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*Q4 &!Pi 
30 P 5 :I 6 
THIRTEENTH CONGRESS OF THE REPUBLI 
OF THE PHILIPPINES 
1 
First Regular Session 
) 
S E N A T E  
S. No. 11 
Introduced by Senator S. R. OsmeAa 111 
EXPLANATORY NOTE 
The Gini-coefficient is a measure of a countries income distribution. A 
Gini-coefficient of 0.5 to 0.75 implies an extremely high unequal income 
distribution while a Gini-coefficient of 0.20 to 0.35 is indicative of a relatively 
equitable income distribution. Based on the 2002 National Statistical Yearbook, 
the said coefficient for the Philippines has ranged between, 0.4507 to 0.4872, 
thus, implying that income ‘distribution is indeed a problem. Moreover, . as’ 
recorded in the National Statistical Yearbook, in 1991, 28.1 19 million Filipinos 
were living in poverty and this increased to 30.850 million Filipinos in 2000. 
Such figures serve to further support the growing incidence of poverty in 
this nation and underscore the importance of the role on non-governmental 
organizations in assisting government in the provision of basic social services 
required in the fight against poverty. 
It is with this in mind that this bill is hereby proposed. This bill seeks to 
encourage the participation of NGOs in the development of this nation by 
requiring government 
to 
provide 
assistance to 
NGOs 
and 
People’s 
Organizations. The bill further provides that any NGO or People’s Organization 
shall be eligible for financial support (e.g. loans, grants, etc.) or any other type of 
assistance that it requests for as long as it meets certain criteria. These criteria 
include: (1) record of performance, (2) suitability of organizational structure and 
competence of volunteers, and (3) financial management capability. 
In view hereof, the approval of this measure is highly recommended. 
SERGIO OSMENA 111 
Senator 
/rlg 


THIRTEENTH CONGRESS OF THE REPUBLIC 
1 
OF THE PHILIPPINES 
1 
First Regular Session 
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w :. 
S E N A T E  
S. No. 11 
Introduced by Senator S. R. OsmeAa 111 
AN ACT 
GOVERNMENTAL ORGANIZATIONS AND STRENGTHEN THEIR ROLE IN 
NATIONAL DEVELOPMENT 
TO ENCOURAGE THE PARTICIPATION OF PEOPLE'S AND NON- 
Be it enacted by the Senate and House of Representatives of the Philippines in 
Congress assembled: 
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SECTION 1. Shod Title. - This Act shall be known as the "PO-NGO 
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Empowerment Act of 2004" 
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SEC. 2. Declaration of Policy. - The State recognizes the indispensable 
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role of people's and non-governmental organizations in carrying. out activities that ' 
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promote the welfare of the majority of the population, particularly the 
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disadvantaged sectors and hereby adopts a policy of encouragement and 
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support for people's organizations (POs) and nongovernmental organizations 
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(NGOs) as hereinafter defined. To this end, the government shall take measures 
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to provide POs and NGOs the opportunities to participate in and assist in 
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government programs for national development. 
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SEC. 3. Scope and Coverage.- All people's or nongovernmental 
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organizations organized for legitimate purposes and operating within the 
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democratic framework shall be allowed to participate in government programs 
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and be eligible for assistance from the government. 
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SEC. 4. Definition of Terms- As used in this Act, the following terms 
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shall be construed as follows: 


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(a) ”People’s organizations” hereinafter referred to as POs, are bona fide 
associations of citizens with demonstrated capacity to promote public interest 
and with identifiable leadership, membership and structure. 
(b) “Nongovernmental organizations’ hereinafter referred to as NGOs, also 
known as private voluntary organizations or voluntary agencies, are private, non- 
profit or nonstock organizations, registered with the Securities and Exchange 
Commission (SEC) and engaged in medium or long-term activities, however 
financed or organized, such as but not limited to, community organizing, 
community education, sectoral development, humanitarian or charity work, 
disaster relief, family planning, physical and social rehabilitation, and social 
amelioration. 
(c) “Umbrella nongovernmental organization” refers to an NGO registered 
with the SEC which maintains a membership consisting of POs or NGOs, 
whether or not registered with the SEC, for the purpose of promoting, financing, 
coordinating or consolidating PO/NGO activities and projects as enumerated in 
the immediately preceding paragraphs. 
(d)”lmplementing agency” refers to any government subdivisions, agency 
or instrumentality, whether national or local, including government -owned or 
controlled corporations, which assists, facilitates and supports people’s and\ 
nongovernmental organizational activities and projects or delivers goods and 
services to the public with the assistance of or in cooperation with people’s or 
nongovernmental organization, for which purpose, funds have been accordingly 
appropriated or are available therefor from the Official Development Assistance 
(ODA) or any other source. 
(e) “Participation” refers to any activity, service, project or program 
component of any of the implementing agencies under which any legitimate 
POINGO may be eligible for assistance and thereafter be allowed to enter into a 
contract or memorandum of agreement with the concerned implementing 
agency. 
