applied.
ART. 214. Other frauds. – In addition to the penalties

prescribed in the provisions of Chapter Six, Title Ten, Book Two,
of this Code, the penalty of temporary special disqualification in
its maximum period to perpetual special disqualification shall be
imposed upon any public officer who, taking advantage of his official
position, shall commit any of the frauds or deceits enumerated in
said provisions.
ART. 215. Prohibited transactions. – The penalty of prision

correccional in its minimum period or a fine ranging from P200 to
P1,000 pesos, or both, shall be imposed upon any appointive public
officer who, during his incumbency, shall directly or indirectly
become interested in any transaction of exchange or speculation
within the territory subject to his jurisdiction.
ART. 216. Possession of prohibited interest by a public officer.

– The penalty of arresto mayor in its minimum period to prision
correccional in its minimum period, or a fine ranging from P200 to
P1,000 pesos, or both, shall be imposed upon a public officer who
directly or indirectly, shall be come interested in any contract or
business which it is his official duty to intervene.
63
This provision is applicable to experts, arbitrators and private

accountants who, in like manner, shall take part in any contract or
transaction connected with the estate or property in the appraisal,
distribution or adjudication of which they shall have acted, and to
the guardians and executors with respect to the property belonging
to their wards or estate.
Chapter Four
MALVERSATION OF PUBLIC FUNDS OR PROPERTY
ART. 217. Malversation of public funds or property. –

Presumption of malversation. – Any public officer who, by reason of
the duties of his office, is accountable for public funds or property,
shall appropriate the same, or shall take or misappropriate or
shall consent, or through abandonment or negligence, shall permit
any other person to take such public funds or property, wholly or
partially, or shall otherwise be guilty of the misappropriation of
malversation of such funds or property, shall suffer:
The penalty of prision correccional in its medium and

maximum periods, if the amount involved in the misappropriation
or malversation does not exceed two hundred pesos.
The penalty of prision mayor in its minimum and medium

periods, if the amount involved is more than two hundred pesos but
does not exceed six thousand pesos.
The penalty of prision mayor in its maximum period to

reclusion temporal in its minimum period, if the amount involved
is more than six thousand pesos but is less than twelve thousand
pesos.
The penalty of reclusion temporal in its medium and

maximum periods, if the amount involved is more than twelve
thousand pesos but is less than twenty-two thousand pesos. If the
amount exceeds the latter, the penalty shall be reclusion temporal
in its maximum period to reclusion perpetua.
64
In all cases, persons guilty of malversation shall also suffer

the penalty of perpetual special disqualification and a fine equal to
the amount of the funds malversed or equal to the total value of the
property embezzled.
The failure of a public officer to have duly forthcoming any

public funds or property with which he is chargeable, upon demand
by any duly authorized officer shall be prima facie evidence that he
has put such missing funds or property to personal uses.
ART. 218. Failure of accountable officer to render accounts. –

Any public officer, whether in the service or separated therefrom by
resignation or any other cause, who is required by law or regulation
to render account to the Insular Auditor1, or to a provincial auditor
and who fails to do so for a period of two months after such accounts
should be rendered, shall be punished by prision correccional in its
minimum period, or by a fine ranging from P200 to P6,000 pesos, or
both.
ART. 219. Failure of a responsible public officer to render

accounts before leaving the country. – Any pubic officer who unlawfully
leaves or attempts to leave the Philippine Islands without securing a
certificate from the Insular auditor showing that his accounts have
been finally settled, shall be punished by arresto mayor, or a fine
ranging from P200 to P1,000 pesos, or both.
ART. 220. Illegal use of public funds or property. – Any

public officer who shall apply any public fund or property under
his administration to any public use other than that for which
such fund or property were appropriated by law or ordinance
shall suffer the penalty of prision correccional in its minimum
period or a fine ranging from one-half to the total value of the
sum misapplied, if by reason of such misapplication, any damage
or embarrassment shall have resulted to the public service. In
1
Now Commission on Audit.
65
either case, the offender shall also suffer the penalty of temporary
If no damage or embarrassment to the public service has

resulted, the penalty shall be a fine from 5 to 50 percent of the sum
misapplied.
ART. 221. Failure to make delivery of public funds or

property. – Any pubic officer under obligation to make payment from
Government funds in his possession, who shall fail to make such
payment. Shall be punished by arresto mayor and a fine from 5 to
24 percent of the sum which he failed to pay.
This provision shall apply to any public officer who, being

ordered by competent authority to deliver any property in his custody
or under his administration, shall refuse to make such delivery.
The fine shall be graduated in such case by the value of the

thing, provided that it shall not be less than P50 pesos.
ART. 222. Officers included in the preceding provisions. –

The provisions of this chapter shall apply to private individuals who,
in any capacity whatever, have charge of any insular, provincial or
municipal funds, revenues, or property attached, seized or deposited
by public authority, even if such property belongs to a private
individual.
Chapter Five
INFIDELITY OF PUBLIC OFFICERS
Section One. – Infidelity in the custody of prisoners
ART. 223. Conniving with or consenting to evasion. – Any

public officer who shall consent to the escape of a prisoner in his
custody or charge, shall be punished:
66
By prision correccional in its medium and maximum periods

and temporary special disqualification in its maximum period to
perpetual special disqualification, if the fugitive shall have been
sentenced by final judgment to any penalty.
By prision correccional in its minimum period and temporary

special disqualification, in case the fugitive shall have been finally
convicted but only held as a detention prisoner for any crime or
violation of law or municipal ordinance.
ART. 224. Evasion through negligence. – If the evasion of

the prisoner shall have taken place through the negligence of the
officer charged with the conveyance or custody of the escaping
prisoner, said officer shall suffer the penalties of arresto mayor in
its maximum period to prision correccional in its minimum period
and temporary special disqualification.
ART. 225. Escape of prisoner under the custody of a person

not a public officer. – Any private person to whom the conveyance
or custody of a prisoner or person under arrest shall have been
confided who shall commit any of the offenses mentioned in the two
preceding articles, shall suffer the penalty next lower in degree than
that prescribed for public officer.
Section Two. – Infidelity in the custody of documents
ART. 226. Removal, concealment or destruction of documents.

– Any public officer who shall remove, destroy or conceal documents
or papers officially entrusted to him, shall suffer:
The penalty of prision mayor and a fine not exceeding P1,000

pesos, whenever serious damage shall have been caused thereby to
a third party or to the public interest.
The penalty of prision correccional in its minimum and

medium periods and a fine not exceeding P1,000.00 pesos, whenever
the damage caused to a third party or the public interest shall not
have been serious.
67
In either case, the additional penalty of temporary special

disqualification in its maximum period to perpetual special
disqualification shall be imposed.
ART. 227. Officer breaking seal. – Any public officer charged

with the custody of papers or property sealed by proper authority,
who shall break the seals or permit them to be broken, shall suffer
the penalties of prision correccional in its minimum and medium
periods, temporary special disqualification and a fine not exceeding
P2,000 pesos.
ART. 228. Opening of closed documents. – Any public officer

not included in the provision of the next preceding article who,
without proper authority, shall open or shall permit to be opened
any closed papers, documents or objects entrusted to his custody,
shall suffer the penalties of arresto mayor, temporary special
disqualification and a fine not exceeding P2,000 pesos.
Section Three. – Revelation of secrets
ART. 229. Revelation of secrets by an officer. – Any public

officer who shall reveal any secret known to him by reason of his
official capacity, or shall wrongfully deliver papers or copies of papers
of which he may have charge and which should not be published,
shall suffer the penalties of prision correccional in its medium and
maximum periods, perpetual special disqualification and a fine
not exceeding P2,000 pesos if the revelation of such secrets or the
delivery of such papers shall have caused serious damage to the
public interest; otherwise, the penalties of prision correccional in
its minimum period, temporary special disqualification and a fine
not exceeding P500 pesos shall be imposed.
ART. 230. Public officer revealing secrets of private individual.

– Any public officer to whom the secrets of any private individual
shall become known by reason of his office who shall reveal such
secrets, shall suffer the penalties of arresto mayor and a fine not
exceeding P1,000 pesos
68
Chapter Six
OTHER OFFENSES OR IRREGULARITIES

BY PUBLIC OFFICERS
Section One. – Disobedience, refusal of assistance

And maltreatment of prisoners
ART. 231. Open disobedience. – Any judicial or executive

officer who shall openly refuse to execute the judgment, decision
or order of any superior authority made within the scope of the
jurisdiction of the latter and issued with all the legal formalities,
shall suffer the penalties of arresto mayor in its medium period
to prision correccional in its minimum period, temporary special
disqualification in its maximum period and a fine not exceeding
P1,000 pesos.
ART. 232. Disobedience to order of superior officer, when

said order was suspended by inferior officer. – Any public officer
who having for any reason suspended the execution of the orders
of his superiors, shall disobey such superiors after the latter have
disapproved the suspension, shall suffer the penalties of prision
correccional in its minimum and medium periods and perpetual
ART. 233. Refusal of assistance. – The penalties of arresto

mayor in its medium period to prision correccional in its minimum
period, perpetual special disqualification and a fine not exceeding
P1,000 pesos, shall be imposed upon a public officer who, upon
demand from competent authority, shall fail to lend his cooperation
towards the administration of justice or other public service, if such
failure shall result in serious damage to the public interest, or to a
third party; otherwise, arresto mayor in its medium and maximum
periods and a fine not exceeding P500 pesos shall be imposed.
ART. 234. Refusal to discharge elective office. – The penalty

of arresto mayor or a fine not exceeding P1,000 pesos, or both, shall
be imposed upon any person who, having been elected by popular
69
election to a public office, shall refuse without legal motive to be

sworn in or to discharge the duties of said office.
ART 235. Maltreatment of prisoners. – The penalty of

prision correccional in its medium period to prision mayor in its
minimum period, in addition to his liability for the physical injuries
or damage caused, shall be imposed upon any public officer or
employee who shall overdo himself in the correction or handling of
a prisoner or detention prisoner under his charge, by the imposition
of punishments not authorized by the regulations, or by inflicting
such punishments in a cruel and humiliating manner.
If the purpose of the maltreatment is to extort a confession,

or to obtain some information from the prisoner, the offender shall
be punished by prision mayor in its minimum period, temporary
absolute disqualification and a fine not exceeding P6,000 pesos, in
addition to his liability for the physical injuries or damage caused.
Section Two. – Anticipation, prolongation and abandonment

of duties and powers of public office
ART. 236. Anticipation of duties of a public office. – Any

person who shall assume the performance of the duties and powers
of any public office or employment without first being sworn in or
having given the bond required by law, shall be suspended from such
office or employment until he shall have complied with respective
formalities and shall be fined from P200 to P500 pesos.
ART. 237. Prolonging performance of duties and powers.

– Any public officer who shall continue to exercise the duties and
powers of his office, employment or commission, beyond the period
provided by law, regulations or special provisions applicable to the
case, shall suffer the penalties of prision correccional in its minimum
period, special temporary disqualification in its minimum period
and a fine not exceeding P500 pesos.
ART. 238. Abandonment of office or position. – Any pubic

officer who, before the acceptance of his resignation, shall abandon
70
his office to the detriment of the public service shall suffer the
penalty of arresto mayor.
If such office shall have been abandoned in order to evade

the discharge of the duties of preventing, prosecuting or punishing
any of the crimes falling with Title One, and Chapter One of Title
Three of Book Two of this Code, the offender shall be punished by
prision correccional in its minimum and medium periods, and by
arresto mayor if the purpose of such abandonment is to evade the
duty of preventing, prosecuting or punishing any other crime.
Section Three. – Usurpation of powers and

Unlawful appointments
ART. 239. Usurpation of legislative powers. – The penalties

of prision correccional in its minimum period, temporary special
disqualification and a fine not exceeding P1,000 pesos, shall be
imposed upon any public officer who shall encroach upon the powers
of the legislative branch of the Government, either by making
general rules or regulations beyond the scope of his authority, or by
attempting to repeal a law or suspending the execution thereof.
ART. 240. Usurpation of executive functions. – Any judge

who shall assume any power pertaining to the executive authorities,
or shall obstruct the latter in the lawful exercise of their powers,
shall suffer the penalty of arresto mayor in its medium period to
prision correccional in its minimum period.
ART. 241. Usurpation of judicial functions. – The penalty

of arresto mayor in its medium period to prision correccional in its
minimum period shall be imposed upon any officer of the executive
branch of the Government who shall assume judicial powers or
shall obstruct the execution of any order or decision rendered by
any judge within his jurisdiction.
ART. 242. Disobeying request for disqualification. – Any

public officer who, before the question of jurisdiction is decided,
shall continue any proceeding after having been lawfully required
71
to refrain from so doing, shall be punished by arresto mayor and a

fine not exceeding P500 pesos.
ART. 243. Orders or requests by executive officers to any

judicial authority. – Any executive officer who shall address any
order or suggestion to any judicial authority with respect to any
case or business coming within the exclusive jurisdiction of the
courts of justice shall suffer the penalty of arresto mayor and a fine
not exceeding P500 pesos.
ART. 244. Unlawful appointments. –Any public officer who

shall knowingly nominate or appoint to any public office any person
lacking the legal qualification therefor, shall suffer the penalty of
arresto mayor and a fine not exceeding P1,000 pesos.
Section Four. – Abuses against chastity
ART. 245. Abuses against chastity – Penalties. – The penalties

of prision correccional in its medium and maximum periods and
temporary special disqualification shall be imposed:
Upon any public officer who shall solicit or make immoral or
indecent advances to a woman interested in matters pending before
such officer for decision, or with respect to which he is required to
submit a report to or consult with a superior officer;
Any warden or other public officer directly charged with

the care and custody of prisoners or person under arrest who shall
solicit or make immoral or indecent advances to a woman under his
custody.
If the person solicited be the wife, daughter, sister or relative

within the same degree of affinity of any person in the custody of
such warden or officer, the penalties shall be prision correccional
in its minimum and medium periods and temporary special
disqualification.
XXX XXX XXX
72
TITLE FIFTEEN
FINAL PROVISIONS
ART. 366. Application of laws enacted prior to this Code. –

Without prejudice to the provisions contained in article 22 of this
Code, felonies and misdemeanors, committed prior to the date of
effectiveness of this Code shall be punished in accordance with the
Code or Acts in force at the time of their commission.
ART. 367. Repealing clause. – Except as is provided in the

next preceding article, the present Penal Code, the Provisional Law
for the application of its provisions, and Acts Nos. 277, 292, 480,
518, 519, 899, 1121, 1438, 1523, 1692, 1754, 1755, 1773, 2030, 2036,
2071, 2142, 2212, 2293, 2298, 2300, 2364,2549, 2557, 2595, 2609,
2712, 2718, 3104, 3195, 3244, 3298, 3309, 3313, 3397, 3559, and
3586, are hereby repealed.
The provisions of the Acts which are mentioned hereunder

are also repealed namely:
Act 666, sections 6 and 18.
Act 1508, sections 9,10,11, and 12.
Act 1524, section 4.
Act 1533, sections 1,2, and 6.
Act 1697, sections 3 and 4.
Act 1757, sections 1, 2, 3, 4, 5, 6, 7 (first clause), 11, and 12.
Act 2381, sections 2, 3, 4, 5, 6, 8, and 9.
Act 2711, sections 102, 2670, 2671, and 2672.
73
Act 3247, sections 1, 2, 3, and 5; and
General Orders, No. 58, series of 1900, section 106.
And all laws and parts of laws which are contrary to the
provisions of this code are hereby repealed.
APPROVED, December 8, 1930.
74
LEGISLATIVE
LEGISLATIVE
MEASURES
MEASURES
– COMMONWEALTH
– PUBLIC ACTS ACTS
COMMONWEALTH ACT NO. 320
AN ACT PRESCRIBING CERTAIN ADDITIONAL FUNCTIONS

OF THE GENERAL AUDITING OFFICE
Be it enacted by the National Assembly of the Philippines:
SECTION 1. The function of preparing and keeping

the accounts of the different departments, bureaus, offices and
dependencies of the National Government, including the Supreme
court, court of Appeals, and the University of the Philippines, and
such other duties as are incidental to the said function which by
law or otherwise were given to any other office, shall hereafter be
performed by the General Auditing Office. The authority of passing
upon requisitions or orders for supplies, materials, furniture and
equipment, and the function to operate and maintain the Salvage
Warehouse which are vested in the Commissioner of the Budget
are transferred to the General Auditing Office. All records, books,
supplies, equipment, and other property existing in the accounting
offices for the different branches of the Government at the time this
Act takes effect are also transferred to the General Auditing Office.
Such of said supplies and equipment as may not be needed

by the said office shall be transferred to the Salvage Warehouse
to be disposed of in accordance with regulations prescribed by
the President for disposal of unused and dormant supplies and
equipment.
SEC. 2. The President is authorized to transfer to the General

Auditing Office such parts of the personnel and appropriations that
are authorized for the accounting services of the National Government
at the time of the approval of this Act as may be necessary for the
operation and maintenance of the combined accounting and auditing
services for the departments, bureaus, offices, and dependencies of
the said Government; and to the Budget Commission such parts
of the said personnel and appropriations as may be necessary to
provide with an adequate personnel: Provided, That the President
may change the designation of any position so transferred and
75
consolidate any item of the transferred appropriations or any part

thereof with any item of appropriation authorized for the General
Auditing Office and the Budget Commission: And provided, further,
That the authority shall only be in force until December thirty-first,
nineteen hundred and thirty-eight.
The President may order the transfer of such employees

of the accounting and auditing offices as may be found in excess
of the needs of the combined accounting and auditing services,
and not needed by the Budget Commission, together with their
corresponding appropriations, to any other bureau or office of the
Government which may have actual need for them.
The service above transferred to the General Auditing Office

shall operate in suitable quarters to be furnished free of charge by
the corresponding departments, bureaus, offices and dependencies,
and shall be under the charge of officers appointed or designated by
the Auditor General.
SEC. 3. All positions authorized for the accounting and

auditing offices at the time of the approval of this Act, which may
not be transferred to the combined accounting and auditing services,
or to other bureaus and offices of the Government, until December
thirty-first, nineteen hundred and thirty-eight, shall be considered
abolished.
SEC. 4. The Auditor-General, in the performance of the

additional functions herein authorized, shall furnish the heads
of departments, bureaus, offices, and dependencies information
regarding appropriations, expenditures, and other financial data
pertaining to their respective departments, bureaus, offices and
dependencies. He shall also furnish the Commissioner of the Budget
such information and data pertaining to each department, bureau
or office of the National Government as may be requested by the
Budget Commission or the said Commissioner for the proper and
intelligent preparation of the annual and special budgets and for
the performance of their duties in connection with the fiscal affairs
of the National Government.
76
LEGISLATIVE
LEGISLATIVE
MEASURES
MEASURES
– COMMONWEALTH
SEC. 5. The provisions of this Act may, in the discretion of

the President, be made applicable to the provincial governments and
chartered cities, agencies, and to instrumentalities of the National
Government, including corporations owned or controlled by said
Government.
SEC. 6. This Act shall take effect on July first, nineteen

hundred and thirty-eight.
APPROVED, June 9, 1938.
77
AN ACT TRANSFERRING THE AUDIT OF THE BOOKS AND

ACCOUNTS OF PUBLIC SERVICES FROM THE PUBLIC
SERVIVCE COMMISSION TO THE GENERAL AUDITING
OFFICE AND PROVIDING FUNDS THEREFOR
SECTION 1. Hereafter the audit and examination of the

books, records and accounts of all public services as contemplated
in section seventeen (g) and (h) of Commonwealth Act Numbered
One hundred and forty-six, and/or in connection with the fixing of
rates of every nature and/or in relation to the proceedings of the
Commission under sections sixteen and seventeen of Commonwealth
Act Numbered One hundred and forty-six, shall be performed
by the General Auditing Office, through the representatives
duly designated therefor by the Auditor General. Whenever the
public interests so demand and/or whenever the Public Service
Commissioner or a Committee of the National Assembly so requests,
the Auditor General shall cause to be made an examination into
the financial condition of any public service under the jurisdiction
of the Public Service Commission, and the public service or public
services concerned shall submit to the Auditor General or his duly
authorized representatives all such reports, records, books of
accounts and other papers whatsoever as may be required, and in
such examination, the Auditor General or his representatives shall
have the power to examine under oath any official and employee of
such public services.
SEC. 2. In acting upon any proceedings regarding the

approval of basic rates or amendments of existing rates of any
public service, the Auditor general shall assign auditors to assist
the Public Service Commissioner and shall furnish such financial
dates or information as may be requested by the Public Service
Commissioner.
78
LEGISLATIVE
LEGISLATIVE
MEASURES
MEASURES
– COMMONWEALTH
SEC. 3. Any public service refusing to allow an audit and

examination of its books of accounts and pertinent records, or
offering unnecessary obstruction to such audit and examination, or
found guilty of concealing any material information concerning its
financial status, shall be subject to the penalties provided in section
twenty-one of Commonwealth Act Numbered One hundred and
forty-six.
XXX XXX XXX
SEC. 6. This Act shall take effect upon its approval.
79
AN ACT FIXING THE TIME WITHIN WHICH THE AUDITOR

GENERAL SHALL RENDER HIS DECISIONS
AND PRESCRIBING THE MANNER OF APPEAL
THEREFROM
Be it enacted by the national Assembly of the Philippines:
SECTION 1. In all cases involving the settlement of accounts

or claims, other than those of accountable officers, the Auditor
General shall act and decide the same within sixty days, exclusive
of Sundays and holidays, after their presentation. If said accounts
or claims need reference to other persons, office or offices, or to a
party interested, the period of aforesaid shall be counted from the
time the last comment necessary to a proper decision is received
by him. With respect to the accounts of accountable officers, the
Auditor General shall act on the same within one hundred days
after their submission, Sundays and holidays excepted.
In case of accounts or claims already submitted to but still

pending decision by the Auditor General on or before the approval
of this Act, the periods provided in this section shall commence from
the date of such approval.
SEC. 2. The party aggrieved by the final decision of the

Auditor General in the settlement of an account for claim may,
within thirty days from receipt of the decision, take an appeal in
writing:
To the President of the United States, pending the final and

complete withdrawal of her sovereignty over the Philippines, or
To the President of the Philippines, or

To the Supreme Court of the Philippines if the appellant is
a private person or entity.
80
LEGISLATIVE
LEGISLATIVE
MEASURES
MEASURES
– COMMONWEALTH
If there are more than one appellant, all appeals shall be

taken to the same authority resorted to by the first appellant.
From a decision adversely affecting the interests of the

Government, the appeal may be taken by the proper head of the
department or in case of local governments by the head of the office
or branch of the Government immediately concerned.
The appeal shall specifically set forth the particular action

of the Auditor General to which exception is taken with the reasons
and authorities relied on for reversing such decision.
81
AN ACT RELATING TO THE PROCEDURE IN THE

ADMINISTRATIVE DISCIPLINE OF SUBORDINATE
OFFICERS AND EMPLOYEES IN THE CIVIL SERVICE AND
CREATING A CIVIL SERVICE BOARD OF APPEALS
SECTION 1. Section six hundred and ninety-five of the

Revised Administrative Code, as amended by section twenty-three
of Commonwealth Act Numbered One hundred and seventy-seven,
is further amended to read as follows:
“SEC. 695. Administrative discipline of subordinate officers

and employees. — The Commissioner of Civil Service shall have
exclusive jurisdiction over the removal, separation and suspension
of subordinate officers and employees in the Civil Service and over
all other matters relating to the conduct, discipline, and efficiency
of such subordinate officers and employees, and shall have exclusive
charge of all formal administrative investigations against them. He
may, for neglect of duty or violation of reasonable office regulations,
or in the interest of the public service, remove any subordinate
officer or employee from the service, suspend him without pay for
not more than two months, reduce his salary or compensation, or
deduct therefrom any sum not exceeding one month’s pay. From
any decision of the Commissioner of Civil Service on administrative
investigations, an appeal may be taken by the officer or employee
concerned to the Civil Service Board of Appeals within thirty days
after receipt by him of the decision.”
SEC. 2. There shall be a Civil Service Board of Appeals

composed of the three members to be appointed by the President of
the Philippines with the consent of the Commission on Appointments
of the National Assembly from among persons already in the
Government service, and who shall hold office for a period of one
year from the date of their appointment unless sooner relieved by
the President. The President shall designate the chairman of the
82
LEGISLATIVE
LEGISLATIVE
MEASURES
MEASURES
– COMMONWEALTH
Board. The Civil Service Board of Appeals shall have the power and
authority to hear and decide all administrative cases brought before
it on appeal, and its decisions in such cases shall be final, unless
reversed or modified by the President of the Philippines. In order to
carry out its function and to perform its duties properly, the Civil
Service Board of Appeals may adopt such rules and regulations as
it may deem proper and convenient for the conduct of cases brought
before it and may utilize the services of such employees of the
Bureau of Civil Service as it may require.
SEC. 3. The Civil Service Board of Appeals created under

Executive Order Numbered Thirty-nine, dated June twenty-
third, nineteen hundred and thirty-six, confirmed by Resolution
Numbered Forty-five of the First National Assembly, approved
September thirtieth, nineteen hundred and thirty-six, is abolished
and all the cases now pending before it, together with its unexpended
appropriation, equipment and supplies, shall be transferred to the
Civil Service Board of Appeals herein created.
APPROVED, August 19, 1940.
83
AN ACT TO PENALIZE ANY VIOLATION OF SECTION 17,

ARTICLE VI, OR SUBSECTION (2), SECTION 11, ARTICLE
VII OF THE CONSTITUTION OF THE PHILIPPINES, AS
AMENDED
SECTION 1. Any person violating section seventeen, Article

VI, or subsection (2), section 11, Article VII, of the Constitution of
the Philippines, as amended, shall be punished by fine of not one
than five thousand pesos, or by imprisonment of not more than two
years, or by both, and in addition thereto, shall be subject to such
administrative or other actions as the corresponding authorities
may find proper.
84
LEGISLATIVE
LEGISLATIVE
MEASURES
MEASURES
– BATAS
– PUBLIC
PAMBANSA
ACTS
BATAS PAMBANSA BLG. 242
AN ACT PRESCRIBING THE PERIOD WITHIN WHICH A

DENOUNCED PUBLIC OFFICER MAY BRING ACTION
AGAINST AN INFORMANT OR WITNESS WHO GAVE
FALSE OR MALICIOUS TESTIMONY, AMENDING FOR
THE PURPOSE SECTION TWO OF PRESIDENTIAL
DECREE NUMBERED SEVEN HUNDRED FORTY-NINE,
“GRANTING IMMUNITY FROM PROSECUTION TO
GIVERS OF BRIBES AND OTHER GIFTS AND TO THEIR
ACCOMPLICES IN BRIBERY AND OTHER GRAFT CASES
AGAINST PUBLIC OFFICERS”
Be it enacted by the Batasang Pambansa in session assembled:
SECTION 1. Section two of Presidential Decree Numbered

Seven hundred forty-nine, “Granting Immunity from Prosecution to
Givers of Bribes and Other Gifts and to their Accomplices in Bribery
and Other Graft Cases Against Public Officers,” is hereby amended
to read as follows:
“SEC. 2. The immunity granted hereunder shall not attach

should turn it out subsequently that the information and/or testimony
is false and malicious or made only for the purpose of harassing,
molesting or in any way prejudicing the public officer denounced. In
such a case, the public officer so denounced shall be entitled to any
action, civil, administrative, or criminal, against said informant or
witness: Provided, however, That such action may be commenced
only after the dismissal of the case against the denounced public
officer after preliminary investigation or after the latter’s acquittal
by a competent court.
“The prescriptive periods for the various actions under

the provisions of this section shall start to run from the time such
actions may be commenced as herein provided.”

85
BATAS PAMBANSA BLG. 871
AN ACT AMENDING ARTICLES TWO HUNDRED TEN AND TWO

HUNDRED ELEVEN OF ACT NUMBERED THIRTY-EIGHT
HUNDRED AND FIFTEEN, OTHERWISE KNOWN AS THE
REVISED PENAL CODE, AS AMENDED, TO INCREASE
THE PENALTY FOR THE OFFENSE OF BRIBERY
Be it enacted by the Batasang Pambansa in session assembled:
SECTION 1. Articles Two hundred ten and Two hundred

eleven of Act Numbered Thirty-eight hundred and fifteen, as
amended, are amended to read as follows:
“ART. 210. Direct bribery. – Any public officer who shall

agree to perform an act constituting a crime, in connection with
the performance of his official duties, in consideration of any offer,
promise, gift or present received by such officer, personally or
through the mediation of another, shall suffer the penalty of prision
mayor in its medium and maximum periods and a fine of not less
than three times the value of the gift, in addition to the penalty
corresponding to the crime agreed upon, if the same shall have been
committed.
“If the gift was accepted by the officer in consideration

of the execution of an act which does not constitute a crime, and
the officer executed said act, he shall suffer the same penalty
provided in the preceding paragraph; and if said act shall not have
been accomplished, the officer shall suffer the penalties of prision
correccional in its medium period and a fine of not less than twice
the value of such gift.
“If the object for which the gift was received or promised
was to make the public officer refrain from doing something which
it was his official duty to do, he shall suffer the penalties of prision
correccional in its maximum period to prision mayor in its minimum
period and a fine of not less than three times the value of such gift.
86
LEGISLATIVE
LEGISLATIVE
MEASURES
MEASURES
– BATAS
– PUBLIC
PAMBANSA
ACTS
“In addition to the penalties provided in the preceeding

paragraphs, the culprit shall suffer the penalty of special temporary
disqualification.
“The provisions contained in the preceding paragraphs shall

be made applicable to assessors, arbitrators, appraisal and claim
commissioners, experts or any other persons performing public
duties.”
“ART. 211. Indirect bribery. – The penalties of prision

correctional in its medium and maximum periods, suspension and
public censure shall be imposed upon any public officer who shall
accept gifts offered to him by reason of his office.
APPROVED, May 29, 1985.
87
REPUBLIC ACT NO. 10
AN ACT PENALIZING USURPATION OF PUBLIC AUTHORITY

Philippines in Congress assembled:
SECTION 1. Any person who, with or without pretense of

official position shall perform any act pertaining to the Government,
or to any person in authority or public officer, without being lawfully
entitled to do so, shall be punished with imprisonment for not less
than two years nor more than ten years.
APPROVED, September 2, 1946.
88
LEGISLATIVE MEASURES – REPUBLIC ACTS
REPUBLIC ACT NO. 23
AN ACT TO AMEND SECTION EIGHT OF ACT NUMBERED

FORTY-ONE HUNDRED AND NINE, AS AMENDED,
ENTITLED, “AN ACT TO CREATE AN ANTI-USURY
BOARD, TO PRESCRIBE THE DUTIES AND FUNCTIONS
OF THE SAID BOARD, AND FOR OTHER PURPOSES”

Philippines in Congre ss assembled:
SECTION 1. Section eight of Act Numbered Forty-one

hundred and nine, as amended, is hereby amended to read as
follows:
“SEC. 8. In addition to the [permanent] officials and

employees of the Anti-Usury Board and those detailed on special duty
therewith, members of the Philippine Constabulary, members of the
city, municipal and municipal district police, and such rural credit
agents and district agronomists of the Bureau of Plant Industry,
agents of the Bureau of Internal Revenue, agents of the Bureau of
Labor and other persons as may be designated by the Chairman of
the Board, are hereby made deputies of the Anti-Usury Board. The
officials, employees, agents and deputies mentioned shall be peace
officers, with full authority to enforce the provisions of this Act
and the Usury Law, as amended, and the regulations promulgated
thereunder, and to arrest offenders against the same.”
89
REPUBLIC ACT NO. 379
AN ACT TO AMEND ARTICLE ONE HUNDRED AND SEVENTY-

SEVEN OF THE REVISED PENAL CODE

SECTION 1. Article one hundred and seventy-seven of Act

Numbered Thirty-eight hundred and fifteen, otherwise known as
the Revised Penal Code, is amended to read as follows:
“ART. 177. Usurpation of authority or official functions. – An

person who shall knowingly and falsely represent himself to be an
officer, agent or representative of any department or agency of the
Philippine Government or of any foreign government, or who, under
pretense of official position, shall perform any act pertaining to any
person in authority or public officer of the Philippine Government
or of any foreign government, or any agency thereof, without
being lawfully entitled to do so, shall suffer the penalty of prisión
correccional in its minimum and medium periods.”
90
AN ACT TO ORDAIN AND INSTITUTE THE CIVIL CODE OF THE

PHILIPPINES

PRELIMINARY TITLE
CHAPTER 1. – EFFECT AND APPLICATION OF LAWS
ARTICLE 1. This Act shall be known as the “Civil Code of

the Philippines.”
XXX XXX XXX
ART. 27. Any person suffering material or moral loss because

a public servant or employee refuses or neglects, without just cause,
to perform his official duty may file an action for damages and
other relief against the latter, without prejudice to any disciplinary
administrative action that may be taken.
XXX XXX XXX
ART. 32. Any public officer or employee, or any private

individual, who directly or indirectly obstructs, defeats, violates or
in any manner impedes or impairs any of the following rights and
liberties of another person shall be liable to the latter for damages:
(1) Freedom of religion;
(2) Freedom of speech;
(3) Freedom to write for the press or to maintain a periodical

publication;
91
(4) Freedom from arbitrary or illegal detention;
(5) Freedom of suffrage;
(6) The right against deprivation of property without due

process of law;
(7) The right to a just compensation when private property

is taken for public use.
(8) The right to the equal protection of the laws;
(9) The right to be secure in one’s person, house, papers,

and effects against unreasonable searches and seizures;
(10) The liberty of abode and of changing the same;
(11) The privacy of communication and correspondence;
(12) The right to become a member of associations or societies

for purposes not contrary to law;
(13) The right to take part in a peaceable assembly to petition

the Government for redress of grievances;
(14) The right to be free from involuntary servitude in any

form;
(15) The right of the accused against excessive bail;
(15) The right of the accused to be heard by himself and

counsel, to be informed of the nature and cause of the accusation
against him, to have a speedy and public trial, to met the witnesses
face to face, and to have compulsory process to secure the attendance
of witness in his behalf;
(17) Freedom from being compelled to be a witness against

one’s self, or from being forced to confess guilt, or from being induced
92
by a promise of immunity or reward to make such confession, except

when the person confessing becomes a State witness;
(18) Freedom from excessive fines, or cruel and unusual

punishment, unless the same is imposed or inflicted in accordance
with a statute which has not been judicially declared unconstitutional;
and
(19) Freedom of access to the courts.
In any of the cases referred to in this article, whether or not

the defendant’s act or omission constitutes a criminal offense, the
aggrieved party has a right to commence an entirely separate and
distinct civil action for damages, and for other relief. Such civil
action shall proceed independently of any criminal prosecution (if
the latter be instituted), and may be proved by a preponderance of
evidence.
The indemnity shall include moral damages. Exemplary

damages may also be adjudicated.
The responsibility herein set forth is not demandable from a

judge unless his act or omission constitutes a violation of the Penal
Code or other penal statute.
XXX XXX XXX
ART. 34. When a member of a city or municipal police force

refuses or fails to render aid or protection to any person in case
of danger to life or property, such peace officer shall be primarily
liable for damages, and the city or municipality shall be subsidiarily
responsible therefor. The civil action herein recognized shall be
independent of any criminal proceedings, and a preponderance of
evidence shall suffice to support such action.
XXX XXX XXX
93
REPEALING CLAUSE
ART. 2270. The following laws and regulations are hereby

repealed:
(1) Those parts and provisions of the Civil Code of 1889

which are in force on the date when this new Civil Code becomes
effective;
(2) The provisions of the Code of Commerce governing

sales, partnership, agency, loan, deposit and guaranty;
(3) The provisions of the Code of Civil Procedure on

prescription as far as inconsistent with this Code; and
(4) All laws, Acts, parts of Acts, rules of court, executive

orders, and administrative regulations which are inconsistent with
this Code.
94
AN ACT TO REQUIRE ALL BUREAUS, OFFICES,

AGENCIES AND INSTRUMENTALITIES OF THE
GOVERNMENT, INCLUDING GOVERNMENT OWNED
OR CONTROLLED CORPORATIONS, PROVINCES,
CITIES AND MUNICIPALITIES, TO DEDUCT AND
WITHHOLD FROM ANY MONEY PAYMENT TO PRIVATE
INDIVIDUALS, CORPORATIONS, PARTNERSHIPS, AND/
OR ASSOCIATIONS, ANY AND ALL TAXES DUE AND
PAYABLE ON ACCOUNT OF SAID MONEY PAYMENT

SECTION 1. All bureaus, offices, agencies and

instrumentalities of the government, including government owned
or controlled corporations, provinces, cities and municipalities,
shall, before making any money payment to private individuals,
corporations, partnerships and/or associations, deduct and withhold
any and all taxes the amount of which can be fixed, determined,
computed or ascertained, due from such individuals, corporations,
partnerships and/or associations on account of said money payment:
Provided, however, That, the deductions and withholdings referred
to herein shall not be required in case previous payments of the
aforesaid tax liability or liabilities had already been made by the
corresponding payee.
SEC. 2. The tax liability for which withholding, or of which

previous payment is required in section one of this Act includes
any and all taxes which can be fixed, determined, computed or
ascertained on account of the money payments.
SEC. 3. The Secretary of Finance shall promulgate necessary

rules and regulations to implement and effectively carry out the
provisions of this Act.
95
SEC. 4. It shall be unlawful for any public officer or

employee, or official or employee of a government owned or controlled
corporation to authorize any of the payments mentioned in section
one hereof without withholding, or without requiring the previous
payment of, the tax liability mentioned in section two hereof. It
shall be equally unlawful for any person or persons to induce or
connive with any public officer or employee, or official or employee
of a government owned or controlled corporation to commit the
unlawful act herein defined or to receive any payment in violation
of this Act.
SEC. 5. Any violation of this Act shall be punished by a fine

not less than one thousand pesos nor more than two thousand pesos
and imprisonment for not more than one year: Provided, That, in
the case of public officer or employee he shall be further subject to
administrative proceedings and, if found guilty, shall be dismissed
from the service: Provided, further, That in case of aliens, in addition
to the penalties provided for in this section, they shall be deported
without further deportation proceedings.
96
AN ACT INCREASING THE PENALTY FOR THE CRIME OF

MALVERSATION OF PUBLIC FUNDS OR PROPERTY, BY
AMENDING ARTICLE TWO HUNDRED SEVENTEEN OF
THE REVISED PENAL CODE

SECTION 1. Article two hundred seventeen of the Revised

Penal Code is amended to read as follows:
“ART. 217. Malversation of public funds or property. —

Presumption of malversation. — Any public officer who, by reason
of the duties of his office, is accountable for public funds or property,
shall appropriate the same, or shall take or misappropriate or
shall consent, or through abandonment or negligence, shall permit
any other person to take such public funds or property, wholly or
partially, or shall otherwise be guilty of the misappropriation or
malversation of such funds or property, shall suffer:
“1. The penalty of prision correccional in its medium and

maximum periods, if the amount involved in the misappropriation
or malversation does not exceed two hundred pesos.
“2. The penalty of prision mayor in its minimum and

medium periods, if the amount involved is more than two hundred
pesos but does not exceed six thousand pesos.
“3. The penalty of prision mayor in its maximum period to

reclusion temporal in its minimum period, if the amount involved
is more than six thousand pesos but is less than twelve thousand
pesos.
“4. The penalty of reclusion temporal in its medium and

maximum periods, if the amount involved is more than twelve
thousand pesos but is less than twenty-two thousand pesos. If the
97
amount exceeds the latter, the penalty shall be reclusion temporal

in its maximum period to reclusion perpetua.
“In all cases, persons guilty of malversation shall also suffer

the penalty of perpetual special disqualification and a fine equal to
the amount of the funds malversed or equal to the total value of the
property embezzled.
“The failure of a public officer to have duly forthcoming any

public funds or property with which he is chargeable, upon demand
by any duly authorized officer, shall be prima facie evidence that he
has put such missing funds or property to personal uses.”
98
AN ACT DECLARING FORFEITURE IN FAVOR OF THE

STATE ANY PROPERTY FOUND TO HAVE BEEN
UNLAWFULLY ACQUIRED BY ANY PUBLIC OFFICER OR
EMPLOYEE AND PROVIDING FOR THE PROCEEDINGS
THEREFOR

SECTION 1. Definitions. –
For the purposes of this Act, a “public officer or employee”

means any person holding any public office or employment by virtue
of an appointment, election or contract, and any person holding
any office or employment, by appointment or contract, in any State
owned or controlled corporation or enterprise.
(a) “Other legitimately acquired property” means any real

or personal property, money or securities which the respondent has
at any time acquired by inheritance and the income thereof, or by
gift inter vivos before his becoming a public officer or employee, or
any property (or income thereof) already pertaining to him when he
qualified for public office or employment, or the fruits and income
of the exclusive property of the respondent’s spouse. It shall not
include:
(b) Property unlawfully acquired by the respondent, but its

ownership is concealed by its being recorded in the name of, or held
by, the respondent’s spouse, ascendants, descendants, relatives, or
any other person.
1. Property unlawfully acquired by the respondent, but

transferred by him to another person or persons on or after the
effectivity of this Act.
99
2. Property donated to the respondent during his

incumbency, unless he can prove to the satisfaction of the court that
the donation is lawful.
SEC. 2. Filing of petition. – Whenever any public officer

or employee has acquired during his incumbency an amount of
property which is manifestly out of proportion to his salary as such
public officer or employee and to his other lawful income and the
income from legitimately acquired property, said property shall
be presumed prima facie to have been unlawfully acquired. The
Solicitor General, upon complaint by any taxpayer to the city or
provincial fiscal who shall conduct a previous inquiry similar to
preliminary investigations in criminal cases and shall certify to the
Solicitor General that there is reasonable ground to believe that
there has been committed a violation of this Act and the respondent
is probably guilty thereof, shall file, in the name and on behalf of the
Republic of the Philippines, in the Court of First Instance of the city
or province where said public officer or employee resides or holds
office, a petition for a writ commanding said officer or employee to
show cause why the property aforesaid, or any part thereof, should
not be declared property of the State: Provided, That no such petition
shall be filed within one year before any general election or within
three months before any special election.
The resignation, dismissal or separation of the officer or

employee from his office or employment in the Government or in
the Government-owned or controlled corporation shall not be a bar
to the filing of the petition: Provided, however, That the right to file
such petition shall prescribe after four years from the date of the
resignation, dismissal or separation or expiration of the term of the
officer or employee concerned, except as to those who have ceased
to hold office within ten years prior to the approval of this Act, in
which case the proceedings shall prescribe after four years from the
approval hereof.
SEC. 3. The petition. – The petition shall contain the

following information:
100
(a) The name and address of the respondent.
(b) The public office or employment he holds and such other

pubic offices or employment which he has previously held.
(c) The approximate amount of property he has acquired

during his incumbency in his past and present offices and
employments.
(d) A description of said property, or such thereof as has

been identified by the Solicitor General.
(e) The total amount of his government salary and other

proper earnings and incomes from legitimately acquired property,
and
(f) Such other information as may enable the court to
determine whether or not the respondent has unlawfully acquired
property during his incumbency.
SEC. 4. Period for the answer. – The respondent shall have

a period of fifteen days within which to present his answer.
SEC. 5. Hearing. – The court shall set a date for a hearing,

which may be open to the public, and during which the respondent
shall be given ample opportunity to explain, to the satisfaction of
the court, how he has acquired the property in question.
SEC. 6. Judgment. – If the respondent is unable to show

to the satisfaction of the court that he has lawfully acquired the
property in question, then the court shall declare such property,
forfeited in favor of the State, and by virtue of such judgment, the
property aforesaid shall become property of the State: Provided,
That no judgment shall be rendered within six months before any
general election or within three months before any special election.
The Court may, in addition, refer this case to the corresponding
Executive Department for administrative or criminal action, or
both.
101
SEC. 7. Appeal. – The parties may appeal from the judgment

of the Court of First Instance as provided in the Rules of Court for
appeals in civil cases.
SEC. 8. Protection against self-incrimination. – Neither the

respondent nor any other person shall be excused from attending
and testifying or from producing books, papers, correspondence,
memoranda and other records on the ground that the testimony or
evidence, documentary or otherwise, required of him may tend to
incriminate him or subject him to prosecution; but no individual shall
be prosecuted criminally for or on account of any transaction, matter
or thing concerning which he is compelled after having claimed his
privilege against self-incrimination, to testify or produce evidence,
documentary or otherwise, except that such individual so testifying
shall not be exempt from prosecution and conviction for perjury or
false testimony committed in so testifying or from administrative
proceedings.
SEC. 9. Immunity. – The Solicitor General may grant

immunity from criminal prosecution to any person who testifies to
the unlawful manner in which the respondent has acquired any of
the property in question in cases where such testimony is necessary
to prove violations of this Act.
SEC. 10. Effect of record of title. – The fact that any real
property has been recorded in the Registry of Property or office of
the Register of Deeds in the name of the respondent or of any person
mentioned in paragraphs (1) and (2) of subsection (b) of section one
hereof shall not prevent the rendering of the judgment referred to
in section six of this Act.
SEC. 11. Laws on prescription. – The laws concerning

acquisitive prescription and limitation of actions cannot be invoked
by, nor shall they benefit the respondent, in respect of any property
unlawfully acquired by him.
SEC. 12. Penalties. – Any public officer or employee who

shall, after the effective date of this Act, transfer or convey any
102
unlawfully acquired property shall be repressed with imprisonment

for a term not exceeding five years, or a fine not exceeding ten
thousand pesos, or both such imprisonment and fine. The same
repression shall be imposed upon any person who shall knowingly
accept such transfer or conveyance.
SEC. 13. Separability of provisions. – If any provision of

this Act or the application thereof to any person or circumstance, is
held invalid, the remainder of the Act and the application of such
provision to other persons or circumstances shall not be affected
thereby.
SEC. 14. Effective Date. – This Act shall take effect on its
approval, and shall apply not only to property thereafter unlawfully
acquired but also to property unlawfully acquired before the effective
date of this Act.
103
AN ACT PROHIBITING DISCLOSURE OF OR INQUIRY INTO,

DEPOSITS WITH ANY BANKING INSTITUTION AND
PROVIDING PENALTY THEREFOR

SECTION 1. It is hereby declared to be the policy of the

Government to give encouragement to the people to deposit their
money in banking institutions and to discourage private hoarding
so that the same may be properly utilized by banks in authorized
loans to assist in the economic development of the country.
SEC. 2. All deposits of whatever nature with banks or

banking institutions in the Philippines including investments in
bonds issued by the Government of the Philippines, its political
subdivisions and its instrumentalities, are hereby considered as
of an absolutely confidential nature and may not be examined,
inquired or looked into by any person, government official bureau or
office, except upon written permission of the depositor, or in cases of
impeachment, or upon order of a competent court in cases of bribery
or dereliction of duty of public officials, or in cases where the money
deposited or invested is the subject matter of the litigation.
SEC. 3. It shall be unlawful for any official or employee

of a banking institution to disclose to any person other than those
mentioned in Section two hereof any information concerning said
deposits.
SEC. 4. All Acts or parts of Acts, Special Charters, Executive

Orders, Rules and Regulations which are inconsistent with the
provisions of this Act are hereby repealed.
SEC. 5. Any violation of this law will subject offender upon

conviction, to an imprisonment of not more than five years or a fine
104
of not more than twenty thousand pesos or both, in the discretion

of the court.
105
AN ACT TO AMEND AND REVISE THE LAWS RELATIVE TO

PHILIPPINE CIVIL SERVICE

ARTICLE I— Introduction
SECTION 1. Title of Act. – This Act shall be known as the

Civil Service Act of 1959.
SEC. 2. General Purpose. – The general purpose of this Act

is to insure and promote the constitutional mandate regarding
appointments only according to merit and fitness, and to provide
within the public service a progressive system of personnel
administration to insure the maintenance of an honest, efficient,
progressive and courteous civil service in the Philippines.
XXX XXX XXX
ARTICLE VI— Personnel Policies and Standards
XXX XXX XXX
SEC. 29. Political Activity. – Officers and employees in the civil

service, whether in the competitive or classified, or non-competitive
or unclassified service, shall not engage directly or indirectly in
partisan political activities or take part in any election except to
vote. Nothing herein provided shall be understood to prevent any
officer or employee from expressing his views on current political
problems or issues, or from mentioning the names of candidates for
public office whom he supports.
SEC. 30. Nepotism. – (a) All appointments in the National,

provincial, city and municipal governments or in any branch or
instrumentality thereof, including government-owned or non-
106
competitive service, made in favor of a relative of the appointing

recommending authority, or of the chief of the bureau or office, or
of the persons exercising immediately supervision over him, are
hereby prohibited.
As used in this section, the word “relative” and members

of the family referred to are those related within the third degree
either of consanguinity or affinity.
(b) The following are exempted from the operation or the

rules on nepotism: (1) person employed in a confidential capacity,
(2) teachers, (3) physicians, and (4) members of the Armed Forces of
the Philippines: Provided, however, That in each particular instance
full report of such appointment shall be made to the Commissioner
of Civil Service.
The restriction mentioned in subsection (a) shall not be

applicable to the case of a member of any family who, after his or
her appointment to any position in an offices or bureau, contracts
marriage with someone in the same office or bureau, in which event
the employment or retention therein of both husband and wife may
be allowed.
(c) In order to give immediate effect to these rules, cases of

previous appointments which are in contravention hereof shall be
corrected by transfer, and pending such transfer, no promotion or
salary increase shall be allowed in favor of the relative or relatives
who were appointed in violation of these provisions.
SEC. 31. Dual Compensation.— No officer or employee in

the Civil Service shall receive additional or double compensation
unless specifically authorized by law.
ARTICLE VII— Discipline
SEC. 32. Disciplinary Action.— No officer or employee in

the civil service shall be removed or suspended except for cause as
provided by law and after due process: Provided, That a transfer
107
from one position to another without reduction in rank or salary

shall not be considered disciplinary when made in the interest of
public service: Provided, further, That no complaint against a civil
service official or employee shall be given due course unless the same
is in writing and subscribed and sworn to by the complainant: And
Provided, finally, That the respondent shall be entitled to a formal
investigation if he so elects, in which case he shall have the right
to appear and defend himself at said investigation in person or by
counsel, to confront and cross-examine the witnesses against him,
and to have the attendance of witnesses and production of documents
in his favor by compulsory process of subpoena or subpoena duces
tecum.
SEC. 33. Administrative Jurisdiction for Disciplining

Officers and Employees. – The Commissioner may, for dishonestly,
oppression, misconduct, neglect of duty, conviction of a crime
involving moral turpitude, notoriously disgraceful or immoral
conduct, improper or unauthorized solicitation of contributions
from subordinate employees and by teachers or school officials from
school children, violation of the existing Civil Service law and rules
or of reasonable office regulations, or in the interest of the service,
remove any subordinate officer or employee from the service, demote
him in rank, suspend him for not more than one year without pay or
fine him in an amount not exceeding six months’ salary.
In meting out punishment, like penalties shall be imposed for

like offenses and only one penalty shall be imposed in each case.
SEC. 34. Preventive Suspension. – The President of the

Philippines may suspend any chief or assistant chief of a bureau
or office and in the absence of special provision, any other officer
appointed by him, pending an investigation of the charges against
such officer or pending an investigation of his bureau or office.
With the approval of the proper Head of Department, the chief of a
bureau or office may likewise preventively suspend any subordinate
officer or employee in his bureau or under his authority pending
an investigation, if the charge against such officer or employee
involves dishonesty, oppression or grave misconduct, or neglect in
108
the performance of duty, or if there are strong reasons to believe

that the respondent is guilty of charges which would warrant his
removal from the service.
SEC. 35. Lifting of Preventive Suspension Pending

Administrative Investigation. – When the administrative case
against the officer or employee under preventive suspension is not
finally decided by the Commissioner of Civil Service within the period
of sixty (60) days after the date of suspension of the respondent,
the respondent shall be reinstated in the service. If the respondent
officer or employee is exonerated, he shall be restored to his position
with full pay for the period of suspension.
SEC. 36. Prescriptive Period for Appeals. – The decision of

the Commissioner of Civil Service rendered in an administrative
case involving discipline of subordinate officers and employees may
be appealed by the respondent to the Civil Service Board of Appeals
within thirty (30) days after receipt by him of the decision.
No petition for reconsideration of the decision rendered by

the Commissioner of Civil Service will be entertained if not filed
within the period for appeal as provided in this section: Provided,
That only one petition for reconsideration shall be entertained: And
provided, further, That the filling of a petition for reconsideration
shall suspend the running of the period for appeal.
The Commissioner shall be informed by the office of the

respondent of the dates mentioned in this provision.
SEC. 37. Removal of Administrative Penalties or Disabilities.

– The President of the Philippines may, in meritorious cases and upon
recommendation of the Civil Service Board of Appeals, commute
or remove administrative penalties or disabilities imposed upon
officers or employees in disciplinary cases, subject to such terms and
conditions as he may impose in the interest of the service.
XXX XXX XXX
109
ARTICLE VIII— Miscellaneous Provisions
XXX XXX XXX
SEC. 40. Waiver of rights.— No public officer or employee

acting for a public officer shall be permitted to require an applicant
for employment or any employee to sign any paper or document
whereby such applicant for employment waives any right or rights
accruing to him under this law.
XXX XXX XXX
SEC. 42. Liability of Disbursing Officers. – Except as may

otherwise be provided, it shall be unlawful for a treasurer, or other
fiscal officer to draw, retain from the salary due an officer or employee
any amount for contribution or payment of obligations other than
those due the government or its instrumentalities, sign or issue,
or authorize the drawing, signing or issuing of any warrant, check
or voucher for the payment of any salary or compensation to any
officer, or other persons except temporary laborers, unless proper
certification is made by the Commissioner of Civil Service or his duly
authorized representative that the appointment or employment of
such officer or employee has been approved as provided by the Civil
Service Law and rules and the official making such payment shall
be personally liable for any salaries or wages paid to any person
whose appointment has not been duly approved, without prejudice
to his administrative or criminal liability.
SEC. 43. Liability of Appointing Authority. – No person

employed in the civil service in violation of the Civil Service Law
and rules shall be entitled to receive pay from the Government; but
the appointing authority responsible for such unlawful employment
shall be personally liable for the pay that would have accrued had
the employment been lawful, and the disbursing official shall make
payment to the employee of such amount from the salary of the
officers so liable.
110
SEC. 44. Penal Provisions. – Whoever makes any

appointment or employs any person in violation of any provision of
this Act, or the rules made thereunder, or whoever violates, refuses
or neglects to comply with any of such provisions or rules, shall upon
conviction be punished by a fine not exceeding one thousand pesos
or by imprisonment not exceeding six months, or both such fine and
imprisonment in the discretion of the court.
XXX XXX XXX
SEC. 47. Effective Date and Saving Clause. This Act shall
take effect upon its approval: Provided, however, That except
as otherwise provided in this Act, rights or privileges vested or
acquired under the provisions of the Old Civil Service Law, rules
and regulations prior to the effectivity of this Act shall remain in
force and effect.
111
ANTI-GRAFT AND CORRUPT PRACTICES ACT

SECTION 1. Statement of policy. – It is the policy of the

Philippine Government, in line with the principle that public office
is a public trust, to repress certain acts of public officers and private
persons alike which constitute graft or corrupt practices or which
may lead thereto.
SEC. 2. Definition of terms. – As used in this Act, the term

–
(a) “Government” includes the national government,
the local governments, the government-owned and government
controlled corporations, and all other instrumentalities or agencies
of the Republic of the Philippines and their branches.
(b) “Public Officer” includes elective and appointive

officials and employees, permanent or temporary, whether in the
classified or unclassified or exempt service receiving compensation,
even nominal, from the government as defined in the preceding
subparagraph.
(c) “Receiving any gift” includes the act of accepting directly

or indirectly a gift from a person other than a member of the public
officer’s immediate family, in behalf of himself or of any member
of his family or relative within the fourth civil degree, either by
consanguinity or affinity, even on the occasion of a family celebration
or national festivity like Christmas, if the value of the gift is under
the circumstances manifestly excessive.
(d) “Person” includes natural and juridical persons, unless

the context indicates otherwise.
112
SEC. 3. Corrupt practices of public officers. – In addition

to acts or omissions of public officers already penalized by existing
law, the following shall constitute corrupt practices of any public
officer and are hereby declared to be unlawful:
(a) Persuading, inducing or influencing another public

officer to perform an act constituting a violation of rules and
regulations duly promulgated by competent authority or an offense
in connection with the official duties of the latter, or allowing himself
to be persuaded, induced, or influenced to commit such violation or
offense.
(b) Directly or indirectly requesting or receiving any gift,

present, share, percentage, or benefit, for himself or for any other
person, in connection with any contract or transaction between the
Government and any other party, wherein the public officer in his
official capacity has to intervene under the law.
(c) Directly or indirectly requesting or receiving any gift

present or other pecuniary or material benefit, for himself or for
another, from any person for whom the public officer, in any manner
or capacity, has secured or obtained, or will secure or obtain, any
Government permit or license, in consideration for the help given or
to be given, without prejudice to Section thirteen of this Act.
(d) Accepting or having any member of his family accept

employment in a private enterprise which has pending official
business with him during the pendency thereof or within one year
after its termination.
(e) Causing any undue injury to any party, including the

government, or giving any private party any unwarranted benefits,
advantage or preference in the discharge of his official administrative
or judicial functions through manifest partiality, evident bad faith or
gross inexcusable negligence. This provision shall apply to officers
and employees of officer or government corporations charged with
the grant of licenses or permits or other concessions.
113
(f) Neglecting or refusing, after due demand or request,

without sufficient justification, to act within a reasonable time
on any matter pending before him for the purpose of obtaining,
directly or indirectly, from any person interested in the matter some
pecuniary or material benefit or advantage, or for the purpose of
favoring his own interest or giving undue advantage in favor of or
discriminating against any other interested party.
(g) Entering, on behalf of the Government, into any contract

or transaction manifestly and grossly disadvantageous to the same,
whether or not the public officer profited or will profit thereby.
(h) Directly or indirectly having financial or pecuniary

interest in any business, contract or transaction in connection with
which he intervenes or takes part in his official capacity, or in which
he is prohibited by the Constitution or by any law from having any
interest.
(i) Directly or indirectly becoming interested, for personal

gain, or having a material interest in any transaction or act requiring
the approval of a board, panel or group of which he is a member,
and which exercises discretion in such approval, even if he votes
against the same or does not participate in the action of the board,
committee, panel or group.
Interest for personal gain shall be presumed against those

public officers responsible for the approval of manifestly unlawful,
inequitable, or irregular transaction or acts by the board, panel or
group to which they belong.
(j) Knowingly approving or granting any license, permit,

privilege or benefit in favor of any person not qualified for or not
legally entitled to such license, permit, privilege or advantage, or
of a mere representative or dummy of one who is not so qualified or
entitled.
(k) Divulging valuable information of a confidential

character, acquired by his office or by him on account of his official
114
position to unauthorized persons, or releasing such information in

advance of its authorized release date.
The person giving the gift, present, share, percentage or

benefit referred to in subparagraphs (b) and (c) ; or offering or giving
to the public officer the employment mentioned in subparagraph
(d) ; or urging the divulging or untimely release of the confidential
information referred to in subparagraph (k) of this section shall,
together with the offending public officer, be punished under Section
nine of this Act and shall be permanently or temporarily disqualified
in the discretion of the Court, from transacting business in any form
with the Government.
SEC. 4. Prohibition on private individuals. – (a) It

shall be unlawful for any person having family or close personal
relation with any public official to capitalize or exploit or take
advantage of such family or close personal relation by directly or
indirectly requesting or receiving any present, gift or material or
pecuniary advantage from any other person having some business,
transaction, application, request or contract with the government,
in which such public official has to intervene. Family relation shall
include the spouse or relatives by consanguinity or affinity in the
third civil degree. The word “close personal relation” shall include
close personal friendship. Social and fraternal connections, and
professional employment all giving rise to intimacy which assures
free access to such public officer.
(b) It shall be unlawful for any person knowingly to induce

or cause any public official to commit any of the offenses defined in
Section 3 hereof.
SEC. 5. Prohibition on certain relatives. – It shall be unlawful

for the spouse or for any relative, by consanguinity or affinity,
within the third civil degree, of the President of the Philippines,
Vice-President of the Philippines, the President of the Senate, or
the Speaker of the house of Representatives, to intervene, directly
or indirectly, in any business, transaction, contract or application
with the Government: Provided, That this section shall not apply to
115
any person who, prior to the assumption of office of any of the above
officials to whom he is related, has been already dealing with the
Government along the same line of business, nor to any transaction,
contract or application already existing or pending at the time of
such assumption of public office, nor to any application filed by him
the approval of which is not discretionary on the part of the official
or officials concerned but depends upon compliance with requisites
provided by law, or rules or regulations issued pursuant to law,
nor to any act lawfully performed in an official capacity or in the
exercise of a profession.
SEC. 6. Prohibition on Members of Congress. – It shall be

unlawful hereafter for any Member of the Congress during the term
for which he has been elected, to acquire or receive any personal
pecuniary interest in any specific business enterprise which will
be directly and particularly favored or benefited by any law or
resolution authored by him previously approved or adopted by the
Congress during the same term.
The provision of this section shall apply to any other public

officer who recommended the initiation in Congress of the enactment
or adoption of any law or resolution, and acquires or receives any
such interest during his incumbency.
It shall likewise be unlawful for such member of Congress or

other public officer, who, having such interest prior to the approval of
such law or resolution authored or recommended by him, continues
for thirty days after such approval to retain such interest.
SEC. 7. Statement of assets and liabilities. – Ever public

officer within thirty days after the approval of this Act or after
assuming office, and within the month of January of every other
year thereafter, as well as upon the expiration of his term of office,
or upon his resignation or separation from office, shall prepare and
file with the office of the corresponding Department Head, or in
the case of a Head of Department or chief of an independent office,
with the Office of the President, or in the case of members of the
Congress and the officials and employees thereof, with the Office of
116
the Secretary of the corresponding House, a true detailed and sworn

statement of assets and liabilities, including, a statement of the
amounts and sources of his income, the amounts of his personal and
family expenses and the amount of income taxes paid for the next
preceding calendar year: Provided, That public officers assuming
office less than two months before the end of the calendar year, may
file their first statements in the following months of January.
SEC. 8. Dismissal due to unexplained wealth. – If in

accordance with the provisions of Republic Act Numbered One
thousand three hundred seventy-nine, a public official has been
found to have acquired during his incumbency, whether in his
name or in the name of other persons, an amount of property and/
or money manifestly out of proportion to his salary and to his other
lawful income, that fact shall be a ground for dismissal or removal.
Properties in the name of the spouse and unmarried children of such
public official may be taken into consideration, when their acquisition
through legitimate means cannot be satisfactorily shown. Bank
deposits shall be taken into consideration in the enforcement of this
section, notwithstanding any provision of law to the contrary.
SEC. 9 Penalties for violations. – (a) Any public officer or

private person committing any of the unlawful acts or omissions
enumerated in Sections 3,4,5 and 6 of this Act shall be punished
with imprisonment for not less than one year nor more than ten
years, perpetual disqualification from public office, and confiscation
or forfeiture in favor of the Government of any prohibited interest
and unexplained wealth manifestly out of proportion to his salary
and other lawful income.
Any complaining party at whose complaint the criminal

prosecution was initiated shall, in case of conviction of the accused,
be entitled to recover in the criminal action with priority over the
forfeiture in favor of the Government, the amount of money or the
thing he may have given to the accused, or the fair value of such
thing.
(b) Any public officer violating any of the provisions of Section

7 of this Act shall be punished by a fine of not less than one hundred
117
pesos nor more than one thousand pesos, or by imprisonment not

exceeding one year, or by both such fine and imprisonment, at the
The violation of said section proven in a proper administrative

proceeding shall be sufficient cause for removal or dismissal of a
public officer, even if no criminal prosecution is instituted against
him.
SEC. 10. Competent court. – Until otherwise provided by

law, all prosecutions under this Act shall be within the original
jurisdiction of the proper Court of First Instance.
SEC. 11. Prescription of offenses. – All offenses punishable

under this Act shall prescribe in ten years.
SEC. 12. Termination of office. – No public officer shall

be allowed to resign, or retire pending an investigation, criminal
or administrative, or pending a prosecution against him, for any
offense under this Act or under the provisions of the Revised Penal
Code on bribery.
SEC. 13. Suspension and loss of benefits. – Any public officer

against whom any criminal prosecution under a valid information
under this Act or under the provisions of the Revised Penal Code on
bribery is pending in court, shall be suspended from office. Should
he be convicted by final judgment, he shall lose all retirement or
gratuity benefits under any law, but if he is acquitted, he shall be
entitled to reinstatement and to the salaries and benefits which
he failed to receive during suspension, unless in the meantime
administrative proceedings have been filed against him.
SEC. 14. Exception. – Unsolicited gifts or presents of small

or insignificant value offered or given as a mere ordinary token of
gratitude or friendship according to local customs or usage, shall be
excepted from the provisions of this Act.
118
Nothing in this Act shall be interpreted to prejudice or

prohibit the practice of an profession, lawful trade or occupation by
any private person or by any public officer who under the law may
legitimately practice his profession, trade or occupation, during his
incumbency, except, where the practice of such profession, trade
or occupation involves conspiracy with any other person or public
official to commit any of the violations penalized in this Act.
SEC. 15. Separability clause. – If any provision of this ct or

the application of such provision to any person or circumstances is
declared invalid, the remainder of the Act or the application of such
provision to other persons or circumstances shall not be affected by
such declaration.
SEC. 16. Effectivity. – This Act shall take effect on its

approval, but for the purpose of determining unexplained wealth,
all property acquired by a public officer since he assumed office shall
be taken into consideration.
119
AN ACT TO AMEND SECTION SEVEN OF REPUBLIC ACT

NUMBERED THIRTY HUNDRED AND NINETEEN,
OTHERWISE KNOWN AS “THE ANTI-GRAFT AND
CORRUPT PRACTICES ACT” SO AS TO EXEMPT
CLASSROOM TEACHERS, LABORERS, CASUAL AND
TEMPORARY EMPLOYEES, AND BARRIO OFFICIALS
FROM THE REQUIREMENTS THEREOF

SECTION 1. Section seven of Republic Act Numbered Thirty

hundred and nineteen is hereby amended to read as follows:
“SEC. 7. Statement of assets and liabilities. – Every public

officer, within thirty days after the approval of this Act or after
assuming office, and within the month of January of every other
year thereafter, as well as upon the expiration of his term of office,
or upon his resignation or separation from office, shall prepare and
file with the office of the corresponding Department Head, or in the
case of a Head of Department or chief of an independent office, with
the Office of the President, or in the case of members of Congress
and the officials and employees thereof, with the Office of the
Secretary of the corresponding House, a true detailed and sworn
statement of the amounts and sources of his income, the amounts of
his personal and family expenses and the amount of income taxes
paid for the next preceding calendar year: Provided, That public
officers assuming office less than two months before the end of
the calendar year, may file their first statements in the following
months of January: Provided, further, That the requirements of
this section shall not apply to classroom teachers, laborers, casual
and temporary employees, and barrio officials”.
APPROVED, June seventeen, nineteen hundred sixty-one.
120
AN ACT AMENDING SECTION THIRTY-TWO OF REPUBLIC ACT

NUMBERED ONE HUNDRED EIGHTY, AS AMENDED,
OTHERWISE KNOWN AS “THE REVISED ELECTION
CODE”, SO AS TO REQUIRE CERTAIN INFORMATION
REGARDING INCOME TAXES OF CANDIDATES
Be it enacted by the Senate and the House of Representatives of the

SECTION 1. Section thirty-two of Republic Act Numbered

One hundred eighty, as amended, is hereby further amended to
read as follows:
“SEC. 32. Contents of certificates of candidacy. - The person

concerned shall state in his certificate that he announces his
candidacy for the office mentioned therein and that he is eligible for
the office; the name of the political party to which he belongs, if he
belongs to any; his civil status, and if married, the full name of his
or her spouse; his age including the date of birth; and his post-office
address for all election purposes.
“The certificate of candidacy shall likewise state his gross

income, the expenses, deduction and exemptions and that he paid
his income taxes as assessed, for the last two years immediately
preceding the elections, including the receipt numbers and places
of such payments, unless the candidate was exempt from paying
income taxes, or his tax obligations are pending final determination,
in which cases he shall so state in his certificate of candidacy; and
shall furthermore contain a waiver of the privilege from public
disclosure of his income tax returns and tax census statements
for the said two-year period, except financial statements attached
thereto, said waiver to be effective only during the period of his
candidacy. Failure to state the required information on income,
taxes, and waiver shall invalidate the certificate of candidacy.”

121
AN ACT TO CONVERT THE DIVISION OF STANDARDS UNDER

THE BUREAU OF COMMERCE INTO A BUREAU OF
STANDARDS, TO PROVIDE FOR THE STANDARDIZATION
AND/OR INSPECTION OF PRODUCTS AND IMPORTS OF
THE PHILIPPINES AND FOR OTHER PURPOSES

SECTION 1. The Division of Standards under the Bureau

of Commerce is hereby converted into a Bureau of Standards under
the Department of Commerce and Industry.
XXX XXX XXX
SEC. 5. Any person who fails or refuses to comply with a

legal summon, or subpoena, or subpoena duces tecum, of the Director
of Standards or his duly authorized agent or representative, or
refuses to be sworn to, prior to giving testimony or refuses to answer
pertinent questions, or gives false or misleading data or information
or willful concealment of a material fact, in any investigation made
pursuant to subsection (c), (d), (e), (f), and (g) of Section four of this
Act, shall be punished by imprisonment of not less than two or more
than six months, and by a fine of not less than five hundred nor
more than one thousand pesos and deportation if he is an alien, after
serving the entire period of his imprisonment: Provided, however,
That, if the false or misleading data or information shall have been
given under oath, the maximum penalty for giving false testimony
shall be imposed.
XXX XXX XXX
SEC. 7. Any public official, employee, individual, corporation,

association, partnership, or firm effecting or abetting the shipment
abroad and/or facilitate the discharge of distribution and/or sale
for domestic consumption of any product in violation of any of the
122
provisions of Section six of this Act or any rules and regulations

issued therewith, shall be punished by imprisonment of not less than
six months nor more than two years and by a fine of not less than
one thousand nor more than five thousand pesos, and deportation if
he is an alien after serving the entire period of his imprisonment.
Whenever the violation is committed by a corporation,

association, partnership, or firm, the President and each one of the
directors or managers of said corporation, association, partnership
or firm who shall have knowingly permitted or failed to prevent
the commission of said violation shall be held liable as principals
thereof.
In case the offender is a naturalized citizen he shall, in

addition to the penalty prescribed herein, suffer the penalty of
cancellation of his naturalization certificate and such registration
in the civil registry and immediate deportation.
In case the violation is committed by, or in the interest of

a foreign judicial person duly licensed to engage in business in the
Philippines, such license to engage in business in the Philippines
shall immediately be revoked.
If the offender is a public officer or employee, he shall, in

addition to the penalty of imprisonment and fine prescribed herein,
be dismissed from office and perpetually disqualified from holding
public office.
XXX XXX XXX
SEC. 11. All Acts, executive orders, administrative orders

and proclamations or parts thereof inconsistent with any of the
provisions of this Act are hereby repealed or modified accordingly. If
any part of this Act shall, for any person, be adjudged by any court of
competent jurisdiction to be invalid, such judgment shall not affect
the remainder thereof, but shall be confined in its operation to the
part directly involved in the controversy in which such judgment
shall have been rendered.
123
SEC. 12. Effectivity. — This Act shall take effect upon its
approval.
124
AN ACT TO AMEND REPUBLIC ACT NUMBERED THREE

THOUSAND FOUR HUNDRED AND FIFTY-TWO,
ENTITLED “AN ACT TO ADOPT A PROGRAM TO
STABILIZE THE PRICE OF PALAY, RICE AND CORN,
TO PROVIDE INCENTIVES FOR PRODUCTION AND TO
CREATE THE RICE AND CORN ADMINISTRATION TO
IMPLEMENT THE SAME, AND TO PROVIDE FUNDS
THEREFOR”

SECTION 1. Section one of Republic Act Numbered Three

thousand four hundred fifty-two, is hereby amended to read as
follows:
“SECTION 1. It is hereby declared to be the policy of the

Government that in order to stabilize the price of palay, rice and
corn, it shall engage in the purchase of these basic foods, through
a system of payment against warehouse receipt or quedan from
those tenants, farmers, growers, producers and landowners in the
Philippines who wish to dispose of their produce at a price that
will afford them a fair and just return for their labor and capital
investment, and whenever circumstances brought about by any
cause, natural or artificial, should so require, shall sell and dispose
of these commodities to the consumers at areas of consumption at a
price that is within their reach.
“Under the system of payment against warehouse receipt

or quedan, any bonded warehouseman licensed under the General
Bonded Warehouse Law (Act No. 3893), as amended, who, after
proper application with the Administration and approval of his credit
standing by an Administration-designated bank, is appointed as an
RCA bonded warehouseman shall immediately accept for deposit
palay or corn which shall be purchased by the Administration
from the above-named producers. The producer will then be issued
125
a warehouse receipt or quedan immediately which will embody

within its written or printed forms the essential terms required by
the Warehouse Receipt Law (Act No. 2137). Upon presentation of
the said quedan or receipt to any RCA designated bank it shall be
paid immediately by the latter in its full face value at the price fixed
by the Administration.
“In designating banks and determining the amount of money

to be deposited therewith for the purpose of paying rice or corn sold to
the Administration, the latter shall consider the financial standing
of such banks as certified to by the Central Bank: Provided, that
only Filipino banks shall be designated as RCA banks.”
XXX XXX XXX
SEC. 6. Section fifteen of the same Act is hereby amended to

read as follows:
“SEC. 15. Any person who shall violate any provision of this
Act or any rule and regulation promulgated pursuant thereto shall
be punished by a fine of not less than two thousand pesos nor more
than ten thousand pesos and imprisonment of not less than five
(5) months nor more than five (5) years. If the offender is a public
official and/or employee, he shall, in addition, suffer perpetual
disqualification to hold public office.
SEC. 7. Repealing Clause. – All Acts, executive orders,

proclamations and regulations and parts thereof which are
inconsistent with the provisions of this Act are hereby repealed.
SEC. 8. Effectivity. – This Act shall take effect upon its

approval.
APPROVED, March 8, 1966.
126
AN ACT TO SAFEGUARD THE HEALTH OF THE PEOPLE

AND MAINTAIN THE DIGNITY OF THE NATION BY
DECLARING IT A NATIONAL POLICY TO PROHIBIT THE
COMMERCIAL IMPORTATION OF TEXTILE ARTICLES
COMMONLY KNOWN AS USED CLOTHING AND RAGS

SECTION 1. It shall be unlawful for any person, association

or corporation to introduce into any point in the Philippines textile
articles commonly known as used clothing and rags, except when
these are imported under Subsections “i”, “j”, “k”, “l”, “n”, and “v”
of Section 105 of Republic Act Numbered Nineteen hundred and
thirty-seven.
SEC. 2. The penalty of fine of not less than two hundred

pesos nor more than twenty thousand pesos and imprisonment of
not less than two years nor more than five years, shall be imposed
upon persons found guilty of violation of the provision of this Act:
Provided, That in the case of aliens, the penalty to be imposed shall
consist of the payment of the fine hereinabove provided for and that of
immediate deportation without any further proceedings on the part
of any Deportation Board: Provided, further, That if the violation
is committed by the manager, representative, director, agent or
employee of any natural or juridical person in the interest of the
latter, such violation shall render the employer liable to the penalty
corresponding to the offense, without prejudice to the imposition
of the corresponding penalty, either personal or pecuniary or both,
upon the manager, representative, director, agent or employee,
committing the violations: Provided, furthermore, That in the
case of the violation being committed by or in the interest of a
foreign juridical person duly licensed to engage in business in the
Philippines, the person or persons directly or indirectly involved in
the importation shall suffer the penalties herein provided for and the
revocation of such license and perpetual disqualification to engage
127
in business in the Philippines shall form part of the penalty to be

imposed: Provided, also, That if the act committed by a public officer
or employee is penalized by any other law, the penalties prescribed
in the law punishing the offense shall be imposed in addition to those
prescribed herein and that of perpetual absolute disqualification:
Provided, finally, That used clothing and rags imported in violation
of this Act shall be burned in the presence of a representative of the
General Auditing Office, Department of Finance and of the Office
of the President, without the forfeiture proceedings provided in
Republic Act Numbered Nineteen hundred and thirty-seven.
SEC. 3. All Acts, rules and regulations inconsistent with

this Act are hereby repealed.
128
AN ACT PUNISHING THE WITHHOLDING OF THE RELEASE

OF THE TEN PERCENT SHARE OF THE BARRIO IN
REAL ESTATE TAXES, AMENDING FOR THE PURPOSE
REPUBLIC ACT NUMBERED TWENTY-THREE HUNDRED
SEVENTY, OTHERWISE KNOWN AS THE BARRIO
CHARTER

SECTION 1. Republic Act Numbered Twenty-three hundred

seventy, otherwise known as the Barrio Charter, is hereby amended
by inserting between Section fifteen and sixteen thereof the following
new section:
“SEC. 15-A. Release of the ten percent share in real estate

taxes ministerial; Punishment for withholding. – The release of the
ten percent share in the real estate taxes accruing and paid for to
a barrio as herein provided is declared ministerial. Any officer who
without legal ground shall withhold the release of such share to a
barrio entitled to it on or before December thirty-one of each year
and on or before June thirty of each year shall be punished with a
fine of not less than fifty pesos nor more than two hundred pesos, or
by imprisonment for not less than fifteen days and not more than
two months, or both: Provided, however, That this law shall not be
effective insofar as barrios where the barrio treasurers have not
posted the necessary bond as required by existing laws.”
129
AN ACT AMENDING CERTAIN SECTIONS OF THE TARIFF AND

CUSTOMS CODE OF THE PHILIPPINES

SECTION 1. The Tariff and Customs Code of the Philippines

is hereby amended by inserting between Sections thirty-five
hundred and twelve and thirty-five hundred and fourteen thereof,
the following new section:
“Sec. 3513. Reward to persons instrumental in the discovery

and seizure of smuggled goods.— To encourage the public and
law-enforcement personnel to extend full cooperation and do their
utmost in stamping out smuggling, a cash reward equipment
to twenty per centum of the fair market value of the smuggled
and confiscated goods shall be given to the officers and men and
informers who are instrumental in the discovery and seizure of such
goods in accordance with the rules and regulations to be issued by
the Secretary of Finance.
“The provisions of this section, and not those of Republic Act

Numbered Twenty-three hundred and thirty-eight, shall govern the
giving of reward in cases covered by the former.”
SEC. 2. Section thirty-six hundred one of the same Code is

hereby amended to read as follows:
“SEC. 3601. Unlawful Importation.— Any person who shall

fraudulently import or bring into the Philippines, or assist in so
doing, any article, contrary to law, or shall receive, conceal, buy,
sell, or in any manner facilitate the transportation, concealment,
or sale of such article after importation, knowing the same to have
been imported contrary to law, shall be guilty of smuggling and
shall be punished with:
130
“1. A fine of not less than fifty pesos more than two hundred
pesos and imprisonment of not less than five days nor more than
twenty days, if the appraised value, to be determined in the manner
prescribed under the Tariff and Customs Code, including duties and
taxes, of the article unlawfully imported does not exceed twenty-five
pesos;
“2. A fine of not less than eight hundred pesos nor more than
five thousand pesos and imprisonment of not less than six months
and one day nor more than four years, if the appraised value, to be
determined in the manner prescribed under the Tariff and Customs
Code, including duties and taxes, of the article unlawfully imported
exceeds twenty-five pesos but does not exceed fifty thousand pesos;
“3. A fine of not less than six thousand pesos nor more than
eight thousand pesos and imprisonment of not less than five years
and one day nor more than eight years, if the appraised value, to be
determined in the manner prescribed under the Tariff and Customs
Code, including duties and taxes, of the article unlawfully imported
is more than fifty thousand pesos but does not exceed one hundred
fifty thousand pesos.
“4. A fine of not less than eight thousand pesos nor more
than ten thousand pesos and imprisonment of not less than eight
years and one day nor more than twelve years, if the appraised value,
to be determined in the manner prescribed under the Tariff and
Customs Code, including duties and taxes, of the article unlawfully
imported exceeds one hundred fifty thousand pesos.
“5. The penalty of prision mayor shall be imposed when the

crime of serious physical injuries shall have been committed and
the penalty of reclusion perpetua to death shall be imposed when
the crime of homicide shall have been committed by reason or on the
occasion of the unlawful importation.
“In applying the above scale of penalties, if the offender is an

alien and the prescribed penalty is not death, he shall be deported
after serving the sentence without further proceeding for deportation.
131
If the offender is a government official or employee, the penalty

shall be the maximum as hereinabove prescribed and the offender
shall suffer an additional penalty of perpetual disqualification from
public office, to vote and to participate in any public election.
“When, upon trial for a violation of this section, the defendant

is shown to have had possession of the article in question, possession
shall be deemed sufficient evidence to authorize conviction, unless
the defendant shall explain the possession to the satisfaction of
the court: Provided, however, That payment of the tax due after
apprehension shall not constitute a valid defense in any prosecution
under this section.”
SEC. 3. Section thirty-six hundred two of the same code is

“SEC. 3602. Various fraudulent practices against customs

revenue.—Any person who makes or attempts to make any entry
of imported or exported article by means of any false or fraudulent
invoice, declaration, affidavit, letter, paper, or by any means of any
false statement, written or verbal, or by any means of any false or
fraudulent practice whatsoever, or knowingly effects any entry of
goods, wares or merchandise, at less than true weight or measures
thereof or upon a false classification as to quality or value, or by
the payment of less than the amount legally due, or knowingly and
willfully files any false or fraudulent entry or claim for the payment
of drawback or refund of duties upon the exportation of merchandise,
or makes or files any affidavit, abstract, record, certificate or other
document, with a view to securing the payment to himself or others
of any drawback, allowance, or refund of duties on the exportation
of merchandise, greater than that legally due thereon, or who shall
be guilty of any willful act or omission, shall, for each offense,
be punished in accordance with the penalties prescribed in the
preceding section.”
SEC. 4. With respect to the application of the penalties

the degree of participation of the offender, whether as principal,
accomplice or accessory, and the appreciation of mitigating,
132
aggravating, or alternative circumstances, the provisions of the

Revised Penal Code shall govern.
SEC. 5. Sections thirty-six hundred three, thirty-six hundred

four, thirty-six hundred five, thirty-six hundred six, thirty-six
hundred seven, thirty-six hundred eight, thirty-six hundred nine,
and thirty-six hundred ten of the same Code are hereby amended to
read as follows:
“SEC. 3603. Failure to Report Fraud.— Any master, pilot in

command or other officer, owner or agent of any vessel or aircraft
trading with or within the Philippines and any employees of the
Bureau of Customs, who, having cognizance of any fraud upon the
customs revenue, shall fail to report all information relative thereto
to the Collector, as by law required, shall be punished by a fine of
not more than five thousand pesos and imprisonment for not more
than one year. If the offender is an alien, he shall be deported after
serving the sentence. If the offender is public official of employee, he
shall suffer additional penalty of perpetual disqualification to hold
public office, to vote and to participate in any election.
“SEC. 3604. Statutory offenses of officials and employees.—

Every official, agent or employee of the Bureau of Customs or of
any other agency of the government charged with the enforcement
of the provisions of this Code, who is guilty of any delinquency
hereinbelow indicated shall be punished with a fine of not less
than five thousand pesos nor more than fifty thousand pesos and
imprisonment for not less than one year nor more than ten years
and perpetual disqualification to hold public office, to vote, and to
participate in any public election:
“a. Those guilty of extortion or willful oppression under

color of law.
“b. Those who knowingly demand other or greater sums

than are authorized by law or receive any fee, compensation, or
reward, except as by law prescribed, for the performance of any
duty.
133
“c. Those who willfully neglect to give receipts, as by law

required, of any sum collected in the performance of duty, or who
willfully neglect to perform any of the duties enjoined by law.
“d. Those who conspire or collude with another or others to

defraud the customs revenue or otherwise violate the law.
“e. Those who willfully make opportunity for any person

to defraud the customs revenue or who do or fail to do any act with
intent to enable any person to defraud said revenue.
“f. Those who negligently or designedly permit the violation

of the law by any other person.
“g. Those who make or sign any false entry or entries in

any book, or make or sign any false certificate or return in any case
where the law requires the making by them of such entry, certificate
or return.
“h. Those who, having knowledge or information of a

violation of the tariff and customs law or any fraud committed on
the revenue collectible by the Bureau of Customs, fail to report such
knowledge or information to their superior official or to report as
otherwise required by law.
“i. Those who, without the authority of law, demand

or accept or attempt to collect directly or indirectly as payment
or otherwise, any sum of money or other thing of value for the
compromise, adjustment, or settlement of any charge or complaint
for any violation or alleged violation of law.
“SEC. 3605. Concealment or Destruction of Evidence of Fraud.

– Any person who willfully conceals or destroys, any invoice, book or
paper relating to any article liable to duty, after an inspection thereof
has been demanded by the Collector of any collection district, or at
any time conceals or destroys any such invoice, book or paper for
the purpose of suppressing any evidence of fraud therein contained,
134
shall be punished with a fine of not more than five thousand pesos
and imprisonment for not more than two years.
“SEC. 3606. Affixing Seals.— Any person who, without

authority, affixes, or attaches a customs seal, fastening, or
mark, or any seal, fastening, or mark purporting to be a customs
seal, fastening or mark to any vessel, vehicle on land, sea or air,
warehouse, or package, shall be punished with a fine not more than
twenty thousand pesos or imprisonment of not more than five years,
or both. If the offender is an alien, he shall be deported after serving
the sentence; and if he is a public official or employee, he shall suffer
an additional penalty of perpetual disqualification to hold public
office, to vote and to participate in any election.
“SEC. 3607. Removal, breakage, alteration of marks.— Any

person who without authority, willfully removes, breaks, injuries,
or defaces or alters any customs seal or other fastening or mark
placed upon any vessel, vehicle on land, sea or air warehouse or
package containing merchandise or baggage in bond or in customs
custody, shall be punished with the penalty prescribed in Section
thirty-six hundred six hereof.
“SEC. 3608. Removing or repacking goods in warehouse.—

Any person who fraudulently conceals, removes, or repacks
merchandise in any warehouse or fraudulently alters, defaces or
obliterates any marks or numbers placed upon packages deposited
in such warehouse, or shall aid or abet in any such acts or omission,
shall be punished with the penalties prescribed in Section thirty-six
hundred six hereof.
“Merchandise so concealed, removed, or repacked, or

packages upon which any marks or numbers have been so altered,
defaced or obliterated, or the value thereof, shall be forfeited to the
government.
“SEC. 3609. Removing goods from customs custody. — Any

person who maliciously enters any warehouse, or any vehicle laden
with or containing merchandise with intent unlawfully to remove
135
therefrom any merchandise or baggage in such vessel, vehicle or

warehouse or otherwise in customs custody or control, or any person
who receives or transports any merchandise or baggage unlawfully
removed from any such vessel, vehicle or warehouse, or shall aid
or abet such removal, shall suffer the penalties provided in Section
thirty-six hundred eight hereof.
“SEC. 3610. Violations of Tariff and Customs Laws and

Regulations in General.— Any person who violates a provision of
this Code or regulations pursuant thereto, for which delinquency no
specific penalty is provided, shall be punished by a fine of not more
than one thousand pesos or by imprisonment for not more than
one year, or both. If the offender is an alien, he shall be deported
after serving the sentence; and if the offender is a public official
or employee, he shall suffer disqualification to hold public office, to
vote and participate in any public election for ten years.”
136
AN ACT AMENDING CERTAIN SECTIONS OF COMMONWEALTH

ACT NUMBERED FOUR HUNDRED SIXTY-SIX, AS
AMENDED, OTHERWISE KNOWN AS THE NATIONAL
INTERNAL REVENUE CODE

Philippines in Congress Assembled:
SECTION. 1. Section one hundred seventy-four of

Commonwealth Act Numbered Four hundred sixty-six, otherwise
known as the National Internal Revenue Code, is hereby further
“SEC. 174. Unlawful possession or removal of articles subject

to specific tax without payment of tax.— Any person who owns and/
or is found in possession of imported articles subject to specific
tax, the tax on which had not been paid in accordance with law or
any person who owns and/or is found in possession of imported tax
exempt articles other than those to whom they are legally issued
shall be punished by:
“1. A fine of not less than fifty pesos nor more than two
hundred pesos and imprisonment of not less than five days nor more
than thirty days, if the appraised value, to be determined in the
manner prescribed in the Tariff and Customs Code, including duties
and taxes, of the article does not exceed five hundred pesos.
“2. A fine of not less than six hundred pesos nor more than
five thousand pesos and imprisonment of not less than six months
and one day nor more than four years, if the appraised value, to
be determined in the manner prescribed in the Tariff and Customs
Code, including duties and taxes, of the article exceeds five hundred
pesos but does not exceed fifty thousand pesos.
“3. A fine of not less than five thousand pesos nor more than
eight thousand pesos and imprisonment of not less than four years
137
and one day nor more than eight years, if the appraised value to
be determined in the manner prescribed in the Tariff and Customs
Code, including duties and taxes, of the article is more than fifty
thousand pesos but does not exceed one hundred fifty thousand
pesos.
“4. A fine of not less than eight thousand pesos nor more
than ten thousand pesos and imprisonment of not less than eight
years and one day nor more than twelve years, if the appraised
value, to be determined in the manner prescribed in the Tariff and
Customs Code, including duties and taxes, of the article exceeds one
hundred fifty thousand pesos.
“In applying the above scale of penalties, if the offender is an

alien, he shall be deported after serving the sentence without further
proceedings for deportation. If the offender is a government official
or employee, the penalty shall be the maximum as hereinabove
prescribed and, the offender shall suffer an additional penalty of
perpetual disqualification for public office, to vote and to participate
in any election.
“Any person who is found in possession of locally manufactured

articles subject to specific tax, the tax on which has not been paid
in accordance with law, or any person who is found in possession of
such articles which are exempt from specific tax other than those
to whom the same is lawfully issued shall be punished with a fine
of not less than ten times the amount of the specific tax due on the
articles found but not less than two hundred pesos nor more than
five thousand pesos and imprisonment of from four months and one
day to four years and two months. Any manufacturer, owner, or
person in charge of any article subject to a specific tax who removed
or allows or procures the unlawful removal of any such article from
the place of manufacture or bonded warehouse, upon which article
the specific tax has not been paid in the time and manner required,
and any person who knowingly aids or abets in the removal of such
articles as aforesaid, or conceals the same after illegal removal,
shall for the first offense be punished with a fine of not less than
ten times the amount of the specific tax due on the articles, but not
138
less than five hundred pesos nor more than ten thousand pesos and
imprisonment of not less than six months and one day but not more
than six years.
“Every manufacturer so offending shall, before continuing

or resuming business, execute a bond in double the amount of his
original bond and containing the same conditions.
“The mere unexplained possession of articles subject to

specific tax, the tax on which has not been paid in accordance with
law, shall be punished under this section: Provided, however, That
payment of the tax due after apprehension shall not constitute a
valid defense in any prosecution for violation of this section.
“Any ordinance that provides a different penalty for acts

punishable under this section is hereby repealed.”
SEC. 2. Section one hundred seventy-five of the same Code,

as amended, is hereby further amended to read as follows:
“SEC. 175. Punishment for subsequent offenses.— In case of

reincidence, the penalty to be imposed for unlawful possession of
imported articles shall be the maximum of the penalty prescribed
under the first paragraph of Section one hundred seventy-four for the
offense constituting the reincidence, and the penalty to be imposed
for unlawful possession of locally manufactured articles shall be a
fine of not less than ten times the amount of the specific tax due on
the articles possessed but not less than two hundred pesos nor more
than five thousand pesos and by imprisonment for not less than six
months and one day but not more than five years and two months.
The penalty for unlawful removal shall be a fine ten times the
amount of the specific tax due on the articles removed but not less
than one thousand pesos and imprisonment for not less than eight
years but not more than twelve years. If the offense be committed by
the owner or the manufacturer, or with his connivance, the factory
and the ground upon which it stands, including the machinery and
apparatus used in and about the business, shall be forfeited.”
139
SEC. 3. With respect to the application of the penalties,

the degree of participation of the offender, whether as principal,
accomplice or accessory, and the appreciation of mitigating,
aggravating, or alternative circumstances, the provisions of the
Revised Penal Code shall govern.
SEC. 4. Section three hundred forty-five of the same Code is

“SEC. 345. Statutory offenses of officials and employees. Every

official, agent or employee of the Bureau of Internal Revenue or of any
other agency of the government charged with the enforcement of the
provisions of this Code, who is guilty of any delinquency hereinbelow
specified or who falls within any of the classes hereinbelow indicated
shall be punished with a fine of not less than five thousand pesos
nor more than fifty thousand pesos and imprisonment for not less
than one year nor more than ten years:
“a. Those guilty of extortion or willful oppression under

color of law.
“b. Those who knowingly demand other or greater sums

than are authorized by law or receive any fees, compensation or
reward, except as by law prescribed, for the performance of any
duty.
“c. Those who willfully neglect to give receipts, as by law

required, for any sums collected in the performance of duty, or who
willfully neglect to perform any of the duties enjoined by law.
“d. Those who conspire or collude with another or others to

defraud the revenues or otherwise violate the law.
“e. Those who willfully make opportunity for any person to

defraud the revenues, or who do or omit to do any act with intent to
enable any other person to defraud the revenues.
“f. Those who negligently or designedly permit the violation

of the law by any other person.
140
“g. Those who make or sign any false entry or entries in

or return.
“h. Those who, having knowledge or information of a

violation of this Code or any fraud committed on the revenues
collectible by the Bureau of Internal Revenue, fail to report such
knowledge or information to their superior officer or to report as
otherwise required by law.
“i. Those who, without the authority of law, demand

or otherwise, any sum of money or other thing of value for the
for any violation or alleged violation of law.”
SEC. 5. Section three hundred forty-six of the same Code is

“SEC. 346. Reward to persons instrumental in the discovery

and seizure of smuggled goods. – To encourage the public and law-
enforcement personnel to extend full cooperation and do their
utmost in stamping out smuggling, a cash reward equipment
to twenty per centum of the fair market value of the smuggled
and confiscated goods shall be given to the officers, and men and
informers who are instrumental in the discovery and seizure of such
goods in accordance with the rules and regulations to be issued by
the Secretary of Finance.
“The provisions of this section, and not those of Republic Act

Numbered Twenty-three hundred and thirty-eight, shall govern the
giving of reward in cases covered by the former.”
141
AN ACT REGULATING THE AWARD OF CONTRACTS

FOR THE SUPPLY TO, OR PROCUREMENT BY,
ANY GOVERNMENT-OWNED OR CONTROLLED
CORPORATION, COMPANY, AGENCY OR MUNICIPAL
CORPORATION OF MATERIALS, EQUIPMENT, GOODS
AND COMMODITIES, AND PROVIDING PENALTY FOR
THE VIOLATION THEREOF

SECTION 1. No contract either through a public bidding

or negotiated contract for the supply to, or procurement by, any
government-owned or controlled corporation, company, agency
or municipal corporation of materials, equipment, goods and
commodities shall be awarded to any contractor or bidder who is
not a citizen of the Philippines or which is not a corporation or
association at least sixty percent of the capital of which is owned by
Filipino citizens, except, as to a citizen, corporation or association
of a country the laws or regulations of which grant similar rights or
privileges to citizens of the Philippines. In the latter case the Flag
Law shall continue to be applicable.
SEC. 2. Any violation of this Act shall be punished with a fine

of not less than five thousand pesos and not more than ten thousand
pesos and imprisonment of not less than two years and not more
than four years. If the violation is committed by a corporation or
association, the penalty shall be imposed upon the president, director
or directors, managers, managing partner, or other official thereof
responsible for such violation. Any alien violating or responsible
for the violation of this Act shall, upon completion of the service
of sentence, be deported without any further proceedings on the
part of the Deportation Board. Any government official or employee
who violates this Act, shall, in addition to the penalty which may
be imposed upon him as principal, be temporarily or perpetually
disqualified from holding any public office.
142
SEC. 3. Any law or parts of laws inconsistent herewith are

hereby repealed.
143
AN ACT GRANTING FURTHER AUTONOMOUS POWERS TO

LOCAL GOVERNMENTS

SECTION 1. Short Title. – This Act shall be known as the

Decentralization Act of 1967.
SEC. 2. Declaration of Policy. – It is hereby declared to be

the policy of the State to transform local governments gradually
into effective instruments through which the people can in a
most genuine fashion, govern themselves and work out their own
destinies.
It is therefore, the purpose of this Act to grant to local

governments greater freedom and ampler means to respond to the
needs of their people and promote their prosperity and happiness
and to effect a more equitable and systematic distribution of
governmental powers and resources. To this end, local governments
henceforth shall be entrusted with the performance of those
functions that are more properly administered in the local level and
shall be granted with as much autonomous powers and financial
resources as are required in the more effective discharge of these
responsibilities.
SEC. 3. Additional Powers and Functions. — The provincial

and city governments are hereby empowered to undertake field
agricultural extension work and rural health work whenever
deemed to be necessary by the Provincial and Municipal Boards or
City Councils to assist or supplement existing national programs
or services in their respective areas of jurisdiction. These services
shall be administered in accordance with the policies and programs
formulated by the national offices concerned. The National
Government shall render technical, financial and other assistance
to local governments in connection with said services.
144
To enable the provincial and city governments to

undertake the aforementioned functions, they shall retain the
amounts heretofore contributed by provincial, city and municipal
governments to the National Government for field agricultural
extension and rural health work, which shall accrue to the general
fund of the province; Provided, That upon the effectivity of this Act,
all personnel performing the above services whose salaries are paid
out of the amounts contributed by the provincial and municipal
governments, shall be absorbed by the provinces or municipalities
where they are regularly or presently assigned; Provided, however,
That the personnel heretofore mentioned shall not be laid off as a
consequence of the provision of this section, and shall forthwith be
subject to civil service law, rules and regulations; And Provided,
further, That in cases of subsequent vacancies the same shall be
filled in accordance with the pertinent and applicable provisions of
this Act.
As a result of the provisions of this section, the Budget

Commissioner shall make the necessary and corresponding
adjustments in the national budget.
SEC. 4. Appointment of Heads, Assistant Heads of Local

Offices and Their Subordinates. – The Provincial Assessor,
Provincial Agriculturist and other heads of offices entirely paid out
of provincial funds and their respective assistants shall, subject
to civil service law, rules and regulations, be appointed by the
Provincial Governor: Provided, however, That this section shall
not apply to Judges, Auditors, Fiscals, Division Superintendents of
Schools, Supervisors, Principals, Provincial Treasurers, Provincial
Health Officers and District Engineers.
The City Assessor, City Agriculturist, City Chief of Police

and City Chief of Fire Department and other heads of offices entirely
paid out of city funds and their respective assistants or deputies
shall, subject to civil service law, rules and regulations, be appointed
by the City Mayor: Provided, however, That this section shall not
apply to Judges, Auditors, Fiscals, City Superintendents of Schools,
Supervisors, Principals, City Treasurers, City Health Officers and
City Engineers.
145
The Municipal Chief of Police and Municipal Attorney and

other heads of offices entirely paid out of municipal funds and
their respective assistants or deputies shall, subject to civil service
law, rules and regulations, be appointed by the Municipal Mayor:
Provided, however, That this section shall not apply to Judges and
Municipal Treasurers.
In cases of vacancies in the offices of heads and assistant heads

of local offices, the governor or mayor shall fill them by appointment
from a list of the five next ranking eligible and qualified persons as
certified by the Civil Service Commissioner: Provided, That these
five persons shall have stated beforehand that they will assume the
position, if appointed.
The ranking shall be based on such factors as class of province,

city or municipality where the vacancy occurs, seniority, efficiency
rating, extraordinary qualifications and other supplementary
criteria as may be prescribed by the Civil Service Commission.
All other employees, except teachers, paid out of provincial,

city or municipal general funds, road and bridge funds, school
funds, and other local funds shall, subject to civil service law, rules
and regulations, be appointed by the Provincial Governor, City or
Municipal Mayor upon recommendation of the office head concerned.
Such recommendation shall be made within fifteen days after the
existence of a vacancy, otherwise the recommendation of the office
head concerned shall be deemed waived.
Upon effectivity of this Act, all officials and other employees

appointed by the local chief executive shall be paid entirely out of
local funds.
Within thirty days after the existence of a vacancy, provided

that funds are available as certified by the provincial, city or
municipal treasurer concerned, the local chief executive concerned
shall appoint a suitable person to fill such vacancy. In the case of
a chief or assistant chief of a local office, appointments for such
146
vacancies shall be submitted within the same period prescribed

above.
The suspension, removal, transfer and other personnel action

on the heads of offices and their other employees in provinces, cities
and municipalities shall be subject to the provisions of civil service
law, rules and regulations.
The maximum salary scales for officials and employees

authorized under existing law for first class provinces, cities and
municipalities may, subject to the proviso herein, also be applicable
to officials and employees of all other lower class provinces, cities
and municipalities, subject to availability of funds and observance
of civil service law, rules and regulations: Provided, however, That
an official or employee can be eligible for the salary scales of the next
higher class province, city or municipality after every two years of
continuous service.
SEC. 5. Suspension and Removal of Elective Local Officials.

– Any provisions of law to the contrary notwithstanding, the
suspension and removal of elective local officials shall be governed
exclusively by the provisions of this section.
The grounds for suspension and removal of elective local

officials are the following: (a) disloyalty to the Republic of the
Philippines; (b) dishonesty; (c) oppression; and (d) misconduct in
the office.
Written subscribed and sworn charges against any elective

provincial and city official shall be preferred before the President
of the Philippines, against any elective municipal official before the
provincial governor or the secretary of the provincial board concerned;
and against any elective barrio official before the municipal or city
mayor or the municipal or city secretary concerned.
Within seven days after the charges are preferred, the

President, Governor, or Mayor, as the case may be, or his duly
authorized representative, as provided in the preceding paragraph,
147
shall notify the respondent of such charges. The President, Provincial

Board and City or Municipal Council, as the case may be, shall hear
and investigate the truth or falsity of the charges within ten days
after receipt of such notice: Provided, That no investigation shall
commence or continue within ninety days immediately prior to an
election. The preventive suspension of the respondent officer shall
not extend beyond sixty days after the date of his suspension. At the
expiration of sixty days, the suspended officer shall be reinstated
in office without prejudice to the continuation of the proceedings
against him until their completion, unless the delay in the decision
of the case is due to the fault, neglect or request of the suspended
officer, in which case, the time of delay shall not be counted in
computing the time of suspension: Provided, however, That if the
suspended officer shall have been found guilty as charged before the
expiration of the thirty days, his suspension, in the case of municipal
and barrio officials, may continue until the case is finally decided by
the Provincial Board.
The respondent shall have full opportunity to appear and

defend himself in person or by counsel, to confront and cross-
examine the witnesses against him and to require the attendance of
witnesses and the production of documentary evidence in his favor
through the compulsory process of subpoena or subpoena duces
tecum.
Within thirty days after the end of investigation, the

President, Provincial Board, City or Municipal Council, as the
case may be, shall render its decision in writing, stating clearly
and distinctly the facts and the reasons for such decision and shall
immediately furnish copies of the decision to the respondent and
all interested parties: Provided, That the penalty of suspension
shall not exceed the unexpired term of the respondent: Provided,
further, That the penalty of suspension or removal shall not be a
bar to the candidacy of the respondent so suspended or removed for
any elective public office as long as he meets the qualifications so
required for the office: And Provided, finally, That the decision shall
not preclude the filing of criminal actions arising from the same
charges as provided for under existing laws.
148
In case of appeals from decisions of suspension or removal,

the provisions of existing laws shall continue to be applicable.
SEC. 6. Prohibition Against Practice.— A member of the

Provincial Board or City or Municipal Council shall not appear as
counsel before any court in any civil case wherein the province, city
or municipality, as the case may be, is the adverse party: Provided,
however, That no member of the Provincial Board shall so appear
except in behalf of his province in any civil case wherein any city in
the province is the adverse party whose voters are en-franchised to
vote for provincial officials, nor shall such member of the Provincial
Board or City or Municipal Council appear as counsel for the accused
in any criminal case wherein an officer or employee of said province,
city or municipality is accused of an offense committed in relation to
the latter’s office, nor shall he collect any fee for his appearance in
any administrative proceedings before provincial, city or municipal
agencies of the province, city or municipality, as the case may be, of
which he is an elected official.
The provisions of this Section shall likewise apply to

provincial governors and city and municipal mayors.
SEC. 7. Succession to Office of Vice-Governor and Vice-

Mayor. – In case a vacancy occurs in the office of Vice- Governor
or Vice-Mayor, the board or council member, as the case may be,
who obtained the highest number of votes, or in cases of provinces,
cities, or municipalities where the provincial, city or municipal
board members are elected by districts, the highest percentage
of total votes cast in the last election, shall succeed to the officer:
Provided, however, That such member meets all the requirements
for the position: Provided, further, That in case of a tie, the pertinent
provisions of the Revised Election Code shall apply.
SEC. 8. Filling of Special Vacancies in Local Legislative

Bodies. –Vacancy occurring in Board or Council as a consequence of
the preceding Section shall be filled automatically by the Board or
council member who obtained the second highest number of votes,
or if the provincial, city or municipal board members are elected by
149
districts, the second highest percentage of total votes cast in the

last election. Succeeding vacancy or vacancies as a result of such
succession shall be filled automatically by other members as ranked
on the basis of the number of votes or percentage of votes received.
Vacancies occurring in the board or council created through

death, resignation, permanent incapacity, removal from office or
as a consequence of the preceding paragraph prior to sixty days of
a presidential election shall be filled by special election coinciding
with such presidential election. Any person so elected shall be last in
the ranking of board or council members. If the vacancy occurs after
such period, the President alone, in the case of elective provincial
and city officials and the provincial governors in the case of elective
municipal officials, shall appoint qualified person belonging to the
political party or faction of the officer whom he is to replace, upon
recommendation of the said political party or faction and who shall
serve the unexpired term of the office: Provided, That in cities where
councilors are elected by district, the qualified person shall come
from the same district where the vacancy exists. Such appointment
shall be made within fifteen days after the recommendation of the
respective political party or faction has been received. In case of
temporary vacancies, the provisions of existing laws shall continue
to be applicable.
SEC. 9. Filling of Elective Offices in Newly Created Provinces,

Cities, Municipalities or Municipal Districts. – Elective offices in
any new province, city, or municipality or municipal district shall
be filled by regular or special elections to coincide with the next
regular presidential or local election: Provided, That if it is created
within thirty days before a regular presidential or local election ,
the said vacancies shall be filled as hereinafter provided in the next
succeeding section.
SEC. 10. Filling of Elective Offices in Newly Classified

Provinces, Cities, Municipalities or Municipal Districts. In the
event of reclassification of provinces, cities or municipalities where
additional members of the Provincial Board, and City or Municipal
Board or Council are to be appointed, such additional members shall
150
be appointed upon recommendation of the head of the Provincial,

City or Municipal Chapter of the political party which obtained the
largest total number of votes in the province, city or municipality,
as the case may be, in the last preceding elections for local officials.
SEC. 11. Actions of Provincial, Municipal and City Officials

or Provincial Boards Declared Immediately Effective.
I. The following actions of provincial officials or boards

and councils, as provided for in the pertinent sections of the Revised
Administrative Code shall take effect without the need of approval
or direction from any official of the national government:
(a) Permission for officials to absent themselves from the

province under Section 2073;
(b) Compensation for persons appointed to temporary

services under Section 2077;
(c) Payment of salary accruing pending suspension under

Section 2079;
(d) Functions of provincial treasurers, specifically as agent

of the Philippine National Bank under Section 2089 (h);
(e) Duties of elective members, specifically their performance

of ministerial duties under Section 2096;
(f) Minutes of meetings of provincial boards under Section

2100;
(g) Purchase or maintenance of draft animals for breeding

purpose under Section 2105 (b);
(h) Powers enumerated in Section 2106, except letters (a)

and (f);
(i) Conventions of mayors under Section 2108;
151
(j) Deposit of surplus funds under Section 2110;
(k) Dis-establishment of the Exhibition Fund under Section

2112;
(l) Providing and maintaining wharves, piers and docks
under Section 2113 (b);
(m) Subsidizing or acquiring, operating and maintaining

means of water transportation under Sections 2113 (c) and 2115;
(n) Expenditures from the Non-Christian Inhabitants’

Fund under Section 2114;
(o) Loans from municipal funds for permanent public works

and school purposes under Section 2117;
(p) Restriction upon limit of disbursement under Section

2122;
(q) Designation of provincial toll roads, bridges and ferries

and fixing their rates under Section 2131;
(r) Collection and application of tolls under Section 2132;
(s) Establishment of a subprovincial treasury under Section

2141;
(t) Settling of municipal boundary disputes within the

same province only under Section 2167;
(u) Fixing of salaries of officials in capital of a province

under Section 2184;
(v) Additional compensation for treasurer under Section

2186;
(w) Passing by provincial board on legality of municipal

proceedings under Section 2233.
‘
152
II. The following actions by municipal officials or municipal

councils, as provided for in the pertinent sections of the Revised
Administrative Code shall take effect without the need of approval
or direction from any official of the national government: Provided,
That such actions shall be subject to approval or direction by the
Provincial Board:
(a) Authority to close thoroughfare under Section 2246;
(b) Aid to national and provincial charitable institutions

under Section 2248;
(c) Appropriations for exhibition purposes under Section

2293;
(d) Letting of municipal ferry, market or slaughterhouse to

highest bidder under Section 2319.
III. The provincial, city and municipal budgets shall become

effective upon the approval of the same by the respective provincial
boards, city councils or municipal boards of municipalities, if the
same were approved in compliance with the provisions of Republic
Act Numbered Twenty-two hundred and sixty-four, and for this
purpose the provisions of Republic Act Numbered Forty-four
hundred and seventy-seven inconsistent with the provisions of this
section or of Republic Act Numbered Twenty-two hundred and sixty
four are hereby repealed or modified accordingly.
All special funds except the road and bridge fund and the
public permanent improvement funds to the local governments are
hereby abolished and all moneys accruing to the local treasuries by
operation of existing laws which are hereby classified as local income
shall be consolidated into one general fund and shall be available
for local purposes upon appropriation by the local legislative bodies:
Provided, That the appropriations for the operation and maintenance
of schools, for health and sanitation, and for maintenance, repair
and construction of roads and bridges shall not be less than the
amounts received from tuition fees, municipal aids for health and
153
sanitation purposes and the manufactured oils allotment and motor

vehicle allotment, respectively: Provided, further, That national aids
and proceeds from loans and bond issues and other contributions
for specific purposes shall be appropriated and spent only for the
purpose for which the same have been obtained.
IV. The pertinent sections of the charters of cities are hereby

amended so as to declare the actions of city officials, or city boards
or councils similar to those actions enumerated above effective
without the need of approval or direction from any official of the
national government.
SEC. 12. Duties and Powers of Local Chief Executives Not

to be Subject to Direction or Review by any National Official. – The
following duties and powers of the provincial governors, city mayors,
and other local chief executives, where they are authorized by law
shall not be subject to direction or review by any national official:
(a) Initiation of any appropriate criminal action or

proceeding to draw the attention of the proper superior officer to the
dereliction of the official or employee involved;
(b) Approval of commutation of vacation, sick and maternity

leaves and of trips outside the city or province of employee appointed
by him, under Section 286 of the Revised Administrative Code;
(c) Authorizing payment of medical attendance, necessary

transportation, subsistence, hospital fees of injured employees
appointed by him and absence in such cases shall not be charged
against any leave credit, under Section 699 of the Revised
Administrative Code;
(d) Approval of the commutation of the transportation

allowances of chiefs of offices upon authority of the board or councils
as authorized by law; and
(e) Attendance in national conventions or similar meetings

of local chief executives as provided by law.
154
SEC. 13. Increase in Regular Allotment. – The allotment

share of provinces and cities as provided for in the penultimate
paragraph of Section eight, Commonwealth Act Numbered Five
hundred eighty-six, as amended by Republic Act Numbered Seven
hundred eighty-one, is hereby increased from ten to thirteen per
centum and the allotment share of municipalities exclusive of
cities as provided for in the same Code is hereby increased from
two to four per centum, provisions of existing laws to the contrary
notwithstanding. The basis of the allotment shall be the collections
during the preceding fiscal year, to be distributed among provinces,
cities and municipalities as follows: (a) seventy per centum on the
basis of population as shown by the latest official census, and (b)
thirty per centum in proportion to the land area.
SEC. 14. Retention, Release and Adjustment of Regular

Internal Revenue Allotment. – Within five days after the end of each
month, the treasury field cashiers to whom all collection agents
shall remit all their collections in each province shall retain from the
internal revenue collections accruing to the General Fund and remit
to the Provincial Treasurer an amount equivalent to one-twelfth of
the predetermined annual internal revenue regular allotment of
the province and municipalities under it, and to the city treasurer
an amount equivalent to one-twelfth of the pre-determined annual
internal revenue regular allotment of the city: Provided, That in
provinces where there are no treasury field cashiers, such personnel
shall be appointed. In case collections are remitted directly to the
National Treasurer, as in Manila and suburbs, he shall remit the
corresponding share to the city or provincial treasurer concerned
within the same period. The allotment of municipalities within each
province shall be distributed by the Provincial Treasurer concerned
within five days after receipt thereof.
Within ten days after the end of each month, the city or
provincial treasurer shall render a report to the Commissioner of
Internal Revenue showing the corresponding amount received by
the City or the respective amounts retained by the province and
released to the municipalities for the preceding month.
155
In cases where the monthly collections are not sufficient

to cover the regular allotment of a province, city or municipality,
the corresponding balances shall be released by the Bureau of
Internal Revenue within thirty days after the expiration of every
quarter to the Provincial Treasurer concerned in case of a province
or municipality, and to the city treasurer, in case of a city. The
corresponding balance for municipalities shall be released by
the Provincial Treasurer concerned within five days after receipt
thereof.
The Secretary of Finance shall promulgate the rules and

regulations for the proper implementation of this section.
SEC. 15. Apportionment of Income Tax Withheld from

Wages. – The net proceeds in every fiscal year representing the gross
collection of income tax withheld from wages under Supplement (A)
of Title two of the National Internal Revenue Code, as amended
by Republic Act Numbered Five hundred ninety, minus the refund
thereof authorized in the same fiscal year, shall, for purposes
of the excess income tax allotments, be credited equally among
municipalities.
SEC. 16. Release of Share of Provinces, Cities and

Municipalities from the Highway Special Fund. – Within thirty
days after the end of every quarter, all shares of provinces, cities
and municipalities from the Highway Special Fund, to which
they are entitled under Republic Act Numbered Nine hundred
seventeen, shall be released by the Bureau of Public Highways to
the respective local treasurers: Provided, That the provinces and
cities shall continue to appropriate the counterpart funds and no
releases shall be made unless counterpart funds are provided by the
local government where required: Provided, further, That the same
shall not be used for purposes other than those for which such funds
were released: Provided, still further, That no road shall be declared
as a national aid road by the provincial board and city or municipal
board council unless it shall form part of the integrated national
road system: Provided, finally, That the Secretary of Public Works
and Communications shall prescribe standards in the construction
and improvement of road and highway projects.
156
SEC. 17. Release of Other Funds. – Within ten days after

the end of each month, the share of provinces and cities from the
gross receipts of sweepstakes, horse races and lotteries, as provided
in Republic Act Numbered Eleven hundred sixty-nine, shall be
released to the provincial and city treasurers.
It shall be unlawful for any public officer or employee

concerned to withhold, or cause the withholding of any fund
apportion able under this section.
SEC. 18. Creation of Position of Provincial Engineer and City

Public Works Supervisor. – To enable the provincial governments
to administer directly public works and public highways projects
which are financed out of local funds, the positions of Provincial
Engineer and City Public Works Supervisor may be created and such
officials shall be appointed in such manner as is provided for under
Section four of this Act: Provided, That the present Public Works
District Engineer and Highway District Engineer shall continue to
undertake public works and public highways projects financed out
of national funds: And Provided, further, That the functions hitherto
performed by the District Engineer or District Highway Engineer,
in undertaking public works and public highways projects financed
out of local funds shall be transferred to local engineer.
SEC. 19. Creation of positions of Provincial Attorney and

City Legal Officer. – To enable the provincial and city governments
to avail themselves of the full time and trusted services of legal
officers, the positions of provincial attorney and city legal officer
may be created and such officials shall be appointed in such manner
as is provided for under Section four of this Act. For this purpose
the functions hitherto performed by the provincial and city fiscals
in serving as legal adviser and legal officer for civil cases of the
province and city shall be transferred to the provincial attorney and
city legal officer, respectively.
SEC. 20. Creation of Municipality or Municipal District.

– A municipality or municipal district shall be created and its
boundaries modified only by an Act of Congress. For this purpose,
157
Section sixty-eight of the Revised Administrative Code, as amended

is hereby repealed.
SEC. 21. Joint Local Government Reform Commission.

