Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City, Metro Manila

EIGHTEENTH CONGRESS
Second Regular Session

1234
House Bill No.

Introduced by Representative Evelina Escudero

EXPLANATORY NOTE

Executive Order No. 292, otherwise known as the Administrative Code of 1987 provides
for the mandate of the Office of the Government Corporate Counsel (OGCC) as the premier
law office of government-owned and controlled corporations (GOCCS), their subsidiaries, other
corporate offspring and government-acquired asset corporations

Every year, the OGCC handles an increasing number of requests for legal advice and cases,
in addition to the performance of its adjudicatory and other functions.

This bill is therefore being filed to efficiently and effectively address the expanding needs
of these government corporations, by re-defining, expanding, strengthening, rationalizing and
further professionalizing the OGCC. as an organization and upgrading the employee benefits.

In view thereof, the. approval of this proposed bill is earnestly sought.

tieatie/

EVELINA ESCUDERO


Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City, Metro Manila

EIGHTEENTH CONGRESS
Second Regular Session

7234
House Bill No.

Introduced by Representative Evelina Escudero

AN ACT
TO STRENGTHEN THE OFFICE OF THE GOVERNMENT
CORPORATE COUNSEL, BY REDEFINING, EXPANDING,
STRENGTHENING, RATIONALIZING AND FURTHER
PROFESSIONALIZING ITS ORGANIZATION, UPGRADING EMPLOYEE
BENEFITS, AND APPROPRIATING FUNDS THEREFOR

Be it enacted by the Senate and the House of Representatives of the Philippines in
Congress assembled:

SECTION 1. Declaration of Policy - It shall be the policy of the State to protect
and promote the welfare, rights and interests of government-owned and controlled
corporations, their subsidiaries, other corporate offsprings, including government
acquired asset corporations, government corporate entities and government
instrumentalities with corporate powers, government financial institutions, and other
government entities, including economic zones and state universities, referred to as
"government corporations".

Toward this end, the State shall require the improvement of legal services to
efficiently and effectively address the expanding needs of these government
corporations in accordance with its initiative towards an improved fiscal management
and good corporate governance.

SECTION 2. Jurisdiction and Mandate - Any Law to the contrary notwithstanding,
the Office of the Government Corporate Counsel ("OGCC") shall be the legal counsel
and principal law office of all government corporations. All government corporations
shall refer to the OGCC the following:


a) Alll legal questions for opinion and advice;
b) Prior to their execution, all contracts for review; and

c) All cases for representation before regular courts, quasi-judicial bodies,
administrative agencies and arbitral tribunals, provided that, the
Government Corporate Counsel ("GCC") may thereafter authorize the
government corporation's legal department as collaborating counsel to handle
cases, as the urgency or expediency of circumstances may warrant.

Moreover, as special and additional duties, the OGCC shall:

a) Conciliate, mediate, act as hearing officers or adjudicate all disputes or
controversies exclusively between government corporations;

b) Exercise control and supervision over the legal departments of all
government corporations;

c) Approve the engagement of private lawyers by the government corporations;
d) Serve as Corporate Secretary in all boards of government corporations; and

¢) Perform such other special works or functions necessary in the interest of
the service.

The OGCC shall be an independent and autonomous office attached to the
Department of Justice. All opinions and issuances of the OGCC shall be binding
on all government corporations.

SECTION 3. Expansion and Upgrading of Positions - The GCC shall have a
cabinet rank and the same prerogatives, salary, allowances, benefits and privileges as
the Presiding Justice of the Court of Appeals, He/she shall be assisted by a Deputy
Government Corporate Counsel ("DGCC") and twelve (12) Assistant Government
Corporate Counsels (“AGCC") who shalll have the rank, salary, allowances, retirement
benefits, and privileges of an Associate Justice of the Court of Appeals.

