Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City

SIXTEENTH CONGRESS
Second Regular Session

5046

HOUSE BILL NO.

EXPLANATORY NOTE

This bill proposes to enhance the provisions of Republic Act No. 1379 otherwise
known as “An Act Declaring Forfeiture In Favor Of The State Any Property Found To
Have been Unlawfully Acquired By Any Public Officer Or Employee And Providing For
The Proceeding Therefor.”

With the development of information devices and technology, criminal activities
became complex and sophisticated. In similar manner, criminals have employed means
to spirit away and conceal the proceeds of their criminal acts beyond the reach of the
State

The Office of the Ombudsman, as the principal agency tasked to recover illegally
acquired assets, has to step up in running after the ill-gotten wealth of any public officer
or employee. Thus, the need to expand the powers of the office and provide for
definition of illegally acquired assets as well as the presumptions on the illegality of the
acquisition of properties.

Foregoing considered, passage of the law is eamestly sought

Mu A


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Republic of the Philippines
HOUSE OF REPRESENTATIVES
Constitution Hills, Quezon City

SIXTEENTH CONGRESS
Second Regular Session

5046

HOUSE BILL NO.

Introduced by REPRESENTATIVE MARLYN L. PRIMICIAS-AGABAS

AN ACT
STRENGTHENING THE FORFEITURE POWERS OF THE STATE, AMENDING
FOR THE PURPOSE CERTAIN PROVISIONS OF REPUBLIC ACT NO. 1379,
OTHERWISE KNOWN AS “AN ACT DECLARING FORFEITURE IN FAVOR OF
THE STATE ANY PROPERTY FOUND TO HAVE BEEN UNLAWFULLY
ACQUIRED BY ANY PUBLIC OFFICER OR EMPLOYEE AND PROVIDING FOR
THE PROCEEDING THEREFOR”

Be il enacted by the Sena
Congress assembled.

and House of Repr

intatives of the Philippines in

Section 1, Section 1 (b) of R.A. No. 1379 is hereby amended to read as follows:

(B) “LEGALLY ACQUIRED PROPERTY” MEANS ANY REAL
OR PERSONAL PROPERTY, MONEY, OR SECURITIES WHICH
THE PUBLIC OFFICER OR EMPLOYEE HAS ACQUIRED FROM
THE PROCEEDS OF HIS SALARY, BENEFITS AND/OR OTHER
EMOLUMENTS, AND/OR FROM OTHER LAWFUL INCOME SUCH
AS, BUT NOT LIMITED TO, BUSINESS INTERESTS. IT SHALL
ALSO INCLUDE REAL OR PERSONAL PROPERTY, MONEY OR
SECURITIES WHICH THE PUBLIC OFFICER OR EMPLOYEE HAS,
AT ANY TIME, ACQUIRED BY INHERITANCE, OR BY DONATION
BEFORE HIS BECOMING A PUBLIC OFFICER OR EMPLOYEE, OR
ANY PROPERTY ALREADY PERTAINING TO HIM WHEN HE
QUALIFIED FOR PUBLIC OFFICE OR EMPLOYMENT, AND THE
INCOME FROM SAID PROPERTIES.

Sec. 2. Insert new Section 1 (C) to R.A. No. 1379 to read as follows:
(C) “ILLEGALLY ACQUIRED PROPERTY” SHALL REFER TO

THE PROPERTY NOT FALLING UNDER PARAGRAPH B OF THIS
SECTION. IT ALSO INCLUDES:


a PROPERTY UNLAWFULLY ACQUIRED BY THE
RESPONDENT, BUT ITS OWNERSHIP IS CONCEALED BY ITS
BEING RECORDED IN THE NAME OF, OR HELD BY, THE
RESPONDENT'S SPOUSE, ASCENDANTS, DESCENDANTS,
RELATIVES, OR ANYH OTHER PERSON EXCEPT IN THE
FOLLOWING INSTANCES:

1. WHEN THE RESPONDENT'S SPOUSE,
ASCENDANTS, DESCENDANTS, OR ANY OTHER
PERSON CAN PROVE THAT HE ACQUIRED SAID
PROPERTY FROM THE PROCEEDS OF HIS SALARY,
BENEFITS AND/OR EMOLUMENTS, OR FROM THE
PROCEEDS OF HIS BUSINESS INTERESTS,

2. WHEN THE REPONDENT'S SPOUSE, ASCENDANTS.
DESCENDANTS, OR ANY OTHER PERSON CAN
PROVE THAT THE PROPERTY WAS RECEIVED
THROUGH DONATION OR INHERITANCE FROM
OTHER PERSONS OTHER THAN RESPONDENT.

b. PROPERTY UNLAWFULLY ACQUIRED BY THE
RESPONDEHNT, BUT TRANSFERRED BY HIM TO ANOTHER
PERSON OR PERSONS.