– There is hereby created a Joint Local Government Reform
Commission to be composed of three Senators, two should be from the
majority party and one from the minority party, to be designated by
the President of the Senate; three Congressmen, two should be from
the majority party and one from the minority party, to be designated
by the Speaker of the House of Representatives; and three other
members to be appointed by the President of the Philippines. The
members shall elect a chairman from among themselves.
The Commission shall have the following duties and

responsibilities:
(a) To conduct continuing studies on the appropriate role of

local governments as autonomous agencies in the administration of
governmental services; and
(b) To prepare a local government code to consist of a

Provincial Government Law, a Municipal Government Law, a Barrio
Law and a uniform charter for Chartered Cities to be submitted to
Congress.
The Commission shall be assisted by a Technical Staff which

shall be headed by an Executive Director and an Assistant Executive
Director. All personnel shall be appointed by the Chairman subject
to Civil Service Law, rules and regulations.
The amount of two hundred and fifty thousand pesos or such

amount thereof as may be necessary is hereby appropriated from
any fund of the national treasury not otherwise appropriated for
the operation of the Commission during the fiscal year ending June
thirty, nineteen hundred sixty-eight. Such sums as may be necessary
for the operating expenses of the commission in succeeding fiscal
years shall be included in the annual general appropriations Act.
158
SEC. 22. Penalties. – (a) Any public officer committing any

act or omission in violation of Sections six, eight, fourteen, sixteen,
seventeen and twenty-three of this Act shall be punished with
imprisonment of not less than six months nor more than one year or
a fine of not less than one nor more than two thousand pesos or both
at the discretion of the Court. (b) Any public officer violating any
provision of Section four and Section twenty-three of this Act shall
be punished with the same penalty prescribed above: Provided,
That said violation proven in a proper administrative proceeding
constitute misconduct in office and shall be sufficient cause for
suspension or dismissal of a public officer even if no criminal
prosecution is instituted against him: Provided, finally, That he
shall also suffer perpetual disqualification to hold any public office.
SEC. 23. Rights, Benefits and Privileges Maintained. –

Nothing in this Act, shall be construed as depriving any government
official or employee of his right to continue to hold office or
withdrawing or reducing his benefits and privileges as provided for
under existing law.
Implied power of a province, a city or municipality shall

be liberally construed in its favor. Any fair and reasonable doubt
as to the existence of the power should be interpreted in favor of
local government and it shall be presumed to exist. The general
welfare clause shall be liberally interpreted in case of doubt so as
to give more power to local governments in promoting the economic
condition, social welfare and material progress of the people in the
community.
SEC. 24. Separability Clause. – If, for any reason, any

section or provision of this Act shall be held to be unconstitutional
or invalid, no other section or provision of this Act shall be affected
thereby.
SEC. 25. Repealing Clause. – All laws and parts of law,

including Republic Act Numbered Forty hundred and ninety-two
and pertinent portions of city charters, which are inconsistent
with the provisions of this Act are hereby repealed and/or modified
159
accordingly: Provided, That rights already acquired and existing at

the time of its passage shall not in any way be abridged, modified
or affected: And Provided, further, That nothing herein contained
shall be construed as depriving any province, city, municipality
or municipal district of any power at present enjoyed or already
exercised or done by it or as diminishing its autonomy.
Vested rights existing at the time of the promulgation of this

law arising out of a contract between a province, city or municipality
on one hand and a third party on the other, shall be governed by the
original terms and provisions of the same, and in no case should this
Act be interpreted to infringe existing rights.
SEC. 26. Effectivity. – This Act shall take effect upon its
approval except Section four which shall take effect on January
first, nineteen hundred sixty-eight, and Sections thirteen, fourteen,
fifteen and sixteen which shall take effect on July first, nineteen
hundred sixty-eight.
160
AN ACT TO PROMOTE HIGHER STANDARDS OF EFFICIENCY

AND JUSTICE IN THE ADMINISTRATION OF LAWS
AS WELL AS TO BETTER SECURE THE RIGHT OF
THE PEOPLE TO PETITION THE GOVERNMENT FOR
REDRESS OF GRIEVANCES, CREATING THEREFOR THE
OFFICE OF THE CITIZEN’S COUNSELOR

SECTION 1. This Act may be cited as the “Citizen’s Counselor

Act of 1969”.
XXX XXX XXX
SEC. 22. Every person holding any office or appointment

under the Counselor shall, before he begins to perform any
official duty under this Act, take an oath, to be administered by
the Counselor, that he will not divulge any information received
by him under this Act, except for the purpose of giving effect to
this Act. Any person holding any office or appointment under the
Counselor who divulges any information received by him under
this Act, except for the purposes of giving effect to this Act, shall
be punished by imprisonment not exceeding two (2) years, without
prejudice to his liability, criminal or otherwise, under other laws,
rules and regulations.
Notwithstanding anything in the foregoing provisions of this

Section, the Counselor may disclose in any report made by him under
this Act such matters as in his opinion ought to be disclosed in order
to establish grounds for his conclusions and recommendations.
XXX XXX XXX
161
AN ACT DECLARING A NATIONAL POLICY ON THE PETROLEUM

INDUSTRY, REGULATING THE ACTIVITIES AND
RELATIONS OF PERSONS AND ENTITIES ENGAGED
T H E R E I N , E S TA B L I S H I N G A N O I L I N D U S T RY
COMMISSION TO EFFECTUATE THE SAME, AND
DEFINING ITS FUNCTIONS, POWERS AND OBJECTIVES,

SECTION 1. Title.—This Act shall be known as the Oil

Industry Commission Act.
XXX XXX XXX
SEC. 16. Penalties.—(a) Any person who give false or

misleading data or information or wilfully or through gross
negligence, conceals or falsifies a material fact, in any investigation,
inquiry, study or other proceedings held pursuant to this Act, shall
be punished with imprisonment of not less than two nor more than
six months, and with a fine of not less than five hundred nor more
than one thousand pesos: Provided, however, That if the false or
misleading data or information shall have been given under oath,
the maximum penalty for giving false testimony or perjury shall be
imposed;
(b) Any person who violates any provision of this Act or any
order, decision, ruling, or regulation of the Commission shall, upon
conviction, be sentenced for a period of not less than six months and
not more than five years and a fine of not less than five thousand
pesos and not more than twenty-five thousand pesos. If the offender
be a corporation, partnership or juridical person, the penalty shall
be imposed on the officer or officers responsible for permitting or
causing a violation by the corporation, partnership or juridical
person of the provisions of this Act;
162
(c) If the offender be a government official or employee,

the maximum penalty prescribed in paragraph (b) shall be imposed
and the offender shall suffer the additional penalty of perpetual
disqualification from public office without prejudice to any
administrative action against him;
(d) If the offender be a member of the Oil Industry

Commission, and the commission of the offense is attended by clear
abuse of discretion on his part, or by any corrupt practice defined
in Republic Act Numbered Three thousand nineteen, otherwise
known as the Anti-Graft and Corrupt Practices Act, or other
similar irregularity, the penalty imposed shall be a fine of fifty
thousand pesos and imprisonment of not less than ten years. A like
penalty shall be imposed upon any private person, whether in the
government service or not, who induces, aids or abets the offender
in the commission of the offense;
(e) It shall be an offense, penalized as provided in paragraph

(c) or (d) above, whichever may be applicable, for any person serving
in the Oil Industry Commission either as a Commissioner or as
staff member to directly or indirectly be employed by, or to receive
any compensation from, or to have any direct or indirect financial
interest in, any firm engaged in importing, refining or marketing
crude oil or any petroleum products;
(f) Any alien violating this Act shall, in addition to the

penalty herein provided, be deported after service of sentence and
shall not be permitted re-entry into the Philippines.
SEC. 17. Separability of Any Provision.—If any provision of

this Act shall be held invalid, the remainder of this Act shall not be
affected thereby.
SEC. 18. Repealing Clause.— The provisions of Republic Act

Numbered Sixty-one hundred and twenty-four, otherwise known as
the Price Control Law, referring to petroleum products, and all Acts
or parts of Acts inconsistent with this Act are hereby repealed but the
163
repeal shall not affect judicial actions, prosecutions or proceedings

begun while the same were in force.
SEC. 19. Effective Date.—This Act shall take effect upon its
approval.
APPROVED, April 30, 1971.
164
ELECTION CODE OF 1971

ARTICLE I. – General Provisions
SECTION 1. Title. – This Act shall be known and cited as

the Election Code of 1971.
XXX XXX XXX
SEC. 57. Intervention of public officers and employees.— (a)

It shall be unlawful for any head of any bureau or office, official or
officer nominated or appointed by the President of the Philippines
except as provided in paragraph (c) hereof, head or appointing officer
of any government-owned or controlled corporation, to intervene in
the nomination or election of any candidate or in the filing of his
certificate of candidacy, or give aid or support directly or indirectly,
material or otherwise, in favor of or against his campaign for
nomination or election.
(b) No officer or employee in the Civil Service and no officer,

member or employee of the Armed Forces of the Philippines or of any
police force shall aid any candidate, exert influence in any manner
in any election, or take part therein, except to vote if entitled thereto
or to preserve public order, if he is a peace officer.
(c) Public officers and employees holding political offices

may take part in political and electoral activities but it shall be
unlawful for them to solicit contributions from their subordinates
for partisan purposes, influence or subject them to any of the acts
involving subordinates prohibited in this Code.
SEC. 58. Coercion over subordinates, prohibited. – (a) It

shall be unlawful for any public officer, or officer of any commercial,
165
industrial, agricultural, economic or social enterprise, private

corporation or association, or for any employer, to coerce or
intimidate or compel directly or indirectly, any of this subordinates
or employees, to aid, campaign or vote for or against any candidate
in any election, or any aspirant for the nomination or selection of
official candidates in a political party convention.
(b) It shall be unlawful for any public officer, officer of any

commercial, industrial, agricultural, economic or social enterprise,
private corporation or association, or any employer to dismiss or
threaten to dismiss, punish or threaten to punish, by reducing
his salary, wage or compensation, or by demotion, or causing him
annoyance in the performance of his job or in his membership, any
subordinate, employee, member or affiliate for disobeying or not
complying with any of the acts ordered by the former.
XXX XXX XXX
ARTICLE XVII. – Final Provisions
SEC. 245. Forms. – The forms for the observance of the

provisions of this Code shall be formulated and issued by the
Commission and may be printed in any private printing press. The
forms observed prior to the effectivity of this Act may be followed if
the same are in accordance with the provisions hereof until changed
by the Commission.
SEC. 246. Pending Actions. – Pending actions and causes of

actions arising before the effectivity of this Code shall be governed
by the laws then in force.
SEC. 247. Limitation on Powers of Commission. – The

Commission shall have such powers pertaining to election matters,
only as are expressly granted in this Code, existing laws or
jurisprudence to the contrary notwithstanding. Nothing herein
contained shall be construed as a grant of implied powers.
166
SEC. 248. Separability Clause. – If for any reason any

section or provision of this Act, or any portion thereof, or the
application of such section, provision or portion to any person,
group or circumstance, is declared invalid or unconstitutional, the
remainder of the Act or the application of such provision to other
persons, groups or circumstances shall not be affected by such
declaration.
SEC. 249. Repealing Clause. – Republic Act Numbered

One hundred and eighty, otherwise known as the “Revised Election
Code,” as amended, and Republic Act Numbered There thousand
five hundred and eighty-eight, as amended, are hereby repealed. All
other laws, executive orders, rules and regulations, or parts thereof,
inconsistent with the provisions of this Code are hereby repealed,
amended or modified accordingly.
SEC. 250. Effectivity of this Code. – This Act shall take effect
upon its approval.
167
AN ACT ESTABLISHING A CODE OF CONDUCT AND ETHICAL

STANDARDS FOR PUBLIC OFFICIALS AND EMPLOYEES,
TO UPHOLD THE TIME-HONORED PRINCIPLE OF
PUBLIC OFFICE BEING A PUBLIC TRUST, GRANTING
INCENTIVES AND REWARDS FOR EXEMPLARY
SERVICE, ENUMERATING PROHIBITED ACTS AND
TRANSACTIONS AND PROVIDING PENALTIES FOR
VIOLATIONS THEREOF AND FOR OTHER PURPOSES

SECTION 1. Title. – This Act shall be known as the

“Code of Conduct and Ethical Standards for Public Officials and
Employees.”
SEC. 2. Declaration of Policy. – It is the policy of the State to

promote a high standard of ethics in public service. Public officials
and employees shall at all times be accountable to the people and
shall discharge their duties with utmost responsibility, integrity,
competence, and loyalty, act with patriotism and justice, lead modest
lives, and uphold public interest over personal interest.
SEC. 3. Definition of Terms. – As used in this Act, the

term:
(a) “Government” includes the National Government, the
local governments, and all other instrumentalities, agencies or
branches of the Republic of the Philippines including government-
owned or controlled corporations, and their subsidiaries.
(b) “Public Officials” include elective and appointive officials

and employees, permanent or temporary, whether in the career or
non-career service, including military and police personnel, whether
or not they receive compensation, regardless of amount.
(c) “Gift” refers to a thing or a right disposed of gratuitously,

or any act of liberality, in favor of another who accepts it, and shall
168
include a simulated sale or an ostensibly onerous disposition thereof.

IT shall not include an unsolicited gift or nominal or insignificant
value not given in anticipation of, or in exchange for a favor from a
public official or employee.
(d) “Receiving any gift” includes the act of accepting,

directly or indirectly, a gift from a person other than a member of
his family or relative as defined in this Act, even on the occasion of
a family celebration or national festivity like Christmas, if the value
of the gift is neither nominal nor insignificant, or the gift is given in
anticipation of, or in exchange for, a favor.
(e) “Loan” covers both simple loan and commodatum as

well as guarantees, financing arrangements or accommodations
intended to ensure its approval.
(f) “Substantial stockholder” means nay person who owns

directly or indirectly, shares of stock sufficient to elect a director of
a corporation. This term shall also apply to the parties to a voting
trust.
(g) “Family of public officials or employees” means their

spouses and unmarried children under eighteen (18) years of age.
(h) “Person” includes natural and juridical persons unless

(i) “Conflict of Interest” arises when a public official

or employee is a member of a board, an officer, or a substantial
stockholder of a private corporation or owner or has a substantial
interest in a business and the interest of such corporation or business,
or his rights or duties therein, may be opposed to or affected by the
faithful performance of official duty.
(j) “Divestment” is the transfer title or disposed of interest

in property by voluntarily, completely and actually depriving or
dispossessing oneself of his right or title to it in favor of a person or
persons other than his spouse and relatives as defined in this Act.
169
(k) “Relatives” refers to any and all persons related to

a public official or employee within the fourth civil degree of
consanguinity or affinity, including bilas, inso and balae.
SEC. 4. Norms of Conduct of Public Officials and Employees.

– (A) Every public official and employee shall observe the following
as standards of personal conduct n the discharge and execution of
official duties:
(a) Commitment to public interest. – Public officials and

employees shall always uphold the public interest over and above
personal interest. All government resources and powers of their
respective offices must be employed and used efficiently, effectively,
honestly and economically, particularly to avoid wastage in public
funds and revenues.
(b) Professionalism. – Public officials and employees shall

perform and discharge their duties with the highest degree of
excellence, professionalism, intelligence and skill. They shall enter
public service with utmost devotion and dedication to duty. They
shall endeavor to discourage wrong perceptions of their roles as
dispensers or peddlers of undue patronage.
(c) Justness and sincerity. – Public officials and employees

shall remain true to the people at all times. They must act with
justness and sincerity and shall not discriminate against anyone,
especially the poor and the under privilege. They shall at all times
respect the rights of others, and shall refrain from doing acts
contrary to law, good morals, good customs, public policy, public
order, public safety and public interest. They shall not dispense or
extend undue favors on account of their office to their relatives on
account of their office to their relatives whether by consanguinity
or affinity except with respect to appointments of such relatives
to positions considered strictly confidential or as member of their
personal staff whose terms are coterminous with theirs.
(d) Political neutrality – Public officials and employees

shall provide service to everyone without unfair discrimination and
regardless of party affiliation or preference.
170
(e) Responsiveness to the public. – Public officials and

employees shall extend prompt, courteous, and adequate service
to the public. Unless otherwise provided by law or when required
by the public interest, public officials and employees shall
provide information on their policies and procedures in clear and
understandable language, ensure openness of information, public
consultations and hearing whenever appropriate, encourage
suggestions, simplify and systematize policy rules and procedures,
avoid red tape and develop an understanding and appreciations of
the socio-economic conditions prevailing in the country, especially
in the depressed rural and urban areas.
(f) Nationalism and patriotism. – Public officials and

employees shall at all times be loyal to the Republic and to the
Filipino people, promote the use of locally-produced goods, resources
and technology and encourage appreciation and pride of country
and people. They shall endeavor to maintain and defend Philippine
sovereignty against foreign intrusion.
(G) Commitment to democracy. – Public officials and

employees shall commit themselves to the democratic way of life
and values, maintain the principle of public accountability, and
manifest by deeds the supremacy of civilian authority over the
military. They shall at all times uphold the Constitution and put
loyalty to country above loyalty to persons or party.
(h) Simple living. – Public officials and employees and

their families shall lead modest lives appropriate to their positions
and income. They shall not indulge in extravagant or ostentatious
display of wealth in any form.
(B) The Civil Service Commission shall adopt positive

measures to promote (1) observance of these standards including
the dissemination of information programs and workshops
authorizing merit increases beyond regular progression steps, to a
limited number of employees recognized by their office colleagues
to be outstanding in their observation of ethical standards; and
(2) continuing research and experimentation on measures which
171
provide positive motivation to public officials and employees in

raising the general level of observance of these standards.
SEC. 5. Duties of Public Officials and Employees. – In the

performance of their duties, all officials and employees are under
obligation to:
(a) Act promptly on letters and requests. – All public

officials and employees shall, within fifteen (15) working days from
receipt thereof, respond to letters, telegrams or other means of
communications sent by the public. The reply must contain the
action taken on the request.
(b) Submit annual performance reports. – All heads or

other responsible officers of offices and agencies of the government
and of government-owned or controlled corporations shall, within
forty-five (45) working days from the end of the year, render a
performance report of the agency or office or corporation concerned.
Such reports shall be open and available to the public within regular
office hours.
(c) Process documents and papers expeditiously. – All official

papers and documents must be processed and completed within a
reasonable time from the preparation thereof and must contain, as
far as practicable, not more than three (3) signatories therein. In
the absence of duly authorized signatories, the official next-in-rank
or officer-in-charge shall sign for and in their behalf.
(d) Act immediately on the public’s personal transactions. –

All public officials and employees must attend to anyone who wants
to avail himself of the services of their offices and must, at all times,
act promptly and expeditiously.
(e) Make documents accessible to the public. – All public

documents must be made accessible to, and readily available for
inspection by the public within reasonable working hours.
SEC. 6. System of Incentives and Rewards. – A system of

annual incentives and rewards is hereby established in order to
172
motivate and inspire public servants to uphold the highest standards

of ethics. For this purpose, a Committee on Awards to Outstanding
Public Officials and Employees is hereby created composed of the
following: the Ombudsman and Chairman of the Civil Service
Commission as Co-Chairman, and the Chairman of the Commission
on Audit, and two government employees to be appointed by the
President, as members.
It shall be the task of this Committee to conduct a periodic,

continuing review of the performance of public officials and
employees in all the branches and agencies of Government and
establish a system of annual incentives and rewards to the end
that due recognition is given to public officials and employees of
outstanding merit on the basis of the standards set forth in this
Act.
The conferment of awards shall take into account among

other things, the following: the years of service and the quality and
consistency of performance, the obscurity of the position, the level of
salary, the unique and exemplary quality of a certain achievement,
and the risks or temptations inherent in the work. Incentives and
rewards to government officials and employees of the year to be
announced in public ceremonies honoring them may take the form of
bonuses, citations, directorships in government-owned or controlled
corporations, local and foreign scholarship grants, paid vacations,
and the like. They shall likewise be automatically promoted to the
next higher position with the commensurate salary suitable to their
qualifications. In case there is no next higher position or it is not
vacant, said position shall be included in the budget of the office in
the next General Appropriations Act. The Committee on Awards
shall adopt its own rules to govern the conduct of its activities.
SEC. 7. Prohibited Acts and Transactions. -- In addition to

acts and omissions of public officials and employees now prescribed
in the Constitution and existing laws, the following shall constitute
prohibited acts and transactions of any public official and employee
are hereby declared to be unlawful:
173
(a) Financial and material interest. – Public officials and

employees shall not, directly or indirectly, have any financial or
material interest in any transaction requiring the approval of their
office.
(b) Outside employment and other activities related thereto.

– Public officials and employees during their incumbency shall not:
(1) Own, control, manage or accept employment as officer,

employee, consultant, counsel, broker, agent, trustee or nominee in
any private enterprise regulated, supervised or licensed by their
office unless expressly allowed by law.
(2) Engage in the private practice of their profession unless

authorized by the Constitution or law, provided that such practice
will not conflict or tend to conflict with official functions; or
(3) Recommend any person to any position in a private

enterprise which has a regular or pending official transaction with
their office.
These prohibitions shall continue to apply for a period of

one (1) year after resignation, retirement or separation from public
office, except in the case of subparagraph (b) (2) above but the
professional concerned cannot practice his profession in connection
with any matter before the office he used to be with, in which case
the one-year prohibition shall likewise apply.
(C) Disclosure and or misuse of confidential information. –

Public officials and employees shall not use or divulge, confidential
or classified information officially known to them by reason of their
office and not made available to the public either:
(1) To further their private interest, or give undue advantage

to anyone; or
(2) To prejudice the public interest.
174
(d) Solicitation or acceptance of gifts. – Public officials and

employees shall not solicit or accept directly or indirectly, any gift,
gratuity, favor, entertainment, loan or anything of momentary value
from any person in the course of their official duties or in connection
with any operation being regulated by or any transaction which
may be affected by the functions of their office.
As to gifts or grants from foreign governments, the Congress

and consents to –
(i) The acceptance and retention by a public official or

employee of a gift of nominal value rendered and received as a
souvenir or mark of courtesy;
(ii) The acceptance by a public official or employee of a

gift in the nature of a scholarship or fellowship grant or medical
treatment; or
(iii) The acceptance by a public official or employee of travel

grants or expenses for travel taking place entirely outside the
Philippines (such as allowances, transportation, food, and lodging)
or more than nominal value if such acceptance is appropriate or
consistent with the interests of the Philippines, and permitted by
the head of office, branch or agency to which he belongs.
The Ombudsman shall prescribe such regulations as may

be necessary to carry out the purpose of this subsection, including
pertinent reporting and disclosure requirements.
Nothing in this Act shall be construed to restrict or prohibit

any educational, scientific or cultural exchange programs subject to
national security requirements.
SEC. 8. Statements and Disclosure. – Public officials and

employees have an obligation to accomplish and submit declarations
under oath of, and the public has the right to know, their assets,
liabilities, net worth, and financial and business interests including
those of their spouses and unmarried children under eighteen (18)
years of age living in their households.
175
(A) Statement of Assets and Liabilities and Financial

Disclosure. – All public officials and employees, except those who
serve in an honorary capacity, laborers and casual or temporary
workers, shall file under oath their Statement of Assets, Liabilities
and Net Worth and a Disclosure of Business Interests and Financial
Connections and those of their spouses and unmarried children
under eighteen (18) years of age living in their households.
The two documents shall contain information on the

following:
(a) Real property, its improvements, acquisition costs,

assessed value and current fair market value;
(b) Personal property and acquisition cost;
(c) All other assets such as investment, cash on hand or in

banks, stock, bonds, and the like;
(d) Liabilities; and
(e) All business interests and financial connections.
The documents must be filed:
(a) Within thirty (30) days after assumption of office.
(b) On or before April 30, of every year thereafter; and
(c) Within thirty (30) days after separation from the

service.
All public officials and employees required under this section

to file the aforestated documents shall also execute within thirty
(30) days from the date of their assumption of office, the necessary
authority in favor of the Ombudsman to obtain from all appropriate
government agencies, including the Bureau of Internal Revenue,
such documents as may show their, liabilities, net worth, and also
176
their business interests and financial connections in previous years,

including, if possible the year when they first assumed any office in
the Government.
Husband and wife who are both public officials or employees

may file the required statements jointly or separately.
The Statement of Assets, Liabilities and Financial

Connections shall be filed by:
(1) Constitutional and national elective officials, with the

national office of the Ombudsman;
(2) Senators and Congressmen, with the Secretaries of the

Senate and the House of Representatives, respectively; Justices,
with the Clerk of Court of the Supreme Court; Judges, with the
Court Administrator; and all national executive officials with the
Office of the President;
(3) Regional and local officials and employees, with the

Deputy Ombudsman in their respective regions;
(4) Officers of the armed forces from the rank of colonel or

naval captain, with the Office of the President, and those below said
ranks, with the Deputy Ombudsman in their respective regions;
and
(5) All other public officials and employees, defined

in Republic Act No. 3019, as amended, with the Civil Service
Commission.
(B) Identification and disclosure of relatives. – It shall be

the duty of every public official or employee to identify and disclose
to the best of his knowledge and information, his relatives in the
Government in the form, manner and frequency prescribed by the
Civil Service Commission.
177
(C) Accessibility of documents. – (1) Any and all statements

filed under this Act, shall be made available for inspection at
reasonable hours.
(2) Such statements shall be made available for copying or

reproduction after ten (10) working days from the time they are
filed as required by law.
(3) Any person requesting a copy of a statement shall be

required to pay a reasonable fee to cover the cost of reproduction
and mailing of such statement, as well as the cost of certification.
(4) Any statement filed under this Act shall be available to

the public for a period of ten (10) years after receipt of the statement.
After such period, the statement may be destroyed unless needed in
an ongoing investigation.
(D) Prohibited acts. – It shall be unlawful for any person to

obtain or use any statement filed under this Act for:
(a) Any purpose contrary to morals or public policy; or
(b) Any commercial purpose other than by news and

communications media for dissemination to the general public.
SEC. 9. Divestment. – A public official or employee shall avoid

conflicts of interest at all times. When a conflict of interest arises,
he shall resign from his position in any private business enterprises
within thirty (30) days from his assumption of office and/or divest
himself of his shareholdings or interest within sixty (60) days from
such assumption.
The same rule shall apply where the public official or

employee is a partner in a partnership.
The requirement of divestment shall not apply to those who

serve the Government in an honorary capacity nor to laborers and
casual or temporary workers.
178
SEC. 10. Review and Compliance Procedure. – (a) The

designated Committees of both House of the Congress shall establish
procedures for the review of statements to determine whether said
statements have been submitted on time, are complete and are in
proper form. In the event a determination is made that a statement
is not so filed, the appropriate Committee shall so inform the
reporting individual and direct him to take the necessary corrective
action.
(b) In order to carry out their responsibilities under this

Act, the designated Committees of both Houses of the Congress
shall have the power, within their respective jurisdictions, to render
any opinion interpreting this Act, in writing to persons covered by
this Act, subject in each instance to the approval by affirmative vote
of the majority of the particular House concerned.
The individual to whom an opinion is rendered, and any

other individual involved in a similar factual situation, and who,
after issuance of the opinion acts in good faith in accordance with it
shall not be subject to any sanction provided in this Act.
(c) The heads of other offices shall perform the duties stated
in subsection (a) and (b) hereof insofar as their respective offices are
concerned, subject to the approval of the Secretary of Justice, in
the case of the Executive Department and the Chief Justice of the
Supreme Court, in the case of the Judicial Department.
SEC. 11. Penalties. – (a) Any public official or employee,

regardless of whether or not he holds office or employment in a casual,
temporary, holdover, permanent or regular capacity, committing
any violation of this Act, shall be punished with a fine not exceeding
the equivalent of six (6) months salary or suspension not exceeding
one (1) ear, or removal depending on the gravity of the offense after
due notice and hearing by the appropriate body or agency. If the
violation is punishable by a heavier penalty under another law, he
shall be prosecuted under the latter statute. Violations of Section
7, 8 or 9 of this Act shall be punishable with imprisonment not
exceeding five (5) years, or a fine not exceeding five thousand pesos
179
(P5,000.00) or both, and in the discretion of the court of competent

jurisdiction, disqualification to hold public office.
(b) Any violation hereof proven in a proper administrative

proceeding shall be sufficient cause for removal or dismissal of
a public official or employee, even if no criminal prosecution is
instituted against him.
(c) Private individuals who participate in conspiracy as

co-principals, accomplices or accessories, with public officials or
employees, in violation of this Act, shall be subject to the same
penal liabilities as the public officials or employees and shall be
tried jointly with them.
(d) The official or employee concerned may bring an action

against any person who obtains or uses a report for any purpose
prohibited by Section 8 (D) of this Act. The Court in which such
action is brought may assess against such person a penalty in any
amount not exceeding twenty-five thousand pesos (P25,000.00). If
another sanction hereunder or under any other law is heavier, the
latter shall apply.
SEC. 12. Promulgation of Rules and Regulations,

Administration and Enforcement of this Act. – The Civil Service
Commission shall have the primary responsibility for the
administration and enforcement of this Act. It shall transmit all
cases for prosecution arising from violations of this Act to the proper
authorities for appropriate action; Provided, however, That it may
institute such administrative actions and disciplinary measures as
may be warranted in accordance with law. Nothing in this provision
shall be construed as a deprivation of the right of each House of
Congress to discipline its Members for disorderly behavior.
The Civil Service Commission is hereby authorized to

promulgate rules and regulations necessary to carry out the
provisions of this Act, including guidelines for individuals who
render free voluntary service to the Government. The Ombudsman
shall likewise take steps to protect citizens who denounce acts or
180
omissions of public officials and employees which are in violation of

this Act.
SEC. 13. Provisions for More Stringent Standards. –

Nothing in this Act shall be construed to derogate from any law, or
any regulation prescribed by anybody or agency, which provides for
more stringent standards for its officials and employees.
SEC. 14. Appropriations. – The sum necessary for the effective

implementation of this Act shall be taken from the appropriations
of the Civil Service Commission. Thereafter, such sum as may be
needed for its continued implementation shall be included in the
annual General Appropriations Act.
SEC. 15. Separability Clause. – If any provision of this Act

or the application of such provision to any person or circumstance is
declared invalid, the remainder of the Act or the application of such
provision to other persons or circumstances shall not be affected by
such declaration.
SEC. 16. Repealing Clause. – All laws, decrees and orders or

parts thereof inconsistent herewith, are deemed repealed or modified
accordingly, unless the same provide for a heavier penalty.
SEC. 17. Effectivity. – This Act shall take effect after thirty
(30) days following the completion of its publication in the Official
Gazette or in two (2) national newspapers of general circulation.
APPROVED, February 20, 1989.
181
RULES IMPLEMENTING THE CODE OF CONDUCT

AND ETHICAL STANDARDS FOR PUBLIC
Pursuant to the provisions of Section 12 of Republic Act

No. 6713, otherwise known as the “Code of Conduct and Ethical
Standards for Public Officials and Employees,” approved on February
20, 1989, and which took effect on March 25, 1989, conformably to
Section 17 thereof, the following Rules are hereby adopted in order
to carry out the provisions of the said Code:
RULE I. COVERAGE
SECTION 1. These Rules shall cover all officials and

employees in the government, elective and appointive, permanent
or temporary, whether in the career or non-career service,
including military and police personnel, whether or not they receive
compensation, regardless of amount.
RULE II. INTERPRETATION
SECTION 1. These Rules shall be interpreted in the light of

the Declaration of Policy found in Section 2 of the Code:
“It is the policy of the State to promote a high standard of

ethics in public service. Public officials and employees shall at all
times be accountable to the people and shall discharge their duties
with utmost responsibility, integrity, competence and loyalty, act
with patriotism and justice, lead modest lives, and uphold public
interest over personal interest.”
RULE III. REFORMS ON PUBLIC ADMINISTRATIVE

SYSTEMS
SECTION 1. Every department, office and agency shall as

soon as practicable and in no case later than ninety (90) days from
the effectivity of these Rules, start conducting value development
programs for its officials and employees in order to strengthen their
182
commitment to public service and help promote the primacy of public

interest over personal interest in the performance of their duties.
Such programs and other parallel efforts on value development
shall include, among other things, the following subjects:
(a) Ethical and moral values;
(b) Rights, duties and responsibilities of public servants;
(c) Nationalism and patriotism;
(d) Justice and human rights;
(e) Democracy in a free and just society;
(f) Philippine history, culture and tradition; and
(g) Socio-economic conditions prevailing in the country,

especially in the depressed areas, and the need for a Code of Conduct
and Ethical Standards.
Continuing refresher courses and seminars and/or workshops

to promote a high standard of ethics in public service shall be
conducted.
SEC. 2. Professional, scientific, technical trainings

and education programs shall enhance to the highest degree,
professionalism, excellence, intelligence and skills in the
performance and discharge of duties and responsibilities of officials
and employees. These programs shall be conducted in all offices of
the government and may include subjects that are enumerated in
the preceding section.
SEC. 3. It is the responsibility of every head of department,

office and agency to ensure that officials and employees attend
the value development program and participate in parallel value
development efforts.
183
SEC. 4. Every department, office and agency shall conduct

continuing studies and analyses of their work systems and
procedures to improve delivery of public services. Towards this end,
such studies and analyses shall: (1) identify systems and procedures
that lead or contribute to negative bureaucratic behavior; (2)
simplify rules and procedures to avoid red tape; and (3) devise or
adopt systems and procedures that promote official and employee
morale and satisfaction.
Each department, office or agency shall develop a service

guide or its functional equivalent which shall be regularly updated
and made available to the transacting public. A workflow chart
showing procedures or flow of documents shall likewise be posted
in conspicuous places in the department, office or agency for the
information and guidance of all concerned.
Upon request, the Department of Budget and Management

shall assist departments, offices and agencies in the evaluation and
adoption of work systems and procedures that will institutionalize a
management climate conducive to public accountability.
SEC. 5. Every department, office and agency shall consult

the public they serve for the purpose of gathering feedback and
suggestions on the efficiency, effectiveness and economy of services.
They shall establish mechanisms to ensure the conduct of public
consultations and hearings.
SEC. 6. Every department, office and agency shall

continuously conduct research and experimentation on measures
and adopt innovative programs which will provide motivation to
officials and employees in raising the level of observance of public
service ethical standards.
SEC. 7. Every department, office and agency shall, in

consultation with the Office of the Ombudsman, appoint or designate
a resident Ombudsman who shall act immediately on all requests
for public assistance referred to him by the Ombudsman and his
Deputies. He shall be held accountable for the disposition of all
requests for assistance.
184
SEC. 8. Government officials shall make themselves

available to their staff for consultations and dialogues.
RULE IV. TRANSPARENCY OF TRANSACTIONS AND

ACCESS TO INFORMATION
SECTION 1. Subject to reasonable conditions prescribed

by law, the State adopts and implements a policy of full public
disclosure of all its transactions involving public interest.
SEC. 2. It is the responsibility of heads of departments,

offices and agencies to establish measures and standards that will
ensure transparency of and openness in public transactions in their
respective offices, such as in biddings, purchases, other financial
transactions including contracts, status of projects, and all other
matters involving public interest.
They shall establish information systems that will inform

the public of the following: (a) policies, rules, and procedures; (b)
work programs, projects, and performance targets; (c) performance
reports; and (d) all other documents as may hereafter be classified
as public information.
Such information shall be utilized solely for the purpose of

informing the public of such policies, programs and accomplishments,
and not to build the public image of any official or employee or to
advance his own personal interest.
SEC. 3. Every department, office or agency shall provide

official information, records or documents to any requesting public,
except if:
(a) such information, record or document must be kept

secret in the interest of national defense or security or the conduct
of foreign affairs;
(b) such disclosure would put the life and safety of an

individual in imminent danger;
185
(c) the information, record or document sought falls within

the concepts of established privilege or recognized exceptions as
may be provided by law or settled policy or jurisprudence*
(d) such information, record or document comprises drafts

of decisions, orders, rulings, policy decisions, memoranda, etc.;
(e) it would disclose information of a personal nature

where disclosure would constitute a clearly unwarranted invasion
of personal privacy;**
(f) it would disclose investigatory records compiled

for law enforcement purposes, or information which if written
would be contained in such records, but only to the extent that
the production of such records or information would (i) interfere
with enforcement proceedings, (ii) deprive a person of a right to
a fair trial or an impartial adjudication, (iii) disclose the identity
of a confidential source and, in the case of a record compiled by
a criminal law enforcement authority in the course of a criminal
investigation, or by an agency conducting a lawful national security
intelligence investigation, confidential information furnished only
by the confidential source, or (iv) unjustifiably disclose investigative
techniques and procedures; or
(g) it would disclose information the premature disclosure

of which would (i) in the case of a department, office or agency which
regulates currencies, securities, commodities, or financial institutions,
be likely to lead to significant financial speculation in currencies,
securities, or commodities, or significantly endanger the stability of
any financial institution; or ( ii) in the case of any department, office
or agency, be likely or significantly to frustrate implementation of a
proposed official action, except that subparagraph (f) ((ii) shall not
apply in any instance where the department, office or agency has
∗
e.g., closed door Cabinet sessions, executive sessions of Congress,deliberations
of the Supreme Court, trade secrets, and the like
∗∗
e.g., physician-patient privilege
186
already disclosed to the public the content or nature of its proposed

action, or where the department, office or agency is required by law
to make such disclosure on its own initiative prior to taking final
official action on such proposal.
SEC. 4. Every head of department, office and agency shall

establish information systems and networks that will effect the widest
possible dissemination of information regarding the provisions of
the Code, and the policies and programs relative thereto.
RULE V. INCENTIVES AND REWARDS SYSTEM
SECTION 1. Incentives and rewards shall be granted

officials and employees who have demonstrated exemplary service
and conduct on the basis of their observance of the norms of conduct
laid down in Section 4 of the Code, namely;
(a) Commitment to public interest – Officials and employees

shall always uphold the public interest over personal interest. All
government resources and powers of their respective departments,
offices and agencies must be employed and used efficiently,
effectively, honestly and economically, particularly to avoid wastage
in public funds and revenues.
(b) Professionalism. – Officials and employees shall perform

and discharge their duties with the highest degree of excellence,
professionalism, intelligence and skill. They shall enter public
service with utmost devotion and dedication to duty. They shall
endeavor to discourage wrong perceptions of their roles as dispensers
or peddlers of undue patronage.
(c) Justness and sincerity – Officials and employees shall

remain true to the people at all times. They must act with justness
and sincerity and shall not discriminate against anyone, especially
the poor and the underprivileged. They shall at all times respect the
rights of others, and shall refrain from doing acts contrary to law,
good morals, good customs, public policy, public order, public safety
187
and public interest. They shall not dispense or extend undue favors
on account of their office to their relatives, whether by consanguinity
or affinity, except with respect to appointments of such relatives
to positions considered strictly confidential or as members of their
personal staff whose terms are coterminous with theirs.
(d) Political neutrality. – Officials and employees shall

provide service to everyone without unfair discrimination regardless
of party affiliation or preference.
(e) Responsiveness to the public. – Officials and employees

shall extend prompt, courteous, and adequate service to the public.
Unless otherwise provided by law or when required by the public
interest, officials and employees shall provide information on their
policies and procedures in clear and understandable language,
ensure openness of information, public consultations and hearings
whenever appropriate, encourage suggestions, simplify and
systematize policy, rules and procedures, avoid red tape and develop
an understanding and appreciation of the socio-economic conditions
prevailing in the country, especially in the depressed rural and
urban areas.
(f) Nationalism and patriotism – Officials and employees

shall at all times be loyal to the Republic and to the Filipino people,
promote the use of locally produced goods, resources and technology
and encourage appreciation and pride of country and people. They
shall endeavor to maintain and defend Philippine sovereignty
against foreign intrusion.
(g) Commitment to democracy – Officials and employees

shall commit themselves to the democratic way of life and values,
maintain the principle of public accountability and manifest by
deeds the supremacy of civilian authority over the military. They
shall at all times uphold the Constitution and put loyalty to country
above loyalty to persons or party.
(h) Simple living – Officials and employees and their

families shall lead modest lives appropriate to their positions and
188
income. They shall not indulge in extravagant or ostentatious

SEC. 2. The following criteria shall be considered in the

confinement of awards:
(a) Years of service;
(b) Quality and consistency of performance;
(c) Obscurity of the position;
(d) Level of salary;
(e) Unique and exemplary quality of achievement;
(f) Risk or temptation inherent in the work; and
(g) Any similar circumstances or considerations in favor of

the particular awardee.
SEC. 3. Incentives and rewards to government officials and

employees of the year may take the form of any of the following, as
may be determined by the Committee on Awards established under
the Code:
(a) Bonuses; or
(b) Citations; or
(c) Directorships in government-owned or controlled

corporations; or
(d) Local and foreign scholarship grants; or
(e) Paid vacations; and
(f) Automatic promotions to the next higher position

suitable to his qualifications and with commensurate salary;
189
provided, that if there is no next higher position or it is not vacant,

said position shall be included in the next budget of the office; except
when the creation of a new position will result in distortion in the
organizational structure of the department, office or agency. Where
there is no next higher position immediately available, a salary
increase equivalent to the next higher position shall be given and
incorporated in the base pay. When a new position is created, that
which is vacated shall be deemed abolished.
The grants of awards shall be governed by the merit and

fitness principle.
SEC. 4. (a) The System shall be administered by a Committee

on Awards for Outstanding Public Officials and Employees composed
of:
(1) Ombudsman - Co-Chairman
(2) Chairman, CSC - Co-Chairman
(3) Chairman, COA - Member
(4) Two (2) Government Employees
to be Appointed by the President - Members
(b) For this purpose, the Committee shall perform the

following functions and responsibilities:
(1) Conduct a periodic, continuing review of performance of

officials and employees in all departments, offices and agencies;
(2) Establish a system of annual incentives and rewards to

the end that due recognition is given to officials and employees of
outstanding merit on the basis of standards set forth in Section 2,
Rule V hereof;
(3) Determine the form of rewards to be granted;
(4) Formulate and adopt its own rules to govern the conduct
of its activities, which shall include guidelines for evaluating
nominees, the mechanism for recognizing the awardees in public
ceremonies and the creation of subcommittees.
190
(c) In the evaluation of nominees, the Committee may be

assisted by technical experts selected from the government and the
private sectors.
SEC. 5. The Civil Service Commission shall provide

secretariat services to the Committee.
SEC. 6. Nothing herein provided shall inhibit any

department, office or agency from instituting its own rewards
program in addition to those provided by, but not inconsistent with,
these Rules.
SEC. 7. The budget to cover all expenses in the implementation

of this Rule shall be incorporated in the appropriation of the Civil
Service Commission.
RULE VI. DUTIES OF PUBLIC OFFICIALS AND EMPLOYEES
SECTION 1. As a general rule, when a request or petition,

whether written or verbal, can be disposed of promptly and
expeditiously, the official or employee in charge to whom the same
is presented shall do so immediately, without discrimination, and in
no case beyond fifteen (15) working days from receipt of the request
or petition.
SEC. 2. In departments, offices or agencies that are usually

swamped with persons calling for a particular type of service, the
head of the department, office or agency shall devise a mechanism
so as to avoid long queues, such as by giving each person a ticket
number duly countersigned which shall specify the time and the
date when the person, whose name and address shall be indicated,
can be served without delay. Said person shall have the right to
prompt service upon presentation of said ticket number.
SEC. 3. In case of written requests, petitions, or motions, sent

by means of letters, telegrams, or the like, the official or employee in
charge shall act on the same within fifteen (15) working days from
receipt thereof, provided that:
191
(a) If the communication is within the jurisdiction of the

office or agency, the official or employee must:
(1) Write a note or letter of acknowledgement where the

matter is merely routinary or the action desired may be acted
upon in the ordinary course of business of the department, office or
agency, specifying the date when the matter will be disposed of and
the name of the official employee in charge thereof.
(2) Where the matter is non-routinary or the issues involved

are not simple or ordinary, write a note or letter of acknowledgment,
informing the interested party, petitioner or correspondent of the
action to be taken or when such requests, petitions or motions can be
acted upon. Where there is a need to submit additional information,
requirements or documents, the note or letter of acknowledgment
shall so state, specifying a reasonable period of time within which
they should be submitted, and the name of the particular or employee
in charge thereof. When all the documents or requirements have
been submitted to the satisfaction of the department, office or agency
concerned, the particular official or employee in charge shall inform
the interested party, petitioner, or correspondent of the action to be
taken and when such action or disposition can be expected, barring
unforeseen circumstances.
(b) If communication is outside its jurisdiction, the official

or employee must:
(1) Refer the letter, petition, telegram, or verbal request to

the proper department, office or agency.
(2) Acknowledge the communication by means of a note or

letter, informing the interested party, petitioner, or correspondent
of the action taken and attaching a copy of the letter of referral to
the proper department, office or agency.
The department, office and agency to which the letter,

petition, telegram or verbal request was referred for appropriate
action must take action in accordance with subsection (a), pars. 1
and 2 hereof.
192
The period of fifteen (15) working days herein provided shall

be counted from date of receipt of the written or verbal communication
by the department, office or agency concerned.
SEC. 4. All official papers and documents must be processed

and completed within a reasonable time from the preparation
thereof. Reasonable time shall be determined in accordance with
the following rules:
(a) When the law or the applicable rule issued in accordance

therewith prescribes a period within which a decision is to be
rendered or an action taken, the same shall be followed;
(b) When the law or the applicable rule issued in accordance

therewith docs not prescribe a period, the head of department, office
or agency shall issue rules and regulations prescribing, among other
things, what is reasonable time, taking into account the following
factors:
(1) Nature, simplicity or complexity of the subject matter

of the official papers or documents processed by said department,
office or agency;
(2) Completeness or inadequacy of requirements or of data

and information necessary for decision or action;
(3) Lack of resources caused by circumstances beyond the

control of the department, office or agency or official or employee
concerned;
(4) Legal constraints such as restraining orders and

injunctions issued by proper judicial, quasi-judicial or administrative
authorities;
(5) Fault, failure or negligence of the party concerned which

renders decision or action not possible or premature; and
(6) Fortuitous events or force majeure.
193
SEC. 5. Except as otherwise provided by law or regulation,

and as far as practicable, any written action or decision must contain
not more than three (3) initials or signatures. In the absence of
the duly authorized signatory, the official next-in-rank or officer-
in-charge or the person duly authorized shall sign for and in his
behalf.
The head of department, office or agency shall prescribe,

through an appropriate office order, the rules on the proper authority
to sign in the absence of the regular signatory, as follows:
(1) If there is only one official next in rank, he shall

automatically be the signatory;
(2) If there are two or more officials next in rank, the

appropriate office order shall prescribe the order of priority among
the officials next in rank within the same organizational unit; or
(3) If there is no official next in rank present and available,

the head of department, office or agency shall designate an officer-
in-charge from among those next lower in rank in the same
organizational unit.
SEC. 6. All public documents must be made accessible to,

and readily available for inspection by, the public during working
hours, except those provided in Section 3, Rule IV.
SEC. 7. All heads or other responsible officers of departments,

offices and agencies of the government and of government-owned
or controlled corporations shall, within forty-five (45) working
days from the end of the year, render a full and complete report of
performance and accomplishment, as prescribed by existing laws
and regulations.
Another report of compliance with the provisions of the Code

and these Rules shall be prepared and submitted to the Civil Service
Commission. The Commission may require officials to provide
additional information or furnish documents, if necessary.
194
SEC. 8. Officials and employees and their families shall lead

modest and simple lives appropriate to their positions and income.
They shall not indulge in extravagant or ostentatious display of
wealth in any form.
Basically, modest and simple living means maintaining a

standard of living within the public official or employee’s visible
means of income as correctly disclosed in his income tax returns,
annual statement of assets, liabilities and net worth and other
documents relating to financial and business interests and
connections.
Public funds and property for official use and purpose shall
be utilized with the diligence of a good father of a family.
RULE VII. PUBLIC DISCLOSURE
SECTION 1. Every official and employee, except those who

serve in an official honorary capacity, without service credit or
pay, temporary laborers and casual or temporary and contractual
workers, shall file under oath their statement of assets, liabilities
and net worth and a disclosure of business interests and financial
connections including those of their spouses, and unmarried children
under eighteen (18) years of age living in their households, in the
prescribed form, Annex A.
(a) Contents of Statement
(1) The Statement of Assets and Liabilities and Net

Worth shall contain information on the following:
(a) real property, its improvements, acquisition costs,

assessed value, and current fair market value;
(b) personal property and acquisition cost;
(c) all other assets such as investments, cash on hand

or in banks, stocks, bonds, and the like; and
195
(d) All financial liabilities, both current and long-

term.
(2) The Disclosure of Business Interests and Financial

Connections shall contain information on any existing interests
in, or any existing connections with, any business enterprises
or entities, whether as proprietor, investor, promoter, partner,
shareholder, officer, managing director, executive, creditor, lawyer,
legal consultant or adviser, financial or business consultant,
accountant, auditor, and the like, the names and addresses of the
business enterprises or entities, the dates when such interests or
connections were established, and such other details as will show
the nature of the interests or connections.
(b) When to file
The above documents under the Code must be filed:
(1) within thirty (30) days after assumption of office,

statements of which must be reckoned as of his first day of service;
(2) on or before April 30 of every year thereafter,

statements of which must be reckoned as of the end of the preceding
year; or
(3) within thirty (30) days after separation from the

service, statements of which must be reckoned as of his last day of
office.
(c) Where to file
The Statement of Assets, Liabilities and Net Worth and the

Disclosure of Business Interests and Financial Connections shall be
filed by the:
(1) President, Vice-President and Constitutional

Officials, with the National Office of the Ombudsman;
196
(2) Senators and congressmen, with the Secretaries of

the Senate and the House of Representatives, respectively, Justices,
with the Clerk of Court of the Supreme Court; Judges, with the Court
Administrator; and national executive officials such as Members of
the Cabinet, Undersecretaries and Assistant Secretaries, including
the foreign service and heads of government-owned or controlled
corporations with original charters and their subsidiaries and state
colleges and universities, with the Office of the President;
(3) Regional and local officials and employees, both

appointive and elective, including other officials and employees of
government owned or controlled corporations and their subsidiaries
and state colleges and universities, with the Deputy Ombudsman in
their respective regions;
(4) Officers of the Armed Forces from the rank of

Colonel or Naval Captain, with the Office of the President, and those
below said ranks, with the Deputy Ombudsman in their respective
regions; and
(5) All other officials and employees defined in Republic

Act No. 3019, as amended, with the Civil Service Commission.
A copy of said statements shall also be filed with their

respective departments, officer or agencies.
(d) All Statements of Assets, Liabilities and Net Worth, as

of December 31, 1988, now on file with their respective agencies
shall constitute sufficient compliance with the requirements of the
Code and they shall be required to accomplish and file the new form
as prescribed in these Rules on or before April 30, 1990, and every
year thereafter.
(e) Every official and employee shall also execute, within

thirty (30) days from date of their assumption of office, the necessary
authority in favor of the Ombudsman to obtain, from all the
appropriate government agencies, including the Bureau of Internal
Revenue, such documents as may show their assets, liabilities, net
197
worth, and also their business interests, and financial connections

in previous years, including, if possible, the year when they first
assumed any office in the government.
(f) Married couples who are both public officials or

employees may file the required statements jointly or separately.
SEC. 2. Every official or employee shall identify and disclose

under oath to the best of his knowledge and information, his relatives
in the government, up to the fourth civil degree of relationship, either
of consanguinity or affinity, including bilas, inso and balae, in the
prescribed form, Annex A, which shall be filed; (a) within thirty (30)
days after assumption of office, the information contained therein
must be reckoned as of his first day of office; (b) on or before April
30 of every year thereafter, the information contained therein must
be reckoned as of the end of the preceding year, or (c) within thirty
(30) days after the separation from the service, the information
contained therein must be reckoned as of his last day of office.
SEC. 3. (a) Any and all statements filed in accordance with

the preceding sections shall be made available for public inspection
at reasonable hours.
(b) Such statements shall be made available for copying or

reproduction after ten (10) working days from the time they are
filed as required by law unless extended for meritorious reasons.
(c) Any duly authorized person requesting a copy of

a statement shall be required to pay a reasonable fee as may be
determined and prescribed by the Civil Service Commission to cover
the cost of reproduction and mailing of such statement, as well as
the cost of certification.
(d) Any statement filed under the Code shall be available

to the public, subject to the foregoing limitations, for a period of
ten (10) years after receipt of the statement. The statement
may be destroyed after such period unless needed in an on-going
investigation.
198
RULE VIII. REVIEW AND COMPLIANCE PROCEDURES
SECTION 1. The following shall have the authority to

establish compliance procedures for the review of statements
to determine whether said statements have been property
accomplished.
(a) In the case of Congress, the designated committees of

both Houses of Congress subject to approval by the affirmative vote
of the majority of the particular House concerned;
(b) In the case of the Executive Department, the heads of

the departments, offices and agencies insofar as their respective
departments, offices and agencies are concerned subject to approval
of the Secretary of Justice;
(c) In the case of the Judicial Department, the Chief Justice

of the Supreme Court; and
(d) In the case of the Constitutional Commissions and

other Constitutional Offices, the respective Chairman and
members thereof; in the case of the Office of the Ombudsman, the
Ombudsman.
The above officials shall likewise have the authority to

render any opinion interpreting the provisions on the review and
compliance procedures in the filing of statement of assets, liabilities,
net worth and disclosure of information.
In the event said authorities determine that a statement is

not properly filed, they shall inform the reporting individual and
direct him to take the necessary corrective action.
The individual to whom an opinion is rendered, and any

other individual involved in a similar factual situation, and who,
after issuance of the opinion acts in good faith in accordance with it
shall not be subjected to any sanction provided in the Code.
199
RULE IX. CONFLICT OF INTEREST AND DIVESTMENT
SECTION 1. (a) An official or employee shall avoid conflict

of interest at all times.
(b) Conflict of interest occurs:
(1) When the official or employee is:
(a) a substantial stockholder; or
(b) a member of the Board of Directors; or
(c) an officer of the corporation; or
(d) an owner or has substantial interest in a business;

or
(e) a partner in a partnership; and
(2) The interest of such corporation or business, or his

rights or duties therein, are opposed to or affected by the faithful
performance of official duty.
(c) A substantial stockholder is any person who owns,

directly or indirectly, shares of stock sufficient to elect a director of
a corporation. This term shall also apply to the parties to a voting
trust.
(d) A voting trust means an agreement in writing between

one or more stockholders of a stock corporation for the purpose of
conferring upon a trustee or trustees the right to vote and other
rights pertaining to the shares for certain periods and subject to
such other conditions provided for in the Corporation Law.
SEC. 2. (a) When a conflict of interest arises, the official

or employee involved shall resign from his position in any private
business enterprise within thirty (30) days from his assumption of
office and/or divest himself of his shareholding or interests within
200
sixty (60) days from such assumption. For those who are already
in the service, and conflict of interest arises, the officer or employee
must resign from his position in the private business enterprise and/
or divest himself of his shareholdings or interests within the periods
herein-above provided, reckoned from the date when the conflict of
interest had arisen. The same rule shall apply where the public
official or employee is a partner in a partnership.
(b) If the conditions in Section 1 (b) concur, divestment shall

be mandatory for any official or employee even if he has resigned
from his position in any private business enterprise.
(c) Divestment shall be to a person or persons other than his

spouse and relatives within the fourth civil degree of consanguinity
or affinity.
(d) The requirements for divestment shall not apply to those

specifically authorized by law and those who serve the government
in an honorary capacity nor to laborers and casuals or temporary
workers.
RULE X – GROUNDS FOR ADMINISTRATIVE

DISCIPLINARY ACTION
SECTION 1. In addition to the grounds for administrative

disciplinary action prescribed under existing laws, the acts and
omissions of any official or employee, whether or not he holds
office or employment in a casual, temporary, hold-over, permanent
or regular capacity, declared unlawful or prohibited by the Code,
shall constitute grounds for administrative disciplinary action, and
without prejudice to criminal and civil liabilities provided therein,
such as:
(a) Directly or indirectly having financial and material

interests in any transaction requiring the approval of his office.
Financial and material interest is defined as a pecuniary or
proprietary interest by which a person will gain or lose something;
201
(b) Owning, controlling, managing or accepting employment

as officer, employee, consultant, counsel, broker, agent, trustee, or
nominee in any private enterprise regulated, supervised or licensed
by his office, unless expressly allowed by law;
(c) Engaging in the private practice of his profession unless

authorized by the Constitution, law or regulation, provided that
such practice will not conflict or tend to conflict with his official
functions;
(d) Recommending any person to any position in a private

enterprise which has a regular or pending official transaction with
this office, unless such recommendation or referral is mandated by
(1) law, or (2) international agreements, commitment and obligation,
or as part of the functions of his office;
These acts shall continue to be prohibited for a period of

one (1) year after resignation, retirement, or separation from public
office, except in the case of paragraph (c) above, but the professional
concerned cannot practice this profession in connection with any
matter before the office he used to be with, within one year after such
resignation, retirement, or separation, provided that any violation
hereof shall be a ground for administrative disciplinary action upon
re-entry to the government service.
(e) Disclosing or misusing confidential or classified

information officially known to him by reason of his office and not
made available to the public, to further his private interests or give
undue advantage to anyone, or to prejudice the public interest;
(f) Soliciting or accepting, directly or indirectly, any gift,

gratuity, favor, entertainment, loan or anything of monetary value
which in the course of his official duties or in connection with any
operation being regulated by, or any transaction which may be
affected by the functions of, his office. The propriety or impropriety
of the foregoing shall be determined by its value, kinship or
relationship between giver and receiver and the motivation. A thing
of monetary value is one which is evidently or manifestly excessive
by its very nature.
202
Gift refers to a thing or a right disposed of gratuitously, or any

act of liberality, in favor of another who accepts it, and shall include
a simulated sale or an ostensibly onerous disposition thereof.
Loan covers both simple loan and commodatum as well as

guarantees, financing arrangements or accommodations intended
to ensure its approval. Commodatum refers to a contract whereby
one of the parties delivers to another something not consumable so
that the latter may use the same for a certain time and return it.
This prohibition shall not include:
(1) Unsolicited gift of nominal or insignificant value not

given in anticipation of, or in exchange for, a favor from a public
official or employee or given after the transaction is completed, or
service is rendered. As to what is a gift of nominal value will depend
on the circumstances of each case taking into account the salary of
the official or employee, the frequency or infrequency of the giving,
the expectation of benefits, and other similar factors.
(2) A gift from a member of his family or relative as defined

in the Code on the occasion of a family celebration, and without any
expectation of pecuniary gain or benefit.
(3) Nominal donations from persons with no regular,

pending, or expected transactions with the department, office or
agency with which the official or employee is connected, and without
any expectation of pecuniary gain or benefit.
(4) Donations coming from private organizations whether

local or foreign, which are considered and accepted as humanitarian
and altruistic in purpose and mission.
(5) Donations from government to government entities.
As to gift or grants from foreign governments, the Congress

consents to
203
(i) The acceptance and retention by public official or

employee of a gift of nominal value tendered and received as a
souvenir or mark of courtesy;
(ii) The acceptance by a public official or employee of a

gift in the nature of a scholarship or fellowship grant or medical
treatment; or
(iii) The acceptance by a public official or employee of

travel grant or expenses for travel taking place entirely outside the
Philippines (such as allowances, transportation, food and lodging)
of more than nominal value if such acceptance is appropriate or
consistent with the interests of the Philippines, and permitted by
the head of office, branch, or agency to which he belongs.
Nothing in the Code shall be construed to restrict or prohibit

any educational, scientific or cultural exchange programs subject to
national security requirements:
(g) Obtaining or using any statement filed under the

Code for any purpose contrary to morals or public policy of any
commercial purpose other than by news and communications media
for dissemination to the general public;
(h) Unfair discrimination in rendering service due to party

affiliation or preference;
(i) Disloyalty to the Republic of the Philippines and the

Filipino people;
(j) Failure to act promptly on letters and requests within

fifteen (15) days from receipt, except as otherwise provided in these
Rules;
(k) Failure to process documents and complete action on

documents and papers within a reasonable time from preparation
thereof, except as otherwise provided in these Rules;
204
(l) Failure to attend to anyone who wants to avail himself

of the services of the office, or to act promptly and expeditiously on
public personal transactions;
(m) Failure to file sworn statements of assets, liabilities

and net worth, and disclosure of business interests and financial
connections; and
(n) Failure to resign from his position in the private business

enterprise within thirty (30) days from assumption of public office
when conflict of interest arises, and/or failure to divest himself of
his shareholdings or interests in private business enterprise within
sixty (60) days from such assumption of public office when conflict of
interest arises: Provided, however, that for those who are already in
the service and a conflict of interest arises, the official or employee
must either resign or divest himself of said interests within the
periods herein-above provided, reckoned from the date when the
conflict of interest had arisen.
RULE XI. PENALTIES
SECTION 1. Any official or employee regardless of whether

or not he holds office or employment in a casual, temporary, holdover,
permanent or regular capacity, committing any violation of the Code
shall be punished with a fine not exceeding the equivalent of six (6)
months salary or suspension not exceeding one (1) year, or removal
depending on the gravity of the offense after due notice and hearing
by the appropriate body or agency. If the violation is punishable by
a heavier penalty under another law, he shall be prosecuted under
the latter statue. Violations of Section 7,8,or 9 of the Code shall be
punishable with imprisonment not exceeding five (5) years, or a fine
not exceeding five thousand pesos (P5,000.00) or both, and, in the
discretion of the court of competent jurisdiction, disqualification to
hold public office.
Any violation hereof proven in a proper administrative

proceeding shall be sufficient cause for removal or dismissal of an
official or employee, even if no criminal prosecution is instituted
against him.
205
Private individuals who participate in conspiracy as co-

principals, accomplices or accessories, with officials or employees,
in violation of the Code, shall be subject to the same penal liabilities
as the officials or employees and shall be tried jointly with them.
The official or employee concerned may bring an action

against any person who obtains or uses a report for any purpose
prohibited by Section 8 (d) of the Code. The Court in which such
action is brought may assess against such person a penalty in any
amount not to exceed twenty five thousand pesos (P25,000.00). If
another sanction hereunder or under any law is heavier, the latter
shall apply.
SEC. 2. Administrative proceedings for violation of these

Rules shall be in accordance with the Civil Service Law and Rules.
RULE XII. FREE VOLUNTARY SERVICE
SECTION 1. (a) Free voluntary service refers to services

rendered by persons who are in government without pay or
compensation.
(b) The requirements of free voluntary service are as

follows:
(1) Issuance of an appropriate document;
(2) Fitness and suitability for the duties and responsibilities

of the particular position; and
(3) Compliance with the rule on nepotism.
(c) The following are the functions or services that

volunteers can perform:
(1) Advisory;
(2) Consultancy or counseling;
206
(3) Recommendatory;
(4) Professional Services;
(5) Staff work such as planning or research; or
(6) Humanitarian.
(d) Those who render free voluntary service to the

government are covered by the following:
(1) Laws on rewards and incentives;
(2) Norms of conduct and ethical standards;
(3) Duties and Obligations of public officers and

employees;
(4) Prohibitions and sanctions enumerated in these Rules;

and
(5) Civil and criminal liability.
(e) Those who render free voluntary service are, however,

exempted from the filing of statement of assets, liabilities and net
worth and financial disclosures, the requirement on divestment and
the appropriate eligibility requirement, for their designations, and
shall not enjoy security of tenure.
Unless otherwise provided in the terms of their designations,

volunteers are prohibited from:
(1) Exercising supervisory functions over personnel;
(2) Exercising functions of positions involving national

security;
207
(3) Having access to confidential or classified information

unless authorized by proper authorities;
(4) Occupying regular plantilla positions;
(5) Having such services credited as government service

and availing themselves of retirement benefits;
(6) Using facilities and resources of the office for partisan

political purposes; and
(7) Receiving any pecuniary benefits such as honoraria,

allowances and other requisites of office.
RULE XIII. AMENDMENT
SECTION 1. The Civil Service Commission may amend or

modify these Rules as may be necessary.
RULE XIV. EFFECTIVITY
SECTION 1. These Rules shall take effect thirty (30) days

following the completion of their publication in the Official Gazette
or in a newspaper of general circulation.
Quezon City, APRIL 21, 1989.
(Sgd.) PATRICIA STO. TOMAS

Chairman
(Sgd.) SAMILO N. BARLONGAY (Sgd.) MARIO D. YANGO

Commissioner Commissioner
208
INSTRUCTIONS
WHO SHALL FILE
All public officials and employees, except those who serve in

an honorary capacity, laborers and casual or temporary workers,
shall file in three (3) copies under oath their Statements of Assets,
Liabilities and Net Worth, Disclosure of Business Interests
and Financial Connections including those of their spouses and
unmarried children under eighteen (18) years of age living in
their households, and Disclosures of Relatives in the Government.
Married couples who are public officials or employees may file the
required statements jointly or separately.
WHEN TO FILE
1. Within thirty (30) days after assumption of office, statements of

which must be reckoned as of his first day of service;
2. On or before April 3 0 of every year thereafter, statements of

which must be reckoned as of the end of the preceding year; or
3. Within thirty (30) days after separation from the service,

statements of which must be reckoned as of his last day of
office.
WHERE TO FILE
Official/Employee Office Where to File

P r e s i d e n t , Vi c e - P r e s i d e n t National Office of the Ombudsman
and members of Constitutional
Commissions and Offices
Secretary of the Senate
Senators
Secretary General of the House of
Congressmen Representatives
Justices of the Supreme Court and Clerk of Court of the Supreme Court
Court of Appeals, Sandiganbayan
209
Official/Employee Office Where to File

Judges – Regional Trial Court, Court Administrator
Metropolitan Circuit Trial Court,
Municipal and Special Courts
National executive officials such Office of the President, Republic of the

as Members of the Cabinet, Philippines
Undersecretaries and Assistant
Secretaries, including the foreign
service and heads of government-
owned or controlled corporations
with original charters and their
subsidiaries and state colleges and
universities
Regional and local officials and Deputy Ombudsman in their respective

employees, both appointive and regions
elective, including other officials and
employees of government-owned or
controlled corporations and their
subsidiaries and state colleges and
universities
Officers of the Armed Forces from the Office of the President, Republic of the
rank of Colonel or Naval Captain Philippines
Officers of the Armed Forces with Deputy Ombudsman in their respective

ranks below those mentioned above regions
All other public officials and Civil Service Commission

employees not mentioned above
DEFINITION OF TERMS:
Real Properties - refer to lands (residential, commercial,

agricultural, etc.), houses and buildings
(apartments, townhouse, etc.) together
with improvements
Improvements - connotes valuable additions of betterment

on real property which enhance its
value.
210
Assessed Value - the appraisal or assessment of real

property made by the City, Provincial or
Municipal Assessor
Current Fair - means the actual value, that is, the fair
Market Value value of the property between one who
wants to purchase and one who wants to
sell it
Personal Properties - properties for personal use such as cash in

banks, cash on hand, jewelry, appliances,
furniture and fixtures, books, cards,
stocks, bonds, and the like
Kind - brief description of the property, e.g.

real property - Farmland, residential house, etc.
personal property - car: 1978 model, Toyota
Mode of Acquisition - manner by which the property is acquired,

e.g. inheritance, donation, purchase, etc.
Creditor - person, group of persons or Company to

whom one is indebted or to whom payment
is due, e.g. GSIS for loans, PhilAm for
insurance, rent
Nature of Business - refers to business interest whether as

Interest proprietor, investor, owner, partner,
shareholder, officer, managing director,
executive, creditor, lawyer , legal
consultant or adviser, financial or
business consultant, accountant, auditor
and the like.
Relatives in the fourth - refer to spouse, parents, brothers

degree consanguinity and sisters and their spouses, nephews
and affinity and nieces and their spouses, first cousin
and their spouses, bilas, inso, balae, step
parents, half brother and half sister and
spouses.
211
212
213
AN ACT PROVIDING FOR AN ORGANIC ACT FOR THE

AUTONOMOUS REGION IN MUSLIM MINDANAO

PREAMBLE
The people of the Autonomous Region in Muslim Mindanao,

imploring the aid of Almighty God, in order to develop a just and
humane society and establish an Autonomous Regional Government
that is truly reflective of their ideals and aspirations within the
framework of the Constitution and national sovereignty, as well as
the territorial integrity of the Republic of the Philippines, and to
secure to themselves and their posterity the blessings of autonomy,
democracy, peace, justice and equality, do ordain and promulgate
this Organic Act through the Congress of the Philippines.
XXX XXX XXX
ARTICLE VIII
The Executive Department
SECTION 1. The executive power shall be vested in a

Regional Governor who shall be elected at large by direct vote of the
people of the Autonomous Region.
XXX XXX XXX
SEC. 12. The Regional Governor or the Vice-Governor may

be removed from office for culpable violation of the Constitution or
this Organic Act, treason, bribery, graft and corruption, other high
crimes or betrayal of public trust by a three-fourths (3/4) vote of all
the Members of the Regional Assembly.
214
The Regional Assembly may initiate the removal of the

Regional Governor or the Vice-Governor under this Section by a
majority vote of all its Members.
The Regional Assembly shall promulgate the necessary rules

to carry out effectively the purposes of this Section.
XXX XXX XXX
SEC. 14. The Regional Governor, the Vice-Governor, and the

Members of the Cabinet and their deputies shall not hold any other
office or employment during their tenure. They shall not, during
said tenure, directly or indirectly, practice any other profession,
participate in any business, or be financially interested in any
contract with, or in any franchise, or special privilege granted by
the Government or any subdivision, agency, or instrumentality
thereof, including government-owned or controlled corporations or
their subsidiaries. They shall strictly avoid conflicts of interest in
the conduct of their office.
The spouse and relatives by consanguinity or affinity within

the fourth civil degree of the Governor shall not, during his tenure, be
appointed members of the regional Cabinet or chairmen of regional
commissions, or heads of bureaus or offices, including government-
owned or controlled corporations and their subsidiaries located in
the Autonomous Region.
XXX XXX XXX
SEC. 16. The Regional Governor shall not issue appointments,

remove personnel, or unless authorized by the Commission on
Elections, undertake public works projects, within the prohibited
period before and after a regional election as provided by law.
XXX XXX XXX
215
ARTICLE XIX
Transitory Provisions
XXX XXX XXX
SEC. 14. This Act shall take effect after fifteen (15) days
following its complete publication in at least two (2) national local
newspapers and one (1) newspaper of general circulation in the
Autonomous Region.
216
AN ACT PROVIDING FOR THE FUNCTIONAL AND STRUCTURAL

ORGANIZATION OF THE OFFICE OF THE OMBUDSMAN,
Be it enacted by the Senate and House of Representatives of

the Philippines in Congress assembled:
SECTION 1. Title. – This Act shall be known as “The

Ombudsman Act of 1989”.
SEC. 2. Declaration of Policy. – The State shall maintain

honesty and integrity in the public service and take positive and
effective measures against graft and corruption.
Public office is a public trust. Public officers and employees

must at all times be accountable to the people, serve them with utmost
responsibility, integrity, loyalty, efficiency, act with patriotism and
justice and lead modest lives.
SEC. 3. Office of the Ombudsman. – The Office of the

Ombudsman shall include the Office of the Overall Deputy, the Office
of the Deputy for Luzon, the Office of the Deputy for the Visayas,
the Office of the Deputy for Mindanao, the Office of the Deputy for
the Armed Forces, and the Office of the Special Prosecutor. The
President may appoint other Deputies as the necessity for it may
arise, as recommended by the Ombudsman.
SEC. 4. Appointment. – The Ombudsman and his Deputies,

including the Special Prosecutor, shall be appointed by the President
from a list of at least twenty one (21) nominees prepared by the
Judicial and Bar Council, and from a list of three (3) nominees
for each vacancy thereafter, which shall be filled within three (3)
months after it occurs, each of which list shall be published in a
news paper of general circulation.
217
In the organization of the Office of the Ombudsman for

the filling up of positions therein, regional, cultural or ethnic
considerations shall be taken into account to the end that the Office
shall be as much as possible representative of the regional, ethnic
and cultural make-up of the Filipino nation.
SEC. 5. Qualifications. – The Ombudsman and his Deputies,

including the Special Prosecutor, shall be natural born citizens of
the Philippines, at least forty (40) years old, of recognized probity
and independence, members of the Philippine Bar, and must not
have been candidates for any elective national or local office in the
immediately preceding election whether regular or special. The
Ombudsman must have, for ten (10) years or more, been a judge or
engaged in the practice of law in the Philippines.
SEC.6. Rank and Salary. – The Ombudsman and his Deputies

shall have the same ranks, salaries and privileges as the Chairman
and members, respectively of a Constitutional Commission. Their
salaries shall not be decreased during their term of office.
SEC. 7. Term of Office. – The Ombudsman and his Deputies,

including the Special Prosecutor, shall serve for a term of seven (7)
years without reappointment.
SEC. 8. Removal; Filing of Vacancy.
(1) In accordance with the provisions of Article XI of

the Constitution, the Ombudsman may be removed from office
on impeachment for and conviction of culpable violation of the
Constitution, treason, bribery, graft and corruption, other high
crimes, or betrayal of public trust.
(2) A Deputy, or the Special Prosecutor, may be removed

from office by the President for any of the grounds provided for the
removal of the Ombudsman, and after due process.
(3) In case of vacancy in the Office of the Ombudsman

due to death, resignation, removal or permanent disability of the
218
incumbent Ombudsman, the Overall Deputy shall serve as Acting

Ombudsman in a concurrent capacity until a new Ombudsman shall
have been appointed for a full term. In case the Overall Deputy
cannot assume the role of Acting Ombudsman, the President may
designate any of the Deputies, or the Special Prosecutor, as Acting
Ombudsman.
(4) In case of temporary absence or disability of the

Ombudsman, the Overall Deputy shall perform the duties of the
Ombudsman until the Ombudsman returns or is able to perform his
duties.
SEC. 9. Prohibitions and Disqualifications. – The

Ombudsman, his Deputies and the Special Prosecutor shall not,
during their tenure, hold any other office or employment. They shall
not, during said tenure, directly or indirectly practice any other
profession, participate in any business, or be financially interested
in any contract with, or in any franchise, or special privilege granted
by the Government or any subdivision, agency or instrumentality
thereof, including government owned or controlled corporations or
their subsidiaries. They shall strictly avoid conflict of interest in
the conduct of their office. They shall not be qualified to run for
any office in the election immediately following their cessation from
office. They shall not be allowed to appear or practice before the
Ombudsman for two (2) years following their cessation from office.
No spouse or relative by consanguinity or affinity within the

fourth civil degree and no law, business or professional partner or
associate of the Ombudsman, his Deputies or Special Prosecutor
within one (1) year preceding the appointment may appear as
counsel or agent on any matter pending before the Office of the
Ombudsman or transact business directly or indirectly therewith.
This disqualification shall apply during the tenure of the

official concerned. This disqualification likewise extends to the law,
business or professional firm for the same period.
219
SEC. 10. Disclosure of Relationship. – It shall be the duty of

the Ombudsman, his Deputies, including the Special Prosecutor to
make under oath, to the best of their knowledge and/or information,
a public disclosure of the identities of, and their relationship with
the persons referred to in the preceding section.
The disclosure shall be filed with the Office of the President

and the Office of the Ombudsman before the appointee assumes
office and every year thereafter. The disclosure made pursuant
to this section shall form part of the public records and shall be
available to any person or entity upon request.
SEC. 11. Structural Organization. – The authority and

responsibility for the exercise of the mandate of the office of the
Ombudsman and for the discharge of its powers and functions
shall be vested in the Ombudsman, who shall have supervision and
control of the said Office.
(1) The Office of the Ombudsman may organize such

directorates for administration and allied services as may be
necessary for the effective discharge of its functions. Those appointed
as directors or heads shall have the rank and salary of line bureau
directors.
(2) The Office of the Overall Deputy shall oversee and

administer the operations of the different offices under the Office of
the Ombudsman. It shall likewise perform such other functions and
duties assigned to it by the Ombudsman.
(3) The Office of the Special Prosecutor shall be composed

of the special prosecutor and his prosecutor staff. The Office of the
Special Prosecutor shall be an organic component of the Office of the
Ombudsman and shall be under the supervision and control of the
Ombudsman.
(4) The Office of the Special Prosecutor shall, under the

supervision and control and upon the authority of the Ombudsman
have the following powers:
220
(a) To conduct preliminary investigation and prosecute

criminal cases within the jurisdiction of the Sandiganbayan;
(b) To enter into plea bargaining agreements; and
(c) To perform such other duties assigned to it by the

Ombudsman.
The Special Prosecutor, shall have the rank and salary of a

Deputy Ombudsman.
(5) The position structure and staffing pattern of the Office

of the Ombudsman, including the office of the Special Prosecutor,
shall be approved and prescribed b the Ombudsman. The
Ombudsman shall appoint all officers and employees of the Office
of the Ombudsman, including those of the Office of the Special
Prosecutor, in accordance with the civil service law, rules and
regulations.
SEC. 12. Official Stations. – The Ombudsman, the Overall

Deputy, the Deputy for Luzon, and the Deputy for the Armed Forces
shall hold office in Metropolitan Manila; the Deputy for the Visayas,
in Cebu City; and the Deputy for Mindanao, in Davao City. The
Ombudsman may transfer their stations within their respective
geographical regions, as public interest may require.
SEC. 13. Mandate. – The Ombudsman and his Deputies, as

protectors of the people. Shall act promptly on complaints filed in
any form or manner against officers or employees of the Government,
or of any subdivision, agency or instrumentality thereof, including
government-owned or controlled corporations, and enforce their
administrative, civil and criminal liability in every case where
the evidence warrants in order to promote efficient service by the
Government to the people.
SEC. 14. Restriction. – No writ of injunction shall be

issued by a court to delay an investigation being conducted by the
Ombudsman under this Act, unless thereto is a prima facie evidence
221
that the subject matter of the investigation is outside the jurisdiction

of the Office of the Ombudsman.
No court shall hear any appeal or application for remedy

against the decision or findings of the Ombudsman, except the
Supreme Court, on pure question of law.
SEC. 15. Powers, Functions and Duties. – The Office of the

Ombudsman shall have the following powers, functions and duties:
(1) Investigate and prosecute on its own or on complaint by

any person, any act or omission of any public officer or employee,
office or agency, when such act or omission appears to be illegal,
unjust, improper or inefficient. It has primary jurisdiction over case
cognizable by the Sandiganbayan and, in the exercise of this primary
jurisdiction, it may take over, at any stage, from any investigatory
agency of Government, the investigation of such cases;
(2) Direct, upon complaint or at its own instance, any

officers or employee of the Government, or of any subdivision,
agency or instrumentality thereof, as well as any government
owned or controlled corporations with original charter, to perform
and expedite an act or duty required b law, or to stop, prevent, and
correct any abuse or impropriety in the performance of duties;
(3) Direct the office concerned to take appropriate action

against a public officer or employee at fault or who neglects to
perform an act or discharge a duty required by law, and recommend
his removal, suspension, demotion, fine, censure, or prosecution,
and ensure compliance therewith; or enforce its disciplinary
authority as provided in Section 21 of this Act: Provided, That the
refusal by any officer without just cause to comply with an order
of the Ombudsman to remove, suspend, demote, fine, censure, or
prosecute an officer or employee who is at fault or who neglects to
perform an act or discharge a duty required by law shall be a ground
for disciplinary action against said officer;
222
(4) Direct the officer concerned, in any appropriate case,

and subject to such limitations as it may provide in its rules of
procedure, to furnish it with copies of documents relating to contracts
or transactions entered into by his office involving the disbursement
or use of public funds or properties, and report any irregularity to
the Commission on Audi for appropriate action;
(5) Request a government agency for assistance and

examine, if necessary, pertinent records and documents.
(6) Publicize matters covered by its investigation of the

matters mentioned in paragraphs (1), (2), (3) and (4) hereof, when
circumstances so warrant and with due prudence: Provided, That
the Ombudsman under its rules and regulations may determine
what cases may not be made public: Provided, further, That any
publicity issued by the Ombudsman shall be balanced, fair and
true.;

high standards of ethics and efficiency;
(8) Administer oaths, issue subpoena and subpoena

duces tecum, and take testimony in any investigation or inquiry,
including the power to examine and have access to bank accounts
and records;
(9) Punish for contempt in accordance with the Rules of

Court and under the same procedure and wit the same penalties
provided therein;
(10) Delegate to the Deputies, or its investigators or

representatives such authority or duty as shall ensure the effective
exercise or performance of the powers, functions, and duties herein
or hereinafter provided;
223
(11) Investigate and initiate the proper action for the recovery
of ill-gotten and/or unexplained wealth amassed after February 25,
1986 and the prosecution of the parties involved therein.
The Ombudsman shall give priority to complaints filed

against high ranking government officials and/or those occupying
supervisory positions, complaints involving grave offenses as well
as complaints involving large sums of money and/or properties.
SEC. 16. Applicability. – The provisions of this Act shall

apply to all kinds of malfeasance, misfeasance and non-feasance
that have been committed by any officer or employee as mentioned
in section 13 hereof, during his tenure of office.
SEC. 17. Immunities. – In all hearings, inquiries, and

proceedings of the Ombudsman, including preliminary investigations
of offenses, no person subpoenaed to testify as a witness shall be
excused from attending and testifying or from producing books,
papers, correspondence, memoranda and/or other records on the
ground that the testimony or evidence, documentary or otherwise,
required of him, may tend to incriminate him or subject him to
prosecution; Provided, That no person shall be prosecuted criminally
for or on account of any matter concerning which he is compelled,
after having claimed the privilege against self-incrimination, to
testify and produce evidence, documentary or otherwise.
Under such terms and conditions as it may determine,

taking into account the pertinent provisions of the Rules of Court,
the Ombudsman may grant immunity from criminal prosecution to
any person whose testimony or whose possession and production
of documents or other evidence may be necessary to determine the
truth in any hearing, inquiry or proceeding being conducted by the
Ombudsman or under its authority, in the performance or in the
furtherance of its constitutional functions and statutory objectives.
The immunity granted under this and the immediately preceding
paragraph shall not exempt the witness from criminal prosecution
for perjury or false testimony nor shall he be exempt from demotion
or removal from office.
224
Any refusal to appear or testify pursuant to the foregoing

provisions shall be subject to punishment for contempt and removal
of the immunity from criminal prosecution.
SEC. 18, Rules of procedure. – (1) The Office of the

Ombudsman shall promulgate its rules of procedure for the effective
exercise or performance of its powers, functions, and duties.
(2) The rules of procedure shall include a provision whereby

the Rules of Court are made suppletory.
(3) The rules shall take effect after fifteen days following
the completion of their publication in the Official Gazette or in three
(3) newspapers of general circulation in the Philippines, one of which
is printed in the national language.
‘
SEC. 19. Administrative Complaints. – The Ombudsman
shall act on all complaints relating, but not limited to acts or
omissions which:
(1) Are contrary to law or regulation;
(2) Are unreasonable, unfair, oppressive and

discriminatory;
(3) Are inconsistent with the general course of an agency’s

function, though in accordance with law.
(4) Proceed from a mistake of law or an arbitrary

ascertainment of facts;
(5) Are in the exercise of discretionary powers but for an

improper purpose; or
(6) Are otherwise irregular, immoral or devoid of

justification.
225
SEC. 20. Exceptions. – The Office of the Ombudsman may

not conduct the necessary investigation of any administrative act or
omission complained of if it believes that:
(1) The complainant has an adequate remedy in another

judicial or quasi-judicial body;
(2) The complaint pertains to a matter outside the

jurisdiction of the Office of the Ombudsman;
(3) The complaint is trivial, frivolous, vexatious or made in

bad faith;
(4) The complainant has no sufficient personal interest in

the subject matter of the grievance; or
(5) The complaint was filed after one year from the
occurrence of the act or omission complained of.
SEC. 21. Officials Subject To Disciplinary Authority,

Exceptions. – The Office of the Ombudsman shall have disciplinary
authority over all elective and appointive officials of the Government
and its subdivisions, instrumentalities and agencies, including
Members of the Cabinet, local government, government-owned or
controlled corporations and their subsidiaries, except over officials
who may be removed only by impeachment or over Members of
Congress, and the Judiciary.
SEC. 22. Investigatory Power. – The Office of the Ombudsman

shall have the power to investigate any serious misconduct in
office allegedly committed b officials removable by impeachment,
for the purpose of filing a verified complaint for impeachment, if
warranted.
In all cases of conspiracy between an officer or employee

of the government and a private person, the Ombudsman and his
Deputies shall have jurisdiction to include such private person in
the investigation and proceed against such private person as the
226
evidence may warrant. The officer or employee and the private

person shall be tried jointly and shall be subject to the same penalties
and liabilities.
SEC. 23. Formal Investigation. – (1) Administrative

investigations conducted by the Office of the Ombudsman shall be
in accordance with its rules of procedure and consistent with due
process.
(2) At its options, the Office of the Ombudsman may

refer certain complaints to the proper disciplinary authority for
the institution of appropriate administrative proceedings against
erring public officers or employees, which shall be terminated
within the period prescribed in the civil service law. Any delay
without just cause in acting on any referral made by the Office of
the Ombudsman shall be ground for administrative action against
the officers or employees to whom such referrals are addressed and
shall constitute a graft offense punishable by a fine of not exceeding
five thousand pesos (P5,000.00).
(3) In any investigation under this Act the Ombudsman may

(a) enter and inspect the premises of any office, agency, commission
or tribunal; (b) examine and have access to any book, record, file,
document or paper; and (1) hold private hearings with both the
complaining individual and the official concerned.
SEC. 24. Preventive Suspension. – The Ombudsman or his

Deputy may preventively suspend any officer or employee under his
authority pending an investigation, if in his judgment the evidence
of guilt is strong, and (a) the charge against such officer or employee
involves dishonesty, oppression or grave misconduct or neglect in
the performance of duty; (b) the charges would warrant removal
from the service; or (c) the respondent’s continued stay in office may
prejudice the case filed against him.
The preventive suspension shall continue until the case is

terminated by the Office of the Ombudsman but not more than six
months, without pay, except when the delay in the disposition of the
227
case by the Office of the Ombudsman is due to the fault, negligence

or petition of the respondent, in which case the period of such delay
shall not be counted in computing the period of suspension herein
provided.
SEC. 25. Penalties. – (1) In administrative proceedings

under Presidential Decree No. 807, the penalties and rules provided
therein shall be applied.
(2) In other administrative proceedings, the penalty

ranging from suspension without pay for one year to dismissal with
forfeiture of benefits or a fine ranging from five thousand pesos
(P5,000.00) to twice the amount malversed, illegally taken or lost, or
both at the discretion of the Ombudsman, taking into consideration
circumstances that mitigate or aggravate the liability of the officer
or employee found guilty of the complaint or charges.
SEC. 26. Inquiries. – (1) The Office of the Ombudsman shall

inquire into acts or omissions of a public officer, employee, office or
agency which, from the reports or complaints it has received, the
Ombudsman or his Deputies consider to be
(a) Contrary to law or regulation;
(b) Unreasonable, unfair, oppressive, irregular or

inconsistent with the general course of the operations and functions
of a public officer, employee, office or agency;
(c) An error in the application or interpretation of law, rules

and regulations, or a gross or palpable error in the appreciation of
facts;
(d) Based on improper motives or corrupt considerations;
(e) Unclear or inadequately explained when reasons should

have been revealed; or
(f) Inefficiently performed or otherwise objectionable.
228
(2) The Office of the Ombudsman shall receive complaints

from any source in whatever form concerning an official act or
omission. It shall act on the complaint immediately and if it finds
the same entirely baseless, it shall dismiss the same and inform
the complainant of such dismissal citing the reasons therefor. If
it finds a reasonable ground to investigate further, it shall first
furnish the respondent public officer or employee with a summary
of the complaint and require him to submit a written answer within
seventy-two hours from receipt thereof. If the answer is found
satisfactory, it shall dismiss the case.
(3) When the complaint consists in delay or refusal to

perform a duty required by law, or when urgent action is necessary
to protect or preserve the right of the complainant, the office of the
Ombudsman shall take steps or measures and issue such orders
directing the officer, employee, office or agency concerned to:
(a) Expedite the performance of duty;
(b) Cease or desist from the performance of a prejudicial

act;
(c) Correct the omission;
(d) Explain fully the administrative act in question; or
(e) Take any other steps as may be necessary under

the circumstances to protect and preserve the rights of the
complainant.
(4) Any delay or refusal to comply with the referral or

directive of the Ombudsman or any of his Deputies, shall constitute
a ground for administrative disciplinary action against the officer or
employee to whom it was addressed.
SEC. 27. Effectivity and Finality of Decisions. – All

provisionary orders of the Office of the Ombudsman are immediately
effective and executor.
229
A motion for reconsideration of any order, directive or

decision of the Office of the Ombudsman must be filed within five
(5) days after receipt of written notice and shall e entertained only
on any of the following grounds:
(1) New evidence has been discovered which materially

affects the order, directive or decision;
(2) Errors of law or irregularities have been committed
prejudicial to the interest of the movant. The motion for
reconsideration shall be resolved within tree (3) days from filing:
Provided, That only one motion for reconsideration shall be
entertained.
Findings of fact by the Office of the Ombudsman when

supported by substantial evidence are conclusive. Any order,
directive or decision imposing the penalty of public censure or
reprimand, suspension or not more than one month’s salary shall
be final and unappealable.
In all administrative disciplinary cases, orders, directives,

or decision of the Office of the Ombudsman may be appealed to the
Supreme Court by filing a petition for certiorari within ten (10) days
from receipt of the written notice of the order, directive or decision
or denial of the motion for reconsideration n accordance with Rule
45 of the Rules of Court.
The above rules may be amended or modified by the Office of

the Ombudsman as the interest of justice may require.
SEC. 28. Investigation in Municipalities, Cities and

Provinces. – The Office of the Ombudsman may establish offices in
municipalities, cities and provinces outside Metropolitan Manila,
under the immediate supervision of the Deputies for Luzon, Visayas
and Mindanao, where necessary as determined by the Ombudsman.
The investigation of complaints may be assigned to the regional
or sectoral deputy concerned or to a special investigator who shall
proceed in accordance with the rules or special instructions or
directives of the Office of the Ombudsman. Pending investigation,
230
the deputy or investigator may issue orders and provisional remedies

which are immediately executor subject to review by the Ombudsman.
Within three (3) days after concluding the investigation, the deputy
or investigator shall transmit, together with the entire records of
the case, his report and conclusions to the Office of the Ombudsman.
Within five (5) days after receipt of said report, the Ombudsman
shall render the appropriate order, directive or decision.
SEC. 29. Change of Unjust Laws. – If the Ombudsman

believes that a law or regulation is unfair or unjust, he shall
recommend to the President and to Congress the necessary changes
therein or the repeal thereof.
SEC. 30. Transmittal/Publication of Decision. – In every

case where the Ombudsman has reached a decision, conclusion
or recommendation adverse to a public official or agency, he shall
transmit his decision, conclusion, recommendation or suggestion to
the head of the department, agency or instrumentality, or of the
province, city or municipality concerned for such immediate action
as may be necessary. When transmitting his adverse decision,
conclusion or recommendation, he shall, unless excused by the
agency or official affected, include the substance of any statement the
public agency or official may have made to him by way of explaining
past difficulties with or present rejection of the Ombudsman’s
proposals.
SEC. 31. Designation of Investigators and Prosecutors. – The

Ombudsman may utilize the personnel of his office and/or designate
or deputize any fiscal, state prosecutor or lawyer in the government
service to act as special investigator or prosecutor to assist in the
investigation and prosecution of certain cases. Those designated
or deputized to assist him as herein provided shall be under his
supervision and control.
The Ombudsman and his investigators prosecutors, whether

regular members of his staff or designated by him as herein provided,
shall have authority to administer oaths, to issue subpoena and
subpoena duces tecum, to summon and compel witnesses, to appear
231
and testify under oath before them and/or bring books, documents
and other things under their control, and to secure the attendance or
presence of any absent or recalcitrant witness through application
before the Sandiganbayan or before any inferior or superior court
having jurisdiction of the place where the witness or evidence is
found.
SEC. 32. Rights and Duties of Witness. – (1) A person

required by the Ombudsman to provide the information shall be paid
the same fees and travel allowances as are extended to witnesses
whose attendance has been required in the trial courts. Upon the
request of the witness, the Ombudsman shall also furnish him
such security for his person and his family as may be warranted by
the circumstances. For this purpose, the Ombudsman may, at its
expense, call upon any police or constabulary nit to provide the said
security.
(2) A person who, with or without service or compulsory

process, provides oral or documentary information requested by the
Ombudsman shall be accorded the same privileges and immunities
as are extended to witnesses in the courts, and shall likewise be
entitled to the assistance of counsel while being questioned.
If a person refuses to respond to the Ombudsman’s or

his Deputy’s subpoena, or refuses to be examined, or engaged in
obstructive conduct, the Ombudsman or his Deputy shall issue an
order directing the person to appear before him to show cause why
he should not be punished for contempt. The contempt proceedings
shall be conducted pursuant to the provisions of the Rules of
Court.
SEC. 33. Duty to Render Assistance to the Office of the

Ombudsman. – Any officer or employee of any department, bureau
or office, subdivision, agency or instrumentality of the Government,
including government-owned or controlled corporations and local
governments, when required by the Ombudsman, his Deputy or
the Special Prosecutor shall render assistance to the Office of the
Ombudsman.
232
SEC. 34. Annual Report. – The Office of the Ombudsman

shall render an annual report of its activities and performance to
the President and to Congress to be submitted within thirty (30)
days from the start of the regular session of Congress.
SEC. 35. Malicious Prosecution. – Any person who, actuated

by malice or gross bad faith, files a completely unwarranted or
false complaint on any government official or employee shall be
subject to a penalty of one (1) month and one (1) day to six (6)
months imprisonment and a fine not exceeding five thousand pesos
(P5,000.00).
SEC. 36. Penalties for Obstruction. – Any person who willfully

obstructs or hinders the proper exercise of the functions of the Office
of the Ombudsman or who willfully misleads or attempts to mislead
the Ombudsman, his Deputies and the Special prosecutor in replying
to their inquiries shall be punished by a fine of not exceeding five
thousand pesos (P5,000.00).
SEC. 37. Franking Privilege. – All official mail matters and

telegrams of the Ombudsman addressed for delivery within the
Philippines shall be received, transmitted, and delivered free of
charge: Provided, That such mail matters when addressed to private
person or non-government offices shall not exceed one hundred and
twenty (120) grams. All mail matters and telegrams sent through
government telegraph facilities containing complaints to the Office
of the Ombudsman shall be transmitted free of charge, provided
that the telegram shall contain not more than one hundred fifty
(150) words.
SEC. 38. Fiscal Autonomy. – The Office of the Ombudsman

shall enjoy fiscal autonomy. Appropriations for the office of the
Ombudsman may not be reduced below the amount appropriated
for the previous years and, after approval, shall be automatically
SEC. 39. Appropriations. – The appropriation for the Office

of the Special Prosecutor in the current General Appropriations Act
233
is hereby transferred to the Office of the Ombudsman. Thereafter,

such sums as may be necessary shall be included in the annual
General Appropriations Act.

is held unconstitutional, other provisions not affected thereby shall
remain valid and binding.
SEC. 41. Repealing Clause. – All laws, presidential decrees,

letters of instructions, executive orders, rules and regulations
insofar as they are inconsistent with this Act, are hereby repealed
or amended as the case may be.
SEC. 42. Effectivity. – This Act shall take effect after fifteen
(15) days following its publication in the Official Gazette or in three
(3) newspapers of general circulation in the Philippines.
234
AN ACT STRENGTHENING CIVILIAN SUPREMACY OVER

THE MILITARY RETURNING TO THE CIVIL COURTS
THE JURISDICTION OVER CERTAIN OFFENSES
INVOLVING MEMBERS OF THE ARMED FORCES OF THE
PHILIPPINES, OTHER PERSONS SUBJECT TO MILITARY
LAW, AND THE MEMBERS OF THE PHILIPPINE
NATIONAL POLICE, REPEALING FOR THE PURPOSE
CERTAIN PRESIDENTIAL DECREES

SECTION 1. Members of the Armed Forces of the Philippines

and other persons subject to military law, including members of
the citizens Armed Forces Geographical Units, who commit crimes
or offenses penalized under the Revised Penal Code other special
penal laws, or local government ordinances regardless of whether
or not civilians are co-accused, victims, or offended parties which
may be natural or juridical persons, shall be tried by the proper civil
court except when the offense, as determined before arraignment
by the civil court, is service-connected, in which case the offense
shall be tried by court-martial: provided, that the President of the
Philippines may, in the interest of justice, order or direct at any
time before arraignment that any such crimes or offenses be tried
by the proper civil courts.
As used in this Section, service-connected crimes or offenses

shall be limited to those defined in Articles 54 to 70, Articles 72 to 92,
and Articles 95 to 97 of Commonwealth Act No. 408, as amended.
In imposing the penalty for such crimes or offenses, the

court-martial may take into consideration the penalty prescribed
therefore in the Revised Penal Code, other special laws, or local
government ordinances.
235
SEC. 2. Subject to the provisions of Section 1 hereof, all

cases filed or pending for filing with court-martial or other similar
bodies, except those where the accused had already been arraigned,
shall within thirty (30) days following the effectivity of this Act
transferred to the proper civil courts: provided, that the Chief of
the Armed Forces of the Philippines shall, upon petition before
commencement of trial and with the written consent of the accused,
order the transfer of such excepted case or cases to the proper civil
courts for trial and resolution.
SEC. 3. Presidential Decrees Nos. 1822, 1822-A, 1850 and

1952, and all acts, general orders, executive orders, and other
presidential issuances, rules and regulations inconsistent with this
Act are hereby repealed or amended accordingly.
SEC. 4. This Act shall take effect fifteen (15) days following its
publication in the Official Gazette or in at least two (2) newspapers
of general circulation.
236
AN ACT DEFINING AND PENALIZING THE CRIME OF

PLUNDER

Philippines in congress assembled:
SECTION 1. Definition of Terms. – As used in this Act, the

term—
(a) Public Officer means any person holding any public

office in the Government of the Republic of the Philippines by virtue
of an appointment, election or contract.
(b) Government includes the National Government, and

any of its subdivisions, agencies or instrumentalities, including
government-owned or –controlled corporations and their
subsidiaries.
(c) Person includes any natural or juridical person, unless

(d) Ill-gotten wealth means any asset, property, business

enterprise or material possession of any person within the purview
of Section Two (2) hereof, acquired by him directly or indirectly
through dummies, nominees, agents, subordinates and/or business
associates by any combination or series of the following means or
similar schemes:
1) Through misappropriation, conversion, misuse, or

malversation of public funds or raids on the public treasury;
2) By receiving, directly or indirectly, any commission, gift,

share, percentage, kickbacks or any other form of pecuniary benefit
from any person and/or entity in connection with any government
contract or project or by reason of the office or position of the public
officer concerned;
237
3) By the illegal or fraudulent conveyance or disposition

of assets belonging to the National Government or any of its
subdivisions, agencies or instrumentalities or government-owned
or -controlled corporations and their subsidiaries;
4) By obtaining, receiving or accepting directly or

indirectly any shares of stock, equity or any other form of interest
or participation including the promise of future employment in any
business enterprise or undertaking;
5) By establishing agricultural, industrial or commercial

monopolies or other combinations and/or implementation of decrees
and orders intended to benefit particular persons or special interests;
or
6) By taking undue advantage of official position, authority,
relationship, connection or influence to unjustly enrich himself or
themselves at the expense and to the damage and prejudice of the
Filipino people and the Republic of the Philippines.
SEC. 2. Definition of the Crime of Plunder; Penalties. – Any

public officer who, by himself or in connivance with members of his
family, relatives by affinity or consanguinity, business associates,
subordinates or other persons, amasses, accumulates or acquires ill-
gotten wealth through a combination or series of overt or criminal
acts as described in Section 1(d) hereof, in the aggregate amount or
total value of at least Seventy-five million pesos ((P75,000,000.00).
shall be guilty of the crime of plunder and shall be punished by
life imprisonment with perpetual absolute disqualification from
holding any public office. Any person who participated with the
said public officer in the commission of plunder shall likewise be
punished. In the imposition of penalties, the degree of participation
and the attendance of mitigating and extenuating circumstances
shall be considered by the court. The court shall declare any and all
ill-gotten wealth and their interests and other incomes and assets
including the properties and shares of stocks derived from the
deposit or investment thereof forfeited in favor of the State.
238
SEC. 3. Competent Court. – Until otherwise provided by

law, all prosecutions under this Act shall be within the original
jurisdiction of the Sandiganbayan.
SEC. 4. Rule of Evidence. – For purposes of establishing the

crime of plunder, it shall not be necessary to prove each and every
criminal act done b the accused in the furtherance of the scheme
or conspiracy to amass, accumulate or acquire ill-gotten wealth, t
being sufficient to establish beyond reasonable doubt a pattern of
overt or criminal acts indicative of the overall unlawful scheme or
conspiracy.
SEC. 5. Suspension and Loss of Benefits. – Any public officer

against whom any criminal prosecution under a valid information
under this Act in whatever stage of the execution and mode of
participation, is pending in court shall be suspended from office.
Should he be convicted by final judgment, he shall lose all retirement
or gratuity benefits under any law, but if he is acquitted, he shall
be entitled to reinstatement and to the salaries and other benefits
which he failed to receive during suspension, unless in the meantime,
administrative proceedings have been filed against him.
SEC. 6. Prescription of Crimes. – The crime punishable

under this Act shall prescribe in twenty (20) years. However, the
right of the State to recover properties unlawfully acquired by public
officers from them or from their nominees or transferees shall not be
barred by prescription, latches, or estoppels.
SEC.7. Separability of Provisions. – If any provisions of this

Act or the application thereof to any person or circumstance is held
invalid, the remaining provisions of this Act and the application
of such provisions to other persons or circumstances shall not be
affected thereby.
SEC.8. Scope. – This Act shall not apply to or affect pending

prosecutions or proceedings, or those which may be instituted under
Executive Order No. 1, issued and promulgated on February 28,
1986.
239
SEC. 9. Effectivity. – This Act shall take effect after fifteen

(15) days from its publication in the Official Gazette and in a
newspaper of general circulation.
APPROVED, July 12, 1991.
240
AN ACT PROVIDING FOR A LOCAL GOVERNMENT CODE OF

1991

BOOK I
GENERAL PROVISIONS
TITLE I
BASIC PRINCIPLES
CHAPTER I
The Code: Policy and Application
SECTION 1. Title. - This Act shall be known and cited as the

“Local Government Code of 1991”.
SEC. 2. Declaration of Policy. - (a) It is hereby declared the

policy of the State that the territorial and political subdivisions of the
State shall enjoy genuine and meaningful local autonomy to enable
them to attain their fullest development as self-reliant communities
and make them more effective partners in the attainment of
national goals. Toward this end, the State shall provide for a more
responsive and accountable local government structure instituted
through a system of decentralization whereby local government
units shall be given more powers, authority, responsibilities, and
resources. The process of decentralization shall proceed from the
national government to the local government units.
(b) It is also the policy of the State to ensure the

accountability of local government units through the institution of
effective mechanisms of recall, initiative and referendum.
241
(c) It is likewise the policy of the State to require all

national agencies and offices to conduct periodic consultations with
appropriate local government units, nongovernmental and people’s
organizations, and other concerned sectors of the community
before any project or program is implemented in their respective
jurisdictions.
XXX XXX XXX
TITLE II
ELECTIVE OFFICIALS
XXX XXX XXX
CHAPTER IV
Disciplinary Actions
SEC. 60. Grounds for Disciplinary Actions. - An elective local

official may be disciplined, suspended, or removed from office on any
of the following grounds:
(a) Disloyalty to the Republic of the Philippines;
(b) Culpable violation of the Constitution;
(c) Dishonesty, oppression, misconduct in office, gross

negligence, or dereliction of duty;
(d) Commission of any offense involving moral turpitude or

an offense punishable by at least prision mayor;
(e) Abuse of authority;
(f) Unauthorized absence for fifteen (15) consecutive

working days, except in the case of members of the sangguniang
242
panlalawigan, sangguniang panlungsod, sangguniang bayan, and

sangguniang barangay;
(g) Application for, or acquisition of, foreign citizenship or

residence or the status of an immigrant of another country; and
(h) Such other grounds as may be provided in this Code and

other laws.
An elective local official may be removed from office on the

grounds enumerated above by order of the proper court.
SEC. 61. Form and Filing of Administrative Complaints. - A

verified complaint against any erring local elective official shall be
prepared as follows:
(a) A complaint against any elective official of a province, a

highly urbanized city, an independent component city or component
city shall be filed before the Office of the President;
(b) A complaint against any elective official of a municipality

shall be filed before the sangguniang panlalawigan whose decision
may be appealed to the Office of the President; and
(c) A complaint against any elective barangay official shall

be filed before the sangguniang panlungsod or sangguniang bayan
concerned whose decision shall be final and executory.
SECTION 62. Notice of hearing. - (a) Within seven (7) days

after the administrative complaint is filed, the Office of the President
or the sanggunian concerned, as the case may be, shall require the
respondent to submit his verified answer within fifteen (15) days
from receipt thereof, and commence the investigation of the case
within ten (10) days after receipt of such answer of the respondent.
(b) When the respondent is an elective official of a province

or highly urbanized city, such hearing and investigation shall be
243
conducted in the place where he renders or holds office. For all

other local elective officials, the venue shall be the place where the
sanggunian concerned is located.
(c) However, no investigation shall be held within ninety

(90) days immediately prior to any local election, and no preventive
suspension shall be imposed within the said period. If preventive
suspension has been imposed prior to the 90-day period immediately
preceding local election, it shall be deemed automatically lifted upon
the start of aforesaid period.
SEC. 63. Preventive Suspension. - (a) Preventive suspension

may be imposed:
(1) By the President, if the respondent is an elective official

of a province, a highly urbanized or an independent component
city;
(2) By the governor, if the respondent is an elective official

of a component city or municipality; or
(3) By the mayor, if the respondent is an elective official of

the barangay.
(b) Preventive suspension may be imposed at any time

after the issues are joined, when the evidence of guilt is strong, and
given the gravity of the offense, there is great probability that the
continuance in office of the respondent could influence the witnesses
or pose a threat to the safety and integrity of the records and other
evidence: Provided, That, any single preventive suspension of local
elective officials shall not extend beyond sixty (60) days: Provided,
further, That in the event that several administrative cases are filed
against an elective official, he cannot be preventively suspended for
more than ninety (90) days within a single year on the same ground
or grounds existing and known at the time of the first suspension.
(c) Upon expiration of the preventive suspension, the

suspended elective official shall be deemed reinstated in office
244
without prejudice to the continuation of the proceedings against

him, which shall be terminated within one hundred twenty (120)
days from the time he was formally notified of the case against
him. However, if the delay in the proceedings of the case is due to
his fault, neglect, or request, other than the appeal duly filed, the
duration of such delay shall not be counted in computing the time of
termination of the case.
(d) Any abuse of the exercise of the power of preventive

suspension shall be penalized as abuse of authority.
SEC. 64. Salary of Respondent Pending Suspension. - The

respondent official preventively suspended from office shall receive
no salary or compensation during such suspension; but upon
subsequent exoneration and reinstatement, he shall be paid full
salary or compensation including such emoluments accruing during
such suspension.
SEC. 65. Rights of Respondent. - The respondent shall be

accorded full opportunity to appear and defend himself in person
or by counsel, to confront and cross-examine the witnesses against
him, and to require the attendance of witnesses and the production
of documentary evidence in his favour through the compulsory
process of subpoena or subpoena duces tecum.
SEC. 66. Form and Notice of Decision. - (a) The investigation

of the case shall be terminated within ninety (90) days from the start
thereof. Within thirty (30) days after the end of the investigation,
the Office of the President or the sanggunian concerned shall render
a decision in writing stating clearly and distinctly the facts and the
reasons for such decision. Copies of said decision shall immediately
be furnished the respondent and all interested parties.
(b) The penalty of suspension shall not exceed the

unexpired term of the respondent or a period of six (6) months for
every administrative offense, nor shall said penalty be a bar to the
candidacy of the respondent so suspended as long as he meets the
qualifications required for the office.
245
(c) The penalty of removal from office as a result of an

administrative investigation shall be considered a bar to the
candidacy of the respondent for any elective position.
SEC. 67. Administrative Appeals. - Decisions in administrative

cases may, within thirty (30) days from receipt thereof, be appealed
to the following:
(a) The sangguniang panlalawigan, in the case of decisions

of the sangguniang panlungsod of component cities and the
sangguniang bayan; and
(b) The Office of the President, in the case of decisions of

the sangguniang panlalawigan and the sangguniang panlungsod of
highly urbanized cities and independent component cities.
‘
Decisions of the Office of the President shall be final and
executory.
SEC. 68. Execution Pending Appeal. - An appeal shall not

prevent a decision from becoming final or executory. The respondent
shall be considered as having been placed under preventive
suspension during the pendency of an appeal in the event he wins
such appeal. In the event the appeal results in an exoneration, he
shall be paid his salary and such other emoluments during the
pendency of the appeal.
XXX XXX XXX
TITLE III.
HUMAN RESOURCES AND DEVELOPMENT
SEC. 89. Prohibited Business and Pecuniary Interest. - (a)

It shall be unlawful for any local government official or employee,
directly or indirectly, to:
(1) Engage in any business transaction with the local
246
government unit in which he is an official or employee or over

which he has the power of supervision, or with any of its authorized
boards, officials, agents, or attorneys, whereby money is to be paid,
or property or any other thing of value is to be transferred, directly
or indirectly, out of the resources of the local government unit to
such person or firm;
(2) Hold such interests in any cockpit or other games

licensed by a local government unit;
(3) Purchase any real estate or other property forfeited in

favor of such local government unit for unpaid taxes or assessment,
or by virtue of a legal process at the instance of the said local
government unit;
(4) Be a surety for any person contracting or doing business

with the local government unit for which a surety is required; and
(5) Possess or use any public property of the local government

unit for private purposes.
(b) All other prohibitions governing the conduct of national

public officers relating to prohibited business and pecuniary interest
so provided for under Republic Act Numbered Sixty-seven thirteen
(R.A. No. 6713) otherwise known as the “Code of Conduct and Ethical
Standards for Public Officials and Employees” and other laws shall
also be applicable to local government officials and employees.
SEC. 90. Practice of Profession. - (a) All governors, city and

municipal mayors are prohibited from practicing their profession or
engaging in any occupation other than the exercise of their functions
as local chief executives.
(b) Sanggunian members may practice their professions,

engage in any occupation, or teach in schools except during session
hours: Provided, That sanggunian members who are also members
of the Bar shall not:
247
(1) Appear as counsel before any court in any civil

case wherein a local government unit or any office, agency, or
instrumentality of the government is the adverse party;
(2) Appear as counsel in any criminal case wherein an

officer or employee of the national or local government is accused of
an offense committed in relation to his office.
(3) Collect any fee for their appearance in administrative

proceedings involving the local government unit of which he is an
official; and
(4) Use property and personnel of the government except

when the sanggunian member concerned is defending the interest
of the government.
(c) Doctors of medicine may practice their profession

even during official hours of work only on occasions of emergency:
Provided, That the officials concerned do not derive monetary
compensation therefrom.
SEC. 91. Statement of Assets and Liabilities. - (a) Officials

and employees of local government units shall file sworn statements
of assets, liabilities and net worth, lists of relatives within the
fourth civil degree of consanguinity or affinity in government
service, financial and business interests, and personnel data sheets
as required by law.
SEC. 92. Oath of Office. - (a) All elective and appointive local
officials and employees shall, upon assumption to office, subscribe
to an oath or affirmation of office in the prescribed form. The oath
or affirmation of office shall be filed with the office of the local chief
executive concerned. A copy of the oath or affirmation of office of
all elective and appointive local officials and employees shall be
preserved in the individual personal records file under the custody
of the personnel office, division, or section of the local government
unit concerned.
248
SEC. 93. Partisan Political Activity. - No local official or

employee in the career civil service shall engage directly or indirectly
in any partisan political activity or take part in any election,
initiative, referendum, plebiscite, or recall, except to vote, nor shall
he use his official authority or influence to cause the performance
of any political activity by any person or body. He may, however,
express his views on current issues, or mention the names of
certain candidates for public office whom he supports. Elective local
officials may take part in partisan political and electoral activities,
but it shall be unlawful for them to solicit contributions from their
subordinates or subject these subordinates to any of the prohibited
acts under the Omnibus Election Code.
SEC. 94. Appointment of Elective and Appointive Local

Officials; Candidates Who Lost in an Election. - (a) No elective
or appointive local official shall be eligible for appointment or
designation in any capacity to any public office or position during
his tenure.
Unless otherwise allowed by law or by the primary functions

of his position, no elective or appointive local official shall hold any
other office or employment in the government or any subdivision,
agency or instrumentality thereof, including government-owned or
controlled corporations or their subsidiaries.
(b) Except for losing candidates in barangay elections, no

candidate who lost in any election shall, within one (1) year after
such election, be appointed to any officer in the government or any
government-owned or controlled corporations or in any of their
subsidiaries.
SEC. 95. Additional or Double Compensation. - No elective or

appointive local official or employee shall receive additional, double,
or indirect compensation, unless specifically authorized by law, nor
accept without the consent of Congress, any present, emoluments,
office, or title of any kind from any foreign government. Pensions or
gratuities shall not be considered as additional, double, or indirect
compensation.
249
SEC. 96. Permission to Leave Station. - (a) Provincial, city,

municipal, and barangay appointive officials going on official travel
shall apply and secure written permission from their respective local
chief executives before departure. The application shall specify the
reasons for such travel, and the permission shall be given or withheld
based on considerations of public interest, financial capability of the
local government unit concerned and urgency of the travel. Should
the local chief executive concerned fail to act upon such application
within four (4) working days from receipt thereof, it shall be deemed
approved.
(b) Mayors of component cities and municipalities shall

secure the permission of the governor concerned for any travel
outside the province.
(c) Local government officials traveling abroad shall notify

their respective sanggunian: Provided, That when the period of
travel extends to more than three (3) months, during periods of
emergency or crisis or when the travel involves the use of public
funds, permission from the Office of the President shall be secured.
(d) Field officers of national agencies or offices assigned

in provinces, cities, and municipalities shall not leave their official
stations without giving prior written notice to the local chief
executive concerned. Such notice shall state the duration of travel
and the name of the officer whom he shall designate to act for and
in his behalf during his absence.
XXX XXX XXX
TITLE IV
FINAL PROVISIONS
SEC. 534. Repealing Clause. - (a) Batas Pambansa Blg. 337,

otherwise known as the Local Government Code, Executive Order
No. 112 (1987), and Executive Order No. 319 (1988) are hereby
repealed.
250
(b) Presidential Decree Nos. 684, 1191, 1508 and such other
decrees, orders, instructions, memoranda and issuances related to
or concerning the barangay are hereby repealed.
(c) The provisions of Sections 2, 3, and 4 of Republic Act No.

