14'h Congress of the Republic ) 
of the Philippines 
) 
1' Regular Session 
) 
S B A  2 
7 JUN 30 P5:i.l; 
Introduced by Senator Aquilino Q. Pimentel, Jr. 
Explanatory Note 
This legislative measure seeks to abolish the Presidential Commission on 
Good Government (PCGG) created under Executive Order No. 1 issued by 
former President Corazon C. Aquino on February 28, 1986. 
Twenty (20) years after its creation, PCGG has not produced significant 
accomplishments that would justify its continued existence. 
Under this bill, the powers and functions of investigations and prosecution 
of criminal and civil cases exercised by the PCGG shall be transferred to the 
Office of the Special Prosecutor, Ombudsman of the Philippines, while the 
management and the disposition of the assets and properties vested in the 
PCGG shall be transferred to, and shall be exercised by the Department of 
Finance through its Privatization Office. Furthermore, all sequestered real and 
personal assets and properties previously under the control and management of 
the PCGG, as well as all contracts, records and documents relating to the 
operation of the PCGG are transferred to the Privatization Office. 
PCGG officials and'employees who shall be separated from the service as 
a result of the abolition of the PCGG whether permanent, contractual or casual, 
shall be given gratuities equivalent to two (2) months salary for every year of 
service without prejudice to other benefits to which they are entitled under 
existing laws and regulations. 
In view of the foregoing, the passage of this bill is earnestly requested 
+tQ 
A UlLlNO Q. P MENTEL, JR. 


. 
14'h Congress of the Republic ) 
of the Philippines 
) 
Ist Regular Session 
) 
7 JUii 30 P5:IT 
~ 
~ 
Introduced by Senator Aquilino Q. Pimentel, Jr. 
AN ACT ABOLISHING THE PRESIDENTIAL COMMISSION ON GOOD 
GOVERNMENT (PCGG) 
Be if enacted by the Senate and the House of Representatives of the 
Philippines in Congress assembled: 
SECTION 1. The Presidential Commission on Good Government (PCGG) 
created under Executive Order No. 1, shall be abolished within one (1) year after 
the approval of this Act. 
SECTION 2. The powers and functions of investigations and prosecution 
of criminal and civil cases exercised by the PCGG shall be transferred to the 
Office of the Special Prosecutor, Ombudsman of the Philippines. 
For this 
purpose, all records and documents relating to the investigation and prosecution 
of cases under the jurisdiction of the PCGG shall be transferred to the said office. 
SECTION 3. The management and the disposition of the assets and 
properties vested in the PCGG shall be transferred to, and shall be exercised by 
the Department of Finance through its Privatization Office. For this purpose, all 
sequestered real and personal assets and properties previously under the control 
and management of the PCGG, as well as all contracts, records and documents 
relating to the operation of the PCGG are transferred to the Privatization Office. 
In coordination with the Commission on Audit, a physical inventory and 
complete accounting of the sequestered properties and assets shall be jointly 
made by the Office of the Special Prosecutor and the Privatization Office within 
sixty (60) days after the effectivity of this Act. 
The Privatization Office shall be headed by an Assistant Secretary, to be 
designated by the Secretary of the Department of Finance. 
SECTION 4. All properties, equipment, and funds of the PCGG are 
hereby transferred to the Privatization Office, for the same purposes as they 
were held by the PCGG, subject to the provisions stated in Sections 2, 3, and 9 
hereof. 
SECTION 5. Only PCGG officials and employees who are competent, 
honest and dedicated to duty may be absorbed by the Office of the Special 
Prosecutor and by the Privatization Office. PCGG officials and employees who 
shall be separated from the service as a result of the abolition of the PCGG 
whether permanent, contractual or casual, shall be given gratuities equivalent to 
two (2) months salary for every year of service without prejudice to other benefits 
to which they are entitled under existing laws and regulations. For this purpose, 
the amount of Sixty Million Pesos (P60,000,000.00) is hereby allotted to be 
sourced from the PCGG's recoveries. 


Any PCGG officer and employee who are reemployed in the government 
service for which helshe has been paid gratuity, shall refund the unearned 
portion of such gratuity before his or her reemployment. 
SECTION 6. All contracts and agreements entered into by 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. 
SECTION 7. All directorslnominees, asset monitors or representatives 
assigned by the PCGG to the sequestered and surrendered companies shall 
continue as such in a hold-over capacity and shall receive the corresponding 
salaries, emoluments and benefits until the appointment of their successors as 
recommended jointly by the Ombudsman and the Secretary of the Department of 
Finance for the approval of the President. 
Every directorhominee, asset monitor or representative 
assigned by the PCGG in any sequestered companylcorporation, prior to the 
effectivity of this Act, shall submit to the Special Prosecutor and the Secretary of 
the Department of Finance, a written and verified statement of hidher net worth, 
assets and liabilities before hislher appointment / designation as such as well as 
of hidher current net worth, assets and liabilities within thirty (30) days from the 
effectivity of this Act. 
Every person appointed I designated as a director / nominee, asset 
monitor or representative in any sequestered / surrendered companylcorporation 
under this Act, shall within thirty (30) days from the assumption of hislher 
functions, submit to the Special Prosecutor and Secretary of the Department of 
Finance, a written verified statement of hislher net worth, assets and liabilities. 
He shall likewise be required to submit a similar statement within thirty (30) days 
after his l her separation from the service. 
SECTION 8. 
SECTION 9. The unexpended appropriations of the PCGG under the 
current General Appropriations Act shall be transferred to the Office of the 
Special Prosecutor and the Privatization Office: Provided, That in the allocation 
of the appropriation, sixty (60) and forty (40) percentum shall be allocated for the 
Office of the Special Prosecutor and the Privatization Office, respectively. 
Thereafter, such amount as may be necessary for the continued operation of the 
Office of the Special Prosecutor and the Privatizatiop Office shall be included in 
the annual appropriation of the Ombudsman and the Department of Finance. 
SECTION I O .  All laws, executive orders, rules and regulations or any part 
thereof inconsistent herewith are deemed repealed, modified or amended 
accordingly. 
SECTION 11. Separability Clause. In case any provision of this Act is 
declared unconstitutional or invalid, the other provisions hereof which are not 
affected thereby shall continue in full force and effect. 
SECTION 12. Effectivity. - This Act shall take effect fifteen (15) days 
after its publication in two (2) national newspapers of general circulation. 
Approved,