‘No person shall be appointed GCC, DGCC or ACC unless he/she is a natural-born
citizen of the Philippines and, for at least fifteen (15) years, has been engaged in the
practice of law in the Philippines. The number, rank, qualifications for appointment,
salary, allowances, retirement and other benefits, and privileges of the other members
of the legal staff shalll be as follows:

(a) Twenty (20) Government Corporate Attomey IV ("GCA IV") who
shall have the rank, salary, allowances, retirement benefits, and privileges of a
Regional Trial Court Judge. No person shall be appointed GCA IV unless
he/she is a natural-born citizen of the Philippines and, for at least ten (10) years,
has been engaged in the practice of law in the Philippines;


(b) Twenty (20) Government Corporate Attorney III ("GCA III") who
shall have the rank, salary, allowances, retirement benefits, and privileges of a
Metropolitan Trial Court Judge. No person shall be appointed GCA III unless
he/she is a Natural-born citizen of the Philippines and, for at least Five (5)
years, has been engaged in the practice of law in the Philippines;

(c) Twenty (20) Government Corporate Attorney II ("GCA II"), who shall
have the rank, salary, allowances, retirement benefits, and privileges of a
Municipal Trial Court Judge in Cities. No person shall be appointed GCA IT
unless he/she is a natural-born citizen of the Philippines and, for at least three
(3) years, has been engaged in the practice of law in the Philippines;

() Twelve (12) Government Corporate Attorney ("GCA I")No person
shall be appointed GCA I unless he/she is a natural-born citizen of the
Philippines and has been admitted to the Philippine Bar;

‘The GCC, DGCC and AGCC shall be appointed by the President of the Philippines,
the other members of the legal staff and administrative personnel shall be appointed by
the GCC. Appointments of the DGCC, AGCC and other members of the legal staff
shall be deemed permanent upon compliance with the prescribed qualification
standards under this law.

The administrative structure of the OGCC shall be organized into the Finance and
Accounting Services, the Human Resource and Management Services, the Case and
Records Management Services, the Library Management and Information Technology
Services and the Property and Supply Services.

The legal and non-legal staff of the OGCC occupying the positions affected by the
changes embodied in this Act at the time of its approval shall thereafter occupy and
discharge the duties and functions of the upgraded positions and receive the
corresponding salary, benefits and privileges without necessity of new appointment.

SECTION 4. Compensation - The basic monthly compensation of the OGCC
employees shall be as follows:

Position Salary Grade

From To

Government Corporate Counsel 30 31
Deputy Government Corporate Counsel 29 30
Assistant Government Corporate Counsel 29 30
Government Corporate Attorney IV 28 29
Government Corporate Attorney IIT 27 28



Government Corporate Attorney II 26 27

Government Corporate Attorney I 25 26

The non-legal personnel shall have the same compensation as that of their
counterparts in the Office of the Solicitor General and Court of Appeals.

‘The salaries, benefits and privileges of the personnel of the OGCC granted under
this Act shall further be increased to match any corresponding increase in salaries and
privileges subsequently granted to their respective counterparts in the judiciary.

SECTION 5. Personnel Benefits and Privileges - Provisions of other laws to the
contrary notwithstanding, the OGCC may provide its employees the following benefits:

I. Health care services through a health maintenance organization (HMO).
Expenses for the mandatory medical annual check-up of the GCC, the DGCC
and the AGCC shall be for the account of the office.

TI. Accident insurance for all employees to be procured by the office at its
‘own expense for travels while in the performance of official duties;

IIL Without prejudice to the efficiency of the service, scholarships for
deserving employees on official time and at the expense of the office to
upgrade their knowledge and skills; provided that, scholars under this
provision shall be selected on the basis of merit as determined by competitive
examination;

IV. A provident fund which shall consist of, but not be limited to contributions
made by the office and by its lawyers and employees to a common fund for
the payment of benefits to such lawyers or employees or their respective
beneficiaries/heirs.