1939 regarding hospital fund; Section 3, a (3) and b (2) of Republic
Act No. 5447 regarding the Special Education Fund; Presidential
Decree No. 144 as amended by Presidential Decree Nos. 559 and
1741; Presidential Decree No. 231 as amended; Presidential Decree
No. 436 as amended by Presidential Decree No. 558; and Presidential
Decree Nos. 381, 436, 464, 477, 526, 632, 752, and 1136 are hereby
repealed and rendered of no force and effect.
(d) Presidential Decree No. 1594 is hereby repealed insofar

as it governs locally-funded projects.
(e) The following provisions are hereby repealed or amended

insofar as they are inconsistent with the provisions of this Code:
Sections 2, 16 and 29 of Presidential Decree No. 704; Section 12 of
Presidential Decree No. 87, as amended; Section 52, 53, 66, 67, 68,
69, 70, 71, 72, 73, and 74 of Presidential Decree No. 463, as amended;
and Section 16 of Presidential Decree No. 972, as amended, and
(f) All general and special laws, acts, city charters, decrees,
executive orders, proclamations and administrative regulations, or
part or parts thereof which are inconsistent with any of the provisions
of this Code are hereby repealed or modified accordingly.
SEC. 535. Separability Clause. - If, for any reason or reasons,

any part or provision of this Code shall be held to be unconstitutional
or invalid, other parts or provisions hereof which are not affected
thereby shall continue to be in full force and effect.
SEC. 536. Effectivity Clause. - This Code shall take effect

on January first, nineteen hundred ninety-two, unless otherwise
provided herein, after its complete publication in at least one (1)
APPROVED, October 10, 1991.
251
AN ACT INCREASING THE PENALTIES FOR TAX EVASION,

AMENDING FOR THIS PURPOSE THE PERTINENT
SECTIONS OF THE NATIONAL INTERNAL REVENUE
CODE, AS AMENDED

XXX XXX XXX
SEC. 12. Section 268 of the National Internal Revenue Code,

as amended, is hereby further amended to read as follows:
“SEC. 268. Violations committed by government enforcement

officers. – Every official, agent, or employee of the Bureau of Internal
Revenue or any other agency of the Government charged with the
enforcement of the provisions of this Code who is guilty of any of
the offenses hereinbelow specified shall, upon conviction for each
act or omission, be fined not less than Fifty thousand pesos but not
more than One hundred thousand pesos and suffer imprisonment
of not less than ten years but not more than fifteen years and shall
likewise suffer an additional penalty of perpetual disqualification to
hold public office, to vote, and to participate in any public election:
“(1) Those guilty of extortion or willful oppression through

the use of his office;
“(2) Those who knowingly demand other or greater sums

than are authorized by law or receive any fees, compensation, or
reward, except as prescribed, by law for the performance of any
duty;
“(3) Those who willfully neglect to give receipts, as required

by law for any sums collected in the performance of duty or who
willfully neglect to perform any other duties enjoined by law;
252
“(4) Those who conspire or collude with another or others

to defraud the revenues or otherwise violate the provisions of this
Code;
“(5) Those who by neglect or design permit the violation of

the law by any other person;
“(6) Those who make or sign any false entry or entries in

any books, or make or sign any false certificate or return;
“(7) Those who allow or conspire or collude with another

to allow the unauthorized retrieval, withdrawal, or recall of any
return, statement, or declaration after the same has been officially
received by the Bureau of Internal Revenue;
“(8) Those who, having knowledge or information of a

violation of this Code or of any fraud committed on the revenues
collectible by the Bureau of Internal Revenue, fail to report such
knowledge or information to their superior officer or to report as
otherwise required by law; and
“(9) Those who, without the authority of law, demand

or accept or attempt to collect, directly or indirectly, as payment
or otherwise any sum of money or other thing of value for the
for any violation or alleged violation of this Code.”
XXX XXX XXX
SEC. 15. All laws, decrees, orders, rules and regulations,

and other issuances inconsistent with the provisions of this Act are
hereby repealed or amended accordingly.
253
AN ACT TO REVITALIZE AND STRENGTHEN THE BUREAU OF

CUSTOMS, AMENDING FOR THE PURPOSE CERTAIN
SECTIONS OF THE TARIFF AND CUSTOMS CODE OF
THE PHILIPPINES, AS AMENDED

XXX XXX XXX
“SEC. 1802. Abandonment of Imported Articles. — An

abandoned article shall ipso facto be deemed the property of
the Government and shall be disposed of in accordance with the
provisions of this Code.
“Nothing in this section shall be construed as relieving the

owner or importer from any criminal liability which may arise from
any violation of law committed in connection with the importation
of the abandoned article.
“Any official or employee of the Bureau of Customs or of other

government agencies who, having knowledge of the existence of an
abandoned article or having control or custody of such abandoned
article, fails to report to the Collector within twenty-four (24) hours
from the time the article is deemed abandoned, shall be punished
with the penalties prescribed in Paragraph 1, Section 3604 of this
Code.”
XXX XXX XXX
SEC. 4. Separability Clause. — If any part of this Act

should, for any reason be held to be invalid or unconstitutional, the
remaining parts thereof shall remain in full force and effect.
SEC. 5. Repealing Clause. — All laws, decrees, executive

orders, rules and regulations and other issuances inconsistent with
this Act are hereby repealed or amended accordingly.
254
SEC. 6. Effectivity Clause. — This Act shall take effect after

fifteen (15) days from the date of publication in the Official Gazette
or in at least two (2) national newspapers of general circulation,
whichever comes earlier.
255
AN ACT TO IMPOSE THE DEATH PENALTY ON CERTAIN

HEINOUS CRIMES, AMENDING FOR THAT PURPOSE
THE REVISED PENAL LAWS, AS AMENDED, OTHER
SPECIAL PENAL LAWS, AND FOR OTHER PURPOSES
WHEREAS, the Constitution, specifically Article III, Section

19 paragraph (1) thereof, states “Excessive fines shall not be imposed
nor cruel, degrading or inhuman punishment inflicted. Neither shall
death penalty be imposed, unless, for compelling reasons involving
heinous crimes, the Congress hereafter provides for it. . .”;
WHEREAS, the crimes punishable by death under this

Act are heinous for being grievous, odious and hateful offenses
and which, by reason of their inherent or manifest wickedness,
viciousness, atrocity and perversity are repugnant and outrageous
to the common standards and norms of decency and morality in a
just, civilized and ordered society;
WHEREAS, due to the alarming upsurge of such crimes

which has resulted not only in the loss of human lives and wanton
destruction of property but also affected the nation’s efforts towards
sustainable economic development and prosperity while at the same
time has undermined the people’s faith in the Government and the
latter’s ability to maintain peace and order in the country;
WHEREAS, the Congress, in the justice, public order and

the rule of law, and the need to rationalize and harmonize the penal
sanctions for heinous crimes, finds compelling reasons to impose the
death penalty for said crimes;
Now, therefore,

XXX XXX XXX
256
SEC. 19. Section 24 of Republic Act No. 6425, as amended,

known as the Dangerous Drugs Act of 1972, is hereby amended to
read as follows :
“SEC. 24. Penalties for Government Official and Employees

and Officers and Members of Police Agencies and the Armed Forces,
‘Planting’ of Evidence. – The maximum penalties provided for
Section 3, 4(1), 5(1), 6, 7, 8, 9, 11, 12 and 13 of Article II and Sections
14, 14-A, 15(1), 16 and 19 of Article III shall be imposed, if those
found guilty of any of the said offenses are government officials,
employees or officers, including members of police agencies and the
armed forces.
Any such above government official, employee or officer

who is found guilty of “planting” any dangerous drugs punished in
Sections 3, 4, 7, 8, 9 and 13 of Article II and Sections 14, 14-A, 15
and 16 of Article III of this Act in the person or in the immediate
vicinity of another as evidence to implicate the latter, shall suffer
the same penalty as therein provided.”
XXX XXX XXX
SEC. 28. This Act shall take effect fifteen (15) days after its
publication in two (2) national newspapers of general circulation.
The publication shall not be later than seven (7) days after the
approval hereof.
257
AN ACT TO STRENGTHEN THE FUNCTIONAL AND STRUCTURAL

ORGANIZATION OF THE SANDIGANBAYAN, AMENDING
FOR THAT PURPOSE PRESIDENTIAL DECREE NO. 1606,
AS AMENDED

SECTION 1. Section 3 of Presidential Decree No. 1606, as

amended by Executive Order No. 184, is hereby further amended to
read as follows:
“SEC. 3. Division of the Court; Quorum. - The Sandiganbayan

shall sit in five (5) divisions of three justices each. The five (5) may
sit at the same time.
“The first three divisions shall be stationed in the Metro

Manila area, the fourth division shall be in Cebu City for cases
coming from the Visayas region, and the fifth division shall be in
Cagayan de Oro City for cases coming from the Mindanao region.
“Three Justices shall constitute a quorum for sessions

in divisions: Provided, That when the required quorum for the
particular division cannot be had due to the legal disqualification or
temporary disability of a Justice or of a vacancy occurring therein,
the Presiding Justice may designate an Associate Justice of the
Court, to be determined by strict rotation on the basis of the reverse
order of precedence, to sit as a special member of said division with
all the rights and prerogatives of a regular member of said division
in the trial and determination of a case or cases assigned thereto,
unless the operation of the court will be prejudiced thereby, in which
case, the President shall, upon the recommendation of the Presiding
Justice, designate any Justice or Justices of the Court of Appeals to
sit temporarily therein.”
258
SEC. 2. Section 4 of the same Decree is hereby further

“SEC. 4. Jurisdiction. The Sandiganbayan shall exercise

original jurisdiction in all cases involving:
“a. Violations of Republic Act No. 3019, as amended,

otherwise known as the Anti-Graft and Corrupt Practices Act,
Republic Act No. 1379, and Chapter II, Section 2, Title VII of the
Revised Penal Code, where one or more of the principal accused
are officials occupying the following positions in the government,
whether in permanent, acting or interim capacity, at the time of the
commission of the offense:
“(1) Officials of the executive branch occupying the positions

of regional director and higher, otherwise classified as grade 27 and
higher, of the Compensation and Position Classification Act of 1989
(Republic Act No. 6758), specifically including:
“(a) Provincial governors, vice-governors, members of the

sangguniang panlalawigan, and provincial treasurers, assessors,
engineers, and other provincial department heads;
“(b) City mayors, vice-mayors, members of the sangguniang

panlungsod, city treasurers, assessors, engineers, and other city
department heads;
“(c) Officials of the diplomatic service occupying the position

of consul and higher;
“(d) Philippine army and air force colonels, naval captains,

and all officers of higher rank;
“(e) PNP chief superintendent and PNP officers of higher

rank;
“(f) City and provincial prosecutors and their assistants,

and officials and prosecutors in the Office of the Ombudsman and
special prosecutor;
259
“(g) Presidents, directors or trustees, or managers of

government-owned or controlled corporations, state universities or
educational institutions or foundations;
“(2) Members of Congress and officials thereof classified

as Grade “27” and up under the Compensation and Position
Classification Act of 1989;
“(3) Members of the judiciary without prejudice to the

provisions of the Constitution;
“(4) Chairmen and members of Constitutional Commissions,

without prejudice to the provisions of the Constitution; and
“(5) All other national and local officials classified as Grade

“27” and higher under the Compensation and Position Classification
Act of 1989;
“b. Other offenses or felonies committed by the public

officials and employees mentioned in subsection (a) of this section
in relation to their office.
“c. Civil and criminal cases filed pursuant to and in

connection with Executive Order Nos. 1, 2, 14 and 14-A.
“In cases where none of the principal accused are occupying

positions corresponding to salary grade “27” or higher, as prescribed
in the said Republic Act No. 6758, or PNP officers occupying the
rank of superintendent or higher, or their equivalent, exclusive
jurisdiction thereof shall be vested in the proper Regional Trial
Court, Metropolitan Trial Court, Municipal Trial Court, and
Municipal Circuit Trial Court, as the case may be, pursuant to their
respective jurisdictions as provided in Batas Pambansa Blg. 129.
“The Sandiganbayan shall exercise exclusive appellate

jurisdiction on appeals from the final judgments, resolutions
or orders of regular courts where all the accused are occupying
positions lower than salary grade “27”, or not otherwise covered by
the preceding enumeration.
260
“The Sandiganbayan shall have exclusive original jurisdiction

over petitions for the issuance of the writs of mandamus, prohibition,
certiorari, habeas corpus, injunction, and other ancillary writs
and processes in aid of its appellate jurisdiction: Provided, That
the jurisdiction over these petitions shall not be exclusive of the
Supreme Court.
“The procedure prescribed in Batas Pambansa Blg. 129,

as well as the implementing rules that the Supreme Court has
promulgated and may hereafter promulgate, relative to appeals/
petitions for review to the Court of Appeals shall apply to appeals
and petitions for review filed with the Sandiganbayan. In all cases
elevated to the Sandiganbayan and from the Sandiganbayan to the
Supreme Court, the office of the Ombudsman, through its special
prosecutor, shall represent the people of the Philippines except in
cases filed pursuant to Executive Orders Nos. 1, 2, 14 and 14-A.
“In case private individuals are charged as co-principals,

accomplices or accessories with the public officers or employees,
including those employed in government-owned or controlled
corporations, they shall be tried jointly with said public officers
and employees in the proper courts which shall exercise exclusive
jurisdiction over them.
“Any provision of law or Rules of Court to the contrary

notwithstanding, the criminal action and the corresponding civil
action for the recovery of civil liability arising from the offense
charged shall at all times be simultaneously instituted with, and
jointly determined in, the same proceeding by the Sandiganbayan
or the appropriate courts, the filing of the criminal action being
deemed to necessarily carry with it the filing of the civil action, and
no right to reserve the filing of such civil action separately from the
criminal action shall be recognized: Provided, however, That where
the civil action had heretofore been filed separately but judgment
therein has not yet been rendered, and the criminal case is hereafter
filed with the Sandiganbayan or the appropriate court, said civil
action shall be transferred to the Sandiganbayan or the appropriate
court as the case may be, for consolidation and joint determination
261
with the criminal action, otherwise the separate civil action shall be
deemed abandoned.”
SEC. 3. Section 7 of the same decree is hereby amended to

read as follows:
“SEC. 7. Form, Finality and Enforcement of Decisions. - All

decisions and final orders determining the merits of a case or finally
disposing of the action or proceedings of the Sandiganbayan shall
contain complete findings of the facts and the law on which they
are based, on all issues properly raised before it and necessary in
deciding the case.
“A petition for reconsideration of any final order or decision

may be filed within fifteen (15) days from promulgation or notice
of the final order or judgment, and such motion for reconsideration
shall be decided within thirty (30) days from submission thereon.
“Decisions and final orders of the Sandiganbayan shall be

appealable to the Supreme Court by petition for review on certiorari
raising pure questions of law in accordance with Rule 45 of the Rules
of Court. Whenever, in any case decided by the Sandiganbayan, the
penalty of reclusion perpetua or higher is imposed, the decision shall
be appealable to the Supreme Court in the manner prescribed in the
Rules of Court. In case the penalty imposed is death, review by the
Supreme Court shall be automatic, whether or not the accused filed
an appeal.
“Judgments and orders of the Sandiganbayan shall be

executed and enforced in the manner provided by law.
“Decisions and final orders of other courts, in cases

cognizable by said courts under this Act shall be appealable to the
Sandiganbayan within fifteen (15) days from promulgation or notice
to the parties.”
SEC. 4. Section 9 of the same Decree is hereby amended to

read as follows:
262
“SEC. 9. Rules of Procedure. - The Rules of Court promulgated

by the Supreme Court shall apply to all cases and proceedings filed
with the Sandiganbayan. The Sandiganbayan shall have no power to
promulgate its own rules of procedure, except to adopt internal rules
governing the allotment of cases among the divisions, the rotation
of justices among them, and other matters relating to the internal
operations of the court which shall be enforced until repealed or
modified by the Supreme Court.”
SEC. 5. Section 10 of the same Decree is hereby repealed.
SEC. 6. Presidential Decrees Nos. 1486, 1606 and 1861,

Executive Orders Nos. 101 and 184 and all other laws, decrees,
orders and rules of which are inconsistent therewith are hereby
repealed or modified accordingly.
SEC. 7. Upon the effectivity of this Act, all criminal cases in

which trial has not begun in the Sandiganbayan shall be referred to
the proper courts.
SEC. 8. This Act shall take effect fifteen (15) days following its
publication in the Official Gazette or in two (2) national newspapers
263
AN ACT FURTHER DEFINING THE JURISDICTION OF THE

SANDIGANBAYAN, AMENDING FOR THE PURPOSE
PRESIDENTIAL DECREE NO. 1606, AS AMENDED,
PROVIDING FUNDS THEREFOR, AND FOR OTHER
PURPOSES

SECTION 1. The first paragraph of Section 1 of Presidential

Decree No. 1606, as amended, is hereby further amended to read as
follows:
“SEC. 1. Sandiganbayan; Composition, Qualifications;

Tenure; Removal and Compensation. – A special court, of the same
level as the Court of Appeals and possessing all the inherent powers
of a court of justice, to be known as the Sandiganbayan is hereby
created composed of a presiding justice and fourteen associate
justices who shall be appointed by the President.”
SEC. 2. Section 2 of the same decree is hereby further

“SEC. 2. Official Station; Place of Holding Sessions. – The

Sandiganbayan shall have its principal office in the Metro Manila
area and shall hold sessions thereat for the trial and determination
of cases filed with it: Provided, however, That cases originating
from the principal geographical regions of the country, that is, from
Luzon, Visayas or Mindanao, shall be heard in their respective
regions of origin except only when the greater convenience of the
accused and of the witnesses, or other compelling considerations
require the contrary, in which instance a case originating from one
geographical region may be heard in another geographical region:
Provided, further, That for this purpose the presiding justice shall
authorize any divisions of the court to hold sessions at any time
and place outside Metro Manila and, where the interest of justice so
264
requires, outside the territorial boundaries of the Philippines. The

Sandiganbayan may require the services of the personnel and the
use of facilities of the courts or other government offices where any
of the divisions is holding sessions and the personnel of such courts
or offices shall be subject to the orders of the Sandiganbayan.”
SEC. 3. The second paragraph of Section 3 of the same decree

is hereby deleted.

“a. Violations of Republic Act No. 3019, as amended,

otherwise known as the Anti-graft and Corrupt Practices Act,
Republic Act No. 1379, and Chapter II, Section 2, Title VII, Book
II of the Revised Penal Code, where one or more of the accused
are officials occupying the following positions in the government
whether in a permanent, acting or interim capacity, at the time of
the commission of the offense:
“(1) Officials of the executive branch occupying the positions

of regional director and higher, otherwise classified as Grade ‘27’
and higher, of the Compensation and Position Classification Act of
1989 (Republic Act No. 6758), specifically including:
“(a) Provincial governors, vice-governors, members of the

sangguniang panlalawigan, and provincial treasurers, assessors,
engineers, and other provincial department heads;
“(b) City mayors, vice-mayors, members of the sangguniang

panlungsod, city treasurers, assessors, engineers, and other city
department heads;
“(c) Officials of the diplomatic service occupying the position

of consul and higher;
“(d) Philippine army and air force colonels, naval captains,

and all officers of higher rank;
265
“(e) Officers of the Philippine National Police while

occupying the position of provincial director and those holding the
rank of senior superintendent or higher;
“(f) City and provincial prosecutors and their assistants,

and officials and prosecutors in the Office of the Ombudsman and
special prosecutor;
“(g) Presidents, directors or trustees, or managers of

government-owned or -controlled corporations, state universities or
educational institutions or foundations;
“(2) Members of Congress and officials thereof classified as

Grade’27’and up under the Compensation and Position Classification
Act of 1989;
“(3) Members of the judiciary without prejudice to the

provisions of the Constitution;
“(4) Chairmen and members of Constitutional Commissions,

without prejudice to the provisions of the Constitution; and
“(5) All other national and local officials classified as

Grade’27’and higher under the Compensation and Position
Classification Act of 1989.
“b. Other offenses or felonies whether simple or complexed

with other crimes committed by the public officials and employees
mentioned in subsection a of this section in relation to their office.
“c. Civil and criminal cases filed pursuant to and in

connection with Executive Order Nos. 1, 2, 14 and 14-A, issued in
1986.
“In cases where none of the accused are occupying positions

corresponding to Salary Grade ‘27’ or higher, as prescribed in the
said Republic Act No. 6758, or military or PNP officers mentioned
above, exclusive original jurisdiction thereof shall be vested in the
266
proper regional trial court, metropolitan trial court, municipal trial

court, and municipal circuit trial court, as the case may be, pursuant
to their respective jurisdictions as provided in Batas Pambansa Blg.
129, as amended.
“The Sandiganbayan shall exercise exclusive appellate

jurisdiction over final judgments, resolutions or orders of regional
trial courts whether in the exercise of their own original jurisdiction
or of their appellate jurisdiction as herein provided.
“The Sandiganbayan shall have exclusive original jurisdiction

over petitions for the issuance of the writs of mandamus, prohibition,
certiorari, habeas corpus, injunctions, and other ancillary writs and
processes in aid of its appellate jurisdiction and over petitions of
similar nature, including quo warranto, arising or that may arise in
cases filed or which may be filed under Executive Order Nos. 1,2,14
and 14-A, issued in 1986: Provided, That the jurisdiction over these
petitions shall not be exclusive of the Supreme Court.
The procedure prescribed in Batas Pambansa Blg. 129,

as well as the implementing rules that the Supreme Court has
promulgated and may hereafter promulgate, relative to appeals/
petitions for review to the Court of Appeals, shall apply to appeals
elevated to the Sandiganbayan and from the Sandiganbayan to the
Supreme Court, the Office of the Ombudsman, through its special
prosecutor, shall represent the People of the Philippines, except
in cases filed pursuant to Executive Order Nos. 1, 2, 14 and 14-A,
issued in 1986.

corporations, they shall be tried jointly with said public officers
and employees in the proper courts which shall exercise exclusive
jurisdiction over them.
267
“Any provisions of law or Rules of Court to the contrary

notwithstanding, the criminal action and the corresponding
civil action for the recovery of civil liability shall at all times be
simultaneously instituted with, and jointly determined in, the same
proceeding by the Sandiganbayan or the appropriate courts, the
filing of the criminal action being deemed to necessarily carry with it
the filing of the civil action, and no right to reserve the filing of such
civil action separately from the criminal action shall be recognized:
Provided, however, That where the civil action had heretofore been
filed separately but judgment therein has not yet been rendered,
and the criminal case is hereafter filed with the Sandiganbayan
or the appropriate court, said civil action shall be transferred to
the Sandiganbayan or the appropriate court, as the case may be,
for consolidation and joint determination with the criminal action,
otherwise the separate civil action shall be deemed abandoned.”

“SEC. 7. Form, Finality and Enforcement of Decisions. – All

decisions and final orders determining the merits of a case or finally
disposing of the action or proceedings of the Sandiganbayan shall
contain complete findings of the facts and the law on which they
are based, on all issues properly raised before it and necessary in
deciding the case.
“A petition for reconsideration of any final order or decision

may be filed within fifteen (15) days from promulgation or notice
of the final order or judgment, and such motion for reconsideration
shall be decided within thirty (30) days from submission thereon.
“Decisions and final orders of the Sandiganbyan shall be

appealable to the Supreme Court by petition for review on certiorari
raising pure questions of law in accordance with Rule 45 of the Rules
of Court. Whenever, in any case decided by the Sandiganbayan, the
penalty of reclusion perpetua, life imprisonment or death is imposed,
the decision shall be appealable to the Supreme Court in the manner
prescribed in the Rules of Court.
268
“Judgments and orders of the Sandiganbayan shall be

“Decisions and final orders of other courts in cases cognizable

by said courts under this decree as well as those rendered by them
in the exercise of their appellate jurisdiction shall be appealable to,
or be reviewable by, the Sandiganbayan in the manner provided by
Rule 122 of the Rules of the Court.
“In case, however, the imposed penalty by the Sandiganbayan

or the regional trial court in the proper exercise of their respective
jurisdiction is death, review by the Supreme Court shall be
automatic, whether or not the accused files an appeal.”
SEC. 6. Appropriations. – The amount necessary to carry out

the initial implementation of this Act shall be charged against the
current fiscal year appropriations of the Sandiganbayan. Thereafter,
such sums as may be needed for its continued implementation shall
be included in the annual General Appropriations Act.
SEC. 7. Transitory Provision. – This Act shall apply to all

cases pending in any court over which trial has not begun as of the
approval hereof
SEC. 8. Separability of Provisions. – If for any reason any

provision of this Act is declared unconstitutional or invalid, such
parts or portions not affected thereby shall remain in full force and
effect.
SEC. 9. Repealing Clause. – All acts, decrees, general orders

and circulars, or parts thereof inconsistent with the provisions of
this Act are hereby repealed or modified accordingly.
SEC. 10. Effectivity. – This Act shall take effect fifteen (15)
days after its complete publication in at least two (2) newspapers of
general circulation.
269
AN ACT AMENDING CERTAIN PROVISIONS OF PRESIDENTIAL

DECREE NO. 1464, OTHERWISE KNOWN AS THE
TARIFF AND CUSTOMS CODE OF THE PHILIPPINES,
AS AMENDED, AND FOR OTHER PURPOSES

XXX XXX XXX
SEC. 14. Section 3604 of Part 3, Title VII of the Tariff and
Customs Code of the Philippines, as amended, is hereby further
“SEC. 3604. Statutory Offenses of Officials and Employees. -

Every official, agent or employee of the Bureau or of any other agency
of the government charged with the enforcement of the provisions of
this Code, who is guilty of any delinquency herein below indicated
shall be punished with a fine of not less than Five thousand pesos nor
more than Fifty thousand pesos and imprisonment for not less than
one year nor more than ten years and perpetual disqualification to
hold public office, to vote and to participate in any public election:
(a) Those guilty of extortion or willful oppression under

color of law;
(b) Those who knowingly demand other or greater sums

reward except as by law prescribed, for the performance of any
duty;
(c) Those who wilfully neglect to give receipts, as required

by law for any sum collection in the performance of duty, or who
wilfully neglect to perform any of the duties enjoined by law;
270
(d) Those who knowingly demand other or greater sums

reward except as by law prescribed, for the performance of any
duty;
(e) Those who wilfully make opportunity for any person to

defraud the customs revenue or who do or fail to do any act with
intent to enable any person to defraud said revenue;
(f) Those who negligently or designedly permit the violation

of the law by any other person;
(g) Those who make or sign any false entry or entries in

or return;
(h) Those who, having knowledge or information of a

violation of the Tariff and Customs Law or any fraud committed on
the revenue collectible by the Bureau, fail to report such knowledge
or information to their superior official or to report as otherwise
required by law;
(i) Those who, without the authority of law, demand

of otherwise, any sum of money or other thing of value for the
for any violation or alleged violation of law; or
(j) Those, without authority of law, disclose confidential

information gained during any investigation or audit, or use such
information for personal gain or to the detriment of the government,
the Bureau or third parties.”
XXX XXX XXX
SEC. 18. Rules and Regulations. - The Secretary of Finance

shall, upon the recommendation of the Commissioner of Customs,
271
promulgate the necessary rules and regulations for the effective

implementation of this Act.
SEC. 19. Repealing Clause. - All laws, decrees, executive

orders, rules and regulations and other issuances or parts thereof
which are inconsistent with this Act are hereby repealed or modified
accordingly.
SEC. 20. Effectivity. - This Act shall take effect fifteen (15)
days after its publication in the Official Gazette or in any two (2)
newspapers of general circulation, whichever date comes earlier.
272
AN ACT INSTITUTING A FRAMEWORK OF GOVERNANCE FOR

BASIC EDUCATION, ESTABLISHING AUTHORITY AND
ACCOUNTABILITY, RENAMING THE DEPARTMENT
OF EDUCATION, CULTURE AND SPORTS AS THE
DEPARTMENT OF EDUCATION, AND FOR OTHER
PURPOSES

Philippines
in Congress assembled:
SECTION 1. Short Title. - This Act shall be known as the

“Governance of Basic Education Act of 2001.”
SEC. 2. Declaration of Policy. - It is hereby declared the

policy of the State to protect and promote the right of all citizens to
quality basic education and to make such education accessible to all
by providing all Filipino children a free and compulsory education
in the elementary level and free education in the high school level.
Such education shall also include alternative learning systems for
out-of-school youth and adult learners. It shall be the goal of basic
education to provide them with the skills, knowledge and values
they need to become caring, self-reliant, productive and patriotic
citizens.
The school shall be the heart of the formal education system.

It is where children learn. Schools shall have a single aim of providing
the best possible basic education for all learners.
Governance of basic education shall begin at the national

level. It is at the regions, divisions, schools and learning centers
herein referred to as the field offices - where the policy and principle
for the governance of basic education shall be translated into
programs, projects and services developed, adapted and offered to
fit local needs.
273
The State shall encourage local initiatives for improving the

quality of basic education. The State shall ensure that the values,
needs and aspirations of a school community are reflected in the
program of education for the children, out-of-school youth and adult
learners. Schools and learning centers shall be empowered to make
decisions on what is best for the learners they serve.
XXX XXX XXX
CHAPTER 1
GOVERNANCE OF BASIC EDUCATION
SEC. 5. Principles of Shared Governance. – (a) Shared

governance is a principle which recognizes that every unit in the
education bureaucracy has a particular role, task and responsibility
inherent in the office and for which it is principally accountable for
outcomes;
(b) The process of democratic consultation shall be observed

in the decision-making process at appropriate levels. Feedback
mechanisms shall be established to ensure coordination and open
communication of the central office with the regional, division and
school levels;
(c) The principles of accountability and transparency

shall be operationalized in the performance of functions and
responsibilities at all levels; and
(d) The communication channels of field offices shall be

strengthened to facilitate flow of information and expand linkages
with other government agencies, local government units and
nongovernmental organizations for effective governance.
XXX XXX XXX
SEC. 15. Separability Clause. - If for any reason, any portion

or provision of this Act shall be declared unconstitutional, other parts
274
or provisions hereof which are not affected thereby shall continue to

be in full force and effect.
SEC. 16 Repealing Clause. - All laws, decrees, executive

orders, rules and regulations, part or parts thereof, inconsistent
with the provisions of this Act, are hereby repealed or modified
accordingly.
SEC. 17. Effectivity Clause. - This Act shall take effect fifteen
(15) days following its publication in at least two (2) newspapers of
APPROVED,
Lapsed into law on AUGUST 11, 2001 without the signature of the
President, in accordance with Article VI, Section 27 (1) of the Constitution
275
AN ACT DEFINING THE CRIME OF MONEY LAUNDERING,

PROVIDING PENALTIES THEREFOR AND FOR OTHER
PURPOSES


“Anti-Money Laundering Act of 2001.”
XXX XXX XXX
SEC. 14. Penal Provisions. – (a) Penalties for the Crime

of Money Laundering. The penalty of imprisonment ranging from
seven (7) to fourteen (14) years and a fine of not less than three
million Philippine pesos (Php 3,000,000.00) but not more than twice
the value of the monetary instrument or property involved in the
offense, shall be imposed upon a person convicted under Section 4(a)
of this Act.
The penalty of imprisonment from four (4) to seven (7)

years and a fine of not less than One million five hundred thousand
Philippine pesos (Php 1,500,000,00) but not more than three million
Philippine pesos (Php3,000,000.00) shall be imposed upon a person
convicted under section 4(b) of this Act.
The penalty of imprisonment from six (6) months to four (4)

years or a fine of not less than One hundred thousand Philippine
pesos (Php 100,000.00) but not more than Five hundred thousand
Philippine pesos (Php 500,000.00), or both, shall be imposed on a
person convicted under Section 4(c) of this Act.
(b) Penalties for Failure to Keep Records. The penalty of

imprisonment from six (6) months to one (1) year or a fine of not
less than One hundred thousand Philippine pesos (Php 100,000.00)
but not more than five hundred thousand Philippine pesos
276
(Php500,000.00), or both, shall be imposed on a person convicted

under Section 9(b) of this Act.
(c) Malicious Reporting. Any person who, with malice,

or in bad faith, reports or files a completely unwarranted or false
information relative to money laundering transaction against any
person shall be subject to a penalty of six (6) months to four (4) years
imprisonment and a fine of not less than One hundred thousand
Philippine pesos (Php100,000.00) but not more than Five hundred
thousand Philippine pesos (Php500,000.00) at the discretion of the
court: Provided, That the offender is not entitled to avail the benefits
of the Probation Law.
If the offender is a corporation, association, partnership or any

juridical person, the penalty shall be imposed upon the responsible
officers, as the case may be, who participated in the commission of
the crime or who shall have knowingly permitted or failed to prevent
its commission. If the offender is a juridical person, the court may
suspend or revoke its license. If the offender is an alien, he shall,
in addition to the penalties herein prescribed, be deported without
further proceedings after serving the penalties herein prescribed.
If the offender is a public official or employee, he shall, in addition
to the penalties prescribed herein, suffer perpetual or temporary
absolute disqualification from office, as the case may be.
Any public official or employee who is called upon to testify

and refuses to do the same or purposely fails to testify shall suffer
the same penalties prescribed herein.
(d) Breach of Confidentiality. The punishment of

imprisonment ranging from three (3) to eight (8) years and a fine of
not less than Five hundred thousand but not more than One million
Philippine pesos (Php1,000,000.00), shall be imposed on a person
convicted for a violation under Section 9(c).
XXX XXX XXX
277
SEC. 16. Prohibitions Against Political Harassment. – This

Act shall not be used for political persecution or harassment or as
an instrument to hamper competition in trade and commerce.
No case for money laundering may be filed against and no

assets shall be frozen, attached or forfeited to the prejudice of a
candidate for an electoral office during an election period.
SEC. 17. Restitution. – Restitution for any aggrieved party

shall be governed by the provision of the New Civil Code.
SEC. 18. Implementing Rules and Regulations. – Within

thirty (30) days from the effectivity of this Act, the Bangko Sentral
ng Pilipinas, the Insurance Commission and the Securities and
Exchange Commission shall promulgate the rules and regulations
shall be submitted to the Congressional Oversight Committee for
approval.
Covered institutions shall formulate their respective money

laundering prevention programs in accordance with this Act
including, but not limited to, information dissemination on money
laundering activities and its prevention, detection and reporting,
and the training of responsible officers and personnel of covered
institutions.
SEC. 19. Congressional Oversight Committee. – There is

hereby created a Congressional Oversight Committee composed of
seven (7) members from the Senate and seven (7) members from
the House of Representatives. The members from the Senate shall
be appointed by the Senate President based on the proportional
representation of the parties or coalitions therein with at least two
(2) Senators representing the minority. The members from the
House of Representatives shall be appointed by the Speaker also
based on proportional representation of the parties or coalitions
therein with at least two (2) members representing the minority.
The Oversight Committee shall have the power to promulgate

its own rules, to oversee the implementation of this Act, and to
278
review or revise the implementing rules issued by the Anti-Money

Laundering Council within thirty (30) days from the promulgation
of the said rules.
SEC. 20. Appropriations Clause. – The AMLC shall be

provided with an initial appropriation of Twenty-five million
Philippine pesos (Php25,000,000.00) to be drawn from the national
government. Appropriations for the succeeding years shall be
included in the General Appropriations Act.
SEC. 21. Separability Clause. – If any provision or section

of this Act or the application thereof to any person or circumstance
is held to be invalid, the other provisions or sections of this Act,
and the application of such provision or section to other persons or
circumstances, shall not be affected thereby.
SEC. 22. Repealing Clause. – All laws, decrees, executive

orders, rules and regulations or parts thereof, including the relevant
provisions of Republic Act No. 1405, as amended; Republic Act NO.
6426, as amended; Republic Act No. 8791, as amended and other
similar laws, as are inconsistent with this Act, are hereby repealed,
days after its complete publication in the Official Gazette or in at
least two (2) national newspapers of general circulation.
The provisions of this Act shall not apply to deposits and

investments made prior to its effectivity.
279
AN ACT PROVIDING FOR THE MODERNIZATION,

STANDARIZATION AND REGULATION OF THE
PROCUREMENT ACTIVITIES OF THE GOVERNMENT

ARTICLE 1
GENERAL PROVISIONS
SECTION 1. Short Title.- This act shall be known as the “

Government Procurement Reform Act.”
SEC. 2. Declaration of Policy.— It is the declared policy of the

State to promote the ideals of good governance in all its branches,
departments, agencies, subdivisions, and instrumentalities,
including government-owned and/or—controlled corporations and
local government units.
SEC. 3. Governing Principles on Government Procurement.—

All procurement of the national government, its departments,
bureaus, offices and agencies, including state universities and
colleges, government -owned and/or-controlled corporations,
government financial institutions and local government units, shall,
in all cases, be governed by these principles:
(a) Transparency in the procurement process and in the

implementation of procurement contracts.
(b) Competitiveness by extending equal opportunity to

enable private contracting parties who are eligible and qualified to
participate in public bidding.
(c) Streamlined procurement process that will uniformly

apply to all government procurement. The procurement process shall
280
be simple and made adaptable to advances in modern technology in

order to ensure an effective and efficient method.
(d) System of accountability where both the public officials

directly or indirectly involved in the procurement process as
well as in the implementation of procurement contracts and the
private parties that deal with government are, when warranted by
circumstances, investigated and held liable for their actions relative
thereto.
(e) Public monitoring of the procurement process and

the implementation of awarded contracts with the end in view of
guaranteeing that these contracts are awarded pursuant to the
provisions of this Act and its implementing rules and regulations,
and that all these contracts are performed strictly according to
specifications.
SEC. 4. Scope and Application.— This act shall apply to

the Procurement of Infrastructure Projects, Goods and Consulting
Services, regardless of source of funds, whether local of foreign, by
all branches and instrumentalities of government, its departments,
offices and agencies, including government-owned and/or-controlled
corporations and local government units, subject to the provisions of
Commonwealth Act No. 138. Any treaty or international or executive
agreement affecting the subject matter of this Act to which the
Philippine government is signatory shall be observed.
XXX XXX XXX
ARTICLE XXI
PENAL CLAUSE
SEC. 65. Offenses and Penalties. – (a) Without prejudice to

the provisions of Republic Act No. 3019, otherwise known as the
“Anti-Graft and Corrupt Practice Act” and other penal laws, public
officers who commit any of the following acts shall suffer the penalty
of imprisonment of not less than six (6) years and one (1) day, but
not more than fifteen (15) years:
281
1. Open any sealed Bid including but not limited to Bids

that may have been submitted through the electronic system and
any and all documents required to be sealed or divulging their
contents, prior to the appointed time for the public opening of Bids
or other documents.
2. Delaying, without justifiable cause, the screening for

eligibility, opening of bids, evaluation and post evaluation of bids,
and awarding of contracts beyond the prescribed periods of Bids or
other documents.
3. Unduly influencing or exerting undue pressure on any

member of the BAC or any officer or employee of the procuring entity
to take a particular bidder.
4. Splitting of contracts which exceed procedural purchase

limits and competitive bidding.
5. When the head of the agency abuses the exercise of

his power to reject any and all bids as mentioned under Section 41
of this Act with manifest preference to any bidder who is closely
related to him in accordance with Section 47 of this Act.
When any of the foregoing acts is done in collusion with

private individuals, the private individuals shall likewise be liable
for the offense.
In addition, the public officer involved shall also suffer

the penalty of temporary disqualification from public office, while
the private individual shall be permanently disqualified from
transacting business with the government.
(b) Private individuals who commit any of the following

acts, including any public officer, who conspires with them, shall
suffer the penalty of imprisonment of not less than six (6) years and
one (1) day but not more than fifteen (15) years:
1. When two or more bidders agree and submit different

Bids as if they were bona fide, when they knew that one or more
282
of them was so much higher than the other that it could not be
honestly accepted and that the contract will surely be awarded to
the pre-arranged lowest Bid.
2. When a bidder maliciously submits different Bids

through two or more persons, corporations, partnerships or any other
business entity in which he has interest of create the appearance of
competition that does not in fact exist so as to be adjudged as the
winning bidder.
3. When two or more bidders enter into an agreement which

call upon one to refrain from bidding for Procurement contracts,
or which call for withdrawal of bids already submitted, or which
are otherwise intended to secure as undue advantage to any one of
them.
4. When a bidder, by himself or in connivance with others,

employ schemes which tend to restrain the natural rivalry of the
parties or operates to stifle or suppress competition and thus produce
a result disadvantageous to the public.
In addition, the persons involved shall also suffer the

penalty of temporary or perpetual disqualification from public office
and be permanently disqualified from transacting business with the
government.
(c) Private individuals who commit any of the following

acts, and any public officer conspiring with them, shall suffer the
penalty of imprisonment of not less than six (6) years and one (1)
day but more than fifteen (15) years:
1. Submit eligibility requirements of whatever kind

and nature that contain false information or falsified documents
calculated to influence the outcome of the eligibility screening
process or conceal such information in the eligibility requirements
when the information will lead to a declaration of ineligibility from
participating in public bidding.
283
2. Submit Bidding Documents of whatever kind and nature

than contain false information or falsified documents or conceal
such information in the Bidding Documents, in order to influence
the outcome of the public bidding.
3. Participate in a public bidding using the name of another

or allow another to use one’s name for the purpose of participating
in a public bidding.
4. Withdraw a Bid, after it shall have qualified as the

Lowest Calculated Bid/Highest Rated Bid, or to accept and award,
without just cause or for the purpose of forcing the Procuring Entity
to award the contract to another bidder. This shall include the non-
submission of requirements such as, but not limited to, performance
security, preparatory to the final award of the contract.
(d) When the bidder is a juridical entity, criminal liability

and the accessory penalties shall be imposed on its directors, officers
or employees who actually commit any of the foregoing acts.
SEC. 66. Jurisdiction. – Jurisdiction over the offenses defined

under this Article shall belong to the appropriate courts, according
to laws existing at the time of the commission of the offenses.
ARTICLE XXII
CIVIL LIABILITY
SEC. 67. Civil Liability in Case of Conviction. – Without

prejudice to administrative sanctions that may be imposed in proper
cases, a conviction under this Act or Republic Act No. 3019 shall
carry with it civil liability, which may either consist of restitution
for the damage done or the forfeiture in favor of the government of
any unwarranted benefit derived from the act or acts in question or
both, at the discretion of the courts.
SEC. 68. Liquidated Damages. – All contracts executed in

accordance with this Act shall contain a provision on liquidated
284
damages which shall be payable in case of breach thereof. The

amount thereof shall be specified in the IRR.
ARTICLE XXIII
ADMINISTRATIVE SANCTIONS
SEC. 69. Imposition of Administrative Penalties. – (a) In

addition to the provisions of Articles XXI and XXII of this Act, the
Head of the Procuring Entity, subject to the authority delegated
to the BAC, if any, shall impose on bidders or prospective bidders,
the administrative penalty of suspension for one (1) years for the
first offense, and suspensions of two (2) years for the second offense
from participating in the public bidding process, for the following
violations:
1. Submission of eligibility requirements containing false

information or falsified documents.
2. Submission of bids that contain false information or

falsified documents, or the concealment of such information in the
Bids in order to influence the outcome of eligibility screening or any
other stage of the public bidding.
3. Allowing the use of one’s name, or using the name of

another for purposes of public bidding.
4. Withdrawal of a Bid, or refusal to accept an award,

or enter into contract with the government without justifiable
cause, after he had been adjudged as having submitted the Lowest
Calculated Responsive Bid or Highest Rated Responsive Bid.
5. Refusal or failure to post the require performance

security within the prescribed time.
6. Termination of the contract due to the default of the

bidder.
285
Refusal to clarify or validate in writing its Bid during post-

qualification within a period of seven (7) calendar days from receipt
of the request for clarification.
Any documented unsolicited attempt by a bidder to unduly

influence the outcome of the bidding in his favor.
All other acts that tend to defeat the purpose of the

Competitive bidding.
(b) In addition to the penalty of suspension, the Bid

security of the performance security posted by the concerned bidder
or prospective bidder shall also be forfeited.
(c) the Head of the Procuring Entity may delegate to the

BAC the authority to impose the aforementioned administrative
penalties.
SEC. 70. Preventive Suspension. – The head of the procuring

entity may preventively suspend any member of the Technical
Working Group of the Secretariat, or the BAC if there are strong
reasons or prima facie evidence showing that the officials or
employees concerned are guilty or the charges filed against them
under Articles XXI and XXII of this Act or for dishonesty as defined
by the Civil Service Laws. In all cases, procedural and substantive
due process as mandated by the Constitution and Civil Service
Laws, rules and regulations, shall be strictly observed.
SEC. 71. Lifting of Suspension and Removal of Administrative

Disabilities. – Lifting of preventive suspension pending
administrative investigation, as well as removal of administrative
investigation, as well as removal of administrative penalties and
disabilities shall be in accordance with the provisions of Sections 52
and 53, Chapter 6 (Civil Service Commission), Book V of Executive
Order No. 292, the Administrative Code of 1987.
286
ARTICLE XXIV
LEGAL ASSISTANCE AND INDEMNIFICATION OF BAC
MEMBERS
SEC. 72. Private Legal Assistance. – All the members of the

BAC are hereby authorized to engage the service of private lawyers
or extend counsel immediately upon receipt of Court Notice that
a civil or criminal action, suit or proceeding is filed against them.
The lawyer’s fee shall be part of the indemnification package for the
BAC members, subject to the provisions of Section 73 hereof.
SEC. 73. Indemnification of BAC Members. – The GPPB shall

establish an equitable indemnification package for public officials
providing services in the BAC, which may be in the form of free
legal assistance, liability insurance, and other forms of protection
and indemnification for all cost and expenses reasonably incurred
by such persons in connection with any civil or criminal actions, suit
or proceeding to which they may be, or have been made, a party by
reason of the performance of their functions or duties, unless they
are finally adjudged in such action or proceeding to be liable for
gross negligence or misconduct or grave abuse of discretion.
In the event of settlement or compromise, indemnification

shall be confined only on matters covered by the settlement, as to
which the Procuring Entity had been advised by countset that the
public officials to be indemnified have not committed gross negligence
or misconduct in the performance of their functions and duties.
The members of the BAC and the BAC Secretariat shall

also be entitled to medical assistance for injuries incurred in the
performance of their functions.
ARTICLE XXV
FINAL PROVISIONS
SEC. 74. Oversight Committee. – There is hereby created

a Joint Congressional Oversight Committee to oversee the
287
implementation of this Act for a period not exceeding five (5) years
from the effectivity of this Act. The Committee shall be composed
of the Chairman of the Senate Committee on Constitutional
Amendments and Revision of Laws and two (2) members thereof
appointed by the Senate President, and the Chairman of the House
Committee on Appropriations, and two(2) thereof to be appointed by
the Speaker of the House of Representatives.
SEC. 75. Implementing Rules and Regulations and Standard

Forms. – Within sixty (60) days from the promulgation of this Act,
the necessary rules and regulations for the proper implementation
of its provisions shall be formulated by the GPPB, jointly with the
members of the Oversight Committee created under Section 74
hereof. The said rules and regulations shall be approved by the
President of the Philippines. For a period not later than thirty (30)
days upon the approval of the implementing rules and regulations
the standard forms for Procurement shall be formulated and
approved.
SEC. 76. Repealing Clause. – This law repeals Executive

Order No. 40, series of 2001, entitled “Consolidating Procurement
Rules and Procedures for all National Government Agencies,
Government-Owned-or-Controlled Corporations and/or Government
Financial Institutions, and requiring the Use of the Government
Electronic Procurement System”; Executive Order No.262, series of
2000, entitled “Amending Executive Order No.302, series of 1996,
entitled “Providing Policies, Guidelines, Rules and Regulations for
the Procurement of Goods/Supplies by the National Government’
and Section 3 of Executive Order No.201, series of 2000, entitled
“Providing Additional Policies and Guidelines and the Procurement
of Goods/Supplies by the National Government”; Executive Order
No. 302, series of 1996, entitled “Providing Policies, Guidelines,
Rules and Regulations for the Procurement of Goods/Supplies by
the National Government” and Presidential Decree No. 1594 dated
June 11,1978, entitled “Prescribing Policies, Guidelines, Rule and
regulations for Government Infrastructure Contracts.” This law
amends Title Six, Book Two of Republic Act No. 7160, otherwise
known as the “Local Government Code of 1991”; the relevant
288
provisions of Executive Order No.164, series of 1987, entitled “ An

Act Providing Additional Guidelines in the processing and Approval
of Contracts of the Government”; and the relevant provisions
of Republic Act No. 7898 dated February 23, 1995, entitled “An
Act Providing for the Modernization of the Armed Forces of the
Philippines and other Purposes.” Any other law, presidential decree
or issuance, executive order, letter of instruction, administrative
order, proclamation, charter, rule or regulation and/or parts thereof
contrary to or inconsistent with the provisions of this Act, hereby
repealed, modified or amended accordingly.

is declared invalid or unconstitutional, the other provisions not
affected thereby shall remain valid and subsisting.
SEC. 78. Effectivity Clause. – This Act shall take effect fifteen
(150) days following its publication in the Officials Gazette or in two
(2) newspapers of general circulation.
APPROVED, January 10, 2003.
289
AN ACT PROVIDING FOR A SYSTEM OF OVERSEAS ABSENTEE

VOTING BY QUALIFIED CITIZENS OF THE PHILIPPINES
ABROAD, APPROPRIATING FUNDS THEREFOR, AND
FOR OTHER PURPOSES

SECTION 1. Short Title. – This Act shall be known as “The

Overseas Absentee Voting Act of 2003.”
SEC. 2. Declaration of Policy. – It is the prime duty of the

State to provide a system of honest and orderly overseas absentee
voting that upholds the secrecy and sanctity of the ballot. Towards
this end, the State ensures equal opportunity to all qualified citizens
of the Philippines abroad in the exercise of this fundamental right.
XXX XXX XXX
SEC. 24. Prohibited Acts. – In addition to the prohibited acts

provided by law, it shall be unlawful:
24.1. For any officer or employee of the Philippine government

to influence or attempt to influence any person covered by this Act
to vote, or not to vote, for a particular candidate. Nothing in this
Act shall be deemed to prohibit free discussion regarding politics or
candidates for public office.
24.2. For any person to deprive any person of any right

secured in this Act, or to give false information as to his/her name,
address, or period of residence for the purposes of establishing his/
her eligibility or ineligibility to register or vote under this Act; or
to conspire with another person for the purpose of encouraging the
giving of false information in order to establish the eligibility or
ineligibility of any individual to register or vote under this Act; or,
to pay, or offer to pay, or to accept payment either for application to
vote in absentia or for voting;
290
24.3. For any person to tamper with the ballot, the mail
containing the ballots for overseas absentee voters, the election
returns, including the destruction, mutilation and manipulation
thereof;
24.4. For any person to steal, destroy, conceal, mutilate or

alter any record, document or paper as required for purposes of this
Act;
24.5. For any deputized agent to refuse without justifiable

ground, to serve or continue serving, or to comply with his/her sworn
duties after acceptance of his/her appointment;
24.6. For any public officer or employee who shall cause

the preparation, printing, distribution of information material,
or post the same in websites without the prior approval of the
Commission;
24.7. For any public officer or employee to cause the transfer,

promotion, extension, recall of any member of the foreign service
corps, including members of the attached agencies, or otherwise
cause the movement of any such member from his current post or
position one (1) year before and three (3) months after the day of
elections, without securing the prior approval of the Commission;
24.8. For any person who, after being deputized by the

Commission to undertake activities in connection with the
implementation of this Act, shall campaign for or assist, in whatever
manner, candidates in the elections;
24.9. For any person who is not a citizen of the Philippines to

participate, by word or deed, directly or indirectly through qualified
organizations/associations, in any manner and at any stage of the
Philippine political process abroad, including participation in the
campaign and elections.
The provision of existing laws to the contrary notwithstanding,

and with due regard to the Principle of Double Criminality, the
prohibited acts described in this section are electoral offenses and
punishable in the Philippines.
291
The penalties imposed under Section 264 of the Omnibus

Election Code, as amended, shall be imposed on any person found
guilty of committing any of the prohibited acts as defined in this
section: Provided, That the penalty of prision mayor in its minimum
period shall be imposed upon any person found guilty of Section
24.3 hereof without the benefit of the operation of the Indeterminate
Sentence Law. If the offender is a public officer or a candidate, the
penalty shall be prison mayor in its maximum period. In addition,
the offender shall be sentenced to suffer perpetual disqualification
to hold public office and deprivation of the right to vote.
Immigrants and permanent residents who do not resume

residence in the Philippines as stipulated in their affidavit under
Section 5(d) within three (3) years after approval of his/her
registration under this Act and yet vote in the next elections contrary
to the said section, shall be penalized by imprisonment of not less
than one (1) year, and shall be deemed disqualified as provided
in Section 5(c) of this Act. His/her passport shall be stamped “not
allowed to vote”.
XXX XXX XXX
SEC. 30. Separability Clause. – If any part or provision of this

Act shall be declared unconstitutional or invalid, other provisions
hereof which are not affected thereby shall continue to be in full
force and effect.

executive orders, rules and regulations, other issuances, and parts
thereof, which are inconsistent with the provisions of this Act, are
hereby repealed or modified accordingly.
days following its publication in three (3) newspapers of general
circulation.
292

KNOWN AS THE “ANTI-MONEY LAUNDERING ACT OF
2001”
Be it enacted by the Senate and House of Representative of the

SECTION 1. Section 3, paragraph (b) of Republic Act No.

9160 is hereby amended as follows:
“(b) ‘Covered transaction’ is a transaction in cash or other

equivalent monetary instrument involving a total amount in excess
of Five hundred thousand pesos (P500,000.00) within one (1) banking
day.”
SEC. 2. Section 3 of the same Act is further amended by

inserting between paragraphs (b) and (c) a new paragraph designated
as (b-1) to read as follows:
“(b-1) ‘Suspicious transaction’ are transactions with covered

institutions, regardless of the amounts involved, where any of the
following circumstances exist:
1. there is no underlying legal or trade obligation, purpose

or economic justification;
“2. the client is not properly identified;
“3. the amount involved is not commensurate with the

business or financial capacity of the client;
“4. taking into account all known circumstances, it may be

perceived that the client’s transaction is structured in order to avoid
being the subject of reporting requirements under the Act;
293
“5. any circumstances relating to the transaction which is

observed to deviate from the profile of the client and/or the client’s
past transactions with the covered institution;
“6. the transactions is in a way related to an unlawful

activity or offense under this Act that is about to be, is being or has
been committed; or
“7. any transactions that is similar or analogous to any of

the foregoing.”
XXX XXX XXX
SEC. 4. Section 4 of the same Act is hereby amended to read

as follows:
“SEC. 4. Money Laundering Offense. - Money laundering is a

crime whereby the proceeds of an unlawful activity as herein defined
are transacted, thereby making them appear to have originated
from legitimate sources. It is committed by the following:
“(a) Any person knowing that any monetary instrument

or property represents, involves, or relates to, the proceeds of any
unlawful activity, transacts or attempts to transacts said monetary
instrument or property.
“(b) Any person knowing that any monetary instrument or

property involves the proceeds of any unlawful activity, performs or
fails to perform any act as a result of which he facilitates the offense
of money laundering referred to in paragraph (a) above.
“(c) Any person knowing that any monetary instrument or

property is required under this Act to be disclosed and filed with the
Anti-Money Laundering Council (AMLC), fails to do so.”
XXX XXX XXX
294
SEC. 8. Section 11 of the same Act is hereby amended to

read as follows:
“SEC. 11. Authority to Inquire into Bank Deposits. -

Notwithstanding the provisions of Republic Act No. 1405, as
amended, Republic Act No. 6426, as amended, Republic Act No.
8791, and other laws, the AMLC may inquire into or examine any
particular deposit or investment with any banking institution or
non-bank financial institution upon order of any competent court
in cases of violation of this Act, when it has been established that
there is probable cause that the deposits or investments are related
to an unlawful activities as defined in Section 3(I) hereof or a money
laundering offense under Section 4 hereof, except that no court order
shall be required in cases involving unlawful activities defined in
Sections 3(I)1, (2) and (12).
“To ensure compliance with this Act, the Bangko Sentral

ng Pilipinas (BSP) may inquire into or examine any deposit of
investment with any banking institution or non-bank financial
institution when the examination is made in the course of a periodic
or special examination, in accordance with the rules of examination
of the BSP.”
SEC. 9. Section 14, paragraphs (c) and (d) of the same Act is
“(c) Malicious Reporting. Any person who, with malice,

or in bad faith, reports or files a completely unwarranted or false
information relative to money laundering transaction against any
person shall be subject to a penalty to six (6) months to four (4) years
imprisonment and a fine of not less than One hundred thousand
Philippine pesos (Php100,000.00) but not more than Five hundred
thousand Philippine pesos (Php500,000.00), at the discretion of the
court: Provided, That the offender is not entitled to avail the benefits
of the Probation Law.
“If the offender is a corporation, association, partnership

or any juridical person, the penalty shall be imposed upon the
295
responsible officers, as the case may be, who participated in, or

allowed by their gross negligence, the commission of the crime. If the
offender is a juridical person, the court may suspend or revoke its
license. If the offer is an alien, he shall, in addition to the penalties
herein prescribed, be deported without further proceedings after
serving the penalties herein prescribed. If the offender is a public
official or employee, he shall, in addition to the penalties prescribed
herein, suffer perpetual or temporary absolute disqualification from
office, as the case may be.
“Any public official or employee who is called upon to testify

and refuses to do the same or purposely fails to testify shall suffer
the same penalties prescribed herein.
“(d) Breach of Confidentiality. The punishment of

imprisonment ranging from three (3) to eight (8) years and a fine of not
less than Five hundred thousand Philippine pesos (Php500,000.00)
but not more than One million Philippine pesos (Php1,000,000.00)
shall be imposed on a person convicted for a violation under Section
9(c). In the case of a breach of confidentiality that is published
or reported by media, the responsible reporter, writer, president,
publisher, manager and editor-in-chief shall be liable under this
Act.”
SEC. 10. Section 15 of Republic Act No. 9160 is hereby

deleted.

read as follows:
“SEC. 23. Effectivity. - This Act shall take effect fifteen (15)
least two (2) national newspapers of general circulation.”
SEC. 12. Transitory Provision. - Existing freeze orders

issued by the AMLC shall remain in force for a period of thirty (30)
days after the effectivity of this Act, unless extended by the Court
of Appeals.
296
297
AN ACT DEFINING VIOLENCE AGAINST WOMEN AND

THEIR CHILDREN, PROVIDING FOR PROTECTIVE
MEASURES FOR VICTIMS, PRESCRIBING PENALTIES
THEREFORE, AND FOR OTHER PURPOSES

SECTION 1. Short Title.- This Act shall be known as the

“Anti-Violence Against Women and Their Children Act of 2004”.
SEC. 2. Declaration of Policy.- It is hereby declared that the

State values the dignity of women and children and guarantees
full respect for human rights. The State also recognizes the need to
protect the family and its members particularly women and children,
from violence and threats to their personal safety and security.
Towards this end, the State shall exert efforts to address

violence committed against women and children in keeping with
the fundamental freedoms guaranteed under the Constitution
and the Provisions of the Universal Declaration of Human Rights,
the convention on the Elimination of all forms of discrimination
Against Women, Convention on the Rights of the Child and other
international human rights instruments of which the Philippines is
a party.
XXX XXX XXX
SEC. 29. Duties of Prosecutors/Court Personnel. –

Prosecutors and court personnel should observe the following duties
when dealing with victims under this Act:
a) communicate with the victim in a language understood

by the woman or her child; and
b) inform the victim of her/his rights including legal remedies

available and procedure, and privileges for indigent litigants.
298
SEC 30. Duties of Barangay Officials and Law Enforcers.

– Barangay officials and law enforcers shall have the following
duties:
(a) respond immediately to a call for help or request for

assistance or protection of the victim by entering the necessary
whether or not a protection order has been issued and ensure the
safety of the victim/s;
(b) confiscate any deadly weapon in the possession of the

perpetrator or within plain view;
(c) transport or escort the victim/s to a safe place of their

choice or to a clinic or hospital;
(d) assist the victim in removing personal belongings from

the house;
(e) assist the barangay officials and other government

officers and employees who respond to a call for help;
(f) ensure the enforcement of the Protection Orders issued

by the Punong Barangay or the courts;
(g) arrest the suspected perpetrator without a warrant

when any of the acts of violence defined by this Act is occurring, or
when he/she has personal knowledge that any act of abuse has just
been committed, and there is imminent danger to the life or limb of
the victim as defined in this Act; and
(h) immediately report the call for assessment or assistance

of the DSWD, Social Welfare Department of LGUs or accredited
non-government organizations (NGOs).
Any barangay official or law enforcer who fails to report the

incident shall be liable for a fine not exceeding Ten Thousand Pesos
(P10,000.00) or whenever applicable criminal, civil or administrative
liability.
299
XXX XXX XXX
SEC. 33. Prohibited Acts. – A Punong Barangay, Barangay

Kagawad or the court hearing an application for a protection order
shall not order, direct, force or in any way unduly influence the
applicant for a protection order to compromise or abandon any of
the reliefs sought in the application for protection under this Act.
Section 7 of the Family Courts Act of 1997 and Sections 410, 411,
412 and 413 of the Local Government Code of 1991 shall not apply
in proceedings where relief is sought under this Act.
Failure to comply with this Section shall render the official

or judge administratively liable.
XXX XXX XXX
SEC. 48. Separability Clause. – If any section or provision

of this Act is held unconstitutional or invalid, the other sections or
provisions shall not be affected.
SEC. 49. Repealing Clause – All laws, presidential decrees,

executive orders and rules and regulations, or parts thereof,
inconsistent with the provisions of this Act are hereby repealed or
modified accordingly.
SEC. 50. Effectivity – This Act shall take effect fifteen (15)
days from the date of its complete publication in at least two (2)
newspapers of general circulation.
300
AN ACT INCREASING THE PENALTIES FOR ILLEGAL

NUMBERS GAMES, AMENDING CERTAIN PROVISIONS
OF PRESIDENTIAL DECREE NO. 1602, AND FOR OTHER
PURPOSES

SECTION 1. Declaration of Policy. - It is the policy of the

State to promote a just and dynamic social order that will ensure
the prosperity and independence of the nation and free the people
from poverty through policies that provide adequate social services,
promote full employment, a rising standard of living, and an
improved quality of life for all. It is likewise the policy of the State
that the promotion of social justice shall include the commitment
to create economic opportunities based on freedom of initiative and
self-reliance.
Hence, the State hereby condemns the existence of illegal

gambling activities such as illegal numbers games as this has become
an influential factor in an individual’s disregard for the value of
dignified work, perseverance and thrift since instant monetary gains
from it are being equated to success, thereby becoming a widespread
social menace and a source of corruption.
Towards this end, the State shall therefore adopt more

stringent measures to stop and eradicate the existence of illegal
numbers games in any part of the country.
XXX XXX XXX
SEC. 4. Possession of Gambling Paraphernalia or Materials.

- The possession of any gambling paraphernalia and other materials
used in the illegal numbers game operation shall be deemed prima
facie evidence of any offense covered by this Act.
301
SEC. 5. Liability of Government Employees and/or Public

Officials. - a) If the collector, agent, coordinator, controller,
supervisor, maintainer, manager, operator, financier or capitalist of
any illegal numbers game is a government employee and/or public
official, whether elected or appointed shall suffer the penalty of
twelve (12) years and one (1) day to twenty (20) years and a fine
ranging from Three million pesos (P3,000,000.00) to Five million
pesos (P5,000,000.00) and perpetual absolute disqualification from
public office.
In addition to the penalty provided in the immediately

preceding section, the accessory penalty of perpetual disqualification
from public office shall be imposed upon any local government
official who, having knowledge of the existence of the operation of
any illegal numbers game in his/her jurisdiction, fails to abate or to
take action, or tolerates the same in connection therewith.
b) In the case of failure to apprehend perpetrators of any

illegal numbers game, any law enforcer shall suffer an administrative
penalty of suspension or dismissal, as the case may be, to be imposed
by the appropriate authority.
XXX XXX XXX
SEC. 12. Implementing Rules and Regulations. - Within

sixty (60) days from the effectivity of this Act, the DILG, DOJ,
NAPOLCOM, and other concerned government agencies shall
jointly promulgate the implementing rules and regulations, as may
be necessary to ensure the efficient and effective implementation of
the provisions of this Act.
SEC. 13. Separability Clause. - If for any reason any section

or provision of this Act, or any portion thereof, or the application of
such section, provision or portion thereof to any person, group or
circumstance is declared invalid or unconstitutional, the remaining
provisions of this Act shall not be affected by such declaration and
shall remain in force and effect.
302
SEC. 14. Amendatory Clause. - The pertinent provisions

of Presidential Decree No. 1602, in so far as they are inconsistent
herewith, are hereby expressly amended or modified accordingly.
SEC. 15. Repealing Clause. - The provisions of other laws,

decrees, executive orders, rules and regulations inconsistent with
this Act are hereby repealed, amended or modified accordingly.
days after its publication in at least two (2) national newspapers of
303
AN ACT TO IMPROVE THE REVENUE COLLECTION

PERFORMANCE OF THE BUREAU OF INTERNAL
REVENUE (BIR) AND THE BUREAU OF CUSTOMS
(BOC) THROUGH THE CREATION OF A REWARDS AND
INCENTIVES FUND AND OF A REVENUE PERFORMANCE
EVALUATION BOARD AND FOR OTHER PURPOSES

Philippines in Congress assembled :

“Attrition Act of 2005”.
SEC. 2. Declaration of Policy. – It is the policy of the State

to optimize the revenue-generation capability and collection of
the Bureau of Internal Revenue (BIR) and the Bureau of Customs
(BOC) by providing for a system of rewards and sanctions through
the creation of a Rewards and Incentives Fund and a Revenue
Performance Evaluation Board in the above agencies for the purpose
of encouraging their officials and employees to exceed their revenue
targets.
SEC. 3. Coverage. – The system of rewards, incentives and

sanctions provided in this Act shall cover all officials and employees
of the BIR and the BOC, regardless of employment status, with at
least six months of service.
SEC. 4. Rewards and Incentives Fund. – A Rewards and

Incentives Fund, hereinafter referred to as the Fund, is hereby
created, to be sourced from the collection of the BIR and the BOC in
excess of their respective revenue targets of the year, as determined
by the Development Budget and Coordinating Committee (DBCC),
in the following percentages:
304
Excess of Collection of the Percent (%) of the Excess

Excess the Revenue Targets Collection to Accrue to the Fund
30 percent or below - 15 percent
More than 30 percent - 15 percent of the first 30% plus

20 percent of the remaining
excess.
The Fund shall be deemed automatically appropriated the
year immediately following the year when the revenue collection
target was exceeded and shall be released on the same fiscal year.
Revenue targets shall refer to the original estimated revenue

collection expected of the BIR and the BOC for a given fiscal year
as stated in the Budget of Expenditures and Sources of Financing
(BESF) submitted by the President to Congress. The BIR and the
BOC shall submit to the DBCC the distribution of the agencies’
revenue targets as allocated among its revenue districts in the case
of the BIR, and the collection districts in the case of the BOC.
Any incentive under this Section shall be apportioned among

the various units, official and employees of the BOC or the BIR, as
the case may be, in proportion to their relative contribution to the
aggregate amount of the excess collection over the targeted amount
of tax revenue to be collected by the two bureaus respectively.
The fund shall be allocated, distributed or released by the

Revenue Performance Evaluation Board in each agency, hereinafter
created in Section 6 of this Act, in accordance with the rules and
regulations issued by the same.
SEC. 5. Incentives to District Collection Offices. – In the

event that the BIR or the BOC fails to meet its revenue target by
less than ten (10%), the revenue districts, in the case of the BIR, or
the collection districts, in the case of the BOC, which exceed their
305
respective allocations of the revenue target (allocated target), shall

be entitled to rewards and incentives (district incentive) amounting
to ten percent (10%) of the excess over its allocated target: Provided,
however, That any BIR revenue district or BOC collection office
which deliberately foregoes any revenue collection in a given
year as part of a scheme to avoid a higher allocated target for the
subsequent year notwithstanding its having exceeded its allocated
target: Provided, further, That the allocated target of any such
district shall have been reported to and validated by the DBCC as
required in the immediately preceding section.
The district reward shall be deemed automatically

appropriated the year immediately following the year when the
revenue collection target was exceeded and shall be released in the
same fiscal year.
The allocation, distribution and release of the district

reward shall likewise be prescribed by the rules and regulations of
the Revenue Performance Evaluation Board.
SEC. 6. Revenue Performance Evaluation Board. - There is

hereby created a Revenue Performance Evaluation Board in the BIR
and the BOC, hereinafter referred to as the Board, each of which
shall be composed of the Secretary of the Department of finance
(DOF) or his/her Undersecretary as the Chairman; the Secretary
of the Department of Budget and Management (DBM) or his/her
Undersecretary; the Director General of the National Economic
and Development Authority (NEDA) or his/her Deputy Director
General; and as nonvoting members the Commissioners of the BIR
and the BOC, or their Deputy Commissioners; two representatives
from the rank-and-file employees; and a representative from the
officials, both of whom shall be duly nominated by their respective
recognized organization.
XXX XXX XXX
SEC. 8. Liability of Officials, Examiners and Employees of

the BIR and the BOC. – The officials, examiners, and employees of
306
the Bureau of Internal Revenue and the Bureau of Customs who

violate this Act or who are guilty of negligence, abuses or acts of
malfeasance or misfeasance or fail to exercise extraordinary diligence
in the performance of their duties shall be held liable for any loss
or injury suffered by any business establishment or taxpayer as a
result of such violation, negligence, abuse, malfeasance, misfeasance
or failure to exercise extraordinary diligence.
SEC. 9. Right to Appeal. – An official or employee whose

employment is terminated by virtue of the decision of the Board
may appeal to the Civil Service Commission (CSC) or the Office
of the President (OP), whichever is applicable, in accordance with
pertinent laws, rules and regulations.
SEC. 10. Performance Report. – The Commissioners of the

BIR and the BOC shall regularly file a report with the Board stating
therein the status of collection in their respective agencies, and in
the event of a shortfall or surplus, the source of the shortfall or
surplus, the personnel in-charge of the unit, his/her explanation for
the shortfall or surplus and his/her recommendation as to remedial
course of action in cases of shortfall, and in the case of the year-end
report the names of officers and employees who are recommended
for termination or reward.
The report shall be submitted semi-annually with the last

report to be annualized. A copy of the report shall be submitted to
Congress within two months after the period ends.
In the event of a shortfall in the national target, a separate

report shall be submitted by the voting members of the Board to the
Office of the President containing its evaluation of the performance
of the Commissioner concerned on the basis of which the President
may pursue a course of action consistent with the national interest.
Said reports shall likewise be furnished to Congress.
XXX XXX XXX

is declared invalid by a competent court, the remainder of this Act
307
or any provision not affected by such declaration of invalidity shall

remain in force and effect.

executive orders, other executive issuances, rules and regulations or
parts thereof, including the provisions of Section 285 of Republic Act
No. 8424, which are inconsistent with this Act are hereby repealed,
days after its publication in at least two newspapers of general
circulation.
APPROVED, January 25, 2005.
308
AN ACT AMENDING REPUBLIC ACT NO. 7227, AS AMENDED,

OTHERWISE KNOWN AS THE BASES CONVERSION
AND DEVELOPMENT ACT OF 1992, AND FOR OTHER
PURPOSES

SECTION 1. Section 12 of Republic Act No. 7227, as amended,

otherwise known as the Bases Conversion and Development Act of
1992, is hereby amended to read as follows:
“SEC. 12. Subic Special Economic Zone. – x x x
XXX
SEC. 6. In case of conflict between national and local laws

with respect to the tax exemption privileges in the CFZ, PPFZ,
JHSEZ and MSEZ, the same shall be resolved in favor of the
aforementioned zones: Provided, That the CFZ and PPFZ shall be
subject to the provisions of paragraphs (d), (e), (f), (g), (h), and (i) of
Section 12 of Republic Act No. 7227, as amended.
XXX
SEC. 8. Administration, Implementation and Monitoring

of Incentives. – The governing authorities shall be responsible for
the administration and implementation of the incentives granted
to their respective registered enterprises. They shall submit to
the Department of Finance (DOF) their respective annual tax
expenditures based on the computed costs in terms of revenue
forgone on the tax incentives granted to their registered enterprises.
For proper monitoring, the DOF shall create a single database of all
incentives provided by all these authorities. The DOF shall monitor
and review the incentives granted and submit an annual report to
the President.
309
XXX XXX XXX
SEC. 11. Separability Clause. – If any portion or provision

of this Act is declared unconstitutional, the remainder of this Act or
any provision not affected thereby shall remain in force and effect.
SEC. 12. Repealing Clause. – All laws, decrees, orders,

proclamations, rules and regulations or other issuances or parts
thereof inconsistent with the provisions of this Act are hereby
The provision of Section 50 of Republic Act No. 7916, as

amended, is hereby repealed.
The provisions of Section 13(b)(3) of Republic Act No. 7227,

as amended, with respect to public utilities engaged in the provision
of electric power and telecommunications services are hereby
repealed.
SEC. 13. Effectivity. – This Act shall take effect fifteen

(15) days after its publication in the Official Gazette or in any two
newspapers of general circulation, whichever comes earlier.
310
AN ACT ENHANCING REVENUE ADMINISTRATION AND

COLLECTION BY GRANTING AN AMNESTY ON ALL
UNPAID INTERNAL REVENUE TAXES IMPOSED BY
THE NATIONAL GOVERNMENT FOR TAXABLE YEAR
2005 AND PRIOR YEARS

SECTION 1. Coverage. — There is hereby authorized and

granted a tax amnesty which shall cover all national internal revenue
taxes for the taxable year 2005 and prior years, with or without
assessments duly issued therefore, that have remained unpaid as
of December 31, 2005: Provided, however, That the amnesty hereby
authorized and granted shall not cover persons or cases enumerated
under Section 8 hereof.
SEC. 2. Availment of the Amnesty. — Any person, natural or

juridical, who wishes to avail himself of the tax amnesty authorized
and granted under this Act shall file with the Bureau of Internal
Revenue (BIR) a notice and Tax Amnesty Return accompanied
by a Statement of Assets, Liabilities and Networth (SALN) as
of December 31, 2005, in such form as may be prescribed in the
implementing rules and regulations (IRR) of this Act, and pay the
applicable amnesty tax within six months from the effectivity of the
IRR.
SEC. 3. What to Declare in the SALN. — The SALN shall

contain a declaration of the assets, liabilities and networth as of
December 31, 2005, as follows:
(a) Assets within or without the Philippines, whether real

or personal, tangible or intangible, whether or not used in trade or
business: Provided, That property other than money shall be valued
at the cost at which the property was acquired: Provided, further,
That foreign currency assets and/or securities shall be valued at the
rate of exchange prevailing as of the date of the SALN;
311
(b) All existing liabilities which are legitimate and

enforceable, secured or unsecured, whether or not incurred in trade
or business; and
(c) The networth of the taxpayer, which shall be the

difference between the total assets and total liabilities.
XXX XXX XXX
SEC. 15. Implementing Rules and Regulations. – The

Secretary of Finance shall, in coordination with the Commissioner
of Internal Revenue, promulgate and publish the necessary rules
and regulations within sixty (60) days from the effectiviy of this
Act.

(15) days after its publication in the Official Gazette or in any two
newspapers of general circulation, whichever comes earlier.
APPROVED,
Lapsed into law on MAY 24, 2007 Without the signature of the
President, in accordance with Article VI, Section 27 (1) of the Constitution.
312
AN ACT TO REGULATE THE PRACTICE OF DENTISTRY,

DENTAL HYGIENE AND DENTAL TECHNOLOGY IN
THE PHILIPPINES, REPEALING FOR THE PURPOSE
REPUBLIC ACT NO. 4419, OTHERWISE KNOWN AS “AN
ACT TO REGULATE THE PRACTICE OF DENTISTRY
IN THE PHILIPPINES, AND FOR OTHER PURPOSES”,
AND REPUBLIC ACT NO. 768, OTHERWISE KNOWN
AS “AN ACT TO REGULATE THE PRACTICE OF
DENTAL HYGIENISTS IN THE PHILIPPINES, AND FOR
OTHER PURPOSES”, AND APPROPRIATING FUNDS
THEREFOR

ARTICLE I
TITLE, STATEMENT OF POLICY, OBJECTIVES, AND SCOPE

OF PRACTICE
SECTION 1. Title. - This Act shall be known as “The

Philippine Dental Act of 2007”.
SEC. 2. Statement of Policy. - The State recognizes the

importance of dentists, dental hygienists and dental technologists
in nation-building. Hence, it shall develop and nurture competent,
productive, morally-upright, and well rounded dentists, dental
hygienists and dental technologists whose standards of professional
practice and service shall be excellent, qualitative, world-class and
internationally recognized, globally competitive through regulatory
measures, programs and activities that foster their continuing
professional development.
XXX XXX XXX
313
ARTICLE II
THE PROFESSIONAL REGULATORY BOARD OF

DENTISTRY
SEC. 5. Composition of the Board. - There is hereby created

a Professional Regulatory Board of Dentistry, hereinafter referred
to as the Board, under the administrative control and supervision of
the Professional Regulation Commission (PRC), hereinafter referred
to as the Commission, composed of a chairman and four members
who shall be appointed by the President of the Philippines from the
recommendees chosen and ranked by the Commission from a list of
nominees submitted by the accredited and integrated professional
organization.
XXX XXX XXX
SEC. 10. Suspension and Removal from Office. - Any

member of the Board may, upon the recommendation of the
Commission after due process of law and investigation conducted
by the Commission, be suspended or removed by the President from
office for cause such as neglect of duty, abuse of power, oppression,
incompetence, unprofessional, unethical, immoral or dishonorable
conduct, commission or toleration of irregularities in the conduct
of examination or tampering of the grades therein, or for any final
judgment or conviction of any criminal offense involving moral
turpitude by the court after having been given the opportunity to
defend himself/herself in a proper administrative investigation.
XXX XXX XXX
SEC. 36. Transitory Provision. - The existing Board shall

continue to function in the interim until such time that the new
Professional Regulatory Board of Dentistry shall be constituted
pursuant to this Act.
SEC. 37. Implementing Rules and Regulations. - The Board,

in coordination with the accredited professional organization and
314
with the approval of the Commission, shall promulgate, adopt and

implement such rules and regulations to carry out the provisions of
this Act.
SEC. 38. Separability Clause. - If any section or provision of

this Act shall be declared invalid or unconstitutional, such shall not
invalidate any other section or provision of this Act.
SEC. 39. Repealing Clause. - Republic Act No. 4419 and

Republic Act No. 768, are hereby repealed. All other laws or portions
thereof, orders, ordinances, or rules and regulations in conflict with
the provisions of this Act as pertain to the practice of dentistry shall
be, and are hereby repealed.
SEC. 40. Effectivity. - This Act shall take effect following its
publication in the Official Gazette or in any newspaper of general
circulation.
APPROVED, June 2, 2007
(Sgd.) GLORIA MACAPAGAL-ARROYO

President of the Philippines
315
AN ACT TO IMPROVE EFFICIENCY IN THE DELIVERY OF

GOVERNMENT SERVICE TO THE PUBLIC BY REDUCING
BUREAUCRATIC RED TAPE, PREVENTING GRAFT
AND CORRUPTION, AND PROVIDING PENALTIES
THEREFOR


“Anti-Red Tape Act of 2007”.
SEC. 2. Declaration of Policy. - It is hereby declared the policy

of the State to promote integrity, accountability, proper management
of public affairs and public property as well as to establish effective
practices aimed at the prevention of graft and corruption in
government. Towards this end, the State shall maintain honesty
and responsibility among its public officials and employees, and
shall take appropriate measures to promote transparency in each
agency with regard to the manner of transacting with the public,
which shall encompass a program for the adoption of simplified
procedures that will reduce red tape and expedite transactions in
government.
SEC. 3. Coverage. - This Act shall apply to all government

offices and agencies including local government units and
government-owned or -controlled corporations that provide frontline
services as defined in this Act. Those performing judicial, quasi-
judicial and legislative functions are excluded from the coverage of
this Act.
SEC. 4. Definition of Terms. - As used in this Act, the

following terms are defined as follows:
(a) “Simple Transactions” refer to requests or applications

submitted by clients of a government office or agency which only
require ministerial actions on the part of the public officer or
316
employee, or that which present only inconsequential issues for the

resolution by an officer or employee of said government office.
(b) “Complex Transactions” refer to requests or applications

submitted by clients of a government office which necessitate
the use of discretion in the resolution of complicated issues by an
officer or employee of said government office, such transaction to be
determined by the office concerned.
(c) “Frontline Service” refers to the process or transaction

between clients and government offices or agencies involving
applications for any privilege, right, permit, reward, license,
concession, or for any modification, renewal or extension of the
enumerated applications and/or requests which are acted upon in
the ordinary course of business of the agency or office concerned.
(d) “Action” refers to the written approval or disapproval

made by a government office or agency on the application or request
submitted by a client for processing.
(e) “Officer or Employee” refers to a person employed in a

government office or agency required to perform specific duties and
responsibilities related to the application or request submitted by a
client for processing.
(f) “Irrelevant requirements” refer to any document or

performance of an act not directly material to the resolution of the
issues raised in the request or needed in the application submitted
by the client.
(g) “Fixer” refers to any individual whether or not officially

involved in the operation of a government office or agency who has
access to people working therein, and whether or not in collusion with
them, facilitates speedy completion of transactions for pecuniary
gain or any other advantage or consideration.
SEC. 5 Reengineering of Systems and Procedures. - All offices

and agencies which provide frontline services are hereby mandated
317
to regularly undertake time and motion studies, undergo evaluation

and improvement of their transaction systems and procedures and
re-engineer the same if deemed necessary to reduce bureaucratic
red tape and processing time.
SEC. 6. Citizen’s Charter. - All government agencies including

departments, bureaus, offices, instrumentalities, or government-
owned and/or controlled corporations, or local government or
district units shall set up their respective service standards to be
known as the Citizen’s Charter in the form of information billboards
which should be posted at the main entrance of offices or at the most
conspicuous place, and in the form of published materials written
either in English, Filipino, or in the local dialect, that detail:
(a) The procedure to obtain a particular service;
(b) The person/s responsible for each step;
(c) The maximum time to conclude the process;
(d) The document/s to be presented by the customer, if

necessary;
(e) The amount of fees, if necessary; and
(f) The procedure for filing complaints.
SEC. 7. Accountability of the Heads of Offices and Agencies.

- The head of the office or agency shall be primarily responsible for
the implementation of this Act and shall be held accountable to the
public in rendering fast, efficient, convenient and reliable service.
All transactions and processes are deemed to have been made with
the permission or clearance from the highest authority having
jurisdiction over the government office or agency concerned.
SEC. 8. Accessing Frontline Services. - The following shall be

adopted by all government offices and agencies:
318
(a) Acceptance of Applications and Request - (1) All officers

or employees shall accept written applications, requests, and/or
documents being submitted by clients of the office or agency.
(2) The responsible officer or employee shall acknowledge

receipt of such application and/or request by writing or printing
clearly thereon his/her name, the unit where he/she is connected
with, and the time and date of receipt.
(3) The receiving officer or employee shall perform a

preliminary assessment of the request so as to promote a more
expeditious action on requests.
(b) Action of Offices - (1) All applications and/or requests

submitted shall be acted upon by the assigned officer or employee
during the period stated in the Citizen’s Charter which shall not
be longer than five working days in the case of simple transactions
and ten (10) working days in the case of complex transactions from
the date the request or application was received. Depending on the
nature of the frontline services requested or the mandate of the
office or agency under unusual circumstances, the maximum time
prescribed above may be extended. For the extension due to nature
of frontline services or the mandate of the office or agency concerned
the period for the delivery of frontline services shall be indicated in
the Citizen’s Charter. The office or agency concerned shall notify the
requesting party in writing of the reason for the extension and the
final date of release for the extension and the final date of release of
the frontline service/s requested.
(2) No application or request shall be returned to the client

without appropriate action. In case an application or request is
disapproved, the officer or employee who rendered the decision shall
send a formal notice to the client within five working days from the
receipt of the request and/or application, stating therein the reason
for the disapproval including a list of specific requirement/s which
the client failed to submit.
(c) Denial of Request for Access to Government Service

- Any denial of request for access to government service shall be
319
fully explained in writing, stating the name of the person making

the denial and the grounds upon which such denial is based. Any
denial of request is deemed to have been made with the permission
or clearance from the highest authority having jurisdiction over the
government office or agency concerned.
(d) Limitation of Signatories - The number of signatories

in any document shall be limited to a maximum of five signatures
which shall represent officers directly supervising the office or
agency concerned.
(e) Adoption of Working Schedules to Serve Clients - Heads

of offices and agencies which render frontline services shall adopt
appropriate working schedules to ensure that all clients who are
within their premises prior to the end of official working hours are
attended to and served even during lunch break and after regular
working hours.
(f) Identification Card - All employees transacting with the

public shall be provided with an official identification card which
should be visibly worn during office hours.
(g) Establishment of Public Assistance/Complaints Desk -

Each office or agency shall establish a public assistance/complaints
desk in all their offices.
SEC. 9. Automatic Extension of Permits and Licenses. - If

a government office or agency fails to act on an application and/
or request for renewal of a license, permit or authority subject
for renewal within the prescribed period, said permit, license
or authority shall automatically be extended until a decision or
resolution is rendered on the application for renewal: Provided,
That the automatic extension shall not apply when the permit,
license, or authority covers activities which pose danger to public
health, public safety, public morals or to public policy including, but
not limited to, natural resource extraction activities.
SEC. 10. Report Card Survey. - All offices and agencies

providing frontline services shall be subjected to a Report Card Survey
320
to be initiated by the Civil Service Commission, in coordination with

the Development Academy of the Philippines, which shall be used to
obtain feedback on how provisions in the Citizen’s Charter are being
followed and how the agency is performing.
The Report Card Survey shall also be used to obtain

information and/or estimates of hidden costs incurred by clients to
access frontline services which may include, but is not limited to,
bribes and payment to fixers.
A feedback mechanism shall be established in all agencies

covered by this Act and the results thereof shall be incorporated in
their annual report.
SEC. 11. Violations. - After compliance with the substantive

and procedural due process, the following shall constitute violations
of this Act together with their corresponding penalties:
(a) Light Offense - (1) Refusal to accept application and/

or request within the prescribed period or any document being
submitted by a client;
(2) Failure to act on an application and/or request or failure

to refer back to the client a request which cannot be acted upon due
to lack of requirement/s within the prescribed period;
(3) Failure to attend to clients who are within the premises

of the office or agency concerned prior to the end of official working
hours and during lunch break;
(4) Failure to render frontline services within the prescribed

period on any application and/or request without due cause;
(5) Failure to give the client a written notice on the

disapproval of an application or request; and
(6) Imposition of additional irrelevant requirements other

than those listed in the first notice.
321
Penalties for light offense shall be as follows:
First Offense - Thirty (30) days suspension without pay and

mandatory attendance in Values Orientation Program;
Second Offense - Three months suspension without pay;

and
Third Offense - Dismissal and perpetual disqualification

from public service.
(b) Grave Offense - Fixing and/or collusion with fixers in

consideration of economic and/or other gain or advantage.
Penalty - Dismissal and perpetual disqualification from

public service.
SEC. 12. Criminal Liability for Fixers. - In addition to

Sec. 11(b), fixers, as defined in this Act, shall suffer the penalty of
imprisonment not exceeding six years or a fine not less than Twenty
Thousand Pesos (P20,000.00) but not more than Two Hundred
Thousand Pesos (P200,000.00) or both fine and imprisonment at the
SEC. 13. Civil and Criminal Liability, Not Barred. - The

finding of administrative liability under this Act shall not be a bar
to the filing of criminal, civil or other related charges under existing
laws arising from the same act or omission as herein enumerated.
SEC. 14. Administrative Jurisdiction. - The administrative

jurisdiction on any violation of the provisions of this Act shall be
vested in either the Civil Service Commission (CSC), the Presidential
Anti-Graft Commission (PAGC) or the Office of the Ombudsman as
determined by appropriate laws and issuances.
SEC. 15. Immunity; Discharge of Co-Respondent/Accused to

be a Witness. - Any public official or employee or any person having
been charged with another under this Act and who voluntarily gives
322
information pertaining to an investigation or who willingly testifies

therefore, shall be exempt from prosecution in the case/s where his/
her information and testimony are given. The discharge may be
granted and directed by the investigating body or court upon the
application or petition of any of the respondent/accused-informant
and before the termination of the investigation: Provided, That:
(a) There is absolute necessity for the testimony of the

respondent/accused-informant whose discharge is requested;
(b) There is no other direct evidence available for the proper

prosecution of the offense committed, except the testimony of said
respondent/accused-informant;
(c) The testimony of said respondent/accused-informant

can be substantially corroborated in its material points;
(d) The respondent/accused-informant has not been

previously convicted of a crime involving moral turpitude; and
(e) Said respondent/accused-informant does not appear to

be the most guilty.
Evidence adduced in support of the discharge shall

automatically form part of the records of the investigation. Should the
investigating body or court deny the motion or request for discharge
as a witness, his/her sworn statement shall be inadmissible as
evidence.
SEC. 16. Implementing Rules and Regulations. - The Civil

Service Commission, in coordination with the Development Academy
of the Philippines (DAP), the Office of the Ombudsman and the
Presidential Anti-Graft Commission (PAGC), shall promulgate the
necessary rules and regulations within ninety (90) days from the
effectivity of this Act.
SEC. 17. Separability Clause. - If any provision of this Act

shall be declared invalid or unconstitutional, such declaration shall
not affect the validity of the remaining provisions of this Act.
323
SEC. 18. Repealing Clause. - All provisions of laws,

presidential decrees, letters of instruction and other presidential
issuances which are incompatible or inconsistent with the provisions
of this Act are hereby deemed amended or repealed.
SEC. 19. Effectivity. - This Act shall take effect within fifteen
(15) days following its publication in the Official Gazette or in two
national newspapers of general circulation.
APPROVED, June 2, 2007

324
IMPLEMENTING RULES AND REGULATIONS
WHEREAS, Article II, Section 27 of the Constitution provides

that the State shall maintain honesty and integrity in the public
service and shall take positive and effective measures against graft
and corruption;
WHEREAS, there is an urgent need to establish an effective

system that will eliminate bureaucratic red tape, avert graft and
corrupt practices and improve the efficiency of delivery of government
frontline services;
WHEREAS, in response to the urgent need to eliminate red

tape and improve frontline service delivery, the Thirteenth Congress
enacted on June 2, 2007 Republic Act No. 9485, otherwise known as
the “Anti-Red Tape Act of 2007”;
WHEREAS, RA No. 9485 aims to promote transparency in

government with regard to the manner of transacting with the public
by requiring each agency to simplify frontline service procedures,
formulate service standards to observe in every transaction and
make known these standards to the client;
WHEREAS, Section 16 of the same law mandates the Civil

Service Commission, in coordination with the Development Academy
of the Philippines (DAP), the office of the Ombudsman (OMB) and
the Presidential Anti-Graft Commission (PAGC), to promulgate the
necessary rules and regulations to implement said Act;
WHEREAS, the CSC together with the DAP, OMB and

PAGC, conducted a series of consultative meetings with various
stakeholders to gather comments and recommendations as well as
to discuss possible issues in the implementation of the “Anti-Red
Tape Act of 2007;”
NOW THEREFORE, the Commission RESOLVES to adopt

the implementing rules and regulations of RA No. 9485, as follows:
325
RULE I. COVERAGE
SECTION 1. These Rules shall apply to all government offices

and agencies including local government units and government-
owned or controlled corporations with or without original charter that
provide frontline services as defined in this Act. Those performing
judicial, quasi-judicial and legislative functions are excluded from
the coverage of the Act, however, their respective frontline services
are deemed included.
RULE II. INTERPRETATION
SECTION 1. These Rules shall be interpreted in the light of

the Declaration of Policy found in Section 2 of the Act:
“It is hereby declared the policy of the State to promote

integrity, accountability, proper management of public affairs and
public property as well as to establish effective practices aimed at
the prevention of graft and corruption in government. Towards this
end, the State shall maintain honesty and responsibility among its
public officials and employees, and shall take appropriate measures
to promote transparency in each office or agency with regard to the
manner of transacting with the public, which shall encompass a
program for the adoption of simplified procedures that will reduce
red tape and expedite transactions in government.”
SECTION 2. Definition of Terms. For purposes of these

Rules, the following terms shall mean:
(a) “Action” refers to the written approval or disapproval

made by a government office or agency on the application or request
submitted by a client for processing.
(b) “Citizen’s Charter” refers to an official document,

a service standard, or a pledge, that communicates, in simple
terms, information on the services provided by the government to
its citizens. It described the step-by-step procedure for availing a
particular service, and the guaranteed performance level that they
may expect for that service.
326
(c) “Citizen” with reference to the Citizen’s Charter refers

to the clients whose interests and values are addressed by the
Citizen’s Charter and, therefore, includes not only the citizens of the
Republic of the Philippines, but also all the stakeholders, including
but not limited to, users, beneficiaries, other government offices and
agencies, and the transacting public.
(d) “Complex Transactions” refers to requests or applications

submitted by clients of a government office which necessitate
the use of discretion in the resolution of complicated issues by an
officer or employee of said government office, such transaction to be
determined by the office concerned.
(e) “Fixer” refers to any individual whether or not officially

involved in the operation of a government office or agency who has
access to people working therein and whether or not in collusion with
them, facilitates speedy completion of transactions for pecuniary
gain or any other advantage or consideration.
(f) “Fixing” refers to the act that involves undue facilitation

of transactions for pecuniary gain or any other advantage or
consideration.
(g) “Frontline Service” refers to the process or transaction

between clients and government offices or agencies involving
applications for any privilege, right, permit, reward, license,
concession, or for any modification, renewal or extension of the
enumerated applications and/or requests which are acted upon in
the ordinary course of business of the office or agency concerned.
(h) “Irrelevant requirements” refers to any document or

performance of an act not directly material to the resolution of the
issues raised in the request or needed in the application submitted
by the client.
(i) “Officer or Employee” refers to a person employed in a

government office or agency required to perform specific duties and
responsibilities related to the application or request submitted by a
client for processing.
327
(j) “Published Materials refers to printed, computer-

generated, or photocopied materials, and procedural manuals/
flowcharts, made available to the public or uploaded in the official
government websites, containing the basic information on accessing
frontline services.
(k) “Report Card Survey” refers to an evaluation tool

that provides a quantitative measure of actual public service user
perceptions on the quality, efficiency and adequacy of different
frontline services as well as a critical evaluation of the office or
agency and its personnel. It is an instrument that also solicits user
feedback on the performance of public services, for the purpose of
exacting public accountability and, when necessary, proposing
change.
(l) “Simple Transactions” refers to requests or applications

which only require ministerial actions on the part of the public officer
or employee, or that which present only inconsequential issues for
resolution by an officer or employee of said government office.
RULE III. RE-ENGINEERING OF SYSTEMS AND

PROCEDURES
SECTION 1. Within one (1) ear from effectivity of the Rules,

each office or agency shall:
a) Determine which processes or transactions constitute

frontline service,
b) Undertake reengineering of transaction systems and

procedures, including time and motion studies, if necessary; and
after compliance thereof,
c) Set up their respective service standards to be known as

the Citizen’s Charter.
SECTION 2. The reengineering process shall include a

review for the purpose of streamlining of the following:
328
a) Steps in providing the service;
b) Forms used;
c) Requirements;
d) Processing time; and
e) Fees and charges.
There shall also be a review of the location of the offices

providing frontline services and directional signs to facilitate
transactions.
SECTION 3. In the evaluation of official forms, government

offices and agencies rendering frontline services shall limit the
number of signatories to a maximum of five (5) signatures of officers
or employees directly supervising the evaluation, approval or
disapproval of the request, application, or transaction.
The head of government office or agency shall prescribe,

through an appropriate office order, the rules on the proper authority
to sign in the absence of the regulatory signatory, as follows:
(1) If there is only one official next in rank, he/she shall

automatically be the signatory;
(2) If there are two or more officials next in rank, the

appropriate office order shall prescribe the order of priority among
the officials next in rank within the same organizational unit; or
(3) If there is no official next in rank present and available,

the head of the department, office or agency shall designate an
officer-in-charge from among those next lower in rank in the same
organization unit.
329
RULE IV. CITIZEN’S CHARTER
SECTION 1. The Citizen’s Charter shall include the

following information:
(a) Vision and mission of the government office or agency;
(b) Identification of the frontline services offered, and the

clientele;
(c) The step-by-step procedure to obtain a particular

service;
(d) The officer or employee responsible for each step;
(e) The maximum time to conclude the process;
(f) Document/s to be presented by the client, with a clear

indication of the relevancy of said document/s;
(g) The amount of fees, if necessary;
(h) The procedure for filing complaints in relation to

requests and applications, including the names and contact details
of the officials/channels to approach for redress;
(i) Allowable period for extension due to unusual

circumstances; i.e. unforeseen events beyond the control of concerned
government office or agency; and
(j) Feedback mechanisms, contact numbers to call and/or

persons to approach for recommendations, inquiries, suggestions,
as well as complaints.
SECTION 2. The Citizen’s Charter shall be in the form of

information billboards which should be posted at the main entrance
of offices or at the most conspicuous place, and in the form of
published materials written either in English, Filipino, or in the
local dialect.
330
SECTION. 3. The head of office or agency shall constitute a

task force to prepare a Citizen’s Charter pursuant to the provisions of
the Acts and these Rules, taking into consideration the stakeholders,
users and beneficiaries of the frontline services, and shall conduct
consultative formulation and refinement of the provisions of the
Charter.
The participation of non-government organizations and other

concerned groups shall be encouraged. The head of office or agency
shall formally issue and release the Charter and shall monitor and
periodically review its implementation.
Offices and agencies with existing service standards shall

evaluate these standards to ensure compliance with the provisions
of this Rule.
SECTION 4. The office or agency shall review the Citizen’s

Charter whenever necessary, but not less than once every two
years.
SECTION 5. The assistance of the Civil Service Commission

and the Development Academy of the Philippines may be requested
for purposes of complying with Rules III and IV.
SECTION 6. The activities in Rules III and IV shall be

monitored b the Civil Service Commission through its Regional
Offices and Field Offices for re-evaluation and benchmarking.
RULE V. ACCOUNTABILITY OF HEADS OF OFFICES AND

AGENCIES
SECTION 1. The head of the office or agency shall be

primarily responsible for the implementation of these Rules and
shall be held accountable to the public in rendering fast, efficient,
convenient and reliable service. All transactions and processes are
deemed to have been made with the permission or clearance from
the highest authority having jurisdiction over the government office
or agency concerned. In case of failure to comply with these Rules,
331
appropriate charges may be filed against the head of office or agency

under existing law and rules, before the appropriate forum.
RULE VI. ACCESSING FRONTLINE SERIVCES
SECTION 1. All offices and agencies are enjoined to

undertake on a continuing basis programs to promote customer
satisfaction and improve service delivery, and other similar activities
for officers and employees in frontline services.
SECTION 2. Acceptance and Denial of the Application and

Requests.
(1) All officers or employees shall accept written applications,

requests, and/or documents being submitted by clients of the office
or agency.
(2) The responsible officer or employee shall acknowledge

receipt of such application and/or request by writing or printing
clearly thereon his/her name, the unit where he/she is connected
with, and the time and date of receipt.
(3) The receiving officer or employee shall perform a

preliminary assessment of the request so as to promote a more
expeditious action on requests, and shall determine trough a cursory
evaluation the sufficiency, of submitted requirements for a request
or application, taking into consideration the determined response
time for the transaction.
(4) All applications and/or requests in frontline services

shall be acted upon within the period prescribed under the Citizen’s
Charter, which in no case shall be longer than five (5) working days
in the case of simple transactions and ten (10) working days in the
case of complex transactions from the time the request or application
was received.
(5) Depending on the nature of the frontline services

requested or the mandate of the office or agency under unusual
332
circumstances, the maximum time prescribed above may be

extended. For the extension due to the nature of frontline services,
the period for the delivery of frontline services shall be indicated in
the Citizen’s Charter, which shall not be more than five (5) working
days for simple transactions, and not more than ten (10) working
days for complex transactions. The office or agency concerned shall
notify the requesting party in writing of the reason for the extension
and the final date of release of the frontline service/s required. In
case the applicant disagrees, he/she ay resort to the grievance or
complaint mechanisms prescribed in the Citizen’s Charter.
(6) No application or request shall be returned to the client

without appropriate action. In case an application or request is
disapproved the officer or employee who rendered the decision shall
send a formal notice to the client within five (5) working days from
the receipt of the request and/or application, stating therein the
reason for the disapproval including a list of specific requirement/s
which the client failed to submit.
Any denial of request for access to government service shall

be fully explained in writing, stating the name of the person making
the denial and the grounds upon which such denial is based. Any
denial of request is deemed to have been made with the permission
or clearance from the highest authority having jurisdiction over the
government office or agency concerned.
(7) This Section shall apply to government offices or

agencies which allow computer-based access to frontline services.
SECTION 3. Working Schedule. – Heads of offices and

agencies which render frontline services shall adopt appropriate
working schedules to ensure that all clients who are within their
premises prior to the end of official working hours are attended to
and served even during lunch break and after regular working hours.
Offices and agencies may consider providing frontline services as
early as seven (7) in the morning until as late as seven (7) in the
evening to adequately attend to clients. The frontline services
must at all times be complemented with adequate staff by adopting
333
mechanisms such as rotation system among officer personnel,

sliding flexi-time, reliever system especially in peak times of the
transaction, or providing skeletal personnel during lunch and snack
time.
To ensure the uninterrupted delivery of frontline services,

the heads of offices and agencies shall adopt the appropriate
mechanisms within six (6) months from the effectivity of these
rules.
SECTION 4. Identification Car. – All officers or employees

transacting with the public shall be provided with an official
identification card which should be worn during office hours. The
information on the identification card should be easy to read, such
that the officials and employees concerned can be identified by the
clients. For certain agencies where an identification card is not
provided, the officers and employees must wear nameplates or other
means of identification.
SECTION 5. Public Assistance Desk. – Each office or agency

shall establish a public assistance/complaints desk in all their offices,
where an officer or employee knowledgeable on frontline services
shall at all times be available for consultation and advice. The desk
shall be attended to even during breaktime.
The office or agency shall institute hotline numbers, short

message service, information communication technology, or other
mechanisms by which the client may adequately express their
complaints, comments or suggestions. It may also institute one-stop
shops or walk-in service counters. Special lanes may be established
for pregnant women, senior citizens, and persons with disabilities.
SECTION 6. Automatic Extension of Licenses, Permits,

and Authorities. – If a government office or agency fails to act on
an application and/or request for renewal of a license, permit or
authority subject for renewal within the prescribed period, said
permit, license or authority shall automatically be extended until a
decision or resolution is rendered on the application for renewal. In
334
this instance, the applicant shall be informed prior to the expiration

of the original period that more time is required to evaluate the
application or request.
No automatic extension or renewal shall apply to an expired

permit, license, or authority. No automatic extension or renewal
shall also apply when the permit, license or authority covers
activities which pose danger to public health, public safety, public
morals or to public policy including, but not limited to, natural
resource extraction activities.
RULE VII. REPORT CARD SURVEY
SECTION 1. The Civil Service Commission, in coordination

with the Development Academy of the Philippines, shall conduct
a survey to obtain feedback on existence and effectiveness of, as
well as compliance with the Citizen’s Charter, and how the office
or agency is performing insofar as frontline services are concerned.
The survey shall also be used to obtain information and/or estimates
of hidden costs incurred by clients to access frontline services which
may include, but is not limited to, bribes and payment to fixers.
The Civil Service Commission may tap other government agencies,
educational institutions such as Association of Schools of Public
Administration, non-government organizations, or other concerned
individuals or groups and may utilize existing government programs,
and support systems.
The evaluation tool may be linked with the program of the

Civil Service Commission to: (1) provide critical evaluation of the
office or agency, and its personnel; (2) check clients satisfaction,
operational efficiency and areas vulnerable to corruption; (3)
highlight best practices; (4) provide incentives for excellent service
delivery; and (5) give recommendations for improvement in problem
areas and inefficiencies in frontline services.
The Civil Service Commission shall publicize the results in

an annual report card survey and furnish the government agency
concerned the result of the survey assessment, evaluation and/or
335
observations. Such assessment, evaluation and/or observations

shall also be incorporated in the agency’s annual report and shall be
considered in the improvement, revision, modification, enhancement,
or amendment of its Citizen’s Charter and/or frontline services.
The Report Card Survey may include the following: (1) the
service proved – personal disposition of the employee providing the
service sought of; (2) the quality of service – how the service was
provided to the client; and (3) the physical working condition – how
the physical setup/lay-out of the office affects the performance,
efficiency, and accessibility of the service provided.
RULE VIII. DISCIPLINARY ACTION
SECTION 1. After compliance with the substantive and

procedural due process, the following shall constitute violations of
the Act and its Rules together with their corresponding penalties.
(a) Light offense –
(1) Refusal to accept application and/or request within the

prescribed period or any document being submitted by a client;
(2) Failure to act on an application and/or request or failure

to refer back to the client a request which cannot be acted upon due
to lack of requirement/s within the prescribed period;
(3) Failure to attend to clients who are within the premises

of the office or agency concerned prior to the end of official working
hours and during lunch break;
(4) Failure to render frontline services within the prescribed

period on an application and/or request without due cause;
(5) Failure to give the client a written notice on the

disapproval of an application or request; and
(6) Imposition of additional irrelevant requirements other

than those listed in the first notice under Rule VI, Section 1(6).
336
The term “prescribed period” shall refer to the period

specified under the Citizen’s Charter, or in the absence thereof, the
period provided for under Rule VI, Section I (4) hereof.
Penalties for light offenses shall be as follows:
First offense – Thirty (30) days suspension without pay

and mandatory attendance in Values Orientation Program; The
Civil Service Commission and the Office of the Ombudsman shall
promulgate a Values Orientation Program which shall include anti-
red tape and anti-fixing workshops suitable for this purpose.
Second offense – Three months suspension without pay;

and
Third Offense – Dismissal and perpetual disqualification

from public service.
(b) Grave Offense – Fixing and/or collusion with fixers in

consideration of economic and/or other gain or advantage.
Penalty – Dismissal and perpetual disqualification from

public service.
SECTION 2. The finding of administrative liability under

the Act and its Rules shall not be a bar to the filing or criminal, civil
or other related charges under existing laws arising from the same
act or omission as herein enumerated.
SECTION 3. Criminal Liability for Fixers. – Fixers shall

suffer the penalty of imprisonment not exceeding six years or a fine
of not less than Twenty thousand pesos (P20,000.000) but not more
than Two hundred thousand pesos (P200,000.00) or both fine and
imprisonment at the discretion of the court.
SECTION 4. Administrative Jurisdiction and Procedure.

– The Civil Service Commission (CSC) and the Office of the
Ombudsman shall have administrative jurisdiction over non-
337
presidential appointees, while the Office of the Ombudsman

and the Presidential Anti-Graft Commission (PAGC) shall have
administrative jurisdiction over presidential appointees. Their
respective procedures as determined by appropriate laws, rules and
issuances shall be observed regarding any violation of the provisions
of these Rules.
RULE IX. IMMUNITY
SECTION 1. Any public official or employee or any person

having been charged with another under the Act and who voluntarily
gives information pertaining to an investigation or who willingly
testifies therefor, shall be exempt from prosecution in the case/s
where his/her information and testimony are given.
SECTION 2. The discharge of co-respondent/accused to be

a witness may be granted and directed by the investigating body
or court upon the application or petition of any of the respondent/
accused informant and before the termination of the investigation:
Provided, That:
(a) There is absolute necessity for the testimony of the

respondent/accused-informant whose discharge is requested;
(b) There is no other direct evidence available for the proper

prosecution of the offense committed, except the testimony of said
respondent/accused-informant;
(c) The testimony of said respondent/accused-informant

can be substantially corroborated in its material points;
(d) The respondent/accused-informant has not been

previously convicted of a crime involving moral turpitude; and
(e) Said respondent/accused-informant does not appear to

be the most guilty.
Evidence adduced in support of the discharge shall

automatically form part of the records of the investigation.
338
Should the investigating body or court deny the motion or request

for discharge as a witness, his/her sworn statement shall be in
admissible as evidence.
SECTION 3. If the respondent-informant granted immunity

fails or refuses to testify or to continue to testify, or testifies falsely
or evasively, or violates any condition accompanying such immunity
without just cause, as determined by the office or agency concerned,
his/her immunity shall be cancelled and he/she shall be prosecuted
criminally and/or administratively.
RULE X. FINAL PROVISIONS
SECTION 1. The activities embodied in these Rules shall be

charged to the office or agency’s regular budget.
SECTION 2. An oversight committee composed of the Civil

Service Commission, as head, and the Office of the Ombudsman, the
Presidential Anti-Graft Commission, and the Development Academy
of the Philippines, as members, shall ensure the immediate, swift
and effective implementation of the Act and its Rules.
SECTION 3. These Rules may be amended or modified as

necessary.
SECTION 4. If any provision of these Rules shall be declared

invalid or unconstitutional, such declaration shall not affect the
validity of the remaining provisions.
SECTION 5. These Rules shall take effect fifteen (15) days

following its publication in a newspaper of general circulation.
Quezon City, July 24, 2008.
339
AN ACT ESTABLISHING A COMPREHENSIVE FIRE CODE

OF THE PHILIPPINES, REPEALING PRESIDENTIAL
DECREE NO. 1185 AND FOR OTHER PURPOSES

SECTION 1. This Act shall be known as the “Fire Code of

the Philippines of 2008”.
SEC. 2. It is the policy of the State to ensure public safety,

promote economic development through the prevention and
suppression of all kinds, of destructive fires, and promote the
professionalization of the fire service as a profession. Towards
this end, the State shall enforce all laws, rules and regulations to
ensure adherence to standard fire prevention and safety measures,
and promote accountability in the fire protection and prevention
service.
XXX XXX XXX
SEC. 11. Penalties. -
(2) Against the public officer/employee
(a) Administrative - The following acts or omissions shall

render the public officer/employee in charge of the enforcement of this
Code, its implementing rules and regulations and other pertinent
laws, administratively liable, and shall be punished by reprimand,
suspension or removal in the discretion of the disciplining authority,
depending on the gravity of the offense and without prejudice to the
provisions of other applicable laws:
(1) Unjustified failure of the public officer/employee to

conduct inspection of buildings or structures at least once a year;
340
(2) Deliberate failure to put up a sign in front of the

building or structure within his/her area of responsibility found
to be violating this Code, its implementing rules and regulations
and other pertinent laws, that the same is a “FIRE HAZARD” or a
“FIRETRAP”;
(3) Endorsing to the Chief, BFP or his/her duly authorized

representative for the certification, or submitting a report that the
building or structure complies with the standards set by this Code,
its implementing rules or regulations or other pertinent laws when
the same is contrary to fact;
(4) Issuance or renewal of occupancy or business permit

without the fire safety inspection certificate issued by the Chief,
BFP or his/her duly authorized representative;
(5) Failure to cancel the occupancy or business permit after

the owner, administrator, occupant or other person responsible for
the condition of the building, structure and other premises failed
to comply with the notice/order for compliance with the standards
set by this Code, its implementing rules and regulations and other
pertinent laws, within the specified period;
(6) Failure to abate a public nuisance within fifteen (15)

days after the owner, administrator, occupant or other responsible
person failed to abate the same within the period contained in the
notice to abate;
(7) Abusing his/her authority in the performance of his/her

duty through acts of corruption and other unethical practices; or
(8) Other willful impropriety or gross negligence in the

performance of his/her duty as provided in this act or its implementing
b) Punitive - In the case of willful violation involving

the abovementioned acts or omissions enumerated under Section
11 subparagraph 2(A), the public officer/employees shall, upon
341
conviction, be punished by imprisonment of not less than six (6)

months nor more than six (6) years or by a fine of not more than
One hundred thousand pesos (P100,000.00) or both such fine and
imprisonment: Provided, That where the violation is attended by
injury, loss of life and/or property, the violator shall be proceeded
against under the applicable provisions of the Revised Penal Code.
XXX XXX XXX
SEC. 16. In case any provision of this Act or any portion

thereof is declared unconstitutional by a competent court, other
provisions shall not be affected thereby.
SEC. 17. This Act shall take effect fifteen (15) days after its
publication in the Official Gazette or in two (2) national newspapers

342

KNOWN AS THE MIGRANT WORKERS AND OVERSEAS
FILIPINOS ACT OF 1995, AS AMENDED, FURTHER
IMPROVING THE STANDARD OF PROTECTION
AND PROMOTION OF THE WELFARE OF MIGRANT
WORKERS, THEIR FAMILIES AND OVERSEAS FILIPINOS
IN DISTRESS, AND FOR OTHER PURPOSES

SECTION 1. Paragraphs (a), (e), (g) and (h) of Section 2

of Republic Act. No. 8042, as amended, otherwise known as the
“Migrant Workers and Overseas Filipinos Act of 1995,” is hereby
“(a) In the pursuit of an independent foreign policy and

while considering national sovereignty, territorial integrity,
national interest and the right to self-determination paramount in
its relations with other states, the State shall, at all times, uphold
the dignity of its citizens whether in country or overseas, in general,
and Filipino migrant workers, in particular, continuously monitor
international conventions, adopt/be signatory to and ratify those
that guarantee protection to our migrant workers, and endeavor
to enter into bilateral agreements with countries hosting overseas
Filipino workers.”
“(e) Free access to the courts and quasi-judicial bodies and

adequate legal assistance shall not be denied to any person by
reason of poverty. In this regard, it is imperative that an effective
mechanism be instituted to ensure that the rights and interest
of distressed overseas Filipinos, in general, and Filipino migrant
workers, in particular, whether regular/documented or irregular/
undocumented, are adequately protected and safeguarded.”
343
“(g) The State recognizes that the most effective tool for
empowerment is the possession of skills by migrant workers.
The government shall provide them free and accessible skills
development and enhancement programs. Pursuant to this and as
soon as practicable, the government shall deploy and/or allow the
deployment only of skilled Filipino workers.”
“(h) The State recognizes non-governmental organizations,

trade unions, workers associations, stakeholders and their similar
entities duly recognized as legitimate, are partners of the State in
the protection of Filipino migrant workers and in the promotion of
their welfare. The State shall cooperate with them in a spirit of trust
and mutual respect. The significant contribution of recruitment and
manning agencies shall form part of this partnership.”
XXX XXX XXX
SEC. 3. Section 4 of Republic Act No. 8042, as amended, is

XXX XXX XXX
“The members of the POEA Governing Board who actually

voted in favor of an order allowing the deployment of migrant workers
without any of the aforementioned guarantees shall suffer the
penalties of removal or dismissal from service with disqualification
to hold any appointive public office for five (5) years, Further, the
government official or employee responsible for the issuance of
the permit or for allowing the deployment of migrant workers in
violation of this section and in direct contravention of an order by
the POEA Governing Board prohibiting deployment shall be meted
the same penalties in this section.
XXX XXX XXX
SEC. 21. The first and last paragraph of Section 33 of

Republic Act No. 8042, as amended, is hereby amended to read as
follows:
344
“SEC. 33. Report to Congress. - In order to inform the

Philippine Congress on the implementation of the policy enunciated
in Section 4 hereof, the Department of Foreign Affairs and the
Department of Labor and Employment shall submit separately
to the said body a semi-annual report of Philippine foreign posts
located in countries hosting Filipino migrant workers. The mid-year
report covering the period January to June shall be submitted not
later than October 31 of the same year while the year-end report
covering the period July to December shall be submitted not later
than May 31 of the following year. The report shall include, but
shall not be limited to, the following information:
XXX XXX XXX
“Any officer of the government who fails to submit the

report as stated in this section shall be subject to an administrative
penalty of dismissal from the service with disqualification to hold
any appointive public office for five (5) years.”
XXX XXX XXX
SEC. 27. Separability Clause. – If, for any reason, any portion
of this Act is declared unconstitutional or invalid, the same shall not
affect the validity of the other provisions not affected thereby.

orders, issuances, rules and regulations or parts thereof inconsistent
with the provisions of this Act are hereby repealed or modified
accordingly.
days after its publication in at least two (2) newspapers of general
circulation.
345
AN ACT ESTABLISHING THE TUBBATAHA REEFS NATURAL

PARK IN THE PROVINCE OF PALAWAN AS A PROTECTED
AREA UNDER THE NIPAS ACT (R.A. 7586) AND THE
STRATEGIC ENVIRONMENTAL PLAN (SEP) FOR
PALAWAN ACT (R.A. 7611), PROVIDING FOR ITS
MANAGEMENT AND FOR OTHER PURPOSES

SECTION 1. Short Title. – This Act shall be known and

referred to as the “Tubbataha Reefs Natural Park (TRNP) Act of
2009”.
SEC. 2. Declaration of Policy. – It shall be the declared

policy of the State to ensure the protection and conservation of the
globally significant economic, biological, sociocultural, educational,
and scientific values of the Tubbataha Reefs into perpetuity for
the enjoyment of present and future generations. These shall
be pursued by managing the TRNP under a “no-take” policy and
through a sustainable and participatory management, taking into
consideration all applicable laws and international conventions to
which the Philippines is a signatory.
It shall further be the policy of the State to promote the

Tubbataha Reefs, with the end in view of fostering widespread
awareness and concern for the same. Towards this end, the State
shall undertake to carry out comprehensive and holistic promotions,
training and information campaign programs for the benefit of the
general public, in pursuance of the duty of the State to uphold the
primacy of protecting, preserving and promoting these resources.
Finally, it shall be the policy of the State to encourage the

participation of the private sector and the local government units
in the protection, preservation and promotion of the Tubbataha
Reefs.
346
XXX XXX XXX
SEC. 37. Citizen’s Suits. – For the purposes of enforcing the

provisions of this Act or its implementing rules and regulations,
any citizen may file an appropriate civil, criminal or administrative
action in the proper courts/bodies against:
(a) Any person who violates or fails to comply with the

provisions of this Act its implementing rules and regulations; or
(b) Those mandated to implement and enforce the

provisions of this Act with respect to orders, rules and regulations
issued inconsistent with this Act; and/or 24
(c) Any public officer who willfully or grossly neglects the

performance of an act specifically enjoined as a duty by this Act or
its implementing rules and regulations; or abuses his authority in
the performance of his duty; or, in any manner improperly performs
his duties under this Act or its implementing rules and regulations:
Provided, however, That, no suit can be filed until after a thirty(30)-
day notice has been given to the public officer and the alleged violator
concerned and no appropriate action has been taken thereon. The
court shall exempt such action from the payment of filing fees, upon
prima facie showing of the non-enforcement or violations complained
of and exempt the plaintiff from the filing of an injunction bond for
the issuance of preliminary injunction.
In the event that the citizen should prevail, the court shall
award reasonable attorney’s fees, moral damages and litigation
costs as appropriate.
SEC. 38. Suits and Strategic Legal Action Against Public

Participation (SLAPP) and the Enforcement of this Act. – Where
a suit is brought against a person who filed an action as provided
in Section 37 of this Act, or against any person, institution or
government agency that implements this Act, it shall be the duty
of the investigating prosecutor or the court, as the case may be, to
immediately make a determination not exceeding thirty (30) days
347
whether said legal action has been filed to harass, vex, exert undue
pressure or stifle such legal recourses of the person complaining of
or enforcing the provisions of this Act. Upon determination thereof,
evidence warranting the same, the investigating prosecutor or the
court, as the case may be, shall dismiss the complaint. In addition,
the court shall award the attorney’s fees and double the amount of
damages.
This provision shall also apply and benefit public officers who
are sued for acts committed in their official capacity, there being no
grave abuse of authority, and done in the course of enforcing this
Act.
XXX XXX XXX
SEC. 45. Separability Clause. – If any part or section of

this Act is declared unconstitutional or otherwise invalid, such
declaration shall not affect the other parts or sections hereof.
SEC. 46. Repealing Clause.— All laws, presidential decrees,

executive orders, rules and regulations inconsistent with this Act
shall be deemed repealed or modified accordingly.
SEC. 47. Effectivity. – This Act shall take effect immediately

after its complete publication in two (2) newspapers of general
circulation.
APPROVED, April, 06 2010.
348
AN ACT PROVIDING FOR THE DEVELOPMENT AND PROMOTION

OF ORGANIC AGRICULTURE IN THE PHILIPPINES AND
FOR OTHER PURPOSES

SECTION. 1 Title. – This Act shall be known as the “Organic

Agriculture Act of 2010”.
SEC. 2 Declaration of Policy. – It is hereby declared the

policy of the State to promote, propagate, develop further and
implement the practice of organic agriculture in the Philippines
that will cumulatively condition and enrich the fertility of the soil,
increase farm productivity, reduce pollution and destruction of the
environment, prevent the depletion of natural resources, further
protect the health of farmers, consumers, and the general public, and
save on imported farm inputs. Towards this end, a comprehensive
program for the promotion of community-based organic agriculture
systems which include, among others, farmer-produced purely
organic fertilizers such as compost, pesticides and other farm
inputs, together with a nationwide educational and promotional
campaign for their use and processing, as well as adoption of organic
agricultural system as a viable alternative shall be undertaken.
The State recognizes and supports the central role of the

farmers, indigenous people and other stakeholders at the grassroots
in this program.
XXX XXX XXX
SEC. 26. Penal Provision. – Any person who willfully and

deliberately:
(a) obstructs the development or propagation of organic

agriculture, or the manufacture, production, sale or use of organic
agricultural inputs;
349
(b) refuses without just cause to extend the support and

assistance required under this Act; and
(c) mislabels or claims that the product is organic when

it is not in accordance with the existing standards for Philippine
organic agriculture or this Act shall, upon conviction, be punished
by imprisonment of not less than one (1) month nor more than six
(6) months, or a fine of not more than Fifty thousand pesos (P50,
000.00), or both, at the discretion of the court. If the offender is a
corporation or a juridical entity, the official who ordered or allowed
the commission of the offense shall be punished with the same
penalty. If the offender is in the government service, he shall, in
addition, be dismissed from office.
XXX XXX XXX

is declared invalid or unconstitutional, the other provisions not
affected thereby shall remain in full force and effect.

executive orders, presidential proclamations, rules and regulations
or parts thereof contrary to or inconsistent with this Act are hereby

(15) days following its publication in at least two (2) newspapers
of general circulation or in the Official Gazette, whichever comes
first.
350
AN ACT ESTABLISHING THE PHILIPPINE TAX ACADEMY,

DEFINING ITS POWERS AND FUNCTIONS
Be it enacted by the Senate and House of Representative of the

ARTICLE I
TITLE, DECLARATION AND POLICY OBJECTIVES

“Philippine Tax Academy Act”.
SEC. 2. Declaration of Policy. – It is the policy of the State to

train, mold, enhance and develop capabilities of tax collectors and
administrators to help improve their tax collection efficiency and
to become competent and effective public servants for the national
interest. The State also recognizes the vital role of taxpayers’
information and education to facilitate compliance with tax laws and
regulations and improve revenue generation efforts. For this purpose,
the State recognizes the need to create a specialized institution that
will provide the appropriate education, training skills, and values
to tax collectors and administrators and will disseminate tax laws,
regulation, guidelines and relevant information to the public.
ARTICLE II
ESTABLISHING A PHILIPPINE TAX ACADEMY
SEC. 3. Creation of the Philippine Tax Academy. – To carry

out the policy under Section 2 hereof, there is hereby created a
corporate body to be known as the “Philippine Tax Academy” which
shall have the attribute of perpetual succession and possessed of
the powers of corporations, to be exercised in conformity with the
provisions of this Act.
351
SEC. 4. Purpose. – The Philippine Tax Academy shall serve

as a learning institution for tax collectors and administrators of
the government and selected applicants from the private sector.
It shall handle all the trainings, continuing education programs
and other courses for all the officials and personnel of the Bureau
of Internal Revenue (BIR), the Bureau of Customs (BOC) and the
Bureau of Local Government Finance (BLGF). It shall develop and
implement a curriculum which includes those pertaining to: (a) the
technical aspects of tax collection, administration and compliance;
and (b) the career orientation and development for civil servants.
It shall conduct lectures, seminars, workshops and other training
programs designed to mold, develop, and enhance the skills and
knowledge, moral fitness, efficiency and capability of tax collectors
and administrators. It shall also perform such other function and
duties as may be necessary in carrying out its mandate.
All existing officials and personnel of the BIR, the BOC

and the BLGF shall be required to undergo the re-tooling and
enhancement seminars and training programs to be conducted by
the Philippine Tax Academy. All applicants to the said bureaus
shall also be required to pass the basic courses before they can be
hired whether on contractual or permanent status.
XXX XXX XXX
SEC. 10. The Corps of Professional Instructors. – The

Philippine Tax Academy shall be staffed by a Corps of Professional
Instructors with sufficient knowledge, education, training and actual
experience in taxation, public finance and revenue administration,
among others. An instructor shall be appointed by the Board of
Trustees, upon nomination of any member. The requirements and
restrictions of the Civil Service Law, laws, rules and regulations on
position classification and salary standardization shall be observed
in the appointment of the instructors of the Academy. For the purpose
of filling up the staffing requirements for the Corps of Professional
Instructors, officers, employees or personnel of the BIR, the BOC,
and the BLGF may be transferred to and from the Academy and
their respective institutions.
352
XXX XXX XXX
ARTICLE III
MISCELLANEOUS PROVISIONS
SEC. 16. Implementing Rules and Regulations. – The

Secretary of Finance, in coordination with the Commissioner of the
BIR, Commissioner of the BOC, and the Executive Director of the
BLGF, in consultation with representatives from the academe, shall
issue the implementing rules and regulations within ninety (90)
days from the effectivity of this Act.
SEC. 17. Separability Clause. – If, for any reason, any

section or provision of this Act is declared to be unconstitutional or
valid, the other sections or provisions hereof which are not affected
thereby shall continue to be in full force and effect.
SEC. 18. Repealing Clause. – All laws, decrees, orders,

rules and regulations, policies, programs or parts thereof that
are inconsistent with any of the provisions of this Act are hereby
repealed, amended or modified accordingly.
least two (2) newspapers of general circulation.
Approved,
Lapsed into law on JUL 31 2010 without the signature of the President,
in accordance with Article VI, Section 27 (1) of the Constitution.
353
AN ACT TO PROMOTE FINANCIAL VIABILITY AND

FISCAL DISCIPLINE IN GOVERNMENT-OWNED OR
-CONTROLLED CORPORATIONS AND TO STRENGTHEN
THE ROLE OF THE STATE IN ITS GOVERNANCE AND
MANAGEMENT TO MAKE THEM MORE RESPONSIVE
TO THE NEEDS OF PUBLIC INTEREST AND FOR OTHER
PURPOSES

CHAPTER I
General Provisions
SECTION 1. Short Title.—This Act shall be known as the

“GOCC Governance Act of 2011 .
SEC. 2. Declaration of Policy.—The State recognizes the

potential of government-owned or -controlled corporations (GOCCs)
as significant tools for economic development. It is thus the policy
of the State to actively exercise its ownership. rights in GOCCs and
to promote growth by ensuring that operations are consistent with
national development policies and programs.
Towards this end, the State shall ensure that:
(a) The corporate form of organization through which

government carries out activities is utilized judiciously;
(b) The operations of GOCCs are rationalized and monitored

centrally in order that government assets and resources are used
efficiently and the government exposure to all forms of abilities
including subsidies is warranted and incurred through prudent
means;
354
(c) The governance of GOCCs is carried out in a transparent,

responsible and accountable manner and with the utmost degree of
professionalism and effectiveness;
(d) A reporting and evaluation system, which will require

the periodic disclosure and examination of the operations and
management of the GOCCs, their assets and finances, revenues and
expenditures, is enforced;
(e) The governing boards of every GOCC and its subsidiaries

are competent to carry out its functions, fully accountable to the
State as its fiduciary, and acts in the best interest of the State;
(f) Reasonable, justifiable and appropriate remuneration

schemes are adopted for the directors/trustees, officers and
employees of GOCCs and their subsidiaries to prevent or deter the
granting of unconscionable and excessive remuneration packages;
and
(g) There is a clear separation between the regulatory and

proprietary activities of GOCCs, in order to achieve a level playing
field with corporations in the private sector performing similar
commercial activities for the public.
XXX XXX XXX
SEC. 19. Fiduciary Duties of the Board and Officers.—As

fiduciaries of the State, members of the Board of Directors/Trustees
and the Officers of GOCCs have the legal obligation and duty to
always act in the best interest of the GOCC, with utmost good faith
in all its dealings with the property and monies of the GOCC.
The members of the Board and Officers of GOCCs shall:
(a) Act with utmost and undivided loyalty to the GOCC;
(b) Act with due care, extraordinary diligence, skill and

good faith in the conduct of the business of the GOCC;
355
(c) Avoid conflicts of interest and declare an interest they

may have in any particular matter before the Board;
(d) Apply sound business principles to ensure the financial

soundness of the GOCC; and
(e) Elect and/or employ only Officers who are fit and proper
to hold such office with due regard to the qualifications, competence,
experience and integrity
Where a member of the Board or an Officer, by virtue of the

office, acquires or by virtue of the office, acquires or receives for
oneself a benefit or profit, of whatever kind or nature including, but
not limited to, the acquisition of shares in corporations where the
GOCC has an interest, using the properties of the GOCC for their
own benefit, receiving commission on contracts from the GOCC’s
assets, or taking advantage of corporate opportunities of the GOCC,
all such profits or benefits shall be subject to restitution under Section
24 of this Act, without prejudice to any administrative, civil or
criminal action against members of the Board of Directors/Trustees
or Officers. This provision shall be applicable notwithstanding the
fact that such member of the Board or Officer risked one’s own funds
in the venture.
XXX XXX XXX
SEC. 24. Restitution.—Upon the determination and report

of the Commission on Audit (COA) that properties or monies
belonging to the GOCC are in the possession of a member of the
Board or Officer without authority, or that profits are earned by the
member of the Board or Officer in violation of the fiduciary duty, or
the aggregate per diems, allowances and incentives received in a
particular year are in excess of the limits provided under the Act,
the member of the Board or Officer, receiving such properties or
monies shall return the same to the GOCC.
Failure to make the restitution within thirty (30) days

after a written demand has been served shall, after trial and final
356
judgment, be punished by an imprisonment of one (1) year and a

fine equivalent to twice the amount to be restituted, and in the
discretion of the court of competent jurisdiction, disqualification to
hold public office.
CHAPTER V
DISCLOSURE REQUIREMENTS
SEC. 25. Full Disclosure.—All GOCCs shall maintain a

website and post therein for unrestricted public access:
(a) Their latest annual audited financial and performance

report within thirty (30) days from receipt of such report;
(b) Audited financial statements in the immediate past five

(5) years;
(c) Quarterly, annual reports and trial balance;
(d) Current corporate operating budget;
(e) Complete compensation package of all the board members

and officers, including travel, representation, transportation and
any other form of expenses or allowances;
(f) Local and foreign borrowings;
(g) Performance scorecards and strategy maps;
(h) Government subsidies and net lending;
(i) All borrowings guaranteed by the government; and
(j) Such other information or report the GCG may

require.
XXX XXX XXX
357
SEC. 30. Suppletory Application of The Corporation Code and

Charters of the GOCCs.—The provisions of “The Corporation Code
of the Philippines” and the provisions of the charters of the relevant
GOCC, insofar as they are not inconsistent with the provisions of
this Act, shall apply suppletorily to GOCCS.
SEC. 31. Transitory Provision.—The Privatization Council

and Privatization and Management Office created under Executive
Order No. 323, Series of 2000, shall continue to implement and
finish the privatization of GOCCs that have been identified by the
said Privatization Council and approved for privatization by the
President prior to the effectivity of this Act: Provided, however,
That the privatization of said GOCCs hat remain unfinished at
the end of every two (2) years after the effectivity of this Act shall
be automatically transferred to the GCG which shall continue the
privatization of the GOCCs.
SEC. 32. Repealing Clause.—The charters of the GOCCs

under existing laws and all other laws, executive orders including
Executive Order No. 323, Series of 2000, administrative orders,
rules, regulations, decrees and other issuances or parts thereof
which are inconsistent with the provisions of this Act are hereby
revoked, repealed or modified accordingly.
SEC. 33. Separability Clause.—Should any provision of

this Act be declared unconstitutional, the same shall not affect the
validity of the other provisions of this Act.
SEC. 34. Effectivity.—This Act shall take effect after fifteen

(15) days following its publication in the Official Gazette or in two
newspapers of general circulation.
358
AN ACT REQUIRING ALL CONCERNED GOVERNMENT

AGENCIES TO ENSURE THE EARLY RELEASE OF
THE RETIREMENT PAY, PENSIONS, GRATUITIES
AND OTHER BENEFITS OF RETIRING GOVERNMENT
EMPLOYEES

SECTION 1. Declaration of State Policy. – It is hereby

declared that it is the policy of the State to ensure the timely and
expeditious release of the retirement pay, pensions, gratuities and
other benefits of all retiring employees of the government. Public
officers and employees who have spent the best years of their lives
serving the government and the public should not be made to wait to
receive benefits which are due to them under the law. Accordingly,
it is hereby mandated that highest priority shall be given to the
payment and/or settlement of the pensions, gratuities and/or other
retirement benefits of retiring government employees.
SEC. 2. Period for Release of Retirement Benefits. – The

head of the government agency concerned, the President and other
responsible officers of the Government Service Insurance System
(GSIS), the President and other responsible officers of the Home
Development Mutual Fund (Pag-IBIG Fund) and/or the Secretary
and other responsible officers of the Department of Budget and
Management (DBM) shall ensure the release of the retirement pay,
pensions, gratuities, and other benefits of a retiring government
employee within a period of thirty (30) days from the date of the
actual retirement of said employee: Provided, That all requirements
are submitted to the concerned government agency at least ninety
(90) days prior to the effective date of retirement: Provided, further,
That in the case of the GSIS, it shall pay the retirement benefits of
the retiring employee on his/her last day of his/her service to the
government, pursuant to the GSIS Charter.
359
SEC. 3. Retiring Employees With Pending Cases. – In the

case of retiring government employees with pending cases and
whose retirement benefits are being lawfully withheld due to
possible pecuniary liability, the head of the agency where such case
is pending shall ensure that the said case shall be terminated and/
or resolved within a period of three (3) months from the date of the
retirement of the concerned, employee: Provided, That in case the
concerned agency fails to terminate and/or resolve the case within
the said period without any justifiable reason(s), the retirement
benefits-due to the employee shall : be immediately released to him/
her without prejudice to the ultimate resolution of the case; except,
when the delay is deliberately caused by the retiring employee.
SEC. 4. Coverage. – This Act shall cover all branches, agencies

and/or instrumentalities of the government, including government-
owned and/or controlled corporations (GOCCs), excluding personnel
of the Armed Forces of the Philippines, and shall be applicable both
to applications for compulsory retirement and optional or early
retirement as authorized by law.
SEC. 5. Penal Provisions. – The unjustified failure and/

or refusal to release the pension, gratuities and other retirement
benefits due to a retiring government employee within the periods
prescribed above or to comply with any provision of this Act shall be
a ground for the filing of administrative disciplinary action against
the erring officer(s) and/or employee(s). Such erring officer(s) and/or
employee(s) shall, after hearing and due proceedings, be penalized
with suspension from the service without pay from six (6) months to
one (1) year, at the discretion of the disciplining authority.
This penalty shall not apply if the release of the retirement

benefits could not be accomplished due to force majeure and other
insuperable causes. In such cases, the thirty (30)-day period shall be
counted from the time such cause(s) cease(s) to exist.
SEC. 6. Implementing Rules and Regulations. – The Civil

Service Commission (CSC), after consultation and coordination with
the government agencies and/or instrumentalities affected by this
360
Act, including, but not limited to, the GSIS, the Pag-IBIG Fund,
the Constitutional Commissions, the Legislature and the Judiciary
as well as the Office of the Government Corporate Counsel (OGCC)
and the Department of the Interior and Local Government (DILG),
shall promulgate and issue the appropriate rules and regulations
for the proper implementation of this Act.
Such rules and regulations shall include provisions prescribing

uniform periods for the advance filing of retirement applications in
the different agencies concerned, as well as standard periods for the
processing and release of claims for retirement benefits, gratuities
and allowances which will pinpoint responsibility in case of delay in
the release thereof.
SEC. 7. Separability Clause. – If any provision, part or

portion of this Act shall be held as invalid, the provisions, parts
or portions of this Act not otherwise affected thereby shall remain
valid and effective.
SEC. 8. Repealing Clause. – All laws, executive issuances,

orders and rules and regulations contrary to or inconsistent with
the provisions of this Act or any part thereof are hereby repealed,
amended and/or modified accordingly.

days following its publication in the Official Gazette or in two (2)
newspapers of general circulation in the country.
APPROVED, July 14, 2011.
361
AN ACT TO FURTHER STRENGTHEN THE ANTI-MONEY

LAUNDERING LAW, AMENDING FOR THE PURPOSE
SECTIONS 10 AND 11 OF REPUBLIC ACT NO.
9160, OTHERWISE KNOWN AS THE “ANTI-MONEY
LAUNDERING ACT OF 2001 , AS AMENDED, AND FOR
OTHER PURPOSES


is hereby amended to read as follows:
“SEC. 10. Freezing of Monetary Instrument or Property. –

Upon verified ex parte petition by the AMLC and after determination
that probable cause exists that any monetary instrument or property
is in any way related to an unlawful activity as defined in Section
3(i) hereof, the Court of Appeals may issue a freeze order, which
shall be effective immediately. The freeze order shall be for a period
of twenty (20) days unless extended by the court. In any case, the
court should act on the petition to freeze within twenty-four (24)
hours from filing of the petition. If the application is filed a day
before a nonworking day, the computation of the twenty-four (24)-
hour period shall exclude the nonworking days.”
“A person whose account has been frozen may file a motion

to lift the freeze order and the court must resolve this motion before
the expiration of the twenty (20)-day original freeze order.”
“No court shall issue a temporary restraining order or a writ

of injunction against any freeze order, except the Supreme Court.”

read as follows:
362
“SEC. 11. Authority to Inquire into Bank Deposits. –

Notwithstanding the provisions of Republic Act No. 1405, as
amended; Republic Act No. 6426, as amended; Republic Act No.
8791; and other laws, the AMLC may inquire into or examine any
particular deposit or investment, including related accounts, with
any banking institution or non-bank financial institution upon order
of any competent court based on an ex parte application in cases of
violations of this Act, when it has been established that there is
probable cause that the deposits or investments, including related
accounts involved, are related to an unlawful activity as defined in
Section 3(i) hereof or a money laundering offense under Section 4
hereof; except that no court order shall be required in cases involving
activities defined in Section 3(i)(1), (2), and (12) hereof, and felonies
or offenses of a nature similar to those mentioned in Section 3(i)(1),
(2), and (12), which are Punishable under the penal laws of other
countries, and terrorism and conspiracy to commit terrorism as
defined and penalized under Republic Act No. 9372.”
“The Court of Appeals shall act on the application to inquire

into or examine any deposit or investment with any banking
institution or non-bank financial institution within twenty-four (24)
hours from filing of the application.”
“To ensure compliance with this Act, the Bangko Sentral ng

Pilipinas may, in the course of a periodic or special examination,
check the compliance of a Covered institution with the requirements
of the AMLA and its implementing rules and regulations.”
“For purposes of this section, ‘related accounts’ shall refer

to accounts, the funds and sources of which originated from and/or
are materially linked to the monetary instrument(s) or property(ies)
subject of the freeze order(s).”
“A court order ex parte must first be obtained before the

AMLC can inquire into these related Accounts: Provided, That the
procedure for the ex parte application of the ex parte court order
for the principal account shall be the same with that of the related
accounts.”
363
“The authority to inquire into or examine the main account

and the related accounts shall comply with the requirements of
Article III, Sections 2 and 3 of the 1987 Constitution, which are
hereby incorporated by reference.”
SEC. 3. Separability Clause. – If any provision of this Act or

the application thereof to any person or circumstance is held to be
void, or unconstitutional, any other provision not affected thereby
shall remain in full force and effect.

orders, rules and regulations or parts thereof as are inconsistent
with this Act are hereby repealed, amended or modified accordingly:
Provided, That the penal provisions shall not apply to acts done
prior to the effectivity of the AMLA on October 17, 2001.

