, 
1 
SIXTEENTH CONGRESS OF THE REPUBLIC 
OF THE PHILIPPINES 
Second Regular Session 
SENATE 
S. B. No. 
2431 
) 
) 
) 
Introduced by Senator Miriam Defensor Santiago 
AN ACT 
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OCT 15 P3 :12 
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AMENDING SECTION 8 OF REPUBLIC ACT NO. 6713, ALSO KNOWN AS THE 
CODE OF CONDUCT AND ETHICAL STANDARDS FOR PUBLIC OFFICIALS 
AND EMPLOYEES PROVIDING FOR STATEMENTS AND DISCLOSURE 
EXPLANATORY NOTE 
The Constitution, Article II, Section 17, provides: 
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. 
Republic Act No. 6713 also known as the Code of Conduct and Ethical Standards 
for Public Officials mandates all government officials and employees, regardless of their 
salary grades, to use a uniform SALN form. 
In Flores v. Montemayorl , the Supreme Court emphasized the importance of 
complying with the constitutional mandate to submit the SALN form. It serves as the 
basis of the government and the people in monitoring the income and lifestyle of officials 
and employees in the government in compliance with the Constitutional policy to 
eradicate corruption, promote transparency in government, and ensure that all 
government employees and officials lead just and modest lives. It is for this reason that 
lOR No. 170146,25 August 2010. 


the SALN must be sworn to and is made accessible to the public, subject to reasonable 
administrative regulations. 
However, under the present SALN form, erring public officials are able to evade 
the intent of the law by not declaring the money donations received from individuals by 
reason of their position. Thus, there is a need to amend the law by requiring public 
officials with Salary Grade 27 and above or heads of office to use a more detailed SALN 
form, which will require the declaration of the gifts received, financial transactions, and 
travels for the year. 
In addition, under the current SALN guidelines issued by the Civil Service 
Commission, the acquisition cost of the real properties is used as the basis of computing 
the net worth. However, this cannot curb the practice of undervaluing the acquisition 
cost for purposes of avoiding the payment of higher taxes and underdeclaring the 
property in the SALN. The buyer and seller of a property may state a price, which is less 
than the fair market value, in the deed of sale. Thus, in order to reflect the true wealth of a 
government official, this bill further provides that for purposes of computing the 
declarant's net worth, the current fair market value of the real property indicated in 
the tax declaration of the real property concerned shall be used. 
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SIXTEENTH CONGRESS OF THE REPUBLIC 
OF THE PHILIPPINES 
Second Regular Session 
) 
) 
) 
SENAT..J;: 
S. B. No. 
~431 
Introduced by Senator Miriam Defensor Santiago 
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CT 15 P3 :12 
Be it enacted by the Senate and the House of Representatives of the Philippines in 
Congress assembled: 
AN ACT 
AMENDING SECTION 8 OF REPUBLIC ACT NO. 6713, ALSO KNOWN AS THE 
CODE OF CONDUCT AND ETHICAL STANDARDS FOR PUBLIC OFFICIALS 
AND EMPLOYEES, PROVIDING FOR STATEMENTS AND DISCLOSURE 
SECTION 1. Section 8 ofRA 6713 is hereby amended to read as follows: 
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Section 8. Statements and Disclosure. - Public officials and employees have an 
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obligation to accomplish and submit declarations under oath of, and the public has the 
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right to lmow, their assets, liabilities, net worth and financial and business interests 
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including those of their spouses and of [unmarried] children [under eighteen (18) years of 
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age living in their households]. 
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ONLY IN RARE CIRCUMSTANCES, WHEN THE FINANCIAL INTEREST 
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OF A SPOUSE OR CHILD MEETS ALL THREE STANDARDS LISTED BELOW, 
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MAYA FILE OR OMIT DISCLOSURE OF AN ASSET: 
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(1) THE ITEM IS THE SOLE INTEREST OR RESPONSIBILITY OF THE 
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SPOUSE 
OR 
CHILD, 
AND 
THE 
REPORTING 
INDIVIDUAL 
HAS 
NO 
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KNOWLEDGE OF THE ITEM; 
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(2) THE ITEM WAS NOT IN ANY WAY, PAST OR PRESENT, DERIVED 
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FROM THE INCOME, ASSETS, OR ACTIVITIES 
OF 
THE REPORTING 
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INDIVIDUAL; AND 
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(3) TI-IE REPORTING INDIVIDUAL NEITHER DERIVES, NOR EXPECTS TO 
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DERIVE, ANY FINANCIAL OR ECONOMIC BENEFIT FROM THE ITEM. 