SECTION 6. Seminar and other Professional Fees - Subject to availability of funds,
fees for relevant seminars, as well as professional membership fees for lawyers,
registration fees and related miscellaneous expenses incurred in completing the
Mandatory Continuing Legal Education (MCLE) shall be borne by the office.
Professional membership, registration fees including those for mandatory Continuing
Professional Education (CPE), and related miscellaneous expenses of other employees
holding positions for which a professional license is required by the office, shall also
be borne by the OGCC.


SECTION 7. Transportation Benefits - Subject to availability of funds, employees
shall be provided with contracted transportation services until such time that the office
can procure additional motor vehicles for this purpose.

SECTION 8. Other Benefits - Provisions of other laws to the contrary notwithstanding,
the legal staff of the OGCC are allowed to receive allowances, honorary and
reimbursement of reasonable expenses from the government corporations. Employees
ofthe OGCC may likewise be extended such benefits and privileges as are given to the
employees of their clients. Provided, that such allowances or honorary shall not
exceed one hundred percent (100%) of their basic salary as provided under the Salary
Standardization Law (Republic Act 6758),

In addition, any member of the legal staff may be designated by the GCC to act in
a concurrent capacity as corporate secretary of, or assigned to perform special or
additional tasks in, any of the government corporations and by virtue of such
designation or assignment, receive such additional compensation and privileges as
maybe granted them by the concerned government corporation.

SECTION 9. Attorney's fees and Special Assessment. - The OGCC is authorized to
receive twenty percent (20%) of all the money claims collected by, or awarded/
adjudged to government corporations in addition to the attorney's fees awarded by a
court, tribunal o panel, including awards/judgments, stipulated under court-approved
compromises.

The OGCC is hereby authorized to use such awards and attorneys fees to meet
contingencies, obligations and undertakings, or for employee salaries, allowances,
other benefits and incentives in Section 5 hereof, necessary or proper to promote
efficiency in the service as determined by the GCC.

The GCC is likewise authorized to make special assessments upon GOCCs to
similarly meet such contingencies, obligations and undertakings, or to provide for
employee salaries, allowances, other benefits and incentives, as may be warranted or
proper as determined by the GCC.

‘Attorney's fees and special assessments shall be deposited in an authorized
government depository as a trust liability and shall be made available for expenditure
without the need for a Cash Disbursement Ceiling, for purposes of upgrading facilities
and equipment, granting of employees’ incentive pay and other benefits, and defraying
such other incentive expenses not provided for in the General Appropriations Act as
may be determined by the GCC. In both cases, the usual accounting and auditing
procedures shall apply.


SECTION 10. Franking Privilege - All official matters and telegrams of the OGCC
addressed for delivery within the Philippines shall be received, transmitted and
delivered free of charge.

SECTION 11. Appropriations - The amount needed for employees’ salaries,
mandatory allowances and benefits under other laws, maintenance and other operating
expenses and capital outlay shall be appropriated in the budget of the OGCC under the
annual General Appropriations Act.

SECTION 12. Implementing Rules and Regulations - Within sixty (60) days from
the approval of this Act, the GCC, in consultation with the Secretary of the Justice and
Secretary of Budget and Management, shall promulgate such rules and regulations as
may be necessary to carry out the provisions of this Act.

SECTION 13. Repealing Clause - Provisions of Presidential Decree No. 1415
dated June 9, 1978, other provisions of Presidential Decree 1415, Executive Order 292
or the Revised Administrative Code of 1987, as amended, Executive Order 878 dated
March 4, 1983, Republic Act 6000 dated August 4, 1969 and other pertinent laws rules
and regulations shall remain in force and effect unless otherwise contrary or
inconsistent with the provisions of this Act.

SECTION 14. Separability Clause -If any of the provisions of this Act is declared
invalid or unconstitutional, the provisions not affected thereby shall continue to be in
full force and effect.

SECTION 15. Effectivity - This Act shall take effect after fifteen (15) days from its
publication in the Official Gazette or in a national newspaper of general circulation.

Approved,