(Sgd.) BENIGNO S. AQUINO III

364
EXECUTIVE ISSUANCES – PRESIDENTIAL DECREES
Part II
Executive Issuances
365
366
PRESIDENTIAL DECREE NO. 6
AMENDING CERTAIN RULES ON DISCIPLINE OF GOVERNMENT

WHEREAS, under Presidential Decree No. 1, dated

September 23, 1972, the Integrated Reorganization Plan was
adopted and made part of the law of the land;
WHEREAS, in the reorganization of the Government it is

necessary that we clean the public service of undesirable officials
and employees; and
WHEREAS, it is essential that administrative cases against

such officials and employees be disposed of in the most expeditious
manner;
NOW, THEREFORE, I, FERDINAND E. MARCOS,

President of the Philippines, by virtue of the powers vested in me
by the Constitution as Commander-in-Chief of the Armed Forces
of the Philippines, and pursuant to Proclamation No. 1081, dated
September 21, 1972, General Order No. 1 dated September 22,
1972, do hereby promulgate the following amendatory rules on the
administrative discipline of government officials and employees:
“SECTION 1. Ground for disciplinary action. – The following

shall be grounds for disciplinary action:
a. Dishonesty.
b. Oppression.
c. Misconduct.
d. Neglect of duty.
e. Disgraceful and immoral conduct.\
f. Being notoriously undesirable, which is of common
knowledge.
g. Discourtesy in the course of official duties.
h. Inefficiency and incompetence in the performance of
official duties.
367
i. Receiving for personal use a fee, gift, or other valuable

thing in the course of official duties or in connection
therewith when such fee, gift, or other valuable thing
is given by any person in the hope or expectation of
receiving a favor or better treatment than that accorded
other persons, or committing acts punishable under anti-
graft law.
j. Conviction of a crime involving moral turpitude.
k. Improper or unauthorized solicitation of contributions
from subordinate employees and by teachers or school
officials from school children.
l. Violation of existing civil service law and rules or
reasonable office regulations.
m. Falsification of official document.
n. Frequent unauthorized absences or tardiness in reporting
for duty, loafing or frequent unauthorized absences from
duty during regular office hours.
o. Habitual drunkenness.
p. Gambling prohibited by law.
q. Refusal to perform official duty or render overtime
service.
r. Disgraceful, immoral or dishonest conduct prior to
entering the service.
s. Physical or mental incapacity or disability due to immoral
or vicious habits.
t. Borrowing money by superior officers from subordinates
or lending by subordinates to superior officers.
u. Lending money at usurious rates of interest.
v. Willful failure to pay just debts or willful failure to pay
taxes due the Government.
w. Contracting loans of money or other property from
persons with whom the office of the employee concerned
has business relations.
x. Pursuit of business, vocation or profession without
the permission required by these rules or existing
regulations.
y. Insubordination.
368
z. Engaging directly or indirectly in partisan political

activities.
aa. Conduct prejudicial to the best interest of the service.
bb. Lobbying for personal interest or gain in legislative halls
and offices without authority.
cc. Promoting the sales of tickets in behalf of private
enterprises that are not intended for charitable or public
welfare purposes and even in the latter cases if there is
no prior authority.
dd. Nepotism as defined in Section 30 of the civil service law
as amended.
“SEC. 2. Disciplinary jurisdiction. – The Department Head

shall have authority to remove, separate, suspend and otherwise
discipline officers and employees under their jurisdiction, except
presidential appointees. Their decisions shall be final, except in
the case of removal. In case the penalty imposed is removal, the
respondent may appeal the decision to the Civil Service Commission.
An appeal shall not stop the decision from being executory, and in the
event that the respondent wins on appeal, he shall be considered as
having been under suspension during the pendency of the appeal.
Chiefs of bureaus and offices shall investigate and

decide administrative complaints against employees under their
jurisdiction. Their decision shall be final if the penalty imposed is
suspension without pay for not more than 30 days or fine of not more
than 30 days salary. If the penalty imposed is higher, the decision
may be appealed to the Department Head, and pending appeal, the
same shall be executor except when the penalty is removal.
An investigation may be entrusted to regional directors

or similar officials who shall make the necessary report and
recommendation to the chief of bureau or office within five (5) days
from termination of the investigation which shall be finished within
ten (10) days.
“SEC. 3. Summary proceedings. – No formal investigation

is necessary and the respondent may be immediately removed or
dismissed if any of the following circumstances is present :
369
a. When the charge is serious and the evidence of guilt is

strong.
b. When the respondent is a recidivist or has been repeatedly
charged, and there is a reasonable ground to believe that
he is guilty of the present charge.
c. When the respondent is notoriously undesirable.
“SEC. 4 Repealing clause. – Any provision of existing laws,

rules and regulations in conflict with this Decree are hereby modified
or repealed accordingly.
“SEC. 5. Effectivity. – This Decree shall take effect

immediately.”
Done in the City of Manila, this 27th day of September, in the

year of Our Lord, nineteen hundred and seventy-two.
(Sgd.) FERDINAND E. MARCOS

By the President :
(Sgd.) ROBERTO V. REYES

Acting Executive Secretary
370
CREATION OF POLCOM ADJUDICATION BOARDS AMENDING

THE POLICE ACT OF 1966
WHEREAS, pursuant to Proclamation No. 1081, dated

September 21, 1972, the Philippines was declared under a state
of martial law, for the reasons, among others, that criminal and
lawless elements have conspired and are conspiring with those who
want to undermine the faith of the people in, and to overthrow by
force, violence and deceit, the duly constituted government;
WHEREAS, among these criminal and lawless elements are

ranking officers and members of the city and municipal police forces
throughout the country;
WHEREAS, in order to rid the police service of said criminal

and lawless elements, and to inculcate a sense of discipline among
all city and municipal policemen, it is urgently necessary that
administrative cases against them be expeditiously disposed of;
WHEREAS, in order to expedite the dispositions of such

administrative cases, it is necessary that Adjudication and
Investigation Boards be created with the principal function of
investigating and disposing of administrative cases against all
members of the city and municipal police forces.
NOW, THEREFORE, I FERDINAND E. MARCOS,

Commander-in-Chief of all the Armed Forces of the Philippines, and
pursuant to Proclamation No. 1081 dated September 21, 1972, do
hereby order and decree that:
1. The Chairman of the Police Commission shall create as

many Adjudication Boards in the Office of the Police Commission
as are necessary to, review and dispose of all administrative cases
371
of city and municipal police forces heretofore and/or hereafter

referred to the Police Commission for final action. Each Board
shall be composed of a senior official of the Police Commission as
Chairman and a senior officer of the Philippine Constabulary and a
representative of the Secretary of Justice as members.
2. The Adjudication Boards shall perform the function of

the Police Commission en banc in the review and final adjudication
of administrative cases of members of police forces falling under
Police Act of 1966.
3. In lieu of the Board of Investigation provided for under

the Police Act of 1966, the Chairman of the Police Commission,
in coordination with the Secretaries of Justice and National
Defense, will create at least one board for each province and city,
to be composed of one representative of the Police Commission,
as Chairman; one representative of the Secretary of Justice and
a Constabulary Officer as members, which shall function on a full
time basis, under the direct supervision and control of the Police
Commission. These Boards shall perform the same duties as the
Board of Investigators in accordance with the Police Act of 1966 and
implementing Executive Orders, rules and regulations. Said Boards
shall submit a bi-monthly report on the cases referred to them for
investigation, indicating the status and/or disposition thereof, to
the Chairman of the Police Commission, who shall see to it that
cases filed with, and/or referred to, the Boards shall be acted upon
and disposed of without undue delay.
4. By virtue hereof, the provisions of the Police Act of 1966

and all Executive Orders, rules and regulations which are in conflict
with this Decree are hereby modified and/or amended.
5. The Chairman of the Police Commission shall promulgate

rules and regulations to implement this Decree.
372
Done in the City of Manila, this 3rd day of October, in the

year of Our Lord nineteen hundred and seventy-two.

By the President :

373
REQUIRING ALL PERSONS, NATURAL OR JURIDICAL,

OWNING OR ADMINISTERING REAL PROPERTY,
INCLUDING THE IMPROVEMENTS THEREON, TO FILE
SWORN STATEMENT OF THE TRUE VALUE OF SUCH
PROPERTY
I, FERDINAND E. MARCOS, President of the Philippines,

pursuant to the powers in me vested by the Constitution as
Commander-in-Chief of the Armed Forces of the Philippines, and in
accordance with Proclamation No. 1081, dated September 21, 1972,
and General Order No. 1 dated September 22, 1972, and knowing
–
THAT values of real property and improvements therein

are usually under declared obviously for the purpose of evading
payment of higher and correct taxes due the government;
THAT, although real property and the improvements therein

are undervalued for purposes of taxation, these real property are
sold to the government when needed for public purposes, such as
the construction of roads and other infrastructure, at their market
value which are usually ten (10) to twenty (20) times more than the
value declared by the owners for purpose of taxation; and –
In order to effect the desired changes and reforms in the

social, economic and political structure of the country, which is the
main objective of the New Society; hereby decree and order that:
1. All persons owning or administering real property,

including the improvements therein, shall file with the respective
Provincial or City Assessors not later than January 31, 1973, a
Sworn Statement declaring the true value of their property.
374
This Sworn Statement when approved by the Provincial or

City Assessors concerned, shall be the basis not only for the payment
of real property tax beginning with the year 1973 but also of the just
compensation to be paid to owners or administrators of land and
other real property expropriated or appropriated by the government
for public purpose or purposes.
2. From the decisions of Provincial or City Boards of Tax

Appeals, an appeal may be taken by the owner or by the Provincial
or City Assessor to a Central Board of Tax Appeals, composed of the
Secretary of Finance, as chairman, and the Secretary of Justice, and
the Secretary of Local Governments and Community Development,
as members, whose decision shall be final. Said Central Board of
Tax Appeals shall promulgate rules and regulations governing the
procedure in such appeals.
3. The true value of the land and the improvements therein

shall be the value for taxation plus the market value divided by
two.
4. Any one who shall knowingly make a false declaration

concerning any property or who shall fail to make statement as
required in section one of this Decree, shall, upon conviction, pay a
fine of not less than one hundred nor more than ten thousand pesos.
If the offense is committed by a corporation, the manager or person
in charge of the management of the business of the corporation shall
be responsible therefor.
5. The Secretary of Finance is hereby ordered to cause the

preparation of the necessary forms, in sufficient number, needed
for this purpose and to formulate the implementing details to be
followed by all Provincial and City Assessors for the immediate and
successful implementation of this Decree.
375
This Decree shall form part of the laws of the land and shall
take effect immediately after its publication.
Done in the City of Manila, this 20th day of October, in the


By the President :
(Sgd.) ALEJANDRO MELCHOR

Executive Secretary
376
MAKING IT PUNISHABLE FOR PUBLIC OFFICIALS AND

EMPLOYEES TO RECEIVE, AND FOR PRIVATE PERSONS
TO GIVE, GIFTS ON ANY OCCASION, INCLUDING
CHRISTMAS
WHEREAS, under existing laws and the civil service rules,

it is prohibited to receive, directly or indirectly, any gift, present or
any other form of benefit in the course of official duties;
WHEREAS, it is believed necessary to put more teeth to

existing laws and regulations to wipe out all conceivable forms of
graft and corruption in the public service, the members of which
should not only be honest but above suspicion and reproach; and
WHEREAS, the stoppage of the practice of gift-giving to

government men is a concrete step in the administration’s program
of reforms for the development of new moral values in the social
structure of the country, one of the main objectives of the New
Society;

by the Constitution as Commander-in-Chief of all the Armed Forces
of the Philippines, and pursuant to Proclamation No. 1081 dated
September 21, 1972, and General Order No. 1 dated September 22,
1972, do hereby make it punishable for any public official or employee,
whether of the national or local governments, to receive, directly or
indirectly, and for private persons to give, or offer to give, any gift,
present or other valuable thing to any occasion, including Christmas,
when such gift, present or other valuable thing is given by reason
of his official position, regardless of whether or not the same is for
past favor or favors or the giver hopes or expects to receive a favor
or better treatment in the future from the public official or employee
concerned in the discharge of his official functions. Included within
the prohibition is the throwing of parties or entertainments in honor
of the official or employees or his immediate relatives.
377
For violation of this Decree, the penalty of imprisonment for

not less than one (1) year nor more than five (5) years and perpetual
disqualification from public office shall be imposed. The official
or employee concerned shall likewise be subject to administrative
disciplinary action and, if found guilty, shall be meted out the
penalty of suspension or removal, depending on the seriousness of
the offense.
Any provision of law, executive order, rule or regulation or

circular inconsistent with this Decree is hereby repealed or modified
accordingly.
This Decree shall take effect immediately after its

publication.
Done in the City of Manila, this 10th day of November, in

the year of Our Lord, nineteen hundred and seventy-two.

By the President:

Executive Secretary
378
REQUIRING ALL PERSONS, NATURAL OR JURIDICAL,

OWNING OR ADMINISTERING REAL PROPERTY,
INCLUDING THE IMPROVEMENTS THEREON, TO FILE
SWORN STATEMENT OF THE TRUE VALUE OF SUCH
PROPERTY

by virtue of the powers vested in me by the Constitution as
Commander-in-Chief of all the Armed Forces of the Philippines, and
pursuant to Proclamation No. 1081, dated September 21, 1972, and
General Order No. 1, dated September 22, 1972, as amended, and
knowing -
THAT, values of real property and improvements therein

are usually under declared obviously for the purpose of evading
payment of higher and correct taxes due the government;
THAT, although real property and the improvements therein

are undervalued for purposes of taxation, these real property are
sold to the government when needed for public purposes, such as
the construction of roads and other infrastructures, at their market
value which are usually ten (10) to twenty (20) times more than the
value declared by the owners for purposes of taxation; and -
In order to effect the desired changes and reforms, in the

social, economic and political structure of the country, which is the
main objective of the New Society hereby decree and order that:
1. It shall be the duty of all persons, natural or juridical,

owning or administering real property, including the improvements
therein, within a city, municipality or municipal district, or their
duly authorized representative, to prepare, or cause to be prepared,
and file with the provincial or city assessor not later than June 30,
1973, a sworn statement declaring the true value of their property,
whether previously declared or undeclared, taxable or exempt,
379
which shall be the current and fair market value of the property, as
determined by the declarant.
The “current and fair market value” shall be understood to

mean the “price at which a willing seller would sell and a willing
buyer would buy neither being under abnormal pressure.”
For purposes of just compensation in cases of private

property acquired by the government for public use, the basis shall
be the current and fair market value declared by the owner or
administrator, or such market value as determined by the assessor,
whichever is lower.
Under this Decree, the assessed valuation which shall be

the basis for the payment of real property tax beginning with the
calendar year 1973 shall be fifty per centum of the current and
fair market value, as determined by the assessor, in the case of
commercial, industrial or mineral lands; forty per centum in the
case of agricultural lands; and thirty per centum in the case of lands
for purely residential purposes.
All improvements, including machineries, shall be assessed

independently of lands and their assessments shall be maintained
at their current levels, but in no case shall such levels be lower than
the assessment levels for lands hereinabove prescribed nor more
than eighty per centum of current and fair market value, except for
purely residential houses used as residence of owners thereof the
assessment levels of which are hereby fixed as follows:
Assessment
Current Fair Market Value
Level
15% P30,000.00 or less
20% 30,001.00 to P50,000.00
25% 50,001.00 to 75,000.00
380
35% 75,001.00 to 100,000.00

45% 100,001.00 to 150,000.00
55% 150,001.00 to 250,000.00
65% 250,001.00 to 350,000.00
75% 350,001.00 to 500,000.00
80% over 500,000.00
2. Every five years hereafter, revision of real property

assessment shall be undertaken by provincial and city assessors,
and no increase in the current assessment level, as determined by
the assessor, at any one time shall be more than ten per centum
of the assessment levels mentioned in the foregoing paragraphs:
Provided, That the limitation herein fixed on the frequency of
assessment revision and increase in assessment levels shall not
apply if the nature of the real estate has been changed from rural
to urban or from residential to commercial and industrial site; And
provided, further, That the assessment level of real property shall
not exceed eighty per centum of current and fair market value,
except upon prior approval of the Secretary of Finance.
3. When real property is found in any city, municipality or

municipal district, the owner or administrator of which failed to file
the sworn statement required under this Decree on or before June
30, 1973, the provincial or city assessor shall himself declare the
property in the name of the defaulting owner, if known, or against
an unknown owner, as the case may be, and shall assess the property
for taxation in accordance with the provisions of this Decree.
No oath shall be required of a declaration thus made by the

provincial or city assessor.
381
4. When the entire assessed valuation of real property in

any one municipality or municipal district belonging to a single
owner is not in excess of five hundred pesos, the tax thereon shall
not be collected though in any event the property shall be valued for
the purposes of assessment and record shall be kept thereof.
5. All existing tax declarations as of December 31, 1973
shall be superseded by the corresponding new tax declarations
issued under this Decree. Collections, however, of delinquent real
property taxes as of December 31, 1973 shall be computed on the
basis of the assessed value and rates of penalty then obtaining.
6. To achieve a uniform appraisal of real property,

provincial and city assessors shall prepare a schedule of current
and fair market value of different classes of real property in their
respective jurisdictions, using as guide the instructions prescribed
in the implementing rules prescribed by the Secretary of Finance.
Copies of the schedule of market values shall be furnished by the
Secretary of Finance not later than September 30, 1973; and the
same shall be adopted for use under this Decree unless modified
or revised by the Secretary of Finance on or before November 30,
1973.
7. Any owner who is not satisfied with the action of the

provincial or city assessor in the assessment of his property under
this Decree may, within sixty days from the date of receipt by
him of the written notice of assessment, appeal to the Board of
Tax (Assessment) Appeals of the province or city, which shall be
composed of three members: the Register of Deeds, as Chairman, the
Provincial or City Auditor and the Provincial or City Engineer, as
Members, who shall serve as such in the ex-officio capacity without
additional compensation.
The Provincial or City Board of Tax (Assessment) Appeals

shall decide the appeal within sixty days from receipt thereof. The
decision of the Board shall fully recite the consideration upon which
it is founded. Upon receipt of the decision, the Provincial or City
Assessor shall thereupon act accordingly. If, however, the owner or
382
administrator of the property or the assessor be not satisfied with

the decision of the Board of Tax (Assessment) Appeals, he may
within thirty days after receipt of the decision of the Board, appeal
to the Central Board of Tax (Assessment) Appeals, composed of the
Secretary of Finance, as Chairman, the Secretary of Justice and
the Secretary of Local Governments and Community Development,
as members, whose decision shall be final. Said Central Board of
Tax (Assessment) Appeals shall promulgate rules and regulations
governing the procedure in such appeals.
The appeals, however, shall not suspend the collections of

the corresponding realty taxes as assessed by the provincial, or city
assessor, without prejudice to subsequent adjustment depending
upon the final outcome of the appeal.
8. To effectively implement the objective of this Decree,

provincial, city, municipal or municipal district boards or councils
shall provide the necessary appropriations to underwrite or defray
expenses incident thereto, using for the purpose any unappropriated
balances in the general, road and bridge and/or permanent public
improvement funds; any underestimated revenues accruing thereto
or reversions of unauthorized appropriations in their respective
budgets which are not otherwise urgently needed, existing laws to
the contrary notwithstanding.
9. Any increase in the shares of provinces, cities,

municipalities and municipal districts from the additional one per
centum realty tax levied and apportioned under Republic Act No.
5447, accruing to their respective local school boards commencing
with fiscal year 1973-74 over what has been actually realized
during the fiscal year 1971-72 which, for purposes of this Decree,
shall remain as the base year, shall be divided equally between the
general fund and special education fund of the local government
units concerned. The Secretary of Finance may, however, at his
discretion, increase to not more than seventy-five per centum the
amount that shall accrue annually to the local general fund.
383
10. Failure to pay the real property tax before the expiration
of the terms for the payment without penalty of the quarterly
installment thereof, shall subject the taxpayer to the payment
of a penalty equivalent to two per centum on the amount of the
delinquent tax for each month of delinquency or fraction thereof
until the delinquent tax shall be fully paid: Provided, That in no
case shall the total penalty exceed twenty-four per centum of the
delinquent tax. The rate of penalty for tax delinquency fixed herein
shall be uniformly applied in all provinces and cities.
11. Anyone who shall knowingly make false declaration

concerning any property or who shall deliberately fail to file the
sworn statement required in this Decree shall, upon conviction,
pay a fine of not less than five hundred pesos nor more than ten
thousand pesos. If the offense is committed by a corporation, the
manager or person in charge of the management of the business of
the corporations shall be responsible therefor.
Any officer charged with the duty of assessing real property,

who shall willfully fail to assess, or shall omit from the tax lists, any
real property which he knows to be lawfully taxable pursuant to and
according to this Decree shall be punished by a fine not exceeding
five thousand pesos, or imprisonment of not more than two years, or
both, at the discretion of the court.
Any government official or employee who shall intentionally

and deliberately delay the filing of the real property tax declaration
or the filing of any appeal against an assessment shall, upon
conviction, be punished by a fine of not more than one thousand
pesos or by imprisonment of not more than two years, or both, at the
12. The Secretary of Finance is hereby ordered to formulate

the implementing rules and regulations to be followed by all
Provincial and City Assessors for the immediate and successful
implementation of this Decree.
384
This Decree shall form part of the laws of the land and
shall take effect immediately after its publication. All laws, rules
and regulations which are inconsistent with this Decree are hereby
repealed.
Done in the City of Manila, this 6th day of December, in the


By the President :

Executive Secretary
385
PRESCRIBING A HEAVY PENALTY FOR THE THEFT OF ANY

MATERIAL, SPARE PART, PRODUCT OR ARTICLE BY
EMPLOYEES AND LABORERS
In line with the government’s program of eradicating graft

and corruption in society, and promote the economic and social
welfare of the people, I, FERDINAND E. MARCOS, President of the
Philippines, by virtue of the powers vested in me by the Constitution
as Commander-in-Chief of all the Armed Forces of the Philippines,
and pursuant to Proclamation No. 1081, dated September 21, 1972,
and General Order No. 1, dated September 22, 1972, as amended,
do hereby order and decree that any employee or laborer who shall
steal any material, spare part, product or article that he is working
on, using or producing shall, upon conviction, be punished with
imprisonment ranging from prision correccional to prision mayor.
All laws inconsistent herewith are hereby repealed or

modified accordingly, unless the same provide a heavier penalty.
This Decree is hereby made a part of the law of the land

and shall take effect immediately after the publication thereof in a
Done in the City of Manila, this 20th day of February, in the

year of Our Lord, nineteen hundred and seventy-three.

By the President :

Executive Secretary
386
GRANTING AMNESTY TO PERSONS WHO ARE REQUIRED BY

LAW TO FILE INCOME TAX RETURNS BUT HAD FAILED
TO DO SO, SUBJECT TO CERTAIN CONDITIONS
WHEREAS, the actual number of income tax filers for the

calendar year 1972 is about one and a half million only as shown by
the records of the Bureau of Internal Revenue;
WHEREAS, statistics on the number of wage earners,

registered owners of real property, motor vehicles and shares of
stock of corporations, professionals, persons who have travelled
abroad as well as on taxable transactions indicate that the number
of income tax filers for the calendar year 1972 should be about four
million; and
WHEREAS, the difference between the estimated and the

actual number of income tax filers is attributable to the lack of
information on the requirement to file an income tax return especially
as regards those cases where it is mandatory to file an income tax
return even if no gross income was realized in the preceding year.

of the Philippines, and pursuant to Proclamation No. 1081 dated
September 21, 1972, and General Order No. 1, dated September
22, 1972, as amended, whereby I have assumed direction of the
operation of the entire Government, do hereby decree, consistent
with the declared policy of the Government to give taxpayers a
chance to reform and be a part of the New Society, that:
1. Any person who is not liable to pay an income tax but

is nevertheless required by law to file an income tax return as
enumerated below, and who failed to do so, may now voluntarily
file the return or returns and pay TEN PESOS for each year that no
such return was filed, to wit:
387
Every (1) Filipino citizen, whether residing in the Philippines

or abroad; or (2) resident alien, or (3) non-resident alien engaged
in trade or business in the Philippines, shall file an income tax
return if he falls under any of the following categories, regardless of
whether he derives any income or not for the taxable year if, during
that taxable year, he -
(1) Is an official or employee of the Government or has a

contract with the Government of the Republic of the Philippines,
or any of its agencies or instrumentalities, including government-
owned, or controlled corporations, regardless of the nature of his
appointment or duration of his employment;
(2) Is a professional;
(3) Is a registered or beneficial owner or mortgagee of any

real property;
(4) Is a registered or beneficial owner, or mortgagee of any

motor vehicle;
(5) Is a registered or beneficial owner, or mortgagee of any

share of stock or security of a corporation, or any interest in a firm
or partnership;
(6) Has travelled abroad, except children below eighteen

years of age:
(7) Has filed a certificate of candidacy for any public office

except barrio officials and municipal councilors;
(8) Is engaged in trade or commerce.
2. Any person liable to pay an income tax who failed to file

the corresponding income tax return and pay the tax due thereon,
may now voluntarily file the said return or return or returns exempt
from any liability or increments incident to the non-filing of the
return or non-payment of the tax due thereon, provided he pays
388
TEN PESOS for each year that no return was filed plus an amount
equal to twenty-per-centum of the tax due on the return or returns
voluntarily filed.
3. The amount or amounts payable, as provided above,

must be paid in full upon filing of the income tax return or returns
which shall not be later than October 31, 1973, and such payment
shall entitle the person making the return to all the immunities
provided in Presidential Decree No. 23, as amended.
4. Persons who availed of the amnesty provided under

Presidential Decree No. 23, as amended, or those who availed or
may avail of the amnesty under Presidential Decree No. 201 are not
subject to this Decree.
5. The Secretary of Finance, upon the recommendation of

the Commissioner of Internal Revenue, shall promulgate the rules
and regulations to implement this Decree.
Done in the City of Manila, this 16th day of June, in the year
of Our Lord, nineteen hundred and seventy-three.

By the President:

Assistant Executive Secretary
389
ENLARGING THE COVERAGE OF THE TAX AMNESTY ON

PREVIOUSLY UNTAXED INCOME AND/OR WEALTH,
SUBJECT TO CERTAIN CONDITIONS
WHEREAS, the period granted under Presidential Decree

No. 23, as amended, proclaiming a tax amnesty on the disclosure of
previously untaxed income and/or wealth acquired in 1971 and prior
years and Presidential Decree No. 157 proclaiming a tax amnesty
on undeclared income and/or wealth acquired in 1972 have already
expired;
WHEREAS, notwithstanding the unprecedented response of

taxpayers who availed themselves of the tax amnesty provided by
Presidential Decree No. 23, there still remain considerable number
of taxpayers willing to avail of the aforesaid tax amnesty or make
amendments on their tax amnesty returns;
WHEREAS, it is the avowed policy of the government to

afford every opportunity for all taxpayers to come within the fold of
the reforms under the New Society;

of the Philippines and pursuant to Proclamation No. 1081, dated
22, 1972, as amended in order to enlarge the coverage of the tax
amnesty on previously untaxed income and/or wealth, subject to
certain conditions, do hereby order and decree that:
1. A tax amnesty is hereby granted to any person, natural

or juridical, who for any reason whatsoever failed to avail of
Presidential Decree No. 23, and Presidential Decree No. 157; or, in
so availing of the said Presidential Decrees failed to include all that
were required to be declared therein if he now voluntarily discloses
under this decree all his previously untaxed income and/or wealth
390
such as earnings, receipts, gifts, bequests or any other acquisitions

from any source whatsoever which are or were previously taxable
under the National Internal Revenue Code, realized here or abroad
by condoning all internal revenue taxes including the increments
or penalties on account of non-payment as well as all civil, criminal
or administrative liabilities, under the National Internal Revenue
Code, the Revised Penal Code, the Anti-Graft and Corrupt Practices
Act, the Revised Administrative Code, the Civil Service Laws and
Regulations, laws and regulations on Immigration and Deportation,
or any other applicable law or proclamation, as it is hereby condoned,
provided a tax of fifteen (15%) percentum on such previously
untaxed income and/or wealth is imposed subject to the following
conditions:
a. Such previously untaxed income and/or wealth must

have been earned or realized prior to 1973, except the following:
(1) Capital gains transactions where the taxpayer has

availed of Presidential Decree No. 16, as amended, but has not
complied with the conditions thereof;
(2) Tax liabilities with or without assessments, on

withholding tax at source provided under Sections 53 and 54 of the
National Internal Revenue Code, as amended;
(3) Tax liabilities with assessment notices issued as of

December 31, 1973;
(4) Tax cases which are the subject of a valid information

under Republic Act No. 2338 as of December 31, 1973; and
(5) Property transferred by reason of death or by donation

during the year 1972.
b. The taxpayer must file a return with the Commissioner

of Internal Revenue on or before June 28, 1974, showing such
previously untaxed income and/or wealth in the prescribed BIR
Form, which shall be kept confidential and shall not be subject to
verification and/or investigation.
391
c. If such previously untaxed income and/or wealth or

a part thereof, consist of cash hoarded abroad, such cash must
be repatriated and deposited with any bank in the Philippines or
invested in any of the following within six (6) months from time of
such disclosure:
1) Government bonds;
2) Government securities;
3) Government debentures;
4) Bonds, notes, or other commercial papers issued by
domestic corporations; or
5) Any productive enterprise.
2. The tax imposed under paragraph 1 hereof shall be paid

within the following period:
a. If the amount due does not exceed P10,000.00 the tax

must be paid at the time of the filing of the return but not later than
June 28, 1974;
b. If the amount due, exceeds P10,000.00 but does not

exceed P50,000.00, the tax may be paid in two equal installments,
the first installment to be paid upon the filing of the return but not
later than June 28, 1974, and the second installment shall be paid
on or before September 30, 1974;
c. If the amount due exceeds P50,000.00 but does not

exceed P300,000.00, the tax may be paid in three equal installments,
according to the following schedule:
(1) The first installment shall be paid upon the filing of the
return but not later than June 28, 1974;
(2) The second installment shall be paid on or before

September 30, 1974;
(3) The third installment shall be paid on or before December

31, 1974.
392
d. In meritorious cases and where the amount exceeds

P300,000.00, the Commissioner of Internal Revenue may grant
extension of time for the payment of the tax in equal installments
but the first installment must be paid at the time of the filing of the
return, but not later than June 28, 1974 and the last installment
not later than May 31, 1975.
e. If any installment payment is not paid on the due date of

said installment, there shall be collected as part of the tax interest
upon such unpaid amount at the rate of 14% per annum from the
due date of the installment to the date of payment, which must be
made not later than three (3) months from the due date of such
installment, otherwise the entire amount including all unpaid
installments shall automatically be due on such date and failure
to pay the same within thirty (30) days shall render the amnesty
granted herein null and void.
3. After the tax imposed under this Decree shall have been
paid, the taxpayer shall not be subject to any investigation, whether
civil, criminal or administrative insofar as such previously untaxed
income and/or wealth is concerned and shall not be used as evidence
against, or to the prejudice of, the declarant in any proceeding
before any court of law or body, whether judicial, quasi-judicial or
administrative in which he is a defendant or respondent, and such
declaration shall not be examined, inquired or looked into by any
person, government official, bureau or office. It shall be unlawful
for any person having knowledge of such declaration to disclose any
information relative to such declaration and any violation hereof
shall subject the offender to an imprisonment of not more than five
(5) years.
Any government official or employee who would inquire,

question or attempt to inquire into the tax amnesty return filed
by any taxpayer pursuant to this Decree shall be guilty of grave
misconduct for which he may be summarily dismissed from the
service.
393
4. The Secretary of Finance, upon recommendation of

the Commissioner of Internal Revenue, shall promulgate the
implementing regulations of this Decree.
Done in the City of Manila, this 9th day of January in the

year of Our Lord, nineteen hundred and seventy-four.

By the President:

394
REQUIRING THE SUBMISSION OF STATEMENT OF ASSETS,

LIABILITIES AND NET WORTH
WHEREAS, there is an urgent need to compile and collate

statistical data on property ownership to determine the overall
assets of the country;
WHEREAS, there is a necessity to establish a data bank for

purposes of economic development planning and judicious allocation
of natural resources and capital;

President of the Philippines, by virtue of the powers in me vested
by the Constitution as Commander-in-Chief of the Armed Forces
of the Philippines, and pursuant to Proclamation No. 1081, dated
22, 1972, as amended, whereby I have assumed direction of the
operations of the entire government, do hereby order and decree:
SECTION 1. Who must file. - Any provision of existing laws

to the contrary notwithstanding, all persons, whether natural or
juridical, having gross assets of P50,000 or more, as of December
31, 1973, regardless of the net worth, shall file a sworn statement of
assets, liabilities and net worth.
SEC. 2. When and where to file. - The statement of assets,

liabilities and net worth in the form prescribed shall be filed on
or before September 30, 1974 with the Commissioner of Internal
Revenue, Regional Director, Revenue District Officer, Collection
Agent or the Municipal Treasurer who has been designated as
collection officer of the Bureau of Internal Revenue, where the
taxpayer has his/its place of business or his/its legal residence.
If there is no office or place of business in the Philippines or if
there be no legal residence, the statement must be filed with the
Commissioner of Internal Revenue in Manila.
395
The statement of assets, liabilities and net worth as of

December 31, 1973 required to be filed by Republic Act No. 3019 and
other laws shall likewise be filed on or before September 30, 1974
instead of the due dates for filing provided for in the said Republic
Acts. Subsequent statement shall be filed in accordance with the
provisions of the said laws.
SEC. 3. Exemptions from filing. - The following are not

required to file statement of assets, liabilities and net worth:
a. An individual, the total gross value of whose assets does

not exceed P50,000.00;
b. Diplomatic or consular representatives and officers of

foreign governments;
c. Members of the Armed Forces of the US government in

the active service who are stationed in the Philippines; and
d. Officials and officers, who are not citizens of the

Philippines, of multi-national corporations or of agencies of the
United Nations or foreign or international regional organizations
established in the Philippines.
SEC. 4. Definitions. - (a) The term “person” means an

individual, trust, estate, corporation, or a duly registered general
partnership, more specifically detailed as follows:
1. Citizens of the Philippines whether residing here or

abroad;
2. Resident aliens;
3. Nonresident aliens, whether or not engaged in trade or

business in the Philippines, with respect to properties of whatever
kind and nature situated in the Philippines;
4. Domestic corporations no matter how created or

organized and for whatever purpose;
396
5. Resident foreign corporations;
6. Nonresident foreign corporations engaged in trade or

business in the Philippines or nonresident foreign corporations
having properties of whatever kind or nature situated in the
Philippines;
7. General professional partnerships and duly registered

general co-partnerships; and
8. Estates and trusts.
(b) The term “net worth” is the difference between total

assets and total liabilities.
SEC. 5. Contents of Statement. - The statement shall contain

all the assets of the person, whether real or personal, and whether
used in business or not. It shall also include those assets declared and
included under Presidential Decrees Nos. 23, 157, 213, and 370.
The liabilities shall include all known debts, which are

legitimate and enforceable obligations, whether secured or
unsecured, and whether incurred or not in trade or business.
SEC. 6. Valuation. - (a) Assets. – (1) Real properties. - In

the case of real properties, the cost of acquisition and valuation
estimated by the person and contained in the statement filed under
Presidential Decree No. 76 shall be included in the statement.
However, for the purpose of computing the gross assets and net
worth, the cost of acquisition shall be considered.
(2) Personal Properties. - In the case of personal properties,

the cost of acquisition must be the amount reported in the statement;
if used in trade or business, the depreciated value as of December
31, 1973 and as shown by his books of accounts shall be reported.
(b) Liabilities. - Only legitimate and enforceable obligations

reducible in sums of money and existing as of December 31, 1973
shall be included in the statement.
397
SEC. 7. Nature of Declaration. - (a) The statement

shall contain a declaration that the taxpayer or his authorized
representative made it under penalties or perjury.
(b) Any declaration on the statement shall not give rise to

any liability to any tax, national or local or to any liability under
the Revised Administrative Code, the Revised Penal Code, the Anti-
Graft and Corrupt Practices Act, the law or laws on immigration,
naturalization or deportation, the National Internal Revenue Code,
nor to any law, proclamation or decree applicable thereto. However,
the statement of assets, liabilities and net worth, for tax purposes
in the future, shall be considered as his true and accurate net worth
as of December 31, 1973.
SEC. 8. Unlawful divulgence of information. - (a) No

information in the statement herein required shall be published
except in the form of tabulations and summaries having no reference
to the person.
(b) It shall be unlawful for any officer or employee of the

Bureau of Internal Revenue or any government entity having
knowledge of such declaration of assets, liabilities and net worth to
disclose to any person any information relative to such declaration,
except as provided in Section 7 (b) and any violation hereof shall
subject such offender to a fine in the amount of not less than Five
thousand pesos or imprisonment for not less than two years, or both,
and shall be summarily dismissed from the service for cause.
SEC. 9. Penalties for Failure to File Statement or Rendering

False or Fraudulent Statement. - Any person required to file the
statement under this decree who knowingly makes a false declaration
or who deliberately fails to comply with any of the provisions hereof
shall, upon conviction, pay a fine of not less than Five Thousand
Pesos and imprisonment of not less than two years.
If the offense is committed by a juridical person, the Manager

or person in charge of the management of the business or affairs
thereof shall be responsible therefor and, upon conviction, shall pay
398
a fine of not less than Five Thousand Pesos and imprisonment of not
less than two years.
SEC. 10. Rules and Regulations. - The Secretary of Finance

shall issue the necessary rules and regulations to implement this
Decree, upon recommendation by the Commissioner of Internal
Revenue.
SEC. 11. Effectivity. - This Decree shall take effect

immediately.
Done in the City of Manila, this 21st day of January in the


By the President:

399
AMENDING CERTAIN SECTIONS OF PRESIDENTIAL DECREE

NO. 379 BY ENLARGING THE COVERAGE OF THE
SAME
WHEREAS, there is need for a more accurate compilation of

statistical data for the establishment of the data bank envisioned in
Presidential Decree No. 379;
WHEREAS, while the government stands firm and resolute

on the immunities guaranteed under Presidential Decrees Nos. 23,
157, 213 and 370, it, nevertheless, requires a truthful declaration of
assets, liabilities and net worth under Presidential Decree No. 379.

President of the Philippines, by virtue of the powers in me vested by
the Constitution, do hereby decree and order:
SECTION 1. That Section 1 of Presidential Decree No. 379

“SECTION 1. Who must file. - Any provision of existing laws

to the contrary notwithstanding, all persons, whether natural or
juridical, having gross assets of P50,000 or more, as of December 31,
1973, regardless of the net worth, shall file a statement of assets,
liabilities and net worth as of the said date.
The statement of assets and liabilities to be filed by public

officers under this Decree shall be considered sufficient compliance
with the requirements of Republic Act 3019 insofar as the statement
of assets, liabilities and net worth as of December 31, 1973 required
to be filed on or before January 31, 1974 is concerned, Provided,
that the public officer shall furnish the head of his office two signed
carbon copies of such statement in the same manner as required
by Republic Act 3019; Provided, further, that the subsequent
statements required to be filed by public officers under Section 7
of Republic Act 3019 shall be governed by the provisions of said
400
law; Provided, still further, that a new appointee to a public office

or an employee retiring, resigning, or separated from the service
on or before September 30, 1974 shall file the statement required
by Section 7 of Republic Act 3019; and Provided, finally that public
officers shall file the statement required by this Decree regardless
of the amount of their gross assets.”
SEC. 2. That Section 2 of Presidential Decree No. 379 is

“SEC. 2. When and where to file. - The statement of assets,

liabilities and net worth in the form prescribed shall be filed on
or before September 30, 1974 with the Commissioner of Internal
Revenue, Regional Director, Revenue District Officer, Collection
Agent or the Municipal Treasurer who has been designated as
collection officer of the Bureau of Internal Revenue, where the
taxpayer has his/its place of business or his/its legal residence.
If there is no office or place of business in the Philippines or if
there be no legal residence, the statement must be filed with the
Commissioner of Internal Revenue in Manila.”

“SEC. 3. Exemption from filing. - The following are not

required to file:
(a) An individual whose total gross assets is less than fifty

thousand pesos (P50,000.00), except public officers who are required
to file the statement irrespective of the total value of gross assets;
(b) Diplomatic or consular representatives and officers of

foreign governments;
(c) Members of the Armed Forces of the United States

government in the active service who are stationed in the Philippines;
and
401
(d) Officials and officers, who are not citizens of the

Philippines, of multi-national corporations or of agencies of the
United Nations or foreign or international regional organizations
established in the Philippines.”

“SEC. 5. Contents of Statements. - The statement shall

contain all the assets of the person, whether real or personal, and
whether used in business or not. It shall also include those assets
declared and included under Presidential Decree Nos. 23, 52, 53,
157, 213, and 370.
The liabilities shall include all known debts, which are

legitimate and enforceable obligations, whether secured or
unsecured, and whether incurred or not in trade or business.”

“SEC. 6. Valuation. - (a) Assets. - (1) Real Properties. - In the

case of real properties, the cost of acquisition shall be considered for
the purpose of computing the gross assets and net worth. However,
the statement shall also include the value of such assets contained
in the statement filed under Presidential Decree No. 76.
(2) Personal Properties. - In the case of personal properties,

the cost of acquisition must be the amount reported in the statement;
if used in trade or business, the depreciated value as of December
31, 1973 shall be included in the statement.
(3) Properties acquired by Gratuitous Title. - In the case of

property, whether real or personal, acquired by gratuitous title, the
cost thereof shall be deemed to be the fair market value at the time
of such acquisition or the value on which the transfer taxes due on
the transmission of the property were computed and paid;
402
(b) Liabilities. - Only legitimate and enforceable obligations

reducible in sums of money and existing as of December 31, 1973
shall be included in the statement.”
SEC. 6. That Section 7 of the Presidential Decree No. 379 is

hereby revoked.

“SEC. 8. Unlawful divulgence of information. - (a) No

information in the statement herein required shall be published
except in the form of tabulations and summaries having no reference
to the person.
(b) It shall be unlawful for any officer or employee of the

Bureau of Internal Revenue or any government entity having
knowledge of such declaration of assets, liabilities and net worth to
disclose to any person any information relative to such declaration
and any violation hereof shall subject such offender to a fine in the
amount of not less than five thousand pesos or imprisonment for not
less than two years, or both, and shall be summarily dismissed from
the service for cause.”
SEC. 8. All laws, rules and regulations which are inconsistent

herewith are hereby repealed, modified and/or amended accordingly.
SEC. 9. This Decree shall take effect immediately.
DONE in the City of Manila, this 9th day of March, in the


By the President:

Executive Secretary
403
FURTHER AMENDING PARAGRAPH 7 OF PRESIDENTIAL

DECREE NO. 76 DATED DECEMBER 6, 1972 REQUIRING
ALL PERSONS, NATURAL OR JURIDICAL OWNING
OR ADMINISTERING REAL PROPERTY, INCLUDING
THE IMPROVEMENTS THEREON, TO FILE SWORN
STATEMENT OF THE TRUE VALUE OF SUCH PROPERTY,
AS AMENDED BY PRESIDENTIAL DECREE NO. 261
DATED AUGUST 2, 1973, AND FURTHER AMENDED BY
PRESIDENTIAL DECREE NO. 304 DATED OCTOBER 2,
1973
WHEREAS, in order to enable the Central Board of

Assessment Appeals to expeditiously decide appeals from the
decisions of the Provincial or City Board of Assessment Appeals
involving contested assessments of real properties, the necessary
complement of qualified and competent personnel should be provided
therefor;
WHEREAS, the anticipated volume of such appealed

decisions will require a reasonable statutory period for the Board to
judiciously decide the same; and
WHEREAS, there is an urgent need to adequately fund the

expenses of the Central Board of Assessment Appeals incidental to
the discharge of its functions;

under the Constitution, do hereby order and decree the following as
part of the law of the land:
SECTION 1. Paragraph 7 of Presidential Decree No. 76

dated December 6, 1972 is hereby amended to read as follows: “. . .
The Provincial or City Board of Assessment Appeals shall decide the
appeal within one hundred twenty days from receipt thereof. The
Decision rendered must be based on substantial evidence presented
404
at the hearing or at least contained in the record and disclosed to

the parties affected or such relevant evidence as a reasonable mind
might accept as adequate to support a conclusion. The owner or
administrator of the property or the assessor who is not satisfied
with the decision of the Board of Assessment Appeals, may, within
thirty days after receipt of the decision of the Board, appeal to the
Central Board, Assessment Appeals, composed of the Secretary of
Finance, as Chairman, the Secretary of Justice and the Secretary
of Local Government and Community Development, as members,
whose decision shall be final.” The Central Board of Assessment
Appeals shall promulgate rules and regulations governing the
procedure in such appeals.
However, an appeal shall not suspend the collection of the

corresponding realty tax as assessed by the Provincial or City Assessor
which shall be adjusted to conform with the decision on appeal.
To insure expeditious disposition of all cases involving

contested assessments brought on appeal to the Central Board
of Assessment Appeals, there is hereby created a Board of
Commissioners and Staff to assist the Central Board of Assessment
Appeals, which shall be composed of the following:
POSITION ANNUAL SALARY
1. Central Board Chief Hearing Commissioner

at P17,400.00 per annum .........................P17,400.00
2. Four Central Board Hearing Commissioner

at P16,200.00 per annum. ........................ 64,800.00
3. Central Board Secretary at P9,600.00

per annum ................................................ 9,600.00
4. Four Central Board Stenographers at

P6,600.00 per annum.................................. 26,400.00
5. Three Central Board Docket and Filing

Clerks at P4,800.00 per annum .............. 14,400.00
405
and such other positions as the Central Board may deem necessary
which shall thereafter be included in the appropriation of the
Department of Finance in the corresponding General Appropriations
Decree.
Any provision of the law to the contrary notwithstanding,

appointments to the positions of the Central Board Chief Hearing
Commissioner, Central Board Hearing Commissioners and Central
Board Secretary shall be exempt from the requirements and
restrictions of the Civil Service Law, rules and regulation as well
as those pertaining to the position-item classification and salary
standardization, provided, that any government retiree may be
appointed to the Board of Commissioners created herein and upon
his appointment, he shall not be required to reimburse or refund
any gratuity received from the government nor shall any pension or
annuity to which he is entitled be suspended or reduced on account
of his employment. The members of the Board of Commissioners
shall serve until they reach the age of seventy unless sooner removed
for cause as provided by law. The Board of Commissioners shall be
members of the bar or civil or mechanical engineers, with at least
five year supervisory and/or field experience in assessment work.
The Secretary of Finance, as Chairman of the Central Board

of Assessment Appeals, shall appoint the members of the Board of
Commissioners and Staff.
The sum of one hundred twenty-five thousand pesos for the

period from April 1, 1974 to June 30, 1974 is hereby appropriated
from the General Fund in the National Treasury, not otherwise
appropriated, to finance the operations of the Central Board of
Assessment Appeals. For every fiscal year thereafter, such sums
as may be necessary for the operations of the said Board shall be
included in the appropriation of the Department of Finance in the
corresponding General Appropriations Decree.
406
Done in the City of Manila, this 8th day of April, in the year
of Our Lord, Nineteen Hundred and Seventy-four.

By the President:

Executive Secretary
407
PROVIDING FOR AN IMPROVED SYSTEM OF ACQUISITION,

UTILIZATION, CARE, CUSTODY AND DISPOSAL OF
SUPPLIES IN THE LOCAL GOVERNMENTS, AMENDING
FOR THE PURPOSE SECTION THREE OF REPUBLIC ACT
NUMBERED TWENTY-TWO HUNDRED SIXTY-FOUR,
OTHERWISE KNOWN AS “THE LOCAL AUTONOMY ACT
OF 1959”, AND OTHER RELATED LAWS
WHEREAS, the availability at all times of supplies, materials

and equipment is crucial to the efficient discharge of governmental
functions;
WHEREAS, the provisions of existing laws need to be revised

and updated to make them more responsive to the growing supply
requirements of local development projects;
WHEREAS, it has become imperative to install administrative

innovations that will make the procurement operations of local
governments cheaper, faster, and more effective and which at the
same time will induce the proper maintenance, use and conservation
of supplies, materials and equipment at the local levels;

President of the Philippines, by virtue of the powers vested in me by
the Constitution, do hereby decree, order and make as part of the
law of the land the following amendments to Republic Act No. 2264
and other related laws:
SECTION 1. Scope. –This Decree shall govern the

procurement, care, utilization and disposal of supplies by the local
governments and the other aspects of supply management at the
local levels.
408
XXX XXX XXX
SEC. 20. Primary and secondary accountability for government

property. –Every head of department or office of a province, city
or municipality shall be primarily accountable for all government
property assigned or issued to his department or office. The person
of persons entrusted with the possession or custody of government
property under the accountability of any head of department or
office shall be immediately accountable to such officer.
The head of department or office primarily accountable for

government property may require any person in possession of the
property or having custody and control thereof under him to keep
such records and make such reports as may be necessary for his own
information and protection.
Buildings and other physical structures shall be made under

the accountability and responsibility of the local treasurer.
Every officer primarily accountable for government property

shall keep a complete record of all property under his charge and
render his accounts therefor semi-annually to the treasurer of the
local government unit concerned.
SEC. 21. Responsibility for the proper use and care of

government property. –The person in actual physical possession
of government property or entrusted with its custody and control
shall be responsible for the proper use and care of the property and
he shall exercise due diligence in the utilization and safe-keeping
thereof.
SEC. 22. Measure of liability of persons accountable for

government property. – The person immediately accountable for
the government property shall be liable for its money value in case
of the illegal, improper or unauthorized use of the property, or
409
misapplication thereof, by himself or any other person for whose

acts he may be responsible, and shall be liable for all loss, damage,
or deterioration occasioned by negligence in the keeping or use of
such property unless it is shown or proved that he has exercised
due diligence and care in the utilization and safekeeping of the
property.
No accountable person shall be relieved from liability by

reason of his having acted under the direction of a superior officer in
using property with which he is chargeable; but the officer directing
any illegal, unauthorized or improper use of property shall first be
required to answer therefor.
In case of loss, damage or deterioration of government

property arising from, or attributable to, negligence in security, the
head of the security agency shall be held liable therefor.
XXX XXX XXX
SEC. 27. Transitory provisions. — Upon approval of this

Decree all government property issued or assigned to the different
offices or departments of local government shall be deemed ipso facto
transferred to the primary accountability of the office or department
head concerned, and within ninety days thereafter the said transfer
shall be accomplished and reflected in the manner and official form
prescribed for the purpose.
SEC. 28. Implementing rules and regulations. – The

Secretary of Finance jointly with the Secretary of General Services
shall promulgate rules and regulations to effectivity implement
the provisions of this decree, including requirements as to testing,
inspection and standardization which rules and regulations shall be
deemed part of this decree. Said rules and regulations shall not be
effective without the concurrence of the Commission on Audit.
410
SEC. 29. Repealing clause. – All acts, laws, or decrees or

parts of acts, laws or decrees inconsistent with the provisions of this
Decree are hereby revoked, repealed or modified accordingly.
SEC. 30. Effectivity. – This Decree shall take effect upon its
approval.
DONE in the City of Manila, this 2nd day of August, in the

year of Our Lord Nineteen Hundred and Seventy-four.

By the President:

Executive Secretary
411
AMENDING PRESIDENTIAL DECREE NO. 379 ENTITLED

“REQUIRING THE SUBMISSION OF ASSETS, LIABILITIES
AND NET WORTH”

by virtue of the powers in me vested by the Constitution, do hereby
amend Section 9 of Presidential Decree No. 379 dated January 21,
1974, to read as follows:
“SEC. 9. Penalties for failure to File Statement or Rendering

False or Fraudulent Statement. – Any person required to file the
statement under this decree who knowingly makes a false declaration
or who deliberately fails to comply with any of the provisions hereof
shall, upon conviction, pay a fine of not more than Five Thousand
Pesos and imprisonment of not more than two years.
“If the offense is committed by a juridical person, the Manager

or person in charge of the management of the business or affairs
thereof shall be responsible therefor and, upon conviction, shall pay
a fine of not more than Five Thousand Pesos and imprisonment of
not more than two years.”
DONE in the City of Manila, this 16th day of September, in

the year of Our Lord, nineteen hundred and seventy-four.

By the President:

Executive Secretary
412
EXTENDING THE PERIOD OF FILING OF THE STATEMENT

OF ASSETS, LIABILITIES AND NET WORTH AND
ALLOWING TAXPAYERS WHO HAVE NOT AVAILED
OF PRESIDENTIAL DECREE NO. 23, AS AMENDED,
TO AVAIL OF PRESIDENTIAL DECREE NO. 370, AS
AMENDED
WHEREAS, the period within which to file the statement

of assets, liabilities and net worth prescribed under Presidential
Decree No. 379, as amended by Presidential Decree No. 417, is
expiring September 30, 1974;
WHEREAS, there are still many persons who have not filed
the required statement on account of the attendant difficulties and
technical aspects involved in the preparation of the statement in
spite of the massive nation-wide information campaign launched
by the Bureau of Internal Revenue since the promulgation of the
Decree;
WHEREAS, there are still a considerable number of

taxpayers who have not availed of tax amnesty but who, in order
to be able to file a true and accurate statement of assets, liabilities
and net worth, are now desirous of availing of the amnesty provided
under Presidential Decree No. 370;

SECTION 1. The last day for the filing of statement of assets,
liabilities and net worth as of December 31, 1973 required under
Presidential Decree No. 379, as amended, is hereby extended up to
November 29, 1974;
SEC. 2. The following public officers are not required to file

the statement if the gross value of their assets is less than Fifty
Thousand Pesos (P50,000).
413
(1) Barangay Chairman and other Barangay officials;
(2) Classroom teachers of public schools;
(3) Laborers, messengers, janitors, drivers, mail carriers

and minimum wage earners in the government service;
(4) Temporary and casual employees of the government;

and
(5) Barrio officials.
provided that in the case of messengers, janitors, drivers,

mail carriers and minimum wage earners, herein excepted, they
are required to file their statement of assets and liabilities in the
manner and form prescribed under Republic Act 3019, not later
than November 29, 1974.
SEC. 3. Any person who still has any undeclared untaxed

income and/or wealth acquired in 1972 and/or prior years who would
qualify to avail of previous tax amnesties granted under Presidential
Decree Nos. 23, 157, 213 and 370 may, under this Decree, avail of
the tax amnesty under Presidential Decree No. 370, the effectivity
of which is hereby extended up to November 29, 1974;
SEC. 4. Any person required to file the statement under

Presidential Decree No. 379, as amended, who knowingly makes a
false declaration or who deliberately fails to file or to comply with
any of the provisions thereof shall upon conviction pay a fine of
not less than one thousand pesos, but not more than five thousand
pesos, and imprisonment of not less than six months, but not more
than two years.
However, failure to file the statement not due to willful

neglect, shall be punishable by a fine of not more than one thousand
(P1,000.00) pesos and imprisonment of not more than six months.
414
SEC. 5. Any law, decree, rules and/or regulations contrary to

or inconsistent herewith are deemed repealed, modified or amended
accordingly.
SEC. 6. The Secretary of Finance, upon recommendation

of the Commissioner of Internal Revenue, shall issue rules and
regulations to implement this Decree.
SEC. 7. This Decree shall take effect immediately upon

approval.
DONE in the City of Manila, this 30th day of September, in

the year of Our Lord, nineteen hundred and seventy-four.

By the President:

415
GRANTING AN ULTIMATE AMNESTY ON UNTAXED INCOME

AND/OR WEALTH EARNED OR ACQUIRED IN 1973 AND
PRIOR YEARS AND IMMUNITY FROM INVESTIGATION
OF THE STATEMENT OF ASSETS, LIABILITIES, AND
NET WORTH REQUIRED BY PRESIDENTIAL DECREE
NO. 379, AS AMENDED
WHEREAS, consistent with its policy of persuasion and

conciliation aimed at promoting national solidarity and cooperation,
the government has launched a tax amnesty program whose main
thrust has been to achieve reformation and change in the attitude
and sense of values of errant taxpayers, instead of taking punitive
action against them;
WHEREAS, to place the tax amnesty program in its proper

perspective, the government is willing to give to all taxpayers
concerned to make a true and faithful disclosure of their untaxed
income and/or wealth for 1973 and prior years and opportunity to
adjust their statements of assets, liabilities, and net worth, thereby
earning the full benefits and immunities of tax amnesty; and
WHEREAS, the government, in requiring truthful disclosure

of untaxed income as a token of reformation, is likewise willing
to grant immunity from investigation of the statement of assets,
liabilities, and net worth filed under Presidential Decree No. 379,
as amended, by taxpayers who avail of tax amnesty for 1973 and
prior years.

the Constitution, do hereby order and decree an ultimate and final
tax amnesty on untaxed income and/or wealth, as follows:
SECTION 1. A tax amnesty is hereby granted to any person,

natural or juridical, who has not availed of previous amnesty decrees
on untaxed income and/or wealth, or having availed thereof, did not
416
make a full and complete disclosure of his untaxed income and/or

wealth, or who failed to declare for taxation purposes his true and
correct income or receipts earned or received in 1973, which were
taxable under the National Internal Revenue Code, if such person
voluntarily renders a return of all untaxed income and/or wealth
for 1973 and prior years and pays an amount equivalent to twenty
(20%) per centum of such untaxed income and/or wealth.
SEC. 2. The provisions of this Decree shall apply to untaxed

income and/or wealth earned, received, or acquired in 1973 and
prior years, except the following:
a. Tax liabilities, with or without assessments, on

withholding tax at source provided in sections 53 and 54 of the
National Internal Revenue Code, as amended;
b. Tax liabilities with assessment notices issued on or

before the effectivity of this Decree;
c. Criminal cases involving violations of internal revenue

laws already filed in court or with the Fiscal’s Office on or before the
effectivity of this Decree;
d. Property transferred by reason of death or by donation

or sale, exchange, or other transfers for less than adequate
consideration in money or money’s worth during the years 1972 and
1973; and
e. Tax cases pending investigation by the Bureau of

Internal Revenue by reason of a valid information under Republic
Act No. 2338 filed after July 1, 1974 and before the effectivity of this
Decree:
SEC. 3. The tax amnesty return shall be filed in the prescribed

BIR Form with the Office of the Commissioner of Internal Revenue,
Regional Director or Revenue District Officer on or before February
28, 1975, showing the amount of untaxed income and/or wealth for
1973 and prior years. Together with the tax amnesty return, an
417
amended statement of assets, liabilities and net worth which shall

include the untaxed income and/or wealth correspondingly indicated
in the particular kind of asset(s) should be filed. In no case shall the
untaxed income or wealth disclosed for amnesty purposes be less
than the difference between the total value of assets as adjusted
and the value of assets per original statement.
SEC. 4. Any person who had taxed assets amounting to less

than P50,000.00 as of December 31, 1973, and who also had as of
the date hidden income or untaxed wealth, may avail of the tax
amnesty by filing a return in the prescribed BIR Form: Provided,
That when the previously taxed assets and the undisclosed untaxed
income or wealth would amount to a total of P50,000.00 or more, the
statement of assets, liabilities and net worth required under P.D.
379, as amended, shall likewise be filed.
SEC. 5. The amnesty tax imposed herein shall be paid as

follows:
a. If the amount due does not exceed P5,000.00, the tax

must be paid at the time of the filing of the return, but not later
than February 28, 1975;
b. If the amount due exceeds P5,000.00 but is not more

than P50,000.00, the tax may be paid in two equal installments, the
first installment to be paid upon the filing of the return but not later
than February 28, 1975, and the second installment on or before
May 15, 1975;
c. If the amount due exceeds P50,000.00, the tax may be

paid in three equal installments, to wit:
1) The first installment shall be paid upon the filing of the

return but not later than February 28, 1975;
2) The second installment shall be paid on or before May

15, 1975; and
418
3) The third installment shall be paid on or before August

15, 1975.
d. In highly meritorious cases and where the amount

due exceeds P300,000.00, the Commissioner of Internal Revenue
may grant extension of time for the payment of the tax in equal
installments but the first installment must be paid at the time of
the filing of the return but not less than February 28, 1975, and
provided that the extended period of payment by installments does
not exceed two years from date the last installment is originally
due.
e. If any installment is not paid on the due date thereof,

there shall be collected as part of the tax interests upon such
unpaid amount at the rate of 14% per annum from the due date of
the installment to the date of payment, which must be made not
later than three (3) months from the due date of such installment,
otherwise, the entire amount including all unpaid installments
shall automatically become due on such date, and failure to pay
the same within thirty (30) days shall render the amnesty granted
herein null and void.
SEC. 6. Upon payment of the tax prescribed in Section 1

and in the manner provided in Section 5, both of this Decree, the
taxpayer shall be relieved from any liability to any internal revenue
tax otherwise due and payable on such untaxed income and/or
wealth, including any increment thereto and penalty on account of
non-payment, as well as from all civil, criminal, or administrative
liabilities arising from or incident to the filing of the tax amnesty
return under the National Internal Revenue Code, Revised Penal
Code, Anti-Graft and Corrupt Practices Act, Revised Administrative
Code, Civil Service Laws and Regulations, Immigration and
Deportation laws and regulations, and any other law, decree or
proclamation.
Furthermore, the taxpayer shall not be subject to any

investigation, whether civil, criminal or administrative insofar as
such previously untaxed income and/or wealth is concerned and
419
the taxpayer’s tax amnesty return shall not be used as evidence

against, or to the prejudice of, the declarant in any proceeding
before any court of law or body, whether judicial, quasi-judicial or
administrative, in which he is a defendant or respondent, and such
declaration shall not be examined, inquired or looked into by any
person, government official, bureau or office.
And, finally, his books of account and other records for 1973
and prior years shall be considered closed and shall not be subject
to any examination, except in connection with the verification of
the validity or correctness of a claim for a grant of any tax refund,
tax credit (other than refund or credit of withheld taxes on wages),
tax incentive and/or exemptions under existing laws, upon written
authority of the Commissioner of Internal Revenue.
SEC. 7. Any person who avails of the amnesty provided

in this Decree shall also enjoy the immunities and guarantees
provided in the preceding section with respect to the statement of
assets, liabilities and net worth he filed under Presidential Decree
No. 379, as amended, or to the amended statement he files pursuant
to Section 3 of this Decree, and such statement of assets, liabilities,
net worth shall likewise be given the same treatment and regard
as the amnesty return he files under this decree, except in the
determination of his future tax liabilities. For this purpose, the net
worth appearing on such statement shall be considered as his valid
and correct net worth as of January 1, 1974, and any unexplained
increase in his net worth after that date shall be presumed as taxable
income in year when such increase occurred, was established, or
discovered and in case he attributes the increase to any asset or
disposal of any asset which was not included in the statement of
assets, liabilities and net worth he filed under Presidential Decree
No. 379, as amended, he shall be presumed to have filed a fraudulent
statement and shall, upon conviction, pay a fine of not more than
Five Thousand Pesos (P5,000.00) and suffer imprisonment of not
more than five (5) years. If the taxpayer is a juridical person, the
manager or person in charge of the management of the business or
affairs thereof shall be responsible therefor and upon conviction,
shall pay a fine of not more than Five Thousand Pesos (P5,000.00)
and suffer imprisonment of not more than five (5) years.
420
SEC. 8. Except as otherwise provided in this Decree, it shall

be unlawful for any person having knowledge of the tax amnesty
return and statements of assets, liabilities, and net worth filed
pursuant to this Decree to disclose any information relative to such
return and any violation hereof shall subject the offender to a fine
in the amount of not less than Five Thousand Pesos (P5,000.00) or
imprisonment for not less than two (2) years nor more than five (5)
years or both.
Any person who would inquire, question or attempt to inquire

into the tax amnesty return and statement filed by any taxpayer
pursuant to this Decree shall be guilty of grave misconduct for
which he may summarily be dismissed from the service.
SEC. 9. Any provision of any law, decree, rule or regulation

which is inconsistent with this Decree is hereby revoked or amended
accordingly.
SEC. 10. The Secretary of Finance, upon the recommendation

of the Commissioner of Internal Revenue, shall promulgate the
implementing regulations of this Decree.
DONE in the City of Manila, this 6th day of January, in the

year of Our Lord, nineteen hundred and seventy-five.

By the President:

Executive Secretary
421
AMENDING SECTION 7 OF REPUBLIC ACT NO. 3019, AS

AMENDED, OTHERWISE KNOWN AS THE ANTI-GRAFT
AND CORRUPT PRACTICES ACT
WHEREAS, the program of reform in the government under

the New Society has been endorsed overwhelmingly by the people in
the referendum held on February 27, 1975; and
WHEREAS, as a continuing instrument of the reform

program and in consonance with the dictum that the life of a public
officer is an open book and subject to scrutiny, all government
officials and employees must account at frequent intervals their
financial position in order that they will be beyond suspicion and
reproach.

the Constitution, do hereby decree and order that

is further amended to read as follows:
“SEC. 7. Statement of assets and liabilities.— Every public

officer, within thirty days after assuming office, and within the
month of January of every year thereafter, as well as upon the
expiration of his term of office, or upon his resignation or separation
from office, shall prepare and file with the office of the corresponding
Department Head, or in the case of a Head of Department or Chief
of an independent office, with the Office of the President, a true
detailed and sworn statement of assets and liabilities, including a
statement of the amounts and sources of his income, the amounts of
his personal and family expenses and the amount of income taxes
paid for the next preceding calendar year; Provided, That public
officers assuming office less than two months before the end of the
calendar year, may file their first statement, on the following month
of January.”
422
SEC. 2. The provision of this Decree shall take effect

beginning January, 1976, for the statement pertaining to the
calendar year 1975.
DONE in the City of Manila, this 31st day of March, in the


By the President:

Executive Secretary
423
GRANTING IMMUNITY FROM PROSECUTION TO GIVERS

OF BRIBES AND OTHER GIFTS AND TO THEIR
ACCOMPLICES IN BRIBERY AND OTHER GRAFT CASES
AGAINST PUBLIC OFFICERS
WHEREAS, public office is a public trust: public officers

are but servants of the people, whom they must serve with utmost
fidelity and integrity;
WHEREAS, it has heretofore been virtually impossible to

secure the conviction and removal of dishonest public servants
owing to the lack of witnesses; the bribe or gift givers being always
reluctant to testify against the corrupt pubic officials and employees
concerned for fear of being indicted and convicted themselves of
bribery and corruption;
WHEREAS, it is better by far and more socially desirable, as

well as just, that the bribe or gift giver be granted immunity from
prosecution so that he may freely testify as to the official corruption,
than that the official who receives the bribe or gift should be allowed
to go free, insolently remaining in public office, and continuing with
his nefarious and corrupt practices, to the great detriment of the
public service and the public interest.
NOW, THEREFOR, I FERDINAND E. MARCOS, President

of the Philippines, by virtue of the powers in me vested by the
Constitution, do hereby decree and order that:
SECTION 1. Any person who voluntarily gives information

about any violation of Articles 210, 211, and 212 of the Revised
Penal Code; Republic Act Numbered Three Thousand Nineteen, as
amended; Section 345 of the Internal Revenue Code and Section
3604 of the Tariff and Customs Code and other provisions of the
said Codes penalizing abuse or dishonesty on the part of the public
officials concerned; and other laws, rules and regulations punishing
acts of graft, corruption and other forms of official abuse; and who
424
willingly testifies against any public official or employee for such

violation shall be exempt from prosecution or punishment for the
offense with reference to which his information and testimony were
given, and may plead or prove the giving of such information and
testimony in bar of such prosecution: Provided, that this immunity
may be enjoyed even in cases where the information and testimony
are given against a person who is not a public official but who is a
principal, or accomplice, or accessory in the commission of any of the
above-mentioned violations; Provided, further, that this immunity
may be enjoyed by such informant or witness notwithstanding that
he offered or gave the bribe or gift to the public official or is an
accomplice for such gift or bribe-giving; and Provided, finally, that
the following conditions concur:
1. The information must refer to consummated violations

of any of the above-mentioned provisions of law, rules and
regulations;
2. The information and testimony are necessary for the

conviction of the accused public officer;
3. Such information and testimony are not yet in the

possession of the State;
4. Such information and testimony can be corroborated on

its material points; and
5. The informant or witness has not been previously

convicted of a crime involving moral turpitude.
SEC. 2. The immunity granted hereunder shall not attaché

should it turn out subsequently that the information and/or testimony
is false and malicious or made only for the purpose of harassing,
molesting or in anyway prejudicing the public officer denounced. In
such a case, the public officer so denounced shall be entitled to any
action, civil or criminal, against said informant or witness.
425
SEC. 3. All preliminary investigations conducted by

a prosecuting fiscal, judge or committee, and all proceedings
undertaken in connection therewith, shall be strictly confidential
or private in order to protect the reputation of the official under
investigation in the event that the report proves to be unfounded or
no prima facie case is established.
SEC. 4. All acts, decrees and rules and regulations

inconsistent with the provisions of this Decree are hereby repealed
or modified accordingly.
DONE in the City of Manila, this 18th day of July, in the year
of Our Lord, nineteen hundred and seventy-five.

President
By the President:

Executive Secretary
426
PROVIDING FOR THE ORGANIZATION OF THE CIVIL SERVICE

COMMISSION IN ACCORDANCE WITH PROVISIONS OF
THE CONSTITUTION, PRESCRIBING ITS POWERS AND
FUNCTIONS AND FOR OTHER PURPOSES
WHEREAS, the Constitution provides for organization of a

Civil Service Commission which shall establish a career service and
adopt measures to promote morale, efficiency and integrity in the
government service;
WHEREAS, Presidential Decree No. 110 dated January

26, 1973 declared the Civil Service Commission envisioned in the
Constitution in existence, providing guidelines for its operation;
WHEREAS, there is need for the immediate organization of

the Civil Service Commission in order to enable it to carry out its
mission as mandated by the Constitution; and
WHEREAS, the former Civil Service Commission created

under Republic Act No. 2260, as amended, and as organized under
the Integrated Reorganization Plan may serve as the nucleus of the

ARTICLE I
TITLE
SECTION 1. This Decree shall be known as the Civil Service

Decree of the Philippines.
427
ARTICLE II
DECLARATION OF POLICY
SEC. 2. It shall be the policy of the State to insure and promote

the Constitutional mandate that appointment in the Civil Service
shall be made only according to merit and fitness, to provide within
the public service a progressive system of personnel administration,
and to adopt measures to promote morale and the highest degree
of responsibility, integrity, loyalty, efficiency, and professionalism
in the Civil Service; that the Civil Service Commission shall be
the central personnel agency to set standards and to enforce the
laws and rules governing the selection, utilization, training and
discipline of civil servants; that a public office is a public trust and
public officers shall serve with the highest degree of responsibility,
integrity, loyalty and efficiency and shall remain accountable to the
people; and that action on personnel matters shall be decentralized,
with the different departments and other offices or agencies of the
government delegating to their regional offices or other similar
units, powers and functions.
XXX XXX XXX
ARTICLE IX
DISCIPLINE
SEC. 36. Discipline: General Provisions.
(a) No officer or employee in the Civil Service shall be

suspended or dismissed except for cause as provided by law and
after due process.
(b) The following shall be grounds for disciplinary action:
1. Dishonesty;
2. Oppression;
428
3. Neglect of duty;
4. Misconduct;
5. Disgraceful and immoral conduct;
6. Being notoriously undesirable;
7. Discourtesy in the course of official duties;
8. Inefficiency and incompetence in the performance of

official duties;
9. Receiving for personal use of a fee, gift or other valuable

thing in the course of official duties or in connection therewith when
such fee, gift, or other valuable thing is given by any person in the
hope or expectation of receiving a favor or better treatment than
that accorded other persons, or committing acts punishable under
the anti-graft laws;
10. Conviction of a crime involving moral turpitude;
11. Improper or unauthorized solicitation of contributions

from subordinate employees and by teachers or school officials from
school children;
12. Violation of existing Civil Service Law and rules or

reasonable office regulations;
13. Falsification of official document;
14. Frequent unauthorized absences or tardiness in

reporting for duty, loafing or frequent unauthorized absences from
duty during regular office hours;
15. Habitual drunkenness;
16. Gambling prohibited by law;
429
17. Refusal to perform official duty or render overtime

service;
18. Disgraceful, immoral or dishonest conduct prior to

entering the service;
19. Physical or mental incapacity or disability due to immoral

or vicious habits;
20. Borrowing money by superior officers from subordinates

or lending by subordinates to superior officers;
21. Lending money at usurious rates of interest;
22. Willful failure to pay just debts or willful failure to pay

taxes due to the government;
23. Contracting loans of money or other property from

persons with whom the office of the employee concerned has business
relations;
24. Pursuit of private business, vocation or profession without

the permission required by Civil Service rules and regulations;
25. Insubordination;
26. Engaging directly or indirectly in partisan political

activities by one holding non-political office;
27. Conduct prejudicial to the best interest of the service;
28. Lobbying for personal interest or gain in legislative halls

and offices without authority;
29. Promoting the sale of tickets in behalf of private

enterprises that are not intended for charitable or public welfare
purposes and even in the latter cases if there is no prior authority;
430
30. Nepotism as defined in Section 49 of this Decree.
(c) Except when initiated by the disciplining authority, no

complaint against a civil service official or employee shall be given
due course unless the same is in writing and subscribed and sworn
to by the complainant.
(d) In meting out punishment, the same penalties shall be

imposed for similar offenses and only one penalty shall be imposed
in each case. The disciplining authority may impose the penalty of
removal from the service, transfer, demotion in rank, suspension for
not more than one year without pay, fine in an amount not exceeding
six months’ salary, or reprimand.
SEC. 37. Disciplinary Jurisdiction.
(a) The Commission shall decide upon appeal all

administrative disciplinary cases involving the imposition of a
penalty of suspension for more than thirty days, or fine in an amount
exceeding thirty days’ salary, demotion in rank or salary or transfer,
removal or dismissal from Office. A complaint may be filed directly
with the Commission by a private citizen against a government
official or employee in which case it may hear and decide the case
or it may deputize any department or agency or official or group of
officials to conduct the investigation. The results of the investigation
shall be submitted to the Commission with recommendation as to
the penalty to be imposed or other action to be taken.
(b) The heads of departments, agencies and instrumentalities,

provinces, cities and municipalities shall have jurisdiction to
investigate and decide matters involving disciplinary action against
officers and employees under their jurisdiction. Their decisions
shall be final in case the penalty imposed is suspension for not more
than thirty days or fine in an amount not exceeding thirty days’
salary. In case the decision rendered by a bureau or office head is
appealable to the Commission, the same may be initially appealed to
the department and finally to the Commission and pending appeal,
the same shall be executory except when the penalty is removal, in
431
which case the same shall be executory only after confirmation by

the department head.
(c) An investigation may be entrusted to regional director

recommendation to the chief of bureau or office or department
within the period specified in Paragraph d of the following Section.
(d) An appeal shall not stop the decision from being

executory, and in case the penalty is suspension or removal, the
respondent shall be considered as having been under the preventive
suspension during the pendency of the appeal in the event he wins
an appeal.
SEC. 38. Procedure in Administrative Cases Against Non-

Presidential Appointees.
(a) Administrative proceedings may be commenced against

a subordinate officer or employee by the head of department or
office of equivalent rank, or head of local government, or chiefs or
agencies, regional directors, or upon sworn, written complaint of
any other persons.
(b) In the case of a complaint filed by any other persons, the

complainant shall submit sworn statements covering his testimony
and those of his witnesses together with his documentary evidence.
If on the basis of such papers a prima facie case is found not to
exist, the disciplining authority shall dismiss the case. If a prima
facie case exists, he shall notify the respondent in writing, of the
charges against the latter, to which shall be attached copies of the
complaint, sworn statements and other documents submitted, and
the respondent shall be allowed not less than seventy-two hours
after receipt of the complaint to answer the charges in writing under
oath, together with supporting sworn statements and documents, in
which he shall indicate whether or not he elects a formal investigation
if his answer is not considered satisfactory. If the answer is found
satisfactory, the disciplining authority shall dismiss the case.
432
(c) Although a respondent does not request a formal

investigation, one shall nevertheless be conducted when from the
allegations of the complaint and the answer of the respondent,
including the supporting documents, the merits of the case cannot
be decided judiciously without conducting such an investigation.
(d) The investigation shall be held not earlier than five days
nor later than ten days from the date of receipt of respondent’s
answer by the disciplining authority, and shall be finished within
thirty days from the filling of the charges, unless the period is
extended by the Commission in meritorious cases. The decision
shall be rendered by the disciplining authority within thirty days
from the termination of the investigation or submission of the report
of the investigator, which report shall be submitted within fifteen
days from the conclusion of the investigation.
(e) The direct evidence for the complainant and the

respondent shall consist of the sworn statement and documents
submitted in support of the complaint or answer, as the case may
be, without prejudice to the presentation of additional evidence
deemed necessary but was unavailable at the time of the filing
of the complaint or answer, upon which the cross-examination,
by respondent and the complainant, respectively, shall be based.
Following cross-examination, there may be redirect and recross-
examination.
(f) Either party may avail himself of the services of counsel

and may require the attendance of witnesses and the production of
documentary evidence in his favor through the compulsory process
of subpoena or subpoena duces tecum.
(g) The investigation shall be conducted only for the

purpose of ascertaining the truth and without necessarily adhering
to technical rules applicable in judicial proceedings. It shall be
conducted by the disciplining authority concerned or his authorized
representative.
The phrase “any other party” shall be understood to be a

complainant other than those referred to in subsection (a) hereof.
433
SEC. 39. Appeals. (a) Appeals, where allowable, shall be

made by the party adversely affected by the decision within fifteen
days from receipt of the decision unless a petition for reconsideration
is seasonably filed, which petition shall be decided within fifteen
days. Notice of the appeal shall be filed with the disciplining office,
which shall forward the records of the case, together with the notice
of appeal, to the appellate authority within fifteen days from filing
of the notice of appeal, with its comment, if any. The notice of appeal
shall specifically state the date of the decision appealed from and
the date of receipt thereof. It shall also specifically set forth clearly
the grounds relied upon for excepting from the decision.
(b) A petition for reconsideration shall be based only on

any of the following grounds: (1) new evidence has been discovered
which materially affects the decision rendered; (2) the decision
is not supported by the evidence on record; or (3) errors of law or
irregularities have been committed prejudicial to the interest of the
respondent: Provided, That only one petition for reconsideration
shall be entertained.
SEC. 40. Summary Proceedings. – No formal investigation

is necessary and the respondent may be immediately removed or
dismissed if any of the following circumstances is present:
(a) When the charge is serious and the evidence of guilt is

strong;
(b) When the respondent is a recidivist or has been repeatedly

charged and there is reasonable ground to believe that he is guilty
of the present charge.
(c) When the respondent is notoriously undesirable.
Resort to summary proceedings by disciplining authority

shall be done with utmost objectivity and impartiality to the end
that no injustice is committed: Provided, That removal or dismissal
except those by the President, himself, or upon his order, may be
appealed to the Commission.
434
SEC. 41. Preventive Suspension. – The proper disciplining

authority may preventively suspend any subordinate officer or
employee under his authority pending an investigation, in the charge
against such officer or employee involves dishonesty, oppression or
grave misconduct, or neglect in the performance of duty, or if there
are reasons to believe that the respondent is guilty of charges which
would warrant his removal from the service.
SEC. 42. Lifting of Preventive Suspension Pending

Administrative Investigation. – When the administrative case
against the officer of employee under preventive suspension is not
finally decided by the disciplining authority within the period of
ninety (90) days after the date of suspension of the respondent who is
not a presidential appointee, the respondent shall be automatically
reinstated in the service: Provided, That when the delay in the
disposition of the case is due to the fault, negligence or petition of
the respondent, the period of delay shall not be counted in computing
the period of suspension herein provided.
SEC. 43. Removal of Administrative Penalties or Disabilities.

In meritorious cases and upon recommendation in the Commission,
the President may commute or remove administrative penalties
or disabilities imposed upon officers or employees in disciplinary
cases, subject to such terms and conditions as he may impose in the
interest of the service.
ARTICLE X
PROHIBITIONS
SEC. 44. Limitation on Appointment.
1. No elective official shall be eligible for appointment to

any office or position during his term of office.
2. No candidate who lost in an election shall be eligible for

appointment to any office in the government, or in any government-
owned or controlled corporation within one year following such
election.
435
SEC. 45. Political Activity. – No officer or employee in the

Civil Service including members of the Armed Forces, shall engage
directly or indirectly in any partisan political activity or take part
in any election except to vote nor shall he use his official authority
or influence to coerce the political activity of any other person or
body. Nothing herein provided shall be understood to prevent any
problems or issues, or from mentioning the names of candidates
for public office whom he supports: Provided, That public officers
and employees holding political offices may take part in political
and electoral activities but it shall be unlawful for them to solicit
contributions from their subordinates or subject them to any of the
acts involving subordinates prohibited in the Election Code.
SEC. 46. Additional or Double Compensation. – No elective

or appointive public officer or employee shall receive additional or
double compensation unless specifically authorized by law nor accept
without the consent of the President, any present, emolument, office,
or title of any kind from any foreign state.
SEC. 47. Limitation on Employment of Laborers. – Laborers,

whether skilled, semi-skilled or unskilled, shall not be assigned to
perform clerical duties.
SEC. 48. Prohibition on Detail or Reassignment. – No detail

or reassignment whatever shall be made within three (3) months
before any election.
SEC. 49. Nepotism. –
(a) All appointments in the national, provincial, city and

municipal governments or in any branch or instrumentality thereof,
including government-owned or controlled corporations, made in
favor of a relative of the appointing or recommending authority,
or of the chief of the bureau or office, or of the persons exercising
immediate supervision over him, are hereby prohibited.
436
As used in this Section, the word “relative” and members

either of consanguinity or of affinity.
(b) The following are exempted from the operation of the

rules on nepotism: (1) persons employed in a confidential capacity,
(2) teachers, (3) physicians, and (4) members of the Armed Forces of
full report of such appointment shall be made to the Commission.
The restriction mentioned in subsection (a) shall not be

her appointment to any position in an office or bureau, contracts
be allowed.
(c) In order to give immediate effect to these provisions, cases

of previous appointments which are in contravention hereof shall be
salary increase shall be allowed in favor of the relative or relatives
ARTICLE XI
MISCELLANEOUS PROVISIONS
SEC. 50. Examining Committee, Special Examiners and

Special Investigators. – Subject to approval by the proper head
of department or agency, the Commission may select suitable
persons in the government service to act as members of examining
committees, special examiners or special investigators. Such person
shall be designated examiners or investigators of the Commission
and shall perform such duties as the Commission may require and
in the performance of such duties they shall be under its exclusive
control. Examining committees, special examiners or special
investigators so designated may be given allowances or per diems
for their services, to be paid out of the funds of, and at a rate to be
determined by, the Commission.
437
SEC. 51. Fees. – The Commission shall collect and charge

fees for civil service examinations, certifications of civil service
ratings, service records, and other civil service matters, training
courses, seminars, workshops in personnel management and other
civil service matters.
For this purpose, the Commission shall prescribe standard

and reasonable rates for such examinations, certifications, training
courses, seminars, and workshops: Provided, That the fees so
collected in training courses, seminars and workshops, shall be
used exclusively for training activities of the Commission: Provided,
further, That no examination fees shall be collected in examinations
given for the selection of scholars.
SEC. 52. Authority of Officers to Administer Oaths, Take

Testimony, Prosecute and Defend Cases in Court. – Members of the
Commission, chiefs of offices, and other officers and employees of the
Commission designated in writing by the Chairman may administer
such oaths as may be necessary in the transactions of official
business and administer oaths and take testimony in connection
with any authorized investigation. Attorneys of the Commission
may prosecute and defend cases in connection with the functions of
the Commission before any court or tribunal.
SEC. 53. Liability of Appointing Authority. – No person

employed in the Civil Service in violation of the Civil Service Law
and rules shall be entitled to receive pay from the government; but
the appointing authority responsible for such unlawful employment
shall be personally liable for the pay that would have accrued had
the employment been unlawful, and the disbursing officials shall
make payment to the employee of such amount from salary of the
officers so liable.
SEC. 54. Liability of Disbursing Officers. – Except as may

otherwise be provided by law, it shall be unlawful for a treasurer, or
other fiscal officer to draw or retain from the salary due an officer
or employee any amount for contribution or payment of obligations
other than those due the government or its instrumentalities.
438
SEC. 55. Penal Provision. – Whoever makes any appointment

or employs any person in violation of any provision of this Decree
or the rules made thereunder or whoever commits fraud, deceit or
intentional misrepresentation of material facts concerning other
civil service matters, or whoever violates, refuses or neglects to
comply with any of such provisions or rules, shall upon conviction
be punished by a fine not exceeding one thousand pesos or by
imprisonment not exceeding six (6) months, or both such fine and
ARTICLE XII
TRANSITORY PROVISIONS
SEC. 56. Government-owned or Controlled Corporations

Personnel. – All permanent personnel of government-owned or
controlled corporations whose positions are now embraced in the
civil service shall continue in the service until they have been
given a chance to qualify in an appropriate examination, but in the
meantime, those who do not possess the appropriate civil service
eligibility shall not be promoted until they qualify in an appropriate
civil service examination. Services of temporary personnel may be
terminated any time.
SEC. 57. Authority to Use Appropriations. – The Commission

is hereby authorized to use such sums appropriated in Presidential
Decree No. 733 and balances of existing certifications to accounts
payable including prior years which have not yet been reverted
to the unappropriated surplus, as are necessary to carry out the
provisions of this Decree. Henceforth, appropriations to cover the
salaries of officials and employees of the Civil Service Commission
and its maintenance and operational expenses shall be included in
the annual General Appropriations Decree.
SEC. 58. Vested Rights. – Except as otherwise provided in

this Decree, rights vested or acquired under the provisions of the old
Civil Service Law, rules and regulations and any other Acts prior to
the effectivity of this Decree shall be respected.
439
SEC. 59. Repealing Clause. – All laws, rules and regulations

or parts thereof inconsistent with the provisions of this Decree are
SEC. 60. Separability of Provisions. – If any part, section or

provision of this Decree shall be held invalid or unconstitutional, no
other part, section or provision thereof shall be affected thereby.
SEC. 61. Effectivity. – This Decree shall form part of the law
of the land and shall take effect immediately.
DONE in the City of Manila, this 6th day of October, in the


By the President:

Deputy Executive Secretary
440
PRESIDENTIAL DECREE NO 1079
REVISING AND CONSOLIDATING ALL LAWS AND DECREES

REGULATING PUBLICATION OF JUDICIAL NOTICES,
ADVERTISEMENTS FOR PUBLIC BIDDINGS, NOTICES
OF AUCTION SALES AND OTHER SIMILAR NOTICES
WHEREAS, in order to better serve the public good, it is

necessary to properly disseminate information contained in judicial
notices, advertisements for public biddings, notices of auction
sales and other similar notices required by Republic Act No. 4569,
as amended by Republic Act No. 4883 and Presidential Decree
No. 795;
WHEREAS, Presidential Decree No. 19 has further amended

the above-mentioned law by authorizing the publication of the said
notices in any existing newspaper or periodical in any part of the
country during the present national emergency;
WHEREAS, there is an urgent need to revise Presidential

Decree No. 19 to preclude any confusion in the distribution of the
notices referred to above;
WHEREAS, Presidential Decree No. 19 was intended merely

as an emergency measure to prevent the paralyzation of the normal
transactions of the government and the private sector that might
have resulted from the scarcity of newspapers in the provinces
during the early stages of martial law, which possibility no longer
exists today;
WHEREAS, to better implement the philosophy behind the

publication of the above-mentioned notices and announcements
and prevent cross commercialism and unfair competition among
community newspapers, which conditions prove to be inimical to the
development of a truly free and responsible press, it is necessary to
revise and consolidate all laws and decree affecting the publication
of judicial notices and other announcements herein referred to;
441

law, do hereby order and decree the following:
SECTION 1. All notices of auction sales in extra- judicial

foreclosure of real estate mortgage under Act No. 3135 as amended,
judicial notices such as notices of sale on execution of real properties,
notices in special proceedings, court orders and summonses and all
similar announcements arising from court litigation required by law
to be published in a newspaper or periodical of general circulation in
particular provinces and/or cities shall be published in newspapers
or publications published, edited and circulated in the same city
and/or province where the requirement of general circulation
applies: Provided, That the province or city where the publication’s
principal office is located shall be considered the place where it is
edited and published: Provided, further, That in the event there is
no newspaper or periodical published in the locality, the same may
be published in the newspaper or periodical published, edited and
circulated in the nearest city or province: Provided, finally, That no
newspaper or periodical which has not been authorized by law to
publish and which has not been regularly published for at least one
year before the date of publication of the notices or announcements
which may be assigned to it shall be qualified to publish the said
notices.
XXX XXX XXX
SEC. 5. No publishers, editor, media personnel or any other

person shall directly or indirectly offer or give money, commission
or gift of any kind to executive judges of the court of first instance
or any court employee in consideration of the award of legal and
judicial notices and similar announcements defined in section 1
hereof. Neither shall the latter directly or indirectly demand of or
receive from the former money, commission or gifts of any kind in
consideration of any publication herein referred to.
SEC. 6. Violation of any provision of this Decree shall be

punished by a fine or not less than five thousand pesos (5,000.00) nor
442
more than twenty thousand pesos (P20,000.00) and imprisonment

for not less than (6) months nor more than two (2) years. The
offending executive judge or court personnel shall be perpetually
disqualified from holding any public office in the government.
SEC. 7. Any provision of law, decree, executive order, rule

or regulation contrary to or inconsistent with the provisions of this
decree are hereby amended, modified or repealed accordingly.
DONE in the City of Manila, this 28th day of January in the

year of Our Lord, nineteen hundred and seventy-seven.

By the President:
(Sgd.) JUAN C. TUVERA

Presidential Assistant
443
AUTHORIZING THE REVERSION TO THE GENERAL FUND

OF DORMANT OR UNNECESSARY SPECIAL AND
FIDUCIARY FUNDS
WHEREAS, the proper allocation of government resources

calls for the comprehensive review of government planning
objectives and priorities, in conjunction with aggregate receipts and
resources;
WHEREAS, the earmarking for specific purposes of proceeds

from taxes, imposts or other revenues of government, trends
to frustrate a comprehensive review of priorities and resources
available;
WHEREAS, the initial operation and the implementation

of certain priority activities may justify the creation of Special or
Fiduciary Funds for a specified period of time;
WHEREAS, the transfer of dormant or unnecessary Special

and Fiduciary Funds to the General Fund would facilitate the
implementation of social economic programs and projects which will
benefit and improve the welfare of the masses.

the Constitution, do hereby Order and Decree:
SECTION 1. Statement of Policy. — All revenues of

government shall accrue to the General Fund and thus be made
available to support approved priority programs and projects.
Earmarking of proceeds of special imposts, taxes, or other sources
of revenues for specific uses is discouraged. Exceptions shall be
made only in those cases where, for administrative or other reasons,
earmarking of proceeds may be justified to support a major priority
project with substantial funding requirements for a specified period
of time.
444
SEC. 2. Abolition of Special and Fiduciary Funds. – The

President is authorized to abolish dormant or unnecessary Special
or Fiduciary Funds and transfer all assets, liabilities, surpluses and
appropriations pertaining thereto, to the General Fund of the national
government. The operations of all Special and Fiduciary Funds shall
be reviewed by the Secretary of Finance, the Commissioner of the
Budget and the Chairman of the Commission on Audit. They shall
recommend to the President the abolition of Funds which are found
to be dormant, or whose basis for creation no longer exists, or whose
purposes are provided for by appropriations of the General Fund,
thus rendering the said Special or Fiduciary Funds unnecessary.
SEC. 3. Rules and Regulations. – The Secretary of Finance, the

Commissioner of the Budget, and the Chairman of the Commission
on Audit shall recommend for the approval and the issuance by the
President, rules and regulations for the effective implementation of
the provisions of this Decree.
SEC. 4. Repealing Clause. – All existing laws, decrees and

letters of instructions, as well as rules and regulations, which are
inconsistent within the provisions of this Decree are hereby repealed
and/or modified accordingly.
SEC. 5. Effectivity. – This Decree shall take effect

immediately.
DONE in the City of Manila, this 16th day of May, in the

year of Our Lord, nineteen hundred and seventy-eight.

By the President:

445
CREATING THE MERIT SYSTEMS BOARD
WHEREAS, the need for a stable and responsive Civil Service

has become especially critical with the institution in the country of
a Parliamentary form of government that stresses accountability to
the people;
WHEREAS, while the present civil service system, by reason

of its new structure, has shown itself to have dynamic flexibility and
adaptiveness, there remains the need to further promote a more
positive approach to personnel growth and development;
WHEREAS, the two major functions of the Commission are

the strengthening of the merit system and the development of viable
careers among civil service employees;
WHEREAS, these two goals can be better achieved through

a redefinition of the functions of the Civil Service Commission so
that its career development concerns may be separated from the
protective character of its responsibilities;

President of the Philippines, pursuant to the powers vested in me
by the Constitution, do hereby decree and order:
SECTION 1. There is hereby created in the Civil Service

Commission a Merit Systems Board.
SEC. 2. Composition. the Board shall be composed of a

Commissioner and two Associate Commissioners who shall be
appointed by Civil Service Commission and who may be removed
only for cause as provided by law.
SEC. 3. Qualifications. The Commissioner and Associate

Commissioners shall have the same qualifications as that of a judge
of the court of first instance.
446
SEC. 4. Salary. The Commissioner and Associate

Commissioners shall each receive salaries of not less than P42,000
and P36,000 per annum, respectively.
SEC. 5. Powers and Functions of the Board. The Board shall

have the following powers and functions, among others:
1. Hear and decide administrative cases involving officers

and employees of the civil service.
2. Hear and decide cases brought before it by officers and

employees who feel aggrieved by the determination of appointing
authorities involving appointment, promotion, transfer, detail,
reassignment and other personnel actions, as well as complaints
against any officers in the government arising from abuses arising
from personnel actions of these officers or from violations of the
merit system.
3. Hear and decide complaints of civil service employees

regarding malpractices of other officials and employees.
4. Promulgate, subject to the approval of the Civil Service

Commission, rules and regulations to carry out the functions of the
Board.
5. Administer oaths, issue subpoena and subpoena duces

tecum, and take testimony in any investigation or inquiry. The
Board shall have the power to punish for contempt in accordance
with the rules of court under the same procedure with the same
penalties provided therein.
6. Perform such other functions as may be assigned by the

In the performance of these functions, the Board shall draw

assistance from the Office of Legal Affairs which shall maintain a
staff of prosecutors and defense lawyers for this purpose. However,
the Board may, upon approval of the Commission, designate hearing
447
officers from other departments and agencies of the government to

hear and decide cases falling within its jurisdiction. The decision of
these hearing officers shall be subject to review by the Board and
becomes final only after such review by it.
The Board shall maintain a small staff of lawyers and clerks

in carrying out is functions, all of whom shall be appointed by the
Chairman of the Civil Service Commission.
SEC. 6. Functions of the Commissioner. The Commissioner

shall be the Executive Officer of the Board. Subject to the policies,
rules and regulations adopted by the Board and approved by the
Civil Service Commission, the Commissioner shall:
1. Execute and administer the policies, rules and

regulations, orders and resolutions approved by the Board.
2. Direct and supervise the operations and internal

administration of the Board.
3. Prescribe operating procedures for the Board.
4. Perform such other functions as may be assigned by the

SEC. 7. Duties and Responsibilities of the Associate

Commissioners. The two Associate Commissioners, jointly with
the Commissioner, shall be responsible for the effective exercise
of the rule making and adjudicative functions of the Board. In the
absence or disability of the Commissioner, the senior Associate
Commissioner shall temporarily perform the functions vested in the
Commissioner.
SEC. 8. Relationship with the Civil Service Commission.

Decisions of the Board involving the removal of officers and
employees from the service shall be subject to automatic review by
the Commission. The Commission shall likewise hear and decide
448
appeals from other decisions of the Board, provided that the decisions
of the Commission shall be subject to review only by the Courts.
SEC. 9. Restructuring of the Office of Legal Affairs. The

present Office of Legal Affairs is restructured into three divisions,
one to constitute a pool of prosecutors: second, of defense lawyers
from whom civil service employees who are facing administrative
charges or who have filed complaints against the action of appointing
authorities on personnel matters may request legal assistance, and
the third to act as adviser of the Commission in its appellate and
review functions.
SEC. 10. Effectivity. This Decree shall take effect upon

approval.
DONE in the City of Manila, this 8th day of June, in the

449
ORDAINING AND INSTITUTING A GOVERNMENT AUDITING

CODE OF THE PHILIPPINES
WHEREAS, the creation and establishment of the

Commission on Audit under the new Constitution and its recent
reorganization and restructuring by virtue of Presidential Decree
No. 898 have rendered more pressing the long-felt need to codify
in revised and updated form, in keeping with modern trends of
government auditing and progressive legislation on the subject,
various scattered auditing laws, rules and regulations, and to
incorporate therein presidential decrees, orders, proclamations, and
instructions germane and relevant thereto for integrated effect;

the Constitution, do hereby order and decree:
PRELIMINARY TITLE
GENERAL PROVISIONS
SECTION 1. Title. – This law shall be known and cited as

the “Government Auditing Code of the Philippines.”
SEC. 2. Declaration of Policy. – It is the declared policy of

the State that all resources of the government shall be managed,
expended or utilized in accordance with law and regulations, and
safeguarded against loss or wastage through illegal or improper
disposition, with a view to ensuring efficiency, economy and
effectiveness in the operations of government. The responsibility to
take care that such policy is faithfully adhered to rests directly with
the chief or head of the government agency concerned.
XXX XXX XXX
450
SEC. 4. Fundamental principles. – Financial transactions

and operations of any government agency shall be governed by the
fundamental principles set forth hereunder, to wit:
1. No money shall be paid out of any public treasury or

depository except in pursuance of an appropriation law or other
specific statutory authority.
2. Government funds or property shall be spent or used

solely for public purposes.
3. Trust funds shall be available and may be spent only for

the specific purpose for which the trust was created or the funds
received.
4. Fiscal responsibility shall, to the greatest extent, be

shared by all those exercising authority over the financial affairs,
transactions, and operations of the government agency.
5. Disbursements or disposition of government funds or

property shall invariably bear the approval of the proper officials.
6. Claims against government funds shall be supported

with complete documentation.
7. All laws and regulations applicable to financial

transactions shall be faithfully adhered to.
8. Generally accepted principles and practices of accounting

as well as of sound management and fiscal administration shall be
observed, provided that they do not contravene existing laws and
regulations.
XXX XXX XXX
SEC. 41. Annual report of the Commission. –
1. The Commission shall submit to the President, the Prime

Minister, and the National Assembly not later than the last day of
451
September of each year an annual report on the financial condition

and results of operation of all agencies of the government which
shall include recommendations of measures necessary to improve
the efficiency and effectiveness of these agencies.
XXX XXX XXX
SEC. 77. Invoice and receipt upon transfer of funds or

property. – When government funds or property are transferred
from one accountable officer to another, or from an outgoing officer
to his successor, it shall be done upon properly itemized invoice and
receipt which shall invariably support the clearance to be issued
to the relieved or out-going officer, subject to regulations of the
Commission.
SEC. 78. Disposition of funds or property held by deceased,

incapacitated, absconding, or superseded accountable officer.—
1. When an officer accountable for government funds or

property absconds with them, dies, or becomes incapacitated in the
performance of his duties, the proper agency head shall designate a
custodian to take charge of the funds or property until a successor
shall have been appointed and qualified. The agency head may
appoint a committee to count the cash and take an inventory of the
property for which the officer was accountable and to determine the
responsibility for any shortage therein. One copy of the inventory
and of the report of the Committee duly certified shall be filed with
the Commission but the findings of the committee shall not be
conclusive until approved by the Commission or its duly authorized
representative.
2. If the absconding, deceased, incapacitated, or superseded

officer is accountable for funds or property of a province or city,
the custodian and committee shall be designated by the Minister
(Secretary) of Finance, and if accountable for municipal or barrio
(barangay) funds or property, by the provincial treasurer. In all
other respects, the above-prescribed proceedings shall be observed.
452
3. If the absconding, deceased, incapacitated, or superseded

officer is responsible to another who is accountable, the latter may
himself designate the committee or take other lawful measures for
the protection of his interest.
SEC. 79. Destruction or sale of unserviceable property. – When

government property has become unserviceable for any cause, or is
no longer needed, it shall, upon application of the officer accountable
therefor, be inspected by the head of the agency or his duly authorized
representative in the presence of the auditor concerned and, if found
to be valueless or unsalable, it may be destroyed in their presence. If
found to be valuable, it may be sold at public auction to the highest
bidder under the supervision of the proper committee on award or
similar body in the presence of the auditor concerned or other duly
authorized representative of the Commission, after advertising
by printed notice in the Official Gazette, or for not less than three
consecutive days in any newspaper of general circulation, or where
the value of the property does not warrant the expense of publication,
by notices posted for a like period in at least three public places in
the locality where the property is to be sold. In the event that the
public auction fails, the property may be sold at a private sale at
such price as may be fixed by the same committee or body concerned
and approved by the Commission.
SEC. 80. Final report of accountable officers.—
1. An accountable officer, upon ceasing to act in his official

capacity as such, shall submit to the auditor of the agency concerned
a report of his accountability.
2. Any remaining balance of such accountability shall be

deposited in the proper treasury without unnecessary delay.
XXX XXX XXX
453
CHAPTER 5
ACCOUNTABILITY AND RESPONSIBILITY FOR

GOVERNMENT FUNDS AND PROPERTY.
SEC. 101. Accountable officers; bond requirement.—
1. Every officer of any government agency whose duties

permit or require the possession or custody of government funds
or property shall be accountable therefor and for the safekeeping
thereof in conformity with law.
2. Every accountable officer shall be properly bonded in

accordance with law.
SEC. 102. Primary and secondary responsibility.—
1. The head of any agency of the government is immediately

and primarily responsible for all government funds and property
pertaining to his agency.
2. Persons entrusted with the possession or custody of

the funds or property under the agency head shall be immediately
responsible to him, without prejudice to the liability of either party
to the government.
SEC. 103. General liability for unlawful expenditures. –

Expenditures of government funds or uses of government property
in violation of law or regulations shall be a personal liability of the
official or employee found to be directly responsible therefor.
SEC. 104. Records and reports required by primarily

responsible officers. – The head of any agency or instrumentality
of the national government or any government-owned or controlled
corporation and any other self-governing board or commission of the
government shall exercise the diligence of a good father of a family
in supervising accountable officers under his control to prevent the
incurrence of loss of government funds or property, otherwise he shall
454
be jointly and solidarily liable with the person primarily accountable

therefore. The treasurer of the local government unit shall likewise
exercise the same degree of supervision over accountable officers
under his supervision otherwise, he shall be jointly and solidarily
liable with them for the loss of government funds or property under
their control.
SEC. 105. Measure of liability of accountable officers.—
1. Every officer accountable for government property shall

be liable for its money value in case of improper or unauthorized
used or misapplication thereof, by himself or any person for whose
acts he may be responsible. He shall likewise be liable for all losses,
damages, or deterioration occasioned by negligence in the keeping
or use of the property, whether or not it be at the time in his actual
custody.
2. Every officer accountable for government funds shall

be liable for all losses resulting from the unlawful deposit, use, or
application thereof and for all losses attributable to negligence in
the keeping of the funds.
SEC. 106. Liability for acts done by direction of superior

officer. – No accountable officer shall be relieved from liability by
reason of his having acted under the direction of a superior officer in
paying out, applying, or disposing of the funds or property with which
he is chargeable, unless prior to that act, he notified the superior
officer in writing of the illegality of the payment, application, or
disposition. The officer directing any illegal payment or disposition
of the funds or property shall be primarily liable for the loss, while
the accountable officer who fails to serve the required notice shall
be secondarily liable.
SEC. 107. Time and mode of rendering account. – In the

absence of specific provision of law, all accountable officers shall
render their accounts, submit their vouchers, and make deposits of
money collected or held by them at such times and in such manner
as shall be prescribed in the regulations of the Commission.
455
SEC. 108. Prohibition against pecuniary interest. – No

accountable or responsible officer shall be pecuniarily interested,
directly or indirectly, in any contract or transaction of the agency in
which he is such an officer.
XXX XXX XXX
TITLE IV
FINAL PROVISIONS
SEC. 125. Transitory provisions.—
1. Until such time as the Commission shall have been fully

constituted, the incumbent Chairman or his successor shall continue
to exercise all the powers and functions properly appertaining to the
Commission.
2. Pending implementation of the provisions of Section 24,

paragraph 2 of this Code, the agencies concerned shall continue
to provide the necessary amounts for the salaries, allowances and
other benefits for the representative and staff of the Commission.
SEC. 126. Duty to respect the Commission’s independence. –

It shall be the duty of every person to respect, protect and preserve
the independence of the Commission.
SEC. 127. Administrative disciplinary action.— Subject to

rules and regulations as may be approved by the President (Prime
Minister), any unjustified failure by the public officer concerned to
comply with any requirement imposed in this Code shall constitute
neglect of duty and shall be a ground for administrative disciplinary
action against the said public officer who, upon being found
guilty thereof after hearing, shall be meted out such penalty as is
commensurate with the degree of his guilt in accordance with the
Civil Service Law. Repeated unjustified failure to comply with the
requirements imposed in this Code shall be conclusive proof that
the public officer concerned is notoriously undesirable.
456
SEC. 128. Penal provision.— Any violation of the provisions

of Sections 67, 68, 89, 106, and 108 of this Code or any regulation
issued by the Commission implementing these sections, shall
be punished by a fine not exceeding one thousand pesos or by
imprisonment not exceeding six (6) months, or both such fine and
SEC. 129. Separability clause. – Should any provision of this

Code or any part thereof be declared invalid, the other provisions,
so far as they are separable from the invalid one, shall remain in
force and effect.
SEC. 130. Repealing clause.— Chapter 26 (Accounting Law)

of Act 2711 is hereby repealed. All other laws, executive orders,
proclamations, decrees, instructions, rules and regulations, or parts
thereof which are inconsistent or in conflict with any provision of
this Code shall be deemed repealed or modified accordingly.
SEC. 131. Effectivity clause. – This Code shall take effect

three months after the completion of its publication in the Official
Gazette.
DONE in the City of Manila, this 11th day of June in the


457
CREATING A SPECIAL COURT TO BE KNOWN AS

“SANDIGANBAYAN” AND FOR OTHER PURPOSES
WHEREAS, the New Constitution declares that a public

office is a public trust and ordains that public officers and employees
shall serve with the highest degree of responsibility, integrity,
loyalty and efficiency and shall remain at all times accountable to
the people;
WHEREAS, to attain the highest norms of official conduct

required of public officers and employees, Section 5, Article XIII of
the New Constitution provides for the creation of a special court to
be known as Sandiganbayan;

President of the Philippines, by virtue of the powers in me vested
by the Constitution and pursuant to Proclamation No. 1081, dated
September 21, 1972, do hereby order and decree as follows:
SECTION 1. Sandiganbayan; Composition; Qualifications;

tenure; removal and compensation. – A special court, possessing
all the inherent powers of a court of justice, to be known as the
Sandiganbayan is hereby created composed of a Presiding Judge and
eight (8) Associate Judges who shall be appointed by the President
and shall be subject to the same inhibitions and/or disqualifications
as judges of courts of first instance.
No person shall be appointed Presiding Judge or Associate

Judge of the Sandiganbayan, unless he is a natural-born citizen
of the Philippines, at least 40 years of age and for at least ten (10)
years or more had been a judge of a court of record or been engaged
in the practice of law in the Philippines or has held office requiring
admission to the bar as a prerequisite for a like period.
The Presiding Judge shall be so designated in his commission

and the other judges shall have precedence according to the dates
458
of their respective commissions, or when the commissions of two (2)

or more of them shall hear the same date, according to the order in
which their commissions have been issued by the President.
The Presiding Judge and the Associate Judges shall not be

removed from office except on impeachment upon the grounds and
in the manner provided for in Sections 2 and 3 of Article III of the
1973 Constitution.
The Presiding Judge shall receive an annual compensation

of P60,000.00 and each Associate Judge P50,000.00 which shall not
be diminished during their continuance in office.
They shall hold office until they reach the age of 65 years or
become incapacitated to discharge the duties of their office.
SEC. 2. Official Station; Place of Holding Sessions. – The

Area; Provided, however, That the Presiding Judge may authorize
any division or divisions of the court to hold sessions at any time
and place outside Metro Manila to hear and decide cases emanating
from any of the existing judicial districts.
Whenever necessary, the Sandiganbayan may require the

services of the personnel and the use of the facilities of any agency
of the Government, national or local, including the courts of first
instance of the province where any of the divisions is holding session
and those personnel of such agencies or courts shall be subject to the
order of the Sandiganbayan.
SEC. 3. Quorum. – Five judges shall constitute a quorum for

sessions en banc, and two judges for sessions in division; Provided,
that when a quorum and/or the majority required for a decision of the
Sandiganbayan either en banc or in division, or the trial or hearing
of cases cannot be had due to the legal disqualification or temporary
disability of a judge or of a vacancy occurring therein, the President
shall, upon recommendation of the Presiding Judge, designate any
judge of the court of first instance or of the circuit criminal court of
the judicial district concerned to sit temporarily therein.
459
The Sandiganbayan shall, as a body, sit en banc but it

may sit in three (3) divisions of three (3) judges each. The three (3)
divisions may sit at the same time.
If the Presiding Judge is present in any session of the court,

whether en banc or in division, he shall preside. In his absence the
Associate Judge attending who is first in precedence shall preside.
SEC. 4. Jurisdiction.— Except as herein provided, the

Sandiganbayan shall have original and exclusive jurisdiction to try
and decide:
(a) Violations of Republic Act No. 3019, as amended,

otherwise known as the Anti-Graft and Corrupt Practices Act and
Republic Act No. 1379;
(b) Crimes committed by public officers or employees,

including those employed in government- owned or controlled
corporations, embraced in Title VII of the Revised Penal Code;
(c) Other crimes or offenses committed by public officers

or employees including those employed in government-owned or
controlled corporations in relation to their office; Provided, that, in
case private individuals are accused as principals, accomplices or
accessories in the commission of the crimes hereinabove mentioned,
they shall be tried jointly with the public officers or employees
concerned.
Where the accused is charged of an offense in relation to

his office and the evidence is insufficient to establish the offense so
charged, he may nevertheless be convicted and sentenced for the
offense included in that which is charged.
(d) Civil suits brought in connection with the aforementioned

crimes for restitution or reparation of damages, recovery of the
instruments and effects of the crimes, or forfeiture proceedings
provided for under Republic Act No. 1379;
460
(e) Civil actions brought under Articles 32 and 34 of the

Civil Code.
Exception from the foregoing provisions during the period of

material law are criminal cases against officers and members of the
Armed Forces of the Philippines, and all others who fall under the
exclusive jurisdiction of the military tribunals.
SEC. 5. Proceedings against constitutional officers; votes

required. – All cases involving constitutional officers shall be heard
and decided by the Sandiganbayan en banc; Provided, that when
a non-constitutional officer or employee or private individual is
charged or sued jointly with a constitutional officer under Section 4
hereof, they shall all be tried jointly by the Sandiganbayan en banc.
All other cases may be tried and decided by a division.
The affirmative vote of five (5) judges is necessary for a

decision of the Sandiganbayan en banc. The affirmative vote of two
judges in a division shall be necessary for the promulgation of a
judgment.
SEC. 6. Maximum period for termination of cases. – As far as

practicable, the trial of cases before the Sandiganbayan en banc or in
division once commenced shall be continuous until terminated and
the judgment en banc or in division shall be rendered within three
(3) months from the date the case was submitted for decision.
SEC. 7. Form, finality and enforcement of decisions;

petitions for reconsideration. – Decisions and final orders of the
Sandiganbayan shall contain complete findings of fact on all issues
properly raised before it. Decisions and final orders en banc shall
be subject to review by the Supreme Court in accordance with Rule
45 of the Rules of Court; and those of a division shall be appealable
under Rule 42 thereof. The Supreme Court shall hear and decide
any case on appeal promptly and without the necessity of placing
it upon the regular calendar. Whenever, in any case decided by the
Sandiganbayan en banc or by a division thereof, the death penalty
of life imprisonment shall have been imposed, the records shall be
461
forwarded to the Supreme Court whether the accused shall have

appealed or not, for review and judgment, as law and justice shall
dictate.
Any party may file a petition for reconsideration of any

order or decision of the Sandiganbayan en banc or in division
within fifteen (15) days from receipt of a certified copy of such order
or decision and such petition for reconsideration shall be decided
by the Sandiganbayan en banc or in division, as the case may be,
within thirty (30) days from submission thereof.
Final judgments and orders of the Sandiganbayan en banc

or in division shall be executed and enforced in the manner provided
for in the Rules of Court.
SEC. 8. Transfer of cases. – All cases cognizable by the

Sandiganbayan as herein provided, the trial of which had not yet
commenced in the trial courts as of the date of its organization shall
be transferred to the Sandiganbayan, except those cases filed in the
military tribunals and those cases against military personnel which
shall remain in the military tribunals.
SEC. 9. Authority over internal affairs. –The Sandiganbayan

shall administer its own internal affairs and may adopt such rules
governing the constitution of its divisions, the allocation of cases
among them, the rotation of judges and other matters relating to
its business.
SEC. 10. Proceedings free of charge; premature publicity

prohibited. All proceedings in the Sandiganbayan en banc or in
division shall be conducted at no cost to the complainant and/or his
witnesses.
No criminal complaint shall be given due course by the

Sandiganbayan except upon a certification by the Chief Special
Prosecutor of the existence of probable cause to be determined after
a preliminary investigation conducted in accordance with existing
laws. No publicity shall be allowed during the pendency of such
462
preliminary investigation and the name of the complainant and the

accused shall not be made public until after an information is field
with the Sandiganbayan.
SEC. 11. Administrative Personnel. – Upon recommendation

of the Sandiganbayan, the Supreme Court may designate, from
among the officers and employees under it, or appoint the personnel
necessary for the Sandiganbayan, including a Clerk of Court and
three (3) Deputy Clerks of Court; Provided, however, That those
designated shall not receive additional compensation, except per
diems, traveling and necessary expenses in accordance with existing
laws and rules.
The Clerk of Court shall have an annual compensation of

P23,000.00, and the deputy clerks of court, P18,000.00. The Clerk
of Court and deputy clerks of court shall at least be members of the
bar.
All subordinate employees of the Sandiganbayan shall be

governed by the provisions of the Civil Service Law; Provided, that
the Sandiganbayan may, by resolution en banc, remove any of them
for cause.
SEC. 12. Office of the Chief Special Prosecutor. The provisions

of any law or rule to the contrary notwithstanding, the direction and
control of the prosecution of cases mentioned in Section 4 hereof,
shall be exercised by a Chief Special Prosecutor who shall be assisted
by one (1) Assistant Chief Special Prosecutor and nine (9) Special
Prosecutors who shall be appointed by the President. The Chief
Special Prosecutor shall have annual compensation of P30,000.00,
the Assistant Chief Special Prosecutor of P28,000.00 and the Special
Prosecutors of P24,000.00 which shall not be diminished during
their continuance in office.
The Chief Special Prosecutor, the Assistant Chief and

the Special Prosecutors shall have exclusive authority to conduct
preliminary investigations of all complaints filed with the
Sandiganbayan, to file information and conduct the prosecution
463
of all cases; Provided, that the Secretary of Justice may designate

any lawyer in the government service as special prosecutor or
special counsel to assist the Chief Special Prosecutor in conducting
preliminary investigations and prosecuting cases before the
Sandiganbayan.
The Chief Special Prosecutor, Assistant Chief Special

Prosecutor and Special Prosecutors mentioned in the preceding
paragraph shall have the authority to administer oaths, to issue
subpoena and subpoena duces tecum, summon and compel witnesses
to appear and testify under oath before them and to bring books,
documents or other things under their control and to secure the
attendance or presence of any absent or recalcitrant witness through
application before the Sandiganbayan en banc or in division or
before any inferior or superior court having jurisdiction of the place
where the witness or evidence may be found.
The Chief Special Prosecutor and his assistants shall be

under the control of the Secretary of Justice.
SEC. 13. Office of Special Investigators. To assist the Chief

Special Prosecutor in the performance of his duties, the Secretary
of Justice may, upon the recommendation of the Chief Special
Prosecutor, appoint such number of Special Investigators and
subordinate personnel as may be deemed necessary therefor and/
or detail to the Office of the Chief Special Prosecutor any officer
or employee of the Department of Justice or any Bureau or Office
under the executive supervision thereof; Provided, that those
designated shall not receive additional compensation except per
diems, traveling and necessary expenses in accordance with existing
law and rules. The Office of Special Investigators shall be under the
Chief Special Prosecutor. The appointment of Special Investigators
and subordinate personnel therein shall be subject to Civil Service
Law and Rules.
The Sandiganbayan may, upon proper, request of the Chief

Special Prosecutor, require the assistance and services of any
Department, Agency, or Bureau of the government.
464
SEC. 14. Report to the President.— The Sandiganbayan

shall submit an annual report to the President including all
disbursements of funds entrusted to it within two months from the
end of the Fiscal Year.
SEC. 15. Funding. – There is hereby immediately

appropriated out of any funds in the National Treasury not otherwise
appropriated, such sums as may be necessary to carry out the
provisions of this Decree and thereafter to be included in the general
appropriation act. The appropriations for the Sandiganbayan shall
be automatically released in accordance with a schedule submitted
by the Sandiganbayan.
SEC. 16. Repealing Clause. – Any provision of law, order,

rule or regulation inconsistent with the provisions of this Decree is
SEC. 17. Effectivity. – This Decree shall be part of the laws

of the land and shall take effect immediately.