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(A) Statements of Assets and Liabilities and Financial Disclosure. - All public 
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officials and employees, except those who serve in an honorary capacity, laborers and 
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casual or temporary workers, shall file under oath their Statement of Assets, Liabilities 
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and Net Worth and a Disclosure of Business Interests and Financial Connections and 
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those of their spouses and r unmarried] children [under eighteen (18) years of age living in 
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their households]. 
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The two documents shall contain information on the following: 
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(a) real property, its improvements, acquisition costs, assessed value and current 
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fair market value; 
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(b) personal property and acquisition cost; 
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(c) all other assets such as investments, cash on hand or in banks, stocks, bonds, 
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and the like; 
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(d) liabilities, and; 
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(e) all business interests and financial connections. 
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The documents must be filed: 
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(a) within thirty (30) days after assumption of office; 
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(b) on or before April 30, of every year thereafter; and 
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(c) within thirty (30) days after separation from the service. 
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All public officials and employees required under this section to file the 
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aforestated documents shall also execute, within thirty (30) days from the date of their 
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assumption of office, the necessary authority in favor of the Ombudsman to obtain from 
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all appropriate government agencies, including the Bureau of Internal Revenue, such 
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documents as may show their assets, liabilities, net worth, and also their business 
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interests and financial connections in previous years, including, if possible, the year when 
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they first assumed any office in the Government. 
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THE CURRENT FAIR MARKET VALUE OF THE REAL PROPERTY 
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INDICATED IN THE TAX DECLARATION OF THE REAL PROPERTY 
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CONCERNED SHALL BE USED AS BASIS FOR COMPUTING THE NET WORTH. 
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Husband and wife who are both public officials or employees may file the 
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required statements jointly or separately. 
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The Statements of Assets, Liabilities and Net Worth and the Disclosure of 
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Business Interests and Financial Connections shall be filed by: 
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(1) Constitutional and national elective officials, with the national office of the 
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Ombudsman; 
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(2) Senators and Congressmen, with the Secretaries of the Senate and the House of 
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Representatives, respectively; Justices, with the Clerk of Court of the Supreme Court; 
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Judges, with the Court Administrator; and all national executive officials with the Office 
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of the President. 
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(3) Regional and local officials and employees, with the Deputy Ombudsman in 
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their respective regions; 
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(4) Officers of the armed forces from the rank of colonel or naval captain, with the 
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Office of the President, and those below said ranks, with the Deputy Ombudsman in their 
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respective regions; and 
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(5) All other public officials and employees, defined in Republic Act No. 3019, as 
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amended, with the Civil Service Commission. 
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PUBLIC OFFICIALS WITH SALARY GRADE 27 AND ABOVE (OFFICERS 
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WHO ARE UNDER THE JURISDICTION OF THE SANDIGANBA YAN) OR HEADS 
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OF OFFICE SHOULD USE A MORE DETAILED SALN FORM, WHICH INCLUDES 
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THE FOLLOWING: 
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1. 
GIFTS - INDICATE THE IDENTITY OF THE SOURCE, A BRIEF 
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DESCRIPTION, AND THE VALUE OF THE GIFTS. 
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2. 
FINANCIAL TRANSACTIONS SUCH AS, BUT NOT LIMITED TO, 
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SALE, DONATION, ASSIGNMENT, INCLUDING THE DATE AND AMOUNT OF 
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TRANSACTION. 
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3. 
TRAVELS -
REPORT ALL TRAVEL AND TRAVEL-RELATED 
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REIMBURSEMENTS FROM A SINGLE SOURCE AND CONNECTED TO 
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OFFICIAL BUSINESS WITH INFORMATION ON THE SOURCE, DATES, 
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PURPOSE OF THE TRAVEL AND ITINERARY. 
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SECTION 2. Separability Clause. - If any provision, or part hereof, is held invalid 
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or unconstitutional, the remainder of the laws or the provision not otherwise affected 
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shall remain valid and subsisting. 
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SECTION 3. Repealing Clause. - Any law, presidential decree or issuance, 
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executive order, letter of instruction, administrative order, rule or regulation contrary to 
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or inconsistent with the provisions of this Act is hereby repealed, modified, or amended 
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accordingly. 
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SECTION 4. Effectivity Clause. - This Act shall take effect fifteen (15) days after 
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its publication in at least two (2) newspapers of general publication. 
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Approved, 
/dpm 
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