THIRTEENTH CONGRESS OF THE REPUBLIC 
) 
OF THE PHILIPPINES 
First Regular Session 
S E N A T E  
S. No. 
Introduced by Senator S. R. OsmeAa 111 
EXPLANATORY NOTE 
Riding high on the euphoric triumph at EDSA in overthrowing a twenty- 
year-old dictatorship, the Aquino administration created the Presidential 
Commission on Good Government (PCGG) on February 28, 1986 by Executive 
Order No. I. The PCGG was created for a specific purpose- that of recovering 
the ill-gotten wealth accumulated by the Marcoses and their cronies during the 
twenty years of the dictatorship, and preventing the dissipation of the assets 
involved. This specific task implies a time bound, albeit unspecified, to the 
existence and operation of the PCGG. 
Fifteen years after its creation, the PCGG has produced little by way of 
accomplishments and actual results to justify its continued existence. The vast 
discretionary powers vested in the PCGG constitute dangerous opportunities for 
misuse of power and authority. 
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This bill proposes the abolition of the PCGG and the transfer of its 
functions to the Department of Justice, which is in keeping with the government 
policy of trimming off excess units and streamlining the bureaucracy. 
In view of the foregoing, early passage of this bill is earnestly requested. 
SERGIO OSMENA 111 
Senator 


THIRTEENTH CONGRESS OF THE REPUBLI 
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OF THE PHILIPPINES 
1 
First Regular Session 
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I d  
S E N A T E  
S. No 
Introduced by Senator S. R. OsmeAa 111 
AN ACT 
ABOLISHING THE PRESIDENTIAL COMMISSION ON GOOD GOVERNMENT 
AND 
TRANSFERRING 
ITS 
POWERS 
AND 
FUNCTIONS 
TO 
THE 
DEPARTMENT OF JUSTICE AND FOR OTHER PURPOSES 
Be it enacted by the Senate and House of Representatives of the Philippines in 
Congress assembled: 
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SECTION 1. 
Abolition of PCGG. - The Presidential Commission on 
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Good Government (PCGG) created under Executive Order No. 1, dated 
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February 28, 1986 is hereby abolished under this Act. 
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SEC. 
2. 
Transfer of PCGG’s Powers and Functions to the 
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Department of Justice; Creation of the Special Division for Sequestered 
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Assets and Properties. - (1) The powers and functions of the PCGG are hereby 
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transferred to the Department of Justice (DOJ) through a Special Division for 
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Sequestered Assets and Properties (hereinafter referred to as “The Special 
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Division”), which shall be created in the Department of Justice (DOJ) specifically 
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for that purpose. 
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(2) The Special Division shall be headed by one of the Undersecretaries of 
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the DOJ, upon designation by the President of the Philippines. 
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SEC. 3. Transfer of Sequestered Assets and Properties to the Special 
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Division. - All sequestered and frozen properties and assets which, upon the 
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effectivity of this Act, are under the control and management of the PCGG, are 
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likewise transferred to the DOJ for the same purpose as they were held by the 
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PCGG. For this purpose, the DOJ shall, with the assistance of the Commission 
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on Audit and within thirty (30) days from the effectivity of this Act, conduct a 
complete accounting and physical inventory of all sequestered and fr.ozen I 
properties and assets to such transfer. 
SEC. 4. Transfer of all PCGG's Equipment and Personnel to the DOJ. - 
All Property, equipment, records and funds of the PCGG, and such personnel of 
the PCGG of proven competence, integrity and probity as may be necessary 
pursuant to the determination of the Secretary of the DOJ, are hereby transferred 
to the DOJ. 
SEC. 5. Separated Employees: Benefits. - Employees separated from 
the service as a result of the abolition of the PCGG shall receive the benefits to 
which they are entitled under existing laws, rules and regulations. 
SEC. 6. Effectivity of Contracts and Agreements. - All contracts and 
agreements entered into the PCGG prior to the effectivity of this Act shall remain 
in full force and effect unless otherwise terminated, modified or amended for 
lawful cause by the Secretary of Justice. 
SEC. 7. DirectorslNominees and Fiscal Agents: Yo Continue in Hold- 
Over Capacity. - All directorshominees, fiscal agents or representatives 
assigned by the PCGG in sequestered companies shall continue as such in a 
hold-over capacity and receive the corresponding salaries and benefits until the 
appointment of their successors by the Secretary of Justice. 
SEC. 8. Submission of Statement of Net Worth, Assets and 
Liabilities. - (1) Every directorhominee, fiscal agent or representative assigned 
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by the PCGG, prior to the effectivity of this Act, in an sequestered company shall 
submit to the Secretary of Justice a written and verified statement of his net 
worth, assets and liabilities before his appointment/designation as such as well 
as of his current net worth, assets and liabilities. Such statements shall be 
submitted to the Secretary of Justice within thirty (30) days from the effectivity of 
this Act. 
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(2) Every person appointed/designated by the Secretary of Justice, under 
this Act, as a director/nominee, fiscal agent or representative in any sequestered 
company shall, within thirty (30) days from the assumption of his functions, 
submit to the Secretary of Justice a written verified statement of his net worth, 
assets and liabilities. He shall likewise be required to submit such a similar I 
statement after his separation from the service. 
SEC. 9. Implementing Rules and Regulations. - The Secretary of 
Justice shall promulgate and issue such rules and regulations as may be 
necessary for the effective implementation and enforcement of the provisions of 
this Act. 
SEC. I O .  Appropriations. - The unexpended appropriations of the PCGG 
under the current General Appropriations Act shall be transferred to the 
Department of Justice for the operations of the Special Division. Thereafter, such 
amount as may be necessary for the continued operation of the Special Division 
shall be included in the annual appropriation of the DOJ. 
SEC. 11. Repealing Clause. - All laws, decrees, orders, rules and 
regulations and other issuances inconsistent with the provisions of this Act are 
deemed modified, revoked re repealed accordingly. 
SEC. 12. Effectivity. This Act shall take effect fifteen (15) days after its 
publication in two (2) leading newspapers of national circulation. 
Approved, 
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