465
CREATING THE OFFICE OF THE OMBUDSMAN, TO BE KNOWN

AS TANODBAYAN
To give effect to the constitutional right of the people to

petition the government for redress of grievances and to promote
higher standards of integrity and efficiency in the government
service, I, FERDINAND E. MARCOS, President of the Philippines,
by virtue of the powers vested in me under the Constitution and
pursuant to Proclamation No. 1081, dated 21 September 1972,
hereby order and decree as part of the law of the land:
SECTION 1. Short title. – This Decree may be cited as the

Tanodbayan Decree of 1977.
SEC. 2. Establishment of office. – An independent Office of

the ombudsman, to be called the Tanodbayan, is hereby established.
The Tanodbayan shall have two Deputies for Luzon, one for the
Visayas and one for Mindanao.
SEC. 3. Appointment. – The President shall appoint the

Tanodbayan and his Deputies.
SEC. 4. Qualifications. – The Tanodbayan and his Deputies

shall be members of the bar, well equipped to analyze problems
of law, administration, and public policy, and shall not have been
actively involved in partisan affairs.
SEC. 5. Disqualifications.— The Tanodbayan and his

Deputies shall not, during their tenure in office, engage in the
practice of any profession or in the management of any business,
or be financially interested directly or indirectly in any contract
with, or in any franchise or privileges granted by, the Government,
or any subdivision, agency, or instrumentality thereof including
government-owned or controlled corporations.
466
SEC. 6. Term of Office. – (a) To Tanodbayan and his Deputies

shall serve for a term of seven years without reappointment
unless removed by the President upon his determination that the
Tanodbayan or any of his Deputies has become incapacitated or has
been guilty of neglect of duty, or misconduct.
(b) If the Office of Tanodbayan becomes vacant for any cause,

the Senior Deputy Tanodbayan shall serve as Acting Tanodbayan
until the Tanodbayan shall have been appointed for a full term.
SEC. 7. Salary. – Unless otherwise provided by law, the

Tanodbayan and each Deputy Tanodbayan shall receive an annual
salary of sixty thousand pesos and fifty thousand pesos, respectively,
which shall not be decreased during their continuance in office.
SEC. 8. Organization of Office. – (a) The Tanodbayan may

select, appoint, and compensate in accordance with the Civil Service
Law and within the amount available by appropriation, such
assistants and employees in the national and local offices as he may
deem necessary to discharge his responsibilities under this Decree;
(b) The Tanodbayan shall designate one of his Deputies to

be the Senior Deputy Tanodbayan, with authority to act in his stead
when he himself is disabled or protractedly absent;
(c) The Tanodbayan may delegate to other members of his

Staff any of his authority or duties under this Decree except this power
of delegation and the duty of formally making recommendations to
administrative agencies or reports to the President or the National
Assembly.
SEC. 9. Definitions. – As used in this Decree, the term—
(a) “Administrative agency” means any department or other

governmental unit including any government-owned or controlled
corporation, any official, or any employee acting or purporting to
act by reason of connection with the government but it does not
include (1) any court or judge, or appurtenant judicial staff, (2)
467
the members, committees, or staffs of the National Assembly, or

(3) the President or his personal staff, or (4) the members of the
Constitutional Commissions and their personal staffs.
(b) “Administrative act” refers to any action including

decisions, omissions, recommendations, practices, or procedures of
an administrative agency.
(c) “Failure of Justice” refers to the defeat of a particular

right, of the failure of reparation for a particular wrong, from the
lack or inadequacy of a legal remedy for the enforcement of the one
or the redress of the other.
SEC. 10. Powers.— The Tanodbayan shall have the following

powers:
(a) He may investigate, on complaint, any administrative

act of any administrative agency including any government-owned
or controlled corporation;
(b) He may prescribe the methods by which complaints

are to be made, received, and acted upon; he may determine the
scope and manner of investigations to be made; and, subject to the
requirements of this Decree, he may determine the form, frequency,
and distribution of his conclusions and recommendations;
(c) He may request and shall be given by each administrative

agency the assistance and information he deems necessary for
the discharge of his responsibilities; he may examine the records
and documents of all administrative agencies; and he may enter
and inspect premises within any administrative agency’s control,
provided, however, that where the President in writing certifies that
such information, examination or inspection might prejudice the
national interest, the Tanodbayan shall desist. All information so
obtained shall be confidential, unless the President, in the interest
of public service, decides otherwise;
468
(d) He may issue a subpoena to compel any person to appear,

give sworn testimony, or produce documentary or other evidence
the Tanodbayan deems relevant to a matter under his inquiry;
(e) He may undertake, participate in, or cooperate

with general studies or inquiries, whether or not related to any
particular administrative agency or any particular administrative
act, if he believes that they may enhance knowledge about or lead to
improvements in the functioning of administrative agencies.
SEC. 11. Matters appropriate for investigation. –
(a) In selecting matters for his attention, the Tanodbayan

should address himself particularly to an administrative act that
might be
1. contrary to law or regulation;
2. unreasonable, unfair, oppressive, or inconsistent with

the general course of an administrative agency’s functioning;
3. mistaken in law or arbitrary in ascertainments of facts;
4. improper in motivation or based on irrelevant

consideration;
5. unclear or inadequately explained when reasons should

have been revealed;
6. inefficiently performed; or
7. otherwise objectionable;
(b) The Tanodbayan may concern himself also with

strengthening procedures and practices which lessen the risk that
objectionable administrative acts will occur.
469
SEC. 12. Action on complaints. – (a) The Tanodbayan may

receive a complaint from any source concerning an administrative
act. At no expense to the complainant, he shall conduct a suitable
investigation into the things complained of unless he believes that
1. The complainant has available to him another remedy or

channel of complaint which he could reasonably be expected to use;
2. The grievance pertains to a matter outside the

Tanodbayan’s power;
3. The complainant’s interest is insufficiently related to

the subject matter;
4. The complainant is trivial, frivolous, vexatious, or not

made in good faith;
5. Other complaints are more worthy of attention;
6. The tanodbayan’s resources are insufficient for adequate

investigation; or
7. The complaint has been too long delayed to justify

present examination of its merits.
(b) After completing his consideration of a complaint,

whether or not it has been investigated, the Tanodbayan shall
suitably inform the complainant and, when appropriate, the
administrative agency or agencies involved.
(c) A letter to the Tanodbayan from a person in a place of

detention or in a hospital or other institution under the control of an
administrative agency shall be immediately forwarded, unopened,
to the Tanodbayan.
SEC. 13. Consultation with agency. – Before announcing

a conclusion or recommendation that criticizes an administrative
agency or any person, the Tanodbayan shall consult with that
agency or person.
470
SEC. 14. Recommendations. – (a) If, having considered

a complaint and whatever material he deems pertinent, the
Tanodbayan is of the opinion that an administrative agency
should (1) consider the matter further, (2) modify or cancel an
administrative act, (3) alter a regulation or ruling, (4) explain fully
the administrative act in question, or (5) take any other step, he
shall state his recommendations to the administrative agency. If the
Tanodbayan so requests, the agency shall, within the time he has
specified, inform him about the action taken on his recommendations
or the reasons for not complying with them;
(b) If the Tanodbayan believes that an administrative action

has been dictated by laws whose results are unfair or otherwise
objectionable, he shall bring to the notice of the National Assembly
his views concerning desirable statutory change.
SEC. 15 Publication of recommendations. – The Tanodbayan

may publish his conclusions, recommendations, and suggestions
by transmitting them to the President, the National Assembly, or
any of its committees, the press, and others who may be concerned.
When publishing an opinion adverse to an administrative agency
or official he shall, unless excused by the agency or official affected,
include the substance of any statement the administrative agency or
official may have made to him by way of explaining past difficulties
or present rejection of the Tanodbayan’s proposals.
SEC. 16. Reports. – In addition to whatever reports he may

make from time to time, the Tanodbayan shall on or about August
15 of each year report to the National Assembly and to the President
concerning the exercise of his functions during the preceding
calendar year. This report shall be published in the Official Gazette
and copies thereof shall be furnished the provincial governors and
city mayors. In discussing matters with which he has dealt, the
Tanodbayan need not identify those immediately concerned if to
do so would cause needless hardship. So far as the annual report
may criticize named agencies or officials, it must also include the
substance of their replies to the criticism.
471
SEC. 17. Prosecution of public personnel. – If the Tanodbayan

has reason to believe that any public official, employee, or other
person has acted in a manner resulting in a failure of justice,
he shall file and prosecute the corresponding criminal, civil, or
administrative case before the Sandiganbayan or the proper court
or body.
SEC. 18. Tanodbayan’s immunities. – (a) No proceeding,

opinion, or expression of the Tanodbayan or any member of his
staff, shall be reviewable in any court;
(b) No civil action shall lie against the Tanodbayan or

any member of his staff or anything done or said or omitted, in
discharging the responsibilities contemplated by this Decree;
(c) Neither the Tanodbayan or any member of his staff

shall be required to testify or produce evidence in any judicial or
administrative proceeding concerning matters within his official
cognizance, except in a proceeding brought to enforce this Decree.
SEC. 19. Rights and duties of witnesses. – (a) A person

required by the Tanodbayan to provide information shall be paid
whose attendance has been required in the course of first instance.
(b) A person who, with or without service of compulsory

process, provides oral or documentary information requested by the
Tanodbayan shall be accorded the same privileges and immunities
as are extended to witnesses in the courts, and shall also be entitled
to be accompanied and advised by counsel while being questioned.
(c) If a person refuses to respond to the Tanodbayan’s

subpoena, refuses to be examined or engages in obstructive misconduct,
the Tanodbayan shall certify the facts to the Sandiganbayan or the
court of first instance. The court shall thereupon issues an order
directing the person to appear before the court to show cause why
he should not be punished as for contempt. The order and copy of
the Tanodbayan’s certified statement shall be served on the person.
472
Thereafter the court shall have jurisdiction of the matter. The same
proceedings shall be had, the same penalties may be imposed, and
the person charged may purge himself of the contempt in the same
way as in the case of a person who has committed a contempt in the
trial of a civil action before the court.
SEC. 20. Obstruction. – A person who willfully obstructs or

hinders the proper exercise of the Tanodbayan’s functions, or who
willfully misleads or attempts to mislead the Tanodbayan in his
inquiries, shall be fined not more than P1,000.00.
SEC. 21. Relation to other laws. – Republic Act No. 6028 is

hereby repealed; but otherwise, the provisions of this Decree are in
addition to and do not in any manner limit or affect the provisions of
any other enactment under which any remedy or right of appeal is
provided for any person, or any procedure is provided for the inquiry
into or investigation of any matter. The powers conferred on the
Tanodbayan may be exercised notwithstanding any provision in
any enactment to the effect that any administrative action shall be
final or unappealable.
SEC. 22. Appropriation. – There are hereby authorized

to the appropriated such sums as may be necessary to carry out
the provisions of this Decree, and thereafter to be included in the
general appropriation act.
SEC. 23. Effective date. – This Decree shall take effect

immediately.


By the President:

473
REVISING PRESIDENTIAL DECREE NO. 1486 CREATING A

SPECIAL COURT TO BE KNOWN AS “SANDIGANBAYAN”
WHEREAS, the new Constitution declares that a public office

is a public trust and ordains that public officers and employees shall
serve with the highest degree of responsibility, integrity, loyalty and
efficiency and shall remain at all times accountable to the people;
WHEREAS, to attain the highest norms of official conduct

required of public officers and employees, Section 5, Article XIII of
the New Constitution provides for the creation of a special court to
be known as Sandiganbayan;

the Constitution, do hereby order and decree as follows:
SECTION 1. Sandiganbayan; composition; qualifications;

tenure; removal and composition. A special court, of the same level
as the Court of Appeals and possessing all the inherent powers of a
court of justice, to be known as the Sandiganbayan is hereby created
composed of a Presiding Justice and eight Associate Justices who
shall be appointed by the President.
No person shall be appointed Presiding Justice or Associate

Justice of the Sandiganbayan; unless he is a natural-born citizen of
the Philippines, at least 40 years of age and for at least ten years
has been a judge of a court of record or been engaged in the practice
of law in the Philippines or has held office requiring admission to
the bar as a pre-requisite for a like period.
The Presiding Justice shall be so designated in his commission

and the other Justices shall have precedence according to the dates
of their respective commissions, or, when the commissions of two
or more of them shall bear the same date, according to the order in
which their commissions have been issued by the President.
474
The Presiding Justice and the Associate Justices shall not

be removed from office except on impeachment upon the grounds
and in the manner provided for in Sections 2, 3 and 4 of Article XIII
of the 1973 Constitution.
The Presiding Justice shall receive an annual compensation

of P60,000.00 and each Associate Justice P55,000.00 which shall
not be diminished during their continuance in office. They shall
have the same rank, privileges and other emoluments, be subject
to the same inhibitions and disqualifications, and enjoy the same
retirement and other benefits as those provided for under existing
laws of the Presiding Justice and Associate Justices of the Court of
Appeals.
Whenever the salaries of the Presiding Justice and the

Associate Justices of the Court of Appeals are increased, such
increases in salaries shall be correspondingly extended to and
enjoyed by the Presiding Justice and the Associate Justices of the
Sandiganbayan.
They shall hold office until they reach the age of 65 years or
become incapacitated to discharge the duties of their office.
SEC. 2. Official Station; Place of Holding Sessions. – The

of all cases filed with it irrespective of the place where they may have
arisen; Provided, however, that the Presiding Justice may authorize
any division or divisions of court to hold sessions at any time and
place outside Metro Manila to hear and decide cases emanating
from any of the existing judicial districts. Whenever necessary, the
Sandiganbayan may require the services of the personnel and the use
of the facilities of any agency of the Government, national or local,
including the courts of first instance of the province where any of the
divisions is holding session, and those personnel of such agencies or
courts shall be subject to the orders of the Sandiganbayan.
475
SEC. 3. Divisions of the Courts; Quorum. – The Sandiganbayan

shall sit in three divisions of three Justices each. The three divisions
may sit at the same time.
Three Justices shall constitute a quorum for session in

division; Provided, that when the required quorum cannot be
had due to the legal disqualification or temporary disability of a
Justice or of a vacancy occurring therein, the President shall, upon
recommendation of the Presiding Justice, designate any Justice of
the Court of Appeals or Judge of the Court of First Instance or of
the Circuit Criminal Court of the judicial district concerned to sit
temporarily therein.
SEC. 4. Jurisdiction. – The Sandiganbayan shall have

jurisdiction over:
(a) Violations of Republic Act No. 3019, as amended,

otherwise, known as the Anti-Graft and Corrupt Practices Act, and
(b) Crimes committed by public officers and employees

corporations, embraced in Title VII of the Revised Penal Code,
whether simple or complexed with other crimes; and
(c) Other crimes or offenses committed by public officers

or employees, including those employed in government-owned or
controlled corporations, in relation to their office.
The jurisdiction herein conferred shall be original and

exclusive if the offense charged is punishable by a penalty higher
than prision correccional, or its equivalent, except as herein provided;
in other offenses, it shall be concurrent with the regular courts.
In case private individuals are charged as co-principals,

accomplices or accessories with the public officers or employees
corporations, they shall be tried jointly with said public officers and
employees.
476
Where an accused is tried for any of the above offenses and

the evidence is insufficient to establish the offense charged, he may
nevertheless be convicted and sentenced for the offense proved,
included in that which is charged.
Any provision of law or the Rules of Court to the contrary

jointly determined in the same proceeding by, the Sandiganbayan,
the filing of the criminal action being deemed to necessarily carry
with it the filing of the civil action, and no right to reserve the filing
of such action shall be recognized; Provided, however, that, in cases
within the exclusive jurisdiction of the Sandiganbayan, where the
civil action had therefore been filed separately with a regular court
but judgment therein has not yet been rendered and the criminal
case is hereafter filed with the Sandiganbayan, said civil action
shall be transferred to the Sandiganbayan for consolidation and
joint determination with the criminal action, otherwise, the criminal
action may no longer be filed with the Sandiganbayan, its exclusive
jurisdiction over the same notwithstanding, but may be filed and
prosecuted only in the regular courts of competent jurisdiction;
Provided, further, that, in cases within the concurrent jurisdiction
of the Sandiganbayan and the regular courts, where either the
criminal or civil action is first filed with the regular courts, the
corresponding civil or criminal action, as the case may be, shall only
be filed with the regular courts of competent jurisdiction.
Excepted from the foregoing provisions, during martial law,

are criminal cases against officers and members of the armed forces
in the active service.
SEC. 5. Proceedings, how conducted; votes required. – The

unanimous vote of the three justices in a division shall be necessary
for the pronouncement of a judgment. In the event that the three
justices do not reach a unanimous vote, the Presiding Judge shall
designate two other justices from among the members of the Court
to sit temporarily with them, forming a division of five justices, and
477
the concurrence of a majority of such division shall be necessary for

rendering judgment.
SEC. 6. Maximum period for termination of cases. – As far

as practicable, the trial of cases before the Sandiganbayan once
commenced shall be continuous until terminated and the judgment
shall be rendered within three (3) months from the date the case
was submitted for decision.
SEC. 7. Form, finality and enforcement of decisions. –

Decisions and final orders of the Sandiganbayan shall contain
complete findings of facts on all issues properly raised before it.
A petition for reconsideration of any final order or decision

may be filed within (15) days from promulgation or notice of the
final order or judgment, and such petition for reconsideration shall
be decided within thirty (30) days from submission thereon.
Decisions and final orders shall be subject to review on

certiorari by the Supreme Court in accordance with Rule 45 of the
Rules of Court. The Supreme Court shall decide any case on appeal
promptly and without the necessity of placing it upon the regular
calendar. Whenever, in any case decided, the death penalty shall
have been imposed, the records shall be forwarded to the Supreme
Court, whether the accused shall have appealed or not, for review
and judgment, as law and justice shall dictate.
Final judgments and orders of the Sandiganbayan shall be

SEC. 8. Transfer of cases. – As of the date of the effectivity

of this decree, any case cognizable by the Sandiganbayan within its
exclusive jurisdiction where none of the accused has been arraigned
shall be transferred to the Sandiganbayan.
SEC. 9. Rule-making Power. – The Sandiganbayan shall have

the power to promulgate its own rules of procedure and, pending
such promulgation, the Rules of Court shall govern its proceedings.
478
SEC. 10. Authority over internal affairs. – The Sandiganbayan

shall administer its own internal affairs and may adopt such rules
governing the constitution of its divisions, the allocation of cases
among them, the rotation of justices and other matters relating to
its business.
SEC. 11. Proceeding free of charge. – All proceedings in the

Sandiganbayan shall be conducted at no cost to the complainant
and/or his witnesses.
No criminal information or complaint shall be entertained by

the Sandiganbayan except upon a certification by the Investigating
Prosecutor of the existence of a prima facie case to be determined
after a preliminary investigation conducted in accordance with
applicable laws and approved by the Chief Special Prosecutor.
SEC. 12. Administrative personnel. – The Sandiganbayan

shall reelect and appoint such personnel as it may deem necessary
to discharge its functions under this Decree including a Clerk of
Court and three (3) Deputy Clerks of Court who shall be members
of the Bar.
The Clerk of Court shall have an annual compensation of

P36,000.00 and the Deputy Clerks of Court, P30,000.00.
All other subordinate employees of the Sandiganbayan shall

be governed by the provisions of the Civil Service Law; Provided,
that the Sandiganbayan may, by resolution en banc, remove any of
them for cause.
SEC. 13. Report to the President. – The Sandiganbayan

shall submit an annual report to the President, including all
disbursements of funds entrusted to it, within two months from the
end of the Fiscal Year.
SEC. 14. Funding. – There is hereby immediately

appropriated the sum of Five Million Pesos (P5,000.00) out of
any funds in the National Treasury to carry out the provisions
479
of this Decree and thereafter to be included in the general

appropriations act. The appropriations for the Sandiganbayan shall
be automatically released in accordance with a schedule submitted
by the Sandiganbayan.
SEC. 15. Separability of Provisions. – If for any reason, any

section or provision of this Decree is declared to be unconstitutional
or invalid, other sections or provisions thereof which are not affected
thereby, shall continue in full force and effect.
SEC. 16. Repealing Clause. – This Decree hereby repeals

Presidential Decree No. 1486 and all other provisions of law,
General Orders, Presidential Decrees, Letters of Instructions, rules
or regulations inconsistent herewith.
SEC. 17. Effectivity. This Decree shall take effect

immediately.
Done in the City of Manila, this 10th day of December, in the

480
RULES OF THE SANDIGANBAYAN
Pursuant to the provisions of Section 5 of Article XIII of the

Constitution of the Philippines, as implemented by Presidential
Decree No. 1606, the Sandiganbayan hereby adopts and promulgates
the following rules to govern the conduct of its business.
RULE I
TITLE AND CONSTRUCTION
SECTION 1. Title of the Rules. These Rules shall be known

and cited as the Rules of the Sandiganbayan.
SECTION 2. Construction. These Rules shall be liberally

construed in order to promote their objectives and to achieve a just,
expeditious and inexpensive determination of every action and
proceeding before the Sandiganbayan.
RULE II
CONTROL OF FUNCTIONS AND SUCCESSION
SECTION 1. Exclusive Control. Except as otherwise

provided by the Constitution and Presidential Decree No. 1606,
the Sandiganbayan shall have exclusive control, direction and
supervision of all matters pertaining to its internal affairs and the
operation of its business.
SECTION 2. Succession in the Office of the Presiding

Justice. In case of vacancy in the position of Presiding Justice of the
Sandiganbayan or his temporary incapacity to exercise the powers
and perform the duties of his office, the same shall devolve upon
the qualified most senior Associate Justices until such incapacity
is removed or another Presiding Justice is appointed and has duly
qualified.
481
RULE III
COMPOSITION OF DIVISIONS
SECTION 1. How Divisions Constituted. The Sandiganbayan

shall consist of three divisions which shall be known as the First
Division, Second Division, and Third Division, and shall each be
composed of Presiding Justice and the first two Associate Justices
in the order of precedence as the respective Chairmen; the next
three Associate Justices in the order of precedence as the respective
senior members; and the last three Associate Justices in the order
of precedence as the respective junior members. However, until the
entire complement of the Sandiganbayan shall have been appointed
and qualified, the Presiding justice and the two Associate Justices
first appointed and qualified shall constitute the First Division.
SECTION 2. Vacancy; How Filled. In case of any vacancy in

the composition of a division, whether permanent or temporary, the
Presiding Justice may designate an Associate Justice of the Court,
to be determined by strict rotation on the basis of the reverse order
of precedence, to sit as a special member of said division with all
the rights and prerogatives of a regular member of said division
in the trial and determination of cases assigned thereto, unless
the operation of the other divisions of the Court will be prejudiced
thereby, in which case, the procedure provided in Section 3, Rule
VIII of these Rules shall apply.
RULE IV
FILING OF CASES
SECTION 1. Proceedings Free of Charge. All proceedings in

the Sandiganbayan be conducted at no cost to the complainant and/
or his witnesses.
SECTION 2. Preliminary Investigation Necessary. No

criminal information or complaint shall be entertained by the
Sandiganbayan except upon a certification by the investigating
482
Prosecutor of the existence of a prima facie case to be determined

after a preliminary investigation conducted in accordance with
applicable laws and approved by the Chief Special Prosecutor.
SECTION 3. Where Cases Filed. All cases to be filed with the

Sandiganbayan shall be filed with the Office of the Clerk of Court of
the Sandiganbayan which shall be open for the purpose of receiving
complaints, information, motions and the like from eight to twelve
o’clock in the morning and twelve thirty to four-thirty o’clock in
the afternoon, on Mondays to Fridays, except on public or special
holidays.
RULE V
DISTRIBUTION AND CONSOLIDATION OF CASES
SECTION 1. Distribution of Cases. All cases filed with the

Sandiganbayan shall be allotted among the three divisions for
hearing and decision by raffle to be conducted by a Raffle Committee
composed of the Presiding Justice and the two most senior Associate
Justices available, on such days as may hereafter be fixed by the
Presiding Justice depending upon the need for such raffle to be made
in view of the number of cases filed, with notice to the interested
parties who may, if they so desire, be present therein by themselves
or through counsel.
SECTION 2. Consolidation of Cases. Cases arising from

the same incident on series of incidents, or involving common
questions of fact and law, may, in the discretion of Sandiganbayan,
be consolidated in only one division. Should the propriety of such
consolidation appear upon the filing of the cases concerned and
before they are raffled, all such cases shall be considered as one
case for purposes of the raffle; but, should the propriety of such
consolidation may be affected upon motion of an interested party
filed with the division taking cognizance of the case to be consolidated
and, if granted, consolidation shall be made in the division before
which the case with the lowest number is pending. In either case,
the division in which consolidation is effected shall be entitled to
483
be credited in the distribution of cases with the same number of

cases transferred to it to the end that all divisions shall, as much as
possible, receive more or less the same number of cases filed with
the Sandiganbayan.
SECTION 3. Assignment of Cases Permanent. Cases assigned

to a division of the Sandiganbayan in accordance with these Rules
shall remain with said division notwithstanding changes in the
composition thereof and all matters raised therein shall be deemed
to be submitted for consideration and adjudication by any and all of
the Justices who are members of the division aforesaid at the time
said matters are taken up, irrespective of whether they were or were
not members of the division at the time the case was first assigned
thereto: Provided, however, That only Justices who are members of
the division at the time a case is submitted for decision shall take
part in the consideration and adjudication of said case, unless any
such member thereafter ceases to be a member of the Sandiganbayan
for any reason whatsoever in which case any Justice chosen to fill
the vacancy in accordance with the manner provided in Section 2,
Rule III, of these Rules shall participate in the consideration and
adjudication of said case; Provided, lastly, that the Sandiganbayan
en banc may, for special or compelling reasons, transfer cases from
one division thereof to another.
RULE VI
PROCESSES
Processes and writs of the Sandiganbayan which by their

nature or by provision of existing laws or the Rules of Court are to
be issued under the signature of a Judge or a Justice shall be signed
by the Chairman of the division concerned: Provided, That if there is
an urgent necessity for the issuance thereof before the case is raffled
to a division, the same shall be signed by the Presiding Justice. In
the absence of the Presiding Justice or the Chairman aforesaid, the
process or writ shall be signed by the senior Associate Justice in the
Sandiganbayan or in the divisions concerned, respectively. All other
processes or writs issued upon authority of the Sandiganbayan or
484
a division thereof shall be signed by the Clerk of Court or, in his

absence, by the Deputy Clerk of Court of the division concerned.
RULE VII
BAIL
SECTION 1. How Amount Fixed; Approval. The amount of

bail to be posted in cases in the Sandiganbayan shall be fixed by the
Chairman of the division thereof to which they are assigned; and
such bail may be approved by any Justice of the Sandiganbayan,
but preferably by a Justice of the division concerned: Provided,
however, That where the accused is arrested, detained or otherwise
placed in custody outside the Metropolitan Manila area, any judge
of the Court of First Instance or Circuit Criminal Court may accept
and approve the bail for his appearance before the division to which
his case is assigned and release him, and shall inform the division
issuing the order of arrest of his action, forwarding thereto the
papers in this case.
SECTION 2. Condition of the Bail. The condition of the

bail is that the accused shall appear and answer the complaint
or information in the division of the Sandiganbayan to which it is
assigned or transferred for trial and submit himself to the orders
and processes thereof and, after conviction, if the case is appealed to
the Supreme Court, that he will surrender himself for the execution
of such judgment as the Supreme Court may render; or, that, in
case the cause is to be tried anew or remanded for a new trial, he
will appear in the division to which it may be remanded and submit
himself to the orders and processes thereof.
RULE VIII
SESSIONS AND TRIAL
SECTION 1. How Sessions Held. The Sandiganbayan shall

for administrative purposes, sit en banc; and, for the trial and
determination of cases, sit in three divisions of three Justices each.
The three divisions may sit at the same time.
485
SECTION 2. Presiding Officer. Sessions of the Sandiganbayan

en banc shall be presided by the Presiding Justice; whereas sessions
in division shall be presided by the respective Chairman of each
division. In the absence of the Presiding Justice or the Chairman of
a division, as the case may be, the Associate Justice attending the
session en banc or in division who is first in the order of precedence
and able to preside, shall do so.
SECTION 3. Quorum. Five Justices shall constitute a

quorum for sessions en banc, and three Justices for sessions in
division: Provided, That when a quorum and/or the votes required
for a resolution or decision of the Sandiganbayan, either en banc or in
division, or the trial or hearing of cases cannot be had due to the legal
disqualification or temporary disability of a Justice or of a vacancy
occurring therein, the President shall, upon recommendation of the
Presiding Justice, designate any Justice of the Court of Appeals,
Judge of the Court of First Instance or of the Circuit Criminal Court
to sit temporarily therein.
SECTION 4. Place of Holding Sessions. Sessions of the

Sandiganbayan, whether en banc or in division, shall be held in the
place of its principal office in the Metropolitan Manila area where it
shall try and determine all cases filed with it irrespective of the place
where they may have arisen: Provided, however, That the Presiding
Justice may authorize any division or divisions of the Court to hold
sessions at any time and place outside Metropolitan Manila to
hear and decide cases emanating therefrom. For this purpose and
whenever necessary, the Sandiganbayan may require the services
of the personnel and the use of the facilities of any agency of the
Government, national or local, including the Courts of First Instance
or Circuit Criminal Court of the province or city where any of the
divisions is holding session, and those personnel of such agencies or
courts shall be subject to the orders of the Sandiganbayan.
SECTION 5. Time of Holding Sessions. Sessions of the

Sandiganbayan en banc may be called at any time by the Presiding
Justice or at the instance at least five Associate Justices. Sessions
for the trial of cases cognizable by it shall be held on such days and
486
at such times as the divisions thereof may, by order and upon notice
to the parties concerned, fix.
SECTION 6. Pre-trial Inquest. After the arraignment of an

accused who pleads not guilty, the division concerned shall, without
prejudice to the invocation by the accused of his constitutional rights,
direct the prosecutor and the accused and his counsel to appear
before any of the Justices thereof for a conference to consider;
(a) Admissions of facts about which there can be no

dispute;
(b) Marking for identification of documentary or real

evidence of the parties;
(c) Waiver of objections to admissibility of evidence;
(d) Procedure on objections where there are multiple

counsel;
(e) Order of presentation of evidence and arguments where

there are multiple accused;
(f) Order of cross-examination where there are multiple

accused; and
(g) Such other matter as will promote a fair and expeditious

termination of the trial.
After the pre-trial inquest, a pre-trial order shall be issued

by the Associate Justice presiding the conference reciting the actions
and/or proceedings taken thereat, the admissions of facts made, the
documents and real evidence marked, and the agreement entered
into by the parties as to any of the matters taken up therein. Such
order shall limit the issues for trial to those not disposed of by the
admissions or agreements of the parties and when entered shall
blind the parties and control the course of the action during the
487
trial, on appeal, and in post-conviction proceedings, unless modified

by the division concerned before trial to prevent manifest injustice.
RULE IX
MOTIONS
SECTION 1. Motion Day. The first hours of the morning

session of the divisions every Friday shall be devoted to the hearing
of motions, unless, upon motion of an interested party and for special
reasons, the division concerned shall fix another day for the hearing
of any particular motion.
SECTION 2. Resolution on Interlocutory or Incidental Motions.

Rulings on all written motions submitted to the Sandiganbayan or
any division thereof for resolution shall be reached in consultation
among the Justices participating in the consideration thereof:
Provided, however, That rulings on oral motions or on objections
made in the course of the trial or hearing shall be handed down by
the Chairman of the division concerned.
RULE X
JUDGMENT
SECTION 1. Votes Necessary to Decide. The unanimous vote

of three Justices in a division shall be necessary for the rendition of a
judgment or order. In the event that the three Justices do not reach
a unanimous vote, the Presiding Justice shall designated by raffle
two Justices from among the other members of the Sandiganbayan to
sit temporarily with them forming a special division of five Justices,
and the vote of a majority of such special division shall be necessary
for the rendition of a judgment or order.
SECTION 2. Procedure in Deciding Cases. The conclusions

of a division of the Sandiganbayan in any case submitted to it for
decision shall be reached in consultation before the case is assigned
488
to a Justice for the writing of the opinion of the division. Any Justice
dissenting from a judgment shall state the reasons for his dissent.
SECTION 3. Maximum Period to Decide Cases. The judgment

or final order of a division of the Sandiganbayan shall be rendered
within three (3) months from the date the case was submitted for
decision.
SECTION 4. Form of judgment and final order of a division

of the Sandiganbayan shall contain complete findings of fact and a
statement of the law on all issues properly raised before it.
RULE XI
PROMULGATION OF JUDGMENT
A judgment of a division of the Sandiganbayan shall be

promulgated by reading the judgment or sentence in the presence of
the accused and any Justice of the division which rendered the same:
Provided, That, if the accused is confined or detained in a place outside
Metropolitan Manila or of the city or province in which any division
of the Sandiganbayan is sitting at the time of such promulgation,
the judgment may, upon delegation by the division concerned be
promulgated by any judge of the Court of First Instance or Circuit
Criminal Court having jurisdiction over the place of confinement or
detention, in which event the Court so promulgating the judgment
shall have authority to accept and approve the appeal bond.
RULE XII
PETITION FOR RECONSIDERATION
Within fifteen (15) days from the promulgation or notice of a

judgment or final order of a division of the Sandiganbayan, unless
said judgment or order had in the meantime otherwise attained
finality, a petition for the reconsideration thereof may be filed upon
the grounds, in the form and subject to the requirements, for motions
for new trial in criminal cases under Rule 121 of the Rules of Court,
489
and such petition for reconsideration shall be decided within thirty

(30 days from submission thereof.
RULE XIII
REVIEW OF JUDGMENTS AND FINAL ORDERS
SECTION 1. Method of Review. A party may appeal from

a judgment or final order of a division of the Sandiganbayan by
filing with the Supreme Court a petition for certiorari in accordance
with Rule 45 of Rules of Court and by serving a copy thereof to the
Sandiganbayan.
Whenever, in any case decided, the death penalty shall have

been imposed, the records shall be forwarded to the Supreme Court,
whether the accused shall have appealed or not, for review and
judgment, as law and justice shall dictate.
SECTION 2. Bail Pending Appeal. An accused who has

been released on bail shall not committed to jail upon conviction
pending the expiration of the period for appeal or pending an appeal
seasonably taken, except when the penalty imposed is reclusion
perpetua or death, in which case, the accused may forthwith be
committed to jail after promulgation of the sentence. The division of
the Sandiganbayan concerned, however, may, for good cause, cancel
the bond or increase the amount of bail and commit the accused
into custody pending appeal, unless he gives bail in the increased
amount. The surely shall also be responsible for the surrender or
the accused after judgment shall have become final.
RULE XIV
PUBLICATION OF DECISIONS
With the consent of the respective writers thereof, the

decisions of the Sandiganbayan may be published in the Official
Gazette in the language in which they have been originally written.
490
The syllabi for the decisions shall be prepared by the Clerk of Court
in consultation with writers thereof.
RULE XV
APPLICABILITY OF THE RULES OF COURT
Except as otherwise herein provided or as may hereafter

be modified from time to time by the Sandiganbayan and insofar
as practicable, the Rules of Court shall govern proceedings in the
Sandiganbayan.
RULE XVI
SEAL OF THE SANDIGANBAYAN
The seal of the Sandiganbayan shall be of standard size,

circular in form, consisting of two concentric circles as its margin,
with the inscription, running from left to right, on the upper margin
of the word “Sandiganbayan” and on the lower margin of the words
“Republika ng Pilipinas”; with 16 stars, representing the existing
16 judicial districts, immediately along the outer edge of the inner
circle; and with a design at the center of a triangle, with a trisected
area composed of the national colors of white on its upper part, blue
on the left and red on the right, with the words “KATAPATAN” on the
right side, “KAPANAGUTAN” on the left side, and “KARANGALAN”
on the base; a star in each corner of the triangle representing Luzon,
Visayas and Mindanao; and a bolo inside the triangle on which is
superimposed a balance.
RULE XVII
SEPARABILITY CLAUSE
If, for any reason, any section or provision of these Rules

shall be held to be unconstitutional or invalid, no other section or
provision thereof shall be effected thereby.
491
RULE XVIII
EFFECTIVITY
The Rules shall take effect upon approval.

year of Our Lord, nineteen hundred and seventy-nine.
492
REVISING PRESIDENTIAL DECREE NO. 1487 CREATING THE

OFFICE OF THE OMBUDSMAN, TO BE KNOWN AS
TANODBAYAN
To give effect to the constitutional right of the people to

petition the government for redress for grievances and to promote
higher standards of integrity and efficiency in the government
service, I, FERDINAND E. MARCOS, President of the Philippines,
by virtue of the powers vested in me under the Constitution, hereby
order and decree as follows:
SECTION 1. Short Title. – This Decree may be cited as the

Tanodbayan Decree.
SEC. 2. Establishment of Office. – An independent office of

the Ombudsman, to be called the Tanodbayan, is hereby established.
The Tanodbayan shall have two Deputies for Luzon, one for the
Visayas and one for Mindanao.
SEC. 3. Appointment. –The President shall appoint the

Tanodbayan and his Deputies.
SEC. 4. Qualifications. – The Tanodbayan and his Deputies

shall be members of the bar, well equipped to analyze problems
of law, administration, and public policy and shall not have been
actively involved in partisan affairs;
SEC. 5. Disqualifications. – The Tanodbayan and his

Deputies shall not, during their tenure in office, engage in the
practice of any profession or in the management of any business,
or be financially interested directly or indirectly in any contract
with or in any franchise or privilege granted by, the Government,
or any subdivision, agency, or instrumentality thereof including
493
SEC. 6. Terms of Office.— (a) The Tanodbayan and his

Deputies shall serve for a term of seven years without reappointment
unless removed by the President upon his determination that the
Tanodbayan or any of Deputies has become incapacitated or has
been guilty of neglect of duty, or misconduct.
(a) If the Office of Tanodbayan becomes vacant for any cause,

the Senior Deputy Tanodbayan shall serve as Acting Tanodbayan
until the Tanodbayan shall have been appointed for a full term.
SEC. 7. Salary.— Unless otherwise provided by law, the

Tanodbayan and each Deputy Tanodbayan shall receive an annual
salary of sixty thousand pesos and fifty thousand pesos, respectively,
which shall not be diminished during their continuance in office.
SEC. 8. Organization of Office.— (a) The Tanodbayan

may select, appoint, and compensate in accordance with the Civil
Service law and within the amount available by appropriation, such
assistants and employees for the national and local offices thereof
as he may deem necessary to discharge his responsibilities under
this Decree;
(a) The Tanodbayan shall designate one of his Deputies to

be the Senior Deputy Tanodbayan, with authority to act in his stead
when he himself is disabled or protractedly absent;
(b) The Tanodbayan may delegate to other members of his

staff any of his authority or duties under this Decree except this power
of delegation and the duty of formally making recommendations to
administrative agencies or reports to the President or the National
Assembly.
SEC. 9. Definitions. – As used in this Decree, the term
(a) “Administrative agency” means any department or other

governmental unit including any government-owned or controlled
corporation, any official, or any employee acting or purporting to
494
act by reason of connection with the government but it does not

include (1) any court or judge, or appurtenant judicial staff; (2) the
members, committees or staffs of the National Assembly except
members thereof performing executive functions; (3) the President
or his personal staff; and (4) the members of the Constitutional
Commissions and their personal staffs.
(b) “Administrative act” refers to any action including

decisions, omissions, recommendations, practices, or procedures of
an administrative agency.
(c) “Failure of justice” refers to the defeat of a particular

right, or of the failure or reparation for a particular wrong, from the
lack or inadequacy of a legal remedy for the enforcement of the one
or the redress of the other.
SEC. 10. Powers. – The Tanodbayan shall have the following

powers:
(a) He may investigate, on complaint by any person or on his

own motion or initiative, any administrative act whether amounting
to any criminal offense or not of any administrative agency including
any government-owned or controlled corporation;
(b) He shall prescribed the methods by which complaints

are to be made, received, and acted upon; he may determine the
scope and manner of investigations to be made; and, subject to the
requirements of this Decree, he may determine the form, frequency,
and distribution of his conclusions and recommendations;
(c) He may request and shall be given by each administrative

agency the assistance and information he deems necessary to
the discharge of his responsibilities; he may examine the records
and documents of all administrative agencies; and he may enter
and inspect premises within any administrative agency’s control,
provided, however, that where the President in writing certifies that
such information, examination or inspection might prejudice the
495
national interest, the Tanodbayan shall desist. All information so

obtained shall be confidential, unless the President, in the interest
of public service, decides otherwise;
(d) He may issue a subpoena to compel any person to appear,

give sworn to testimony, or produce documentary or other evidence
the Tanodbayan deems relevant to a matter under his inquiry;
(e) He may undertake, participate in, cooperate with

general studies or inquiries, whether or not related to any
particular administrative agency or any particular administrative
act; if he believes that they may enhance knowledge about or lead to
improvements in the functioning of administrative agencies.
SEC. 11. Matters Appropriate for Investigation.— (a) In

selecting matters for his attention, the Tanodbayan should address
himself particularly to an administrative act that might be
1. contrary to law or regulation;
2. unreasonable, unfair, oppressive, or inconsistent with

the general course of an administrative agency’s functioning;
3. mistaken in law or arbitrary in ascertainments of facts;
4. improper in motivation or based on irrelevant

considerations;
5. unclear or inadequately explained when reasons should

have been revealed;
6. inefficiently performed; or
7. otherwise objectionable;
(b) The Tanodbayan may concern himself also with

strengthening procedures and practices which lessen the risk of
occurrence of any objectionable administrative acts.
496
SEC. 12. Action on Complaints.— (a) The Tanodbayan may

receive a complaint from any source concerning an administrative
act. At no expense to the complainant, he shall conduct a suitable
investigation into the things complained of unless he believes that
1. the complainant has available to him another remedy or

channel of complaint which he could reasonably be expected to use;
2. the grievance pertains to a matter outside the

Tanodbayan’s power;
3. the complainant’s interest is insufficiently related to the

subject matter;
4. the complaint is trivial, frivolous, vexatious, or not made

in good faith;
5. other complaints are worthy of attention;
6. the Tanodbayan’s resources are insufficient for adequate

investigation; or
7. the complaint has been too long delayed to justify present

examination of its merits.
(b) After completing his consideration of a complaint whether

or not it has been investigated, the Tanodbayan shall suitably inform
the complaint and, when appropriate, the administrative agency or
agencies involved.
(c) A letter to the Tanodbayan from a person in a place of

detention or in a hospital or other institution under the control of an
administrative agency shall be immediately forwarded, unopened,
to the Tanodbayan.
SEC. 13. Consultation with Agency. – Before announcing a

conclusion or recommendation that criticizes and administrative
497
agency or any person, the Tanodbayan shall consult with that

agency or person.
SEC. 14. Recommendations. – (a) If, having considered

a complaint and whatever material he deems pertinent, the
Tanodbayan is of the opinion that an administrative agency
should (1) consider the matter further, (2) modify or cancel an
administrative act, (3) alter a regulation or ruling, (4) explain fully
the administrative act in question, or (5) take any other step, he
shall state his recommendations to the administrative agency. If the
Tanodbayan so requests, the agency shall, within the time he has
specified, inform him about the action taken on his recommendations
or the reasons for not complying with them;
(b) If the Tanodbayan believes that an administrative action

has been dictated by laws whose results are unfair or otherwise
objectionable, he shall bring to the notice of the National Assembly
his views concerning desirable statutory change.
SEC. 15. Publication or Recommendations. – The Tanodbayan

may publish his conclusions, recommendations, and suggestions
by transmitting them to the President, the National Assembly, or
any of its committees, the press, and others who may be concerned.
When publishing an opinion adverse to an administrative agency
or official he shall, unless excused by the agency or official affected,
include the substance of any statement the administrative agency or
official may have made to him by way of explaining past difficulties
or present rejection of the Tanodbayan’s proposals.
SEC. 16. Reports. – In addition to whatever reports he may

make from time to time, the Tanodbayan shall on or about August
15 of each year report to the National Assembly and to the President
concerning the exercise of his functions during the preceding
calendar year. This report shall be published in the Official Gazette
and copies thereof shall be furnished the provincial governors and
city mayors. In discussing matters with which he has dealt, the
Tanodbayan need not identify those immediately concerned if to
498
do so would cause needless hardship. So far as the annual report

may criticize named agencies or officials; it must also include the
substance of their replies to the criticism.
SEC. 17. Office of the Chief Special Prosecutor. – There is

hereby created in the Office of the Tanodbayan an Office of the
Chief Special Prosecutor composed of a Chief Special Prosecutor, an
Assistant Chief Special Prosecutor, and nine (9) Special Prosecutors,
who shall have the same qualifications as provincial and city
fiscals and who shall be appointed by the President; Provided, that
the President may, in his discretion, designate the Chief State
Prosecutor of the Ministry of Justice or any other ranking official in
the prosecutory arm of the government as Ex-Officio Chief Special
Prosecutor and/or Assistant Chief Special Prosecutor. Except when
the offices of the Chief State Prosecutor and/or Assistant Chief
Special Prosecutor are filled by designation or held in an ex-officio
capacity as above-provided, in which case the incumbents shall not
receive any additional compensation other than such allowances,
per diems and traveling expenses as may be determined by the
Tanodbayan in accordance with existing law, rules and regulation,
the Chief Special Prosecutor shall have an annual compensation of
P40,000.00, the Assistant Chief Special Prosecutor of P38,000.00,
and Special Prosecutors of P34,000.00, which shall not be diminished
during their continuance in office.
The Chief Special Prosecutor, the Assistant Chief Special

Prosecutor, and the Special Prosecutors shall have the exclusive
authority to conduct preliminary investigation of all cases cognizable
by the Sandiganbayan; to file information thereof and to direct and
control the prosecution of said cases therein; Provided, however,
that the Tanodbayan may, upon recommendation of the Chief
Special Prosecutor, designate any fiscal, state prosecutor or lawyer
in the government service to act as Special Prosecutor to assist in
the investigation and prosecution of all cases cognizable by the
Sandiganbayan who shall not receive any additional compensation
except such allowances, per diems and traveling expenses as the
Tanodbayan may determine in accordance with existing laws, rules
and regulations.
499
No publicity shall be allowed during the pendency of such

preliminary investigation and the name of the complainant and the
accused shall not be made public until an information is filed with
the Sandiganbayan.
The Chief Special Prosecutor, Assistant Chief Special

Prosecutor, Special Prosecutors and Prosecutor/lawyers designated
as herein provided shall have the authority to administer oaths, to
issue subpoena and subpoena duces tecum, to summon and compel
witnesses to appear and testify under oath before them and/or to
bring books, documents, and other things under their control, and
to secure the attendance or presence of any absent or recalcitrant
witness through application before the Sandiganbayan or before
any inferior or superior court having jurisdiction of the place where
the witness or evidence is found.
The Chief Special Prosecutor, Assistant State Prosecutor,

Special Prosecutor and those designated to assist them as herein
provided for shall be under the control and supervision of the
Tanodbayan and their resolutions and actions shall not be subject
to review by any administrative agency.
SEC. 18. Special Investigators.— To assist the Chief Special

Prosecutor in the performance of his duties, and Tanodbayan may,
upon recommendation of the Chief Special Prosecutor, appoint and
compensate such number of Special Investigators and subordinate
personnel as may be deemed necessary thereof, and/or detail to the
Office of the Chief Special Prosecutor, any officer or employees of the
Government or of any government-owned or controlled corporation;
provided, that those designated shall not receive additional
compensation except per diems, traveling and necessary expenses
as may be determined by the Tanodbayan in accordance with
existing laws, rules and regulations. The Special Investigators and
subordinate personnel shall be under the supervision and control of
the Chief Special Prosecutor and their appointment shall be subject
to the Civil Service law and rules.
500
The Tanodbayan may, upon proper request of the Chief

Special Prosecutor, require the assistance and services of any
department, agency or bureau of the government or of any
government-owned or controlled corporation in the performance of
his duties and functions as herein provided.
SEC. 19. Prosecution of Public Personnel or Other person.

– If the Tanodbayan has reason to believe that any public official,
employee, or other person has acted in a manner warranting
criminal or disciplinary action or proceedings, he shall cause him
to be investigated by the Office of the Chief Special Prosecutor who
shall file and prosecute the corresponding criminal or administrative
case before the Sandiganbayan or the proper court or before the
proper administrative agency. In case of failure of justice, the
Sandiganbayan shall make the appropriate recommendations to
the administrative agency concerned.
SEC. 20. Tanodbayan’s Immunities. – (a) No proceeding,

opinion or expression of the Tanodbayan or any member of his staff,
shall be reviewable in any court;
(b) No civil action shall lie against the Tanodbayan or

any member of his staff for anything done or said or omitted, in
discharging the responsibilities contemplated by this Decree;
(c) Neither the Tanodbayan nor any member of his staff

shall be required to testify or produce evidence in any judicial,
legislative or administrative proceeding concerning matters within
his official cognizance, except in a proceeding brought to enforce
this Decree.
SEC. 21. Rights and Duties of Witnesses. (a) A person

required by the Tanodbayan to provide information shall be paid
whose attendance has been required in the courts of first instance.
501
(b) A person who, with or without service of compulsory

process, provided oral or documentary information requested by the
Tanodbayan shall be accorded the same privileges and immunities
as are extended to witnesses in the courts, and shall also be entitled
to be assisted by counsel while being questioned.
(c) If a person refuses to respond to the Tanodbayan’s

subpoena, refuses to be examined or engages in obstructive misconduct,
the Tanodbayan shall certify the facts to the Sandiganbayan
or the court of first instance. The court shall thereupon issue an
order directing the person to appear before it to show cause why
he should not be punished as for contempt. The order and copy of
the tanodbayan’s certified statement shall be served on the person.
Thereafter the court shall have jurisdiction of the matter. The same
proceedings shall be had, the same penalties may be imposed, and
the person charged may purge himself of the contempt in the same
way as in the case of a person who has committed a contempt in the
trial of a criminal or civil action before the court.
SEC. 22. Obstruction. – A person who willfully obstructs or

hinders the proper exercise of the Tanodbayan’s functions or who
willfully misleads or attempts to mislead the Tanodbayan in his
inquiries, shall be fined not more than P5,000.00.
SEC. 23. Repealing Clause and Relation to Other Laws.

Republic Act No. 6028 and all laws, General Orders. – Presidential
Decrees, Letters of Instructions, rules and regulations inconsistent
with this Decree are hereby repealed; but, otherwise, the provisions
of this Decree are in addition to and do not limit or affect the
provisions of any other enactment under which any remedy or right
of appeal is provided for any person, or any procedure is provided for
the inquiry into or investigation of any matter. The powers conferred
on the Tanodbayan may be exercised notwithstanding any provision
in any enactment that any administrative action shall be final or
unappealable.
502
SEC. 24. Appropriation. – There is hereby appropriated the

sum of Five Million Pesos (P5,000,000.00) to carry out the provisions
of this Decree. Thereafter the appropriation for the Office of the
Tanodbayan shall be included in the general appropriations act.
DONE in the City of Manila, this 10th day of December, in

the year of Our Lord, nineteen hundred and seventy-eight.

By the President:

503
AMENDING PRESIDENTIAL DECREE NO. 1276, ENTITLED

“AUTHORIZING THE CENTRAL BANK OF THE
PHILIPPINES TO CONTINUE THE IMPLEMENTATION
OF ITS REWARD SYSTEM FOR INFORMATION LEADING
TO THE CONFISCATION OF GOLD AND FOREIGN
EXCHANGE”
WHEREAS, the government has launched an intensified

campaign against lawless elements of society including those who are
involved in the smuggling of gold, foreign exchange and Philippine
Currency in violation of existing laws and regulations; and
WHEREAS, in pursuance of said campaign, there is a

necessity to increase the reward payable to persons who supply
information regarding these illegal activities;

SECTION 1. Section 1 of Presidential Decree No. 1276 is

“SEC. 1. The provisions of any existing law to the contrary

notwithstanding, Central Bank of the Philippines is hereby
authorized to continue implementing its reward system for
information leading to the confiscation and forfeiture in favor of
the National Government, of gold, foreign exchange and Philippine
Currency held in violation of existing laws and regulations: Provided,
however, That the amount of reward shall be in such amount as may
be fixed by the Monetary Board, but in no case to exceed twenty per
cent (20%) of the proceeds of the forfeited gold, foreign exchange or
Philippine Currency.”
504
DONE in the City of Manila, this 9th day of February in the


By the President:

505
AMENDING PRESIDENTIAL DECREE NO. 1486, CREATING A

SPECIAL COURT TO BE KNOWN AS “SANDIGANBAYAN”,
AS REVISED BY PRESIDENTIAL DECREE NO. 1606
WHEREAS, it has been found necessary, to amend Section

11 of Presidential Decree No. 1486, as revised by Presidential Decree
No. 1606;


hereby amended by deleting the second paragraph thereof.
DONE in the City of Manila, this 18th day of July, in the


By the President:

506
CONDONING PENALTIES FOR CERTAIN VIOLATIONS OF THE

INCOME TAX LAW UPON VOLUNTARY DISCLOSURE OF
UNDECLARED INCOME FOR INCOME TAX PURPOSES
AND REQUIRING PERIODIC SUBMISSION OF NET
WORTH STATEMENT
WHEREAS, the Bureau of Internal Revenue has launched

an extensive and thorough investigation of income tax returns for
the purpose of ferreting out individuals who have under-declared
their net taxable income for the years 1974 to 1979;
WHEREAS, individuals who, after investigation, are found

to have incorrectly paid their income tax liabilities for the aforesaid
years through deliberate of failure to report taxable income, willful
understatement of gross income or intentional filing of claims for
fictitious deductions or exemptions, will be assessed the 50% fraud
penalty and thereafter will be prosecuted for purposes of seeking
their conviction;
WHEREAS, there is a substantial number of individuals who

have evaded payment of income taxes and who are now amenable to
the filing of amended tax returns where they will voluntarily declare
their true and correct taxable income if given the opportunity to do
so without the payment of the corresponding surcharges, penalties
and interests;
WHEREAS, there is an urgent need to up-date the

government’s statistics on the assets, liabilities and net worth
of taxpayers in the country for purposes of tax and economic
development planning.
WHEREAS, the statement of assets, liabilities and net

worth filed by taxpayers under Presidential Decrees Nos. 379
and 631 is considered by the government for tax purposes, as
their true and accurate net worth as of January 1, 1974 and any
unexplained increase in their respective net worth after that date
507
shall be presumed as taxable income in the year when such increase

occurred, was established or discovered.

the Constitution do hereby order and decree:
SECTION 1. Voluntary Disclosure of Correct Taxable Income.

Any individual who, for any or all of the taxable years 1974 to 1979,
had failed to file a return is hereby, allowed to file a return for each
of the aforesaid taxable years and accurately declare therein the
true and correct income, deductions and exemptions and pay the
income tax due per return. Likewise, any individual who filed a false
or fraudulent return for any taxable year in the period mentioned
above may amend his return and pay the correct amount of tax
due after deducting the taxes already paid, if any, in the original
declaration.
XXX XXX XXX
SEC. 8. Unlawful divulgence of information.
(a) No information contained in the statement herein

required shall be published except in the form of tabulations and
summaries having no specific reference to the individual filing the
statement.
(b) Except for internal revenue tax purposes, it shall be

unlawful for any officer or employee of the Bureau of Internal Revenue
or any government entity having knowledge of such declaration
of assets, liabilities and net worth to disclose to any person any
shall subject such offender to a fine in the amount of not less than
five thousand pesos or imprisonment for not less than two years, or
both, and shall be summarily dismissed from the service for cause.
XXX XXX XXX
508
SEC. 11. The Ministry of Finance shall, upon the

recommendation of the Commissioner of Internal Revenue
implementation of the provisions of this Decree.
SEC. 12. Effectivity. This Decree shall take effect upon

approval.
Done in the City of Manila, this 17th day of September, in

the year of Our Lord, nineteen hundred and eighty.
509

MEMBERS OF THE ARMED FORCES CHARGED WITH
OFFENSES RELATED TO THE PERFORMANCES OF
THEIR DUTIES
WHEREAS, under the P.D. No. 1606, members of the armed

forces in the active service who commit crimes in relation to their
office do not fall within the jurisdiction of the Tanodbayan and the
Sandiganbayan during the period of martial law;
WHEREAS, under the Articles of War, not all offenses

committed by persons subject to military law in relation to the
performance of their duties are triable by courts-martial;
WHEREAS, it is sound and wise policy long recognized in

civilized countries that members of the armed forces charged with
offenses related to the performance of their duties have the right to
demand trial courts-martial composed of their own peers;
WHEREAS, there is a need to clarify existing provisions of

law relating to the jurisdiction of courts-martial created under the
Articles of War in order to vest exclusive jurisdiction in said court-
martial over all crimes and offenses committed by members of the
Armed Forces in relation to the performance of their duties;

SECTION 1. Any provision of existing law to the contrary

notwithstanding, all officers, soldiers and personnel in the active
service of the Armed Forces of the Philippines, or of the Philippine
Constabulary, charged with any crime or offenses related to the
performance of their duties shall exclusively be tried and punished
as a court-martial may direct pursuant to the Articles of War;
510
SEC. 2. The provisions of Commonwealth Act No. 403,

Presidential Decree No. 1606, General Order No. 69, and all other
laws and issuances inconsistent herewith are hereby repealed.
This decree shall take effect immediately.

year of Our Lord, nineteen hundred and eighty-one.
(SGD.) FERDINAND E. MARCOS

By the President:
(SGD.) JOAQUIN T. VENUS, JR.

Deputy Presidential Executive Assistant
511
PRESIDENTIAL DECREE NO. 1822-A
AMENDING SECTION 1, PRESIDENTIAL DECREE NO. 1822,

PROVIDING FOR TRIAL BY COURTS-MARTIAL OF
MEMBERS OF THE ARMED FORCES CHARGED WITH
OFFENSES RELATED TO THE PERFORMANCE OF
THEIR DUTIES
WHEREAS, under P.D. No. 1822, members of the Armed

Forces of the Philippines in the active service who commit crimes
in relation to their office are considered excluded from jurisdiction
of the Tanodbayan and the Sandiganbayan even after the lifting of
Martial Law;
WHEREAS, such officers, soldiers and personnel of the

Armed Forces including the Philippine Constabulary charged with
any crime or offense related to the performance of their duties shall
be exclusively tried and punished as a court martial may direct
pursuant to the Articles of War as provided for in said presidential
decree;
WHEREAS, there are special cases wherein members of

the Armed Forces are jointly tried with members of the Integrated
National Police or with civilians; and
WHEREAS, to avoid the splitting of jurisdiction on such

special cases where members of the Armed Forces of the Philippines,
are charged together with defendants who do not fall within the
jurisdiction of courts martial, it becomes imperative to charge and
try them jointly.

“SECTION 1. Any provision of existing law to the contrary

notwithstanding, all officers, soldiers, and personnel in the
active service of the Armed Forces of the Philippines, or of the
512
Philippine Constabulary charged with any crime or offense related

to the performance of their duties shall exclusively be tried and
punished as a court martial may direct pursuant to the Articles
of War; Provided, however, that in all cases or crimes wherein the
respondents or accused are the members of the Armed Forces of the
Philippines in the active service together with civilians and other
non-members of the Armed Forces, or in any other case in which
the interest of justice requires, the President of the Philippines may
waive the provisions of this Decree for the purpose of having all
the respondents or defendants investigated by the Tanodbayan and
tried by the Sandiganbayan.”
This decree shall take effect immediately.
Done in the City of Manila, this 16th day of January, in the

year of Our Lord, nineteen hundred and eighty-one.
(SGD.) FERDINAND E. MARCOS

By the President:
(SGD.) JUAN C. TUVERA

Presidential Executive Assistant
513
GRANTING A TAX AMNESTY ON UNTAXED INCOME AND/

OR WEALTH EARNED OR ACQUIRED DURING THE
TAXABLE YEARS 1974 TO 1980 AND REQUIRING THE
FILING OF THE STATEMENT OF ASSETS, LIABILITIES,
AND NET WORTH
WHEREAS, on account of the relatively complicated manner

of computing the tax to be paid under Presidential Decree No. 1740,
only a limited number of taxpayers have availed of the benefits of
the said Decree despite the grant of immunity from investigation;
WHEREAS, to maximize the availment of tax amnesty and

invite the voluntary disclosure of untaxed income or wealth and
encourage the investment of such funds in productive enterprises,
there is a need to simplify the determination of the amnesty tax to
be paid; and
WHEREAS, it is the desire to afford full opportunity for

individual taxpayers to come within the fold of the tax reforms
and to provide them with a clean start for the adoption of the gross
income taxation scheme.

President of the Republic of the Philippines, by virtue of the powers
in me vested by the Constitution, do hereby decree and order that:
SECTION 1. Coverage. - In case of voluntary disclosure

of previously untaxed income and/or wealth such as earnings,
receipts, gifts, bequests or any other acquisition from any source
whatsoever, realized here or abroad, by any individual taxpayer,
which are taxable under the National Internal Revenue Code, as
amended, the assessment and collection of all internal revenue taxes,
including the increments or penalties on account of non-payment,
as well as all civil, criminal or administrative liabilities arising from
or incident thereto under the National Internal Revenue Code, are
hereby condoned provided that the individual taxpayer shall pay.
514
a) a tax of twenty per centum (20%) on such previously

untaxed income or wealth in the case of resident citizens or resident
aliens; or
b) a tax of two per centum (2%) on such previously untaxed

income converted in U.S. dollars derived from sources abroad, in the
case of non-resident citizens.
Those who have already availed of the benefits granted under

Presidential Decree No. 1740 and its implementing regulations may
also take advantage of the benefits provided for under this Decree
and shall be allowed to credit any amount previously paid under
Presidential Decree No. 1740 against the amnesty tax payable
under this Decree.
SEC. 2. Conditions for Immunity. - The immunity granted

under Section one of this Decree shall apply only under the following
conditions:
a) Such previously untaxed income and/or wealth must

have been earned or realized in any of the years 1974 to 1980;
b) The taxpayer must file an amnesty return on or before

November 30, 1981, and fully pay the tax due thereon;
c) The amnesty tax paid by the taxpayer under this Decree

shall not be less than P1,000.00 per taxable year; and
d) The taxpayer must file a statement of assets, liabilities

and net worth as of December 31, 1980, as required under Section 6
hereof.
SEC. 3. Cases Not Covered by this Decree. - The tax amnesty

granted herein shall not apply to the following cases:
a) Criminal cases already filed in Court or with the Fiscal’s

Office on or before September 17, 1980;
515
b) Internal revenue tax cases involving civil liability which

are the subject of a pending criminal action in the Fiscal’s Office or
the Court prior to September 17, 1980;
c) Withholding tax at source liabilities provided for under

Sections 53, 54 and Chapter XI of Title II of the National Internal
Revenue Code; and transfer tax cases under Title III of the same
Code for which no certificate of clearance has as yet been issued;
and
d) Deficiency internal revenue taxes assessed on or before

September 17, 1980. For this purpose, the date of the assessment
notice shall be deemed to be the date of assessment of the deficiency
tax.
SEC. 4. Time, Manner and Place of Filing. - The tax amnesty

return shall be filed in the prescribed form with the Office of the
Regional Director, Revenue District Officer, Collection Agent or the
authorized Municipal Treasurer designated as collection officer of
the Bureau of Internal Revenue where the taxpayer has his legal
residence or place of business in the Philippines, or if he has no
legal residence or place of business in the Philippines, then with
the Commissioner of Internal Revenue, on or before November
30, 1981. In the case of Filipino citizens residing abroad, the tax
amnesty return shall be filed with the nearest Philippine Embassy
or Consulate abroad or with the Office of the Commissioner of
Internal Revenue.
The amnesty tax return must show the amount of untaxed

income and/or wealth for each year and the corresponding tax due
thereon.
SEC. 5. Payment of Tax on Installment. - The tax due as

disclosed by the taxpayer in his return must be paid at the time
of the filing thereof. If the total tax due exceeds P50,000, the same
shall be paid in accordance with the following schedule:
a) If the amount due exceeds P50,000 but does not exceed

P100,000, the tax may be paid in two equal installments, the first
516
installment to be paid upon the filing of the return and the second
installment, on or before January 31, 1982;
b) If the amount due exceeds P100,000, the tax may be paid

in three equal installments as follows:
i) The first installment shall be paid upon the filing of the

return;
ii) The second installment shall be paid on or before January

31, 1982; and
iii) The third installment shall be paid on or before March

31, 1982.
c) In meritorious cases where the total amount due exceeds

P300,000.00, the Commissioner of Internal Revenue or the Revenue
Regional Director may, upon proper application, allow the taxpayer
to pay the P300,000.00 in accordance with the immediately
preceding schedule and the amount in excess thereof in equal
monthly installments beginning June 30, 1982, up to but not later
than September 30, 1982.
d) If any installment payment is not paid on the due date

of said installment, the whole unpaid amount will become due and
demandable and shall be subject to interest and penalties imposed
under the Tax Code. The corresponding letter of demand and
assessment notice shall immediately be issued for the collection of
the amount due and increments thereon.
SEC. 6. Filing of Net Worth Statement. - (a) Persons required

to make a statement of one worth. - All individuals, whether a citizen
residing in the Philippines or abroad or any alien residing in the
Philippines owning assets and/or properties amounting to P50,000
or more as of December 31, 1980 and who is not required to file a
statement of assets, liabilities and net worth under Republic Act
No. 3019, as amended by Presidential Decree Nos. 677 and 1288
shall file a sworn statement of assets, liabilities and net worth as of
December 31, 1980.
517
(b) When and where to file. - The statement of assets,

liabilities and net worth as of December 31, 1980 shall be filed in
the prescribed form not later than November 30, 1981, with the
Commissioner of Internal Revenue, Regional Director, Revenue
District Officer, Collection Agent or the authorized Municipal
Treasurer who has been designated as collection officer of the Bureau
of Internal Revenue, where the taxpayer has his legal residence or
place of business in the Philippines, or if he has no legal residence
or place of business in the Philippines, the with the Commissioner
of Internal Revenue. In the case of non-resident citizens, they may
file their statement with the nearest consular office in the foreign
country where they reside or may file the statement directly with
the Commissioner of Internal Revenue.
SEC. 7. Valuation. - (a) Assets. — The value of the assets,

whether real or personal shall be the cost thereof if acquired by
purchase or the fair market value as of the date of acquisition if
acquired by exchange or by gratuitous title. If the property is used
in trade or business, the depreciated value as of December 31, 1980
shall be included in the statement. In the case of assets already
declared in the statement of assets and liabilities filed by the
taxpayer pursuant to Presidential Decree No. 379 or 631, the value
of such assets as declared therein shall be used.
(b) Liabilities. - Only liabilities and enforceable obligations

reducible in sums of money as of December 31, 1980 shall be included
in the statement.
SEC. 8. Penalties for failure to file statement or rendering

false or fraudulent statement. - Any individual required to file the
statement of assets, liabilities and net worth under this Decree
who knowingly makes a false declaration or who deliberately fails
to comply with any of the provisions hereof, shall upon conviction
pay a fine of not less than Five Thousand Pesos (P5,000.00) and
imprisonment of not less than two (2) years.
SEC. 9. Unlawful divulgence of information. - (a) No

information contained in the statements herein required shall be
518
published except in the form of tabulations and summaries having

no specified reference to the individual filing the statement.
(b) Except for internal revenue tax purposes, it shall be

unlawful for any officer or employee of the Bureau of Internal Revenue
or any government entity having knowledge of such declaration
of assets, liabilities and net worth to disclose to any person any
shall subject such offender to a fine in the amount of not less than
Five thousand pesos or imprisonment for not less than two years, or
both, and shall be summarily dismissed from the service for cause.
SEC. 10. The Ministry of Finance shall, upon the

recommendation of the Commissioner of Internal Revenue,
implementation of the provisions of this Decree.
SEC. 11. Repealing Clause. - Any provision of Presidential

Decree No. 1740 and all other issuances pertinent thereto which are
inconsistent herewith are hereby repealed or modified accordingly:
Provided, That those who have already filed the statement of assets,
liabilities and net worth prescribed under Presidential Decree No.
1740 need not file the statement required under this Decree.
SEC. 12. Effectivity. — This Decree shall take effect upon

approval.
Done in the City of Manila, this 19th day of September,

1981.

By the President:
JUAN C. TUVERA
519

MEMBERS OF THE INTEGRATED NATIONAL POLICE
AND FURTHER DEFINING THE JURISDICTION OF
COURTS-MARTIAL OVER MEMBERS OF THE ARMED
FORCES OF THE PHILIPPINES
WHEREAS, under Section 12, Article XV of the Constitution,

the State shall establish and maintain an integrated national police
force whose organization, administration, and operation shall be
provided by law;
WHEREAS, under and pursuant to existing laws, the

various municipal/city police and fire departments and jails have
been integrated into law-enforcement units under the operational
control and organization set-up of the Philippine Constabulary;
WHEREAS, in the interest of discipline and public service,

it is desirable that members of the Integrated National Police be
subject to trial by courts-martial under Commonwealth Act No.
408, as amended, otherwise known as the “Article of War for the
Armed Forces of the Philippines,” for all crimes of offenses which
are heretofore cognizable by the civil courts;
WHEREAS, as a complementary measure, there is a need

to clarify existing provisions of law relating to jurisdiction of courts-
martial and the Tanodbayan/Sandiganbayan and the regular civil
courts over crimes and offenses committed by members of the Armed
Forces of the Philippines.
NOW, THEREFORE, I, FERDINAND E, MARCOS,

SECTION 1. Court-Martial Jurisdiction over Integrated

National Police and Members of the Armed Forces. – Any provision
of law to the contrary notwithstanding – (a) uniformed members
520
of the Integrated National Police who commit any crime of offense

cognizable by the civil courts shall henceforth be exclusively tried by
courts-martial pursuant to and in accordance with Commonwealth
Act No. 408, as amended, otherwise known as the Articles of War; (b)
all persons subject to military law under Article 2 of the aforecited
Articles of War who commit any crime or offense shall be exclusively
tried by courts-martial or their case disposed of under the said
Articles of War; Provided, that, in either of the aforementioned
situations, the case shall be disposed of or tried by the proper civil or
judicial authorities when court-martial jurisdiction over the offense
has prescribed under Article 38 of Commonwealth Act Numbered
408, as amended, or court-martial jurisdiction over the person of
the accused military or Integrated National Police personnel can
no longer be exercised by virtue of their separation from the active
service without jurisdiction having duly attached beforehand unless
otherwise provided by law.
As used herein, the term uniformed members of the

Integrated National Police shall refer to police officers, policemen,
firemen and jail guards.
SEC. 2. Segregation of Criminal Cases of Armed Forces and

Integrated National Police from Civilian Co-accused. – In cases
where there are two or more accused one or some of whom is or
are civilian(s), the case against the latter shall be segregated from
accused Armed Forces or Integrated National Police member, and
filed with the appropriate civil court for trial in accordance with
existing laws; Provided, however, that should such civilian accused
waive in writing civil court jurisdiction and submit himself to court-
martial jurisdiction, then the whole case involving members of
the Armed Forces or the Integrated National Police as well as the
civilian(s) shall be referred for trial to a court-martial.
SEC. 3. Appointing Authorities. – (a) Where uniformed

member(s) of the Integrated National Police are charged. – The
President of the Philippines and the Chief of Constabulary/Director
General, Integrated National Police are hereby empowered to
appoint general, special and summary courts-martial for the trial
521
of uniformed members of the Integrated National Police. The

Constabulary Regional Commanders/Directors, Integrated National
Police may appoint special and summary courts-martial, and when
empowered by the President, they may also appoint general courts-
martial. Other subordinate field commanders of the Philippine
Constabulary/Integrated National Police may appoint summary
courts-martial when empowered by the President.
(b) Where military personnel and Integrated National Police

members are commonly charged. – The court-martial shall be
appointed by the appointing authorities specified in Articles 8, 9, 10
and 11 of Commonwealth Act No. 408, as amended.
SEC. 4. Composition of Courts-Martial. – Membership,

whether military personnel or Integrated National Police members,
in a general or special court-martial for the trial of a member of
the Integrated National Police shall be in a ratio as determined by
the appointing authority; Provided, however, that the number of
Integrated National Police personnel detailed shall not be less than
one-third of the total membership of the court.
SEC. 5. Administrative Action. – Court-martial action

against uniformed personnel of the Integrated National Police as
herein provided shall not preclude the taking of administrative
action against said personnel as may be warranted pursuant to the
provisions of existing law.
SEC. 6. Transitory Provisions. – All cases pending before the

civil courts against military personnel in the active service Integrated
National Forces of the Philippines or against Integrated National
Police personnel where, on the effective date of this Decree, the
accused have been arraigned, shall continue to be tried and decided
by said civil courts. All other cases against such personnel shall be
tried by courts-martial or disposed of pursuant to this Decree.
SEC. 7. Promulgation of Rules. – The Chief of Staff, AFP,

shall formulate rules and regulations necessary to carry out the
provisions of this Decree, which shall, upon recommendation of
522
the Minister of National Defense, be subject to the approval of the

President.
SEC. 8. Appropriations. – The amount of two million pesos

(P2,000,000.00) is hereby authorized to be appropriated out of the
funds in the National Treasury not otherwise appropriated to carry
out the purpose of this Decree and, thereafter, such amounts as
may be necessary for this purpose shall be included in the annual
appropriation of the Integrated National Police.
SEC. 9. Repealing Clause. – All laws, rules and regulations,

or portions thereof, which are contrary to, or inconsistent with,
the provisions of this Decree, are hereby repealed or modified
accordingly.
SEC. 10. Effectivity. – This Decree shall take effect

immediately.
DONE in the City of Manila, this 4th day of October, the year
of Our Lord, nineteen hundred and eighty-two.

By the President:

523

DECREE NO. 1606 AND BATAS PAMBANSA BLG.
129 RELATIVE TO THE JURISDICTION OF THE
SANDIGANBAYAN AND FOR OTHER PURPOSES
WHEREAS, Batas Pambansa Blg. 129 has simplified the

rules on jurisdiction by, among others, abolishing the concurrent
jurisdiction of the Sandiganbayan and the regular courts;
WHEREAS, Batas Pambansa Blg. 129 expanded the

exclusive original jurisdiction of the Sandiganbayan over the offenses
enumerated in Section 4 of the Presidential Decree No. 1606, to
embrace all such offenses irrespective of the imposable penalty;
WHEREAS, there has been a proliferation and marked

increased in the filing of cases before the Sandiganbayan where the
offense charged is punishable by a penalty not higher than prision
correccional or its equivalent;
WHEREAS, unless otherwise authorized by its Presiding

Justice, the Sandiganbayan holds its sessions at its principal
office in Metro Manila, so that public officials accused of offenses
punishable by a penalty not higher than prision correccional or its
equivalent, and their witnesses, have to undergo the inconvenience
of and incur unnecessary expenses in attending hearings before the
Sandiganbayan;
WHEREAS, considering that cases where the offense charged

is punishable by a penalty not exceeding prision correccional or its
equivalent are not of a serious nature, it would be more expeditious
and less cumbersome for the parties and witnesses if the cases are
tried by the proper Regional Trial Court, Metropolitan Trial Court,
Municipal Trial Court or Municipal Circuit Trial Court.
524

President of the Philippines, by virtue of powers vested in me by the
Constitution, do hereby order and decree as follows:

“Sec. 4. Jurisdiction. — The Sandiganbayan shall have

jurisdiction over:
“(a) Violations of Republic Act No. 3019, as amended,

otherwise known as the Anti-Graft and Corrupt Practices Act, and
“(b) Crimes committed by public officers and employees,

corporations, embraced in Title VII of the Revised Penal Code,
whether simple or complexed with other crimes; and
“(c) Other crimes or offenses committed by public officers

or employees, including those employed in government-owned or
controlled corporations, in relation to their office.
“The jurisdiction herein conferred shall be original and

exclusive if the offense charged is punishable by a penalty higher
than prision correccional or its equivalent. In all other offenses,
original and exclusive jurisdiction shall vest in the appropriate court
in accordance with the provisions of Batas Pambansa Blg. 129.

accomplices or accessories together with the public officers or
employees, including those employed in government-owned or
controlled corporations, they shall be tried jointly with said public
officers and employees.
525
“Where an accused is tried of any of the above offenses and

the evidence is insufficient to establish the offense charged, he may
nevertheless be convicted of and sentenced for the offense proved,
included in that which is charged.
“Any provision of law or the Rules of Court to the contrary

jointly determined in the same proceeding by, the Sandiganbayan
or the appropriate court. The filing of the criminal action shall be
criminal action shall be recognized; Provided, however, That, in cases
within the exclusive original jurisdiction of the Sandiganbayan,
where the civil action had been filed separately with a regular court
but judgment therein has not been rendered and the criminal case
is hereafter filed with the Sandiganbayan, said civil action shall
be transferred to the Sandiganbayan for consolidation and joint
determination with the criminal action, otherwise, the criminal
action may no longer be filed with the Sandiganbayan, its exclusive
jurisdiction over the same notwithstanding, but may be filed and
prosecuted only in the regular courts of competent jurisdiction.”
SEC. 2. Section 20 of Batas Pambansa Blg. 129 is hereby

modified accordingly to reflect the above amendment.
SEC. 3. The provisions of this decree notwithstanding,

the Office of the Tanodbayan shall continue to have the exclusive
authority to conduct preliminary investigation, file the necessary
information, and direct and control the prosecution of all cases
enumerated in Section 4 of Presidential Decree No. 1606, whether
such cases be within the exclusive jurisdiction of the Sandiganbayan
or the regular courts in accordance with the provisions of Presidential
Decree No. 1630.
526
SEC. 4. All other laws, orders, promulgations, rules and

regulations or parts thereof, which are inconsistent herewith are
hereby amended, repealed or modified accordingly.

year of Our Lord, nineteen hundred and eighty-three.

By the President:

527

DECREE NO. 1606 AND BATAS PAMBANSA BLG.
129 RELATIVE TO THE JURISDICTION OF THE
SANDIGANBAYAN AND FOR OTHER PURPOSES
WHEREAS, Batas Pambansa Blg. 129 has simplified the

rules on jurisdiction by, among others, abolishing the concurrent
jurisdiction of the Sandiganbayan and the regular courts;
WHEREAS, Batas Pambansa Blg. 129 expanded the

exclusive original jurisdiction of the Sandiganbayan over the
offenses enumerated in Section 4 of Presidential Decree No. 1606,
to embrace all such offenses irrespective of the imposable penalty;
WHEREAS, there has been a proliferation and marked

increase in the filing of cases before the Sandiganbayan where the
offense charged is punishable by a penalty not higher than prision
correccional or its equivalent; and
WHEREAS, to insure that the prosecution of offenses

committed by public officers and employees, including those
employed in government-owned or controlled corporations, shall be
as inexpensive and as expeditious as possible, and in keeping with
the constitutional mandate constituting the Sandiganbayan as a
special court to try cases involving graft and corruption, and other
offenses committed by public officers and employees in relation to
their office, it is necessary and desirable that certain cases shall be
triable by the appropriate courts, with appellate jurisdiction over
these cases to be vested in the Sandiganbayan.

the Constitution, do hereby order and decree as follows:

528
“Sec. 4. Jurisdiction. — The Sandiganbayan shall exercise:
“(a) Exclusive original jurisdiction in all cases involving:
(1) Violations of Republic Act No. 3019, as amended,

otherwise known as the Anti-Graft and Corrupt Practices Act,
Republic Act No. 1379, and Chapter II, Section 2, Title VII of the
Revised Penal Code;
(2) Other offenses or felonies committed by public officers

and employees in relation to their office, including those employed
in government-owned or controlled corporations, whether simple
or complexed with other crimes, where the penalty prescribed by
law is higher than prision correccional or imprisonment for six (6)
years, or a fine of P6,000.00: Provided, however, That offenses or
felonies mentioned in this paragraph where the penalty prescribed
by law does not exceed prision correccional or imprisonment for six
(6) years or a fine of P6,000.00 shall be tried by the proper Regional
Trial Court, Metropolitan Trial Court, Municipal Trial Court and
Municipal Circuit Trial Court.
“(b) Exclusive appellate jurisdiction:
(1) On appeal, from the final judgments, resolutions or

orders of the Regional Trial Courts in cases originally decided by
them in their respective territorial jurisdiction.
(2) By petition for review, from the final judgments,

resolutions or orders of the Regional Trial Courts in the exercise
of their appellate jurisdiction over cases originally decided by the
Metropolitan Trial Courts, Municipal Trial Courts and Municipal
Circuit Trial Courts, in their respective jurisdiction.
“The procedure prescribed in Batas Pambansa Blg. 129, as

well as the implementing rules the Supreme Court has promulgated
and may hereinafter promulgate, relative to appeals/petitions for
review to the Intermediate Appellate Court shall apply to appeals
529
elevated to the Sandiganbayan, the Office of the Tanodbayan shall

represent the People of the Philippines.

corporations, they shall be tried jointly with said public officers and
employees.
“Any provision of law or the Rules of Court to the contrary

jointly determined in the same proceeding by the Sandiganbayan
or the appropriate courts, the filing of the criminal action being
criminal action shall be recognized: Provided, however, That where
the civil action had heretofore been filed separately but judgment
therein has not yet been rendered, and the criminal case is hereafter
filed with the Sandiganbayan or the appropriate court, said civil
action shall be transferred to the Sandiganbayan or the appropriate
court, as the case may be, for consolidation and joint determination
with the criminal action, otherwise the separate civil action shall be
considered abandoned.”
SEC. 2. All cases pending in the Sandiganbayan or in the

appropriate courts as of the date of the effectivity of this Decree
shall remain with and be disposed of by the courts where they are
pending.
SEC. 3. The provisions of this Decree notwithstanding,

the Office of the Tanodbayan shall continue to have the exclusive
authority to conduct preliminary investigation, file the necessary
information, and direct and control the prosecution of all cases
enumerated in Section 4 of Presidential Decree No. 1606, whether
such cases be within the exclusive original/appellate jurisdiction of
the Sandiganbayan or the appropriate courts in accordance with the
provisions of Presidential Decree No. 1630.
530
SEC. 4. All other laws, orders, promulgations, rules and

regulations or parts thereof, which are inconsistent herewith are
hereby amended, repealed or modified accordingly.
DONE in the City of Manila, this 23rd day of March, in the

year of Our Lord, nineteen hundred and eighty-three.
FERDINAND E. MARCOS
BY THE PRESIDENT:

531
THE GOVERNMENT OF THE PHILIPPINE ISLANDS,

EXECUTIVE BUREAU
MANILA, May 16, 1903
EXECUTIVE ORDER NO. 21
Heads of Bureaus and Offices are expected to exercise a

reasonable supervision over the affairs of all cashiers or disbursing
officers serving under them, consistent with the responsibility
imposed upon such officers and the discretion conferred by law upon
each disbursing officer.
For this purpose each head of a Bureau or Office is directed

to cause to be counted and verified the cash with which each cashier
or disbursing officer under his jurisdiction is chargeable, at least
once each month.
In every case where a disbursing officer is disbursing for

more than one Bureau or Office, he shall submit to each head of
Bureau or Office for which he disburses, a statement of the whole
amount of the balances with which he is accountable on account of
the several Bureaus for which he disburses, and shall also state the
amount on hand in cash and the amount on deposit and the name
of the depository.
Every disbursing officer shall state, on every account-current

rendered by him to the Auditor, the kind or kinds of currency
comprising the balance shown on the account-current and shall also
state the amount on hand in cash and the amount on deposit, and
the name of the depository.
Each head of a Bureau or Office who is required to make the

examination herein directed, shall report to the Auditor the amount
of cash on hand and on deposit at the date of such investigation.
532
EXECUTIVE ISSUANCES – EXECUTIVE ORDERS
All outstanding or unpaid checks shall be excluded from the

credit allowed to a disbursing officer on account of funds on deposit
in any depository.
WM. H. TAFT, Civil Governor
533

EXECUTIVE BUREAU
MANILA, July 7, 1903
In order that the authority of the officer having control of an

appropriation, that is, the Chief or head of a Bureau or Office, and
responsibility of the disbursing officer may be more fully defined,
the following order is published for the information and guidance of
all concerned:
Every disbursing officer is responsible to the Government,

under his bond, for payments made by him, whether such payments
are made by direction of his superior officer or not; and the fact of
such direction will not relieve him from responsibility.
Provision is made by law (Act Numbered One hundred and

forty-five, section one) that “A disbursing officer or the head of any
Department, Bureau, or Office may apply for, and the Auditor shall
render, his decision upon any question involving a payment to be
made by them under them, which decision, when rendered, shall
govern the Auditor in passing upon the account containing the said
disbursement,” and in all cases of doubt such action should be taken.
Pending such decision the disbursing officer may properly refuse to
make payment in any case wherein he believes the payment ordered
is not warranted by law.
No disbursing officer shall make any payment or payments

in excess of the amount appropriated for a given purpose (subhead)
without the authority of the Philippine Commission, and no
Chief of Bureau shall contract any indebtedness in excess of the
appropriation from which it should be paid, without authority
therefor. Intentional violation of the foregoing will be considered a
serious offense and will justify the proper authority in imposing the
penalty of summary dismissal.
534
All pay rolls must be examined by the head of each Bureau

or Office and approved by him before payment, especially in respect
of labor paid from a general appropriation therefor.
A disbursing officer, in determining the legality of

expenditures, must act independently of the head of his Bureau or
Office, and at his own peril.
In Manila the chief supply officer, Philippines Constabulary,

and in the provinces the senior inspectors of Constabulary, will
conform to the instructions outlined above for the Chief or head of
a Bureau or Office.
535

EXECUTIVE BUREAU
E XECUTIVE ORDER NO. 50
No Chief of Bureau or Office shall, directly or indirectly,

invite, solicit, or even discuss with an employee, subordinate,
or officer of another Bureau or Office his transfer to the Bureau
or Office of such chief until the consent in writing of the head of
the Bureau or Office in which the desired employee or officer is a
subordinate, or of the Civil Governor, is first had.
536

EXECUTIVE BUREAU
MANILA, May 28, 1904
All inspectors of the Treasury Bureau are hereby authorized

and directed when visiting a province for the purpose of examining
the accounts of the provincial treasurer to also examine the accounts
of the clerk of the Court of First Instance. This order is not intended
in any way to affect the obligation imposed by Act Numbered Four
hundred and fifty-two upon the treasurer and fiscal of the province
to make an independent examination of the accounts of the clerk of
the Court of First Instance.
LUKE E. WRIGHT,
Civil Governor.
537
MANILA, P.I., June 4, 1906
Pursuant to the provisions of act numbered two hundred

and fifteen, Philippines commission, all district auditors are hereby
designated special inspectors, and will, under such instructions
of insular Auditor as he may deem advisable, make inspections of
Insular government property under the provisions of the act cited,
from time to time, as may be required of them.
Accountable officers and employees desiring the action

of an inspector should submit, direct to the district to the district
auditor who covers the district in which the property is located, all
necessary data, including the forms required by Auditor’s Circular
Numbered Thirteen, upon which intelligent action may be taken. In
order that proper record of requests for inspection of property may
be made, accountable officers and employees will forward to the
Executive Secretary, as in the past, formal request for appointment
of inspector, together with the statement to the effect that a copy of
said request, with all necessary evidence, has been transmitted to
the district auditor, giving date such transmittal.
The inspector will submit his report direct to the Insular

Auditor, who will, as is customary, forward the proceedings, with
his recommendation, to the Executive Secretary for action under
the authority granted by me.
HENRY C. IDE, Governor-General
538
Hereafter all chiefs of bureaus and head of offices of the

insular government, and the municipal board of the city of manila,
will render their annual reports for the fiscal year ending June
thirtieth, and will forward such reports covering the entire fiscal
year to the heads of their respective departments not later than
august tenth, in order that the latter may be able to submit their
reports to the Philippines commission by September first.
The following extract from the executive order of the

President of the United States dated January twentieth, nineteen
hundred and six, regarding the manner of rendering annual
reports, is published for the information of all concerned and should
in general be followed in submitting such reports to the heads of
Departments:
“The following general principles shall hereafter govern the

form of the annual reports of the various Bureaus and Offices of the
Departments:
“1. Annual reports shall be confined to concise accounts of

work done and expenditures incurred during the period covered,
with recommendations relating to the future, including plans work
to be undertaken.
“2. Contributions to knowledge in the form of scientific

treatises shall not be included in annual reports.
“3. Illustrations in annual reports shall be excluded except:

(a) Maps and diagrams indispensable to the understanding of the
text; (b) views of monuments or important structures begun or
erected; (c) views showing conditions in outlying possessions of
the United States and relating to work done or recommendations
made.
539
“4. Inserted materials, written or compiled by persons not

connected with the reporting office, and biographical and eulogistic
matter relating to the past or present personnel of the office, shall
be excluded.
“5. Reports of officers who do not report directly to the head

of an executive department shall not be printed in the annual report
of a Department, but where necessary shall be summarized in the
reports of the officials to whom such officers do report.
“6. Tables shall be inserted only when verbal summaries

and statements of totals are inadequate, and complete texts of laws
and court decisions shall, except in cases of great importance, be
excluded.
“7. Detailed description and lists of methods, processes,

purchases, bids, rejections, installations, repairs, specifications,
and personnel employed shall be omitted except when required by
their unusual importance or by statute.”
HENRY C. IDE, Governor-General
540

EXECUTIVE BUREAU
BAGUIO, BENGUET, March 8, 1907
All officers disbursing public funds are required on no

account and under no circumstances to advance to themselves or to
any person any sum of money on account of salary greater than the
amount actually earned by themselves or such other person on the
day on which such advance is made.
Hereafter, no disbursing officer will make any advances on

account of salary already earned, except upon a voucher properly
accomplished and prior approval of the head of the office in which the
person requesting the advance is employed. Such approval should
be noted upon the voucher in each particular case, and will be given
only in cases where, in the discretion of the head of the office, the
particular circumstances appear to warrant the advance.
JAMES F. SMITH, Governor General.
541

EXECUTIVE BUREAU
BAGUIO, BENGUET, March 16, 1907.
The practice of taking so-called “voluntary contributions”

for public or semipublic purposes by public officers and employees,
which exists in many localities, is seldom justifiable and frequently
productive of abuses. A feeling of injury or resentment is often thereby
engendered among people who are unable to distinguish between
collections made in this manner and those made for taxation. It is
therefore ordered that the practice be stopped and that all persons
holding office or employment under the Government refrain from
soliciting or receiving subscriptions.
The attention of all provincial and municipal officials is called

to the following circular recently issued to all provincial fiscals:
“SIR: The attention of the Commission has been called

to certain abuses that have been committed in many of the
municipalities of these Islands in the collection of contributions for
public or semipublic purposes, the said abuses consisting in such
contributions being made under duress and threats on the part
of municipal officers and their representatives. This is frequently
done by assessing each person a fixed amount, and he is given to
understand that said amount is his proportion of the contribution,
and that it is in the nature of a legal contribution or tax; persons
have been arrested for no other reason than the failure to pay
these contributions; and not a few instances a large portion of the
sums so collected are not devoted to the object for which they are
collected, but used for the personal benefit of those entrusted with
their collection. Such acts fall within the provisions of the Penal
Code, and may be classed, as the case may be, either as the crime of
amenaza, of detencion arbitraria, or estafa, as defined and punished
in case 1 or case 5 of section 535 of the said code.
542
“These abuses naturally create discontent among the people

and resentment against the Government in cases where they have
been made to believe that the contribution is imposed by its authority.
With the object of correcting such abuses, I urgently request that
as soon as it comes to your knowledge that in the collection or
disposition of any contribution an act has been committed subject
to the action of the Penal Code you immediately take steps to make
an investigation and file the proper criminal complaint if it appears
from your investigation that there are sufficient grounds therefor.
“Very respectfully, GREGORIO ARANETA,

“Attorney-General.”
Every infraction falling within the purview of the above

circular which comes under the notice of any Insular, provincial, or
municipal officer or employee should be at once reported to the fiscal
having jurisdiction.
It is directed that a copy of this order be kept posted in a

conspicuous place in every provincial and municipal building.
543

EXECUTIVE BUREAU
MANILA, July 22, 1907.
Executive Order Numbered Thirteen, series of nineteen

hundred and seven, is hereby amended to read as follows:
“The practice of taking so-called ‘voluntary contributions’

for public or semipublic purposes by public officers and employees,
which exists in many localities, is seldom justifiable and frequently
productive of abuses. A feeling of injury or resentment is often thereby
engendered among people who are unable to distinguish between
collections made in this manner and those made by taxation. It is
therefore ordered that all persons holding office or employment under
the Government refrain from soliciting or receiving subscriptions
unless the previous approval of the Governor-General to the purpose
of the subscription is first obtained.
“The attention of all provincial and municipal officials

is called to the following circular recently issued to all provincial
fiscals:
“‘SIR: The attention of the Commission has been called

to certain abuses that have been committed in many of the
municipalities of these Islands in the collection of contributions for
public or semipublic purposes, the said abuses consisting in such
contributions being made under duress and threats on the part
of municipal officers and their representatives. This is frequently
done by assessing each person a fixed amount, and he is given to
understand that said amount is his proportion of the contribution,
and that it is in the nature of a legal contribution or tax; persons
have been arrested for no other reason than the failure to pay these
contributions; and in not a few instances a large portion of the
sums so collected are not devoted to the object for which they are
collected, but used for the personal benefit of those intrusted with
544
their collection. Such acts fall within the provisions of the Penal
Code, and may be classed, as the case may be, either as the crime of
amenaza, of detencion arbitraria, or estafa, as defined and punished
in case 1 or case 5 of section 535 of the said code.
These abuses naturally create discontent among the people

and resentment against the Government in cases where they have
been made to believe that the contribution is imposed by its authority.
With the object of correcting such abuses, I urgently request that
as soon as it comes to your knowledge that in the collection or
disposition of any contribution an act has been committed subject
to the action of the Penal Code you immediately take steps to make
an investigation and file the proper criminal complaint if it appears
from your investigation that there are sufficient grounds therefor.
“ ‘Very respectfully, “ ‘GREGORIO ARANETA,

“ ‘ Attorney-General.’
“Every infraction falling within the purview of the above

circular which comes under the notice of any Insular, provincial, or
municipal officer or employee should be done at once reported to the
fiscal having jurisdiction.
“It is directed that a copy of this order be kept posted in a

conspicuous place in every provincial and municipal building.”
JAMES F. SMITH, Governor General
545

EXECUTIVE BUREAU
MANILA, August 22, 1907.
The attention of the undersigned has been called to the fact

that certain employees of the Philippine Civil Service have been
engaging in private business and lending money at exorbitant rates
of interest in violation of paragraph 5 and 6, Civil Service Rule 12,
which read as follows:
“5. No officer or employee shall engage in any private

business, vocation, or profession, or be connected with any
commercial undertaking, without written permission from the head
of the Bureau or Office in which he is serving, and of the Governor-
General or proper head of a Department. As a general rule, in
any enterprise which involves the taking of time, this prohibition
will be absolute in the case of those officers and employees whose
remuneration is fixed on the assumption that their entire time is at
the disposal of the Government; if granted permission to engage in
a business requiring time of applicant, copies must be furnished the
Bureau.
“6. * * * lending money at exorbitant rates of interest, *

* * contracting loans of money or other property from merchants
or other persons with whom the Bureau of the borrower is in
business relations, * * * the pursuit of private business, vocation,
or profession without permission in writing from the head of the
Bureau or Office in which employed and of the Governor-General
or proper head of a Department, * * * may be considered reasons
demanding proceedings to remove for cause or to reduce in class
or grade. No head of a Bureau or Office shall knowingly continue
in the public service any subordinate officer or employee guilty of
any of the above-named derelictions, without submitting the facts
through the Bureau through the Governor-General or proper head
of a Department.”
546
Some officials of the Government are under the impression

that prior approval is not required for an officer or employee to
engage in private business, and that a broker’s license obtained
from the Collector of Internal Revenue is sufficient authority for the
lending of money at exorbitant rates of interest.
Notice is hereby given that all persons engaged in any

private business, vocation, or profession, or who are connected with
any commercial undertaking or who are engaged in the lending of
money on real or personal property without having received written
permission from the head of the Bureau or Office in which serving,
or of the Governor-General or proper head of a Department, must
immediately secure such permission.
Notice is also given that all persons employed in the

Philippine Civil Service who are at present engaged in lending
money at exorbitant rates of interest must immediately discontinue
such business and refrain from reengaging therein.
The borrowing of money by superior officers from

subordinates, or the lending of money by subordinates to superior
officers is detrimental to the service and is prohibited.
Any violation by any person in the Philippine Civil Service

of any of the provisions of the paragraphs 5 and 6, Civil Service Rule
12, referred to above, or of any of the provisions of this Executive
Order, by direction or indirection, subsequent to the publication
hereof, will subject such person to proceedings for removal from the
service for cause.
Bureau chiefs are directed to communicate the contents

of this Executive Order to each and every employee under their
jurisdiction and to exact compliance with its provisions.
547

EXECUTIVE BUREAU
MANILA, October 12, 1907.
Provincial governors are hereby directed to notify the district

auditor for their respective provinces promptly of all changes
affecting the pay status of municipal officials and employees on
account of orders issued by or through their offices or by resolutions
of the provincial board. Such notifications should include all
appointments, designations, suspensions, resignations, or other
action of the provincial governor or board which would in any
away affect the rate of compensation or period of time for which
compensation is payable to a municipal official or employee.
548
MANILA, February 10, 1908
It has come to the notice of the Governor-General that certain

officers and employees, particularly in the provinces, do not observe
the hours of labor fixed by statute or proper authority, and that
notwithstanding this such employees certify on their honor upon
their daily time records that they have rendered service during
such hours.
Notice is hereby given that, in the opinion of the Attorney-

General, a certification of daily time records by employees to the
effect that they have observed the hours of labor fixed by law, when
in fact they have not done so, constitutes the crime of falsification
of official document punished by section three hundred of the Penal
Code, and that in any future cases of such falsification of the time
records the offending officer or employees will summarily removed
from the service and criminally prosecuted.
Provincial boards and chiefs of Bureaus and Offices of the

Insular Government and of the city of Manila will communicate the
terms of this order of officers and employees under them; they will
also take proper measures to insure the prompt report of any such
falsification of time records to the Governor-General.
JAMES F. SMITH, Governor-General.
549
Whereas the Bureau of Posts reports that municipal officials,

in a number of cases, have made it a practice to sell current unused
postage stamps at a profit at times when such stamps could not be
obtained at the local post-office; and
Whereas it is against the policy of this Government to make

or allow a profit to be made upon postage or other stamps of the
Government issued for current use,
It is, therefore, ordered that all officers and employees of the

Insular, provincial and municipal governments, in future, refrain
from asking or taking a profit upon stamps of the Government sold
for current use.
Violations of this order will be considered sufficient cause for

appropriate administrative discipline.
JAMES F. SMITH, Governor-General.
550
The attention of all chiefs of Bureaus and Offices of the

Insular Government is directed to the provisions of section seven of
Act Numbered Eighteen hundred and seventy-three providing for the
reversion to the Treasury of unexpended balances of appropriation.
The Insular Auditor will close his books for the fiscal year
nineteen hundred and eight at the close of business July fifteenth,
and all officers charged with the administration of appropriations
are directed to pay every debt pertaining to the past fiscal year
possible before that date.
Promptly after that date and before the last day of the
current month all unpaid obligations pertaining to the past fiscal
year will be certified to the Auditor in detail, showing the name
of the creditor, nature of the indebtedness, and actual amount if
known, and the estimated amount if not known. Officers will be
held to a strict accounting for items not certified.
JAMES F. SMITH, Governor-General
551
MANILA, P. I., January 9, 1909
In the exercise of power conferred by the Act of Congress

of July first, nineteen hundred and two, known as the “Philippine
Bill,” and by Act Numbered Sixteen hundred and ninety-eight of
the Philippine Commission, known as the “Revised Civil Service
Act,” the Governor-General hereby approves and promulgates the
following Civil Service Rule prepared and certified by the Director
of Civil Service, in lieu of the Civil Service Rules promulgated
September first, nineteen hundred and four, and amendments
thereof:
XXX XXX XXX
RULE XIII. – Prohibitions and penalties.
No person in the Philippine civil service shall use his official

authority or official influence to coerce the political action of any
other person or body.
No officer or employee in the Philippine civil service shall

discharge or promote or degrade or in any manner change the official
grade or compensation of any other officer or employee, or promise
or threaten so to do, for giving or withholding, or neglecting to make
any contribution of money or other valuable thing for any political
purpose whatever.
No inquiry shall be made, and no consideration whatever

shall be given to any information relative to the political or religious
opinions or affiliations of persons examined, or to be examined,
or of officers or employees in the matter of promotion, and no
discrimination shall be exercised, threatened, or promised against,
or in favor of, any person employed, examined, or to be examined,
because of his political or religious opinions or affiliations.
No recommendation of an applicant, competitor, or eligible

involving any disclosure of his political or religious opinions or
552
affiliations shall be considered by the Director, by any examining

committee or special examiner, or by any nominating or appointing
officer.
No officer or employee shall engage in any private business,

vocation, or profession, or be connected with any commercial
undertaking, or lend money on real or personal property, without
written permission from the chief of the Bureau or Office in which he is
serving, and of the Governor-General or proper head of Department.
As a General rule, in any enterprise which involves the taking of
time, this prohibition will be absolute in the case of those officers
and employees whose remuneration is fixed on the assumption that
their entire time is at the disposal of the Government; if granted
permission to engage in a business requiring time of applicant,
copies must be furnished the Director.
Discourtesy to private individuals or to Government officers or

employees, drunkenness, gambling dishonesty, repeated or flagrant
violation or neglect of duty, notoriously disgraceful or immoral
conduct, physical incapacity due to immoral or vicious habits,
incompetency, inefficiency, borrowing money by superior officers
from subordinates or lending money by subordinates to superior
officers, lending money at exorbitant rates of interest, willful failure
to pay just debts, contracting loans of money or other property from
merchants or other persons with whom the Bureau of the borrower
is in business relations, pecuniary embarrassment arising from
reprehensible conduct, the pursuit of private business, vocation, or
profession without permission in writing from the chief of the Bureau
or Office in which employed and of the Governor-General or proper
head of Department, disreputable or dishonest conduct committed
prior to entering the service, insubordination, pernicious political
activity, offensive political partisanship or conduct prejudicial to
the best interest of the service, or the willful violation by any person
in the Philippine service or the willful violation by any person in
the Philippine civil service, of any of the provisions of the Revised
Civil Service Act or rules, may be considered reasons demanding
proceedings to remove for cause, to reduce in class or grade, or to
inflict other punishment as provided by law in the discretion of
553
the Governor-General or proper head of Department. No chief of a

Bureau or Office shall knowingly continue in the public service any
subordinate officer or employee who is inefficient or who is guilty of
any of the above-named derelictions, without submitting the facts
through the Director to the Governor-General or proper head of
Department.
In making removals or reductions, or in imposing other

punishment, for delinquency or misconduct, penalties like in
character shall be imposed for like offenses, and action thereon
shall be taken irrespective of the political or religious opinions of
affiliations of the offenders.
XXX XXX XXX
JAMES F. SMITH
Governor-General
554
MANILA, June 17, 1909
The attention of all Directors of Bureaus and heads of

Departments of the city of Manila is directed to the provisions of Act
1824 requiring the submission of their respective annual reports
not later than August 10 of each year.
All financial reports contained therein will be compared

and brought to agreement with the Auditor’s books, and every
officer charged with the disbursement of public funds is directed to
settle every obligation of his Office or Bureau for services rendered
or supplies actually received pertaining to the current fiscal year
prior to July 10 next, upon which date he will certify to this office
in duplicate a detailed list of his outstanding obligations, showing
as nearly as practicable the date incurred, to whom owed, for what,
and the amount, actual, if known, estimated, if not known. Supply
officers of Constabulary will telegraph gross totals of unpaid pay
rolls for June or prior months, i.e., disregarding deductions for
pension fund, clothing, etc. traveling agents of the various Bureaus
will telegraph amount of per diems and traveling expenses accrued
to June 30.
The intent of this order is to get every actual expense of the

Government for the current fiscal year into the accounts of such
year, whether paid or not, and every officer concerned is directed to
cooperate to that end.
W. CAMERON FORBES,
Acting Governor-General
555
MANILA, October 14, 1909
Honorable Frank a Branagan, member, Philippine

Commission, W. H. Clarke, Insular Auditor, and Wm. T. Nolting,
Special Agent, are hereby appointed a committee of three, to examine
into the condition of the property accountability in each Bureau
to determine the amount of permanent appropriation necessary
for the establishment of a reimbursable supply account for each
Bureau under the provisions of Act Numbered One thousand eight
hundred and seventy-three. Having looked into the necessities
of each Bureau, the amount of supplies now carried, the amount
which, in the judgment of the committee, they should carry, the
committee will render a report making recommendation of the total
allowance to be given each Bureau for such reimbursable account
and the method by which such account shall be made available, and
such other recommendations as may seem to them pertinent in the
premises.
W. CAMERON FORBES,
556
MANILA, January 14, 1910
No public officer or persons elected or appointed to a public

office under the laws of the Philippines Islands shall directly or
indirectly ask, demand, accept, receive, or consent to receive for his
own use or benefit or for the use or benefit or another, any free
pass, free transportation, franking privilege, or discrimination
in passenger, telegraph, or telephone rates, from any person or
corporation or make use of the same himself or in conjunction with
another.
W. CAMERON FORBES,
Governor-General
557

EXECUTIVE BUREAU
MANILA, December 29, 1911.
Executive Order Numbered Forty-three, series of nineteen

hundred and six, is hereby amended to read as follows:
“(1) Except as herein provided, credit transactions between

Bureaus or Offices of the Insular Government and Government
employees or the general public shall be at the personal risk of the
Chief of the Bureau or Office concerned.
“(2) The foregoing shall not apply to the Director of Health

with respect to subsistence and treatment of patients in hospitals
under his administrative jurisdiction, provided due care and
diligence is exercised by him in the collection of amounts due for
such services.
“(3) Upon the admission of any officer or employee of the

Insular or of any provincial or municipal government for treatment
in any hospital under the administrative jurisdiction of the Director
of Health it shall be the duty of the latter to notify the proper chief
of Bureau or Office of such admission.
“(4) In order that patients may be promptly advised of the

amount of their indebtedness, the superintendent of each hospital is
charged with the duty of presenting a bill to each patient immediately
upon discharge from the hospital showing the total amount due on
that date.
“(5) If said patient fails to pay the entire amount of such bill
on or before that tenth day of the month immediately succeeding
that in which discharged, the balance due will be billed by inter-
Bureau voucher against the Bureau or Office in which the debtor is
558
employed, and thereafter the amount of such indebtedness shall be

payable to that Bureau or Office instead of to the hospital.
“(6) The inter-Bureau vouchers covering items of this

nature should be debited to ‘accounts receivable,’ and each Chief of
Bureau or Office is hereby charged with the duty of collecting the
amounts due on this account. The indebtedness may be adjusted by
partial payments in the discretion of the Bureau chief, but under
no circumstances should such indebtedness be allowed to continue
over a period of more than four months without specific authority
of the Auditor.
“(7) Bureau chiefs, or other accountable officers, shall only be

responsible for the debts of such of the employee of their respective
Bureaus as may be admitted to a government hospital at the
written request of such chief or officer, or whose name shall, within
forty-eight hours after admission to the hospital be reported to the
Bureau chief as having entered as a prospective charge against such
Bureau.
“(8) If, through death or other cause not due to the negligence
of a Bureau chief or other accountable officer, it be found impossible
to collect any or all of the amount due the hospital from a Bureau
employee, such loss as may be incurred shall, with the approval of
the Auditor first had, be charged against the Bureau or Office to
which such employee may have belonged, and not against the chief
of Bureau or accountable officer personally.
“(9) Each chief of Bureau or Office is hereby charged

with the duty of collecting from officers and employees under his
administrative jurisdiction the amount of any personal indebtedness
of such officers and employees to the Bureau or Officer in which
employed.
“(10) Nothing herein contained shall be construed to apply

to balances due the Government from a collecting or disbursing
officer under his bond, but no voucher in favor of such officer shall
be approved for payment subsequent to the date of approval of his
559
application for accrued leave, resignation, or request for transfer,

until he has first presented a current official clearance from the
Auditor as provided by Act Numbered Eleven hundred and sixty-
one.”
W. CAMERON FORBES,
Governor-General.
560

EXECUTIVE BUREAU
BAGUIO, May 6, 1912.
Executive Order Numbered Forty-three, series of nineteen

hundred and six, as amended by Executive Order Numbered
Eighty-six, series of nineteen hundred and eleven, is hereby further
“(1) Except as hereinafter after provided, credit transactions

between Bureaus or Offices of the Insular Government and
Government employees or the general public shall be at the personal
risk of the chief of the Bureau or Office concerned.
“(2) the foregoing shall not apply to the Director of Health

with respect to subsistence and treatment of patients in hospitals
under his administrative jurisdiction, provided due care and
diligence is exercised by him in the collection of amounts and for
such services.
“(3) Upon the admission of any officer or employee of the

Insular or of any provincial or municipal government for treatment
in any hospital under the administrative jurisdiction of the Director
of Health it shall be the duty of the latter to notify the proper chief
of Bureau or Office of such admission.
“(4) In order that patients may be promptly advised of the

amount of their indebtedness, the superintendent of each hospital is
charged with the duty of presenting a bill to each patient immediately
upon discharged from the hospital showing the total amount due on
that date.
“(5) If said patient fails to pay the entire amount of such bill
on or before the tenth day of the month immediately succeeding
that in which discharged, the balance due will be billed by inter-
561
Bureau voucher against the Bureau or Office in which the debtor is

employed and thereafter the amount of such indebtedness shall be
payable to that Bureau or Office instead of to the hospital.
“(6) The inter-Bureau vouchers covering items of this

nature should be debited to ‘accounts receivable,’ and each chief of
Bureau or Office is hereby charged with the duty of collecting the
amounts due on this account. The indebtedness may be adjusted by
partial payments in the discretion of the Bureau chief, but under
no circumstances should such indebtedness be allowed to continue
over a period of more than four months without specific authority
of the Auditor.
“(7) Bureau chiefs, or other accountable officers shall only be

responsible for the debts of such of the employees of their respective
Bureaus as may be admitted to a Government hospital at the
written request of such chief or officer, or whose name shall, within
forty-eight hours after admission to the hospital be reported to the
Bureau chief as having entered as a prospective charge against such
Bureau. In case the patient is erroneously reported as a prospective
charge against a Bureau or Office in which he is not employed at a
date of admission, the chief of said Bureau or Office shall, within
twenty-four hours after receipt of such report, bring such fact to the
notice of the superintendent of the hospital concerned.
“(8) If, through death or other cause not due to the negligence
of a Bureau chief or other accountable officer, it be found impossible
to collect any or all of the amount due the hospital from a Bureau
employee, such loss as may be incurred shall, with the approval of
the Auditor first had, be charged against the Bureau or Office to
which such employee may have belonged, and not against the chief
of Bureau or accountable officer personally.
“(9) Each chief of Bureau or Office is hereby charged

with the duty of collecting from officers and employees under his
administrative jurisdiction the amount of any personal indebtedness
of such officers and employees to the Bureau or Office in which
employed.
562
“(10) Nothing herein contained shall be construed to apply

to balances due the Government from a collecting or disbursing
officer under his bond, but no voucher in favor of such officer shall
be approved for payment subsequent to the date of approval of his
application for accrued leave, resignation, or request for transfer,
until he has first presented a current official clearance from the
Auditor as provided by Act Numbered Eleven hundred and sixty-
one.”
NEWTON W. GILBERT,
Acting Governor-General.
563

EXECUTIVE BUREAU
MANILA, January 29, 1913.
It having been brought to my attention that the provisions

of Act Numbered One hundred and ninety-eight, as regards the
use of official transportation, are being violated, the following
instructions are issued, pursuant to the provisions of Act Numbered
Three hundred and twenty-one, for the guidance of the heads of the
various bureaus and offices, who are hereby held accountable for
compliance with their terms:
Executive Orders Numbered Sixty-six, of nineteen hundred

and two, and Fifty-nine, Ninety-three, and One hundred and four
of nineteen hundred and three, and all special orders relating to
official transportation are hereby revoked.
Official transportation of every nature, including automobiles,

must be restricted to use only on official business and not for the
personal convenience or benefit of the official or employee making
use of such transportation.
Bureau chiefs are directed to formulate such rules for their

Bureaus, and such written instructions for the guidance of their
employees in this matter as will insure compliance with the law,
and to submit them to this office for approval, after securing which
they shall be promulgated.
All permissions heretofore given for the use of official

transportation between the residence of any official and the office,
or vice versa, and the housing of Government transportation at the
home of any official or employee, are hereby revoked.
It appearing necessary and desirable for the public service,

the following officials of the Insular Government and city of Manila
564
will be permitted to house at their residences the transportation

assigned them, or to have official transportation call at their
residences to convey them to their offices, or vice versa, such
transportation to be used by them on official business only:
The Aide-de-camp to the Governor-General,
The Director of Constabulary,
The Superintendent of Information Division,

Bureau of Constabulary,
The Chief Quarantine Officer,
The Chief of Police
The Assistant Chief of Police,
The Chief of secret Service,
The Chief and Deputy Chief of the Fire Department, and
The City Electrician.
W. CAMERON FORBES
Governor-General
565

EXECUTIVE BUREAU
MANILA, February 13, 1913.
1. The Insular Auditor is hereby directed to close the general

books of the Government of the Philippine Islands not later than
fifty days after the expiration of each fiscal year.
2. All officers having administrative control over

appropriations are hereby directed to submit to the Auditor not
later than forty days after the close of each fiscal year journal
vouchers covering all items of assets, liabilities, income, and expense
pertaining to said fiscal year which have not theretofore been taken
into account. All differences between the books of the Bureaus and
those of the Auditor will be reconciled within the succeeding ten
days.
3. Throughout the first eleven months of the fiscal year, all

warrants, cash vouchers and journal vouchers designed for entry
on the Auditor’s journals for any particular month will be delivered
to him not later than the twenty-fifth of the succeeding month. The
Auditor will thereupon close the journals for the completed month
and furnish a copy thereof to the Bureau in interest not later than
the last day said succeeding month, and it shall be the duty of the
chief of each Bureau or Office to cause said journals to be compared
with the books and records of this office and to advise the Auditor of
any differences disclosed by said comparison within ten days after
the receipt of the journals.
4. In so far as practicable all transactions incurred in any

month will appear in the journal for that month either as actual
payments or, in case of obligations, as accounts payable, and the
uncollected earnings or income pertaining to said month will also
appear in said journal as accounts receivable.
566
5. All acquisitions of supplies and equipment involving

property accountability will be taken into account during the month
in which received, and all movements whatever in property involving
issue, sale destruction, transfer, or change in the nature of the asset
will in so far as practicable, be entered in the journal for the month
in which the transaction occurs.
W. CAMERON FORBES
Governor-General
567

EXECUTIVE BUREAU
MANILA, July 25, 1913.
It has been brought to my attention that employees of

the Civil Government believe that the privilege which they are
given of having free service at the Government hospitals entitles
them to be rude and overbearing to the doctors employed in those
institutions. It is true that under the law officials and employees of
the Government may get free service at the hospitals, and doctors
are employed by the Government whose duty it is to give it to them,
but there is nothing that compels the doctors to remain in a service
that is disagreeable to them as many of them can ‘make a great deal
more money in private practice than they can on a salary basis with
the Government. Employees are cautioned that doctors, nurses,
and officials of the Government hospitals should be treated with
civility and respect; that they are performing a great public service
in curing infirmities and in rendering medical and surgical aid to
the people; that they relieve untold amounts of suffering; that after
a physician has been here a few years and learned the requirements
of his position his place is difficult to fill without suffering to untold
hundreds and trouble and expense to the Government.
I have sent a copy of this Executive Order to each of the

doctors employed in the Insular Government with the request
that he furnish me with the name of any official or employee who
fails to recognize the courtesy due to a man in his position, and
all such complaints that are made will be investigated and such
administrative remedies applied as may seem necessary.
W. CAMERON FORBES
Governor-General
568

EXECUTIVE BUREAU
For the future, the executive authority given by the law

to permit, in certain cases, Government employees to engage in
private business outside of their official duties, will not be favorably
exercised except under most exceptional circumstances. It is not
intended by this that all employees of the Government who have
engaged in private business under executive permission conferred
in accordance with the law should sever their connection with
such business enterprises; any such cases would be considered for
revocation of the permission already extended only where such
business activities impair the efficiency of the Government employee
during this official work tend to influence improperly his official
actions, secure to him any unfair advantage in connection with his
official position, or otherwise bring discredit upon the Government.
On the other hand, it should be understood that for the future such
business employment outside of official life is considered to affect
unfavorably the capacity of the employee to perform the Government
services for which he is drawing his salary; his entire time and
strength is due to the Government even though he may be called
upon to give such time and strength outside of office hours.
No employee will be allowed to take any part in the

management of any business or engage in outside clerical or
sedentary employment or any profession or employment which
would bring him into competition with professional or businessmen,
and permission to accept employment will as a rule be limited to that
involving outdoor labor which would better the physical condition of
the employee and to teaching engineering, stenography, and such
other branches as would be of bene t to the Government or the
community, the time to be devoted to this teaching not to exceed
that prescribed for the Government night schools (one and one half
hours daily).
569
Permission for all investments made in the Philippine lslands

must be obtained from the Governor-General or proper Secretary of
Department. No request will be approved to make any investment
which might bring the employee’s private interests into real or
apparent con ict with his public duties or in any way influence him
in the discharge of his duties, or to make any investment which
might interest the employee in an undertaking with which his public
duty is connected or which might cause criticism of the Government
or the employee. Employees shall not obtain concessions from the
Government or own stock in companies holding concessions.
Loans from subordinates to superiors and loans on personal

security are absolutely prohibited. Loans on real estate with interest
at 10 per cent per annum or less will usually be approved under
proper conditions.
Any violation of the provisions of this order or acceptance of

employment or making investments or loans without the required
permission will be sufficient cause for removal from the service.
FRANCIS BURTON HARRISON

Governor-General
570

EXECUTIVE BUREAU
Executive Order Numbered Twenty, July twenty-second,

nineteen hundred and seven, prohibits “taking so-called ‘voluntary
contributions’ for public or semipublic purposes by public officers
and employees.”
Officers and employees of the Government should also

discourage and in no way participate in the practice of private
citizens assessing and collecting contributions for the entertainment
and reception of public officials on visits to provinces or other
localities. While the spirit of hospitality intended on such occasions
is commendable, still, burdens are sometimes imposed upon the
local community; and due to such friendly entertainments the
public official on a tour of inspection is largely prevented from
accomplishing the object of his trip.
The Governor-General, takes this opportunity of stating

that he has just learned of very large contributions amounting
to many thousand pesos being solicited for his entertainment in
various provinces, and collected from all classes of people. Such
an expenditure of money is obviously, though intended in the
most courteous and hospitable spirit, a great hardship upon the
people; and at a time when the Government itself is bending every
effort toward drastic economy such expenditures are inadvisable.
Therefore, in order to assist in the carrying out of this executive
order the Governor-General has decided that he will deny himself
the pleasure of any more prearranged official visits to the provinces,
at least for the next year. During that year, however, the Governor-
General expects to visit each one of the provinces, but will do so
informally and upon very short notice so that no undue financial
expense of entertaining may be incurred by the people.
FRANCIS BURTON HARRISON

Governor-General
571

EXECUTIVE BUREAU
MANILA, May 25, 1914.
The giving of any intimation, to merchants or dealers, of the

probable requirements of the Government for equipment, material,
or supplies, as well as the soliciting of quotations, other than
through the Purchasing Agent, is hereby forbidden, unless their
purchase without his intervention if permitted by law, or by general
or specific authority of the Executive, obtained prior to going into
the market.
FRANCIS BURTON HARRISON,

Governor-General.
572

EXECUTIVE BUREAU
MANILA, September 15, 1914.
The president and members of the Philippine Board of the

Panama-Pacific International Exposition, appointed under the
provisions of Act Numbered Twenty-one hundred and sixty-three,
the employees of the said Board, and all other persons connected
therewith, shall have no personal participation or financial interest
in any exhibit of the said exposition or in any articles offered for sale
in connection therewith. Such participation, either direct or indirect,
by means of the sale of articles privately owned in connection with
any exhibit, or otherwise, at the exposition aforesaid, either in
person or through the intervention of another; the participation in
the returns from any such sale of articles in any manner whatsoever;
enhancing the value of any articles so offered for sale in any manner
for personal profit or gain; purchasing such articles from the Board
for the purpose of resale to the public, or in any other manner
manipulating the conduct of exhibits, or the sale of articles, so as
to derive therefrom a personal profit or gain by any of the persons
above mentioned will be considered sufficient cause for removal
from the service.