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SEC. 5. Assistance and Support fo POs/NGOs.- A people’s or 
nongovernmental organization which has duly applied for assistance with the 
concerned implementing agency shall be eligible for financial and other 
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assistance to carry out projects and activities which the implementing agency 
deems proper for the execution and implementation by a people’s or 
nongovernmental organization: Provided, That such implementing agency shall 
utilize its own programs. The assistance may consist of: 
(a) project grants; 
(b) Matching loans; 
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(c) Concession loans; 
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(d) Technical, training and organizational development suppo ; and 
(e) Such other assistance or support as may be mutually f 
etermined to 
appropriate and proper by the secretary or head of the department, commission 
or agency and by the representatives of POs/NGOs accredited by the 
imp le men tin g agency . 
The arrangements for assistance to POs/ NGOs shall be made in writing, 
either in contract form or through a memorandum of agreement stating therein 
the terms and conditions for the grant of financial support by the implementing 
agency. The following stipulations shall be included in such contract form or 
memorandum of agreement: 
(1) Duration of the agreement or contract; 
(2) Amount involved for‘the project; 
(3) Terms and conditions of disbursements; 
(4) Reports to be submitted periodically by POs/NGOs; 
(5) Verification of reports and provision for performance inspections; and 
(6) Audit of funds released to POs/ NGOs. 
SEC. 6. Application and Nigibility for Assistance.- A PO or NGO, 
seeking to avail of government support or assistance as provided in Section 5 
hereof, shall submit a project proposal to the implementing agency concerned. 
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The implementing agency concerned shall determine the requirements and 
conditions to complied with by the applicant PO/NGO for the availment of 
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applications of the PO/NGO. 
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A people’s or nongovernmental organization may apply for government 
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assistance through the sponsorship of an umbrella NGO of which the applicant 
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PO/NGO is a member. In such event, the umbrella NGO shall be a party 
assistance, with due disregard for the expeditious and efficient processing of the 
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signatory to the contract to entered into between the concerned implementing 
agency and the applicant POINGO, for and in behalf of the latter mentioned 
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applicant PO/NGO. 
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Any application of a PO/NGO for government assistance and support shall 
be free from all fees and charges, such as but not limited to, filing fees, 
processing fees and service fees. 
The implementing agency shall be guided by the following criteria in 
evaluating any application for government assistance filed by a people’s or 
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nongovernmental organization: 
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(a) Record of performance or accomplishments of the PO/NGO; 
(b) Suitability of the organizational structure and competence of the 
volunteer or manpower complement of the PO/NGO to perform the service 
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activity or project being contracted; and 
(c) Whenever appropriate financial management capability of the 
PO/NGO. 
SEC. 7. implementing Rules and Regulations- Government assistance 
and support to POs/NGOs shall be primarily carried out by the implementing 
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agencies as defined in Section 4(d) of this Act. 
Within six (6) months after its enactment, the necessary core rules and 
regulations to effectively carry out the purposes of this Act, including guidelines 
on the manner of auditing funds disbursed to POs/NGOs, shall be promulgated 
jointly by the Secretary of Finance and the Secretary of Budget and Management 
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to be supplemented by operational regulations which will be issued thereafter by 
the head of the implementing agency extending assistance to qualified 
POs/NGOs: Provided, That such auditing guidelines shall, in accordance with 
existing audit rules, provide for the safeguarding, monitoring and reporting of 
released funds and promoted procedures which will not unduly hamper the 
ability, efficiency, flexibility and independence of POs/NGOs to implement or 
execute government-financed projects and activities: Provided, further, That the 
implementing agencies hall assist POs/NGOs in keeping and maintaining their % 
books of account and financial records consistent with existing government 
auditing rules: Provided, finally, That representatives of concerned committees in 
the House and the Senate, as well as at least five (5) representatives each of 
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POs/NGOs selected by the Department of Finance, the Department of Budget 
and Management, the Commission on Audit and the Office of the President, shall 
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be involved in drafting the said rules and regulations. 
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All concerned implementing agencies shall inform the public on the 
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availability of government assistance including information on the availability of 
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the ODA funds and other foreign sources using all possible forms of mass 
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communication. It shall be the responsibility of the implementing agencies to 
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publish and disseminate the rules and regulations therefor. Furthermore, such 
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implementing agencies shall maintain facilities and services for POs/NGOs at 
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their regional and provincial offices, if any, to make it more convenient for 
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SEC. 7. Separabilify Clause. If any provision of this Act or the 
POs/NGOs to avail of government assistance as provided in this Act. 
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application of such provision to any person or circumstance is held invalid for any 
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reason, the remainder of this Act or the application of such provision to other 
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persons of circumstances shall not be affected thereby. 
SEC. 9. Repealing Clause.- All laws, decrees, orders, letters of 
instruction, letters of implementation, rules and regulations, or parts thereof 
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inconsistent with any provision of this Act are hereby amended, modified, 
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this Act. 
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SEC.lO. €ffecfivity.- This Act shall take effect fifteen (15) days from the 
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date of its publication in at least two (2) national newspapers of general 
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circulation. 
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Approved, 
repealed or superseded insofar as they are inconsistent with the provisions of