Governor-General.
573
The following instructions relative to the use of official

transportation are issued for the guidance of the heads of the
various bureaus and offices, who are hereby held accountable for
compliance with their terms:
Official transportation of every nature, including

automobiles, must restricted to use only on official business and not
for the personal convenience or benefit of the official or employee
making use of such transportation.
Bureau chiefs are directed to formulate such rules for their

Bureaus, and such written instructions for the guidance of their
employees in this matter as will insure compliance with this order,
and to submit them to this office for approval, after securing which
they shall be promulgated.
All permissions heretofore given for the use of official

transportation between the residence of any official and the office,
or vice versa, and the housing of Government transportation at the
home of any official or employee, are hereby revoked.
It appearing necessary and desirable for the public service,

the following officials of the Insular Government and city of Manila
will be permitted to house at their residence the transportation
assigned them, or to have official transportation call at their residence
to convey them to their offices, or vice versa, such transportation to
be used by them on official business only:
The Secretary to the Governor-General.

The Aide-de-camp to the Governor-General.
The Chief of Constabulary.
The Superintendent of information division, Philippine,
Constabulary.
574
The Director of Health.

The Assistant Director of Health.
The chief, division of sanitation, city of Manila.
The chief, division of sanitation in the provinces.
The chief quarantine officer.
The mayor of the city of Manila.
The chief of police.
The assistant chief of police.
The chief of secret service.
The chief of customs secret service.
The chief and deputy chief of the fire department.
The city electrician.
Executive Order Numbered Eighty, series of Nineteen

hundred and fourteen, and all orders relating to official transportation
are hereby revoked.

Governor-General
575
In the exercise of power conferred by Act of Congress of July

first, nineteen hundred and two, known as the “Philippine Bill,”
and by chapter twenty-four of the Administrative Code, known as
the “Civil Service Law,” the Governor-General hereby approves and
promulgates the following amendment of Civil Service Rule XIII, as
promulgated by Executive Order No. 5, series of 1909, consisting in
the addition of a section to be numbered eight:
“RULE XIII.—Prohibition and penalties
“8. No person in the Philippine civil service, classified or

unclassified, permanent or temporary, shall take any active part in
political management or in political campaigns: Provided, That this
section shall not apply to elective officers, officers and employees of
either House of the Legislature, and Secretaries of Departments.
Political activity shall consist, among other things, in candidacy
for elective office, being a delegate to any political convention or
a member of any political committee or directorate or an officer of
any political club or other similar political organization, making
speeches, canvassing or soliciting votes or political support in
the interest of any party or candidates, soliciting or receiving
contributions for political purposes, either directly or indirectly, or
becoming prominently identified with the success or failure of any
candidate or candidates for election to public office. The prohibitions
herein contained apply to political activity with the respect to the
political parties of the United States as well as of the Philippine
Islands. Violation of this section shall be considered cause for
removal from the service.”

Governor-General
576
The collection of internal revenue has been falling off for

some time to an extent which indicates lack of vigilance and energy
in making collections and failure to discover non-payment of taxes
in whole or in part; in a word, laxity in the enforcement of existing
laws governing the collection of internal revenue.
Therefore, in view of these conditions, the attention of

provincial treasures and others charged with the collection of
internal revenue is invited to the necessity of more thorough and
prompt performance of their duties.
Thorough efficiency in the discharge of the important duties

of collectors is absolutely essential in the public interest, and lack
of such efficiency will be considered as a disqualification for office
in connection with the collection of internal revenue or other taxes.
On the other hand, demonstrated efficiency will be regarded as an
indication of fitness for promotion and increased responsibility.
I earnestly bespeak the cooperation of all concerned in this

most responsible and important work.
LEONARD WOOD,
Governor-General
577
MANILA, March 1, 1922
In order to insure free, honest and orderly elections, and to

avoid even the appearance of interfering with the lawful exercise of
the right of suffrage, the attention of provincial governors is called
to the necessity of exercising the utmost caution in suspending
municipal officials. Henceforth and until the coming elections are
over, no municipal official should be suspended from office, except
for flagrant violations of law or serious irregularity demanding
immediate action; and in case of any such suspension, a telegraphic
report thereof should immediately be made to the Executive
Bureau.
LEONARD WOOD,
Governor-General
578
It has come to the knowledge of this office that a great

number of Government employees has resorted to the pernicious
practice of lobbying in legislative halls and offices for the purpose
of influencing the members of legislative bodies to grant them
increases in their compensation. It is understood that in many such
cases the increases in salary are not recommended by the Chief or
by the Department Head, and that the employees approach and
influence members of the Legislature on their own initiative and
responsibility. This practice is certainly destructive of the merit
system upon which the Civil Service Law and Regulations are
based and is highly unbecoming of public servants. The Chief of
the Bureau or the Head of a Department is the proper official to
judge whether or not an employee is deserving of an increase in
salary. Furthermore, the practice of lobbying tends to keep before
the minds of employees thoughts of their own personal advantage in
connection with their official duties, instead of the public interest.
It is therefore ordered that hereafter no employee, whether

in the classified or the unclassified service of the Philippine
Government, shall lobby for his promotion in salary. Persons guilty
of violation of this order shall be proceeded against in accordance
with the Civil Service Law and Regulations and shall be subject
to removal or such other disciplinary actions as the facts may
warrant.
All officials of the government of whatever class, are enjoined

from countenancing, encouraging, or participating either directly or
indirectly in the lobbying to which reference is herein made.
LEONARD WOOD
Governor – General
579
MANILA, June 21, 1927
It has been noted that there is a great and growing

extravagance in the use of official telegrams. Many needless
telegrams are being sent and many telegrams are longer than
necessary. The telegraph should be used only for matters of
urgent importance which cannot be transacted effectively through
the ordinary mails. When telegrams are necessary they should
be as brief and as concise as possible, consistent with clearness.
All unnecessary words and phrases should be eliminated. There
should be no sending of two or more telegrams practically identical
in content to separate offices in Manila. In such cases one office
should be requested to transmit the message to the other offices
concerned.
Bureau chiefs and accounting officers will give the matter

particular attention for the purpose of effecting economies in the
telegraph service.
District auditors will scrutinize official telegrams and disallow

such as appear to be unnecessary or extravagantly lengthy.
EUGENE A. GILMORE
580
MANILA, August 23, 1927
The attention of all concerned is called to the following

circular issued by this office on August thirty-first, nineteen hundred
and eight, strict compliance with which is hereby enjoined:
“It has been brought to my attention that many officials and

employees of the Government residing in more or less isolated places
find themselves practically compelled to entertain other officials
and employees in such large numbers that the resulting drain upon
their private funds is very serious.
“Practically all Government officials and employees are

reimbursed for all necessary expenses incurred by them when
traveling on official business, either by the payment of the actual
and necessary traveling expenses and subsistence, or a per diem, or
a combination of the two.
“In order to relieve more or less involuntary hosts and guests

from embarrassment in connection with the payment and acceptance
of proper compensation for what may have been furnished, each and
every official and employee of the Philippine Government is hereby
directed to pay full value for all entertainment furnished them by
other officials and employees and the latter are directed to accept
the same. Bureau chiefs are directed to see that each official and
employee concerned in their respective bureau is furnished with a
copy of this circular and to issue the necessary instructions to carry
it into force.”
In connection with the above quoted circular, this office

desires to reiterate its stand on the matter of collecting “voluntary
contributions” for the entertainment and reception of public officials
as stated in Executive Order Numbered One hundred eight, series
of nineteen hundred and thirteen, the pertinent provisions of which
are as follows:
581
“Officers and employees of the Government should also

discourage and in no way participate in the practice of private
citizens assessing and collecting contributions for the entertainment
and reception of public officials on visits to provinces or other
localities. While the spirit of hospitality intended on such occasions
is commendable, still, burdens are sometimes imposed upon the
local community; and due to such friendly entertainments the
public official on a tour of inspection is largely prevented from
accomplishing the object of his trip.
“The Governor-General takes this opportunity of stating

that he has just learned of very large contributions amounting
to many thousand pesos being solicited for his entertainment in
various provinces, and collected from all classes of people. Such an
expenditure of money is obviously, though in the most courteous and
hospitable spirit, a great hardship upon the people; and at a time
when the Government itself is bending every effort toward drastic
economy such expenditures are inadvisable. * * *.”
Administrative officials are hereby directed to bring the

contents of this order to the attention of their subordinates.
EUGENE A. GILMORE
582
MANILA, December 20, 1928
Executive Order Numbered Fifty-seven, series of nineteen

hundred and twenty-seven, is hereby amended to read as follows:
“Complaints have been made to the effect that supplies and

materials are being sold by Government officials to Government
officers and employees for their personal use, and that Government
supply officers issue unofficial requests upon merchants for the
delivery to Government employees, for their personal use, of goods
less the regular discount allowed on purchases by the Government.
“Such practices are unfair to the merchants, and, being

contrary to law, notice is hereby given that officers and employees of
the Government as well as those of semi-Governmental corporations
or institutions, have no right to buy goods for their personal use in
the name of the Government, or such corporations and institutions,
nor have they any right to obtain through Government supply
officers supplies or materials for their personal use. An exception,
however, may be made when the supplies and equipment, including
articles of clothing and subsistence, are needed for official and lawful
use by officers and employees in connection with the performance
of their official duties, in which cases proper Department Secretary
may authorize said officers and employees to make purchases under
section two thousand forty-one of the Administrative Code of such
equipment and supplies as are necessary in connection with their
official duties.
“Drastic administrative action will be taken against any

official or employee found guilty of the above practices.”
HENRY L. STIMSON
Governor-General
583
MANILA, January 19, 1934
In view of the present world-wide economic crisis and local

distress, it is essential that lavish entertainment of public officers
on official visits be eliminated.
In future visits of the Governor-General or members of his

staff to the provinces, all receptions or other public meetings which
may be considered necessary should be brief, simple, and informal.
It is directed and ordered that all Government officials shall

refrain not only from the use of public money for this purpose but
also from the practice of soliciting private contributions, either
directly or by indirect methods that are well known, to defray the
expense of such reception and entertainment.
Provincial governors and other governmental officials who

have occasion to entertain the Governor-General or members of his
staff are enjoined to adhere strictly to this order.
FRANK MURPHY
Governor-General
584
REGULATIONS GOVERNING SENIORITY, PROMOTION, AND

SEPARATION FROM THE SERVICE, OF OFFICERS OF THE
RESERVE FORCE, PHILIPPINE ARMY
Pursuant to the authority conferred upon me by the

Constitution and the existing laws, I, Manuel L. Quezon, President
of the Philippines, do hereby prescribe the following regulations
governing seniority, promotion, and separation from the service, of
officers of the Reserve Force of the Philippine Army:
XXX XXX XXX
III. Separation from service
5. Methods. – Appointments of officers in the Reserve Force

of the Philippine Army are terminated by:
(a) Death.
(b) Resignation.
(c) Discharge.
(d) Dismissal or dropping from the rolls.
XXX XXX XXX
8. Discharge – Any reserve officer may be discharged at

any time in the discretion of the President. Discharge shall be the
form of separation in all cases not otherwise covered, including the
following:
(a) Physical disqualification – Requests or recommendations

for discharge by reason of physical disqualification shall be
forwarded through military channels to district commanders,
who shall forward them to the Adjutant General with suitable
evidence and recommendation for determination as to discharge or
transfer to another section of the Reserved Force or waiver physical
disqualification.
585
(b) Misconduct, inefficiency, or other unfitness. – In time

of peace reports of misconduct, inefficiency, or other unfitness on
the part of any reserve officer shall be forwarded to the district
commander, who shall cause such investigation to be made as may be
deemed necessary, or as may be directed by higher authority. When
the district commander deems it necessary, or should the officer
concerned so request in writing, he shall convene a suitable board
of not less than three officers to further investigate the matter and
make recommendations. The officer whose fitness is being inquired
into shall always by informed of the alleged misconduct, inefficiency,
or other unfitness, and be given opportunity for a hearing before
the board of officers, either in person, by counsel, or by brief, as
he may elect. At least one reserve officer on inactive status shall
be included in the membership of such board. Proceedings of the
board of officers, together with the action and recommendation of
the convening authority, shall be forwarded to the Adjutant General
for final action.
(c) Inability to locate after reasonable effort, also failure to

reply to official communication. – Where the discharge of a reserve
officer is recommended by the corresponding district commander, or
chief of arm or service, because his whereabouts cannot be ascertained
in spite of diligent effort or because of his repeated failure to reply
to official communications, copies of the communications returned
unclaimed or remaining unanswered shall be enclosed, but the
substance thereof, with the date or dates and address or addresses
used, may be stated instead; any other means used to communicate
with the reserve officer shall also be reported.
(d) Conviction by civil court. – Any reserve officer convicted

of a crime involving moral turpitude before a civil court shall be
discharged. All persons in the military service are enjoined to
report, through military channels, the conviction of any reserve
officer coming to their notice.
(e) Entry into a service of a foreign country. – The entry of

a reserve officer into the military service of a foreign country or his
departure from the Philippines for such purpose shall be considered
ground for immediate discharge.
586
(f) Miscellaneous. – Circumstances may arise, not

otherwise provided for herein, that render desirable the discharge
of a reserve officer. Such circumstances shall be reported through
military channels to the Adjutant General with appropriate
recommendation.
9. Dismissal. – The dismissal or dropping from the rolls of

a reserve officer shall occur only when he is on active duty, and is
governed by the one hundred and seventeenth Article of War.
DONE at the City of Manila, this sixth day of July, in the

year of Our Lord, nineteen hundred and thirty-nine, and of the
Commonwealth of the Philippines, the fourth.
MANUEL L. QUEZON
By the President:
JORGE B. VARGAS
Secretary to the President
587
APPOINTMENT AND SEPARATION OF SECRET AGENTS OR

DETECTIVES AND CONFIDENTIAL EMPLOYEES
Whereas it is desirable in the interest of good administration

and efficient service that there should be a uniform procedure
governing the appointment and separation of secret agents or
detectives and persons holding positions primarily confidential in
nature in the various branches or agencies of the Government;
Now, therefore, I, Manuel L. Quezon, President of the

Philippines, by virtue of the powers vested in me by law, do hereby
promulgate the following regulations:
Hereafter no appointment to the position of secret agent or

detective under the provisions of Section 671(j) of the Administrative
Code, as amended by Commonwealth Act No. 177, or to any position
in the provincial and city government which may be declared by the
President as primarily confidential in nature under the provisions
of section 671(l) of the same Code, shall be made by the governor or
city mayor, as the case may be, without the approval of the Secretary
of the Interior.
Appointments to positions in the National Government

similar in nature to those in the preceding paragraph shall be
submitted by the Department head concerned to the President for
approval.
Where the appointing officer deems it necessary to terminate

the services of a person appointed under the provisions of paragraph
1 and 2 hereof for lack of trust or confidence, and the person to be
separated has qualified in a civil service examination, advice of such
separation shall state clearly the reasons therefor.
When a person appointed under the provisions of paragraph

1 and 2 hereof is to be disciplined or separated for any of the
causes enumerated in section 695 of the Administrative Code, as
588
amended by Commonwealth Act No. 177, action shall be taken by

the Commissioner of Civil Service under the powers granted him by
said section 695 of the Administrative Code and Executive order No.
39 dated June 23, 1936, in accordance with the procedure prescribed
by civil service rules and regulations.
DONE at the City of Manila, this first day of April, in the year
of Our Lord, nineteen hundred and forty, and of the Commonwealth
of the Philippines, the fifth.
MANUEL L. QUEZON
By the President:
JORGE B. VARGAS
589
PRESCRIBING UNIFORM PROCEDURE TO BE FOLLOWED IN

THE INVESTIGATION OF ADMINISTRATIVE CASES
For the purpose of uniformity in the investigation of

administrative charges against government officers and employees,
and supplementing provisions of Executive Order Numbered thirty-
nine, dated June twenty-three, nineteen hundred and thirty-six, the
following procedure governing the conduct of such investigation is
hereby prescribed:
The respondent must be notified in writing of the charges

against him by the head or chief of the bureau or office concerned,
informing him that he will be heard on said charges on a given date
if he so elects, and shall be allowed within a period of not less than
seventy-two hours after receipt thereof to submit a detailed answer
to the same together with whatever written evidence he may desire
to present in support of his side of the case.
If he elects to be heard on said charges, a hearing will be held

wherein he will be given opportunity to defend himself personally or
by his counsel: Provided, however, That in all cases the investigation
shall be finished within fifteen days.
The complete record of the case, with comment and

recommendation shall be forwarded through the usual channels
to the Commissioner of Civil Service within ten days after the
termination of the investigation.
590
DONE at the City of Manila this twenty-sixth day of May

in the year of Our Lord, nineteen hundred and forty, and of the
Commonwealth of the Philippines, the fifth.
MANUEL L. QUEZON
By the President:
JORGE B. VARGAS
591
TRANSFERRING FROM THE GENERAL AUDITING OFFICE

THE FUNCTION OF PREPARING AND KEEPING
THE ACCOUNTS OF THE VARIOUS DEPARTMENTS,
BUREAUS, OFFICES AND DEPENDENCIES OF THE
NATIONAL GOVERNMENT, INCLUDING THE SUPREME
COURT, THE COURT OF APPEALS, THE PEOPLE’S
COURT, THE COMMISSION ON ELECTIONS AND THE
UNIVERSITY OF THE PHILIPPINES, THE FUNCTION
OF ACTING UPON REQUISITIONS OR ORDERS FOR
SUPPLIES, MATERIALS, FURNITURE AND EQUIPMENT,
AND THE FUNCTION OF OPERATING THE SALVAGE
WAREHOUSE.
WHEREAS, in order to give the heads of the various

departments, bureaus, and offices of the National Government
more direct control over the expenditures of their respective
appropriations, it is necessary to separate the accounting and
auditing services of the National Government;
WHEREAS, the separation of the accounting and auditing

services of the National Government will not only facilitate the
giving of financial information for the guidance and use of the heads
of the various departments, bureaus and offices of the National
Government, but also insure the effectiveness and independence of
the audit of government accounts by the General Auditing Office;
and
WHEREAS, the function of acting upon requisition or order s

for supplies, materials, furniture and equipment, and the operation
of the Salvage Warehouse are more of an administrative than an
auditing function;
NOW, THEREFORE, I, MANUEL ROXAS, President of t he

Philippines, by virtue of the powers vested in me by Republic Act
No. 51, do hereby order that:
592
The function of preparing and keeping the accounts of the

different departments, bureaus, offices and instrumentalities of
the National Government, including the Supreme Court, the Court
of Appeals, the People’s Court, the Commission on Elections, and
the University of the Philippines, and such other duties as are
incidental to the said function, which are now being performed by the
General Auditing Office, are hereby transferred, together with their
corresponding appropriations, personnel, books, records, equipment
and other property, to the administrative control and supervision of
the respective heads of the different departments, bureaus, offices
and instrumentalities of the National Government.
The function of acting upon requisitions or orders for

supplies, materials, furniture and equipment heretofore performed
by the General Auditing Office is hereby transferred, together
with the corresponding appropriation, personnel, books, records,
equipment and other property to a property Requisition Committee,
composed of the Financial Assistant in the Office of the President
as Chairman, a representative of the Auditor General and of the
Commissioner of the Budget as members.
The supervision over the awarding of contracts to be entered

into by the Division of Purchase and Supply is hereby placed under
a Committee on Contracts composed of the Purchasing Agent as
chairman, the Auditor General or his authorized representative, and
a duly authorized representative of the requisitioning department,
bureau, or office as members.
The Salvage Warehouse, which is being operated under the

supervision of the General Auditing Office, is hereby transferred,
together with their corresponding appropriations, personnel, books,
records, equipment and other property, to the Industrial Division of
the Bureau of Prisons.
The personnel actually performing the auditing and

accounting services of the National Government under National
Audit Departments A, B, and C of the General Auditing Office,
593
items Nos. 115 to 283 of section 1-N, pages 482-488 of Republic Act
No.80 including those provided under special budgets, are hereby
allocated as follows:
XXX XXX XXX
The Auditor General, with the approval of the President is

hereby authorized to modify and adjust the plantilla of personnel of
the General Auditing Office by changing designations, consolidating
vacant positions or creating new ones in lieu thereof as may be found
necessary. The heads of departments and chief s of bureaus and
offices concerned are also hereby authorized, subject to the approval
of the President, to consolidate and create new positions and adjust
their plantillas of personnel in the organization of their respective
accounting offices provided that no additional appropriation shall
be involved in such changes.
The accounting services hereby transferred shall operate

on suitable quarters provided by the corresponding department,
bureau, office or instrumentality. The accounting officer as well as
the subordinate personnel shall be appointed by the corresponding
department head upon recommendation of the chief of bureau or
office concerned with the concurrence of the Commissioner of the
Budget.
The Commissioner of the Budget shall exercise supervisory

authority over the work of the accounting officers for the purpose of
seeing to it that uniformity in accounting practice and procedure is
observed in accordance with existing accounting system prescribed
by the Auditor General, and that accounting reports are accomplished
promptly and submitted as the needs of the services may from time
to time require.
Executive Order No. 42 dated May 26, 1945, and all other
laws, rules and orders which are inconsistent herewith are hereby
594
Done at the City of Manila , this 7th day of February, in

the year of Our Lord, nineteen hundred and forty-seven, and of the
Independence of the Philippines , the first.
(Sgd.) MANUEL ROXAS

BY THE PRESIDENT:
(Sgd.) EMILIO ABELLO

Chief of the Executive Office
595
CREATING AN INTEGRITY BOARD TO RECEIVE AND PASS

UPON ALL COMPLAINTS AGAINST THE CONDUCT OF
ANY OFFICER OF THE GOVERNMENT, OR FOR GRAFT,
CORRUPTION, DERELICTION OF DUTY OR ANY OTHER
IRREGULARITY IN OFFICE; TO RECOMMEND TO THE
PRESIDENT THE COURSE OF ACTION TO BE TAKEN IN
EACH CASE AND TO INVESTIGATE SPECIFIC CASES
THEREOF
By virtue of the powers vested in me, I, Elpidio Quirino,

President of the Philippines, do hereby create a board to be known
as the “Integrity Board,” composed of the following:
The Vice-President of the Philippines . . . . Chairman

Dr. Jorge C. Bocobo . . . . . . . . . . . . . . . . . . Vice Chairman
Justice Mariano H. de Joya . . . . . . . . . . . . Member
Mrs. Pilar Hidalgo Lim . . . . . . . . . . . . . . . . Member
Judge Pompeyo Diaz . . . . . . . . . . . . . . . . . Member and
Executive Secretary
The Board shall have the following powers, duties and

functions:
To receive and pass upon all duly subscribed and sworn

complaints against the conduct of any public, official, and those for
graft, corruption, dereliction of duty, or irregularity in office. All
proceedings of the Board respecting any case under its consideration
shall be confidential until the prima facie merits of the same shall
have been established by the Board. After satisfying itself that a
prima facie case exists, the Board shall, if the official concerned does
not belong to the executive department, recommend to the President
the course of action to be subsequently taken thereon.
596
After such prima facie case shall have been established, to

proceed to a thorough and complete investigation of any specific
case of graft, corruption, dereliction of duty or irregularity in
office involving any official of the executive department of the
Government, and such other cases as the President may direct,
and to submit to the President the record of such investigation,
together with its findings and recommendations. In connection with
such investigation, the Board is hereby granted all the powers of
an investigating committee under section 71 and section 580 of
the Revised Administrative Code, including the powers to summon
witnesses, administer oaths and take testimonies or other evidence
relevant to the investigation. The Board is also empowered and
authorized to call upon any department, bureau, office, agency or
instrumentality of the Government, including the corporations
owned or controlled by it, for such information as it may require in
the performance of its functions, and, for the purpose of securing
such information, it shall have access to, and the right to examine,
any books, documents, papers or records thereof subject to the
limitations prescribed by existing law.
The Board may designate any one of its members, including

the Chairman, to conduct the investigation of any case falling under
paragraph (b) hereof.
Justice De Joya shall render service on either full or part

time basis as may be authorized, and with compensation to be fixed,
by the President. Any other member of the Board who is not a public
official or not in the employ of the Government may also receive
such compensation as may be fixed by the President.
The Board shall finish the investigation in each particular

case within thirty days and its report and recommendations
thereon shall be submitted to the President within fifteen days after
termination of the investigation.
597
Done in the City of Baguio, this 25th day of May, in the year
of Our Lord, nineteen hundred and fifty and of the Independence of
the Philippines, the fourth.
ELPIDIO QUIRINO
BY THE PRESIDENT:
TEODORO EVANGELISTA
Executive Secretary
598
ORGANIZING THE PHILIPPINE INFORMATION SERVICE
Pursuant to the powers vested in me by Republic Act No. 422,

I, Elpidio Quirino, President of the Philippines, do hereby order:
SECTION 1. There is hereby created an of ce to be known
as the Philippine Information Service which shall function under
the Office of the President of the Philippines and whose duty
shall be to inform the public at home and abroad of the policies,
plans, activities and accomplishments of the Government; of public
problems and the manner in which they are being considered and
solved; of the general progress and foreign relations of the Republic
of the Philippines as well as the culture of the people; and of all such
news and developments, within the country or outside, which may
be of general interest to the people or may affect their welfare.
SEC. 2. The governing and policy-determining body of the

Philippine Information Service shall be the Philippine Information
Board composed of seven members appointed by the President for
a term of one year. The President shall designate from among the
members the Chairman and Vice-Chairman thereof. Members of the
Board who are not of cers and employees of the Government shall
receive a per diem of twenty- ve pesos for every meeting attended
by them. The Press Secretary in the Office of the President shall be
ex-oficio Secretary of the Board.
SEC. 3. The Board, immediately after being constituted or

upon the appointment of a majority of its members, shall adopt such
policies, plans, rules and regulations as may be necessary to guide
and govern the operation of the Philippine Information Service and
thereafter proceed with the organization of the service itself and the
appointment of its staff.
SEC. 4. The Philippine Information Service shall be headed

by a Director of Information who shall carry out the policies and
directives of the Board.
599
SEC. 5. Upon approval by the Board, the Philippine

Information Service shall employ such systems, procedures and
methods or avail of all such means and media as it may deem
necessary to enable it to adequately discharge its duties and functions
and to fully and efficiently realize its aims and objectives.
SEC. 6. The Board is hereby further authorized to integrate

into the Philippine Information Service the public information and
publicity services of all Departments, agencies and instrumentalities
of the Government, including those of the government-owned or
controlled corporations, reorganizing such services, transferring
personnel from one to the other, reinforcing those that are de cient
or dispensing with those that are unnecessary, as the case may
be, thereby simplifying, coordinating and rendering more ef cient
and effective the public information and publicity services of the
Government.
SEC. 7. The Philippine Information Service is hereby

authorized to call upon any Department, bureau, office, agency
or instrumentality of the Government, including the corporations
owned and controlled by it, for such assistance as it may require from
time to time or as may be necessary to carry out speci c projects.
SEC. 8. The Board shall have at its disposal for the

organization and maintenance of the Philippine Information
Service the sums appropriated under item IV-3 and item IV-11,
pages 51 and 58, respectively, of Republic Act No. 563 and other
sums now available or to be made available for public information
and publicity purposes in any other Department, office, agency and
instrumentality of the Government, including the government-
owned or controlled corporations. The expenditure of the funds
herein provided for shall be itemized in a special budget to be
prepared by the Board in accordance with Commonwealth Act No.
246.
600
SEC. 9. This Order shall take effect immediately.
Done in the City of Manila, this 29th day of September,

in the year of Our Lord, nineteen hundred and fifty, and of the
Independence of the Philippines, the fifth.
ELPIDIO QUIRINO
BY THE PRESIDENT:
TEODORO EVANGELISTA
Executive Secretary
601
UNIFORM CHARTER FOR GOVERNMENT CORPORATIONS
Pursuant to the powers vested in me by Republic Act

Numbered Four hundred and twenty-two, otherwise known as
the Reorganization Act of 1950, I, Elpidio Quirino, President of
the Philippines, do hereby promulgate this Uniform Government
Corporate Charter.
DURATION, PURPOSES AND POWERS OF CORPORATIONS
SECTION 1. Duration. - All government owned or controlled

corporations shall exist for a period of twenty-five years from the
effectivity of this Executive Order.
XXX XXX XXX
SEC. 10. Prohibition for Board of Members. - No chairman

or member of the Board of Directors of a corporation shall at the
same time serve in the corporation in any capacity whatsoever other
than as chairman or member thereof, unless otherwise authorized
by the President.
XXX XXX XXX
SEC. 22. Repeal or Modification. - All Acts, Executive

Orders, Administrative Orders, and Proclamations or parts thereof
inconsistent with any of the provisions of this Order are hereby
SEC. 23. Constitutionality. - If any provisions of this Order

shall be held invalid, the other provisions shall not thereby be
affected.
SEC. 24. Effectivity. - The provisions of this Executive Order

shall take effect immediately upon promulgation hereof.
602
Done in the City of Manila, this 5th day of January, in

the year of Our Lord, nineteen hundred and fifty-one, and of the
Independence of the Philippines, the fifth.
(Sgd.) ELPIDIO QUIRINO

BY THE PRESIDENT:
(Sgd.) TEODORO EVANGELISTA

Executive Secretary
603
CREATING THE PRESIDENTIAL COMPLAINT AND ACTION

COMMISSION UNDER THE OFFICE OF THE
PRESIDENT
For the purpose of expediting actions on all complaints

against the manner of various officials and personnel of the different
Executive departments, bureaus, offices, agencies, instrumentalities,
and government owned or controlled corporations are performing
the duties entrusted to them by law and on complaints against the
acts, conduct or behaviour of any official or employee thereof, and to
encourage public participation in making government service more
responsive to the needs of the people, I, RAMON MAGSAYSAY,
by law, hereby create the Complaint and Action Commission in the
Office of the President.
1. The Complaint and Action Commission shall be directly

under and responsible solely to the President of the Philippines .
2. The Complaint and Action Commission shall be headed

by a Technical Assistant to be designated by the President, who
shall be known as Commissioner, and shall be composed of personnel
who may be assigned or detailed to the Commission from other
departments, bureaus, offices, agencies or other instrumentalities
of the government upon the recommendation of the Commissioner.
3. The Presidential Complaint and Action Commission

shall have the following duties and functions:
a. To conduct fact-finding investigations of complaints

against the manner the various executive departments,
bureaus, offices, agencies, instrumentalities, and government-
owned or controlled corporations are performing the duties
entrusted to them by law, or complaints against the acts,
conduct or behaviour of any officer or employee;
604
b. To recommend promptly appropriate action on

all such complaints as may be received by the President
or by the Commission to the end that justice, economy,
efficiency and high standards of morality may be observed
and effected in the various branches, departments, bureaus,
offices, agencies, and instrumentalities of the Government,
including government-owned or controlled corporations;
c. To keep the President of the Philippines informed

on the implementation of government measures designed
to improve the public service and efficiency of government
personnel;
d. To make and submit from time to time appropriate

recommendations for the improvement of the administration
of the government and its essential services and operations;
and,
e. To perform such other duties and related functions

as the President of the Philippines may from time to time
assign to the Commission.
4. The Commissioner of the Presidential Complaint and

Action Commission is hereby authorized to utilize and allow the use
of any form of transportation or means of conveyance in his official
travels or those of the Commission personnel.
5. The Commissioner or his representative may summon

witnesses by subpoena and subpoena duces tecum, administer
oaths and take testimony relevant to the fact-finding investigation
conducted by them.
6. All departments, bureaus, offices, agencies and

instrumentalities of the government, including the government-
owned and controlled corporations, are enjoined to extend full
assistance and cooperation to the Commissioner of the Presidential
Complaint and Action Commission or his representative. To
facilitate this arrangement, the heads of all executive departments,
605
bureaus, offices, agencies and instrumentalities of the government,

including the government-owned and controlled corporations, shall
designate an official whose services shall be made available to the
Presidential Complaint and action Commission whenever such
services are required on matters pertaining to their respective,
departments, bureaus, offices, agencies or entities.
Done in the City of Manila , this 30th day of December, in

the year of Our Lord, nineteen hundred and fifty-three, and of the
Independence of the Philippines, the eight.
(Sgd.) RAMON MAGSAYSAY

By the President:
(Sgd.) FRED RUIZ CASTRO

Executive Secretary
606
ABOLISHING THE INTEGRITY BOARD
By virtue of the powers vested in me by law, I, RAMON

MAGSAYSAY, President of the Philippines, do hereby abolish the
Integrity Board created in Executive Order No. 318 dated May 25,
1950, as amended.
The records, properties and equipment of the Integrity Board

are hereby transferred to the Presidential Complaint and Action
Commission created in Executive Order No. 1 dated December 30,
1953.
Done in the City of Manila , this 5th day of January, in

the year of Our Lord, nineteen hundred and fifty-four, and of the

By the President:

Executive Secretary
607
CREATING THE PRESIDENTIAL COMPLAINTS AND

ACTION COMMITTEE UNDER THE OFFICE OF THE
PRESIDENT
Cognizant of the numerous complaints being received by the

Office of the President regarding the manner the various officials and
personnel of the different Executive Departments, bureaus, of ces,
agencies, instrumentalities and government-owned or controlled
corporations are performing the duties entrusted to them by law
and complaints against the acts, conduct or behavior of any official
or employee thereof, and for the purpose of expediting actions on
all such complaints and encouraging public participation in making
government service more responsive to the needs of the people, I,
Ramon Magsaysay, President of the Philippines, by virtue of the
powers vested in me by law, hereby create the Complaints and
Action Committee in the Of ce of the President.
1. The Complaints and Action Committee shall be directly

under and responsible solely to the President of the Philippines.
2. The Complaints and Action Committee shall be headed

by Technical Assistant to be designated by the President, who shall
be known as Chairman, and shall be composed of such personnel
as may be required to properly carry out its duties and functions.
Personnel of other departments, bureaus, offices, agencies or
instrumentalities of the government may, upon recommendation of
the Chairman, be assigned or detailed to the Committee.
3. The Presidential Complaints and Action Committee

shall have the following duties and functions:
(a) To receive, process and evaluate, and to conduct or

cause the performance of preliminary fact- nding investigations
of, complaints regarding the manner the various executive
departments, bureaus, offices, agencies or instrumentalities of the
government, including government-owned or controlled corporations
are performing the duties entrusted to them by law:
608
(b) To receive, process and evaluate, and to conduct or

cause the performance of preliminary fact- nding investigations
of, sworn complaints against the acts, conduct or behaviour of any
official or employee of any of the executive departments, bureaus,
offices, agencies, or instrumentalities of the government, including
government-owned or controlled corporations;
(c) To refer and/or recommend to the governmental agency

concerned for appropriate action all such complaints as may be
received by the Committee to the end that justice, economy, efficiency
and a high standard of morality may be observed and effected in
the various branches, departments, bureaus, offices, agencies and
instrumentalities of the government, including government-owned
or controlled corporations;
(d) To keep the President of the Philippines informed on the

implementation of government measures designed to improve the
public service and the efficiency of government personnel;
(e) To make and submit from time to time appropriate

recommendations for the improvement of the administration of the
government and its essential services and operations; and
(f) To perform such other duties and related functions as

the President of the Philippines may from time to time assign to it.
4. The Chairman of the Presidential Complaints and Action
Committee is hereby authorized to utilize and allow the use of any
form of transportation or means of conveyance in his of cial travels
or those of the Committee personnel.
5. The Chairman or his representative may summon

witnesses by subpoena and subpoena duces tecum, administer
oaths and take, testimony relevant to the preliminary fact- nding
investigation conducted by them.
6. All departments, bureaus, of ces, agencies and

instrumentalities of the government, including the government-
owned and controlled corporations, are enjoined to extend full
609
assistance and cooperation to the Chairman of the Presidential

Complaints and Action Committee or his representative. To facilitate
this arrangement, the heads of all executive departments, bureaus,
offices agencies and instrumentalities of the government, including
government-owned and controlled corporations, shall designate an
official whose services shall be made available to the Presidential
Complaints and Action Committee whenever such services are
required on matters pertaining to their respective departments,
bureaus, offices, agencies or entities.
This Executive Order supersedes Executive Order No. 1,

dated December 30, 1953.
Done in the City of Manila, this 17th day of March, in

Independence of the Philippines, the eighth.
RAMON MAGSAYSAY
By the President:
FRED RUIZ CASTRO

Executive Secretary
610
AMENDING PRARAGRAPH FIVE OF EXECUTIVE ORDER NO.

111, DATED AUGUST 30, 1937, ENTITLED “PROHIBITING
AND RESTRICTING THE PRACTICE OF NEPOTISM”
Paragraph Five of Executive Order Numbered One Hundred

Eleven, dated August 30, 1937, is hereby amended to read as
follows:
“The following are exempted from the operation of these

rules: persons employed in a confidential capacity, teachers,
physicians and members of the Armed Forces of the Philippines,
provided, however, that in each particular instance full report of
such appointment shall be made to the President. The restriction
mentioned in Section 2 hereof shall not also be applicable to the
case of a member of any family who, after his or her appointment
to any position in an office or bureau, contracts marriage with
someone employed in the same office or bureau, in which event the
employment or retention therein of both husband and wife may be
allowed.”
Done in the City of Manila , this 23th day of March, in


By the President:

Executive Secretary
611
PROHIBITING THE USE OF PUBLIC FUNDS FOR THE

ENTERTAINMENT OF VISITING OFFICIALS AND
THE COLLECTION OF CONTRIBUTIONS FROM
GOVERNMENT OFFICIALS AND EMPLOYEES FOR THE
SAME PURPOSE
WHEREAS, experience has shown that expenses incurred

by local governments for the entertainment of inspecting or visiting
members of the Cabinet or other ranking government officials
constitute a heavy drain on their finances;
WHEREAS, these officials are provided with funds for their

travelling expenses and are entitled to reimbursement of said
expenses actually incurred by them in their official inspection or
visit from the funds pertaining to their respective offices; and
WHEREAS, this administration is committed to the use of

public funds for strictly official purposes;
NOW, THEREFORE, by virtue of the authority vested in

me by law, I, RAMON MAGSAYSAY, President of the Philippines,
do hereby prohibit the use of local governments’ funds for the
entertainment of any government official who may be on official
inspection or visit in the provinces, cities or municipalities, and
enjoin provincial, city and municipal officials from tendering any
such entertainments even if chargeable against private funds. I also
prohibit the collection of contributions from government officials
and employees for the same purpose.
612
Done in the City of Manila, this 19th day of April, in the

year of Our Lord, nineteen hundred and fifty-four, and of the

By the President:

Executive Secretary
613
AMENDING SECTION 2 OF EXECUTIVE ORDER NO. 111, DATED

AUGUST 30, 1937, ENTITLED “PROHIBITING AND
RESTRICTING THE PRACTICE OF NEPOTISM.”
Section 2 of Executive Order No. 111, dated August 30, 1937,

“2. When there is already one member of a family in an

Office or Bureau, no other member of such family shall be eligible
for appointment to any position therein.”
Done in the City of Manila, this 11th day of August, in


By the President:

Executive Secretary
614

ORDER NO. 111 DATED AUGUST 30, 1937, ENTITLED
NEPOTISM”
Paragraph Five of Executive Order Numbered One Hundred

Eleven, dated August 30, 1937, as amended by Executive Order
Numbered Twenty-one, dated March 23, 1954, is hereby further
“The following are exempted from the operation of these

rules: persons employed in a confidential capacity, teachers,
physicians, members of the police forces in chartered cities and of
the Armed Forces of the Philippines, provided, however, that in each
particular instance full report of such appointment shall be made to
the President. The restriction mentioned in section 2 hereof shall
not also be applicable to the case of a member of any family who,
after his or her appointment to any position in any office or bureau,
contracts marriage with someone employed in the same office or
bureau, in which event the employment or retention therein or both
husband and wife may be allowed.”
Done in the City of Manila, this 13th day of May, in the year of
Our Lord, nineteen hundred and fifty-five, and of the Independence
of the Philippines, the ninth.
RAMON MAGSAYSAY
By the President:
MARIANO YENKO, JR.

615

ORDER NO. 111 DATED AUGUST 30, 1937, ENTITLED
NEPOTISM”
Paragraph Five of Executive Order No. 111 dated August

30, 1937, as last amended by Executive Order No. 114 dated May
13, 1955, is hereby further amended to read as follows:
“The following are exempted from the operation of these rules:

persons employed in a confidential capacity, teachers, physicians,
members of the police forces in chartered cities and of the Armed
Forces of the Philippines, commissioned officers, enlisted men and
civilian personnel of the Bureau of Coast and Geodetic Survey:
Provided, however, That in each particular instance full report of
such appointment shall be made to the President. The restriction
mentioned in section 2 hereof shall not also be applicable to the
case of a member of any family who, after his or her appointment
to any position in an office or bureau, contracts marriage with
someone employed in the same office or bureau, in which event the
employment or retention therein of both husband and wife may be
allowed.”
DONE IN THE City of Manila, this 10th Day of October, in

the year of Our Lord, nineteen hundred and fifty-five, and of the
Independence of the Philippines, the tenth.
RAMON MAGSAYSAY
By the President:
FRED RUIZ CASTRO

Executive Secretary
616
CREATING A PRESIDENTIAL ANTI-GRAFT COMMITTEE TO

ENFORCE AND IMPLEMENT REPUBLIC ACT NO. 1379
WHEREAS, Republic Act No. 1379, popularly referred to as

the Anti-Graft Law, decrees the forfeiture in favor of the State of
any property found to have been unlawfully acquired by any public
officer or employee, and provides for the proceedings therefor;
WHEREAS, the enforcement of said law is not only the sworn

duty of the President but also a desideratum in the Administration’s
current drive against graft and corruption;
WHEREAS, experience has shown that Republic Act No.

1379, far from being self-executing, requires the indispensable
services of a working group that shall determine, investigate, and
build up the cases against all these reasonably suspected or shown
to have unlawfully acquired properties and/or amassed wealth while
in public office;
NOW, THEREFORE, I, CARLOS P. GARCIA, President of

the Philippines, by virtue of the powers vested in me by law, do hereby
create an investigating group to be known as the Presidential Anti-
Graft Committee to be composed of such personnel as the President
may designate from time to time.
The primary function of the committee shall be to implement

and enforce Republic Act No. 1379 by inquiring into, investigating,
determining, and verifying any and all unlawfully acquired
properties of government officials and employees, particularly in
the Bureau of Customs and the Bureau of Internal Revenue and in
government offices and institutions where similar investigations as
those contemplated under this Executive Order have been started
previously; and obtaining the needed evidence to establish such
unlawful acquisitions of property and/or other forms of wealth
acquired by them while in public office.
617
The committee herein created is granted all the powers of an

investigating committee under Sections 71 and 580 of the Revised
Administrative Code.
The committee is hereby authorized to call upon any

department, bureau, office, agency or instrumentality of the
Government, including government-owned or controlled corporations,
for such clerical help, other assistance and/or information as it may
need in the performance of its functions, and for this purpose, it shall
have access to, and the right to examine, any books, documents,
papers or records thereof subject to the limitations provided by
law.
The committee is hereby directed to forward all its reports

of investigations, findings and recommendations, with all the
supporting evidence and other papers relevant thereto, to the
President of the Philippines.
Done in the City of Manila, this 18th day of February,

in the year of Our Lord, nineteen hundred and sixty, and of the
Independence of the Philippines, the fourteenth.
(SGD.) CARLOS P. GARCIA

By the President:
(SGD.) NATALIO P. CASTILLO

Executive Secretary
618
ABOLISHING THE PRESIDENTIAL ANTI-GRAFT COMMITTEE

TO ENFORCE AND IMPLEMENT REPUBLIC ACT NO.
1379, CREATED BY EXECUTIVE ORDER NO. 378, DATED
FEBRUARY 18, 1960
By virtue of the powers vested in me by law, I, CARLOS

P. GARCIA, President of the Philippines, do hereby abolish the
Presidential Anti-Graft Committee to enforce and implement
Republic Act No. 1379, created by Executive Order No. 378, dated
February 18, 1960. All its records, properties and equipment shall
be turned over to the Office of the President.
This Order shall take effect of December 30, 1961.
Done in the City of Manila, this 29th day of December, in

the year of Our Lord, nineteen hundred and sixty-one, and of the
Independence of the Philippines, sixteenth.
(SGD.) CARLOS P. GARCIA

By the President:
(SGD.) EDILBERTO B. GALLARES

619
CREATING A PRESIDENTIAL ANTI-GRAFT COMMITTEE
By virtue of the powers vested in me by law, I, DIOSDADO

MACAPAGAL, President of the Philippines, do hereby create a
Presidential Anti-Graft Committee to be composed of such personnel
as the President may designate from time to time.
The main functions of the Committee shall be:
1. To inquire into, and take measures to prevent, the

occurrence of graft and of violations of Republic Act No. 3019 in
such departments, bureaus, offices, agencies or instrumentalities,
including government-owned or controlled corporations, as the
President may determine, under the supervision of the Department
Head concerned;
2. In such departments, bureaus, offices, agencies or

instrumentalities, including government-owned or controlled
corporations, as the President may determine, to implement and
enforce Republic Act No. 1379 by inquiring into, investigating,
determining and verifying any and all unlawfully acquired
properties of the officials and employees thereof, and obtaining the
needed evidence to establish such unlawful acquisition of property
or other forms of wealth acquired by them while in public office.
The committee herein created is granted all the powers of an

investigating committee under Sections 71 and 580 of the Revised
Administrative Code.
The committee is hereby authorized to call upon any

department, bureau, office, agency or instrumentality of
the Government, including government-owned or controlled
corporations, for such assistance or information as it may need in
the performance of its functions, and for this purpose, it shall have
access to, and the right to examine, any books, documents, papers or
records thereof subject to the limitations provided by law.
620
The committee is hereby directed to forward all its reports

of investigations, findings and recommendations, with all the
supporting evidence and other papers relevant thereto, to the
President of the Philippines.
The properties and equipment of the Presidential Anti-Graft

Committee created by Executive Order No. 378 dated February 18,
1960, and abolished by Executive Order No. 457 dated December
29, 1961, shall be turned over to the committee herein created; and
the Committee shall, at its request, be given access to any of the
records of the defunct Presidential Anti-Graft Committee that are
now in the custody of the National Bureau of Investigation.
This Order shall take effect immediately.
Done in the City of Manila, this 18th day of January, in

the year of Our Lord, nineteen hundred and sixty-two, and of the
Independence of the Philippines, the sixteenth.
(SGD.) DIOSDADO MACAPAGAL

By the President:
(SGD.) AMELITO R. MUTUC

Executive Secretary
621
INSTITUTING THE PRESIDENTIAL CITATION FOR HONESTY

AND INTEGRITY
In order to encourage and recognize outstanding, meritorious

and exemplary acts or records of honesty and integrity as a creed of
life, and thereby strengthen the moral foundations of the nation, I,
DIOSDADO MACAPAGAL, President of the Philippines, pursuant
to the powers vested in me by law, do hereby institute a special
award to be known as the Presidential Citation for Honesty and
Integrity.
1. The Presidential Citation for Honesty and Integrity

shall be conferred upon any individual who has performed acts or
established records demonstrating his possession of honesty and
integrity as a creed of life.
2. The Presidential Citation for Honesty and Integrity will

be a parchment diploma.
3. The Philippines Heraldry Committee shall prepare the

design of the diploma and the criteria for its award.
Done in the City of Manila, this 12th day of May, in the year of
Our Lord, nineteen hundred and sixty-two, and of the Independence
of the Philippines, the sixteenth.
SGD.) DIOSDADO MACAPAGAL

By the President:
(SGD.) AMELITO R. MUTUC

Executive Secretary
622
ENJOINING ALL PUBLIC OFFICERS AND EMPLOYEES OF THE

GOVERNMENT AND PRIVATE CITIZENS TO COOPERATE
MORE FULLY IN THE INTENSIFIED ANTI-SMUGGLING
CAMPAIGN
WHEREAS, in recent years there have been rampant and

unabated smuggling and illicit trading in smuggled products of all
kinds, not limited to foreign cigarettes;
WHEREAS, the campaign against smuggling has been and

will continue to be intensified by this Administration through a
series of bold and energetic measures;
WHEREAS, the smuggling and traffic in smuggled goods

can not long endure if our citizenry voluntarily desist from buying,
possessing or using smuggled products;
WHEREAS, the smuggling and traffic in smuggled articles

is a form of subversion which erodes our economic gains, promotes
syndicated crimes, encourages lawlessness, and have resulted in
the deterioration of the moral character of our people;
WHEREAS, under existing laws, smuggling and traffic in,

including mere possession of, smuggled goods are penal offenses, and
in the case of public officers and employees constitute administrative
offenses as well;
WHEREAS, it is our people’s patriotic duty to help the

Government stamp out this pernicious practice;
NOW, THEREOFR, I, FERDINAND E. MARCOS, President

of the Philippines, by virtue of the powers vested in me by law, do
hereby enjoin all officers and employees of the government and all
inhabitants of the Philippines to cooperate to the fullest extent
in the current drive against smuggling and traffic in smuggled
products and to abide by and comply with the existing laws and
623
orders on smuggling, under pain of being subjected to civil, penal

and administrative sanctions, as the case may be.
Any violation of this Order by any such officer or employee

shall be a ground for the taking of administrative action against him
and the imposition of severe penalty, including dismissal from the
service whenever appropriate. All heads of departments, bureaus,
offices, agencies and instrumentalities of the Government, including
government-owned or controlled corporations, are enjoined to file
the corresponding administrative charges against any officer or
employees found violating this Order.
Prosecuting officers are likewise directed to file the

corresponding criminal action and to prosecute to the limit violators
of the laws on smuggling.
This supersedes Executive Order No. 146 dated March 20,

1965.

year of Our Lord, nineteen hundred and sixty-six.
(Sgd.) Ferdinand E. Marcos

By the President:
(Sgd.) RAFAEL M. SALAS

Executive Secretary
624
REQUIRING ALL OFFICERS AND EMPLOYEES OF THE

GOVERNMENT VISITING BUSINESS ESTABLISHMENTS
FOR PURPOSES OF EXAMINING BOOKS OF ACCOUNTS,
RECORDS, OR OTHERWISE INSPECTING THE PREMISES
THEREOF IN CONNECTION WITH THE PERFORMANCE
OF THEIR DUTIES TO SIGN A REGISTRY BOOK
By virtue of the powers vested in me by law, I, FERDINAND

E. MARCOS, President of the Philippines, do hereby enjoin all
government examiners, inspectors, agents and other personnel who
visit business establishments for purposes of examining books of
accounts and/or records, or who otherwise inspect the premises, of
said establishments in connection with the performance of their
duties or with any investigation, to sign a registry book kept thereat
exclusively for said purpose, before starting such examination or
inspection.
Such registry book shall indicate, inter alia, the following

: the name and position of the inspecting or examining officer; the
bureau, office or branch of the government to which he belongs; the
date and time of the examination, inspection or investigation; its
purpose; and the authority therefor.
Any violation of this Order by any officer or employee shall

be a ground for disciplinary action.
The Secretary of Finance is hereby authorized to promulgate

such rules and regulations as may be necessary to carry out the
provisions of this Order.
625
Done in the City of Manila, this 23rd day of April, in the year
of Our Lord, nineteen hundred and sixty-six.

By the President:
(Sgd.) RAFAEL M. SALAS

Executive Secretary
626
OUTLINING THE PROCEDURE BY WHICH COMPLAINANTS

CHARGING GOVERNMENT OFFICIALS AND EMPLOYEES
WITH COMMISSION OF IRREGULARITIES SHOULD BE
GUIDED
WHEREAS, it is necessary that the general public be

duly informed or reminded of the procedure provided by law and
regulations by which complaints against public officials and
employees should be presented and prosecuted;
WHEREAS, actions on complaints are at times delayed

because of the failure to observe the formal requisites therefor, to
indicate with sufficient clearness and particularity the charges or
offenses being aired or denounced, and to file the complain with the
proper office or authority;
WHEREAS, without any way curtailing the constitutional

guarantee of freedom of expression, the Administration believes
that many complaints or grievances could be resolved at the lower
levels of government if only the provisions of law and regulations on
the matter are duly observed by the parties concerned; and
WHEREAS, while all sorts of officials misconduct should

be eliminated and punished, it is equally compelling that public
officials and employees be given the opportunity afforded them by
the constitution and law to defend themselves in accordance with
the procedure prescribed by law and regulations;
NOW, THEREOFRE, I, FERDINAND E. MARCOS,

law, do hereby order:
Complaints against public officials and employees shall be

in writing, subscribed and sworn to by the complainants, describing
in sufficient detail and particularity the acts or conduct complained
of, instead of generalizations.
627
Complaints against presidential appointees shall be filed

with the Office of the President or the Department Head having the
direct supervision or control over the official involved.
Those against subordinate officials and employees shall be

lodged with the proper department or agency head.
Those against elective local officials shall be filed with the

Office of the President in case of provincial and city officials, with
the provincial governor or board secretary in case of municipal
officials, and with the municipal or city mayor or secretary in case
of barrio officials.
Those against members of police forces shall be filed with

the corresponding local board of investigators headed by the city or
municipal treasurer, except in the case of those appointed by the
President which should be filed with the Office of the President.
Complaints against public officials and employees shall be

promptly acted upon and disposed of by the officials or authorities
concerned in accordance with pertinent laws and regulations so
that the erring official or employees can be soonest removed or
otherwise disciplined and the innocent, exonerated or vindicated
in like manner, and to the end also that other remedies, including
court action, may be pursued forthwith by the interested parties
after administrative remedies shall have been exhausted.
DONE in the City of Manila, this 6th day of October, in the

year of Our Lord, nineteen hundred and seventy.

By the President:

Executive Secretary
628
REQUIRING THE FILING OF CRIMINAL COMPLAINTS

AGAINST GOVERNMENT PERSONNEL CHARGED
ADMINISTRATIVELY, WHERE THE ADMINISTRATIVE
CASE INVOLVES DISHONESTY, CORRUPTION OR
MORAL TURPITUDE
WHEREAS, it has been observed that some government

personnel have been charged administratively without the
corresponding criminal complaints being filed against them, despite
the fact that the offense involves dishonesty, corrupt or immoral
acts punishable under penal laws;
WHEREAS, such omission is not conducive to good

government, as it enables dishonest or corrupt respondents to avoid
the penal sanction of the law in proper cases; and
WHEREAS, sound public administration demands that the

full force of the law be brought to bear upon erring government
personnel to upgrade the public service and to enhance the people’s
faith in the Government.
NOW, THEREFORE, I, FERDINAND E. MARCOS, President

hereby require that in all instances where administrative cases
involving dishonesty, corruption or moral turpitude are filed against
government personnel, the corresponding criminal complaints must
be filed against such erring personnel. Department Secretaries and
heads of government agencies, national and local, shall see to the
due enforcement or implementation of this Order.
629
Done in the City of Manila, this 26th day of April, in the year
of Our Lord, nineteen hundred and seventy-two.

By the President :
(Sgd.) RONALDO B. ZAMORA

Acting Assistant Executive Secretary
630
CREATING THE PRESIDENTIAL COMMISSION ON GOOD

GOVERNMENT
WHEREAS, vast resources of the government have been

amassed by former President Ferdinand E. Marcos, his immediate
family, relatives, and close associates both here and abroad;
WHEREAS, there is an urgent need to recover all ill-gotten

wealth;
NOW, THEREFORE, I, CORAZON C. AQUINO, President

of the Philippines, do hereby order;
SECTION. 1. There is hereby created a Commission, to

be known as the Presidential Commission on Good Government,
composed of Minister Jovito R. Salonga, as Chairman, Mr. Ramon
Diaz, Mr. Pedro L. Yap, Mr. Raul Daza and Ms. Mary Conception
Bautista as Commissioners.
SEC. 2. The Commission shall be charged with the task of

assisting the President in regard to the following matters:
(a) The recovery of all ill-gotten wealth accumulated by

former President Ferdinand E. Marcos, his immediate
family, relatives, subordinates and close associates,
whether located in the Philippines or abroad, including
the takeover or sequestration of all business enterprises
and entities owned or controlled by them, during
his administration, directly or through nominees, by
taking undue advantage of their public office and/or
using their powers, authority, influence, connections or
relationship.
631
(b) The investigation of such cases of graft and corruption

as the President may assign to the Commission from
time to time.
(c) The adoption of safeguards to ensure that the above

practices shall not be repeated in any manner under
the new government, and the institution of adequate
measures to prevent the occurrence of corruption.
SEC. 3. The Commission shall have the power and

authority:
(a) To conduct investigations as may be necessary in order to

accomplish and carry out the purposes of this order.
(b) To sequester or place or cause to be placed under its

control or possession any building or office wherein any
ill-gotten wealth or properties may be found, and any
records pertaining thereto, in order to prevent their
destruction, concealment or disappearance which would
frustrate or hamper the investigation or otherwise
prevent the Commission from accomplishing its task.
(c) To provisionally take over in the public interest or to

prevent its disposal or dissipation, business enterprises
and properties taken over by the government of the
Marcos Administration or by entities or persons close to
former President Marcos, until the transactions leading
to such acquisition by the latter can be disposed of by
the appropriate authorities.
(d) To enjoin or restrain any actual or threatened commission

of acts by any person or entity that may render moot and
academic, or frustrate, or otherwise make ineffectual the
efforts of the Commission to carry out its tasks under
this order.
632
(e) To administer oaths, and issue subpoenas requiring

the attendance and testimony of witnesses and/or the
production of such books, papers, contracts, records,
statement of accounts and other documents as may
be material to the investigation conducted by the
Commission.
(f) To hold any person in direct or indirect contempt and

impose the appropriate penalties, following the same
procedures and penalties provided in the Rules of
Court.
(g) To seek and secure the assistance of any office, agency

or instrumentality of the government.
(h) To promulgate such rules and regulations as may be

necessary to carry out the purposes of this order.
SEC. 4. (a) No civil action shall lie against the commission or

any member thereof for anything done or omitted in the discharge of
the task contemplated by this order.
(b) No member or staff of the commission shall be required

to testify or produce evidence in any judicial, legislative
or administrative proceeding concerning matters within
its official cognizance.
SEC. 5. It is hereby directed that, subject to the availability

of funds, the amount of Fifty Million Pesos, or so much thereof as
may be needed to carry out the purposes of this order, be set aside
out of the funds of the National Treasury and made available for
expenditure by the Commission.
SEC. 6. This Executive Order shall take effect

immediately.
633
Done in the City of Manila, this twenty-eight day of February,

in the year of Our Lord, nineteen hundred and eighty-six.
(Sgd.) CORAZON C. AQUINO

President
By the President:
(Sgd.) JOKER P. ARROYO

Executive Secretary
634
REGARDING THE FUNDS, MONEYS, ASSETS, AND PROPERTIES

ILLEGALLY ACQUIRED OR MISAPPROPRIATED BY
FORMER PRESIDENT FERDINAND MARCOS, MRS.
IMELDA ROMUALDEZ MARCOS, THEIR CLOSE
RELATIVES, SUBORDINATES, BUSINESS ASSOCIATES,
DUMMIES, AGENTS, OR NOMINEES
WHEREAS, the Government of the Philippines is in

possession of evidence showing that there are assets and properties
pertaining to former President Ferdinand E. Marcos, and/or his
wife, Imelda Romualdez Marcos, their close relatives, subordinates,
business associates, dummies, agents or nominees which had been
or were acquired by them directly or indirectly, through or as a
result of the improper or illegal use of funds or properties owned
by the Government of the Philippines or any of its branches,
instrumentalities, enterprises, banks or financial institutions, or
by taking undue advantage of their office, authority, influence,
connections or relationship, resulting in their unjust enrichment
and causing grave damage and prejudice to the Filipino people
Republic of the Philippines;
WHEREAS, said assets and properties are in the form of

bank accounts, deposits, trust accounts, shares of stocks, buildings,
shopping centers, condominium, mansions, residences, estates and
other kinds of real and personal properties in the Philippines and in
various countries of the world;
WHEREAS, a Presidential Commission on Good Government

has been established primarily charged with the responsibility of
recovering the aforesaid assets and properties for the Philippine
Government;
WHEREAS, any transfer, disposition, concealment or

dissipation of said assets and properties would frustrate, obstruct or
hamper the efforts of the Government of the Philippines to recover
such assets and properties;
635
WHEREAS, the Presidential Commission on Good

Government is further charged with the duty of investigating claims
with respect to these assets and properties;
WHEREAS, in accordance with the requirements of justice

and due process, it is the position of the new democratic government
that former President Marcos and his wife, Imelda Romualdez
Marcos, their close relatives, subordinates, business associates,
dummies, agents or nominees be afforded fair opportunity to contest
these claims before appropriate Philippine authorities;
NOW, THEREFORE, I. Corazon C Aquino, President of

Philippines, hereby;
(1) Freeze all assets and properties in the Philippines in

which former President Marcos and/or his wife, Imelda Romualdez
dummies, agents, or nominees have any interest or participation;
(2) Prohibit any person from transferring, conveying

encumbering or otherwise depleting or concealing such assets and
or properties or from assisting or taking part in their transfer,
encumbrance, concealment, or dissipation under pain of such as
penalties as are prescribed by law.
(3) Require all persons in the Philippines holding such assets

or properties. whether located in the Philippines or abroad, in their
names as nominees, agents or trustees, to make full disclosure of the
same to the Commission on Good Government within (30) days from
publication of this Executive Order, or the substance thereof, in at
least two (2) newspapers of general circulation in the Philippines
(4) Prohibit former President Ferdinand Marcos and/or his

wife. Imelda Romualdez Marcos, their close relatives, subordinates,
business associates, dummies, agents, or nominees from transferring,
conveying, encumbering, concealing or dissipating said assets or
properties in the Philippines and abroad, pending the outcome of
appropriate proceedings in the Philippines to determine whether
636
any such assets or properties were acquired by them through or

as a result of improper or illegal use of or the conversion of funds
belonging to the Government of the Philippine or any of its branches,
instrumentalities, enterprises, banks or financial institutions,
or by taking undue advantage of their official position, authority,
relationship, connection or influence to unjustly enrich themselves
at the expense and to the grave damage and prejudice of the Filipino
people and the Republic of the Philippines
The Commission on Good Government is hereby authorized

to request and appeal to foreign governments wherein any such
assets or properties may be found to freeze them and otherwise
prevent their transfer, conveyance, encumbrance, concealment
or liquidation by former President Ferdinand E. Marcos and Mrs
Romualdez Marcos, their close relatives, subordinates, business
associates, dummies, agents, or nominees, pending the outcome of
appropriate proceedings in the Philippines to determine whether
such assets or properties were acquired by such persons through
improper or illegal use of funds belonging to the Government of the
Philippines or any of its branches, instrumentalities, enterprises,
banks, or financial institutions or by taking undue advantage of
their office authority, influence, connections or relationship.
DONE in the City of Manila, Philippines this day 12th day

of March, in the year of our Lord Nineteen Eighty Six,

President
By the President:

Executive Secretary
637
DEFINING THE JURISDICTION OVER CASES INVOLVING

THE ILL GOTTEN WEALTH OF FORMER PRESIDENT
FERDINAND E. MARCOS, MRS. IMELDA R. MARCOS,
MEMBERS OF THEIR IMMEDIATE FAMILY, CLOSE
RELATIVES, SUBORDINATES, CLOSE AND/OR BUSINESS
ASSOCIATES, DUMMIES, AGENTS AND NOMINEES

Government was created on February 28, 1986 by Executive
Order No. 1 to assist the President in the recovery of ill-gotten
wealth accumulated by former President Ferdinand E. Marcos, his
immediate family, relatives, subordinates and close associates;

Government under Executive Order No. 2, dated March 12, 1986, has
likewise been primarily charged with the responsibility of recovering
the assets and properties illegally acquired or misappropriated
by former President Ferdinand E. Marcos and/or Mrs. Imelda R.
dummies, agents or nominees;
WHEREAS, Article II, Section 1 (d) of Proclamation No.

3, dated March 25, 1986, declaring a national policy to implement
the reforms mandated by the people, protecting their basic rights,
adopting a provisional constitution, and providing for an orderly
transition to a government under a new constitution, states that:
“The President shall give priority to measures to achieve the
mandate of the people to recover ill-gotten properties amassed by
the leaders and supporters of the previous regime and protect the
interest of the people through orders of sequestration or freezing of
assets or accounts”;
WHEREAS, the vital task of the Commission involves the

just and expeditious recovery of such ill-gotten wealth in order
that the funds, assets and other properties may be used to hasten
national economic recovery;
638
WHEREAS, the overriding considerations of national interest

and national survival require that the Presidential Commission on
Good Government achieve its vital task efficiently and effectively,
with due regard to the requirements of fairness and due process;

of the Philippines, hereby order:
SECTION 1. Any provision of the law to the contrary

notwithstanding, the Presidential Commission on Good Government,
with the assistance of the Office of the Solicitor General and other
government agencies, is hereby empowered to file and prosecute all
cases investigated by it under Executive Order No. 1, dated February
28, 1986, and Executive Order No. 2, dated March 12, 1986, as may
be warranted by its findings.
SEC. 2. The Presidential Commission on Good Government

shall file all such cases, whether civil or criminal, with the
Sandiganbayan, which shall have exclusive and original jurisdiction
thereof.
SEC. 3. Civil suits for restitution, reparation of damages, or

indemnification for consequential damages, forfeiture proceedings
provided for under Republic Act No. 1379, or any other civil actions
under the Civil Code or other existing laws, in connection with
Executive Order No. 1 dated February 28, 1986 and Executive
Order No. 2 dated March 12, 1986, may be filed separately from
and proceed independently of any criminal proceedings and may be
proved by a preponderance of evidence.
The technical rules of procedure and evidence shall not be

strictly applied to the civil cases filed hereunder.
SEC. 4. No person shall be excused from attending and

testifying or from producing books, papers, correspondence,
memoranda and other records on the ground that the testimony or
evidence, documentary or otherwise, required of him may tend to
incriminate him or subject him to prosecution; but no individual
639
shall be prosecuted criminally for or on account of any transaction,

matter or thing concerning which he is compelled, after having
claimed the privilege against self-incrimination, to testify or produce
evidence, documentary or otherwise, except that such individual so
testifying shall not be exempt from prosecution and conviction for
perjury or false testimony committed in so testifying or from such
administrative proceedings as may be proper and necessary.
SEC. 5. The Presidential Commission on Good Government

is authorized to grant immunity from criminal prosecution to any
person who testifies to the unlawful manner in which any respondent,
defendant or accused has acquired or accumulated the property or
properties in question in cases where such testimony is necessary to
prove violations of existing laws.
SEC. 6. The time limitations provided for in Sections 2 and

6 of Republic Act No. 1379 regarding the filing of cases and the
rendition of judgments thereon shall not apply to the cases filed
hereunder.
SEC. 7. The provisions of this Executive Order shall prevail

over any and all laws, or parts thereof, as regards the investigation,
prosecution, and trial of cases for violations of laws involving the
acquisition and accumulation of ill-gotten wealth as mentioned in
Executive Order Nos. 1 and 2.
SEC. 8. This Executive Order shall take effect immediately.
Done in the City of Manila, this 7th day of May in the year
of Our Lord, nineteen hundred and eighty-six.

President
By the President:

Executive Secretary
640
ENHANCING THE INDEPENDENCE OF THE COMMISSION ON

AUDIT
WHEREAS, Article XII of the 1973 Constitution, providing

for an independent Commission on Audit, among others, was
adopted in the Provisional Constitution pursuant to Proclamation
No. 3 dated March 25, 1986;
WHEREAS, in order to enable the Commission on Audit

to discharge effectively its powers and functions, it is necessary to
enhance its independence;

of the Philippines do hereby order:
SECTION. 1. There shall be a total reorganization of the

Commission on Audit; provided that the reorganization be done
within the framework of the Commission’s appropriations and
in coordination with the Ministry of the Budget; and provided
further that the separation/replacement of personnel in connection
therewith be done consistent with executive Order No. 17 dated
May 28, 1986.
SEC. 2. The costs of audit services rendered to government

agencies by the Commission on Audit shall be covered by fund sources
provided in Section 24 of P.D. 1445 which shall be incorporated in the
national budget and included in the Annual General Appropriations
Law; provided that in the case of government-owned and/or controlled
corporations and its subsidiaries, the cost of audit services shall be
fixed at an amount equivalent to one fourth of one per centum (1/4 of
1%) of the operating budgets of these corporations/subsidiaries.
This amount shall be remitted in six equal installments

every sixty days (the first installment to fall on January 15 of
every calendar year) to the National Treasury by each government
corporation/subsidiary concerned; provided, that if the operating
641
budgets of the government corporation/subsidiary are reduced

during the year as a result of operating fund shortfall or reduction
of its operations, the costs of audit services previously determined
shall be reduced proportionately.
It shall be the responsibility of the highest official of a

government owned or controlled corporation and its subsidiaries
to furnish the Commission on Audit a duly certified copy of the
operating budget of his corporation one month before the onset of a
new calendar year.
Any official or employee who refuses or fails to submit a

certified copy of the operating budget to the Commission as required,
or fails to remit the amount due for the cost of audit services, shall
be held liable for neglect of duty, and shall be subject to disciplinary
or administrative actions under the existing rules and regulations
of the Civil Service Commission.
SEC. 3. All allowances and fringe benefits granted by the

government-owned or controlled corporations to the personnel of the
Commission’s auditing units in such corporations shall be directly
defrayed by the Commission from its own appropriation pursuant to
Section 31 of the General Provisions of the General Appropriations
Act otherwise known as Batas Pambansa Bilang 879.
SEC. 4. Appropriations authorized for the Commission on

Audit shall be automatically released. The quarterly release of funds
by the Ministry of the Budget and Management to the Commission
shall be based on the latter’s operating budget.
SEC. 5. Funds needed to implement this order shall be

drawn from salary lapses and savings of the Commission on Audit.
Subsequently funding requirements shall be incorporated in the
annual appropriations of the Commission.
SEC. 6. All orders, issuances, rules and regulations or any

part thereof which are inconsistent with the provisions of this Order
are hereby repealed and/or modified accordingly.
642
SEC. 7. This order shall take effect immediately.
Done in the City of Manila, this 19th day of June, in the year
of Our Lord, nineteen hundred and eighty-six.

President
By the President:

Executive Secretary
643
CREATING THE PHILIPPINE INFORMATION AGENCY
WHEREAS, there is a need for an agency in government

with a means to communicate with the people, and in turn for the
people to vigorously express their opinions, views and beliefs to
the President; and in the same manner, a need for efficient flow of
public information required by the people to assist them in decision
making to improve overall quality of life;
WHEREAS, the media reach in the country is sorely limited

to a small portion of the population concentrated in certain key
cities, thereby limiting access of people to information;
WHEREAS, the government in partnership with private

media, can better meet the information needs of the people;
WHEREAS, the public has a right to information and an

agency should ensure that they have access to information;
WHEREAS, basic information prior to February, 1986,

focused more on the molding of public opinion toward the
unquestioning acceptance of government thinking and that the flow
of communication was predominantly one-way, from government to
the people;
WHEREAS, before little distinction was made between

political and development oriented public information, hence
resources for public information were often used for political
purposes. In most instances, political information and/or political
propaganda crowded/out development oriented public information;
WHEREAS, a) there were no regular nationwide outlets

where citizens could obtain government publications and materials,
i.e. brochures, pamphlets; b) interministry coordination of public
information efforts was not effective due to lack of appropriate
644
mechanisms; c) people’s participation in the planning and conduct

of information programs was not encouraged;
WHEREAS, the manipulative nature of government

information leads to deterioration of its credibility even of its
public information officers concerned with development oriented
information;

of the Republic of the Philippines, by virtue of the powers vested in
me by the fundamental laws and the sovereign will of the people, do
hereby order the following:
SECTION 1. Creation of the Philippine Information Agency

(PIA) to be headed by a Director.
SEC. 2. Mission. The Philippine Information Agency shall

provide for free flow of accurate, timely and relevant information.
1. To assist people in decision making and identification of

opportunities to improve quality of life.
2. To enable citizens to participate meaningful in the

democratic processes.
SEC. 3. Functions.
1. Establish and maintain selected regional/provincial

information centers on community needs for use in
planning communications programs and provide basic
information of government and on areas of particular
interests to the community it serves;
2. Provide technical assistance to other government agencies

on the communications component of their programs;
3. Plan and implement information programs of national

scope;
645
4. Assess information needs of the people through opinion

polls and surveys to be used to systematically obtain the
public’s needs and views on government programs and
to plan information programs;
5. Conduct research studies for policy formulation and the

evaluation of the information program effectiveness;
6. Upgrade skills of government information officers, rural

broadcasters, communicators, journalists and other
communications personnel through training services
and/or consultancy;
7. Support the development and expansion of indigenous

media and information/communications technology;
8. Perform whatever tasks may be assigned by the

President.
SEC. 4. Access to Media. The Director shall have access

to government media agencies not under his direct control for the
purpose of disseminating development-oriented information.
SEC. 5. Organization. The Director shall prepare an

organizational structure embodying the staffing requirements of
his Office.
SEC. 6. Advisory Council. An advisory council composed of

communication professionals and well-respected citizens will advise
the Agency in the conduct of its activities to ensure that information
needs of the people are met.
SEC. 7. Budget. The PIA is likewise directed to cause

the preparation of an operating budget in collaboration with the
Ministry of Budget and Management on the details necessary to
put into effect the implementation as prescribed by this Executive
Order in accordance with the existing laws, rules and regulations.
For succeeding budget years, appropriations for the PIA shall
646
be prepared in accordance with the regular government budget

procedures.
SEC. 8. Transfer of Records, Assets and Equipment. All

records, assets and equipment of the OMA/NMPC/MOI and their
bureaus, except those of Bureau of National and Foreign Information,
Bureau of Broadcasts and the Maharlika Broadcasting Corporation,
are hereby transferred to the appropriate units of the Agency.
SEC. 9. Implementing Order. The Director is hereby

authorized to issue such orders, rules and regulations as may be
necessary to implement the provisions of this Executive Order;
Provided, that approval of the Ministry of Budget and Management
is obtained relative to the new staffing pattern including appropriate
salary rates, the organizational structure at divisional and lower
levels, and the alignment of existing appropriations.
SEC. 10. Repealing Clause. All laws, executive orders,

proclamation, rules and regulations or parts thereof which are
inconsistent herewith, are hereby repealed or modified accordingly.
SEC. 11. Effectivity. This Executive Order shall take effect

immediately.
Done in the City of Manila, this 24th day of December in the

year of Our Lord, nineteen hundred and eighty-six.

President
By the President:

Executive Secretary
647
FURTHER AMENDING PRESIDENTIAL DECREE NO. 1486,

AS AMENDED BY PRESIDENTIAL DECREE NO. 1606
CREATING A SPECIAL COURT TO BE KNOWN AS
“SANDIGANBAYAN”
WHEREAS, the Sandiganbayan has been vested with

exclusive jurisdiction to try civil and criminal cases against public
officers for violations of the Revised Penal Code and special laws,
including Republic Act No. 3019, otherwise known as the Anti-Graft
and Corrupt Practices Act and Republic Act No. 1379;
WHEREAS, there is a need to amend this law to allow the

court to try such civil and criminal cases in a forum most convenient
to it;

of the Philippines, do hereby order:
SECTION 1. Section 2 of the Presidential Decree No. 1486,

as amended by Presidential Decree No. 1606, is hereby amended to
read as follows:
SEC. 2. Official Station: Place of holding Sessions. - The

of all cases filed with it irrespective of the place where they may
have arisen; Provided, however, that the Presiding Justice may
authorize any division or divisions of the court to hold sessions
and decide cases at any time and place outside Metro Manila, and,
where the interest of justice so requires, outside the territorial
boundaries of the Philippines. The Sandiganbayan may require
the services of the personnel and the use of facilities of the courts
or other government offices where any of the divisions is holding
session, and the personnel of such courts or offices shall be subject
to the orders of the Sandiganbayan.
648
SECTION 2. This Executive Order shall take effect

immediately.
DONE in the City of Manila, this 24th day of December, in

the year of Our Lord, nineteen hundred and eighty-six.

President
By the President:

Executive Secretary
649
REPEALING PRESIDENTIAL DECREES

NOS. 1791 AND 1774
WHEREAS, under Presidential Decree No. 1791, all official

acts, decisions or orders of the Minister of National Defense or any
other Cabinet Member or any other public officer of the civilian
government or member of the Armed Forces, in carrying out orders
or regulations issued by the then President pursuant to Proclamation
Nos. 1081 and 1104, were deemed the latter’s official acts, decisions
and orders;
WHEREAS, the said decree, in effect exempted the said

officials or public officers from liability for any wrongdoing, criminal
or civil, if done in obedience to or in implementation of the said
orders, rules, regulations, decrees or instructions;
WHEREAS, the present government recognizes the

constitutionally enshrined principles that public office is a public
trust and that public officers and employees shall remain accountable
to the people; accordingly, the said decree has no more place in our
democratic system;
WHEREAS, there is a Presidential Decree No. 1774, which

is published in a secondary source which practically treats of the
same subject matter except insofar as the said decree specified the
Integrated National Police and the Civilian Home Defense Force, in
addition to the officers mentioned in Presidential Decree No. 1791;
WHEREAS, there is confusion as to the content of Presidential

Decree No. 1774 since it appears in the Malacañang Records Office
that Presidential Decree No. 1774 deals with an amendment to
Section 20(b) of the National Internal Revenue Code;

650
SECTION 1. Presidential Decree No. 1791 is hereby

repealed.
SEC. 2. Presidential Decree No. 1774, as published in the

secondary source and insofar as it deals with a subject matter
similar to or the same as Presidential Decree No. 1791, is likewise
hereby repealed.

year of Our Lord, nineteen hundred and eighty-seven.

President
By the President:

Executive Secretary
651
DECLARING THE EFFECTIVITY OF THE CREATION OF THE

OFFICE OF THE OMBUDSMAN AS PROVIDED FOR IN
THE 1987 CONSTITUTION
WHEREAS, the 1987 Constitution has created an

independent Office of the Ombudsman.

hereby order:
SECTION 1. The office of the Ombudsman as provided

for under Section 5, Article XI, of the 1987 Constitution is hereby
declared to be now in existence.
SEC. 2. The Office of the Ombudsman shall be composed of

the Ombudsman to be known as Tanod-bayan, one over-all Deputy
and at least one Deputy each for Luzon, Visayas, and Mindanao.
A separate Deputy for the Military establishment may likewise be
appointed.
SEC. 3. The officials and employees of the Office of the

Ombudsman, other than the Deputies, shall be appointed by the
Ombudsman according to the Civil Service Law.
SEC. 4. The Ombudsman and his Deputies shall be natural-

born citizens of the Philippines, and at the time of their appointment,
at least forty years old, of recognized probity and independence,
and members of the Philippine Bar, and must have not have been
candidates for any elective office in the immediately preceding
election. The Ombudsman must have for ten years or more been a
judge or engaged in the practice of law in the Philippines.
During their tenure, they shall be subject to the same

disqualifications and prohibitions as provided for in Section 2 of
Article IX-A of the Constitution.
652
SEC. 5. The Ombudsman and his deputies shall be appointed

by the President from a list of a t least six nominees prepared by
the Judicial and Bar Council, and from a list of three nominees
for every vacancy thereafter. Such appointments shall require no
confirmation. All vacancies shall be filled within three months after
they occur.
SEC. 6. The Ombudsman and his Deputies shall have the

rank of Chairman and Members, respectively, of the Constitutional
Commissions, and they shall receive the same salary, which shall
not be decreased during their term of office.
SEC. 7. The Ombudsman and his Deputies shall serve for

a term of seven years without reappointment. They shall not be
qualified to run for any office in the election immediately succeeding
their cessation from office.
SEC. 8. The Ombudsman and his Deputies, as protectors

of the people, shall act promptly on complaints filed in any form
or manner against public officials or employees of the Government,
or any subdivision, agency or instrumentality thereof, including
government-owned or controlled corporations, and shall, in
appropriate cases, notify the complainants of the action taken and
the result thereof.
SEC. 9. The Office of the Ombudsman shall have the

following powers, functions, and duties:

any act or omission of any public official, employee,
office or agency, when such act or omission appears to
be illegal, unjust, improper, or inefficient.
(2) Direct, upon complaint or at its own instance, any

public official or employee of the Government, or any
subdivision, agency or instrumentality thereof, as well
as of any government-owned or controlled corporation
with original charter, to perform and expedite any act
653
or duty required by law, or to stop, prevent, and correct

any abuse or impropriety in the performance of duties.
(3) Direct the officer concerned to take appropriate

action against a public official or employee at fault,
and recommend his removal, suspension, demolition,
fine, censure, or prosecution, and ensure compliance
therewith.

subject to such limitations as may be provided by law, to
furnish it with copies of documents relating to contracts
of transactions entered into by his office involving the
disbursements or use or public funds or properties, and
report any irregularity to the Commission on Audit for
appropriate action.
(5) Request any government agency for assistance

and information necessary in the discharge of its
responsibilities, and to examine, if necessary, pertinent
records and documents.

circumstances so warrant and with due prudence.

mismanagement, fraud, and corruption in the
Government and make recommendations for their
elimination and the observance of high standards of
ethics and efficiency.
(8) Promulgate its rules of procedure and exercise such

other powers or perform such functions or duties as may
be provided by law.
SEC. 10. The Office of the Ombudsman shall enjoy fiscal

autonomy. Its approved annual appropriations shall be automatically
654
SEC. 11. All laws, orders, issuances, rules and regulations

or parts thereof inconsistent with this Executive Order are hereby

immediately.
DONE in the City of Manila, this 24th day of July, in the

year of Our Lord, nineteen hundred and eighty-seven.

President
By the President:

Executive Secretary
655
INSTITUTING THE “ADMINISTRATIVE CODE OF 1987”
WHEREAS, the Administrative Code currently in force was

first forged in 1917 when the relationship between the people and
the government was defined by the colonial order then prevailing;
WHEREAS, efforts to achieve an integrative and overall

recodification of its provisions resulted in the Administrative Code
of 1978 which, however, was never published and later expressly
repealed;
WHEREAS, the effectiveness of the Government will be

enhanced by a new Administrative Code which incorporates in a
unified document the major structural, functional and procedural
principles and rules of governance; and
WHEREAS, a new Administrative Code will be of optimum

benefit to the people and Government officers and employees as
it embodies changes in administrative structures and procedures
designed to serve the people;

of the Philippines, by the powers vested in me by the constitution do
hereby promulgate the Administrative Code of 1987, as follows:
INTRODUCTORY PROVISIONS
SECTION 1. Title. – This Act shall be known as the

“Administrative Code of 1987.”
XXX XXX XXX
656
BOOK I
SOVEREIGNTY AND GENERAL ADMINISTRATION
Chapter 1 – The National Territory
SEC. 3. What Comprises National Territory. – The national

territory comprises the Philippine archipelago, with all the islands
and waters embraced therein, and all other territories over which
the Philippines has sovereignty or jurisdiction, consisting of its
terrestrial, fluvial, and aerial domains, including its territorial sea,
the seabed, the subsoil, the insular shelves, and other submarine
areas. The waters around, between, and connecting the islands of
the archipelago, regardless of their breadth and dimensions, form
part of the internal waters of the Philippines.
XXX XXX XXX
Chapter 9 – GENERAL PRINCIPLES

GOVERNING PUBLIC OFFICERS
SEC. 32. Nature of Public Office. – Public office is a public

trust. Public officers and employees must at all times be accountable
to the people, serve them with the utmost responsibility, integrity,
loyalty and efficiency, act with patriotism and justice, and lead
modest lives.
SEC. 33. Policy of Change of Citizenship. – Public officers

and employees owe the State and the Constitution allegiance at all
times, and any public officer or employee who seeks to change his
citizenship or acquire the status of an immigrant of another country
during his tenure shall be dealt with by law.
SEC. 34. Declaration of Assets, Liabilities and Net worth.

– A public officer or employee shall upon assumption of office and
as often thereafter as may be required by law, submit a declaration
under oath of his assets, liabilities, and net worth.
657
SEC. 35. Ethics in Government. – All public officers and

employees shall be bound by a Code of Ethics to be promulgated by
the Civil Service Commission.
SEC. 36. Inhibition Against Purchase of Property at Tax

Sale. – No officer or employee of the government shall purchase
directly or indirectly any property sold by the government for the
non-payment of any tax, fee or other public charge. Any such
purchase by an officer or employee shall be void.
SEC. 37. Powers Incidental to Taking of Testimony. – When

authority to take testimony or receive evidence is conferred upon
any administrative officer or any non-judicial person, committee,
or other body, such authority shall include the power to administer
oaths, summon witnesses, and require the production of documents
by a subpoena duces tecum.
SEC. 38. Liability of Superior Officers. – (1) A public officer

shall not be civilly liable for acts done in the performance of his
official duties, unless there is a clear showing of bad faith, malice or
gross negligence.
(2) Any public officer who, without just cause, neglects to

perform a duty within a period fixed by law or regulation, or within
a reasonable period if none is fixed, shall be liable for damages to
the private party concerned without prejudice to such other liability
as may be prescribed by law.
(3) A head of a department or a superior officer shall not be

civilly liable for the wrongful acts, omissions of duty, negligence, or
misfeasance of his subordinates, unless he has actually authorized
by written order the specific act or misconduct complained of.
SEC. 39. Liability of Subordinate Officers. – No subordinate

officer or employee shall be civilly liable for acts done by him in good
faith in the performance of his duties. However, he shall be liable
for wilful or negligent acts done by him which are contrary to law,
morals, public policy and good customs even if he acted under orders
or instructions of his superiors.
658
XXX XXX XXX
BOOK V
Title I – CONSTITUTIONAL COMMISSIONS
Subtitle A – CIVIL SERVICE COMMISSION
Chapter I – GENERAL PROVISIONS
SEC. 1. Declaration of Policy. – The State shall insure and

promote the Constitutional mandate that appointments in the Civil
Service shall be made only according to merit and fitness; that the
Civil Service Commission, as the central personnel agency of the
Government shall establish a career service, adopt measures to
promote morale, efficiency, integrity, responsiveness, and courtesy
in the civil service, strengthen the merit and rewards system,
integrate all human resources development programs for all levels
and ranks, and institutionalize a management climate conducive to
public accountability; that public office is a public trust and public
officers and employees must at all times be accountable to the people;
and that personnel functions shall be decentralized, delegating the
corresponding authority to the departments, offices and agencies
where such functions can be effectively performed.
SEC. 2. Duties and Responsibilities of Public Officers and

Employees. – Public Officers and employees shall have the duties,
responsibilities, and accountability provided in Chapter 9, Book I of
this Code.
XXX XXX XXX
Chapter 6 – RIGHT TO SELF ORGANIZATION
XXX XXX XXX
SEC. 46. Discipline: General Provisions. – (a) No officer or

employee in the Civil Service shall be suspended or dismissed except
for cause as provided by law and after due process.
(b) The following shall be grounds for disciplinary action:
659
(1) Dishonesty;
(2) Oppression;
(3) Neglect of duty;
(4) Misconduct;
(5) Disgraceful and immoral conduct;
(6) Being notoriously undesirable;
(7) Discourtesy in the course of official duties;
(8) Inefficiency and incompetence in the performance
of official duties;
(9) Receiving for personal use of a fee, gift or other
valuable thing in the course of official duties or in
connection therewith when such fee, gift, or other
valuable thing is given by any person in the hope or
expectation of receiving favor or better treatment
than that accorded other persons, or committing
acts punishable under the anti-graft laws;
(10) Conviction of a crime involving moral turpitude;
(11) Improper or unauthorized solicitation of
contributions from subordinate employees and by
teachers or school officials from school children;
(12) Violation of existing Civil Service Law and rules or
reasonable office regulations;
(13) Falsification of official document;
(14) Frequent unauthorized absences or tardiness
in reporting for duty, loafing or frequently
unauthorized absence from duty during regular
office hours;
(15) Habitual drunkenness;
(16) Gambling prohibited by law;
(17) Refusal to perform official duty or render overtime
service;
(18) Disgraceful, immoral or dishonest conduct prior to
entering the service;
(19) Physical or mental incapacity or disability due to
immoral or vicious habits;
(20) Borrowing money by superior officers from
subordinates or lending by subordinates to superior
officers;
660
(21) Lending money at usurious rates of interest;

(22) Wilful failure to pay just debts or willful failure to
pay taxes due to the government;
(23) Contracting loans of money or other property from
persons with whom the office of the employee
concerned has business relations;
(24) Pursuit of private business, vocation or profession
without the permission required by Civil Service
rules and regulations;
(25) Insubordination;
(26) Engaging directly or indirectly in partisan political
activities by one holding a non-political office;
(27) Conduct prejudicial to the best interest of the
service;
(28) Lobbying for personal interest or gain in legislative
halls and offices without authority;
(29) Promoting the sale of tickets in behalf of private
enterprises that are not intended for charitable or
public welfare purposes and even in the later cases
if there is no prior authority;
(30) Nepotism as defined in Section 60 of this Title.
(c) Except when initiated by the disciplining authority, no

complaint against a civil service official or employee shall be given
due course unless the same is in writing and subscribed and sworn
to by the complainant.
(d) In meting out punishment, the same penalties shall be

imposed for similar offenses and only one penalty shall be imposed
in each case. The disciplining authority may impose the penalty
of removal from the service, demotion in rank, suspension for not
more than one year without pay, fine in an amount not exceeding
six months’ salary or reprimand.
SEC. 47. Disciplinary Jurisdiction. – (1) The Commission

shall decide upon appeal all administrative disciplinary cases
involving the imposition of a penalty of suspension for more than
thirty days, or fine in an amount exceeding thirty days’ salary,
661
demotion in rank or salary or transfer, removal or dismissal from

office. A complaint may be filed directly with the Commission
by a private citizen against a government official or employee in
which case it may hear and decide the case or it may deputize any
department or agency or official or group of officials to conduct the
investigation. The results of the investigation shall be submitted
to the Commission with recommendation as to the penalty to be
imposed or other action to be taken.
(2) The Secretaries and heads of agencies and

instrumentalities, provinces, cities and municipalities shall have
jurisdiction to investigate and decide matters involving disciplinary
action against officers and employees under their jurisdiction. Their
decisions shall be final in case the penalty imposed is suspension
for not more than thirty days or fine in an amount not exceeding
thirty days’, salary. In case the decision rendered by a bureau
or office head is appealable to the Commission, the same may be
initially appealed to the department and finally to the Commission
and pending appeal, the same shall be executory except when the
penalty is removal, in which case the same shall be executory only
after confirmation by the Secretary concerned.
(3) An investigation may be entrusted to regional director

recommendation to the chief of bureau or office or department within
the period specified in Paragraph (4) of the following Section.
(4) An appeal shall not stop the decision from being

executory, and in case the penalty is suspension or removal, the
respondent shall be considered as having been under preventive
suspension during the pendency of the appeal in the event he wins
an appeal.
SEC. 48. Procedure in Administrative Cases Against

Non-Presidential Appointees. – (1) Administrative proceedings
may be commenced against a subordinate officer or employee by
the Secretary or head of office of equivalent rank, or head of local
government, or chiefs of agencies, or regional directors, or upon
sworn, written complaint of any other person.
662
(2) In the case of a complaint filed by any other persons, the

complainant shall submit sworn statements covering his testimony
and those of his witnesses together with his documentary evidence.
If on the basis of such papers a prima facie case is found not to
exist, the disciplining authority shall dismiss the case. If a prima
facie case exists, he shall notify the respondent in writing, of the
charges against the latter, to which shall be attached copies of the
complaint, sworn statements and other documents submitted, and
the respondent shall be allowed not less than seventy-two hours
after receipt of the complaint to answer the charges in writing under
oath, together with supporting sworn statements and documents, in
which he shall indicate whether or not he elects a formal investigation
if his answer is not considered satisfactory. If the answer is found
satisfactory, the disciplining authority shall dismiss the case.
(3) Although a respondent does not request a formal

investigation, one shall nevertheless be conducted when from the
allegations of the complaint and the answer of the respondent,
including the supporting documents, the merits of the case cannot
be decided judiciously without conducting such an investigation.
(4) The investigation shall be held not earlier than five days
nor later than ten days from the date of receipt of respondent’s
answer by the disciplining authority, and shall be finished within
thirty days from the filing of the charges, unless the period is
extended by the Commission in meritorious cases. The decision
shall be rendered by the disciplining authority within thirty days
from the termination of the investigation or submission of the report
of the investigator, which report shall be submitted within fifteen
days from the conclusion of the investigation.
(5) The direct evidence for the complainant and the

respondent shall consist of the sworn statement and documents
submitted in support of the complaint or answer, as the case may
be, without prejudice to the presentation of additional evidence
deemed necessary but was unavailable at the time of the filing
of the complaint or answer, upon which the cross-examination,
by respondent and the complainant, respectively, shall be based.
663
Following cross-examination, there may be redirect and recross-

examination.
(6) Either party may avail himself of the services of counsel

and may require the attendance of witnesses and the production of
documentary evidence in his favor through the compulsory process
of subpoena or subpoena duces tecum.
(7) The investigation shall be conducted only for the

purpose of ascertaining the truth and without necessarily adhering
to technical rules applicable in judicial proceedings. It shall be
conducted by the disciplining authority concerned or his authorized
representative.
The phrase “any other party” shall be understood to be a

complainant other than those referred to in subsection (a) hereof.
SEC. 49. Appeals. – (1) Appeals, where allowable, shall be

made by the party adversely affected by the decision within fifteen
days from receipt of the decision unless a petition for reconsideration
is seasonably filed, which petition shall be decided within fifteen
days. Notice of the appeal shall be filed with the disciplining office,
which shall forward the records of the case, together with the notice
of appeal, to the appellate authority within fifteen days from filing of
the notice of appeal, with its comment, if any. The notice of appeal
shall specifically state the date of the decision appealed from and
the date of receipt thereof. It shall also specifically set forth clearly
the ground relied upon for excepting from the decision.
(2) A petition for reconsideration shall be based only on

any of the following grounds: (a) new evidence has been discovered
which materially affects the decision rendered; (b) the decision
is not supported by the evidence on record; or (c) errors of law or
irregularities have been committed which are prejudicial to the
interest of the respondent: Provided, That only one petition for
reconsideration shall be entertained.
XXX XXX XXX
664
Chapter 7 – PROHIBITIONS
SEC. 54. Limitation on Appointment. – (1) No elective official

shall be eligible for appointment or designation in any capacity to
any public office or position during his tenure.
(2) No candidate who has lost in any election shall, within

one year after election, be appointed to any office in the Government
or any government-owned or controlled corporations or in any of its
subsidiaries.
(3) Unless otherwise allowed by law or by the primary

functions of his position, no appointive official shall hold any
other office or employment in the Government or any subdivision,
agency or instrumentality thereof, including government-owned or
controlled corporations or their subsidiaries.
SEC. 55. Political Activity. – No officer or employee in the

Civil Service including members of the Armed Forces, shall engage
directly or indirectly in any partisan political activity or take part
in any election except to vote nor shall he use his official authority
or influence to coerce the political activity of any other person or
body. Nothing herein provided shall be understood to prevent any
problems or issues, or from mentioning the names of candidates
for public office whom he supports: Provided, That public officers
and employees holding political offices may take part in political
and electoral activities but it shall be unlawful for them to solicit
contributions from their subordinates or subject them to any of the
acts involving subordinates prohibited in the Election Code.
SEC. 56. Additional or Double Compensation. – No elective

or appointive public officer or employee shall receive additional or
double compensation unless specifically authorized by law nor accept
without the consent of the President, any present, emolument, office,
or title of any kind from any foreign state.
Pensions and gratuities shall not be considered as additional,

double, or indirect compensation.
665
SEC. 57. Limitations on Employment of Laborers. – Laborers,

whether skilled, semi-skilled or unskilled, shall not be assigned to
perform clerical duties.
SEC. 58. Prohibition on Detail or Reassignment. – No detail

or reassignment whatever shall be made within three (3) months
before any election.
SEC. 59. Nepotism. – (1) All appointments in the national,

provincial, city and municipal government or in any branch or
instrumentality thereof, including government-owned or controlled
corporations, made in favor of a relative of the appointing or
recommending authority, or of the chief of the bureau or office, or of
the persons exercising immediate supervision over him, are hereby
prohibited.
As used in this Section, the word “relative” and members

either of consanguinity or of affinity.
(2) The following are exempted from the operation of the

rules on nepotism: (a) persons employed in a confidential capacity,
(b) teachers, (c) physicians, and (d) members of the Armed Forces of
full report of such appointment shall be made to the Commission.
The restriction mentioned in subsection (1) shall not be

her appointment to any position in an office or bureau, contracts,
be allowed.
(3) In order to give immediate effect to these provisions, cases

of previous appointments which are in contravention hereof shall be
salary increases shall be allowed in favor of the relative or relatives
666
XXX XXX XXX
Subtitle B – THE COMMISSION ON AUDIT

Chapter 1 – GENERAL PROVISIONS
SEC. 1. Declaration of Policy. – All resources of the

government shall be managed, expended or utilized in accordance
with law and regulations and safeguarded against loss or wastage
through illegal or improper disposition to ensure efficiency, economy
and effectiveness in the operations of government. The responsibility
to take care that such policy is faithfully adhered to rests directly
with the chief or head of the government agency concerned.
XXX XXX XXX
Chapter 4 – JURISDICTION, POWERS AND

FUNCTIONS OF THE COMMISSION
SEC. 10. Statement of Objectives. – In keeping with the

constitutional mandate, the Commission adheres to the following
objectives:
(1) Determine whether or not the fiscal responsibility that

rests directly with the head of the government agency has been
properly and effectively discharged;
(2) Develop and implement a comprehensive audit program

that shall encompass an examination of financial transactions,
accounts and reports, including evaluation of compliance with
applicable laws and regulations;
(3) Institute control measures through the promulgation

of auditing and accounting rules and regulations governing the
receipts disbursements, and uses of funds and property, consistent
with the total economic development efforts of the Government;
(4) Promulgate auditing and accounting rules and regulations

so as to facilitate the keeping, and enhance the information value of
the accounts of the Government;
667
(5) Institute measures designed to preserve and ensure the

independence of its representatives and
(6) Endeavor to bring its operations closer to the people by

the delegation of authority through decentralization, consistent
with the provisions of the Constitution and the laws.
SEC. 11. General Jurisdiction. – (1) The Commission on

Audit shall have the power, authority, and duty to examine, audit,
and settle all accounts pertaining to the revenue and receipts
of, and expenditures or uses of funds and property, owned or
held in trust by, or pertaining to, the Government, or any of its
subdivisions, agencies, or instrumentalities, including government-
owned or controlled corporations with original charters, and on a
post-audit basis: (a) constitutional bodies, commissions and offices
that have been granted fiscal autonomy under this Constitution; (b)
autonomous state colleges and universities, (c) other government-
owned or controlled corporations and their subsidiaries; and (d)
such non-governmental entities receiving subsidy or equity, directly
or indirectly from or through the Government, which are required
by law or the granting institution to submit to such audit as a
condition of subsidy or equity. However, where the internal control
system of the audited agencies is inadequate, the Commission may
adopt such measures, including temporary or special pre-audit, as
are necessary and appropriate to correct the deficiencies. It shall
keep the general accounts of the Government and, for such period as
may be provided by law, preserve the vouchers and other supporting
papers pertaining thereto.
(2) The Commission shall have exclusive authority, subject

to the limitations in this Article, to define the scope of its audit
and examination, establish the techniques and methods required
therefor, and promulgate accounting and auditing rules and
regulations, including those for the prevention and disallowance of
irregular, unnecessary, excessive, extravagant, or unconscionable
expenditures, or uses of government funds and properties.
XXX XXX XXX
668
Chapter 9 – ACCOUNTABILITY AND RESPONSIBILITY

FOR GOVERNMENT FUNDS AND PROPERTY
SEC. 50. Accountable Officers; Board Requirements. – (1)

Every officer of any government agency whose duties permit or
require the possession or custody of government funds shall be
accountable therefor and for safekeeping thereof in conformity with
law; and
(2) Every accountable officer shall be properly bonded in

accordance with law.
SEC. 51. Primary and Secondary Responsibility. – (1) The

head of any agency of the Government is immediately and primarily
responsible for all government funds and property pertaining to his
agency;
(2) Persons entrusted with the possession or custody of the

funds or property under the agency head shall be immediately
responsible to him, without prejudice to the liability of either party
to the Government.
SEC. 52. General Liability for Unlawful Expenditures. –

Expenditures of government funds or uses of government property
in violation of law or regulations shall be a personal liability of the
official or employee found to be directly responsible therefor.
SEC. 53. Prohibition Against Pecuniary Interest. – No

accountable or responsible officer shall be pecuniarily interested,
directly or indirectly, in any contract or transaction of the agency in
which he is such an officer.
XXX XXX XXX
Subtitle C – COMMISSION ON ELECTIONS

Chapter 1 – GENERAL PROVISIONS
SEC. 1. Declaration of Policy. – The State shall at all times

ensure free, orderly, honest, peaceful and credible elections under
669
a free and open party system which shall be allowed to evolve

according to the free choice of the people subject to the provisions of
Article IX-C of the 1987 Constitution of the Philippines.
SEC. 2. Powers and Functions. – In addition to the powers

and functions conferred upon it by the Constitution, the Commission
shall have exclusive charge of the enforcement and administration
of all laws relative to the conduct of elections for the purpose of
insuring free, orderly, honest, peaceful and credible elections, and
shall:
(1) Promulgate rules and regulations implementing the

provisions of the Omnibus Elections Code or other laws which the
Commission is required to enforce and administer;
(2) Fix other reasonable periods for certain pre-election

requirements in order that voters shall not be deprived of their
rights of suffrage and certain groups of rights granted them in the
Omnibus Election Code;
Unless indicated in the Omnibus Election Code, the

Commission is hereby authorized to fix the appropriate period for
the various prohibited acts enumerated therein, consistent with
the requirements of free, orderly, honest, peaceful and credible
elections.
(3) Exercise direct and immediate supervision and control

over national and local officials or employees, including members of
any national or local law enforcement agency and instrumentality
of the government required by law to perform duties relative to the
conduct of elections, plebiscite, referendum, recall and initiative. In
addition, it may authorize CMT cadets, eighteen years of age and
above to act as its deputies for the purpose of enforcing its orders;
The Commission may relieve any officer or employee referred

to in the preceding paragraph from the performance of his duties
relating to electoral processes who violates the election law or fails
to comply with its instructions, orders, decisions or rulings, and
670
appoint his substitute. Upon recommendation of the Commission,

the corresponding proper authority shall suspend or remove from
office any or all of such officers or employees who may, after due
process, be found guilty of such violation or failure.
(4) During the period of the campaign and ending thirty

days thereafter, when in any area of the country there are persons
committing acts of terrorism to influence people to vote for or
against any candidate or political party, the Commission shall
have the power to authorize any member or members of the Armed
Forces of the Philippines, the National Bureau of Investigation, the
Integrated National Police or any similar agency or instrumentality
of the government, except civilian home defense forces, to act as
deputies for the purpose of insuring the holding of free, orderly,
honest, peaceful and credible elections;
XXX XXX XXX
Title II – OTHER BODIES

Subtitle B – OFFICE OF THE OMBUDSMAN
XXX XXX XXX
SEC. 2. Powers and Functions. – The Office of the

Ombudsman shall:

any act or omission of any public official, employee, office or agency,
when such act or omission appears to be illegal, unjust, improper, or
inefficient;
(2) Direct, upon complaint or at its own instance, any public

official or employee of the Government, or any subdivision, agency
or instrumentality thereof, as well as of any government-owned or
controlled corporation with original charter, to perform and expedite
any act or duty required by law, or to stop, prevent, and correct any
abuse or impropriety in the performance of duties;
671
(3) Direct the officer concerned to take appropriate action

against a public official or employee at fault, and recommend his
removal, suspension, demotion, fine, censure, or prosecution, and
ensure compliance therewith;

subject to such limitations as may be provided by law, to furnish
it with copies of documents relating to contracts or transactions
entered into by his office involving the disbursement or use of public
funds or properties, and report any irregularity to the Commission
on Audit for appropriate action;
(5) Request any government agency for assistance and

examine, if necessary, pertinent records and documents;

circumstances so warrant and with due prudence;
(7) Determine the causes of inefficiency; red tape,

high standards of ethics and efficiency;
(8) Promulgate its rules of procedure and exercise such other

powers or perform such functions or duties as may be provided by
law.
SEC. 3. Action and Complaints. – The Ombudsman and

his Deputies, as protectors of the people, shall act promptly on
complaints filed in any form or manner against public officials
or employees of the Government, or any subdivision, agency or
instrumentality thereof, including government-owned or controlled
corporations, and shall, in appropriate cases, notify the complaints
of the action taken and the result thereof.
SEC. 4. Fiscal Autonomy. – The Office of the Ombudsman

shall enjoy fiscal autonomy. Its approved annual appropriations
shall be automatically and regularly released.
672
XXX XXX XXX
BOOK VI
NATIONAL GOVERNMENT BUDGETING
Chapter 6 – BUDGET ACCOUNTABILITY
SEC. 51. Evaluation of Agency Performance. – The President,

through the Secretary shall evaluate on a continuing basis the
quantitative and qualitative measures of agency performance as
reflected in the units of work measurement and other indicators of
agency performance, including the standard and actual costs per
unit of work.
SEC. 52. Budget Monitoring and Information System. – The

Secretary of Budget shall determine accounting and other items
of information, financial or otherwise, needed to monitor budget
performance and to assess effectiveness of agencies’ operations
and shall prescribe the forms, schedule of submission, and other
components of reporting systems, including the maintenance
of subsidiary and other recording which will enable agencies to
accomplish and submit said information requirements: provided, that
the Commission on Audit shall, in coordination with the Secretary
of Budget, issue rules and regulations that may be applicable when
the reporting requirements affect accounting functions of agencies:
provided, further, that the applicable rules and regulations shall
be issued by the Commission on Audit within a period of thirty (30)
days after the Department of Budget and Management prescribes
the reporting requirements.
SEC. 53. Monitoring if Expenditures. – Expenditures of

national government agencies shall be recorded so as to identify
expenditures as classified into such categories as may be determined
by the Department of Budget and Management, including but not
limited to the following: (1) agency incurring the obligation, (2)
program, project and activity, (3) object of expenditure, including
personal services, operating and maintenance expenditures,
equipment, and capital outlays, (4) region or locality of use,
(5) economic or functional classification of the expenditure, (6)
673
obligational authority and cash transactions arising from fund

releases, and such other classifications as may be necessary for the
budget process. The Secretary of Budget shall determine the data
and information requirements thus needed and the Commission
on Audit shall formulate the accounting rules and regulations,
including changes in the Chart of Accounts and the general or
subsidiary accounting records, as may be necessary to generate the
desired data and information. The Chief Accountants of agencies
and where necessary accountants of regional offices shall submit
the data needed by the Department of Budget and Management
in accordance with such rules and regulations as it may deem
formulate.
SEC. 54. Standard Costs. – The Department of Budget and

Management shall develop standard costs for duly approve units of
work measurement for each agency’s budgetary projects or activities.
These standard costs shall be compared with actual unit costs and
utilized in the evaluation of agency budgetary performance.
SEC. 55. Reviewing of Budgetary Programs. – The Secretary

of Budget shall conduct a continuing review of the budgetary
program and project structure of each department, office or agency,
the result of which shall be the basis for modifying or amending
such structure for incorporation in the President’s budget proposals
to the Congress.
XXX XXX XXX
SEC. 27. Repealing Clause. – All laws, decrees, orders, rules

and regulations, or portions thereof, inconsistent with this Code are
SEC. 28. Separability Clause. – In the event that any of the

provisions of this Code is declared unconstitutional, the validity of
the other provisions shall not be affected by such declaration.
SEC., 29. Effectivity. – This Code shall take effect one year
after its publication in the Official Gazette.
674
of Our Lord nineteen hundred and eighty-seven.

President
By the President:

Executive Secretary
675

OFFICE IN THE OFFICE OF THE PRESIDENT, DEFINING
ITS POWERS AND FUNCTIONS, AND FOR OTHER
PURPOSES
WHEREAS, more than a social responsibility of the

government, public service is a moral commitment to the people
that must be relentlessly pursued;
WHEREAS, it has become a moral as well as social

imperative to take immediate measures to insure that the public is
served effectively, efficiently and expeditiously;
WHEREAS, the Office of the President can best serve as

the command center for the measures that will address request
for assistance as well as complaints and grievances by the general
public;

hereby under:
SECTION. 1. A Presidential Complaints and Action Office

in the Office of the President, hereinafter referred to as the Action
Office, is hereby created.
Sec. 2. The Action Office shall perform the following powers

and functions:
1. Provide callers, visitors, and other persons who come to

the Office of the President to transact business with the necessary
information on the status of their papers or requests and the division
or unit responsible therefor;
2. Attend to and interview such callers and visitors in order

to expedite action on their papers or requests;
676
3. Direct and guide, if necessary, callers and visitors to the

particular official or employee acting on their papers;
4. Serve as the liaison unit of the Office of the President

with various agencies and departments of the government on all
requests for assistance as well as complaints and grievances by the
general public;
5. Initiate fact-finding efforts in all activities involving

or affecting immoral practices, graft and corruption, smuggling,
lawlessness, subversion, and all other activities which are prejudicial
to the government and the public interest, and to submit proper
recommendation to the President of the Philippines or the Executive
Secretary;
6. Entertain complaints of graft and corruption and violation

of Republic Acts No. 1379 and 3019, as amended, and commence
fact-finding investigation thereon prior to referral to the appropriate
bodies for possible prosecution;
7. To receive and evaluate, and to conduct fact-finding

investigations of, sworn complaints against the acts, conduct
or behavior of any public official or employee and to file and/or
forward the proper administrative and/or criminal charges with the
appropriate agency;
8. To coordinate with other offices in order to carry out its

objectives and functions, and institute a follow-up and feedback
mechanism to ensure that the referrals of the Action Office are
given attention and expeditiously acted upon;
9. To coordinate the organization of public assistance units

in the various government offices, patterned after the operational
structure of the Action Office, which shall serve as linkages of a
network to be established by the said Office;
10. To conduct seminars for designated action officers of the

various departments/offices/agencies of the government on matters
677
related to current policies and procedures in rendering assistance to

the public and for improving systems and procedures to hasten the
delivery of the required services to the people;
11. To make available to the public counselling services

pertaining to their request or complaints; and
12. To perform other functions and responsibilities as the

President of Executive Secretary may direct.
Sec. 3. The Action Office shall adopt a policy of arbitration,

conciliation and mediation leading to amicable settlements of
adversarial complaints, among private persons.
Sec. 4. To accomplish the objectives of the Action Office

under Section 2 hereof, such Presidential Action Teams as may
be necessary to address specific key areas of government shall be
organized to insure effective and speedy action and/or service to the
public. The Malacañang Public Assistance Center is hereby renamed
Public Assistance Office and placed under the direct control and
supervision of the Action Office.
Sec. 5. All heads of Departments/Offices/Agencies of the

Executive Department shall organize public assistance and action
units in their respective offices and designate an Action Officer who
shall perform liaison work between his/her officer and the Action
Office. The names of those designated or assigned to the assistance
units or action committees shall be submitted to the Office of the
Executive Secretary within fifteen (15) days after the approval of
this Executive Order.
Sec. 6. The present personnel, supplies, equipment

appropriation, and other resources of the Malacañang Public
Assistance Center are hereby transferred to the Action Office.
Funds necessary for additional personnel, supplies and equipment
shall be charged against existing appropriations of the Office of the
President.
678
Sec. 7. The Executive Secretary shall exercise supervision

and control over the Action Office and its teams.
Sec. 8. This Executive Order shall take effect immediately.
Done in the City of Manila, this 3rd day of January, in the

year of Our Lord nineteen hundred and ninety-one.

BY THE PRESIDENT:
(Sgd.) OSCAR M. ORBOS

Executive Secretary
679
RENAMING THE PRESIDENTIAL COMPLAINTS AND ACTION

OFFICE AS PRESIDENTIAL ACTION CENTER
Pursuant to the powers vested in me by law, I, CORAZON C.

AQUINO, President of the Philippines, do hereby order:
SECTION 1. The Presidential Complaints and Action Office

is hereby renamed as Presidential Action Center, hereinafter
referred to as the Action Center.
DONE in the City of Manila, this 5th day of February, in the

year of Our Lord, nineteen hundred and ninety-one.

BY THE PRESIDENT:
(Sgd.) OSCAR M. ORBOS

Executive Secretary
680
PRESCRIBING PROCEDURES AND SANCTIONS TO ENSURE

SPEEDY DISPOSITION OF ADMINISTRATIVE CASES
WHEREAS, the Constitution guarantees the speedy

disposition of cases, including those brought before administrative
and quasi-judicial bodies;
WHEREAS, Book VII of the Administrative Code of 1987

(Executive Order No. 292) prescribes the Administrative Procedure
to be observed by all government agencies, including departments,
bureaus, boards, offices, commissions, and similar bodies;
WHEREAS, Section 14, Chapter 3, of said Administrative

Procedure mandates that all government agencies “shall decide
each case within thirty (30) days following its submission” for
resolution;
WHEREAS, the same Administrative Procedure was

prescribed in the interest of speedy and inexpensive disposition of
cases;
WHEREAS, it is necessary to issue regulations to government

agencies to fully implement the said Administrative Procedure;
NOW, THEREFORE, I, FIDEL V. RAMOS, President of the

order all government agencies to strictly observe the following
regulations in the disposition of cases :
1. Period For Deciding Cases or Incidents
1.1 Unless a different period is fixed by special law,

all contested cases or incidents shall be decided
within thirty (30) days from the date of submission
for resolution pursuant to Section 14, Chapter 3,
Book VII of the Administrative Code of 1987.
681
1.2 Where the officer’s action is only recommendatory

to his immediate superior or head of office, he shall
submit his recommendation within twenty (20)
days from date of submission of the case or incident
for resolution. The approving officer shall have ten
(10) days from submission of the recommendation
to decide the case or incident.
1.3 A case or incident is deemed submitted for

resolution upon expiration of the period for filing
the memorandum, position paper or last pleading
required of the parties.
1.4 Every officer charged with the resolution of cases or

incidents shall submit to his immediate superior,
head of office, or officer exercising administrative
supervision over him, within ten (10) days following
the end of every month, a sworn Statement of
Disposition of Cases (Annex “A”) declaring that all
cases or incidents submitted to him for resolution
have been decided within the prescribed period.
1.5 Only one motion for reconsideration shall be

allowed, which shall be decided within fifteen
(15) days from date of submission for resolution.
No other pleading shall be allowed other than the
motion for reconsideration and opposition thereto.
1.6 Cases and incidents pending resolution upon the

effectivity of this Executive Order shall be decided
within thirty (30) days from effectivity of this
Executive Order.
1.7 The salary of any officer who fails to submit the

Statement of Disposition of Cases within the
prescribed period shall be, or cause to be, withheld
by the head of office or immediate supervisor until
the said officer complies with paragraph 1.4 above.
682
This is without prejudice to the imposition of other

appropriate penalties as may be provided by law,
2. Abbreviation of Proceedings. — All administrative

agencies are hereby directed to adopt and include in their
respective Rules of Procedure the following provisions:
2.1 Rules encouraging the parties and their counsels

to enter into amicable settlement, compromise and
arbitration in accordance with Section 10, Chapter
3, Book VII of the Administrative Code of 1987;
2.2 Rules adopting, unless otherwise provided by

special laws and without prejudice to Section 12,
Chapter 3, Book VII of the Administrative Code of
1987, the mandatory use of affidavits in lieu of direct
testimonies and the preferred use of depositions
whenever practicable and convenient;
2.3 Rules requiring the parties, unless otherwise

provided by special laws, to submit in addition to
the memorandum, position paper, or last pleading
required of them, a draft of the decision they seek,
stating clearly and distinctly the facts and the law
upon which it is based. Following the termination of
the hearing or trial, the officer, board or commission
charged with resolving the case may, after
considering and appreciating the applicable laws,
rules and regulations and the evidence submitted,
adopt, in whole or in part, either of the parties’
draft decisions, or reject both. This requirement
shall likewise be applied to motions or applications
for orders other than the final judgment; and
2.4 Rules avoiding postponements of hearings or trials

and other dilatory tactics which the parties or their
counsels might employ.
683
Administrative agencies shall adopt the foregoing rules

not later than forty-five (45) days from the effectivity of
this Executive Order.
3. Applicability. — In accordance with Section 2, Chapter 1,

Book VII of the Administrative Code, these regulations
shall, unless otherwise provided by special laws, apply
to government agencies, including any department,
bureau, board, office, commission, authority or officer of
the National Government authorized by law or executive
order to adjudicate cases.
These regulations shall not apply to the Congress, the

Judiciary, the Constitutional Commission, military
establishments in all matters relating exclusively to
Armed Forces personnel, the Board of Pardons and
Parole, and state universities and colleges.
4. Effectivity. — This Executive Order shall take effect

twenty (20) days following the completion of its
publication in at least two (2) newspapers of general
circulation.
DONE in the City of Manila, Philippines this 7th day of

October in the year of Our Lord, Nineteen Hundred and Ninety-
Two.
(Sgd.) FIDEL V. RAMOS

President
By the President:
(Sgd.) EDELMIRO A. AMANTE

Executive Secretary
684
DIRECTING THE IMPLEMENTATION OF A POLICY OF

ACCESSIBILITY AND TRANSPARENCY IN GOVERNMENT
WHEREAS, in consultations conducted by the National

Unification Commission (NUC), various sectors of Philippine society
have expressed concern over the inaccessibility of Government as a
result of too much red tape in the bureaucracy;
WHEREAS, addressing this concern will increase the

confidence of these sectors in Government’s sincerity and capability
to address their needs, as well as enhance the credibility of the
ongoing consultations being conducted by the NUC with various
sectors of society;
WHEREAS, perceived or actual Government inaccessibility

consists mainly in the difficulty in obtaining access to public
records, information and data, and transacting other business with
Government offices;
WHEREAS, Section 7, Article III of the Constitution

recognizes the sacred right of people to information on matters
of public concern, and to have access to official records and to
documents, and papers pertaining to official acts, transactions or
decisions, subject to such limitations as may be provided by law;
WHEREAS, under Section 28, Article II of the Constitution,

“the State adopts and implements a policy of full public disclosure
of all its transactions involving public interest”;
WHEREAS, Section 4(e) of Republic Act 6713, otherwise

known as the Code of Conduct and Ethical Standards for Public
Officials and Employees, requires public officials and employees to
“provide information on their policies and procedures in clear and
understandable language;” and
685
WHEREAS, existing mechanisms in the bureaucracy do

not guarantee that processes are carried out well, and there is a
need to provide for a manner by which the relevant provisions of
the Constitution and the law may actually be given effect by way of
a simplified procedure in obtaining public records, information and
data, and in transacting other business with Government.

Republic of the Philippines, by virtue of the powers vested in me by
the Constitution and the laws, do hereby order as follows:
SECTION 1. All heads of the executive departments, bureaus,

instrumentalities, offices, and agencies of Government, as well as
government-owned and controlled corporations, shall implement a
policy and accessibility and transparency in accordance with the
guidelines herein provided.
SEC. 2. All heads of executive departments, bureaus,

instrumentalities, offices, and agencies of Government, as well as
government-owned and controlled corporations, are required, one
(1) month from the effectivity of this Executive Order, to submit to
the Office of the President the guidelines governing procedures for
obtaining access by the public to official records, and to documents,
and papers pertaining to official acts, transactions or decisions,
as well as to Government research data used as a basis for policy
development in their respective offices, subject to such limitations
as may be provided by law or by rules and regulations promulgated
pursuant thereto, such as, among others, those pertaining to
national security and the defense of the State.
SEC. 3. All heads of offices referred to in the immediately

preceding section are directed to post in conspicuous places within
the premises of their respective offices the procedures for all public
transactions or official business, including the procedure by which
an aggrieved party may seek administrative redress for any violation
of the aforementioned procedures, in the form of flow-charts, using
clear and understandable language in Pilipino and the dialect
predominantly spoken in the locality.
686
SEC. 4. Expenses incurred in compliance with this Executive

Order shall be taken from the Contingent Funds of the respective
offices.
DONE in the City of Manila, this 18th day of May in the

year of Our Lord, Nineteen Hundred and Ninety-Three.

By the President:
(Sgd.) ANTONIO T. CARPIO

Chief Presidential Legal Counsel
687
CREATING A PRESIDENTIAL COMMISSION TO INVESTIGATE

ADMINISTRATIVE COMPLAINTS INVOLVING GRAFT
AND CORRUPTION
WHEREAS, the eradication of graft and corruption has

always been a major goal of the government;
WHEREAS, despite the existence of laws against graft

and corruption, and the agencies legally and/or constitutionally
mandated enforce these laws, corruption remains prevalent and
poses a very serious problem to the country;
WHEREAS, minimizing graft and corruption is imperative

if Philippines 2000 is to be realized;
WHEREAS, creating a Presidential Commission Against

Graft and Corruption specifically tasked to (a) investigate presidential
appointees charged with graft and corruption; (b) coordinate efforts
toward the eradication of opportunities favorable to the commission
of graft and corruption, and the expeditious prosecution and
resolution of pending graft and corruption cases against officials in
the executive department; and (c) monitor the implementation of
the “Moral Recovery Program” under Proclamation No. 62, dated
30 September 1992, with emphasis on the family, school, church
and media as instruments for moral regeneration, will effectively
demonstrate the political will of this administration to curb graft
and corruption in this country;
WHEREAS, the President, under both the Constitution and

the Administrative Code of 1987, has control of all the executive
departments, bureaus and offices, and is mandated to ensure that
the laws are faithfully executed; and
WHEREAS, Presidential appointees are subject to the

disciplinary authority of the President.
688

SECTION 1. Organization - There is hereby constituted a

Presidential Commission Against Graft and Corruption, hereinafter
called the “Commission”, under the Office of the President.
SEC. 2. Composition - The Commission shall be composed of

a Chairman and two (2) Members to be appointed or designated by
the President.
SEC. 3. Jurisdiction - The Commission shall have jurisdiction

over all administrative complaints involving graft and corruption
filed in any form or manner against presidential appointees,
including those in government-owned or controlled corporations.
SEC. 4. Powers, Functions, and Duties - The Commission

shall have the following powers, functions and duties:
(a) Investigation - The Commission shall have the power

to investigate administrative complaints against presidential
appointees in the executive department of the government, including
those in government-owned or controlled corporations, charged
with graft and corruption. In the exercise thereof, the Commission
is (1) authorized to summon witnesses, administer oaths, or take
testimony or evidence relevant to the investigation by subpoena ad
testificandum and subpoena duces tecum, and do such other acts
necessary and incidental to the discharge of its function and duty to
investigate the said administrative complaints; and (2) empowered
to call upon and secure the assistance of any department, bureau,
office, agency, or instrumentality of the government, including
The Commissions shall confine itself to cases of graft and
corruption involving one or a combination of the following criteria:
1. Presidential appointees with the rank equivalent to or

higher than an Assistant Regional Director;
689
2. The amount involved is at least Ten Million Pesos

(P10,000,000.00);
3. Those which threaten grievous harm or injury to the

national interest; and
4. Those which may be assigned to it by the President.
The Commission may refer to the Office of the Ombudsman,

when warranted and necessary, any case calling for the investigation
and/or prosecution of the party or parties concerned for violation of
anti-graft and corruption laws.
(b) Coordination - The Commission shall coordinate with

different government agencies for the purpose of eradicating
opportunities and the climate favorable to the commission of graft
and corruption.
The Commission shall also perform its coordinate functions

for the purpose of expediting resolutions of pending cases or
complaints involving graft and corruption filed against public
officials, and causing the expeditious prosecution of criminal and
other cases involving the offering of inducements, rewards and
other benefits by parties outside of the government.
(c) Monitoring - It shall be the duty of the Commission to

monitor, along with the KABISIG People’s Movement national
Operations Center, the implementation of the “Moral Recovery
Program” under Proclamation No. 62, dated 30 September 1992, with
emphasis on the family, school, church, and media as instruments
of moral regeneration.
The Commission shall assist the Council of Advisers on

Moral Recovery and recommend possible courses of action which
the President may undertake.
SEC. 5. Technical and Administrative Staff - The Commission

shall organize its Technical and Administrative Staff to be headed
690
by an Executive Director who shall be designated by the President

upon the recommendation of the Commission. The Technical Staff
shall be composed of personnel designated by the Chairman and
those detailed to the Commission by the different agencies called to
assist the Commission.
SEC. 6. Operating Guidelines - The Commission shall adopt

such operating guidelines as may be necessary to implement this
Executive Order.
SEC. 7. Funding - The Commission shall be provided with

an initial budget in the amount of Ten Million Pesos (P10,000,00) to
be drawn from the President’s contingent fund. Appropriations for
the succeeding years shall be incorporated in the budget proposal
for the Office of the President.
SEC. 8. Effectivity. - This Executive Order shall take effect

immediately.

year of Our Lord, Nineteen Hundred and Ninety-Four.

President
By the President;
(Sgd.) TEOFISTO T. GUINGONA, JR.

Executive Secretary
691
EXECUTIVE ORDER NO. 151-A
AMENDING EXECUTIVE ORDER NO. 151 DATED 11 JANUARY

1994
I, FIDEL V. RAMOS, President of the Republic of the

order the amendment of Executive Order No. 151 dated 11 January
1994, titled “Creating A Presidential Commission To Investigate
Administrative Complaints Involving Graft And Corruption,” as
follows:
SECTION 1. Section 2 is hereby amended to read as

follows:
“SECTION 2. Composition – The Commission shall

be composed of a Chairman and two (2) Commissioners to
be appointed or designated by the President. One of the two
Commissioners shall represent the private sector and may
serve on a part-time basis.
The Chairman shall have the rank, emoluments and

privileges of a Presidential Assistant II. The Commissioners,
on the other hand, shall have the rank, emoluments and
privileges of a Presidential Assistant I.
The Chairman shall preside over the Commission

and act as its chief executive officer who shall direct and
supervise the implementation and execution of policies,
standards, rules and regulations of the Commission, and be
responsible for its general administration.”
SEC. 2. Section 4 paragraph (a) is hereby amended to read

as follows:
692
“SECTION 4. Powers, Functions, and Duties – The

Commission shall have the following powers, functions
and duties:
(a) Investigation – The Commission shall have

the power to investigate on its own or on complaint
administrative complaints against presidential appointees
in the executive department of the government, including
those in government-owned or controlled corporations,
charged with graft and corruption. In the exercise thereof,
the Commission is (1) authorized to summon witnesses,
administer oaths, or take testimony or evidence relevant
to the investigation by subpoena ad testificandum and
subpoena duces tecum, and do such other acts necessary
and incidental to the discharge of its function and duty
to investigate the said administrative complaints; and (2)
empowered to call upon and secure the assistance of any
department, bureau, office, agency, or instrumentality
of the government, including government-owned or
controlled corporations.
The Commission shall confine itself to cases of

graft and corruption involving one or a combination of the
following criteria:
1. Presidential appointees with the rank

equivalent to or higher than an Assistant
Regional director;
2. The amount involved is at least Ten Million Pesos

(P10,000,000.00);
3. Those which threaten grievous harm or injury to

the national interest; and
4. Those which may be assigned to it by the

President.
693
The Commission may refer to the Office of the

Ombudsman, when warranted and necessary, any case
calling for the investigation and/or prosecution of the
party or parties concerned for violation of anti-graft and
corruption laws.
Administrative investigation of complaints against

presidential appointees currently undertaken by various
presidential committees or government agencies, including
government-owned or controlled corporations shall
continue notwithstanding the creation and organization
of the Commission. This, however, shall be without
prejudice to the Commission, in its discretion, taking
over the investigation if the matter under investigation is
within its jurisdiction.
All complaints against presidential appointees

with the rank equivalent to or higher than an Assistant
Regional Director shall, henceforth, be endorsed to the
Commission for immediate and appropriate action.”
SEC. 3. Section 6 is amended by incorporating another

paragraph which shall read as follows:
“SECTION 6. Technical and Administrative Staff –

***
The Chairman may engage the services of qualified

consultants subject to existing rules and regulations of
the Civil Service Commission and the National Economic
and Development Authority.”
SEC. 4. Effectivity – This Executive Order shall take effect

immediately.
694
DONE in the City of Manila, this 21st day of January in the

year of Our Lord, nineteen hundred and ninety-five.

By the President:

Executive Secretary
695
INSTITUTIONALIZATION OF THE DOCTRINE OF “COMMAND

RESPONSIBILITY” IN ALL GOVERNMENT OFFICES,
PARTICULARLY AT ALL LEVELS OF COMMAND IN
THE PHILIPPINE NATIONAL POLICE AND OTHER LAW
ENFORCEMENT AGENCIES
WHEREAS, strict and effective management and control of

an organization by the supervisor is critical in ensuring responsive
delivery of services by the government, especially in police
matters;
WHEREAS, a supervisor/commander is duty-bound and, as

such, is expected to closely monitor, supervise, direct, coordinate,
and control the overall activities of his subordinates within his area
of jurisdiction, and can be held administratively accountable for
neglect of duty in taking appropriate action to discipline his men;
WHEREAS, in order to ensure a more effective, sustained,

and successful campaign against erring government personnel,
it is imperative that the doctrine of “command responsibility” be
institutionalized and strictly applied in all government offices and at
all levels of command in the PNP and other law enforcement agencies.

SECTION 1. Neglect of Duty Under the Doctrine of

“Command Responsibility”. Any government official or supervisor,
or officer of the Philippine National Police or that of any other law
enforcement agency shall be held accountable for “Neglect of Duty”
under the doctrine of “command responsibility” if he has knowledge
that a crime or offense shall be committed, is being committed, or
696
has been committed by his subordinates, or by others within his

area of responsibility and, despite such knowledge, he did not take
preventive or corrective action either before, during, or immediately
after its commission.
SEC. 2. Presumption of Knowledge. A government official or

supervisor, or PNP commander, is presumed to have knowledge of
the commission of irregularities or criminal offenses in any of the
following circumstances:
a. When the irregularities or illegal acts are widespread

within his area of jurisdiction;
b. When the irregularities or illegal acts have been

repeatedly or regularly committed within his area of
responsibility; or
c. When members of his immediate staff or office personnel

are involved.
SEC. 3. Implementing Rules and Regulations. The National

Police Commission (NAPOLCOM) in coordination with the
Department of Interior and Local Government (DILG) and the Civil
Service Commission (CSC) shall promulgate the necessary rules
and regulations of this Executive Order within thirty (30) days after
the issuance thereof.
SEC. 4. Administrative Liability. Any violation of this

Executive Order by any government official, supervisor, officer
of the PNP and that of any law enforcement agency shall be held
administratively accountable for violation of existing laws, rules
and regulations.

immediately.
697
DONE in the City of Manila this 17th day of February, in

the year of our Lord, nineteen hundred and ninety-five.

By the President:

Executive Secretary
698
CREATING A SPECIAL TASK FORCE TO REVIEW,

INVESTIGATE, AND GATHER EVIDENCE NECESSARY
TO SUCCESSFULLY PROSECUTE IRREGULARITIES
COMMITTED AT THE BUREAU OF INTERNAL REVENUE,
BUREAU OF CUSTOMS AND OTHER GOVERNMENT
OFFICES OR AGENCIES UNDER OR ATTACHED TO THE
DEPARTMENT OF FINANCE.
WHEREAS, there are prevalent reports and public perception

of graft and corruption principally in the Bureau of Internal Revenue
and Bureau of Customs;
WHEREAS, there are on-going investigations in the One-

Stop-Shop Inter-Agency Tax Credit and Duty Drawback Center
which require the full support and assistance of the various agencies
of the government;
WHEREAS, graft and corruption deprive the public coffers

of much needed revenue, demoralize the government work force and
undermine public confidence in the government;
WHEREAS, this administration is committed to fight graft

and corruption;
WHEREAS, there is an urgent need to form an inter-agency

task force with the sole purpose of addressing graft and corruption
committed in agencies under or attached to the Department of
Finance and the prosecution of erring government personnel and
their accomplices.
NOW, THEREFORE, I, JOSEPH EJERCITO ESTRADA,

law, do hereby order the following:
SECTION 1. Creation. There is hereby created a Special

Task Force Against Irregularities Committed in Agencies Attached
699
to or under the Department of Finance under the immediate control

of and reporting directly to the President.
SEC. 2. Composition. The Task Force shall be composed of

the Executive Secretary, Undersecretary of Finance Solomon S. Cua,
Undersecretary of Justice Antonio M. Llorente, Executive Director
Alberto Salanga of the One-Stop-Shop Tax Credit, Department of
Finance and Gen. Panfilo Lacson, Chief of the Presidential Anti-
Organized Crime Task Force.
SEC. 3. Assistance from Other Government Agencies. All

government offices, agencies and instrumentalities, particularly the
Bureau of Internal Revenue, the Bureau of Customs, the National
Bureau of Investigation, the Bureau of Immigration and Deportation,
the Philippine National Police, the Economic Intelligence and
Investigation Bureau, the Securities and Exchange Commission,
and the Garment and Textile Export Board are hereby directed to
assist the Task Force and shall provide the necessary assistance in
the form of vehicles, equipment, workspace or personnel on detail or
secondment when so requested by the Task Force. All government
offices shall likewise provide all information required by the Task
Force as if such information was requested by the President
himself.
SEC. 4. Powers, Duties and Functions. The Task Force shall

have the following powers, duties and functions:
a) To investigate and gather evidence against individuals,

corporations and other entities suspected of having
committed irregularities at the Bureau of Internal
Revenue, the Bureau of Customs, the Inter-Agency Tax
Credit and Duty Drawback Center and other agencies
under or attached to the Department of Finance;
b) To gather and collate the required quantum of evidence

and file the appropriate criminal, civil or administrative
complaint before the appropriate court, administrative
body, or agency;
700
c) To recommend the settlement of cases for approval of the

President, subject to appropriate rules on the settlement
of claims by the government;
d) To assist the prosecuting agency towards the successful

prosecution of cases;
e) To hire such personnel on a project or contractual basis

as may be necessary to achieve its purposes;
f) To receive donations, bequest, and other gratuitous

benefits which will solely used to attain the objectives of
the Task Force;
g) To coordinate with other government agencies, non-

government organizations, international organizations
and other individuals or entities as may be found
necessary by the Task Force;
h) To recommend to the President the formation of such

special investigating or prosecuting groups to be assigned
to specific agencies or cases as may be necessary;
i) To perform any and all acts as may be necessary to

successfully implement this Order, subject to the control
and supervision of the President.
SEC. 5. Personnel. The Task Force shall be assisted by

such personnel as it may select. The Department of Budget and
Management is hereby directed to automatically provide without
reduction all requests for funds necessary for the transfer, detail,
secondment or opening of personnel co-terminus with the project
of the Task Force, including request for the hiring of personnel or
contractual or consultancy basis.
SEC. 6. Term. The Task Force shall exist for a period of

two (2) years from effectivity hereof, after which its functions
701
shall be turned over to the Department of Justice, unless there are

circumstances which warrant the extension of its existence.
SEC. 7. Funding. Subject to the usual audit, the Task Force

shall be provided with One Million Pesos (P1.0M) per month to be
drawn from the One-Stop-Shop Inter-agency Tax Credit and Duty
Drawback Center.
SEC. 8. Penalty for Failure to Assist. Failure by the

Appropriate government agency of personnel to provide assistance to
the Task Force shall be deemed an administrative offense and shall
be dealt with in accordance with applicable law and regulations.
SEC. 9. Administrative Powers. The Office of the President

may adopt such rules and regulations, issue such orders, and
organize or reorganize the personnel of the Task Force to successfully
implement this Order.
SEC. 10. Reportorial Requirements. The Task Force

shall submit a quarterly report of its funds and activities to the
President.
SEC. 11. Effectivity. This Administrative Order shall take

effect immediately.
DONE in the City of Manila, this 7th day of October in the

year of our Lord, nineteen hundred and ninety-nine.
(Sgd.) JOSEPH EJERCITO ESTRADA
By the President:
(Sgd.) RONALDO B. ZAMORA

Executive Secretary
702
CREATING THE NATIONAL ANTI-CORRUPTION COMMISSION

AND ABOLISHING THE PRESIDENTIAL COMMISSION
AGAINST GRAFT AND CORRUPTION CREATED UNDER
EXECUTIVE ORDER 151, S. 1994, AS AMENDED.
WHEREAS, it has always been the avowed policy of the

State, as enshrined in the constitutional principle that a public office
is a public trust, to promote and maintain honesty and integrity
in public service and to repress acts of public officers and private
persons alike which constitute graft and corrupt practices or which
may lead thereto;
WHEREAS, corrupt practices at all levels of the government

are rooted in the past, have branched out and syndicated in the
executive, legislative and judicial branches of the government, and
have become more serious and complicated with the involvement of
several mass media practitioners in the process;
WHEREAS, despite the existence of many laws against graft

and corruption, and the agencies legally and/or constitutionally
mandated to enforce these laws, corruption remains prevalent and at
times criminally aggressive thereby posing a very serious problem to
the country and threat to the moral fabric of the Philippine society;
WHEREAS, the present Administration seriously wants to

put an end to graft and corruption which poses a very dangerous
threat to the moral and political existence of the Philippines as a
nation;
WHEREAS, new and effective administrative mechanisms

designed to eradicate corruption and implement state of policy at
the national level for the prevention and control of corruption are
therefore imperative and needs to be urgently established;

the Constitution, do hereby order the following :
703
SECTION 1. Organization. - There is hereby created a

National Anti-Corruption Commission, hereinafter referred to as
the Commission, to implement and coordinate policy at the national
level for the prevention, control of and ultimately elimination of
graft and corrupt practices at all levels in government by public
officers and private persons alike. Acts or omissions constituting
graft and corrupt practices shall be as defined by Republic Act No.
3019, as amended, or as declared unlawful by other existing laws.
The Presidential Commission Against Graft and Corruption created
and provided for under Executive Order No. 151 dated 11 January
1994, as amended, is hereby abolished
Sec. 2. Composition of the Commission. - The Commission

shall be headed by a full-time Chairman, who shall be assisted by
four (4) full-time Commissioners. They shall be appointed by the
President from a list of nominees, known and recognized for moral
uprightness, probity and independence, proven competence and
recognized expertise in their fields related as much as possible to
the functions of the Commission as cited in this Executive Order. All
five (5) of them shall be drawn from the public and private sectors.
The Chairman shall have the rank, emoluments, and privileges

of a Cabinet Secretary, or its equivalent. The Commissioners, on the
other hand, shall have the rank, emoluments, and privileges of an
Undersecretary or its equivalent.
In no case shall any member of the Commission appoint

representatives to act on his behalf.
Sec. 3. The Secretariat. - The Commission shall be initially

assisted by an interim secretariat placed as its disposal by the
Development Academy of the Philippines (thereinafter “DAP”).
DAP interim secretariat shall serve as such until a regular organic
secretariat shall have been organized by the Commission. The
secretariat, interim and regular, shall also be composed of individuals
of known moral probity and dedication to public service.
704
The Secretariat shall provide technical and administrative

support to the Commission and shall be headed by an Executive
Director.
The Executive Director shall be appointed by the Chairman.

He or she shall inter alia execute and administer the policies and
decisions of the Commission, attend the Commission’s deliberations,
monitor the implementation of the programs thereof, and manage
the day-to-day operations thereof.
In filling the positions for the interim secretariat of the

Commission, the employees of the abolished Presidential Commission
Against Graft and Corruption (PCAGC) may be considered provided
that they are especially qualified and have demonstrated moral
probity and dedication to public service without interruption of
continued government service.
PCAGC employees who will not be reconsidered shall be

entitled to separation and retirement benefits provided under RA
8291, otherwise known as The GSIS Act of 1997, and other existing
retirement rules and laws.
Sec. 4. Functions of the Commission. - The Commission shall

perform the following functions :
(a) Formulate and implement national anti-corruption

framework and program strategies and a corresponding action
agenda of the government in consultation with government agencies,
private sector, and civil society organizations;
(b) Implement and coordinate policies aimed at preventing

and combating corruption at all levels in the government and
preventing conflicts of interest;
(c) Undertake policy analysis and shepherd the passage of

appropriate legislation geared towards the prevention, control, and
elimination of corruption for submission to and consideration by
the President, who shall certify to Congress as urgent appropriate
legislative proposals that are vital to anti-corruption program;
705
(d) Monitor the performance of government agencies in the

implementation of the action agenda, provide policy advise thereto,
and establish a centralized database for these purposes;
(e) Identify and investigate shortcomings and weaknesses

in the organization and management of public administrators
and enterprises that could facilitate the commission of acts and
misconduct covered by the existing laws against graft and corruption
and advise government departments/agencies, offices and local
government units on anti-corruption strategies and procedures for
implementation;
(f) Pre-screen and clear appointees to be confirmed by the

Commission on Appointments upon request of the President.
(g) Conduct sustained information and education drives

aimed at preventing corruption and public misconduct;
(h) Organize specialized training of staff members of the

Commission and representatives of private sector and civil society in
the prevention, investigation, and prosecution of graft and corrupt
practices;
(i) Centralize information regarding acts and misconduct

communicated to it by the policy services and public authorities and
by persons responsible for auditing the accounts or sent to it by
private individuals;
(j) Investigate or hear, motu propio or on complaint filed with

it in any form or manner, charges, reports, or information involving
the possible violation of graft and corrupt practices at all levels in
government by public officers and private persons alike
(k) Endorse to the Office of the Ombudsman or the Department

of Justice for prosecution, any matter that the Commission, after
investigation upon complaint by any person or at its own instance,
shall find to constitute graft and corrupt practices;
706
(l) Forward to judicial authorities any records, documents

or information in its possession that the latter shall request in the
course of hearing and deciding acts that may constitute graft and
corrupt practices;
m) Render a periodic report on the progress of the anti-

corruption program to the President, Congress and the general
public, with the end in view of providing all sectors a balanced and
objective report on graft and corruption;
(n) Absorb the functions and exercise the jurisdiction and

powers of the Presidential Commission Against Graft and Corruption
created and provided for under Executive Order No. 151, dated
January 11, 1994, which for this purpose, is hereby abolished.
Sec. 5. Powers of the Commission. - The Commission shall

have the following powers:
The Commission is hereby granted the powers of an

investigating body under Section 37, Chapter 9, Book I of the
Administrative Code of 1987 including the power to summon
witnesses, administer oaths, take testimony or evidence relevant
to its investigation, and to issue compulsory process to produce
documents, books, records and such other matters in the performance
of its functions.
Any person who, without lawful excuse, fails to appear upon

summons issued under the authority of the preceding paragraph or
who, appearing before the Commission, refuses to take oaths, give
testimony or produce documents for inspection, when thereunto
lawfully required, shall be subject to discipline as in the case of
contempt of court upon application of the Commission before the
proper court, in the manner provided by law.
(b) The Commission may, in coordination with the

Commission on Elections (COMELEC), verify the observance of
the ceiling on electoral expenditure and the accuracy of the election
campaign accounts, assist in the investigation of palpable and
707
massive electoral fraud and monitor the actions of the different

boards of canvassers during elections.
(c) The Commission may examine the execution of public

contracts as to both tendering and results.
(d) The Commission may verify that award of public works

and supply contracts and the assignment of operations by the public
authorities are conducted in a proper and honest matter.
(e) The Commission may undertake a lifestyle check on any

public officer/employee. In this regard, the Commission:
1. May request copies of statement of asset and liabilities

and income tax return of any person holding public office;
2. May require a person holding public office to reveal the

source of his property, wealth, assets and interests, as well as those
of his or her spouse, departments and relatives, in accordance with
law;
3. May require submission, by the person acting as its

depository of the register of declarations of gifts received by person
holding public offices;
4. In case of reasonable suspicion regarding the above, the

Commission may seek to establish the reliability of such declarations
in cooperation with relevant national bodies.
(f) The Commission may seek the cooperation of the private

sector, civil society and other bodies (local and international)
undertake anti-graft and corruption programs.
(g) The Commission shall coordinate with the Inter-

agency Anti-Graft Coordinating Body for the purpose of effectively
implementing this Executive Order.
708
Sec. 6. Offenses covered. - For the purposes of this Executive

Order, the Commission shall have jurisdiction to investigate possible
violations of any of the following:
(a) Republic Act No. 3019, as amended, otherwise known as

the “Anti-Graft and Corrupt Practices Act”;
(b) The provisions of Republic Act No. 1379 on the lawful

acquisition of property by a public officer or employee;
(c) Republic Act No. 6713, otherwise known as the

Employees”;
(d) Section 46 (b) (1) to (6), Book V, Subtitle A, Chapter 6 of

Executive Order No. 292, series of 1987, otherwise known as the
“Administrative Code of 1987”;
(e) Any provision under Title Seven of the Revised Penal

Code on Crimes Committed by Public Officers;
(f) Executive Order No. 226, series of 1995;
(g) Any other relevant law, executive orders, rules or

regulations.
Sec. 7. The Commission shall promulgate or adopt its rules

of procedure for the effective implementation of this Order.
Sec. 8. Total support of other government units. - The

Commission may call upon any government investigative
and prosecutorial agencies, including the National Bureau of
Investigation and the Philippine National Police, to make available
their offices, personnel and facilities to attain the objectives of this
Executive Order. The departments, bureaus, offices, agencies, or
instrumentalities including government-owned and controlled
corporations are hereby directed to extend such assistance and
cooperation including detail and/or deputization of personnel as the
Commission may need in the discharge of its functions.
709
Sec. 9. Referral to the Commission. - All offices, committees,

commissions, bureaus, departments, and government-owned or
controlled corporations in the Executive Department are hereby
directed to refer immediately to the Commission any complaint,
charge, report, or information of corruption against presidential
appointees and non-presidential appointees referred to under
section 4 of this Executive Order. Such referral shall include not
only the complaint, report or information but also certified copies of
all relevant and pertinent records of the case.
Sec. 10. Organizational Units and Staffing. - The Commission

may create organizational units necessary for the performance of
its functions, subject to relevant laws, rules and regulations. Such
units shall be staffed by duly qualified personnel appointed by the
Executive Director upon approval of the Chairman.
The Commission is also authorized to engage the services of

resource persons, professionals and other personnel, known for moral
uprightness, probity and independence including a Commission
Counsel, Deputy Commission Counsel(s) or such other officials as
may be required for the effective performance of its functions and
responsibilities, to fix their duties and compensation, to organize the
structure and staffing pattern of the Commission: and to authorize
the payment of honoraria and/or allowances for deputized detailed
officers and officials.
The Commission shall be exempted from Administrative

Order No. 100, Series of 1999. It may hire, at its discretion,
new personnel whether on a permanent, temporary, substitute,
contractual, or casual status.
Sec. 11. Compensation. - The Commission shall prepare its

salary schedule in consultation with the Department of Budget and
Management.
Sec. 12. Transitory Provisions. - The interim secretariat

referred to under Section 3 of this Executive Order shall establish
the regular secretariat and ensure the orderly transition to the
710
Commission within one (1) year upon approval of this Executive

Order.
All the records, facilities, equipment, property, rights, and

such other things arising from and incidental to the creation of the
Presidential Commission Against Graft and Corruption are hereby
transferred to the Commission.
Sec. 13. Appropriations. - The Commission shall have an

initial budget of forty million pesos (P40,000,000.00) which shall
partly be drawn from the remaining budget of the abolished
Presidential Commission Against Graft and Corruption and from
the Organizational Adjustment Fund. Appropriations for the
succeeding years shall be incorporated in the budget proposal for
the Office of the President.
Sec. 14. Repealing Clause. - All orders, issuances, rules and

regulations or parts thereof inconsistent with this Executive Order
are hereby repealed or modified accordingly.
Sec. 15. Effectivity. - This Executive Order shall take effect

immediately.
Done in the City of Manila, this 18th of July, in the year of

Our Lord, two thousand.
(Sgd) JOSEPH E. ESTRADA

President
BY THE PRESIDENT:
(Sgd) Ronaldo B. Zamora

Executive Secretary
711
PRESCRIBING A CODE OF CONDUCT FOR RELATIVES AND

CLOSE PERSONAL RELATIONS OF THE PRESIDENT,
VICE-PRESIDENT AND MEMBERS OF THE CABINET
Whereas, the President, Vice President and Members of the

Cabinet are duty bound to follow the highest standard of ethics in
public service.
Whereas, the duty of the President, Vice President, and

Members of the Cabinet extends also to those related to them by
consanguinity, affinity, intimacy or close personal relations, who
must conduct themselves in a manner which would not cast doubt
on the integrity and impartiality of the President, Vice President
and Members of the Cabinet.
Whereas, there is a need to remove whatever public perception

that relatives and close personal relations of the President, Vice
President and Members of the Cabinet are or may be taking undue
advantage of such relationship to obtain unwarranted advantage
and benefits from the government.
Whereas, even without deliberately capitalizing, exploiting

or taking advantage of their family or close personal relations
with the President, Vice President and Members of the Cabinet in
engaging in certain transactions, the proximity of relatives and close
personal relations to the President, Vice President and Members of
the Cabinet may create a wrong perception that such relations are
or have been abused by them.
Whereas, there is a need to lay down a Code of Conduct for

relatives and close personal relations of the President, Vice President
and Members of the Cabinet to ensure that existing laws in place
cannot and will not be circumvented and that undue influence will
not be exerted nor undue advantage taken by these people as a result
of their closeness with the President, Vice President and Members
of the Cabinet.
712

vested in me by law, hereby direct and order, as follows:
SECTION 1. Definition of Terms. - As used in this Executive

Order, the term:
(a) “Relative” refers to any and all persons related to the

President, Vice President and Members of the Cabinet within the
fourth civil degree of consanguinity or affinity, and shall include
any offspring of the President, Vice President and Members of the
Cabinet and the parent of such offspring, as well as those related
to the latter within the fourth civil degree of consanguinity or
affinity.
(b) “Close Personal Relation” shall mean any person enjoying

close association or intimacy with the President, Vice President and
Members of the Cabinet, which insures easy access to his person
such as political contributors, personal friends of long standing, and
former schoolmates of the President, Vice President and Members
of the Cabinet.
(c) “Gift” refers to a thing or a right to dispose of gratuitously,

or any act or liberality, in favor of another who accepts it, and shall
include a simulated sale or an ostensibly onerous disposition thereof.
It shall not include an unsolicited gift of nominal or insignificant
value not given in anticipation of, or in exchange for, a favor from
the President, Vice President, Members of the Cabinet or any other
public official or employee.
(d) “Government” includes the national government, the local

governments, the government-owned and government-controlled
corporations, and all other instrumentalities or agencies of the
Republic of the Philippines and their branches.
(e) “Receiving any gift” includes the act of accepting directly

or indirectly, a gift from a person other than a member of his family
or relative as defined in this Act, even on the occasion of a family
713
celebration or national festivity like Christmas, if the value of

the gift is neither nominal nor insignificant, or the gift is given in
anticipation of, or in exchange for, a favor.
(f) “Loan” covers both simple loan and commodatum as well

as guarantees, financing arrangements or accommodations intended
to ensure its approval.
(g) “Person” includes natural and juridical persons unless

(h) “Public Official” includes elective and appointive officials

and employees, permanent or temporary, whether in the career or
non-career service, including military and police personnel, whether
or not they receive compensation, regardless of amount.
SEC. 2. Prohibited Acts and Transactions. - In addition to acts

and omissions of presidential Relatives provided in the Constitution
and existing laws, the following shall constitute prohibited acts and
transactions by a Relative or a Close Personal Relation:
(a) Solicitation and acceptance, directly or indirectly, of

any funds, gift, gratuity, favor, entertainment; loan or anything of
monetary value for any purpose from any person or corporation;
(b) Persuading, inducing or influencing another public official

to perform an act constituting a violation of rules and regulations
duly promulgated by competent authority or an offense in connection
with the official duties of the latter;
(c) Directly or indirectly engaging in transactions with

Government, particularly government financial institutions
(“GFIs”), including securing any loan or accommodation from such
GFIs;
(d) Exerting undue influence, directly or indirectly, on the

outcome public biddings for government contracts;
714
(e) Directly or indirectly having financial or pecuniary interest

in any business, contract or transaction with the Government.
(f) Using the name of the President, Vice President or

Members of the Cabinet, directly or through another person not
related to the President, Vice President, and Members of the
Cabinet, in order to obtain any contract, favor or other benefit from
the government.
SEC. 3. Simple Living. -Relatives and Close Personal

Relations shall lead modest lives appropriate to their positions and
income. They shall not indulge in extravagant and ostentatious
SEC. 4. Prohibition on Government Financial Institutions.

- GFIs are prohibited from increasing its equity or investing its
funds for purposes of conferring a seat as director to a Relative or
Close Personal Relation by means of increasing capital or equity or
through any other means.
SEC. 5. Lawful Exercise of Profession. - Nothing in this

Executive Order shall cover lawful acts of persons considered as
a Relative or Close Personal Relation who have been engaged in
the traditional, established, and lawful exercise of their profession,
business or trade.
SEC. 6. Penalties for violations. - In addition to the criminal

liabilities provided for by existing laws should any act defined herein
fall within the definition of such laws, all agreements, contracts,
and any other transaction entered into with the Government in
violation of any prohibition herein shall be deemed void and of no
effect. Any government official or employee who shall tolerate or
conspire with any Relative or Close Personal Relation in violation
of this Executive Order shall be subject to suspension or removal
from office as may be determined by the President and following an
investigation of such violation.
SEC. 7. Effectivity. - This Order shall take effect

immediately.
715
DONE in the City of Manila, this 9th day of November,

2000.
(Sgd) JOSEPH E. ESTRADA

President
BY THE PRESIDENT:
(Sgd) RONALDO B. ZAMORA

Executive Secretary
716
CREATING THE PRESIDENTIAL ANTI-GRAFT COMMISSION

AND PROVIDING FOR ITS POWERS, DUTIES, AND
FUNCTIONS AND FOR OTHER PURPOSES
WHEREAS, Article VII, Section 17 of the Constitution

provides that the President shall have control of all the executive
department, bureaus, and offices;
WHEREAS, in terms of personnel and funding of the

Executive Department is the largest of the three branches of
government;
WHEREAS, there is a need for a commission under the

Office of the President, to conduct the task of investigating and
hearing administrative cases and complaints against personnel in
the Executive Department;
WHEREAS, by virtue of Executive Order No. 268 dated

July 18, 2000, the Presidential Commission Against Graft and
Corruption was abolished and replaced with the National Anti-
Corruption Commission;
WHEREAS, the National Anti-Corruption Commission was

never activated;
WHEREAS, there is a need to create a new commission to

assist the President in the campaign against graft and corruption,
whose jurisdiction and authority are clearly defined;
NOW, THEREFORE, I, GLORIA MACAPAGAL-ARROYO,

the Constitution and the laws, do hereby order:
SECTION 1. Creation. – The Presidential Anti-Graft

Commission, hereinafter referred to as the “Commission”, is hereby
created under the Office of the President, pursuant to Article VII,
Section 17 of the Constitution.
717
SEC. 2. Composition. – The Commission shall be composed

of a Chairman and two (2) Commissioners to be appointed by the
President. All the members of the Commission shall serve on a full-
time basis and a majority shall be members of the Philippine Bar.
The Chairman shall have the rank, emoluments and privileges of a
Presidential Assistant II. The Commissioners, on the other hand,
shall have the rank emoluments and privileges of a Presidential
Assistant I. The Chairman shall preside over the meetings of the
Commission and shall direct and supervise the implementation and
execution of policies, standards, rules and regulations.
SEC.3. Secretariat. – The Commission shall have a Secretariat

which shall provide technical and administrative support to the
Commission and which shall be headed by an Executive Director.
The Executive Director, under the control and supervision of the
Chairman, shall execute and administer the policies and decisions
of the Commission and manage the day-to-day operations thereof.
The Executive Director shall be appointed by the President upon
the recommendation of the Chairman. The Chairman shall have
the authority to appoint, promote, and discipline the personnel of
the Secretariat.
The Commission, subject to the pertinent laws, rules

and regulations, may create, organize and set in operation such
organizational units necessary for the performance of its powers,
functions, and duties and for the enforcement of this Executive
Order. Such units shall be staffed by duly qualified personnel
appointed by the Chairman and those detailed to the Commission
by other government entities.
The Commission shall be exempt from the prohibition

against hiring of new personnel in Administrative Order No. 100
dated December 1, 1999 with regard to its initial appointments
provided that the organizational structure and staffing pattern of the
Secretariat shall be prepared in coordination with the Department
of Budget and Management and submitted to the President for
approval.
718
SEC. 4. Jurisdiction, Powers and Function.
(a) The Commission, acting as a collective body, shall, on

its own or on complaint, have the power to investigate or hear
administrative cases or complaints involving the possible violation
of any of the following:
(1) Republic Act No. 3019 as amended, otherwise known as

the “Anti-Graft and Corrupt Practices Act;”
(2) Republic Act No. 1379 on the unlawful acquisition of

property by a public officer or employee;
(3) Republic Act No. 6713, otherwise known as the “Code of

Conduct and Ethical Standards for Public Officials and
Employees;”
(4) Presidential Decree No. 46, making it punishable for

public officials and employees to receive gifts on any
occasion, including Christmas;
(5) Any provision under Title Seven, Book Two of the

Revised Penal Code; and
(6) Rules and Regulations duly promulgated by competent

authority to implement any of the foregoing laws or
issuances.
(b) The Commission, acting as a collegial body, shall have the

authority to investigate or hear administrative cases or complaints
against all presidential appointees in the government and any of its
agencies or instrumentalities (including members of the governing
board of any instrumentality, regulatory agency, chartered institution
and directors or officers appointed or nominated by the President to
government-owned or controlled corporations or corporations where
the government has a minority interest or who otherwise represent
the interests of the government), occupying the positions of assistant
regional director, or an equivalent rank, and higher, otherwise
719
classified as Salary Grade “26” and higher, of the Compensation and

Position Classification Act of 1989 (Republic Act No. 6758). In the
same manner, the Commission shall have jurisdiction to investigate
a non-presidential appointee who may have acted in conspiracy or
may have been involved with a presidential appointee or ranking
officer mentioned in this subsection. The Commission shall have no
jurisdiction over members of the Armed Forces of the Philippines
and the Philippine National Police.
(c) Anonymous complaints against a presidential appointee

shall not be given due course unless there appears on its face or
the supporting documents attached to the anonymous complaint
a probable cause to engender a belief that the allegations may be
true.
(d) The Commission shall use every and all reasonable

means to ascertain the facts in each case or complaint speedily and
objectively and without regard to technicalities of law or procedure,
in all instances observing due process.
(e) The investigation or hearing involving a presidential

appointee with the position of Undersecretary or higher shall be
conducted by the Commission sitting en banc. The investigation or
hearing involving a presidential appointee occupying a lower position
may be entrusted to a Commissioner or panel of hearing officers duly
designated by the Chairman; Provided, however, that the report or
recommendations of the Commissioner or panel of hearing officers
who investigated or heard the administrative case or complaint shall
be deliberated upon and reviewed by the Commission en banc before
submitting its report and recommendations to the President.
SEC. 5. Powers Incidental to Investigation. – The

Commission shall have the power to administer oaths and issue
subpoena ad testificandum and duces tecum. The Commission shall
likewise have the power to call upon and secure the assistance of
any office, committee, commission, bureau, agency, department or
instrumentality in the Executive Branch, including government-
owned or controlled corporations.
720
During the pendency of its investigation or hearing, the

Commission may recommend to the President the preventive
suspension of the respondent for such periods as may be allowed
by law.
SEC. 6. Enforcement of Subpoena. – Upon failure to comply

with a subpoena issued by the Commission or by its authority
without adequate cause, the Commission en banc, on motion or
motu propio, may recommend to the President, after formal charge
and hearing, the suspension or dismissal from the service of the
non-complying government personnel.
SEC. 7. Resignation/Retirement of Respondent. – The

resignation or retirement of the public officer under investigation
shall not divest the Commission of jurisdiction to continue the
investigation or hearing and submit its recommendations to the
President as to the imposition of accessory penalties or such other
action to be taken.
SEC. 8. Submission of Report and Recommendations. – After

completing its investigation or hearing, the Commission en banc
shall submit its report and recommendations to the President. The
report and recommendations shall state, among others, the factual
findings and legal conclusions, as well as the penalty recommended
to be imposed or such other action that may be taken.
SEC. 9. Referral to Other Government Units. – Whenever

the Commission deems it warranted and necessary, it may refer for
appropriate action any case to the Office of the Ombudsman, or any
other office, committee, commission, bureau, agency, department,
instrumentality or branch of the government, including government-
owned or controlled corporations.
SEC. 10. Measures to Prevent and Minimize Graft and

Corruption. – The Commission may conduct studies, on its own or
in cooperation with other government agencies or non-government
organizations, on new measures to prevent and minimize
the opportunities for graft and corruption at all levels of the
bureaucracy.
721
SEC. 11. Consultants and Deputies. – The Chairman may

engage the services of qualified consultants and/or deputies, from
the public or private sector, subject to pertinent laws, rules and
regulations.
SEC. 12. Reports. – At least thirty (30) days before the

opening of each session of congress, the Commission shall submit
to the President:
(a) A list of respondents whom it has investigated, together

with its recommendations, and other data or information
it may deem necessary to be included;
(b) A list of respondents whom it is investigating, the status

of the investigation, as well as other data or information
it may deem necessary to be included; and
(c) Such other report or recommendation which is germane

to any provision or purpose of this Executive Order or as
may be required by the President.
SEC. 13. Disclosures. – The Commission shall not disclose

or make public an record or information in connection with any
investigation or hearing when such disclosure would deprive the
respondent of his right to a fair and impartial adjudication. All
disclosures of the Commission relating to an administrative case or
complaint shall be balanced, fair, and accurate.
SEC. 14. Continued Performance of PCAGC. – Until

the members of the Commission have been duly appointed, the
Presidential Commission Against Graft and Corruption (PCAGC)
shall continue to perform its powers, duties and functions under
Executive Order Nos. 151 and 151-A, both series of 1994, with
respect only to cases already pending before it.
SEC. 15. Transfer of PCAGC Officers and Personnel. –

The officers and personnel of the PCAGC may be transferred and
appointed to such positions in the Commission for which they are
deemed qualified.
722
SEC. 16. Transfer of PCAGC Funds, etc. – The funds, records,

equipment, furnitures, and other properties of the PCAGC shall be
transferred to the Commission.
SEC. 17, Rules and Regulations. – The Commission shall

promulgate or adopt its rules and regulations for the effective
implementation of this Executive Order.
SEC. 18. Funding. – The Commission shall have a budget of

Eighteen Million Two Hundred Sixty Three Thousand Pesos (P18,
263,000.00) drawn against the budget appropriated for the National
Anti-Corruption Commission. Any additional funding requirement
shall be determined in coordination with the Department of Budget
and Management and shall be submitted to the Office of the
President for approval.
SEC. 19. Repeal. – Executive Orders Nos. 151 and 151-A,

dated January 11, 1994 and January 21, 1994 respectively, which
created the PCAGC, are hereby repealed. Executive Order No. 268,
dated July 18, 2000, which created the National Anti-Corruption
Commission, is also hereby repealed. All other issuances, orders
rules, and regulations, or parts thereof, inconsistent with this
Executive Order are hereby repealed or modified accordingly.
SEC. 20. Effectivity – This Executive Order shall take effect

immediately upon approval.
Manila, April 16, 2001.

By the President:
(Sgd.) WALDO Q. FLORES

Senior Deputy Executive Secretary
723
ESTABLISHING THE GOVERNANCE ADVISORY COUNCIL
WHEREAS, there is a need to formulate a national governance

reform agenda, hereinafter referred to as the Governance Agenda,
to promote the global competitiveness of the Philippines in order to
gain a higher and more sustained level of confidence from local and
foreign investors;
WHEREAS, the business sector and civil society must take

an active part in drawing up the Governance Agenda;
WHEREAS, there must be serious efforts to align local

corporate governance practices, both in the public and private
sectors, with international standards and globally-accepted core
principles of corporate governance consistent with the economic,
social and political policies of the government;

SECTION 1. Creation of a Governance Advisory Council. -

There is hereby created a Governance Advisory Council, hereinafter
referred to as the Council, which shall serve as an advisory body
to the President with the principal function of formulating the
Governance Agenda to promote the global competitiveness of the
Philippines.
The President shall appoint one (1) Chairperson and four

(4) members to the Council, all of whom shall come from the private
sector. The Chairperson and the members of the Council shall have
a term of one (1) year, subject to a renewal or extension of their
respective terms by the President.
724
SEC. 2. Staff Support to the Council. - The Council shall

have a Secretariat headed by an Executive Director from the
private sector appointed by the President for a term of one (1) year.
The Secretariat shall render research, administrative and technical
assistance to the Council.
SEC. 3. Functions. - The Council shall have the following

functions:
Formulate the Governance Agenda for submission to the

President within six (6) months from the issuance of this Executive
Order;
b. Recommend policies, programs and courses of action to:
i. Simplify the rules and regulations of select

government agencies to raise their effectiveness and
the standards of transparency and integrity in their
dealings with the general public;
ii. Raise the standing of the Philippines in international

rankings on transparency, business ethics and
integrity of business and financial transactions;
and
iii. Facilitate and expedite national and corporate

governance reforms.
c. Develop a criteria and system for the conferment

of governance awards to deserving corporations,
institutions and other entities from the public and
private sectors;
d. Develop a framework of cooperation that facilitates

interaction between civil society, the business sector
and the government for higher levels of observance of
725
good governance principles and faster implementation

of governance reforms;
e. Promote governance reform initiatives undertaken

by professional groups and strategic sectors aimed at
raising the standards of professional practice; and
f. Such other functions which the President may assign.
SEC. 4. Reports and Information Dissemination. -
a. Advisory Status. The Council shall submit regular

reports on the progress of its activities directly to the
President.
b. Information Dissemination and Publication Program.

The Council shall hold conferences, organize seminars,
workshops and roundtable discussions and issue
publications for the purpose of disseminating and
making available the results of its studies and policy
recommendations to the government, nongovernment
organizations, educational and research
institutions, the business community and the public in
general.
SEC. 5. Technical Assistance from Government. - All

government departments, agencies, bureaus, and offices are hereby
directed to assist and cooperate with the members of the Council, its
Secretariat and their authorized representatives and to grant them
access to such information, data and records as are necessary for
the fulfillment of their objective, in accordance with law.
SEC. 6. Funding. - The private sector, including private

corporations, foundations and donor agencies, shall fund the
operations and work of the Council. The Chairman and members of
the Council, its Executive Director and Secretariat shall not receive
any salary or fees from the government.
726
SEC. 7. Effectivity. - This Executive order shall take effect

City of Manila, July 18, 2001.

President
(Sgd.) ALBERTO G. ROMULO

Executive Secretary
727
STREAMING THE RULES AND PROCEDURES ON THE

REVIEW AND APPROVAL OF ALL CONTRACTS OF
DEPARTMENTS, BUREAUS, OFFICES AND AGENCIES
OF THE GOVERNMENT, INCLUDING GOVERNMENT-
OWNEDOR CONTROLLED CORPORATIONS AND THEIR
SUBSIDIARIES
WHEREAS, in line with the government’s program of

good governance, there is a need to streamline procedures for the
review and approval of government contracts for the expeditious
implementation of development projects and the speedy delivery
of basic services while promoting transparency, impartiality, and
accountability in government transactions;
WHEREAS, to achieve the foregoing, the National Economic

and Development Authority (NEDA) has recommended the issuance
of this Executive Order;

SECTION 1. Public Bidding. - It is the policy of this

Administration that all Government Contracts shall be awarded
through open and competitive public bidding, save in exceptional
cases provided by law and applicable rules and regulations, as
described in Section 2 of this Executive Order.
Except for contracts required by law to be acted upon and/or

approved by the President, Department Secretaries shall have full
authority to give final approval and/or enter into all Government
Contracts of their respective departments and of bureaus, offices,
and agencies, government-owned or controlled corporations and
their subsidiaries attached or under the control and/or supervision
of the Department Secretary, awarded through public bidding,
regardless of the amount involved.
728
Every Department Secretary and Head of bureau, office, and

agency of the government, as well as the Head and governing board of
a government-owned or controlled corporation and subsidiary, shall
be responsible and accountable for ensuring that all Government
Contracts entered into are in accordance with all existing laws,
rules and regulations and are consistent with the spending and
development priorities of government.
SEC. 2. Exceptions to Public Bidding. - The law and

applicable rules and regulations provide for exceptional cases where
a Government Contract may be excepted from the requirement of
public bidding, as follows:
a. For infrastructure projects, including supply contracts,

civil works, and other related contracts, as provided under
Section 62, Chapter 13, Book IV, Revised Administrative
Code of 1987, Section 4, Presidential Decree No. 1594,
and Executive Order No. 40 dated October 8, 2001 [EO
40] and its Implementing Rules and Regulations;
b. For procurement of goods, supplies, materials and related

services as provided under EO 40 and its Implementing
Rules and Regulations; and
c. For consulting services as provided under EO 40 and its

implementing Rules and Regulations.
SEC. 3. Requirements for Exception from Public Bidding. -

Where the Department Secretary has made a determination that
a Government Contract involving an amount of at least Three
Hundred Million Pesos (P300 Million) falls under any of the
exceptions from public bidding described in Section 2 hereof, the
Department Secretary shall, before proceeding with the alternative
modes of procurement as provided by law and applicable rules and
regulations, obtain the following:
a. An opinion from the Secretary of Justice that said

Government Contract falls within the exceptions from public
bidding; and
729
b. Approval from the Director-General of NEDA to proceed

with a specific alternative mode of procurement under the exceptional
cases provided by the law and applicable rules and regulations.
After compliance with the foregoing requirements, except

for contracts required by law to be acted upon and/or approved by
the President, Department Secretaries shall have full authority to
give final approval and/or enter into such Government Contracts
excepted from the requirement of public bidding, regardless of the
amount involved.
Where a Government Contract, not required by law to be

acted upon and/or approved by the President, involves an amount
below Three Hundred Million Pesos (P300 Million) and the
concerned Department Secretary has made a determination that
the Government Contract falls under any of the exceptions from
public bidding described in Section 2 hereof, the Department
Secretary has full authority to give final approval and/or enter into
the Government Contract without need of obtaining the foregoing
requirements.
The Department Secretary may delegate in writing to

appropriate officials, subject to appropriate ceilings, this authority
to determine whether a Government Contract involving an amount
below Three Hundred Million Pesos (P300 Million) falls under any
of the exceptions from public bidding described in Section 2 hereof.
SEC. 4. Governing Law for Government Contracts.-
a. BOT Contracts. Contracts undertaken through Build

Operate and Transfer (BOT) schemes and other variations shall be
governed by the provisions of Republic Act No. 6957, as amended
by Republic Act. No. 7718, and its Implementing Rules and
Regulations.
b. Contracts for infrastructure projects, including supply

contracts, civil works, and other related contracts. Contracts for
infrastructure projects, including supply contracts, civil works,
730
and other related contracts shall be governed by the Revised

Administrative Code of 1987, Presidential Decree No. 1594 and EO
40 and its Implementing Rules and Regulations.
c. Contracts for goods, supplies, materials and related services.

Contracts for goods, supplies, materials and related services shall be
governed by EO 40 and its Implementing Rules and Regulations.
d. Contracts for consulting services. Contracts for consulting

services shall be governed by EO 40 and its Implementing Rules
and Regulations.
e. Lease Contracts. Lease contracts for goods, supplies

and materials shall be governed by EO 40 and its implementing
Rules and Regulations. Lease contracts for real estate and other
properties shall be governed by Executive Order No. 301 dated July
26, 1987 and guidelines issued by the Department of Public Works
and Highways.
f. ODA-funded Contracts. Government Contracts financed

wholly or partly with Official Development Assistance (ODA)
funds shall be governed by Republic Act No. 4860, as amended and
Republic Act No. 8182, as amended by Republic Act No. 8555.
NEDA shall issue guidelines for Government Contracts

financed with ODA funds with the objective of promoting
transparency, impartiality and accountability in government
transactions.
SEC. 5. Joint Venture Agreements. - NEDA shall, in

consultation with the Department of Justice, issue guidelines
regarding joint venture agreements with private entities with the
objective of promoting transparency, impartiality, and accountability
in government transactions and where applicable, complying with
the requirements of an open and competitive public bidding.
SEC. 6. Transactions of Government Financial Institutions.

- Transactions of government financial institutions in the ordinary
731
course of business shall not be covered by the provisions of this

Executive Order. Such transactions shall instead be subject to
applicable provisions of law and to guidelines, rules and regulations
issued by the Department of Finance.
SEC. 7. Requirements for All Government Contracts. - All

Government Contracts shall be.
a. Processed completely by the concerned department, bureau,

office and agency of the government, including a government-owned
or controlled corporation and its subsidiary:
b. Signed and/or approved by the Head of the bureau, office,

and agency of the government, the Head and/or governing-owned
or controlled corporation and its subsidiary and the Department
Secretary; and
c. Accompanied by the certifications issued by (i) the

concerned Department Secretary; (ii) the Head of the bureau, office
or agency; and (iii) the Head and governing board of the government-
owned or controlled corporation or its subsidiary, that the contract
is in accordance with all existing laws, rules and regulations.
SEC. 8. Authority to bind the Government. All

Government Contracts shall require the approval of the Department
Secretary after the Government contract has been signed and /or
approved by the Head of a bureau, office or agency or by the Head
and / or governing board of the government-owned or controlled
corporation or its subsidiary, before the Government Contract shall
be considered approved in accordance with law and binding on the
government.
Except for contracts required by law to be acted upon and/or

approved by the President, the Department Secretary possesses the
full authority to approve and/or enter into a Government Contract
binding on the government. However, a Department Secretary may
delegate in writing to appropriate officials, subject to appropriate
ceilings, this authority to approve a Government Contract involving
732
an amount below Three Hundred Million Pesos (P300 Million),

whether publicly bidded or excepted from public bidding, as he sees
fit under the circumstances.
For Government Contracts signed by the head of a bureau,

office, and agency of the government, and by the Head and/ or
governing board of a government-owned or controlled corporation
and its subsidiary attached to or under the Office of the President,
the Executive Secretary shall approve the government Contract in
accordance herewith.
All Government Contracts entered into in violation of the

provisions of law, existing rules and regulations, and this Executive
Order shall be considered contracts entered into without authority
and are thus invalid and not binding on the government.
SEC. 9. Government Contracts Requiring Presidential

Action and/or Approval. – a. All Government Contracts required by
law to be acted upon and/or approved by the President, and any
subsequent amendments or supplements thereto, shall not be signed
until after the NEDA Board, which is chaired by the President of
the Philippines, has favorably acted upon or approved the same.
b. All Government Contracts required by law to be acted upon

and/or approved by the President, and any subsequent amendments
or supplements thereto, shall be submitted to NEDA, through
its Director-General, within seven (7) days from the approval by
the Department Secretary concerned, for NEDA’s review and
evaluation.
Government Contracts submitted hereunder shall be

accompanied by a complete execution copy of the contract, related
agreements, Annexes, other approvals and permits, including a
detailed summary of the pertinent laws, rules and regulations
governing the processing and award of the contract, and the
certifications issued by (I) the concerned Department Secretary;
(ii) the Head of the bureau, office or agency; and (iii) the Head and
governing board of the government-owned or controlled corporation
733
or its subsidiary, the contract is in accordance with all existing laws,

c. Within thirty (30) days from its receipt of the Government

Contracts, and any subsequent amendments or supplements thereto,
NEDA shall submit its recommendation to the NEDA Board, which
is chaired by the President of the Philippines, for appropriate
action.
d. Within seven (7) days from the date of the NEDA Board’s
action NEDA, through its Director-General, shall formally notify
the Department Secretary concerned of the action of the NEDA
Board, including any comments thereon.
SEC. 10. Submission of Government Contacts. - With a view

to creating a repository of all important Government Contract, a
complete copy of all Government Contracts involving an amount of at
least Three Hundred Million Pesos (P300 Million) shall be submitted
to NEDA, through its Director General, within seven (7) days from
the date of signing and / or approvals thereof, accompanied with a
complete copy of its related agreements, annexes, other approvals
and permits, a detailed summary of the pertinent laws, rules and
regulations governing the processing and award of the contract, and
the certifications required under Section 7 hereof.
SEC. 11. Splitting of Government Contracts. - Splitting of

Government Contracts is not allowed. Splitting of Government
Contracts means the division or breaking up of Government
Contracts into smaller quantities and amounts, or dividing contract
implementation into artificial phases or sub-contracts for the
purpose of evading or circumventing the requirements of law and
this Executive Order, especially the necessity of public bidding
and the requirements for exceptions therefrom in accordance with
Section 3 hereof.
SEC. 12. Local Government Units. - All contracts of Local

Government Units funded by the national government shall
be governed by the provisions of this Executive Order and its
734
implementing guidelines, rules and regulations. Furthermore,

Local Government Units are encouraged to apply the provisions of
this Executive Order for contracts entered into and / or funded by
Local Government Units.
SEC. 13. Prospective Application. - All Government Contracts,

including those presently being processed and / or reviewed by the
NEDA Board in accordance with Administrative Order No. 7 dated
March 23, 2001, shall hereafter be processed and / or reviewed in
accordance with this Executive Order.
SEC. 14. Implementing Guidelines, Rules and Regulations.

- NEDA shall, within thirty (30) days from the effectivity of this
Executive Order, issue the appropriate guidelines, rules and
regulations to implement the provisions of this Executive Order.
Such guidelines, rules and regulations shall include, among

others, provisions governing:
a. ODA-funded contracts,
b. Joints venture agreements with private entitles, and
c. Submission of Government contracts to NEDA.
All such guidelines, rules and regulations shall be subject to

the approval of the President of the Philippines.
NEDA may recommend penalties for violations of

the provisions of this Executive Order for the approval of the
President.
NEDA shall likewise submit, within the same period, a

complete list of all Government Contracts required by law to be
acted upon and / or approved by the President. For this purpose,
NEDA may request the assistance of all departments, bureaus,
offices or agencies of government, as well as government-owned or
controlled corporations and their subsidiaries.
735
SEC. 15. Applicability of Existing Laws. - The Provisions of

the following shall continue to be applicable:
a. Executive Order No. 292 dated July 26, 1987 or the Revised
Administrative Code of 1987;
b. Presidential Decree No. 1594;
c. Republic Act No. 6957, as amended by Republic Act No.

7718, and its Implementing Rules and Regulations;
d. Executive Order No. 301 dated July 26, 1987; and
e. Executive Order No. 40 dated October 8, 2001 and its

Implementing Rules and Regulations.
SEC. 16. Repeal and Amendment. - The following orders,

issuances, memoranda and other Presidential issuances are hereby
repealed:
a. Executive Order No. 380 dated November 27, 1989;
b. Executive Order No. 381 dated November 27, 1989;
c. Executive Order No. 354 dated July 5, 1996;
d. Administrative Order No. 7 dated March 23, 2001
e. Memorandum Circular No. 25 dated February 10, 1999;
f. Memoranda from the President dated August 25, 1998,

September 7, 1998, January 25, 1999, February 5, 1999, February 8,
1999, February 10, 1999, February 23, 1999, and July 12, 1999, all
relating to the submission of contracts / agreements on infrastructure
and infra-related projects worth P50 Million and above for review
by the Office of the President;
736
g. Memorandum from the President dated February 8, 2000

on Review of ODA-funded Contracts, and
h. Memorandum from the President dated June 30, 2000

on the review of contracts disposing government land, whether by
lease or sale.
Memorandum Order No. 266 dated November 28, 1989

insofar as it relates to joint venture agreements with private entities
is hereby amended accordingly.
All other Presidential directives, issuances, orders, rules

and regulations or parts thereof inconsistent with this Executive
Order are likewise hereby repealed or modified accordingly.
SEC. 17. This Executive Order shall take effect immediately

upon publication in two (2) newspapers of general circulation.
DONE in the City of Manila, this 27th day of May, in the

year of our Lord Two Thousand and Two.

BY THE PRESIDENT:
(Sgd.) AVELINO J. CRUZ, JR.

737
DIRECTING THE ADOPTION OF THE CODE OF GOOD

GOVERNANCE FOR THE PROFESSIONS IN THE
PHILIPPINES
WHEREAS, pursuant to Section 14, Article XII of the

Constitution, “the sustained development of a reservoir of national
talents consisting of Filipino scientist *** professionals *** high-
level technical manpower *** shall be promoted by the State.”;
(underscoring supplied)
WHEREAS, good governance is one pillar of a strong

republic;
WHEREAS, by virtue of the provisions of Section 5 and 7(a) of

Republic Act No. 8981, otherwise known as the PRC Modernization
Act of 2000, the Professional Regulation Commission (PRC),
hereinafter called the Commission, is empowered to adopt policies,
such as professional standards and principles designed to enhance
and maintain high professional, technical, and ethical standards in
the practice of the professions;
WHEREAS, the adoption of the Code of Good Governance

will promote and establish ethical awareness and competency
among Filipino professionals to make them accountable to their
public liability and fully fulfill their professional obligation to their
clients; and
WHEREAS, the Code will empower professionals not only to

upgrade or improve their technical and ethical proficiency but also
to keep them abreast with modern trends and technology in their
respective professions, thereby assuring the highly qualitative and
globally-competitive professional services, and secure the safety
and protection of the public.

738
SECTION 1. The Code of Good Governance for the Professions

in the Philippines shall be adopted by all registered professionals.
SEC. 2. The Governance Advisory Council and the

Professional Regulation Commission (PRC) are hereby directed
to undertake measures, including networking with government
agencies and civil society, to effectively implement and enforce the
Code through the Professional Regulatory Boards (PRBs) under the
Commission’s supervision and control.
SEC. 3. The PRC shall, after consultation with and upon

recommendation of the various Boards, issue the necessary
guidelines and procedures for the enforcement of the Code.
SEC. 4. Repealing Clause - Any executive issuance, orders or

provisions thereof inconsistent with the provisions of this Executive
Order are deemed modified or repealed.
SEC. 5. Effectivity - This Executive Order shall take effect

immediately.
DONE, in the City of Manila this 23rd day of June, in the

year of Our Lord Two Thousand and Three.

President

Executive Secretary
739
AMENDING EXECUTIVE ORDER NO. 12 DATED 16 APRIL

2001 ENTITLED “CREATING THE PRESIDENTIAL
ANTI-GRAFT COMMISSION AND PROVIDING FOR ITS
POWERS, DUTIES, AND FUNCTIONS AND FOR OTHER
PURPOSES”
WHEREAS, to address the need for a new body to assist

the President in the campaign against graft and corruption in
the Executive Department, the President issued Executive Order
No. 12 dated 16 April 2001 creating the Presidential Anti-Graft
Commission, hereinafter referred to as the “Commission;”
WHEREAS, Section 2 of the said Executive Order provides,

among others, that “(a)ll the members of the Commission shall
serve on a fulltime basis and a majority shall be members of the
Philippine Bar;”
WHEREAS, in order for the Commission to espouse a more

holistic approach in dealing with the problem of graft and corruption
in the Government, there is a need to appoint therein reputable
individuals who represent other related fields or disciplines;

vested in me by the Constitution and the laws, do hereby order:
SECTION 1. Section 2 of Executive Order No. 12 dated 16

April 2001 is hereby amended to read as follows:
“SEC. 2. Composition.- The Commission shall be composed

of a Chairman and two (2) Commissioners to be appointed by the
President. All the members of the Commission shall serve on a
full-time basis and at least one of whom shall be a member of the
Philippine Bar. The Chairman shall have the rank, emoluments
and privileges of a Presidential Assistant II. The Commissioners,
on the other hand, shall have the rank, emoluments, and privileges
740
of a Presidential Assistant I. The Chairman shall preside over the

meetings of the Commission and shall direct and supervise the
implementation and execution of policies, rules and regulations.”
SEC. 2. Repealing Clause. - All other executive issuances or

portions thereof inconsistent with this Executive Order are hereby

Done in the City of Manila, this 9th day of July, in the Year
of our Lord Two Thousand and Four.
(Sgd.) GLORIA MACAPAGAL –ARROYO

By the President:

Executive Secretary
741
DESIGNATING THE CHIEF PRESIDENTIAL LEGAL COUNSEL

AS ANTI-CORRUPTIONG SWIFT ACTION TEAM (SWAT)
LEADER
WHEREAS, to achieve urgent change, the Macapagal-Arroyo

administration shall improve tax collection, pass a budget that shall
support the administration’s 10-point plan and pro-poor agenda,
and take executive action to break the culture of corruption;
WHEREAS, to create more jobs and bring greater prosperity

to the Filipino people, it is imperative to stop the culture of corruption
that holds back the country’s pace of development;
WHEREAS, Executive Authority shall be exerted to

prosecute illegal loggers, cancel government contracts with corrupt
companies, fire unscrupulous government officials who rob the
nation, and restore integrity to the military leaders and soldiers of
the nation who put their lives at risk and defend the honor of the
nation;
WHEREAS, Congress, the private sector, and civic leaders

shall be called on to join in the aforesaid effort;
WHEREAS, the structure needed for results is a campaign

model;
WHEREAS, to put the structure to work, a Swift Action Team

(SwAT) shall be put in place for each of the key issues: Economy, 10
Point Agenda, Anti-Corruption;
WHEREAS, each SwAT shall have a Team Leader;
NOW, THEREFORE I, GLORIA MACAPAGAL-ARROYO,

vested in me by law, do hereby order.
742
SECTION 1. Designation of Anti-Corruption SwAT Leader.

- In addition to the functions under Memorandum Order No. 152
(2004), the Chief Presidential Legal Counsel is hereby designated
as Anti-Corruption SwAT Leader.
SEC. 2. Powers and Functions. - The Anti-Corruption

SwAT Leader is mandated to discharge the following powers and
functions:
a. Organize the Anti-Corruption Swift Action Team

(SwAT);
b. Work together with the Team to get anti-corruption

issues on the President’s schedule and/or move forward
self-sustaining events;
c. Lead a results-oriented, communications-driven schedule

for each 90- day period starting from the date of
effectivity of this Executive Order; and
d. Perform such other functions necessary for the effective

discharge of this mandate in accordance with law and
as may be directed by the President.
SEC. 3. Assistance from Other Government Entities. All

departments, bureaus, agencies and instrumentalities of the
government are hereby directed/urged to provide full assistance and
support to the Anti-Corruption SwAT and its leader.
SEC. 4. The Department of Budget and Management shall

determine the funding for the implementation of this Executive
Order.
SEC. 5. All orders, rules and regulations, and issuances or

parts thereof which are inconsistent with this Executive Order are
hereby repealed, amended or modified accordingly.
743

immediately.
Done, in the City of Manila this 24th day of February in the

year of Our Lord, Two Thousand and Five.

President
(Sgd.) EDUARDO R. ERMITA

Executive Secretary
744
ENSURING OBSERVANCE OF THE PRINCIPLE OF SEPARATION

OF POWERS, ADHERENCE TO THE RULE ON EXECUTIVE
PRIVILEGE AND RESPECT FOR THE RIGHTS OF PUBLIC
OFFICIALS APPEARING IN LEGISLATIVE INQUIRIES
IN AID OF LEGISLATION UNDER THE CONSTITUTION,
WHEREAS, the Constitution guarantees the separation of

powers of the Executive, Legislative and Judicial branches of the
government;
WHEREAS, Article VI, Section 22 of the Constitution

provides that heads of departments may, with the prior consent
of the President, appear before and be heard by either House of
Congress on any matter pertaining to their departments and, when
the security of the State or the public interest so requires and the
President so states in writing, such appearance shall be conducted
in executive session;
WHEREAS, pursuant to the rule of executive privilege,

the President and those who assist her must be free to explore
alternatives in the process of shaping policies and making decisions
since this is fundamental to the operation of the government and is
rooted in the separation of powers under the Constitution;
WHEREAS, Article VI, Section 21 of the Constitution

mandates that the rights of persons appearing in or affected
by inquiries in aid of legislation by the Senate or House of
Representatives shall be respected;
WHEREAS, recent events, particularly with respect to

the invitation of a member of the Cabinet by the Senate as well
as various heads of offices, civilian and military, have highlighted
the need to ensure the observance of the principle of separation of
powers, adherence to the rule on executive privilege and respect for
745
the rights of persons appearing in such inquiries in aid of legislation

and due regard to constitutional mandate;
WHEREAS, there is a need to prevent such inquiries in

aid of legislation from being used for partisan political purposes,
disrupting diplomatic relations with foreign governments, and
weakening the stability of the State, thereby impeding the efforts of
the government to generate and attract foreign investments;
WHEREAS, Republic Act No. 6713 or the Code of Conduct and

Ethical Standards for Public Officials and Employees provides that
public officials and employees shall not use or divulge confidential
or classified information officially known to them by reason of their
office and not made available to the public to prejudice the public
interest;
WHEREAS, Article 229 of the Revised Penal Code prohibits

any public officer from revealing any secret known to him by reason of
his official capacity or wrongfully delivering papers or copies thereof
which he may have charge and which should not be published;
WHEREAS, 1987 Constitution and the Administrative

Code of 1987 provide that the President shall have control of all
government departments, bureaus and offices and shall ensure that
all the laws be faithfully executed.
NOW, THEREFORE, I, GLORIA MACAPAGAL ARROYO,

President of the Republic of the Philippines, by the powers vested in
me by law, do hereby order:
SECTION 1. Appearnce by Heads of Departments Before

Congress. – In accordance with Article VI, Section 22 of the
Constitution and to implement the Constitutional provisions on
separation of powers between co-equal branches of the government,
all heads of departments of the Executive Branch of the government
shall secure the consent of the President prior to appearing before
either House of Congress.
746
When the security of the State or the public interest so

requires and the President so states in writing, the appearance
shall only be conducted in executive session.
SECTION 2. Nature, Scope and Coverage of Executive

Privilege. –
(a) Nature and Scope. – The rule of confidentiality based on

executive privilege is fundamental to the operation of government
and rooted in the separation of powers under the Constitution
(Almonte vs. Vasquez, G.R. No. 95367, 23 May 1995). Further,
Republic Act No. 6713 or the Code of Conduct and Ethical Standards
for Public Officials and Employees provides that public officials
and employees shall not use or divulge confidential or classified
information officially known to them by reason of their office and
not made available to the public to prejudice the public interest.
Executive privilege covers all confidential or classified

information between the President and the public officials covered
by this executive order, including:
(i) Conversations and correspondence between the President

and the public officials covered by this executive order
(Almonte vs. Vasquez, G.R. No 95367, 23 May 1995;
Chavez v. Public Estates Authority, G.R. No. 133250, 9
July 2002);
(ii) Military, diplomatic and other national security matters

whch in the interest of national security should not be
divulged ( Almonte vs. Vasquez, G.R. 95367, 23 May
1995; Chavez v. Presidential Commission on Good
Government, G.R. No. 130716, 9 December 1998);
(iii) Information between inter-government agencies prior

to the conclusion of treaties and executive agreements
(Chavez v. Presidential Commission on Good
Government, G.R. No. 130716, 9 December 1998);
747
(iv) Discussions in closed-door Cabinet meetings (Chavez

v. Presidential Commission on Good Government, G.R.
No. 130716, 9 December 1998);
(v) Matters affecting national security and public order

(Chavez v. Public Estates Authority, G.R. No. 133250, 9
July 2002).
(b) Who are covered. – The following are covered by this

executive order:
(i) Senior officials of executive departments who in the

judgment of the department heads are covered by the
executive privilege;
(ii) Generals and flag officers of the Armed Forces of the

Philippines and such other officers who in the judgment of
the chief of Staff are covered by the executive privilege;
(iii) Philippine National Police (PNP) officers with rank of

chief superintendent or higher and such other officers
who in the judgment of the Chief of the PNP are covered
by the executive privilege;
(iv) Senior national security officials who in the judgment

of the National Security Adviser are covered by the
executive privilege; and
(v) Such other officers as may be determined by the

President.
SECTION 3. Appearance of Other Public Officials Before

Congress. – All public officials enumerated in Section 2 (b) hereof
shall secure prior consent of the President prior to appearing before
either House of Congress to ensure the observance of the principle
of separation of powers, adherence to the rule on executive privilege
and respect for the rights of the public officials appearing in inquiries
in aid of legislation.
748
SECTION 4. Repealing Clause. – All executive issuances,

orders, rules and regulations or parts thereof inconsistent with the
provisions of this Executive Order are hereby repealed or modified
accordingly.
SECTION 5. Separability Clause. – If any section or

provision of this executive order shall be declared unconstitutional
or invalid, the other sections or provisions not affected thereby shall
remain in full force and effect.
SECTION 6. Effectivity. – This Executive Order shall take

effect immediately.
DONE in the City of Manila this 28th day of September in

the Year of our Lord, Two Thousand and Five.

President
By the President:

Executive Secretary
749
STRENGTHENING THE PRESIDENTIAL ANTI-GRAFT

COMMISSION BY AMENDING EXECUTIVE ORDER
NO. 12 SERIES OF 2001, AS AMENDED BY EXECUTIVE
ORDER NO. 327 SERIES OF 2004 AND REVOKING
MEMORANDUM ORDER NO. 86 SERIES OF 2003
WHEREAS, Article VII, Section 17 of the Constitution

provides that the President shall have control of all executive
department, bureaus and offices;
WHEREAS, improving moral standards in government is a

major thrust of the Arroyo administration;
WHEREAS, by virtue of Executive Order No. 12 dated 16

April 2001, the Presidential Anti-Graft Commission was created to
assist the President in the campaign against graft and corruption;
WHEREAS, there is a need to strengthen the Presidential

Anti-Graft Commission;
NOW THEREFORE, I GLORIA M. ARROYO, President of the

Philippines, by virtue of the power vested in me by the Constitution
and the laws, do hereby order the following amendments to Executive
Order No. 12;
SECTION 1. Operating Units of the Presidential Anti-Graft

Commission. – The Presidential Anti-Graft Commission, hereinafter
referred to as the “Commission,” may, subject to pertinent laws,
rules and regulations, create, organize and set in operation such
organizational units necessary for the performance of its powers,
functions and duties and for the enforcement of this Executive Order.
Such operating units shall be staffed by duly qualified personnel and
those detailed to the Commission by other government entities.
The Chairperson of the Commission shall have the authority

to appoint, promote and discipline the personnel of all operating
750
units, subject to the rules and regulations of the Civil Service

Commission.
The Commission may hire new personnel; provided that

the organization structure and staffing pattern of the Commission
and subsequent changes in the same shall be approved by the
Department of Budget and Management.
SEC. 2. Jurisdiction, Powers and Functions. (a) The

Commission shall have the power on complaint or motu propio, and
concurrent with the Office of the Ombudsman, to investigate, receive,
gather and evaluate evidence, intelligence reports and information
on or hear administrative cases against all Presidential appointees
in the Executive Branch of the government and any of its agencies
or instrumentalities occupying the position of Assistant Regional
Director or an equivalent rank, and higher, otherwise classified
as Salary Grade “26’ and higher, under the Compensation and
Position Classification Act of 1989 (Republic Act No. 6758) including
members of the governing board of any instrumentality, regulatory
agency, chartered institution, and directors or officers appointed or
nominated by the President to government-owned or –controlled
corporations or corporations where the government has a minority
interest, or who otherwise represent the interests of the government
hereinafter referred to as “covered President appointees,” as well
as other public officers and employees, and private persons, in
conspiracy or connivance with covered Presidential appointees, for
acts or omissions constituting violations of any of the following:
(1) Republic Act No. 3019, as amended, otherwise known as

the “Anti-Graft and Corrupt Practices Act,”;
(2) Republic Act No. 1379 on the unlawful acquisitions of

(3) Republic Act No. 6713, otherwise known as the “Code of

Conduct and Ethical Standards for Public Officials and
Employees”;
751
(4) Any provisions under Title Seven, Book Two of the

Revised Penal Code;
(5) Executive Order No. 292, Series of 1987, otherwise

known as the “Administrative Code of 1987,” whenever
it defines and imposes administrative sanctions on acts
and omissions constituting violations of the foregoing
law and issuances;
(6) Rules and regulations duly promulgated by competent

authority to implement any of the foregoing laws and
issuances; and
(7) Other violations as may be referred to the Commission

by the President of the Philippines.
(b) The Commission may enlist the aid and support of

any law enforcement agency of the government in the exercise of
its functions. It may also call upon all government agencies and
instrumentalities, including government-owned and –controlled
corporations for assistance, whether for acquisition of documents
pertinent to its investigation or to participate in the investigation
itself. The Commission may recommend the admission of vital
witness into the Witness Protection Benefit Program administered
by the Department of Justice.
(c) The Commission shall, on complaint or motu propio, have

the authority to administratively adjudicate all cases failing within
its jurisdiction upon sufficient cause. All decisions of the Commission
shall be in the form of resolutions and recommendations to the
President or the Executive Secretary rendered en banc, and shall
state, among others, the factual findings, legal conclusions and
appropriate administrative penalties applicable.
(d) Upon the filling of a complaint or charge, the Commission

may recommend to the President or the Executive Secretary the
issuance of an order of preventive suspension against covered
Presidential appointees, when the circumstances of the investigation
752
warrant the same, as when the charges are punishable with removal
from the service or when respondent’s continued stay in office
would prejudice the fair determination of the case. The preventive
suspension shall continue until the case is terminated by the
Commission but in no case shall exceed a maximum of ninety (90)
days, except when the delay in the disposition of the case is due to
the fault, negligence or petition of the respondent, in which case the
period of such delay shall not be counted in computing the period of
suspension.
(e) The Commission shall use every and all reasonable

means to ascertain the facts in each case or complaint speedily and
objectively.
(f) The Commission shall, after due investigation, file the

appropriate criminal complaints with the office of the Ombudsman
or the Department of Justice, or otherwise refer cases for the
appropriate action of any such offices or other appropriate
Constitutional Commissions or government units, including
government-owned or controlled corporations, assist the prosecuting
agency or officer towards the successful prosecution of such cases,
and monitor the same. The Commission shall coordinate with the
Office of the Ombudsman, the Department of Justice, the Anti-
Money Laundering Council, and other appropriate government
agencies and instrumentalities to ensure the successful prosecution
of cases investigated by the Commission.
(g) The Commission shall have the mandate to formulate

national anti-corruption plans and strategies pursuant to the
Medium-Term Philippine Development Plan of the Arroyo
administration, and cause the efficient and effective implementation
of such plans and strategies. For this purpose, the Commission
shall enlist the services of the Presidential Management Staff on
measures to prevent and minimize the opportunities for graft and
corruption at all levels of bureaucracy.
(h) The Commission may engage the services of qualified

consultants and/or deputies from the public and private sectors,
subject to pertinent laws, rules and regulations.
753
(i) The Commission shall oversee the implementation

and compliance by all agencies, instrumentalities and offices in
the Executive Branch with all anti-graft and corruption laws
and issuances and shall secure their compliance with integrity
development or enhancement plans.
(j) The Commission may develop and conduct public

awareness and information campaigns, and engage in partnerships
or cooperative undertaking with local government units, civil society,
people’s organizations, the academe and/or the business sector, to
encourage public participation in the government’s anti-corruption
efforts.
(k) The Commission may recommend the issuance and

adoption of appropriate policies that would strengthen anti-
corruption efforts and hasten the arrest and prosecution of corrupt
government officers and employees, including private persons
conspiring with them.
SEC. 3. Powers to Summon Government Personnel and

Administrative Oaths. – Pursuant to its power to investigate and
adjudicate, the Commission shall have the power to administer oaths
and summon or subpoena government personnel and records.
SEC. 4. Effect of Non-Compliance with Summons – Any

reasonable delay or refusal of a Presidential appointee to comply
with the summons or subpoena issued by the Commission shall
constitute a ground for administrative disciplinary action to be
recommended by the Commission en banc against the Presidential
appointee to whom such summons or subpoena was addressed. The
Commission en banc may, for this purpose, also file the appropriate
criminal charge or complaint against the erring public officer or
employee with the civil courts, Civil Service Commission and other
appropriate tribunals.
SEC. 5. Interagency Assistance and Cooperation. –

All government agencies and instrumentalities shall give the
Commission all the assistance and cooperation required in order
754
to ensure the success of its programs and investigation pursuant to

the provisions hereof.
SEC. 6. Disclosures. – The Commission and its personnel shall

not disclose or make public any record or information in connection
with any investigation, when such disclosure would deprive the
respondent of his/her right to a fair and impartial disposition of
the case. Only the Chairperson may disclose any information to the
public; provided, that any such disclosures shall be balanced, fair
and accurate.
SEC. 7. Personnel. – The Commission may from time to

time restructure the plantilla, transfer officers and employees from
one position to another in order to company with the ratio of eighty
percent (80%) investigative personnel and twenty percent (20%)
administrative personnel.
SEC. 8. Funding. – The Commission shall have an appropriate

budget as determined by the Deputy Executive Secretary for
Finance.
SEC. 9. Separability Clause. – In the event that any

provisions of this Executive Order or any part thereof is declared
invalid, illegal or unconstitutional, the remainder of this Executive
Order or any provision not thereby affected shall remain in force
and effect.
SEC. 10. Revoking Memorandum order No. 86. –

Memorandum Order No. 86 dated 30 January 2003 is hereby
revoked. For this purpose, the signing authority of all orders,
resolutions and decisions rendered by the Commission reverts to
the Executive Secretary.
SEC. 11. Repealing Clause. – All orders, rules and regulations

and issuances or parts thereof inconsistent with this Executive
Order are hereby repealed, amended or modified accordingly.
755
SEC. 12. Effectivity. – This Executive Order shall take effect

fifteen (15) days after its publication.
DONE, in the City of Manila this 31st day of May 2006.
GLORIA MACAPAGAL-ARROYO
By the President:
EDUARDO R. ERMITA
Executive Secretary
756
AMENDING EXECUTIVE ORDER NO. 531, SERIES OF 2006, TO

FURTHER STRENGTHEN THE PRESIDENTIAL ANTI-
GRAFT COMMISSION
WHEREAS, relative to the heightened campaign of the

government against graft and corruption, there is a need to further
strengthen the Presidential Anti-Graft Commission with regard to
recommendations based on the findings of its investigations;

vested in me by the Constitution and existing laws, do hereby order
the following amendments to Executive Order No. 531, series of
2006;
SECTION 1. Section2, paragraph C shall hereinafter read

as follows:
“The Commission shall, on complaint or mutu propio, have

the authority to investigate all cases falling within its jurisdiction
upon sufficient cause. All recommendations of the Commission shall
be in the form of resolutions rendered en banc addressed to the
President, and shall state, among others, the factual findings, legal
conclusions and appropriate administrative penalties applicable.
The Executive Secretary may review and overrule the findings

of the Commission. The Commission may move for reconsideration in
accordance with established rules regarding quasi-judicial bodies.”
SEC. 2. Section 11 shall hereinafter read as follows:
“Repealing and Applicability Clause – All orders, rules

and regulations and issuances or parts thereof inconsistent with
this Executive Order are hereby repealed, amended or modified
accordingly.
757
This Executive Order shall apply to all decisions of the

Presidential Anti-Graft Commission pending before the Office of the
President or the Executive Secretary.”

after its publication.
Done in the City of Manila, this 23rd day of August, in

the year of Our Lord, Two Thousand and Six.

BY THE PRESIDENT:

Executive Secretary
758
EXECUTIVE ORDER NO. 531-B
FURTHER AMENDING EXECUTIVE ORDER NO. 531, SERIES OF

2006, TO CLARIFY THE INVESTIGATIVE JURISDICTION
OF THE PRESIDENTIAL ANTI-GRAFT COMMISSION
WHEREAS, improving the moral standards in government

is a major thrust of this administration;
WHEREAS, there is a need to cloth the Presidential Anti-

Graft Commission with investigative authority over some members
of the Armed Forces of the Philippines and the Philippine National
Police on a case to case basis.

vested in me by law, do hereby order
SECTION 1. Executive Order No. 531, series of 2006, is

hereby amended by inserting a sentence after Section 2, paragraph
(a), as follows:
“In addition, the President , may order the Commission

to investigate presidential appointees in the Armed Forces of the
Philippines (AFP) and the Philippine National Police (PNP) on a
case to case basis.”
SEC. 2. All orders, rules and regulations, and issuances or

parts thereof inconsistent with this Executive Order are hereby
repealed, amended or modified accordingly.
759
SEC. 3. This Executive Order shall immediately take effect

fifteen (15) days after its publication in a newspaper of general
circulation.
ADOPTED: 13 Dec. 2006.
(Sgd.) GLORIA M. ARROYO

President
BY THE PRESIDENT:

Executive Secretary
760
ESTABLISHING AN ANTI-RED TAPE TASK FORCE
WHEREAS, one of the strategic measures for global

competitiveness in the Medium Term Philippine Development
Plan is to reduce red tape in all government agencies to reduce
transactions costs;

President of the Philippines, by the power vested in me by
Constitution and the laws of the Philippines, do hereby order:
1. There is hereby established an Anti-Red Tape Task

Force (“Task Force”) with full-time members from
the Presidential Management Staff, the Commission
on Information and Communications Technology,
the Department of Trade and Industry, the Export
Development Council Secretariat, and the National
Anti-Poverty Commission as members. The Philippine
Chamber of Commerce and Industry shall likewise be
invited to be send a representative who shall participate
full-time in the activities of the Task Force.
2. The Secretary of Trade and Industry shall be the

Chairman of the Task Force. There shall be a full-time
operations officer coming from the Export Development
Council Secretariat.
3. The Task Force shall handle the Anti-Red Tape Module of

the forthcoming National Competitiveness Summit and
shall be incorporated into the National Competitiveness
Council to be established in the said Summit.
4. All executive issuances inconsistent with this Executive
Order are hereby repealed or modified accordingly.
5. This Executive Order takes effect immediately.
761
Done in the City of Manila, on the 8th day of August in the

year of Our Lord, Two Thousand and Six.

By the President:

Executive Secretary
762
ENHANCING TRANSPARENCY MEASURES UNDER REPUBLIC

TRANSPARENCY BOARD
WHEREAS, Republic Act No. 9184 (R.A. 9184) or the

Government Procurement Reform Act and its Implementing Rules
and Regulations Part A (IRR-A) recognize and adopt transparency
as a governing principle in public procurement;
WHEREAS, the projected increase in public sector capital

spending under the Medium Term Philippine Development Plan
requires transparency and compliance to the rule of law:
WHEREAS, there is a need for a body to monitor compliance

to anti-graft mechanism, to deter anomalies in the awarding of
public sector contracts and to prevent losses due to procurement
irregularities;
WHEREAS, R.A. 9184 and its IRR-A empower the

Government Procurement Policy Board (GPPB) to protect national
interest in all matters affecting public procurement and authorizes
its Technical Support Office (GPPB-TSO) to monitor and assist
procuring entities improve their compliance with R.A. 9481;
WHEREAS, the efficiency and effectivity of the GPPB in the

performance of its monitoring function would be further enhanced
through close coordination with a procurement transparency body;
NOW, THEREFORE, I, GLORIA M. MACAPAGAL-

ARROYO, President of the Republic of the Philippines, by virtue of
the powers vested in me by law, do hereby order:
763
ENHANCING TRANSPARENCY
SECTION 1. Procurement Reports. - All National Government

Agencies (NGAs), Government Owned and/or Controlled
Corporations (GOCCs), Government Financial Institutions (GFIs),
State Universities and Colleges (SUCs), and Local Government
Units (LGUs), through their bids and awards committees are
directed to post in the appropriate government website the following
procurement reports as required under R.A. 9184 and its IRR-A :
(a) Annual Procurement Plan;
(b) Procurement Monitoring Report;
(c) List of non-governmental organizations (NGOs), civil

society organizations, or professionals’ associations
invited as observers; and
(d) Blacklisting orders against suppliers, constructions, and

consultants.
The GPPB shall cause to be maintained in the appropriate

government website a database of proposed and concluded public
sector contracts involving an amount of P100,000,000.00 and
above.
SEC. 2. Posting in the Philippine Government Electronic

Procurement System (PhilGEPS). - All NGAs, GOCCs, GFIs, SUCs,
and LGUs, through its BACs, are likewise directed to post all
their procurement opportunities, results thereof, and other related
information in the PhilGEPS bulletin board, as required under
Section 8.2.1 of the IRR-A of R.A. 9184.
Non-compliance with the foregoing posting obligations shall

render the accountable officials liable for dereliction of duty and
conduct grossly prejudicial to the best interest of the service, without
764
prejudice to other charges, whether administrative, civil or criminal,

that may be filed under appropriate laws and regulations.
THE BOARD
SEC. 3. Procurement Transparency Group. - There is hereby

created a PROCUREMENT TRANSPARENCY GROUP, headed by
the GPPB and with the following government agencies and non-
government organizations (NGOs) as members:
a.) Presidential Anti-Graft Commission (PAGC);
b.) National Economic and Development Authority;
c.) Department of Justice;
d.) Department of Budget and Management;
e.) Department of Interior and Local Government;
f.) Bishops-Businessmen’s Conference for Human

Development;
g.) Transparency and Accountability Network;
h.) Volunteers Against Crime and Corruption; and
i.) Two (2) NGOs involved in training procurement

observers and/or procurement reforms.
SEC. 4. Participation of Government Agencies. - The heads

of the government agencies shall, by special written authority,
designate their duly authorized permanent representatives to the
Group. The non-government organizations are invited to authorize,
by special written authority, permanent representatives to the
Group.
765
FUNCTIONS AND RESPONSIBILITIES
SEC. 5. The Group shall evaluate, comment on, record and

monitor contracts entered into by NGAs, GOCCs, GFIs and SUCs
involving an amount of One Hundred Million Pesos (100,000,000.00)
and above.
5.1. For this purpose, pursuant to Procurement Law which

requires at least one (1) NGO Observer in the BAC, there
shall be one (1) NGO-member of the Group as specified
above sitting as NGO Observer in the Bids and
Awards Committee of NGAs, GOCCs, GFIs and SUCs
for contracts involving an amount of P100,000,000.00
and above.
5.2. The NGO Observer shall call the attention of agency

heads on potential non-compliance with R.A. 9184 and
its IRR-A.
5.3. The NGO Observer shall discuss and addressed issues

and concerns gathered from his/her procurement
monitoring activities.
5.4 Based on the findings of the NGO Observer, the group

shall make timely recommendations of remedial actions,
improvements in procurement, contract implementation
and monitoring processes to ensure compliance with
contractual terms and to safeguard government and
public interest.
5.5. The heads of agencies concerned, the Office of the

Executive Secretary and such other agencies or offices
as the Group may determine, shall be furnished copies
of its comments and recommendations.
766
5.6. The Group shall perform such other functions

needed to further enhance its monitoring capability
and accountability.
SEC. 6. All relevant documents and information on contracts

requested by the Group shall be provided by the concerned NGAs,
GOCCs, GFIs, SUCs and LGUs without causing any delay in the
bidding process.
SEC. 7. Upon findings of non-compliance with the foregoing

directives, the Group shall recommend to PAGC the imposition
of sanctions, implementation of remedial measures and the filing
of criminal, civil and/or administrative charges, and provide
information for actions that may be taken on its recommendations.
APPLICABILITY
SEC. 8. This Order shall not affect nor modify existing

functions of NGAs, GOCCs, GFIs, SUCs and LGUs relative to the
processing, awarding, approval and review of procurement contracts
except as herein specifically provided.
GUIDELINES AND DEPUTIZATION
SEC. 9. The Group shall issue guidelines for compliance and

monitoring activities and utilize the personnel and facilities of its
member agencies or organizations, and may upon request, deputize
and/or, on its own initiative, contract experts, local communities
and government units and non-government entities to assist in
information gathering and evaluation, and in contract compliance
monitoring. It may, subject to availability of funds, provide financial
assistance to such deputized agencies or entities.
767
SEPARABILITY
SEC. 10. Any portion of this Executive Order that may be

declared unconstitutional shall not have the effect of nullifying its
other portions or provisions, as long as such remaining portions can
still be given effect.
EFFECTIVITY

immediately.
DONE in the City of Manila, this 20th day of September in

the year of Our Lord, Two Thousand and Seven.

President
By the President:

Executive Secretary
768

ENTITLED “ENHANCING TRANSPARENCY MEASURES
UNDER REPUBLIC ACT NO. 9184 AND CREATING THE
PROCUREMENT TRANSPARENCY GROUP”
WHEREAS, Executive Order (E.O.) No. 662 entitled

Enhancing Transparency Measures under Republic Act No. 9184
and Creating the Procurement Transparency Group was issued last
September 20, 2007;
WHEREAS, there is an urgent need to amend E.O. No. 662 in

order to encourage greater involvement of civil society organizations
in the Procurement Transparency Group created thereunder, as
well as to affirm their deep sense of volunteerism;
WHEREAS, positive action, founded on the principles

of transparency and full disclosure, is called for to enlighten the
general public on procurement activities perceived to be anomalous
or problematic;

vested in me by law, do hereby order:
SECTION 1. The last paragraph of Section 1 of E.O. 662, s.

2007 is hereby amended to read as follows:
“The GPPB shall cause to be maintained in the appropriate

government website a database of proposed and concluded public
sector contracts regardless of amount involved.”
SECTION 2. Sections 3, 5 and 6 of E.O. No. 662, S. 2007, are

likewise hereby amended to read as follows:
“SECTION 3. Procurement Transparency Group. There

is hereby created a PROCUREMENT TRANSPARENCY
769
GROUP, headed by the GPPB and with following agencies

and non-government organizations as members:
a) Presidential Anti-Graft Commission;
b) National Economic and Development Authority;
c) Department of Justice;
d) Department of Budget and Management;
e) Department of the Interior and Local Government;
f) Five (5) NGOs/CSOs duly designated by the network of

CSOs involved in training procurement observers and/
or procurement reforms.”
“SECTION 5. The Group shall evaluate, comment on, record

and monitor procurement activities of NGAs, GOCCs, GFIs,
SUCs and LGUs based on mode of procurement, amount of
budget, volume, susceptibility to problems or anomalies and
importance of the project to the developmental objectives of
the country. For this purpose, the Group shall:
5.1 Strategically deploy trained observers to the BACs of

NGAs, GOCCs, GFIs, SUCs and LGUs which are in
charge for the procurement of these identified projects;
5.2 Call the attention of agency heads on potential non-

compliance with R.A. 9184 and its IRR-A;
5.3 Discuss and address issues and concerns gathered from

the procurement monitoring activities of observers;
5.4 Based on its findings, recommend measures to the

GPPB that will enhance transparency and streamline
the procurement process;
770
5.5 Furnish copies of its recommendations and findings

to the GPPB, the Office of the President, the Office of
the Executive Secretary, heads of agencies concerned
and such other agencies or offices as the Group may
determine;
5.6 Perform such other functions needed to further enhance

its monitoring capability and accountability”
“SECTION 6. All NGAs, GOCCs, GFIs, SUCs and LGUs,

through their BACs, are directed to cooperate and extend
assistance to the deployed observers and the Group.
“In furtherance of the objectives of this Executive Order, all

NGAs, GOCCs, GFIs, SUCs and LGUs are hereby directed
to make available on a timely basis to the Group, and the
general public, all procurement related information, except
those which are legally and judicially restricted.”
SECTION 3. All executive issuances or portions thereof

which are inconsistent with this Executive Order are hereby
revoked, amended or modified accordingly.
SECTION 4. This Executive Order shall take effect

immediately
DONE in the City of Manila, this 15th day of November in

the year of Our Lord, Two Thousand and Seven.

President
By the President:

Executive Secretary
771
EXECUTIVE ORDER NO. 662-B
AMENDING SECTION SEVEN OF EXECUTIVE ORDER

NO. 662 (SERIES OF 2007) ENTITLED ENHANCING
TRANSPARENCY MEASURES UNDER REPUBLIC
TRANSPARENCY BOARD
WHEREAS, Executive Order No. 662 (series of 2007) created

the Procurement Transparency Group to monitor compliance to anti-
graft mechanism, to deter anomalies in the awarding of public sector
contracts and to prevent losses due to procurement irregularities;
WHEREAS, Section 7 of Executive Order No. 662 directs

the Procurement Transparency Group to recommend to the
Presidential Anti-Graft Commission the imposition of sanctions,
implementation of remedial measures and the filing of criminal,
civil and/or administrative charges and provide information for
actions that may be taken on its recommendations;
WHEREAS, there is a need to simplify the legal process in

the determination and implementation of sanctions and the filing
of criminal, civil and/or administrative charges against those that
violate the directives of Republic Act 9184 of the Government
Procurement Reform Act and Executive Order 662 (series of 2007);
WHEREAS, Section 17, Article VII of the Constitution

provides that the President shall have control of all executive
departments, bureaus and offices and shall ensure that all laws be
faithfully executed;

President of the Republic of the Philippines, by virtue of the power
SECTION 1. Amendment. - Section 7 of Executive Order No.

662 dated September 20, 2007 is hereby further amended to read as
follows:
772
“SECTION 7. Upon findings of non-compliance with the

foregoing directives, the Group shall recommend to the
Office of the Ombudsman the filing of criminal, civil and/or
administrative charges.”
SEC. 2. Repealing Clause. - All executive issuances

inconsistent with this Executive Order are hereby repealed or
amended accordingly.

immediately.
Done in the City of Manila, this 16th day of May, 2008.

By the President:

Executive Secretary
773

TO SPEED UP THE PROCESSING OF CASES OF THE
PRESIDENTIAL ANTI-GRAFT COMMISSION
WHEREAS, there is a need to demonstrate firm resolve in

the anti-corruption campaign;
WHEREAS, by virtue of Executive Order No. 12 dated April

16, 2001 as amended by Executive Order No. 531 dated May 31, 2006
as well as by Executive Order Nos. 531-A and 531-B, the Presidential
Anti-Graft Commission (PAGC) was created to assist the President
in the campaign against graft and corruption by investigating or
hearing administrative cases against all presidential appointees in
the government and submitting its report or recommendation to the
President;
WHEREAS, in order to speed up and streamline the

investigation, hearing and resolution of cases involving presidential
appointees, there is a need to give adjudicatory powers to the
PAGC;
NOW, THEREFORE, I, GLORIA M. ARROYO, President of

the Republic of the Philippines, by virtue of the powers vested in
me by the Constitution and the law, do hereby order the following
amendments to Executive Order No. 531, series of 2006:
SECTION 1. Section 2, paragraph (a) shall heretofore read

as follows:
The Commission shall have the power, on complaint or

motu proprio, and concurrent with the Office of the Ombudsman,
to investigate, receive, gather and evaluate evidence, intelligence
reports and information on or hear and decide administrative cases
against all Presidential appointees in the Executive Branch of the
government and any of its agencies or instrumentalities occupying
774
the position of Assistant Regional Director or an equivalent rank,

and higher, otherwise classified as Salary Grade “26” and higher,
under the Compensation and Position classification of 1989
(Republic Act No. 6758) including members of the governing board
of any instrumentality, regulatory agency, chartered institution,
and directors or officers appointed or nominated by the President to
government-owned or controlled corporations or corporations where
the government, hereinafter referred to as “covered Presidential
appointees,” as well as other public officers and employees,
and private persons, in conspiracy or connivance with covered
Presidential appointees, for acts or omissions constituting violations
of any of the following:
(1) Republic Act No. 3019, as amended, otherwise known as

the “Anti-Graft and Corrupt Practices Act”;
(2) Republic Act No. 1379 on the unlawful acquisitions of

(3) Republic Act No. 6713, otherwise known as the

Employees”;
(4) And provisions under Title Seven, Book Two of the

Revised Penal Code;
(5) Executive Order No. 292, series of 1987, otherwise

known as the “Administrative Code of 1987”, whenever it defines
and imposes administrative sanctions on acts and omissions
constituting violations of the foregoing laws and issuances;
(6) Rules and regulations duly promulgated by competent

authority to implement any of the foregoing laws and issuances;
and
(7) Other violations as may be referred to the Commission

by the President of the Philippines.
775
SEC. 2. Section 2, paragraph (c) shall heretofore read as

follows:
The Commission shall, on complaint or motu proprio, have

the authority to administrative adjudicate on the merits, all cases
falling within its jurisdiction upon sufficient cause. All decisions of
the Commission shall be rendered en banc and shall state, among
others, the factual findings, legal conclusions and the appropriate
administrative penalties imposed.
Such decisions shall become final and executory unless

appealed to the President by filing a Notice of Appeal with the
Office of the President within thirty (30) days from receipt thereof
by the respondent in accordance with the procedure set forth in
Administrative Order No. 18, series of 1987.
SEC. 3. Section 2, paragraph (d) shall heretofore read as

follows:
The Commission shall have the Complaints and Investigation

Unit (CIU), to be headed by a lawyer appointed by the Commission,
which shall investigate all complaints/cases against all covered
Presidential appointees. The CIU shall keep a record of all cases
filed with the Commission, monitor their status and disposition, and
shall make a quarterly report to the Commission on the progress
thereof. In the conduct of its investigation, the CIU Head shall
designate a panel of investigators preferably composed of three (3)
lawyer-members, headed by a Chairman who shall conduct hearings
and render a report of their findings and recommendation to the
Commission en banc. In investigating complaints on disciplinary
cases, the Panel of Investigators shall observe closely pertinent
provisions of the Administrative Code of 1987 (EO 292), CSC rules
and regulations and other applicable related laws, and shall submit
its findings and recommendations to the Commission, through
the CIU Head, within fifteen (15) days from the conclusion of the
investigation.
776
SEC. 4. Section 2, paragraph (e) shall heretofore read as

follows:
Within fifteen days from receipt of the recommendation by

the CIU, the Commission en banc shall resolve or decide the case
submitted before it.
SEC. 5. Section 2, paragraph (f) shall heretofore read as

follows:
Upon the filing of a complaint or charge, the commission may

issue an Order of Preventive Suspension against covered Presidential
Appointees, when the circumstances of the investigation warrant
the same, as when the charges are punishable with removal from
service or when respondent’s continued stay in office would prejudice
the fair determination of the case. The preventive suspension shall
continue until the case is terminated by the Commission but in no
case shall exceed a maximum of ninety (90) days, except when the
delay in the disposition of the case is due to the fault, negligence or
petition of the respondent, in which case the period of such delay
shall not be counter in computing the period of suspension. The
Order of Preventive Suspension shall take effect immediately upon
receipt thereof by the respondents unless set aside or modified by
the President.
SEC. 6. Section 3 shall heretofore read as follows:
Power to Summon Government Personnel and Records and

to Administer Oaths. - Pursuant to its power to investigate and
adjudicate, the commission shall have the power to administer oaths
and summon or subpoena government personnel and records.
Effect of Non-Compliance with Summons. - Any unreasonable

delay or refusal of a public officer or employee in the Executive
Branch to comply with the summons or subpoenas issued by the
777
Commission shall constitute a ground for administrative disciplinary

action which shall be heard and adjudicated by the Commission
separately from the investigation or administrative case relative to
which the summons or subpoenas were issued. The Commission en
banc may, for this purpose, also file the appropriate criminal charge
or complaint against erring public officer or employee before the
appropriate bodies, courts or tribunals.
Disclosures. - The commission and its personnel shall not

disclose or make public any record or information in connection
with any investigation pending its decision thereon and when
such disclosures would deprive the respondent of his/her right to
a fair and impartial disposition of the case. Only the chairperson
may disclose any information to the public; provided that any such
disclosure shall be balanced, fair and accurate.
Transitory Provision. - Upon effectivity of this Executive

Order, all cases involving Presidential Appointees or otherwise
within the jurisdiction of the commission which are pending before
the Office of the President shall be immediately remanded to the
Commission for appropriate disposition by the Commission in
accordance with the provisions thereof.
SEC. 10. Section 2, paragraphs (e), (f), (g), (h), (i), (j), (k)
shall heretofore be renumbered as paragraphs (g), (h), (i), (j), (k), (l)
and (m), respectively.
Sections 7, 8 and 9, shall heretofore be renumbered as

Sections 9, 10 and 11, respectively.
SEC. 12. Repealing Clause. - All orders, rules and regulations

and issuances or parts thereof inconsistent with this Executive
Order are hereby repealed, amended or modified, accordingly.
778
SEC. 13. Effectivity. - This Executive Order shall take

effect immediately after publication in a newspaper of general
circulation.
Done in the City of Manila this 22nd of October, 2007.
(Sgd.) GLORIA M. ARROYO

BY THE PRESIDENT:
(Sgd.) IGNACIO R. BUNYE

779
AMENDING EXECUTIVE ORDER NO. 670, SERIES OF 2007 TO

DELINEATE THE ADJUDICATORY POWERS OF THE
‘PRESIDENTIAL ANTI-GRAFT COMMISSION’
WHEREAS, to fairly expedite the disposition and resolution

of cases under investigation by the Presidential Anti-Graft
Commission, there is a need to delineate the adjudicatory powers in
it vested under Executive Order No. 670, Series of 2007;

President of the Republic of the Philippines, by virtue of the powers vested in
me by the Constitution and the law, do hereby order the following amendment
to Executive Order No. 670, Series of 2007;
SECTION 1. Section 2, paragraph (c) shall heretofore read as

follows:
The Commission, in behalf of the Office of the President, shall have

the authority to conduct proceedings on all cases falling within its jurisdiction
upon sufficient cause. All decisions of the Commission shall be rendered en
banc and shall state, among others, the factual findings, legal conclusions and
the appropriate administrative penalties imposed.
Such decisions shall be submitted to the President for appropriate

action.
SEC. 2. All orders, rules and regulations and issuances or parts

thereof inconsistent with this Executive Order are hereby repealed, amended
or modified accordingly.
780
SEC. 3. This Executive Order shall take effect immediately after

publication in a newspaper of general circulation.
Done in the City of Manila, Philippines, this 23rd day of April 2008.

By the President:

Executive Secretary
781
DESIGNATING THE DEPUTY EXECUTIVE SECRETARY FOR

LEGAL AFFAIRS (DESLA) AS ADDITIONAL MEMBER OF
THE PRESIDENTIAL ANTI-GRAFT COMMISSION (PAGC)
CREATED UNDER EXECUTIVE ORDER NO. 12, SERIES
OF 2001, AS AMENDED
WHEREAS, the Presidential Anti-Graft Commission

(PAGC) has been strengthened several times to demonstrate the
government’s firm resolve to intensify its anti-corruption efforts;
WHEREAS, there is a need to further strengthen the

investigation and adjudication of complaints of graft and corruption
within the bureaucracy;
WHEREAS, pursuant to Memorandum Order No. 295 dated

February 2, 2009, the Office of the Deputy Executive Secretary for
Legal Affairs (ODESLA) was primarily tasked, inter alia, to head
the Complaints and Investigation Unit (CIU) of the Internal Affairs
and Complaints Committee (IACC) in the Office of the President;
and
WHEREAS, there is a need to streamline the legal processes

involving PAGC and the Legal Office in the Office of the President
to ensure efficient, timely and coordinated action on administrative
cases filed;
NOW THEREFORE, I, GLORIA MACAPAGAL-ARROYO,

vested in me by the Constitution and existing laws, do hereby order
and direct:
SECTION 1. Section 2 of Executive Order No. 12 is hereby

further amended to include the Deputy Executive Secretary for
Legal Affairs (DESLA) of the Office of the President as ex-officio
Commissioner.
782
SEC. 2. All Executive Orders, rules, regulations and other

issuances or parts thereof which are inconsistent with the provisions
of this Executive Order are hereby repealed, amended or otherwise
modified accordingly.

after it has been published in a newspaper of general circulation.
DONE in the City of Manila, Philippines this 30th day of

October, 2009

By the President:

Executive Secretary
783
CREATING THE
PHILIPPINE TRUTH COMMISSION OF 2010
WHEREAS, Article XI, Section 1 of the 1987 Constitution of

the Philippines solemnly enshrines the principle that a public office
is a public trust and mandates that public officers and employees,
who are servants of the people, must at all times be accountable to
the later, serve them with utmost responsibility, integrity, loyalty
and efficiency, act with patriotism and justice, and lead modest
lives;
WHEREAS, corruption is among the most despicable acts of

defiance of this principle and notorious violation of this mandate;
WHEREAS, corruption is an evil and scourge which seriously

affects the political, economic, and social life of a nation; in a very
special way it inflicts untold misfortune and misery on the poor, the
marginalized and underprivileged sector of society;
WHEREAS, corruption in the Philippines has reached very

alarming levels, and undermined the people’s trust and confidence
in the Government and its institutions;
WHEREAS, there is an urgent call for the determination of

the truth regarding certain reports of large scale graft and corruption
in the government and to put a closure to them by the filing of the
appropriate cases against those involved, if warranted, and to deter
others from committing the evil, restore the people’s faith and
confidence in the Government and in their public servants;
WHEREAS, the President’s battlecry during his campaign

for the Presidency in the last elections “kung walang corrupt, walang
mahirap” expresses a solemn pledge that if elected, he would end
corruption and the evil it breeds;
WHEREAS, there is a need for a separate body dedicated

solely to investigating and finding out the truth concerning
784
the reported cases of graft and corruption during the previous

administration, and which will recommend the prosecution of the
offenders and secure justice for all;
WHEREAS, Book III, Chapter 10, Section 31 of Executive

Order No. 292, otherwise known as the Revised Administrative Code
of the Philippines, gives the President the continuing authority to
reorganize the Office of the President.
NOW, THEREFORE, I, BENIGNO SIMEON AQUINO III,

SECTION 1. Creation of a Commission. – There is hereby

created the PHILIPPINE TRUTH COMMISSION, hereinafter
referred to as the “COMMISSION”, which shall primarily seek
and find the truth on, and toward this end, investigate reports of
graft and corruption of such scale and magnitude that shock and
offend the moral and ethical sensibilities of the people, committed
by public officers and employees, their co-principals, accomplices
and accessories from the private sector, if any, during the previous
administration; and thereafter recommend the appropriate action
or measure to be taken thereon to ensure that the full measure of
justice shall be served without fear or favor.
The Commission shall be composed of a Chairman and four

(4) members who will act as an independent collegial body.
SECTION 2. Powers and Functions. – The Commission,

which shall have all the powers of an investigative body under
Section 37, Chapter 9, Book I of the Administrative Code of 1987,
is primarily tasked to conduct a thorough fact-finding investigation
of reported cases of graft and corruption referred to in Section 1,
involving third level public officers and higher, their co-principals,
accomplices and accessories from the private sector, if any, during
the previous administration and thereafter submit its findings and
recommendations to the President, Congress and the Ombudsman.
In particular, it shall:
785
a) Identify and determine the reported cases of such graft

and corruption which it will investigate;
b) Collect, receive, review and evaluate evidence related

to or regarding the cases of large scale corruption which it has
chosen to investigate, and to this end require any agency, official or
employee of the Executive Branch, including government-owned or
controlled corporations, to produce documents, books, records and
other papers;
c) Upon proper request or representation, obtain information

and documents from the Senate and the House of Representatives
records of investigations conducted by committees thereof relating
to matters or subjects being investigated by the Commission;
d) Upon proper request and representation, obtain

information from the courts, including the Sandiganbayan and
the Office of the Court Administrator, information or documents
in respect to corruption cases filed with the Sandiganbayan or the
regular courts, as the case may be.
e) Invite or subpoena witnesses and take their testimonies

and for that purpose, administer oaths or affirmations as the case
may be;
f) Recommend, in cases where there is a need to utilize

any person as a state witness to ensure that the ends of justice be
fully served, that such person who qualifies as a state witness under
the Revised Rules of Court of the Philippines be admitted for that
purpose;
g) Turn over from time to time, for expeditious prosecution,

to the appropriate prosecutorial authorities, by means of a special
or interim report and recommendation, all evidence on corruption
of public officers and employees and their private sector co-
principals, accomplices or accessories, if any, when in the course
of its investigation the Commission finds that there is reasonable
ground to believe that they are liable for graft and corruption under
pertinent applicable laws;
786
h) Call upon any government investigative or prosecutorial

agency such as the Department of Justice or any of the agencies
under it, and the Presidential Anti-Graft Commission, for such
assistance and cooperation as it may require in the discharge of its
functions and duties;
i) Engage or contract the services of resource persons,

professionals and other personnel determined by it as necessary to
carry out its mandate;
j) Promulgate its rules and regulations or rules of

procedure it deems necessary to effectively and efficiently carry
out the objectives of this Executive Order and to ensure the orderly
conduct of its investigations, proceedings and hearings, including
the presentation of evidence.
k) Exercise such other acts incident to or are appropriate

and necessary in connection with the objectives and purposes of this
Order.
SECTION 3. Staffing Requirements. – The Commission shall

be assisted by such assistants and personnel as may be necessary to
enable it to perform its functions, and shall formulate and establish
its organizational structure and staffing pattern composed of such
administrative and technical personnel as it may deem necessary
to efficiently and effectively carry out its functions and duties
prescribed herein, subject to the approval of the Department of
Budget and Management. The officials of the Commission shall in
particular include, but not limited to, the following:
a. General Counsel
b. Deputy General Counsel
c. Special Counsel
d. Clerk of the Commission
787
SECTION 4. Detail of Employees. – The President, upon

recommendation of the Commission, shall detail such public officers
or personnel from other departments or agencies which may be
required by the Commission. The detailed officers and personnel
may be paid honoraria and/or allowances as may be authorized
by law, subject to pertinent accounting and auditing rules and
procedures.
SECTION 5. Engagement of Experts. – The Truth

Commission shall have the power to engage the services of experts
as consultants or advisers as it may deem necessary to accomplish
its mission.
SECTION 6. Conduct of Proceedings. – The proceedings of

the Commission shall be in accordance with the rules promulgated
by the Commission. Hearings or proceedings of the Commission
shall be open to the public. However, the Commission, motu propio,
or upon the request of the person testifying, hold an executive or
closed-door hearing where matters of national security or public
safety are involved or when the personal safety of the witness
warrants the holding of such executive or closed-door hearing. The
Commission shall provide the rules for such hearing.
SECTION 7. Right To Counsel of Witnesses/Resource

Persons. – Any person called to testify before the Commission shall
have the right to counsel at any stage of the proceedings.
SECTION 8. Protection of Witnesses/Resource Persons.

– The Commission shall always seek to assure the safety of the
persons called to testify and, if necessary make arrangements to
secure the assistance and cooperation of the Philippine National
Police and other appropriate government agencies.
SECTION 9. Refusal to Obey Subpoena, Take Oath or

Give Testimony. – Any government official or personnel who,
without lawful excuse, fails to appear upon subpoena issued by
the Commission or who, appearing before the Commission refuses
to take oath or affirmation, give testimony or produce documents
788
for inspection, when required, shall be subject to administrative

disciplinary action. Any private person who does the same may be
dealt with in accordance with law.
SECTION 10. Duty to Extend Assistance to the Commission.

– The departments, bureaus, offices, agencies or instrumentalities
of the Government, including government-owned and controlled
corporations are hereby directed to extend such assistance and
cooperation as the Commission may need in the exercise of its
powers, execution of its functions and discharge of its duties and
responsibilities with the end in view of accomplishing its mandate.
Refusal to extend such assistance or cooperation for no valid or
justifiable reason or adequate cause shall constitute a ground for
disciplinary action against the refusing official or personnel.
SECTION 11. Budget for the Commission. – The Office of

the President shall provide the necessary funds for the Commission
to ensure that it can exercise its powers, execute its functions, and
perform its duties and responsibilities as effectively, efficiently and
expeditiously as possible.
SECTION 12. Office. – The Commission may avail itself of

such office space which may be available in government buildings
accessible to the public after coordination with the department or
agencies in control of said building or, if not available, lease such
space as it may require from private owners.
SECTION 13. Furniture/Equipment. – The Commission

shall also be entitled to use such equipment or furniture from the
Office of the President which are available. In the absence thereof,
it may request for the purchase of such furniture or equipment b the
Office of the President.
SECTION 14. Term of the Commission. – The Commission

shall accomplish its mission on or before December 31, 2012.
SECTION 15. Publication of Final Report. – On or before

December 31, 2012, the Commission shall render a comprehensive
789
final report which shall be published upon directive of the President.

Prior thereto, also upon directive of the President, the Commission
may publish such special interim reports it may issue from time to
time.
SECTION 16. Transfer of Records and Facilities of the

Commission. – Upon the completion of its work, the records of
the Commission as well as its equipment, furniture and other
properties it may have acquired shall be returned to the Office of
the President.
SECTION 17. Special Provision Concerning Mandate. – If

and when in the judgment of the President there is a need to expand
the mandate of the Commission as defined in Section 1 hereof
to include the investigation of cases and instances of graft and
corruption during the prior administrations, such mandate may be
extended accordingly by way of a supplemental Executive Order.
SECTION 18. Reparability Clause. If any provision of this

Order is declared unconstitutional, the same shall not affect the
validity and effectivity of the other provisions hereof.
SECTION 19. Effectivity. This Executive Order shall take

effect immediately.
DONE in the City of Manila, Philippines, this 30th day of

July 2010.
(Sgd) BENIGNO S. AQUINO III

President
By the President:
PAQUITO N. OCHOA, JR.

Executive Secretary
790
RECALLING, WITHDRAWING, AND REVOKING APPOINTMENTS

ISSUED BY THE PREVIOUS ADMINISTRATION IN
VIOLATION OF THE CONSTITUTIONAL BAN ON
MIDNIGHT APPOINTMENTS, AND FOR OTHER
PURPOSES
WHEREAS, Sec. 15, Article VII of the 1987 Constitution

provides that “Two months immediately before the next presidential
elections and up to the end of his term, a President or Acting President
shall not make appointments, except temporary appointments to
executive positions when continued vacancies therein will prejudice
public service or endanger public safety.”;
WHEREAS, in the case of “ In re: Appointments dated

March 30, 1998 of Hon. Mateo Valenzuela, and Hon, Vallarta,
as Judges of the Regional Trial Court of Branch 62 of Bago
City and Branch 24 of Cabanatuan City, respectively” (AM
no. 98-5-01-SC Nov. 9, 1998), the Supreme Court interpreted
this provision to mean that the President is neither required to
make appointments nor allowed to do so during the two months
immediately before the next presidential elections and up to the end
of her term. The only known exceptions to this prohibition are (1)
temporary appointments in the executive positions when continued
vacancies will prejudice public service or endanger public safety and
in the light of the recent Supreme Court decision in the case of, De
Castro, et. al. vs. JBC and PGMA G.R No. 191002, 17 March 2010,
(2) appointments to the Judiciary;
WHEREAS, Section 261 of the Omnibus Election Code

provides that:
“Section 261. Prohibited Acts. – The following shall be guilty

of an election offense:
(g) Appointments of new employees, creation of new

position, promotion, or giving salary increases. – During the
791
period of forty-five days before a regular election and thirty days

before a special election.
(1) Any head, official or appointing officer of a government

office, agency or instrumentaility, whether national or local, including
government-owned or controlled corporations, who appoints or
hires any new employee, whether provisional, temporary or casual,
or creates and fills any new position, except upon prior authority
to the Commission. The Commission shall not grant the authority
sought unless, it is satisfied that the position to be filled is essential
to the proper functioning of the office or agency concerned, and that
the position shall not be filled in a manner that may influence the
election.
As an exception to the foregoing provisions, a new employee

may be appointed in the case of urgent need:
Provided, however, that notice of the appointment shall

be given to the Commission within three days from the date of
the appointment. Any appointment or hiring in violation of this
provision shall be null and void.
(2) Any government official who promotes or gives any

increase of salary or remuneration or privilege to any government
official or employee, including those in government-owned or
controlled corporations”
WHEREAS, it appears on record that a number of

appointments were made on or about 10 March 2010 in complete
disregard of the intent and spirit of the constitution ban on midnight
appointment and which deprives the new administration of the
power to make its own appointment.
WHEREAS, based on established jurisprudence, an

appointment is deemed complete only upon acceptance of the
appointee;
WHEREAS, in order to strengthen the civil service system,

it is necessary to uphold the principle that appointments to the civil
792
service system must be made on the basis of merit and fitness, it is

imperative to recall, withdraw, and revoke all appointments made
in violation of the letter and spirit of the law;
NOW, THEREFORE, I, BENIGNO S. AQUINO III, by virtue

of the powers vested in me by the Constitution as President of the
Philippines, do hereby order and direct that:
SECTION 1. Midnight Appointments Defined. – The following

appointments made by the former President and other appointing
authorities in departments, agencies offices, and instrumentalities,
including government-owned or controlled corporations, shall be
considered as midnight appointments:
(a) Those made on or after March 11, 2010, including all

appointments bearing dates prior to March 11, 2010 where the
appointee has accepted, or taken his oath, or assumed public office
on or after March 11, 2010, except temporary appointments in the
executive positions when continued vacancies will prejudice public
service or endanger public safety as may be determined by the
appointing authority.
(b) Those made prior to March 11, 2010, but to take effect
after said date or appointments to office that would be vacant only
after March 11, 2010.
(c) Appointments and promotions made during the period

of 45 days prior to the May 10, 2010 elections in violation of Section
261 of the Omnibus Election Code.
SECTION 2. Recall, withdraw, and Revocation of Midnight

Appointments. Midnight appointments, as defined under Section 1,
are hereby recalled, withdraw, and revoked. The positions covered
or otherwise affected are hereby declared vacant.
SECTION 3. Temporary designation. – When necessary

to maintain efficiency in public service and ensure the continuity
of government operations, the Executive Secretary may designate
793
an officer-in-charge (OIC ) to perform the duties and discharge the

responsibilities of any of those whose appointment has been recalled,
until the replacement of the OIC has been appointed and qualified.
SECTION 4. Repealing Clause. – All executive issuances,

orders, rules and regulations or part thereof inconsistent with the
provisions of this Executive Order are hereby repealed or modified
accordingly.
SECTION 5. Separability Clause. If any section or provision

of this executive order shall be declared unconstitutional or invalid,
the other sections or provision not affected thereby shall remain in
full force and effect.
SECTION 6. Effectivity. – This Executive order shall take

effect immediately.
Two Thousand and Ten.

President
By the President:
(Sgd.) PAQUITO N. OCHOA, JR.

Executive Secretary
794
ABOLISHING THE PRESIDENTIAL ANTI-GRAFT COMMISSION

AND TRANSFERRING ITS INVESTIGATIVE,
ADJUDICATORY AND RECOMMENDATORY FUNCTIONS
TO THE OFFICE OF THE DEPUTY EXECUTIVE
SECRETARY FOR LEGAL AFFAIRS, OFFICE OF THE
PRESIDENT
WHEREAS, this administration has a continuing mandate

and advocacy to fight and eradicate corruption in the different
departments, bureaus, offices and other government agencies and
instrumentalities;
WHEREAS, the government adopted a policy of streamlining

the government bureaucracy to promote economy and efficiency in
government;
WHEREAS, Section VII of the 1987 Philippine Constitution

provides that the President shall have control of all the executive
departments, bureaus and offices;
WHEREAS, Section 31 of Chapter 10, Title III, Book III of

Executive Order No. 292 (Administrative Code of 1987) provides
for the continuing authority to the President to reorganize the
administrative structure of the Office of the President;
WHEREAS, Presidential Decree (PD) No. 1416 (Granting

Continuing Authority to the President of the Philippines to Reorganize
the National Government), as amended by PD 1772 provides that
the President of the Philippines shall have continuing authority to
reorganize the administrative structure of the National government
and may, at his discretion, create, abolish, group, consolidate,
merge or integrate entities, agencies, instrumentalities and units
of the National Government, as well as, expand, amend, change or
otherwise modify their powers, functions and authorities;
795
LAWS AND EXECUTIVE ISSUANCES ON GOVERNMENT REORGANIZATION
WHEREAS, Section 78 of the General Provisions of Republic

Act No. 9970 (General Appropriations Act of 2010) authorizes the
President of the Philippines to direct changes in the organizational
units or key positions in any department or agency;
NOW, THEREFORE, I, BENIGNO S. AQUINO III, President

of the Philippines, by virtue of the powers vested in me by law do
hereby order the following:
SECTION 1. Declaration of Policy . It is the policy of the

government to fight and eradicate graft and corruption in the
different departments, bureaus, offices and other government
agencies and instrumentalities.
The government adopted a policy of streamlining the

government bureaucracy to promote economy and efficiency in the
government.
SECTION 2. Abolition of Presidential Anti-Graft Commission

(PAGC). To enable the Office of the President (OP) to directly
investigate graft and corruption cases of Presidential appointees
in the Executive Department including heads of government-
owned and controlled corporations, the Presidential Anti-Graft
Commission (PAGC) is hereby abolished and their vital functions
particularly the investigative, adjudicatory and recommendatory
functions and other powers and functions inherent or incidental
thereto, transferred to the Office of the Deputy Executive Secretary
for Legal Affairs (ODESLA), OP in accordance with the provisions
of this Executive Order.
SECTION 3. Restructuring of the Office of the Deputy

Executive Secretary for Legal Affairs, OP. In addition to the Legal
and Legislative Divisions of the ODESLA, the Investigative and
Adjudicatory Division shall be created.
The newly created Investigative and Adjudicatory Division

shall perform the powers, functions and duties mentioned in Section
2 hereof of PAGC.
796
EXECUTIVE
EXECUTIVE
ISSUANCES
ISSUANCES
– ADMINISTRATIVE
– EXECUTIVE ORDERS
ORDERS
The Deputy Executive Secretary for Legal Affairs (DESLA)

will be the recommending authority to the President thru the
Executive Secretary, for approval, adoption or modification of the
report and recommendations of the Investigative and Adjudicatory
Division of ODESLA.
SECTION 4. Personnel Who May Be Affected by the Abolition

of PAGC. The personnel who may be affected by the abolition of the
PAGC shall be allowed to avail of the benefits provided under existing
laws if applicable. The Department of Budget and Management
(DBM) is hereby ordered to release the necessary funds for the
benefits of the employees.
SECTION 5. Winding Up of the Operation and Disposition

of the Functions, Positions, Personnel, Assets and Liabilities of
PAGC. The winding up of the operations of PAGC, including the
final disposition or transfer of their functions, positions, personnel,
assets and liabilities as may be necessary, shall be in accordance with
the applicable provision of the Rules and Regulations Implementing
EO 12 (Rationalizing the Agencies Under or Attached to the Office
of the President) dated March 15, 2002. The winding up shall be
completed not later than 31 December 2010.
The Office of the Executive Secretary with the assistance

of the Department of Budget and Management, shall ensure the
smooth and efficient implementation of the dispositive actions and
winding-up of the activities of PAGC.
SECTION 6. Repealing Clause. All executive orders,

rules, regulations and other issuances or parts thereof which are
inconsistent with the provisions of this Executive Order, are hereby
revoked or modified accordingly.
SECTION 7. Effectivity. This Executive Order shall take

effect immediately after its publication in a newspaper of general
circulation.
797
DONE in the City of Manila, this 15th day of November, in

the year of our Lord, Two Thousand and Ten.

President
By the President:
(Sgd.) PAQUITO N. OCHOA, JR.

Executive Secretary
798
EXECUTIVE ISSUANCES – ADMINISTRATIVE ORDERS
ADMINISTRATIVE ORDER NO. 07
RULES OF PROCEDURE OF THE

OFFICE OF THE OMBUDSMAN
Pursuant to the authority vested in the Office of the

Ombudsman under Sections 18,23 and 27 of Republic Act No. 6770,
otherwise known as “The Ombudsman Act of 1989” the following
Rules of Procedure of the Office of the Ombudsman are hereby
prescribed and promulgated:
Rule 1
PRELIMINARY PROVISIONS
Section 1. Title. – These rules shall be known as the RULES

OF PROCEDURE OF THE OFFICE OF THE OMBUDSMAN.
Section 2. Coverage – These rules shall apply to all

criminal and administrative complaints, grievances or requests for
assistance and such other matters cognizable by the Office of the
Ombudsman.
Section 3. Form of complaints, grievances or requests for

assistance. – Complaints may be in any form, either verbal or in
writing. For a speedier disposition of the complaint, however, it is
preferable that it be in writing and under oath. A complaint which
does not disclose the identity of the complainant will be acted upon
only if it merits appropriate consideration, or contains sufficient
leads or particulars to enable the taking of further action.
Grievances or requests for an assistance may likewise be

verbal or in writing. In any case, the requesting or complaining
party must indicate his address and telephone number, if any.
799
Rule II
PROCEDURE IN CRIMINAL CASES
Section 1. Grounds – A criminal complaint may be brought

for an offense in violation of R.A. 3019, as amended, R.A. 1379 as
amended, R.A. 6713, Title VII, Chapter II, Section 2 of the Revised
Penal Code, and for such other offenses committed by public officers
and employees in relation to office.
Section 2. Evaluation – Upon evaluating the complaint, the

investigating officer shall recommend whether it may be:
a) dismissed outright for want of palpable merit;
b) referred to respondent for comment;
c) indorsed to the proper government office or agency
which has jurisdiction over the case;
d) forwarded to the appropriate office or official for fact-
finding investigation;
e) referred for administrative adjudication; or
f) subjected to a preliminary investigation.
Section 3. Preliminary investigation; who may conduct.

– Preliminary Investigation may be conducted by any of the
following:
1) Ombudsman Investigators;
2) Special Prosecuting Officers;
3) Deputized Prosecutors;
4) Investigating Officials authorized by law to conduct
preliminary investigation or
5) Lawyers in the government service, so designated by
the Ombudsman.
Section 4. Procedure – The preliminary investigation of

cases falling under the jurisdiction of the Sandiganbayan and
Regional Trial Courts shall be conducted in the manner prescribed
in Section 3, Rules 112 of the Rules of Court, subject to the following
provisions:
800
a) If the complaint is not under oath or is based only on

official reports, the investigating officer shall require the complainant
or supporting witnesses to execute affidavits to substantiate the
complaints.
b) After such affidavits have been secured, the investigating

officer shall issue an order, attaching thereto a copy of the affidavits
and other supporting documents, directing the respondents to
submit, within ten (10) days from receipt thereof, his counter-
affidavits and controverting evidence with proof of service thereof
on the complaint. The complainant may file reply affidavits within
ten (10) days after service of the counter-affidavits.
c) If the respondent does not file a counter-affidavit, the

investigating officer may consider the comment filed by him, if any,
as his answer to the complaint. In any event, the respondent shall
have access to the evidence on record.
d) No motion to dismiss shall be allowed except for lack

of jurisdiction. Neither may a motion for a bill of particulars be
entertained. If a respondent desires any matter in the complainant’s
affidavit to be clarified, the particularization thereof may be done
at the time of clarificatory questioning in the manner provided in
paragraph (f) of this section.
e) If the respondents cannot be served with the order

mentioned in paragraph 6 hereof, or having been served, does not
comply therewith, the complaint shall be deemed submitted for
resolution on the basis of the evidence on the record.
f) If, after the filing of the requisite affidavits and their

supporting evidences, there are facts material to the case which the
investigating officer may need to be clarified on, he may conduct a
clarificatory hearing during which the parties shall be afforded the
opportunity to be present but without the right to examine or cross-
examine the witness being questioned. Where the appearance of the
parties or witnesses is impracticable, the clarificatory questioning
may be conducted in writing, whereby the questions desired to be
801
asked by the investigating officer or a party shall be reduced into

writing and served on the witness concerned who shall be required
to answer the same in writing and under oath.
g) Upon the termination of the preliminary investigation,

the investigating officer shall forward the records of the case
together with his resolution to the designated authorities for their
appropriate action thereon.
No information may be filed and no complaint may be dismissed

without the written authority or approval of the Ombudsman in
cases falling within the jurisdiction of the Sandiganbayan, or of the
proper Deputy Ombudsman in all other cases.
Section 5. Cases falling under the jurisdiction of municipal

trial courts. – Cases falling under the jurisdiction of the Office of
the Ombudsman which are cognizable by municipal trial courts,
including those subject to the Rule on Summary Procedure may
only be filed in court by information approved by the Ombudsman
or the proper Deputy Ombudsman.
Section 6. Notice to parties – The parties shall be served

with a copy of the resolution as finally approved b the Ombudsman
or by the proper Deputy Ombudsman.
Section 7. Motion for reconsideration –

a) Only one motion for reconsideration or
reinvestigation of an approved order or
resolution shall be allowed, the same to be filled
within five (5) days from notice thereof with
the Office of the Ombudsman, or the proper
Deputy Ombudsman as the case may be, with
corresponding leave of court in cases where
information has already been filed in court;
b) The filing of a motion for reconsideration/

reinvestigation shall not bar the filing of the
corresponding information in Court on the
802
bases of the finding of probable cause in the

resolution subject of the motion. (As amended
by Administrative Order No. 15, dated February 16,
2000)
*RULE III
(*As Amended by Administrative Order No. 17,
September 7, 2003)
PROCEDURE IN ADMINSITRATIVE CASES
Section 1. Grounds for administrative complaint. – An

administrative complaint may be filed for acts or omissions which
are:
a) Contrary to law or regulations;
b) Unreasonable, unfair, oppressive or discriminatory;
c) Inconsistent with the general course of an agency’s
functions though in accordance with law;
d) Based on a mistake of law or an arbitrary ascertainment
of facts;
e) In the exercise of discretionary powers but for an
improper purpose;
f) Otherwise irregular, immoral or devoid of
justification;
g) Due to any delay or refusal to comply with the referral
or directive of the Ombudsman or any of his deputies
against the officer or employee to whom it was
addressed; and
h) Such other grounds provided for under E.O. 292 and
other applicable laws.
Section 2. Public officers covered; exceptions. – All elective

and appointive officials of the government and its subdivisions,
instrumentalities and agencies, including Members of the Cabinet,
local governments, government-owned or controlled corporations
and their subsidiaries are subject to the disciplinary authority of
the Office of the Ombudsman.
803
Excepted from the foregoing are Members of Congress, the

Judiciary, and officials removable only by impeachment: provided,
however, that the Office of the Ombudsman may investigate any
serious misconduct in office allegedly committed by the officials
removable only by impeachment for the purpose of filing a verified
complaint for impeachment, if warranted.
Section 3. How initiated. – An administrative case may

be initiated by a written complaint under oath accompanied by
affidavits of witnesses and other evidence in support of the charge.
Such complaint shall be accompanied by a Certification of Non-
Forum Shopping duly subscribed and sworn to by the complainant
or his counsel. An administrative proceeding may also be ordered
by the Ombudsman or the respective Deputy ombudsman on his
initiative or on the bases of a complaint originally filed as a criminal
action or a grievance complaint or request for assistance.
Section 4. Evaluation. – Upon receipt of the complaint, the

same shall be evaluated to determine whether the same may be:
a) dismissed outright for an of the grounds stated under

Section 20 of RA 6770, provided, however, that the dismissal thereof
is not mandatory and shall be discretionary on the part of the
Ombudsman or the Deputy Ombudsman concerned;
b) treated as a grievance/request for assistance which

may be referred to the Public Assistance Bureau, this Office, for
appropriate action under Section 2, Rule IV of this Rules;
c) referred to other disciplinary authorities under paragraph

2, Section 23, RA 6770 for the taking of appropriate administrative
proceedings;
d) referred to the appropriate office/agency or official for

the conduct of further fact-finding investigation; or
e) docketed as an administrative case for the purpose of

administrative adjudication by the Office of the Ombudsman.
804
Section 5. Administrative adjudication; How conducted. –

a) If the complaint is docketed as an administrative case,
the respondent shall be furnished with a copy of the affidavits and
other evidence submitted by the complainant, and shall be ordered
to file his counter-affidavits and other evidence in support of his
defense, within ten (10) days from receipt thereof, together with
proof of service of the same on the complainant who may file his
reply-affidavit within ten (10) days from receipt of the counter-
affidavit of the respondent;
b) If the hearing officer finds no sufficient cause to

warrant further proceedings on the basis of the affidavits and other
evidence submitted by the parties, the complaint may be dismissed.
Otherwise, he shall issue an Order (or Orders) for any of the following
purposes:
1. To direct the parties to file, within ten (10) days from

receipt of the Order, their respective verified position
papers. The position papers shall contain only those
charges, defenses and other claims contained in the
affidavits and pleadings filed by the parties. Any
additional relevant affidavits and/or documentary
evidence may be attached by the parties to their
position papers. On the basis of the position papers,
affidavits and other pleadings filed, the Hearing Officer
may consider the case submitted for resolution.
2. If the Hearing Officer decides not to consider the

case submitted for resolution after the filing of the
position papers, affidavits and pleadings, to conduct
a clarificatory hearing regarding facts material to the
case as appearing in the respective position papers,
affidavits and pleadings filed by the parties. At this
stage, he may, at his discretion and for the purpose of
determining whether there is a need for a formal trial
or hearing, ask clarificatory questions to further elicit
facts or information;
805
In the conduct of clarificatory hearings, the parties

shall be afforded the opportunity to be present but
without the right to examine or cross-examine the
party/witness being questioned. The parties may
be allowed to raise clarificatory questions and elicit
answers from the opposing party/witness, which shall
be coursed through the Hearing Officer who shall
determine whether or not the proposed questions are
necessary and relevant. In such cases, the Hearing
Officer shall ask the question in such manner and
phrasing as he may deem appropriate.
3. If the Hearing Officer finds no necessity for further

proceedings on the basis of the clarificatory hearings,
affidavits, pleadings and position papers filed by the
parties, he shall issue an Order declaring the case
submitted for resolution. The Hearing Officer may also
require the parties to simultaneously submit, within
ten (10) days from receipt of the Order, their Reply
Position Papers. The parties, if new affidavits and/
or exhibits are attached to the other party’s Position
Paper, may submit only rebutting evidence with their
Reply Position Papers.
4. If the Hearing Officer finds the need to conduct a

formal investigation on the basis of the clarificatory
hearings, pleadings, affidavits and the position papers
filed by the parties, an Order shall be issued for the
purpose. In the same Order, the parties shall be
required to file within ten (10) days from receipt of
the Order their respective pre-trial briefs, which shall
contain, among others, the nature of the charge(s) and
defenses, proposed stipulation of facts, a definition
of the issues, identification and marking of exhibits,
limitation of witnesses, and such other matters as
would expedite the proceedings. The parties are not
806
allowed to introduce matters in the pre-trial brief

which are not covered by the position papers, affidavits
and pleadings filed and covered by the position papers,
affidavits and pleadings filed and served prior to
issuance of the Order directing the conduct of a formal
investigation.
c) The conduct of formal proceedings by the Office of the

Ombudsman in administrative cases shall be non-litigious in nature.
Subject to the requirements of due process in administrative cases,
the technicalities of law, procedure and evidence shall not strictly
apply thereto. The Hearing Officer may avail himself of all reasonable
means to ascertain speedily the facts of the case. He shall take full
control of the proceedings, with proper regard to the right of the
parties to due process, and shall limit the presentation of evidence
to matters relevant to the issue(s) before him and necessary for a
just and speedy disposition of the case.
d) In the conduct of formal administrative investigation,

the Hearing Officer shall set the case for continuous trial. The
parties shall be notified at least ten (10) days before the date of the
initial hearing. Failure of any or both of the parties to appear at the
scheduled hearing(s) is not necessarily a cause for the dismissal of
the complaint. A party who appears may be allowed to present his
evidence in the absence of the adverse party who was duly notified of
the hearing; however, if the absent party is able to show that there
is a valid cause for his absence, he shall be afforded the opportunity
o cross-examine the witness(es) presented during his absence. In
case of two (2) successive unjustified non-appearances of any party
in the proceedings, it shall be the option of the party who is present
to submit the case for resolution on the basis of the records of the
case and the evidence so far presented;
e) Only witnesses whose affidavits have been submitted b

the parties and served on the adverse party prior to the issuance
of the Order directing the conduct of a formal investigation may be
allowed to testify at the hearing. The affidavit of any witness shall
constitute his direct testimony, subject to cross-examination, re-
807
direct examination and re-cross examination. Unless the testimony

of the witness involves newly discovered evidence, the Hearing
Officer may not allow the presentation of witnesses whose affidavits
have not been filed by the parties and served on the adverse party
prior to the issuance of the Order to conduct formal investigation.
If a witness whose testimony involves newly discovered evidence is
allowed to testify, the adverse party shall have the right to cross-
examine such witness and to submit rebuttal evidence, if any,
relevant to said newly discovered evidence.
f) The parties shall be allowed the assistance of counsel

and the right to the production of evidence thru the compulsory
process of subpoena and subpoena duces tecum.
g) The following pleadings shall be deemed prohibited in

the cases covered by these Rules:
1. Motion to dismiss, although any ground justifying the
dismissal of the case may be discussed in the counter-
affidavits/pleadings of the party;
2. Motion for bill of particulars; and
3. Dilatory motions including, but not limited to, motions
for extension of time, for postponement, second motions
for reconsideration and/or re-investigation.
Said pleadings shall be stricken off the records of the case.
Section 6. Rendition of decision. – Not later than thirty

(30) days after the case is declared submitted for resolution, the
Hearing Officer shall submit a proposed decision containing his
findings and recommendation for the approval of the Ombudsman.
Said proposed decision shall be reviewed by the Directors, Assistant
Ombudsmen and Deputy Ombudsmen concerned. With respect to
low ranking public officials, the Deputy Ombudsman concerned shall
be the approving authority. Upon approval, copies thereof shall be
served upon the parties and the head of the office or agency of which
the respondent is an official or employee for his information and
compliance with the appropriate directive contained therein.
808
Section 7. Finality and execution of decision. – Where the

respondent is absolved of the charge, and in case of conviction where
the penalty imposed is public censure or reprimand, suspension of
not more than one month, or a fine equivalent to one month salary,
the decision shall be final, executor and unappealable. In all other
cases, the decision may be appealed to the Court of Appeals on a
verified petition for review under the requirements and conditions
set forth in Rule 43 of the Rules of Court, within fifteen (15) days
from receipt of the written Notice of the Decision or Order denying
the Motion for Reconsideration.
An appeal shall not stop the decision from being executor. In

case the penalty is suspension or removal and the respondent wins
such appeal, he shall be considered as having been under preventive
suspension and shall be paid the salary and such other emoluments
that he did not receive by reason of the suspension or removal.
A decision of the Office of the Ombudsman in administrative

cases shall be executed as a matter of course. The Office of the
Ombudsman shall ensure that the decision shall be strictly enforced
and properly implemented. The refusal or failure by any officer
without just cause to comply with an order of the Office of the
Ombudsman to remove, suspend, demote, fine, or censure shall be a
ground for disciplinary action against said officer.
Section 8. Motion for reconsideration or reinvestigation:

Grounds – Whenever allowable, a motion for reconsideration or
reinvestigation may only be entertained if filed within ten (10) days
from receipt of the decision or order by the party on the basis of any
of the following grounds:
a) New evidence had been discovered which materially

affects the order, directive or decision;
b) Grave errors of facts or laws or serious irregularities

have been committed prejudicial to the interest of the
movant.
809
Only one motion for reconsideration or reinvestigation shall

be allowed, and the Hearing Officer shall resolve the same within
five (5) days from the date of submission for resolution.
Section 9. Preventive Suspension. – Pending investigation,

the respondent may be preventively suspended without pay if, in
the judgment of the ombudsman or his proper deputy, the evidence
of guilt is strong and (a) the charge against such officer or employee
involves dishonesty, oppression or gross misconduct, or gross neglect
in the performance of duty; or (b) the charge would warrant removal
from the service; or (c) the respondent’s continued stay in office may
prejudice the just, fair and independent disposition of the case filed
against him.
The preventive suspension shall continue until the case

is terminated; however, the total period of preventive suspension
should not exceed six months. Nevertheless, when the delay in the
disposition of the case is due to the fault, negligence or any cause
attributable to the respondent, the period of such delay shall not be
counted in computing the period of suspension herein provided.
Section 10. Penalties. – (a) In administrative charges

under Executive Order No. 292 or such other executive orders,
laws or rules under which the respondent is charged, the penalties
provided thereat shall be imposed by the Office of the Ombudsman
(b) in administrative proceedings conducted under these Rules, the
Office of the Ombudsman may impose the penalty of reprimand,
suspension without pay for a minimum period of one (1) month up
to a maximum period of one (1) year; demotion dismissal from the
service, or a fine equivalent to his salary for one (1) month up to
one (1) year, or from Five Thousand Pesos (P5,000,00) to twice the
amount malversed, illegally taken, or lost, or both, at the discretion
of the Ombudsman, taking into consideration circumstances that
mitigate or aggravate the liability of the officer or employee found
guilty of the complaint or charge.
The penalty of dismissal from the service shall carry with it

that of cancellation of eligibility, forfeiture of retirement benefits, and
810
the perpetual disqualification for re-employment in the government

service, unless otherwise provided in the decision.
This is without prejudice to the exercise of authority of the

Ombudsman to exercise his authority under Section 15 paragraph
(3) of RA 6770.
RULE IV
PROCEDURE IN GRIEVANCES/REQUEST FOR ASSISTANCE
Section 1. Grievance or request for assistance; nature of – A

grievance or request for assistance may consist of a complaint or
request seeking redress or relief concerning an act or omission of
public official or employee, office or agency alleged to be unreasonable,
unfair, oppressive, discriminatory, improper or inefficient, and
which does not necessarily amount to a criminal or administrative
offense.
Section 2. By whom handled. – Grievance or request for

assistance shall be acted upon by the Public Assistance Office in the
Central Office of the Ombudsman, o in the Office of the respective
Deputy Ombudsman.
Section 3. Action thereon. – A grievance or request for

assistance shall be acted upon immediately upon receipt.
a) Where the grievance or request for assistance appears

to be manifestly frivolous, vexatious, or made in bad
faith, or where it involves as matter purely between
private parties, the same may be dismissed outright
and the complainant/requesting party informed of the
reasons for such dismissal;
b) Where the redress, relief or assistance sought may be

acted upon by another office, the same may be referred
to the office concerned, with the Public Assistance
Office following it up in behalf of the complainant;
811
c) In all other cases which the Office of the Ombudsman

may take cognizance of the procedure in the following
section shall be observed.
Section 4. Procedure. –
a) If the grievance or request is relatively simple and/
or requires immediate action, the same may be acted
upon by telegram, telephone, or other means of
communication or given personal attention by going
to the office or agency concerned.
b) Whenever deemed necessary or advisable, a copy

of the grievance or request for assistance, together
with pertinent documents shall be sent to the public
official, employee or agency concerned, copy furnished
its head and the Resident Ombudsman, if any, for the
taking of immediate remedial action; or, if the relief
requested may not be complied with, to submit a
written explanation therefor.
c) If such explanation is found satisfactory, and/or

appropriate action had already been taken on the
grievance or request, the same shall be dismissed and
the parties informed accordingly.
d) The Public Assistance Office may arrange a conference

between the complainant/requesting party, and the
public official concerned with a view to a satisfactory
and expeditious resolution of the grievance/request.
e) Upon the consideration of the facts or information

gathered, a resolution on the grievance or request
shall be made within two (2) days of which the parties
shall be notified, and appropriate steps taken to insure
compliance therewith.
812
Section 5. Effect of non-compliance. Any delay or refusal to

comply with the referral or directive of the Ombudsman or any of the
deputies shall constitute a ground for administrative disciplinary
action against the office or employee to whom it was addressed
pursuant to Section 25, paragraph (4) of R.A. 6770.
RULE V
GENERAL PROVISIONS
Section 1. Immunity from prosecution. –

a) Any person whose testimony or production of documents
or other evidence is necessary to determine the truth in any
inquiry, hearing, or proceeding being conducted by the Office of
the Ombudsman or under its authority in the performance or
furthermore of its constitutional functions and statutory objectives,
including preliminary investigation, may be granted immunity from
criminal prosecution by the Ombudsman, upon such terms and
conditions as the Ombudsman may determine, taking into account
the pertinent provisions of the Rules of Court.
Such immunity may be granted upon application of the

concerned party, the investigating, hearing, or prosecuting officer,
or at the instance of the Ombudsman. Provided, however, that in
all cases, the concerned party shall execute an affidavit reciting the
substance of his proposed testimony and/or nature of the evidence
in his possession.
b) In all hearings, inquiries, and proceedings of the Office

of the Ombudsman, including preliminary investigation of the
offenses, no person subpoenaed to testify as a witness shall be
excused from attending and testifying or from producing books,
papers correspondence, memoranda and/or records on the ground
that the testimony or evidence, documentary or otherwise, required
of him may tend to incriminate him or subject him to prosecution:
Provided, that no person shall be prosecuted criminally for or on
account of any matter, concerning which he is compelled to testify
and produce evidence, after having claimed the privilege against
self-incrimination.
813
c) The grant of immunity from criminal prosecution under

the preceding paragraphs may be revoked upon proper notice in
the event that person granted immunity subsequently retracts his
statement, or fails or refuses to testify or produce evidence in court
in accordance with the sworn statement upon which his immunity
was granted.
Neither shall such grant of immunity exempt the party

concerned from criminal prosecution for perjury or false testimony,
nor shall he be exempt from demotion or removal from office.
Section 2. Public disclosure; exemption. – When

circumstances so warrant and with due prudence, the Office of the
Ombudsman may publicize in a fair and balanced manner the filing
of a complaint, grievance, or request for assistance, and the final
resolution, decision or action taken thereon: Provided, however,
That prior to such final action, no publicity shall be made of matters
which may adversely affect national security or public interest,
prejudice the safety of witnesses or the disposition of the case, or
unduly expose persons complained against to ridicule or public
censure.
Section 3. Rules of Court, application. – In all matters not

provided in these rules, the Rules of Court shall apply in a suppletory
character, or by analogy whenever practicable and convenient.
Section 4. Effectivity. – These rules shall take effect

following the completion of their publication in the Official Gazette
or in three (3) newspapers of general circulation in the Philippines,
one of which is printed in the national language.
They shall govern all cases brought after they take effect and
to further proceedings in cases then pending, except to the extent
that their application would not be feasible or would cause injustice
to any party.
814
Section 5. Separability clause. – If any provision of these

rules is held unconstitutional, other provisions not affected thereby
shall remain valid and binding.
Makati, Metro Manila, April 10, 1990.
(Sgd.) CONRADO M. VASQUEZ

Ombudsman
815
ADMINISTRATIVE ORDER NO. 10 (As Amended)

Series of 2001
GUIDELINES ON THE INSTALLATION OF

RESIDENT OMBUDSMAN (NON-ORGANIC)
In the interest of the service, and in accordance with the

authority vested in me by law and the constitution, all heads of
departments, offices and agencies of the government including
government-owned or controlled corporations, are hereby urged and
requested to cause the installation of a Resident Ombudsman in
their respective offices in accordance with the following rules and
guidelines.
Concept. – A Resident Ombudsman may be appointed for a

department, bureau, office, commission, government-owned or
controlled corporation or any unit of the national government, as
well as provincial, city or municipal governments.
1. By whom appointed. – the Resident Ombudsman

shall be appointed
a. By the Ombudsman or the Overall Deputy

Ombudsman for offices, agencies or entities in the
National Capital Region;
b. By the Deputy Ombudsmen for offices, agencies or

entities in their respective areas.
2. Procedure for appointment. – The appointment

shall be made from a list of at least three (3) nominees
submitted by the head of the office, agency or entity
concerned, who belong to the following categories:
a. First nominee representing the rank and file

employees’;
816
b. Second nominee representing the officials in

the supervisory level;
c. Third nominee representing all officials

and employees of the concerned agency
recommended by an accredited Corruption
Prevention Unit (CPU) or any recognized
Non-Government Organizations (NGOs) or
religious organization in the locality.
However, the Ombudsman or his Deputies,

on his own initiative, may appoint or
designate any official or employee of a
particular government office as Resident
Ombudsman of said agency and may revoke
said appointment motu propio. (N)
3. Qualifications. – The Resident Ombudsman must be

(a) in the active service of the office, agency, or entity
concerned; (b) of recognized probity, independence of
mind, and proven integrity and competence; and (c)
not be related or beholden to the head of the office,
agency or entity.
4. Term of office. – A Resident Ombudsman shall

serve for a term of two (2) years from the date of his
appointment or until his tenure is terminated by the
Ombudsman or his deputy.
5. Duties and functions. – A Resident Ombudsman

shall:
a. attend to requests for assistance filed directly with

the Office, or assigned to him by its head or by
the Office of the Ombudsman or by accredited
Corruption Prevention Units (CPUs) and
817
Junior Graftwatch Units (JGUs) and expedite

and facilitate action thereon;
b. Report anomalies, irregular acts, unethical conduct

or illegal activities committed by the officials and
employees of the office;
c. Aid the Office of the Ombudsman in gathering

evidence in cases under investigation by the
latter;
d. Make a study of standing procedures and systems in

the office with a view to suggesting improvements
therein, or recommending changes in the same
as would prevent the incidence of graft and other
irregularities perceived to have been facilitated b
the existing systems and procedures.
e. Perform such other functions as may be assigned

to him by the Offfice of the Ombudsman;
f. Submit an accomplishment/progress report to the

Office of the Ombudsman at least once a month, or
oftener as circumstances may require. The report
should not be coursed thru the head or any other
official of the office.
6. Powers. – All Resident Ombudsmen are hereby

deputized as Ombudsman investigators with authority
to conduct fact-finding inquiries in matters falling
within their above-mentioned functions and, for such
purpose, shall be deemed empowered to issue subpoena
and subpoena duces tecum.
7. Status of Incumbent Resident Ombudsman. – All

Resident Ombudsmen shall continue in such capacity
818
until replaced by a successor appointed in accordance

with this Administrative Order.
The Office of the Ombudsman strongly urges full

cooperation and prompt compliance with the foregoing
directives which are assigned primarily to implement
and give reality to the constitutional precept that
“public office is a public trust”.
8. Effectivity. – This Administrative Order shall take

effect upon completion of its publication in a newspaper
of general circulation. (N)
This Administrative Order as amended shall supersede,

modify or repeal all other previous issuances to the
Resident Ombudsman, Non-Organic Program. (N)
Manila, Philippines, January 4, 2001
(Sgd.) ANIANO A. DESIERTO

Ombudsman
819
ADMINISTRATIVE ORDER NO. 25
CREATING A PRESIDENTIAL COMMITTEE ON

PUBLIC ETHICS AND ACCOUNTABILITY
WHEREAS, to set the moral tone in promoting honesty,

integrity and accountability in public service, the Executive Branch of
the Government must lead in the pursuit of the common commitment
against graft and corruption by declaring a national policy thereon,
and creating a committee tasked with the implementation of such
policy;
WHEREAS, Article XVIII, Section 6 of the 1987 Constitution

provides, that: “The incumbent President shall continue to exercise
legislative powers until the first Congress is convened”;

SECTION 1. Declaration of Policy. – The Department

Secretary shall be directly responsible to the President in
eradicating graft and corruption in his Department and the offices,
agencies, government-owned or controlled corporations attached to
or under his Department. The Department Secretary shall likewise
be responsible to the President for the implementation of policies
and programs to minimize or prevent graft and corruption and to
promote the ethical standards of public service.
SECTION 2. Creation of a Presidential Committee on

Public Ethics and Accountability. – In the implementation of the
aforesaid policy, there is hereby created a Presidential Committee
on Public Ethics and Accountability, hereinafter referred to as the
Committee, to be composed of the following:
Cabinet Secretary Jose P. De Jesus - Chairman
Secretary Sedfrey Ordoñez - Member

Department of Justice
820
Secretary Carlos A. Dominguez - Member

Department of Agriculture
Secretary Vicente Jayme - Member

Department of Public Works
And Highways
Secretary Alfredo R.A. Bengzon - Member

Department of Health
Secretary Fulgencio S. Factoran, Jr. - Member

Department of Energy, Environment
And Natural Resources
Chairman Ramon Diaz, Jr. - Member

Presidential Commission on Good
Government
The other members of the Cabinet shall serve as Resource

Persons of the Committee.
The Committee shall assist the President and the Cabinet

in coordinating the efforts of the various Departments in combating
graft and corruption and in promoting the ethical standards of
public service in the Executive Branch of the Government.
The Committee shall meet at least once a month or as often

as the Chairman may deem it necessary.
The Office of the Cabinet Secretary shall provide the

technical and administrative support to this Committee. The Office
of the Cabinet Secretary may establish a Coordinating and Action
Center to be staffed by full time or detailed personnel as and when
the need for the same arises.
SECTION 3. Action Officers. – Each Department shall

designate its Action Officer to serve as its operational link to the
Committee on matters relating to this Administrative Order.
821
CODE OF JUDICIAL CONDUCT
PREAMBLE
An honourable, competent and independent judiciary exists

to administer justice and thus promote the unity of the country, the
stability of government, and the well-being of the people.
CANON 1
A JUDGE SHOULD UPHOLD THE INTEGRITY

AND INDEPENDENCE OF THE JUDICIARY
RULE 1.01 - A judge should be the embodiment of competence,

integrity and independence.
RULE 1.02 - A judge should administer justice impartially

and without delay.
RULE 1.03. - A judge should be vigilant against any attempt

to subvert the independence of the judiciary and resist any pressure
from whatever source.
CANON 2
A JUDGE SHOULD AVOID IMPROPRIETY AND THE

APPEARANCE OF IMPROPRIETY IN ALL ACTIVITIES
RULE 2.01 - A judge should so behave at all times as to

promote public confidence in the integrity and impartiality of the
judiciary.
RULE 2.02 - A judge should not seek publicity for personal

vainglory.
RULE 2.03 - A judge shall not allow family, social, or

other relationships to influence judicial conduct or judgment. The
prestige of judicial office shall not be used or lent to advance the
822
private interests of others, nor convey or permit others to convey the

impression that they are in a special position to influence the judge.
RULE 2.04 - A judge should refrain from influencing in any

manner the outcome of litigation or dispute pending before another
court or administrative agency.
CANON 3
A JUDGE SHOULD PERFORM OFFICIAL DUTIES HONESTLY,

AND WITH IMPARTIALITY AND DILIGENCE
ADJUDICATIVE RESPONSIBILITIES
RULE 3.01 - A judge shall be faithful to the law and maintain

professional competence.
RULE 3.02 - In every case, a judge shall endeavor diligently

to ascertain the facts and the applicable law unswayed by partisan
interests, public opinion or fear of criticism.
RULE 3.03 - A judge shall maintain order and proper

decorum in the court.
RULE 3.04 - A judge should be patient, attentive, and

courteous to lawyers, especially the inexperienced, to litigants,
witnesses, and others appearing before the court. A judge should
avoid unconsciously falling into the attitude of mind that the litigants
are made for the courts, instead of the courts for the litigants.
RULE 3.05 - A judge shall dispose of the court’s business

promptly and decide cases within the required periods.
RULE 3.06 - While a judge may, to promote justice, prevent

waste of time or clear up some obscurity, properly intervene in the
presentation of evidence during the trial, it should always be borne in
mind that undue interference may prevent the proper presentation
of the cause or the ascertainment of truth.
823
RULE 3.07 - A judge should abstain from making public

comments on any pending or impending case and should require
similar restraint on the part of court personnel.
ADMINISTRATIVE RESPONSIBILITIES
RULE 3.08 - A judge should diligently discharge

administrative responsibilities, maintain professional competence
in court management, and facilitate the performance of the
administrative functions or other judges and court personnel.
RULE 3.09 - A judge should organize and supervise the court

personnel to ensure the prompt and efficient dispatch of business,
and require at all times the observance of high standards of public
service and fidelity.
RULE 3.10 - A judge should take or initiate appropriate

disciplinary measures against lawyers or court personnel for
unprofessional conduct of which the judge may have become
aware.
RULE 3.11 - A judge should appoint commissioners, receivers,

trustees, guardians, administrators and others strictly on the basis
of merit and qualifications, avoiding nepotism and favoritism.
Unless otherwise allowed by law, the same criteria should be
observed in recommending appointment of court personnel. Where
the payment of compensation is allowed, it should be reasonable
and commensurate with the fair value of services rendered.
DISQUALIFICATION
RULE 3.12 - A judge should take no part in a proceeding

where the judge’s impartiality might reasonably be questioned.
These cases include among others, proceedings where:
(a) the judge has personal knowledge of disputed evidentiary

facts concerning the proceeding;
824
(b) the judge served as executor, administrator, guardian,

trustee or lawyer in the case or matter in controversy, or a former
associate of the judge served as counsel during their association, or
the judge or lawyer was a material witness therein;
(c) the judge’s ruling in a lower court is the subject of

review;
(d) the judge is related by consanguinity or affinity to a

party litigant within the sixth degree or to counsel within the fourth
degree;
(e) the judge knows the judge’s spouse or child has a financial
interest, as heir, legatee, creditor, fiduciary, or otherwise, in the
subject matter in controversy or in a party to the proceeding, or any
other interest that could be substantially affected by the outcome of
the proceeding.
In every instance, the judge shall indicate the legal reason

for inhibition.
REMITTAL OF DISQUALIFICATION
RULE 3.13 - A judge disqualified by the terms of rule 3.12

may, instead of withdrawing from the proceeding, disclose on the
record the basis of disqualification. If, based on such disclosure,
the parties and lawyers independently of judge’s participation, all
agree in writing that the reason for the inhibition is immaterial or
insubstantial, the judge may then participate in the proceeding. The
agreement, signed by all parties and lawyers, shall be incorporated
in the record of the proceeding.
825
CANON 5
A JUDGE SHOULD REGULATE EXTRA-JUDICIAL ACTIVITIES

TO MINIMIZE THE RISK OF CONFLICT WITH JUDICIAL
DUTIES
ADVOCATIONAL, CIVIC AND CHARITABLE ACTIVITIES
RULE 5.01 - A judge may engage in the following activities

provided that they do not interfere with the performance of judicial
duties or detract from the dignity of the court:
(a) write, lecture, teach and speak on non-legal subjects;
(b) engage in the arts, sports, and other special recreational

activities;
(c) participate in civic and charitable activities;
(d) serve as an officer, director, trustee, or non-legal advisor

of a non-profit or non-political educational, religious, charitable,
fraternal, or civic organization.
FINANCIAL ACTIVITIES
RULE 5.02 - A judge shall refrain from financial and

business dealings that tend to reflect adversely on the court’s
impartiality, interfere with the proper performance of judicial
activities or increase involvement with lawyers or persons likely to
come before the court. A judge should so manage investments and
other financial interests as to minimize the number of cases giving
grounds for disqualifications.
RULE 5.03 - Subject to the provisions of the proceeding rule,

a judge may hold and manage investments but should not serve as
officer, director, manager or advisor, or employee of any business
except as director of a family business of the judge.
826
RULE 5.04 - A judge or any immediate member of the family

shall not accept a gift, bequest, factor or loan from anyone except as
may be allowed by law.
RULE 5.05 - No information acquired in a judicial capacity

shall be sued or disclosed by a judge in any financial dealing or for
any other purpose not related to judicial activities.
FIDUCIARY ACTIVITIES
RULE 5.06 - A judge should not serve as the executor,

administrator, trustee, guardian, or other fiduciary, except for
the estate, trusts, or person of a member of the immediate family,
and then only if such service will not interfere with the proper
performance of judicial duties. “Member of immediate family” shall
be limited to the spouse and relatives within the second degree of
consanguinity. As a family, a judge shall not:
(1) serve in proceedings that might come before the court of

said judge; or
(2) act as such contrary to rules 5.02 to 5.05.
PRACTICE OF LAW AND OTHER PROFESSION
RULE 5.07 - A judge shall not engage in the private practice

of law. Unless prohibited by the Constitution or law, a judge may
engage in the practice of any other profession provided that such
practice will not conflict or tend to conflict with judicial functions.
FINANCIAL DISCLOSURE
RULE 5.08 - A judge shall make full financial disclosure as

required by law.
RULE 5.09 - A judge shall not accept appointment or

designation to any agency performing quasi-judicial or administrative
functions.
827
POLITICAL ACTIVITIES
RULE 5.10 - A judge is entitled to entertain personal views on

political questions. But to avoid suspicion of political partisanship,
a judge shall not make political speeches, contribute to party funds,
publicly endorse candidates for political office or participate in other
partisan political activities.
COMPLIANCE WITH THE CODE OF JUDICIAL CONDUCT
All judges shall strictly comply with this Code.
DATE OF EFFECTIVITY
This Code, promulgated on 5 September 1989, shall take

effect on 20 October 1989
828
EXECUTIVE ISSUANCES – CODES OF JUDICIAL CONDUCT
A.M. No. 03-05-01-SC
ADOPTING
THE NEW CODE OF JUDICIAL CONDUCT
FOR THE PHILIPPINE JUDICIARY
WHEREAS, at the Round Table Meeting of Chief Justice

held at the Peace Palace, The Hague, on 25-26 November 2002, at
which the Philippine Supreme Court was represented by the Chief
Justice and Associate Justice Reynato S. Puno, the Bangalore Draft
of the Code of Judicial Conduct adopted by the Judicial Group on
Strengthening Judicial Integrity was deliberated upon and approved
after incorporating therein several amendments;
WHEREAS, the Bangalore Draft, as amended, is intended

to be the Universal Declaration of Judicial Standards applicable in
all judiciaries;
WHEREAS, the Bangalore Draft is founded upon a

universal recognition that a competent, independent and impartial
judiciary is essential if the courts are to fulfil their role in upholding
constitutionalism and the rule of law; that public confidence in
the judicial system and in the moral authority and integrity of the
judiciary is of utmost importance in a modern democratic society;
and that it is essential that judges, individually and collectively,
respect and honor judicial office as a public trust and strive to
enhance and maintain confidence in the judicial system;
WHEREAS, the adoption of the universal declaration of

standards for ethical conduct of judges embodied in the Bangalore
Draft as revised at the Round Table Conference of Chief Justices at
The Hague is imperative not only to update and correlate the Code
of Judicial Conduct and the Canons of Judicial Ethics adopted for
the Philippines, but also to stress the Philippines’ solidarity with
the universal clamor for a universal code of judicial ethics.
829
NOW, THEREFORE, the Court hereby adopts this New

Code of Judicial Conduct for the Philippine Judiciary:
CANON 1
INDEPENDENCE
Judicial independence is a pre-requisite to the rule of law

and a fundamental guarantee of a fair trial. A judge shall therefore
uphold and exemplify judicial independence in both its individual
and institutional aspects.
SECTION 1. Judges shall exercise the judicial function

independently on the basis of their assessment of the facts and in
accordance with a conscientious understanding of the law, free of any
extraneous influence, inducement, pressure, threat or interference,
direct or indirect, from any quarter or for any reason.
SEC. 2. In performing judicial duties, Judges shall be

independent from judicial colleagues in respect of decisions which
the judge is obliged to make independently.
SEC. 3. Judges shall refrain from influencing in any manner

the outcome of litigation or dispute pending before another court or
administrative agency.
SEC. 4. Judges shall not allow family, social, or other

relationships to influence judicial conduct or judgment. The
prestige of judicial office shall not be used or lent to advance the
private interests of others, nor convey or permit others to convey
the impression that they are in a special position to influence the
judge.
SEC. 5. Judges shall not only be free from inappropriate

connections with, and influence by, the executive and legislative
branches of government, but must also appear to be free therefrom
to a reasonable observer.
830
SEC. 6. Judges shall be independent in relation to society in

general and in relation to the particular parties to a dispute which
he or she has to adjucate.
SEC. 7. Judges shall encourage and uphold safeguards for

the discharge of judicial duties in order to maintain and enhance
the institutional and operational independence of the judiciary.
SEC. 8. Judges shall exhibit and promote high standards of

judicial conduct in order to reinforce public confidence in the judiciary
which is fundamental to the maintenance of judicial independence.
CANON 2
INTEGRITY
Integrity is essential not only to the proper discharge of the

judicial office but also to the personal demeanor of judges.
SECTION 1. Judges shall ensure that not only is their

conduct above reproach, but that it is perceived to be so in the view
of a reasonable observer.
SEC. 2. The behaviour and conduct of judges must reaffirm

the people’s faith in the integrity of the judiciary. Justice must not
merely be done but must also be seen to be done.
SEC. 3. Judges should take or initiate appropriate disciplinary

measures against lawyers or court personnel for unprofessional
conduct of which the judge may have become aware.
CANON 3
IMPARTIALITY
Impartiality is essential to the proper discharge of the

judicial office. It applies not only to the decision itself but also to the
process by which the decision is made.
831
SECTION 1. Judges shall perform their judicial duties

without favor, bias or prejudice.
SEC. 2. Judges shall ensure that his or her conduct, both

in and out of court, maintains and enhances the confidence of the
public, the legal profession and litigants in the impartiality of the
judge and of the judiciary.
SEC. 3. Judges shall, so far as is reasonable, so conduct

themselves as to minimize the occasions on which it will be necessary
for them to be disqualified from hearing or deciding cases.
SEC. 4. Judges shall not knowingly, while a proceeding is

before, or could come before, them make any comment that might
reasonably be expected to affect the outcome of such proceeding or
impair the manifest fairness of the process. Nor shall judges make
any comment in public or otherwise that might affect the fair trial
of any person or issue.
SEC. 5. Judges shall disqualify themselves from participating

in any proceedings in which they are unable to decide the matter
impartially or in which it may appear to a reasonable observer that
they are unable to decide the matter impartially. Such proceedings
include, but are not limited to, instances where
a) The judge has actual bias or prejudice concerning a party

or personal knowledge of disputed evidentiary facts concerning the
proceedings;
b) The judge previously served as a lawyer or was a material

witness in the matter in controversy;
c) The judge, or a member of his or her family, has an

economic interest in the outcome of the matter in controversy;
d) The judge served as executor, administrator, guardian,

trustee or lawyer in the case or matter in controversy, or a former
832
associate of the judge served as counsel during their association, or

the judge or lawyer was a material witness therein;
e) The judge’s ruling in a lower court is the subject of

review;
f) The judge is related by consanguinity or affinity to a

party litigant within the sixth civil degree or to counsel within the
fourth civil degree; or
g) The judge knows that his or her spouse or child has a

financial interest, as heir, legatee, creditor, fiduciary, or otherwise,
in the subject matter in controversy or in a party to the proceeding,
or any other interest that could be substantially affected by the
outcome of the proceedings;
SEC. 6. A judge disqualified as stated above may, instead of

withdrawing from the proceeding, disclose on the records the basis of
disqualification. If, based on such disclosure, the parties and lawyers
independently of the judge’s participation, all agree in writing that
the reason for the inhibition is immaterial or unsubstantial, the
judge may then participate in the proceeding. The agreement, signed
by all parties and lawyers, shall be incorporated in the record of the
proceedings.
CANON 4
PROPRIETY
Propriety and the appearance of propriety are essential to

the performance of all the activities of a judge.
SECTION 1. Judges shall avoid impropriety and the

appearance of impropriety in all of their activities.
SEC. 2. As a subject of constant public scrutiny, judges must

accept personal restrictions that might be viewed as burdensome
833
by the ordinary citizen and should do so freely and willingly. In

particular, judges shall conduct themselves in a way that is
consistent with the dignity of the judicial office.
SEC. 3. Judges shall, in their personal relations with

individual members of the legal profession who practice regularly
in their court, avoid situations which reasonably give rise to the
suspicion or appearance of favouritism or partiality.
SEC. 4. Judges shall not participate in the determination of

a case in which any member of their family represents a litigant or
is associated in any manner with the case.
SEC. 5. Judges shall not allow the use of their residence by

a member of the legal profession to receive clients of the latter or of
other members of the legal profession.
SEC. 6. Judges, like any other citizen, are entitled to freedom

of expressions, belief, association and assembly, but in exercising
such rights, they shall always conduct themselves in such a manner
as to preserve the dignity of the judicial office and the impartiality
and independence of the judiciary.
SEC. 7. Judges shall inform themselves about their personal

fiduciary financial interests and shall make reasonable efforts to be
informed about the financial interests of members of their family.
SEC. 8. Judges shall not use or lend the prestige of the

judicial office to advance their private interests, or those of a member
of their family or of anyone else, nor shall they convey or permit
others to convey the impression that anyone is in a special position
improperly to influence them in the performance of judicial duties.
SEC. 9. Confidential information acquired by judges in their

judicial capacity shall not be used or disclosed by for any other
purpose related to their judicial duties.
834
SEC. 10. Subject to the proper performance of judicial duties,

judges may
a) Write, lecture, teach and participate in activities

concerning the law, the legal system, the administration of justice
or related matters;
b) Appear at a public hearing before an official body
concerned with matters relating to the law, the legal system, the
administration of justice or related matters;
c) Engage in other activities if such activities do not detract

from the dignity of the judicial office or otherwise interfere with the
performance of judicial duties.
SEC. 11. Judges shall not practice law whilst the holder of
judicial office.
SEC. 12. Judges may form or join associations of judges

or participate in other organizations representing the interests of
judges.
SEC. 13. Judges and members of their families shall neither

ask for, nor accept, any gift, bequest, loan or favor in relation to
anything done or to be done or omitted to be done by him or her in
connection with the performance of judicial duties.
SEC. 14. Judges shall not knowingly permit court staff or

others subject to their influence, direction or authority, to ask for, or
accept, any gift, bequest, loan or favor in relation to anything done
or to be done or omitted to be done in connection with their duties
or functions.
SEC. 15. Subject to law and to any legal requirements of

public disclosure, judges may receive a token gift, award or benefit
as appropriate to the occasion on which it is made provided that
such gift, award or benefit might not reasonably be perceived as
intended to influence the judge in the performance of judicial duties
or otherwise give rise to an appearance of partiality.
835
CANON 5
EQUALITY
Ensuring equality of treatment to all before the courts is

essential to the due performance of the judicial office.
SECTION 1. Judges shall be aware of, and understand,

diversity in society and differences arising from various sources,
including but not limited to race, color, sex, religion, national origin,
caste, disability, age, marital status, sexual orientation, social and
economic status and other like causes.
SEC. 2. Judges shall not, in the performance of judicial

duties, by words of conduct, manifest bias or prejudice towards any
person or group on irrelevant grounds.
SEC. 3. Judges shall carry out judicial duties with appropriate

consideration for all persons, such as the parties, witnesses, lawyers,
court staff and judicial colleagues, without differentiation on any
irrelevant ground, immaterial to the proper performance of such
duties.
SEC. 4. Judges shall not knowingly permit court staff

or others subject to his or her influence, direction or control to
differentiate between persons concerned, in a matter before the
judge, on any irrelevant ground.
SEC. 5 Judges shall require lawyers in proceedings before

the court to refrain from manifesting, by words or conduct, bias or
prejudice based on irrelevant grounds, except such as are legally
relevant to an issue in proceedings and may be the subject of
legitimate advocacy.
836
CANON 6
COMPETENC E AND DILIGENCE
Competence and diligence are prerequisites to the due

performance of judicial office.
SECTION 1. The judicial duties of a judge take precedence

over all other activities.
SEC. 2. Judges shall devote their professional activity to

judicial duties, which include not only the performance of judicial
functions and responsibilities in court and the making of decisions,
but also other tasks relevant to the judicial office or the court’s
operations.
SEC. 3. Judges shall take reasonable steps to maintain and

enhance their knowledge, skills and personal qualities necessary for
the proper performance of judicial duties, taking advantage for this
purpose of the training and other facilities which should be made
available, under judicial control, to judges.
SEC. 4. Judges shall keep themselves informed about

relevant developments of international law, including international
conventions and other instruments establishing human rights
norms.
SEC. 5. Judges shall perform all judicial duties, including the

delivery of reserved decisions, efficiently, fairly and with reasonable
promptness.
SEC. 6. Judges shall maintain order and decorum in all

proceedings before the court and be patient, dignified and courteous
in relation to litigants, witnesses, lawyers and others with whom
the judge deals in an official capacity. Judges shall require similar
conduct of legal representatives, court staff and others subject to
their influence, direction or control.
837
SEC. 7. Judges shall not engage in conduct incompatible

with the diligent discharge of judicial duties.
DEFINITIONS
In this Code, unless the context otherwise permits or

requires, the following meanings shall be attributed to the words
used:
“Court staff” includes the personal staff of the judge including

law clerks.
“Judge” means any person exercising judicial power, however

designated.
“Judge’s family” includes a judge’s spouse, son, daughter, son-

in-law, daughter-in-law, and any other relative by consanguinity or
affinity within the sixth civil degree, or person who is a companion
or employee of the judge and who lives in the judge’s household.
This code, which shall hereafter be referred to as the New

Code of Judicial Conduct for the Philippine Judiciary, supersedes
the Canons of Judicial Ethics and the Code of Judicial Conduct
heretofore applied in the Philippines to the extent that the provisions
or concepts therein are embodied in this Code: Provided, however,
that in case of deficiency or absence of specific provisions in this
New Code, the Canons of Judicial Ethics and the Code of Judicial
Conduct shall be applicable in a suppletory character.
This New Code of Judicial Conduct for the Philippine

Judiciary shall take effect on the first day of June 2004, following
its publication not later than 15 May 2004 in two newspapers of
large circulation in the Philippines to ensure its widest publicity.
838
Promulgated this 27th day of April 2004.
HILARIO G. DAVIDE, JR.

Chief Justice
REYNATO S. PUNO JOSE C. VITUG

Associate Justice Associate Justice
ARTEMIO V. PANGANIBAN LEONARDO A. QUISUMBING

CONSUELO YNARES-SANTIAGO ANGELINA SANDOVAL-GUTIERREZ

ANTONIO T. CARPIO MA. ALICIA AUSTRIA-MARTINEZ

(on leave)
RENATO C. CORONA CONCHITA CARPIO MORALES
ROMEO J. CALLEJO, SR ADOLFO S. AZCUNA

DANTE O. TINGA
Associate Justice
839
CODE OF CONDUCT FOR COURT PERSONNEL
WHEREAS, the dispensation of justice is the basic duty and

responsibility of the Judiciary as enshrined in the Constitution; it is
a sacred task of divine origin.
WHEREAS, the Constitution declares that a public office is a

public trust, and all public officers and employees must at all times
be accountable to the people, serve them with utmost responsibility,
loyalty and efficiency, act with patriotism and justice, and lead
modest lives.
WHEREAS, court personnel, from the lowliest employee to

the clerk of court or any position lower than that of a judge or justice,
are involved in the dispensation of justice, and parties seeking
redress from the courts for grievances look upon court personnel as
part of the Judiciary.
WHEREAS, in performing their duties and responsibilities,

court personnel serve as sentinels of justice and any act of impropriety
on their part immeasurably affects the honor and dignity of the
Judiciary and the people’s confidence in it.
WHEREAS, while there are statutory provisions and Civil

Service rules governing the ethical conduct of government officials
and employees, there is a need to adopt norms of conduct that are
specific to personnel in the Judiciary because of the special nature
of their duties and responsibilities.
WHEREAS, at its third meeting in Colombo, Sri Lanka,

in January of 2003, the Judicial Group on Strengthening Judicial
Integrity, which had earlier approved the Bangalore Principles of
Judicial Conduct, submitted for consideration of the participating
Chief Justices, including the Chief Justice of the Philippines, a Code
of Conduct for Judicial Employees.
840
WHEREAS, the Code of Conduct for Judicial Employees was

refined through various amendments, including those introduced by
the Chief Justice of the Philippines, to serve as a model Code of
Conduct for judicial employees or court personnel.
WHEREAS, the Constitution of the Philippines vests in the

Supreme Court administrative supervision over all courts and their
personnel; thus, it has disciplinary authority over them and the
power to promulgate a code of conduct for them.
NOW, THEREFORE, the SUPREME COURT En Banc

hereby PROMULGATES this
CODE OF CONDUCT FOR COURT PERSONNEL
SCOPE
SECTION 1. This Code of Conduct for Court Personnel shall

apply to all personnel in the Judiciary who are not justices or judges.
Court personnel who are no longer employed in the Judiciary but
who acquired, while still so employed, confidential information
as defined in the second paragraph of Section 1 of Canon II on
Confidentiality are subject to Section 4 thereof.
CANON I
FIDELITY TO DUTY
SECTION 1. Court personnel shall not use their official

position to secure unwarranted benefits, privileges or exemptions
for themselves or for others.
SEC. 2. Court personnel shall not solicit or accept any gift,

favor or benefit based on any or explicit or implicit understanding
that such gift, favor or benefit shall in uence their official actions.
841
SEC. 3. Court personnel shall not discriminate by dispensing

special favors to anyone. They shall not allow kinship, rank, position
or favors from any party to in uence their official acts or duties.
SEC. 4. Court personnel shall not accept any fee or

remuneration beyond what they receive or are entitled to in their
official capacity.
SEC. 5. Court personnel shall use the resources, property

and funds under their official custody in a judicious manner and
solely in accordance with the prescribed statutory and regulatory
guidelines or procedures.
CANON II
CONFIDENTIALITY
SECTION 1. Court personnel shall not disclose to any

unauthorized person any confidential information acquired by them
while employed in the Judiciary, whether such information came
from authorized or unauthorized sources.
Confidential information means information not yet made

a matter of public record relating to pending cases, as well as
information not yet made public concerning the work of any justice
or judge relating to pending cases, including notes, drafts, research
papers, internal discussions, internal memoranda, records of
internal deliberations, and similar papers.
The notes, drafts, research papers, internal discussions,

internal memoranda, records of internal deliberations and similar
papers that a justice or judge uses in preparing a decision, resolution
or order shall remain confidential even after the decision, resolution
or order is made public.
842
SEC. 2. Confidential information available to specific

individuals by reason of statute, court rule or administrative policy
shall be disclosed only by persons authorized to do so.
SEC. 3. Unless expressly authorized by the designated

authority, court personnel shall not disclose confidential information
given by litigants, witnesses or attorneys to justices, judges or any
other person.
SEC. 4. Former court personnel shall not disclose confidential

information acquired by them during their employment in the
Judiciary when disclosure by current court personnel of the same
information would constitute a breach of confidentiality. Any
disclosure in violation of this provision shall constitute indirect
contempt of court.
CANON III
CONFLICT OF INTEREST
SECTION 1. Court personnel shall avoid con icts of interest

in performing official duties. Every court personnel is required to
exercise utmost diligence in being aware of con icts of interest,
disclosing con icts of interest to the designated authority, and
terminating them as they arise.
(a) A con ict of interest exists when:
(i) the court personnel’s objective ability or independence of

judgment in performing official duties is impaired or may reasonably
appear to be impaired; or
(ii) the court personnel, the personnel’s immediate family,

or the personnel’s business or other financial interest would derive
financial gain because of the personnel’s official act.
843
(b) No con ict of interest exists if any benefit accrues to the

court personnel as a member of a profession, business, or group to
the same extent as any other member of such profession, business,
or group who does not hold a position in the Judiciary.
(c) The term “immediate family” shall include the following

whether related by blood, marriage or adoption: (a) spouse, (b)
children, (c) brother, (d) sister, - (e) parent, (f) grandparent, (g)
grandchildren, (h) father-in-law, (i) mother-in-law, (j) sister-in-law,
(k) brother-in-law, (l) son-in-law, (m) daughter-in-law, (n) stepfather,
(o) stepmother, (p) stepson, (q) stepdaughter, (r) stepbrother, (s)
stepsister, (t) half-brother, and (u) half-sister.
SEC. 2. Court personnel shall not:
(a) Enter into any contract with the Judiciary for services,
lease or sale of property apart from the employment contract
relating to the personnel’s position; nor use that position to assist
any member of the personnel’s immediate family in securing a
contract with the Judiciary in a manner not available to any other
interested party.
(b) Receive tips or other remuneration for assisting or

attending to parties engaged in transactions or involved in actions
or proceedings with the Judiciary.
(c) Participate in any official action involving a party with

whom either the court personnel or any member of the personnel’s
immediate family is negotiating for future employment.
(d) Knowingly employ or recommend for employment any

member of the court personnel’s immediate family.
(e) Solicit or accept any gift, loan, gratuity, discount, favor,

hospitality or service under circumstances from which it could
844
reasonably be inferred that a major purpose of the donor is to

in uence the court personnel in performing official duties.
SEC. 3. Nothing in Section 2 above shall prohibit court

personnel from (a) accepting a public award presented in recognition
of public services; (b) receiving a commercially reasonable loan
made as part of the ordinary transaction of the lender’s business; (c)
donating to the Judiciary for the benefit of a group of court personnel
(e. g. all the personnel of an office or unit of the Judiciary): Provided,
that the value and circumstances of the donation are such that it
could not be reasonably inferred that the donation would in uence
the recipient in performing official duties in favor of the donor or
some other party or that such in uence was the purpose of the
donor.
Finally, nothing in Section 2 above shall prohibit any person,
group or entity from donating cash or property of significant or
historical value for the benefit of the Judiciary: Provided, that, such
donation is received on behalf of the Judiciary by the designated
authority.
SEC. 4. To insure compliance with the provisions of this

canon on Conflict of Interest, court personnel who have authority
to enter into or approve contracts for the Judiciary shall file a
financial disclosure statement with the designated authority at the
beginning and upon termination of employment in such position,
and annually while so employed. The disclosure shall follow the
guidelines established by the designated authority, and shall include
all sources of personal and business income, including investments
in personal or real property, as well as all income received by their
spouses or dependent children.
SEC. 5. The full-time position in the Judiciary of every

court personnel shall be the personnel’s primary employment. For
purposes of this Code, “primary employment” means the position that
consumes the entire normal working hours of the court personnel
and requires the personnel’s exclusive attention in performing
official duties.
845
Outside employment may be allowed by the head of office

provided it complies with all of the following requirements:
(a) The outside employment is not with a person or entity

that practices law before the courts or conducts business with the
Judiciary;
(b) The outside employment can be performed outside of

normal working hours and is not incompatible with the performance
of the court personnel’s duties and responsibilities;
(c) The outside employment does not require the practice of

law; Provided, however, that court personnel may render services
as professor, lecturer, or resource person in law schools, review or
continuing education centers or similar institutions;
(d) The outside employment does not require or induce the

court personnel to disclose confidential information acquired while
performing official duties; and
(e) The outside employment shall not be with the legislative

or executive branch of government, unless specifically authorized by
the Supreme Court.
Where a con ict of interest exists, may reasonably appear

to exist, or where the outside employment re ects adversely on the
integrity of the Judiciary, the court personnel shall not accept the
outside employment.
CANON IV
PERFORMANCE OF DUTIES
SECTION 1. Court personnel shall at all times perform

official duties properly and with diligence. They shall commit
846
themselves exclusively to the business and responsibilities of their

office during working hours.
SEC. 2. Court personnel shall carry out their responsibilities

as public servants in as courteous a manner as possible.
SEC. 3. Court personnel shall not alter, falsify, destroy or

mutilate any record within their control.
This provision does not prohibit amendment, correction or

expungement of records or documents pursuant to a court order.
SEC. 4. In performing official duties, court personnel shall

not discriminate nor manifest, by word or conduct, bias or prejudice
based on race, religion, national or ethnic origin, gender or political
affiliation.
SEC. 5. Court personnel shall not recommend private

attorneys to litigants, prospective litigants, or anyone dealing with
the Judiciary.
SEC. 6. Court personnel shall expeditiously enforce rules and

implement orders of the court within the limits of their authority.
SEC.7. Court personnel shall not be required to perform any

work or duty outside the scope of their assigned job description.
INCORPORATION OF OTHER RULES
SECTION 1. All provisions of law, Civil Service rules, and

issuances of the Supreme Court governing or regulating the conduct
of public officers and employees applicable to the Judiciary are
deemed incorporated into this Code.
847
EFFECTIVITY
SECTION 1. This Code shall take effect on the first day

of June, 2004, and shall be published in a newspaper of general
circulation not later than the fifteenth day of May, 2004.
(Sgd.) HILARION G. DAVIDE, JR.

Chief Justice
` REYNATO S. PUNO JOSE C. VITUG

ARTEMIO V. PANGANIBAN LEONARDO A. QUISUMBING

CONSUELO YNARES-SANTIAGO ANGELINA SANDOVAL-GUTIERREZ

ANTONIO T. CARPIO MA. ALICIA AUSTRIA-MARTINEZ

RENATO C. CORONA CONCHITA CARPIO MORALES

ROMEO J. CALLEJO, SR ADOLFO S. AZCUNA

DANTE O. TINGA
Associate Justice
848
EXECUTIVE ISSUANCES – APPENDIX
APPENDIX: List of Law Amendments on

Public Accountability and Ethics
LAW AMENDS AMENDED BY REPEALS REPEALED BY

ACT 328 ACT 215
ACT 839 ACT 52
ACT 1044 ACT 83
ACT 1054 ACT 619
ACT 1072 ACT 5
ACT 1096 ACT 25
ACT 1373 ACT 619
ACT 1605 ACT 1161
ACT 1726 ACT 1582
ACT 1739 ACT 136 ACT 249
ACT 464
ACT 626
ACT 799
ACT 1097
ACT 1980 ACT 2346
ACT 3192 ACT 3108
AO 7 AO 15 s.
2000
AO 17 s.
2003
BP 242 PD 749 §2
BP 871 ACT 3815
(Articles 201
and 211)
CA 598 ACT 2711, as EO 39 s. 1936
amended (§695)
EO 4 s. 1954 EO 318 s. 1950
EO 6 s. 1966 EO 146 s. 1965
EO 12 s. 1913 EO 66 s. 1902
EO 59 s. 1903
EO 93 s. 1903
EO 104 s. 1903
849

EO 12 s. 2001 EO 151 s. 1994
EO 151-A s.
1994
EO 268 s. 2000
EO 13 s. 2010 EO 151 s. 1994
EO 13 s. 1907 EO 20 s.
1907
EO 14 s. 1986 ACT 1378 §§2
&6
EO 19 s. 1954 EO 1 s. 1953
EO 20 s. 1907 EO 13 s. 1907
EO 21 s. 1954 EO 111 s. 1937
EO 27 s. 1912 EO 43 s. 1906
EO 43 s. 1947 EO 42 s. 1945
EO 55 s. 1954 EO 111 s. 1937
EO 81 s. 1916 EO 80 s. 1914
EO 86 s. 1911 EO 43 s. 1906
EO 101 s. 1986 PD 1486
EO 109 s. 2002 MO 266 s. 1989 AO 7 s. 2001
EO 354 s. 1996
EO 380 s. 1989
EO 381 s. 1989
MC 25 s. 1999
EO 114 s. 1955 EO 111 s. 1937
EO 135 s. 1955 EO 111 s. 1937
EO 148 s. 1928 EO 57 s. 1927
EO 151 s. 1994 EO 13 s. 2010
EO 151-A s. EO 151-A s.
1995 1994
EO 190 s. 1987 PD 1774
PD 1791
EO 268 s. 2000 EO 151 s. 1994
EO 327 s. 2004 EO 12 s. 2001
EO 457 s. 1961 EO 378 s. 1960
EO 531 s. 2006 EO 12 s. 2001 MO 86 s. 2003
EO 531-A s. EO 531 s. 2006
2006
850

EO 531-B s. EO 531 s. 2006
2006
EO 662-B s. EO 662 s. 2007
2008
EO 662-A s. EO 662 s. 2007
2007
EO 670-A s. EO 670 s. 2007
2008
EO 670 s. 2008 EO 531 s. 2006
EO 842 s. 2009 EO 12 s. 2001
PD 417 PD 379
PD 434 PD 76 par. 7
PD 526 RA 2264
PD 555 PD 379
PD 677 RA 3019
PD 1445 ACT 2711
(Chapter 26)
PD 1487 PD 1607 RA 6028
PD 1606 PD 1486
PD 1607 PD 1487
PD 1608 PD 1276
PD 1629 PD 1486
PD 1606
PD 1822 CA 403 (certain
provisions) ;
PD 1606
PD 1822-A PD 1822
PD 1840 PD 1740
PD 1860 BP 129
PD 1606
PD 1861 BP 129
PD 1606
RA 23 ACT 4109
RA 379 ACT 3815
RA 1057 RA 910
RA 1060 ACT 3815
851

RA 3047 RA 3019
RA 3522 RA 180
RA 4643 RA 3452
RA 4709 RA 2370
RA 4712 RA 1937
RA 4713 CA 466 (§§345-
346)
RA 5185 RA 4092
RA 6388 RA 180
RA 3588
RA 7055 PD 1822
PD 1822-A
PD 1850
PD 1952
RA 7160 BP 337
EO 112 s. 1987
EO 319 s. 1988
PD 87 §12
PD 144
PD 231
PD 381
PD 436
PD 463 §§52,
53, 66-74
PD 477
PD 526
PD 684
PD 704 §§2,
16,19
PD 752
PD 972, §16
PD 1136
PD 1191
PD 1508
PD 1594
RA 1939 §§2,
3, 4
RA 5447 §3,
a(3) & b(2)
RA 7642 PD 1158
852

RA 7651 RA 1937
RA 7659 RA 6425
RA 7975 PD 1606
RA 8249 PD 1606
RA 9135 PD 1464
RA 9160 RA 1405
RA 6426
RA 8791
RA 9184 RA 7160 Title EO 40 s. 2001
VI, Bk. 2 EO 262 s. 2000
EO 164 s. 1987 EO 302 s. 1996
RA 7898
RA 9194 RA 9160
RA 9287 PD 1602
RA 9335 RA 8424 §285
RA 9400 RA 7227 RA 7916 §50
RA 9484 RA 768
RA 4419
RA 9514 PD 1185
RA 10022 RA 8042
RA 10149 EO 323 s. 2000
RA 10167 RA 9160
853
INDEX
A Anti-Graft and Corrupt Practices Act

EO 531 s. 2006 ; RA 3019
Abandonment of imported articles Amendments PD 677 ; RA
Laws and regulations RA 7651 3047
Accessibility to government SEE Violations RA 8249
Government publications Anti-Graft Law
accessibility Implementation EO 378 s.
Accounts payable 1960 ; EO 457 s. 1961
Auditing CA 327 ; RA 1051 Anti-Money Laundering Act of 2001
Actions and defenses EO 19 s. 1954 Amendments RA 9194
; EO 442 s. 1991 Anti-Money Laundering Council
Rules and practice ACT 190 (AMLC) RA 9160 ; RA 10167
Administrative agencies Anti-Money Laundering Law
Rules and practices EO 26 s. Improvement RA 10167
1992 Anti-Red Tape Act of 2007 RA 9485
Administrative cases, Investigation Implementing Rules and
of Regulations IRR of RA 9485
Rules and procedures EO 276 Anti-Red Tape Task Force (Task
s. 1940 Force)
Administrative Code of 1987 Anti-Red Tape Module
Implementation EO 292 s. Creation EO 557 s. 2006
1987 Anti-Smuggling Campaign EO 6 s.
Administrative complaints EO 390 1966
s. 1972 Anti-Violence Against Women and
Administrative law EO 86 s. 1911 ; their Children Act of 2004 RA
EO 27 s. 1912 ; EO 26 s. 1992 9262
Administrative procedure EO 26 Anti-Usury Board
s. 1992 ; EO 243 s. 1987 ; EO Amendments RA 23
670-A s. 2008 Officials and employees
Administrative responsibility Code of Conduct RA 23
ARTICLE XI (1987 Arbitrary detention ACT 3815
CONSTITUTION) ; EO 7 s. 1922 Armed Forces EO 190 s. 1987
; EO 19 s. 1986 ; EO 61 s. 1908 ; Armed Forces of the Philippines
EO 190 s. 1987 ; EO 226 s. 1995 ; Officials and employees
EO 292 s. 1987 ; RA 9287 ; RA Discipline PD 1822 ; PD
9335 ; RA 9400 ; RA 9485 1822-A ; PD 1850 ; RA
Anti-Corruption Swift Action Team 7055
(SWAT) Responsibility EO 190 s.
Organization EO 407 s. 2005 1987
Anti-Corruption Swift Action Team Attrition Act of 2005 RA 9335
(SWAT) Leader Auction sales notice PD 1079
Responsibility EO 407 s. 2005 Audit, Commission on PD 1445
854
EXECUTIVE ISSUANCES – INDEX
Accounting EO 190 s. 1987 Bribery ACT 3815 ; BP 242 ; BP

Officials and employees 871 ; EO 6 s. 1910 ; PD 46 ; PD
Discipline EO 19 s. 1986 749 ; PD 1079 ; RA 3019 ; RA
Prohibition EO 190 s. 1987 6713
Reorganization EO 19 s. 1986 Budget Commission
Auditor General CA 325 ; CA 327 Officials and employees CA 320
Autonomous Region in Muslim
Mindanao (ARMM) RA 6734 C
B Cabinet officers
Professional ethics EO 317 s.
Bank auditing SEE Bank 2000
examinations Capital punishment RA 7659
Bank deposits Central Bank of the Philippines
Examinations RA 10167 Government policy PD 1608
Bank examinations ACT 839 ; RA Certificates of Candidacy RA 3522
9194 Chief Special Prosecutor, Office of
Bank secrecy SEE Confidential the PD 1486
communications--Banking Citizen’s Counselor Act of 1969 RA
Banks and banking 6028
Examinations SEE Bank Citizen’s Counselor, Office of the
examinations Creation RA 6028
Laws and regulations RA Civil actions SEE Actions and
1405 ; RA 9194 defenses
Barangays Civil Code of the Philippines
Officials and employees Enactment RA 386
Code of conduct RA 9262 Civil government
Responsibility RA 9262 Provinces of
Barrio Charter Benguet ACT 1044
Amendments RA 4709 Lepanto-Bontoc ACT 1044
Bases Conversion and Development Mindoro ACT 1044
Act of 1992 Nueva Vizcaya ACT 1044
Amendments RA 9400 Paragua ACT 1044
Board of Directors Civil Governor
Prohibition EO 399 s. 1951 Reports ACT 1044
Bonded government employees Civil service ACT 5 ; ACT 1072
ACT 1605 ; ACT 1739 Rules and practice EO 5 s.
Code of Conduct ACT 1161 1909
Bonded public officers ACT 1605 Civil Service Act of 1959 RA 2260
Code of Conduct ACT 1161 ; Civil Service Board of Appeals (1936)
ACT 1739 Abolition CA 598
Book of Accounts Civil Service Board of Appeals (1940)
Government policy EO 17 s. Creation CA 598
1913
855
Civil Service Commission Code of Judicial Conduct CODE

Legal Affairs, Office of OF JUDICIAL CONDUCT (1989)
Reorganization PD 1409 A.M. No. 89-9-009-SC (Supreme
Merit Systems Board Court, Manila)
Creation PD 1409 Command responsibility EO 226 s.
Prohibitions EO 292 s. 1987 1995
Reorganization PD 807 Commerce, Bureau of
Civil Service Decree of the Standards, Division of RA
Philippines PD 807 4109
Civil Service Ethics ACT 5 ; ACT Commerce and Industry,
1072 ; AO 25 s. 1987 ; CA 598 ; Department of
CA 626 ; EO 5 s. 1909 ; EO 26 s. Standards, Bureau of
1907 ; EO 135 s. 1955 ; EO 264 Creation RA 4109
s. 1970 ; EO 292 s. 1987 ; RA Commissioners, Board of
2260 Creation PD 434
Laws and regulations EO 8 s. Complaints Administrative
1925 Procedure EO 264 s. 1970
Civil Service Law EO 76 s. 1917 Confidential communications
Civil Service Rule Banking RA 1405
Amendments EO 76 s. 1917 Congress
Civil supremacy over the military House of Representatives
RA 7055 ARTICLE XI (1987
Civilian Home Defense Force CONSTITUTION) ; CA 626
Officials and employees EO Senate ARTICLE XI (1987
190 s. 1987 CONSTITUTION) ; CA 626
Claims Constitution ARTICLE XI (1987
Rules and regulations CA 327 CONSTITUTION)
Code of Conduct and Ethical Amendments CA 626
Standards for Public Officials and Contracts , Committee on
Employees EO 50 s. 1903 ; EO Purchase and Supply, Division
317 s. 2000 ; EO 464 s. 2005 ; of EO 43 s. 1947
RA 6713 Contracts, Government SEE Public
Implementing Rules and contracts
Regulations IRR of RA 6713 Corn
Laws and regulations PD 807 Prices
Code of Conduct for Court Personnel Laws and regulations RA
CODE OF CONDUCT FOR 4643
COURT PERSONNEL A.M. No. Court of First Instance
03-06-13-SC (Supreme Court, Accounting EO 27 s. 1904
Manila) Court officers SEE Courts--
Code of Conduct for Relatives and Officials and employees
Close Personal Relations EO 317 Court officials and employees SEE
s. 2000 Courts--Officials and employees
Code of Good Governance Court personnel SEE Courts--
Ratification EO 220 s. 2003 Officials and employees
856
Courts Death penalty SEE Capital

Officials and employees punishment
Code of Conduct CODE OF Debts, Public ACT 1739
CONDUCT FOR COURT Accounting EO 61 s. 1908
PERSONNEL A.M. No. Decentralization Act of 1967 RA
03- 06-13-SC (Supreme 5185
Court, Manila) Dental hygienists
Professional ethics CODE Practice of RA 9484
OF CONDUCT FOR Dental technicians
COURT PERSONNEL Practice of RA 9484
A.M. No. 03- 06-13-SC Dentistry
(Supreme Court, Manila) Practice of RA 9484
Responsibility CODE OF Departmental reports EO 33 s.
CONDUCT FOR COURT 1906
PERSONNEL A.M. No. Deputy Executive Secretary for
03-06-13-SC (Supreme Legal Affairs (DESLA)
Court, Manila) Ex-officio Commissioner EO
Courts-Martial and Courts of 842 s. 2009
Inquiry RA 7055 Disbursement of public funds
Courts-Martial trial SEE Trials EO 21 s. 1903 ; EO 48 s. 1909 ;
(Military offenses) EO 49 s. 1903
Credit Disbursing officer
Management EO 86 s. 1911 ; Code of Conduct EO 7 s. 1907
EO 27 s. 1912 ; PD 807
Credit contract EO 86 s. 1911 ; EO Responsibility EO 21 s. 1903 ;
27 s. 1912 EO 49 s. 1903 ; PD 807
Criminal law ACT 3815 District auditors
Customs Administration RA 4712 ; Management EO 38 s. 1907
RA 4713 ; RA 7651 ; RA 9135
Customs, Bureau of (BOC) E
Officials and employees
Discipline RA 9335 Education, Culture and Sports,
Training of RA 10143 Department of
Reorganization RA 7651 Renamed RA 9155
Revenue Performance Evaluation Education, Department of
Board Named RA 9155
Creation RA 9335 Educational accountability RA 9155
Rewards and Incentives Fund Election Code of 1971 RA 6388
Creation RA 9335 Election Law EO 11 s. 1922 ; RA
6388 ; RA 9189
D Amendments ACT 1726
Elections
Dangerous Drugs Act of 1972 RA Corrupt practices EO 76 s.
7659 1917 ; RA 6388
857
Elections, Commission on Fraudulent practices EO 11 s. 1908

EO 292 s. 1987 ; PD 555 ; PD 563 ; PD 1740 ;
Employees PD 1840 ; RA 4712 ; RA 7080
Code of Conduct EO 11 s. 1908
; EO 26 s. 1907 ; EO 75 s. G
1927 ; EO 108 s. 1913 ; EO
264 s. 1970 ; EO 292 s. 1987 GOCC Government Act of 2011 RA
; RA 1379 ; RA 6713 10149
Corrupt practices PD 46 ; RA Gambling
1379 Laws and regulations RA 9287
Discipline ACT 1096 ; EO 292 General Auditing Office (GAO) CA
s. 1987 ; EO 11 s. 1908 ; EO 320 ; CA 325
21 s. 1966 ; EO 26 s. 1907 ; National Audit, Department A, B
EO 264 s. 1970 ; EO 276 s. and C EO 43 s. 1947
1940 ; ; PD 46 ; PD 133 Property Inspection Department
; RA 6173 ; RA 6713 ; RA Transferred to the Office of
9287 the President EO 43 s.
Dismissal of ACT 1096 ; EO 1947
11 s. 1908 ; PD 6 ; PD 46 Salvage Warehouse
Executive Privilege, Rule of EO Transferred to the Industrial
464 s. 2005 Division EO 43 s. 1947
Expenditures, Public EO 75 s. 1927 General fund PD 1374
; EO 108 s. 1913 ; EO 27 s. 1954 Gifts to employees PD 46
Export-Import Trade Gifts to Public Officers BP 242 ;
Laws and regulations RA 4653 BP 871 ; PD 46 ; PD 749 ; PD
1079
F Governance Advisory Council
Creation EO 25 s. 2001
Fidelity-Bond Premium Fund Governance of Basic Education Act of
Creation ACT 1739 2001 RA 9155
Finance, Department of Government accountability project
Task Force EO 156 s. 1999 PD 1374
Financial institutions Government Auditing Code of the
Examinations ACT 839 Philippines PD 1445
Financial statements Government contracts SEE Public
Government employees PD 379 contracts
; PD 417 Government Financial Institution
Fire Code of the Philippines of 2008 (GFI)
Creation RA 9514 Prohibition EO 317 s. 2000
Forfeiture ACT 190 ; EO 378 s. Government liability ACT 328 ;
1960 ; PD 133 ; PD 1608 ; RA CA 327 ; EO 21 s. 1966 ; EO 108
1379 s. 1909 ; EO 190 s. 1987 ; EO
Fraud ACT 3815 ; RA 9135 292 s. 1987 ; EO 220 s. 2003 ;
PD 1445 ; IRR of RA 9485
858
Government procurement SEE ; EO 407 s. 2005 ; RA 9485 ;

Government purchasing RA IRR of 9485
Government Procurement Policy Prohibition EO 151 s. 1994
Board (GPPB) EO 662 s. 2007
Procurement Transparency I
Group (PTG)
Creation EO 662 s. 2007 ITR SEE Income Tax Returns
Technical Support Office (TSO) Ill-gotten wealth EO 1 s. 1986 ;
Creation EO 662 s. 2007 EO 2 s. 1986 ; EO 14 s. 1986 ; RA
Government Procurement Reform 7080
Act RA 9184 Investigation EO 1 s. 1986
Government Prevention EO 1 s. 1986
Accounting ACT 328 ; PD 526 Illegal gambling SEE Gambling
Government policy EO 81 s. Impeachments ARTICLE XI (1987
1916 CONSTITUTION)
Government publications Import quotas RA 4109 ; RA 4653
accessibility EO 89 s. 1993 ; RA 4713
Government purchasing EO 662 s. Importation SEE Export-Import
2007 ; EO 662-A s. 2007 Trade
Laws and regulations EO 48 Income Tax Law PD 1740
s. 1914 ; PD 526 ; RA 5183 ; Income Tax Returns PD 213 ; SEE
RA 9184 ALSO Tax returns
Government spending policy ACT Industrial Division EO 43 s. 1947
12 ; EO 12 s. 1913 ; EO 27 s. Integrated National Police EO 190
1954 ; EO 75 s. 1927 ; EO 462 s. s. 1987
1934 ; PD 1445 Officials and employees
Government vehicles Discipline PD 1850
Government policy EO 12 s. Integrity Board
1913 ; EO 81 s. 1916 Creation EO 318 s. 1950
Government-owned and Controlled Internal Revenue, Bureau of (BIR)
Corporations EO 2 s, 2010 Officials and employees
Privatization Code of Conduct RA 7642
Implementation RA 10149 Discipline RA 9335
Procurement EO 109 s. 2002 ; Training of RA 10143
RA 5183 Revenue Performance Evaluation
Graft and corruption BP 242 ; EO Board
1 s. 2010 ; EO 4 s. 1962 ; EO Creation RA 9335
156 s. 1999 ; EO 327 s. 2004 ; Rewards and Incentives Fund
EO 378 s. 1960 ; EO 390 s. 1972 Creation RA 9335
; EO 670 s. 2008 ; PD 133 ; PD Internal revenue services ACT 749
749 ; RA 1379 ; RA 3019 Investigative and Adjudicatory
Investigations EO 1 s. 1986 ; Division
EO 151-A s. 1995 Creation EO 13 s. 2010
Prevention AO 25 s. 1987 ;
EO 1 s. 1986 ; EO 12 s. 2001
859
J Local Government Code of 1991 RA

7160
Judges Local Government Finance, Bureau
Code of Conduct CODE of (BLGF)
OF JUDICIAL CONDUCT Officials and employees
(1989) A.M. No. 89-9-009-SC Training of RA 10143
(Supreme Court, Manila) ; Local government units RA 7160
NEW CODE OF JUDICIAL
CONDUCT FOR THE M
PHILIPPINE JUDICIARY
A.M. No. 03-05-01-SC Malacañang Public Assistance
(Supreme Court, Manila) Center
Professional ethics CODE Renamed EO 442 s. 1991
OF JUDICIAL CONDUCT Malfeasance in office SEE
(1989) A.M. No. 89-9-009-SC Misconduct in Office
(Supreme Court, Manila) ; Malversation of government property
NEW CODE OF JUDICIAL ACT 1740 ; ACT 3815 ; RA 1060
CONDUCT FOR THE Malversation of public funds ACT
PHILIPPINE JUDICIARY 1740 ; ACT 3815 ; RA 1060
A.M. No. 03-05-01-SC Marcos Crones EO 2 s. 1986 ; EO
(Supreme Court, Manila) 14 s. 1986
Responsibility CODE OF Marcos Wealth EO 1 s. 1986 ;
JUDICIAL CONDUCT EO 2 s. 1986 ; EO 14 s. 1986 ;
(1989) A.M. No. 89-9-009-SC Merit Systems Board
(Supreme Court, Manila) ; Creation PD 1409
NEW CODE OF JUDICIAL Midnight appointments EO 2 s.
CONDUCT FOR THE 2010
PHILIPPINE JUDICIARY Migrant Workers and Overseas
A.M. No. 03-05-01-SC Filipinos Act of 1995
(Supreme Court, Manila) Amendments RA 10022
Misconduct in office ACT 1054 ;
L ACT 1373 ; ACT 1726 ; ACT
3192 ; ACT 1161 ; ACT 3815
Law enforcement EO 226 s. 1995 ; CODE OF CONDUCT FOR
Law enforcers SEE Police COURT PERSONNEL A.M. No.
Legal Affairs, Office of 03- 06-13-SC (Supreme Court,
Reorganization PD 1409 Manila) ; CODE OF JUDICIAL
Local Autonomy Act of 1959 CONDUCT (1989) A.M. No. 89-9-
Amendments PD 526 009-SC (Supreme Court, Manila) ;
Local Government RA 5185 EO 5 s. 1909 ; EO 8 s. 1925 ; EO
Local Officials and employees RA 13 s. 1907 ; EO 13 s. 1908 ; EO 20
7160 s. 1907 ; EO 77 s. 1914 ; EO 103
Professional ethics EO 264 s. s. 1913 ; EO 212 s. 1939 ; EO
1970 264 s. 1970 ; EO 276 s. 1940 ;
860
EO 390 s. 1972 ; NEW CODE OF Nepotism EO 21 s. 1954 ; EO 55 s.

JUDICIAL CONDUCT FOR THE 1954 ; EO 292 s. 1987 ; PD 807 ;
PHILIPPINE JUDICIARY A.M. RA 2260
No. 03-05-01-SC (Supreme Court, Amendments EO 114 s. 1955 ;
Manila) ; PD 6 ; RA 1051 EO 135 s. 1955
Misfeasance in office SEE Laws and regulations EO 135
Misconduct in office s. 1955
Money laundering Rules and practice EO 114 s.
Criminal provisions RA 9160 1955 ; EO 135 s. 1955
Laws and regulations RA 9194 New Code of Judicial Conduct for the
Prevention RA 10167 Philippine Judiciary NEW CODE
Municipal finance OF JUDICIAL CONDUCT FOR
Accounting CA 325 THE PHILIPPINE JUDICIARY
Municipal officials and employees A.M. No. 03-05-01-SC (Supreme
Code of conduct EO 13 s. 1908 Court, Manila)
Corrupt practices EO 13 s. 1908
Discipline EO 13 s. 1908 ; EO O
11 s. 1922 ; RA 6028
Dismissal of EO 11 s. 1922 Offense against religion ACT 3815
Municipal services Office of the Deputy Executive
Auditing CA 325 Secretary for Legal Affairs
Division Services and Sections
N Investigative and
Adjudicatory Division
National Anti-Corruption Creation EO 13 s.
Commission 2010
Creation EO 268 s. 2000 Restructuring EO 13 s. 2010
National Defense, Minister of Office of the President
Administration of EO 190 s. Deputy Executive Secretary for
1987 Legal Affairs (DESLA)
National Internal Revenue Code Ex-officio Commissioner
Amendments RA 4713 ; RA EO 842 s. 2009
7642 Philippine Information Service
Navigation, Bureau of Creation EO 348 s. 1950
Commissioned and Enlisted Presidential Anti-Graft
Service Commission
Creation ACT 1980 Creation EO 12 s. 2001
Officials and employees Presidential Commission
Code of Conduct ACT 1980 Against Graft and Corruption
Discipline ACT 1980 Creation EO 151 s. 1994
Pension Fund Presidential Complaint and
Creation ACT 1980 Action Commission
Neglect of duty EO 226 s. 1995 Creation EO 1 s. 1953
861
Laws and regulations EO P

1 s. 1953
Responsibility EO 1 s. PAGC SEE Presidential Anti-Graft
1953 Commission
Presidential Complaints and PALCOM Adjudication Boards
Action Committee SEE Police Commission
Creation EO 19 s. 1954 Adjudication Boards
Presidential Complaints and PCAGC SEE Presidential
Action Office Commission Against Graft and
Creation EO 442 s. 1991 Corruption
Property Inspection Department PCGG SEE Presidential
EO 43 s. 1947 Commission on Good Government
Rice and Corn Administration PIA SEE Philippine Information
Amendments RA 4643 Agency
Oil Industry Commission Act RA PRC Modernization Act of 2000 EO
6173 220 s. 2003
Oil Industry Commission Pensions
Creation RA 6173 Government policy RA 10154
Ombudsman Act of 1989 RA 6770 Philippine Army
Ombudsman, Office of the EO 292 Reserve Force
s. 1987 Officials and employees
Creation ARTICLE XI (1987 Code of Conduct EO
CONSTITUTION) 212 s. 1939
Implementation of the Creation Dismissal of EO 212
EO 243 s. 1987 s. 1939
Organization RA 6770 Professional ethics EO
Rules and practice AO 7 s. 212 s. 1939
1990 Philippine Board of the Panama-
Tanodbayan RA 6770 Pacific International Exposition
Amendments PD 1607 Officials and employees
Creation PD 1487 Code of Conduct EO 77 s.
One-Stop-Shop Inter-Agency Tax 1914
Credit and Duty Drawback Center Philippine Civil Service Board
Corrupt practices EO 156 s. ACT 1072
1999 Creation ACT 5
Organic Act RA 6734 Philippine Constabulary
Organic Agriculture Act of 2010 RA Officials and employees
10068 Code of Conduct ACT 1373
Organic Agriculture System RA Dismissal of ACT 1054
10068 Discipline ACT 1054 ;
Overseas Absentee Voting RA 9189 ACT 1373 ; PD 1822 ;
Overseas Absentee Voting Act of PD 1822-A
2003 RA 9189 Philippine Dental Act of 2007 RA
9484
862
Philippine Government Electronic Postal money orders ACT 749

Procurement System (PhilGEPS) President
EO 662 s. 2007 Professional ethics EO 317 s.
Philippine Information Agency (PIA) 2000
Creation EO 100 s. 1986 Presidential Action Center EO 447
Responsibility EO 100 s. 1986 s. 1991
Philippine Information Board Presidential Anti-Graft Commission
Governing body EO 348 s. 1950 (PAGC)
Philippine Information Service Abolition EO 13 s. 2010
Creation EO 348 s. 1950 Amendments EO 327 s. 2004 ;
Philippine Overseas Employment EO 531-A s. 2006 ; EO 531-B
Administration s. 2006 ; EO 670 s. 2008 ;
Officials and employees EO 670-A s. 2008 ; EO 842 s.
Discipline RA 10022 2009
Philippine National Police (PNP) Creation EO 12 s. 2001
EO 226 s. 1995 Officials and employees
Officials and employees Responsibility EO 531 s.
Discipline RA 7055 2006
Philippine Tax Academy Personnel Management EO 531
Creation RA 10143 s. 2006
Philippine Tax Academy Act RA Reorganization EO 531 s. 2006
10143 EO 531-A s. 2006
Philippine Truth Commission of Presidential Anti-Graft Committee
2010 Abolition EO 457 s. 1961
Creation EO 1 s. 2010 Creation (1960) EO 378 s. 1960
Pillage RA 7080 Creation (1962) EO 4 s. 1962
Plunder RA 7080 Presidential appointees EO 2 s.
Police 2010
Code of Conduct RA 9262 Complaints against EO 151-A
Police Act of 1966 s. 1995
Amendments PD 12 Corrupt practices EO 670 s.
Police administration PD 12 2008
Police Commission, Office of the Presidential Citation for Honesty
PD 12 and Integrity
Police Commission Adjudication Organization EO 9 s. 1962
Boards Presidential Commission Against
Creation PD 12 Graft and Corruption (PCAGC)
Political campaign EO 76 s. 1917 Abolition EO 268 s. 2000
Political corruption EO 6 s. 1910 Creation EO 151 s. 1994
Postemployment benefits Reorganization EO 12 s. 2001
Government policy RA 10154 Presidential Commission on Good
Postage stamps Government
Laws and regulations EO 13 Creation EO 1 s. 1986
s. 1908 Rules and practice EO 14 s.
1986 ; EO 1 s. 1986
863
Presidential Commission to Professional Regulation Commission

Investigate Administrative (PRC)
Complaints Involving Graft and Responsibility EO 220 s. 2003
Corruption Professional Regulatory Commission
Amendments EO 151-A s. Professional Regulatory Board of
1995 Dentistry
Presidential Committee on Public Laws and regulations RA
Ethics and Accountability 9484
Creation AO 25 s. 1987 Officials and employees
Presidential Complaints and Action Discipline RA 9484
Commission Prohibiting and Restricting for
Creation EO 1 s. 1953 Practice of Nepotism
Laws and regulations EO 4 s. Amendments EO 21 1954 ;
1954 ; EO 1 s. 1953 EO 55 s. 1954
Presidential Complaints and Action Prosecutors
Committee Code of conduct RA 9262
Creation EO 19 s. 1954 Responsibility RA 9262
Presidential Complaints and Action Provincial government
Office EO 447 s. 1991 Administration of EO 38 s. 1907
Creation EO 442 s. 1991 Provincial Government Act
Price regulation RA 4643 Amendments ACT 1044
Private business Provincial Governor
Government employees Administration of EO 38 s.
Code of conduct EO 103 s. 1907
1913 Reports ACT 1044
Discipline EO 103 s. 1913 Publication of Judicial notice PD
Professional ethics EO 103 1079
s. 1913 Public Administration IRR of RA
Prisons, Bureau of 6713
Industrial Division EO 43 s. Public Assistance Office
1947 Named EO 442 s. 1991
Procurement Transparency Board Public bidding EO 109 s. 2002
(PTC) Public biddings, Advertisements
Creation EO 662 s. 2007 PD 1079
Procurement Transparency Group Public contracts EO 109 s. 2002 ;
Amendments EO 662-B s. 2008 RA 9184
Creation EO 662 s. 2007 ; EO Laws and regulations RA 5183
662-A s. 2007 Public depositories ACT 749
Responsibility EO 662 s. 2007 Public funds—Disbursement SEE
Professional ethics RA 6734 Disbursement of public funds
Government employees EO 55 Public goods
s. 1913 ; EO 8 s. 1925 ; IRR Government policy RA 4109
of RA 6713 Inspections RA 4109
Standardization RA 4109
864
Public hospitals ; EO 318 s. 1950 ; EO 390 s.

Medical staff 1972 ; PD 6 ; PD 46 ; PD
Clinical privileges EO 55 749 ; PD 807 ; EO 5 s. 1909
s. 1913 ; RA 386 ; RA 5185 ; RA
Public officers 6028 ; RA 6173 ; IRR of RA
Code of conduct ACT 3815 6713 ; RA 7055 ; RA 7160
; ARTICLE XI (1987 ; RA 9135 ; RA 9160 ; RA
CONSTITUTION) ; BP 242 ; 9287 ; IRR of RA 9485 ; RA
BP 871 ; EO 5 s. 1909 ; EO 6 9514 ; RA 10149
s. 1910 ; EO 6 s. 1966 ; EO 8 Dismissal of ACT 1096 ; ACT
s. 1925 ; EO 11 s. 1908 ; EO 1726 ; ACT 3815 ; EO 5 s.
12 s. 1913 ; EO 13 s. 1907 ; 1909 ; EO 7 s. 1922 ; EO 11
EO 13 s. 1908 ; EO 20 s. 1907 s. 1908 ; EO 264 s. 1970 ;
; EO 26 s. 1907 ; EO 75 s. PD 6 ; PD 46 ; PD 807 ; RA
1927 ; EO 76 s. 1917 ; EO 2260 ; RA 3019 ; RA 6734 ;
108 s. 1913 ; EO 148 s. 1928 RA 7160
; EO 190 s. 1987 ; EO 264 s. Financial statements PD 379
1970 ; EO 292 s. 1987 ; EO ; PD 417
318 s. 1950 ; EO 390 s. 1972 Professional ethics ACT
; EO 462 s. 1934 ; EO 464 3815 ; ARTICLE XI (1987
s. 2005 ; PD 807 ; RA 10 ; CONSTITUTION) ; CA 626 ;
RA 379 ; RA 386 ; RA 1379 EO 2 s. 2010 ; EO 50 s. 1903
; RA 3019 ; RA 6028 ; RA ; EO 264 s. 1940 ; PD 1409 ;
6713 ; IRR of RA 6713 ; RA RA 10 ; RA 2260 ; RA 3019
6734 ; RA 7160 ; RA 9135 ; ; RA 6713 ; RA 6770 ; RA
RA 9189 ; IRR of RA 9485 ; 7160 ; RA 9514
RA 9514 Prohibition CA 626 ; RA 3019
Complaints against EO 442 s. Public property SEE Government
1991 property
Corrupt practices ACT 1740 Public records SEE Public records
; ACT 3815 ; BP 242 ; BP accessibility
871 ; PD 46 ; EO 5 s. 1909 Public records ACT 12 ; EO 21 s.
; EO 6 s. 1910 ; EO 6 s. 1966 1966
; EO 13 s. 1908 ; EO 148 s. Examinations CA 325
1928 ; EO 318 s. 1950 ; EO Public records accessibility EO 17
390 s. 1972 ; RA 1060 ; RA s. 1913 ; EO 89 s. 1993
1379 ; RA 2260 ; RA 3019 ; Public Service Commission
RA 7080 Management Transfer to General
Discipline ACT 1096 ; BP 242 Auditing Office CA 325
; BP 871 ; EO 6 s. 1966 ; EO Public Services SEE Municipal
7 s. 1922 ; EO 11 s. 1908 ; services
EO 12 s. 1913 ; EO 13 s. 1908 Public Utility Commission
; EO 21 s. 1966 ; ; EO 264 s. Amendments ACT 3192
1940 ; EO 292 s. 1987 ; EO Repealed ACT 3192
264 s. 1970 ; EO 276 s. 1940
865
Public Utility Commissioner Rice

Code of Conduct ACT 3192 Prices
Purchase and Supply, Division of Laws and regulations RA
Transferred to Committee on 4643
Contracts EO 43 s. 1947 Rice and Corn Administration
Purchasing Agent Amendments RA 4643
Code of Conduct EO 48 s. 1914
Professional ethics EO 48 s. S
1914
SALN SEE Statement of Assets,
R Liabilities and Net Worth
Salvage Warehouse
RCA SEE Rice and Corn Transferred to Industrial
Administration Division EO 43 s. 1947
Real estate tax RA 4709 Sandiganbayan ARTICLE XI (1987
Real property CONSTITUTION)
Valuation PD 25 ; PD 76 ; Amendments EO 101 s. 1986
PD 434 ; PD 1606 ; PD 1629 ; RA
Regional Governor 8249
Code of Conduct RA 6734 Creation PD 1486
Dismissal of RA 6734 Reorganization RA 7975
Reimbursement of supply account Rules and practice PD 1606
EO 108 s. 1909 Separation of powers EO 464 s.
Reorganization Act of 1950 2005
Rules and practice EO 399 s. Smuggling
1951 Prevention EO 6 s. 1966
Resident Ombudsman Special and Fiduciary Funds
Qualification AO 10 s. 2001 Abolition PD 1374
Responsibility AO 10 s. 2001 Special Investigations, Office of PD
Retirement benefits SEE 1486
Postemployment Benefits Special Prosecutor, Office of the
Retirement pensions SEE Pensions Named ARTICLE XI (1987
Revenue ACT 749 CONSTITUTION)
Revenue Performance Evaluation Special Task Force Against
Board Irregularities Committed in
Creation RA 9335 Agencies Attached to or Under the
Revised Election Code Department of Finance
Amendments RA 3522 Creation EO 156 s. 1999
Revised Penal Code ACT 3815 Standards, Bureau of
Amendments RA 379 Creation RA 4109
Reward and Incentive Fund Standards, Division of
Creation RA 9335 Converted to Standards, Bureau
Reward system for information PD of RA 4109
1608
866
Statement of Assets, Liabilities and Tax amnesty PD 213 ; PD 370 ;

Net Worth (SALN) ARTICLE XI PD 631 ; PD 1840 ; RA 9480
(1987 CONSTITUTION) ; EO 13 Tax returns PD 213
s. 2010 ; EO 292 s. 1987 ; PD Telegrams services SEE Telegraph
379 ; PD 417 ; PD 434 ; PD 555 Services
; PD 563 ; PD 677 ; PD 631 ; Telegraph services
PD 1740 ; PD 1840 ; RA 3019 ; Laws and regulations EO 67
RA 3047 ; RA 6713 ; IRR of RA s. 1927
6713 ; RA 9480 Textile articles
Export-Import Trade RA 4653
T Theft PD 133
Trade regulation RA 4712
Tanodbayan Transparency EO 21 s. 1966 ; EO
Amendments PD 1607 25 s. 2001 ; EO 33 s. 1906 ; EO
Creation PD 1487 48 s. 1909 ; EO 662 s. 2007 ; EO
Organization PD 1487 ; PD 662-A s. 2007 ; EO 662-B s. 2008
1607 ; RA 1379 ; RA 1405 ; RA 3522 ;
Renamed ARTICLE XI (1987 IRR of RA 6713 ; RA 9155 ; RA
CONSTITUTION) 9485 ; IRR of RA 9485
Tanodbayan Decree of 1977 PD Laws and regulations EO 89
1487 s. 1993
Tariff and Customs Code of the Transportation
Philippines Officials and employees
Amendments RA 4712 ; RA Discipline EO 12 s. 1913
9135 Travel costs
Task Force Officials and employees
Customs, Bureau of EO 156 s. Laws and regulations EO
1999 75 s. 1927 ; EO 108 s.
Economic Intelligence and 1913
Investigation Bureau EO 156 Treasury Bureau, Administration of
s. 1999 EO 27 s. 1904
Garment and Textile Export Trials (Military offenses) PD 1822
Board EO 156 s. 1999 ; PD 1822-A ; PD 1850
Immigration and Deportation, Tubbataha Reefs
Bureau of EO 156 s. 1999 Conservation RA 10067
Internal Revenue, Bureau of Government policy RA 10067
EO 156 s. 1999 Preservation RA 10067
National Bureau of Investigation Protection RA 10067
EO 156 s. 1999 Tubbataha Reefs Natural Park
Philippine National Police EO Creation RA 10067
156 s. 1999 Tubbataha Reefs Natural Park
Securities and Exchange (TRNP) Act of 2009 RA 10067
Commission EO 156 s. 1999
867
U V
Uniform Government Corporate Vice-President
Charter Professional ethics EO 317 s.
Proclamation EO 399 s. 1951 2000
Untaxed income PD 370 ; PD 631 Violence in Children
; PD 1740 ; PD 1840 ; RA 9480 Prevention RA 9262
Used Clothing and Rags Violence in domicile Act 3815
Export-Import Trade RA 4653 Violence in dwelling Act 3815
Usurpation ACT 190 RA 379 Violence in Women
Usurpation of Public Authority RA Prevention RA 9262
10 Voluntary Contributions EO 13 s.
Usury Law 1907 ; EO 20 s. 1907 ; EO 75 s.
Amendments RA 23 1927 ; EO 108 s. 1913
868

Laws & Executive Issuances: Public Accountability (1903-2010)

Enviado por

Dados do documento

Título original

Direitos autorais

Formatos disponíveis

Compartilhar este documento

Compartilhar ou incorporar documento

Opções de compartilhamento

Você considera este documento útil?

Este conteúdo é inapropriado?

Direitos autorais:

Formatos disponíveis

Laws & Executive Issuances: Public Accountability (1903-2010)

Enviado por

Direitos autorais:

Formatos disponíveis

LAWS & EXECUTIVE ISSUANCES

public oﬃce as a public trust vests

Beyond the use of public funds in the performance of public

This compendium of Philippine laws and execuve issuances

Laws and execuve issuances craed from the American

This is the ﬁh book in our series of topical compilaon

I acknowledge and commend the reless eﬀorts devoted

FELICIANO BELMONTE, JR.

We are grateful to the the Honorable Speaker Feliciano

Many mes, we have been asked why we are publishing

Our objecve is to bring our laws and their implemenng

That this compendium brings together all laws and execuve

To our legislators, past and present, and the Filipino

MARILYN B. BARUA YAP

PUBLIC LAWS PAGE

ACT NO. 190 12

ACT NO. 328 13

PUBLIC LAWS PAGE

ACT NO. 749 14

ACT NO. 839 16

ACT NO. 1044 17

ACT NO. 1054 19

PUBLIC LAWS PAGE

ACT NO. 1072 21

ACT NO. 1096 27

ACT NO. 1161 29

ACT NO. 1373 30

ACT NO. 1605 31

PUBLIC LAWS PAGE

ACT NO. 1726 33

ACT NO. 1739 35

ACT NO. 1740 44

ACT NO. 1980 46

PUBLIC LAWS PAGE

ACT NO. 3192 54

ACT NO. 3815 56

COMMONWEALTH ACTS PAGE

COMMONWEALTH ACT NO. 320 75

COMMONWEALTH ACT NO. 325 78

COMMONWEALTH ACT NO. 327 80

COMMONWEALTH ACT NO. 598 82

COMMONWEALTH ACT NO. 626 84

BATAS PAMBANSA PAGE

BATAS PAMBANSA BLG. 242 85

BATAS PAMBANSA BLG. 871 86

REPUBLIC ACTS PAGE

REPUBLIC ACT NO. 10 88

REPUBLIC ACT NO. 23 89

REPUBLIC ACT NO. 379 90

REPUBLIC ACT NO. 386 91

REPUBLIC ACTS PAGE

REPUBLIC ACT NO. 1051 95

REPUBLIC ACT NO. 1060 97

REPUBLIC ACT NO. 1379 99

REPUBLIC ACT NO. 1405 104

REPUBLIC ACT NO. 2260 106

REPUBLIC ACT NO. 3019 112

REPUBLIC ACTS PAGE

REPUBLIC ACT NO. 3047 120

REPUBLIC ACT NO. 3522 121

REPUBLIC ACT NO. 4109 122

REPUBLIC ACT NO. 4643 125

REPUBLIC ACT NO. 4653 127

This compendium of Philippine laws and execuve issuances

Laws and execuve issuances craed from the American

This is the ﬁh book in our series of topical compilaon

I acknowledge and commend the reless eﬀorts devoted

Many mes, we have been asked why we are publishing

Our objecve is to bring our laws and their implemenng

That this compendium brings together all laws and execuve