©. PROPERTY DONATED TO THE RESPONDENT
DURING HIS INCUMBENCY, UNLESS HE CAN PROVE THAT THE
DONATION IS LAWFUL.

Sec. 3. Section 2 of R.A. No. 1379 is hereby amended to read as follows.

“SEC. 2. Filing of petition. - Whenever any public officer or
employee has acquired during his incumbency an amount of property
which is manifestly out of proportion to his salary as such public officer
or employee and to his other lawful income and the income from
[legitimately] LEGALLY acquired property, said property shall be
presumed prima facie to have been unlawfully acquired. The [Solicitor
General] OFFICE OF THE OMBUDSMAN, MOTU PROPIO OR upon
VERIFIED complaint by any [taxpayer-to-the-city-or_provincial-fiscal
who] PERSON shall conduct [a-previous-inquiry] A FACT-FINDING
INVESTIGATION [similar—to—preliminary—investigations— al
eases] TO DETERMINE IF [and-shall-certify-to-the-Solicitor General
that there_is_reasenable_ground-to-believe] THERE EXISTS PRIMA
FACIE EVIDENCE THAT A PROPERTY HAS BEEN UNLAWFULLY
ACQUIRED [that there-has-been-commitied_a-vielation-of this Actand
the-respendent is_probably-guilty-thereof] IT [,) shall file, in the name
and on behalf of the Republic of the Philippines, inthe-Court-of First

3] WITH THE SANDIGANBAYAN OR
THE APPROPRIATE REGIONAL TRIAL COURT where said public
officer or employee resides or holds office, a petition for a writ
commanding said officer or employee to show cause why the property



\ aforesaid, or any part thereof, should not be declared property of the
2 State: Provided, That no such petition shall be filed [within-one-year
3 before-any-general-eleation-of-within-three-months-before-any-special
4 elestion] AGAINST A PUBLIC OFFICER OR EMPLOYEE WITHIN
5 THE ELECTION PERIOD”

6 The resignation, dismissal or separation of the officer or

7 employee from his office or employment in the Government or in the
8 Government-owned or controlled corporation shall not be a bar to the
9 filing of the petition,  [Provided,-however,That-the-right-to-file-such
10 petition-shall-prescribe-after-four- years from-the-date-of- resignation,
i dismissal—or-separation-orexpiration-of -the-term—of-the-officer—or
2 employee-concerned;-except-as-to-those-who-have-ceased_to-hold
B office-within-ten-years-prior-to-the-approval-of-this-Aetin-which-case

MW the-proceedings-shall-prescribe—after_four-years—fram—the-approval
15 hereof]

16 Sec. 4. Insert new Sections 2-A and 2-B to R.A. No. 1379 to read as follows:

W SEC. 2-A. PRIMA FACIE PRESUMPTIONS. —

18 (1) WHENEVER ANY PUBLIC OFFICER OR EMPLOYEE HAS
19 ACQUIRED DURING HIS INCUMBENCY PROPERTY OR
20 PROPERTIES WHICH ARE MANIFESTLY OUT OF PROPORTION
21 TO HIS SALARY, AS SUCH PUBLIC OFFICER OR EMPLOYEE, AND
22 TO HIS OTHER LAWFUL INCOME, AND THE INCOME FROM
23 OTHER LEGALLY ACQUIRED PROPERTY/PROPERTIES, SAID
24 PROPERTY SHALL BE PRESUMED PRIMA FACIE TO HAVE BEEN
25 UNLAWFULLY ACQUIRED.

26 (2) FAILURE OF A PUBLIC OFFICER OR EMPLOYEE TO
27 FILE A STATEMENT OF ASSETS, LIABILITIES AND NETWORTH
28 WITHIN THE PERIOD PRESCRIBED BY LAW FROM DATE OF
29 ASSUMPTION TO OFFICE SHALL BE PRIMA FACIE EVIDENCE
30 THAT SAID PUBLIC OFFICER OR EMPLOYEE HAS NOT
31 PROPERTY, ASSET OR BUSINESS INTEREST TO DECLARE AT
32 THE BEGINNING OF HIS PUBLIC SERVICE.

(3) FAILURE OF A PUBLIC OFFICER TO FILE A
STATEMENT OF ASSETS, LIABILITIES AND NETWORTH FOR ANY
PARTICULAR YEAR AFTER ASSUMPTION TO OFFICE SHALL BE
PRIMA FACIE EVIDENCE THAT THE PUBLIC OFFICER OR
EMPLOYEE HAS NO OTHER INFORMATION TO DECLARE
OUTSIDE OF HIS DECLARATION IN HIS PRIOR SUBMISSIONS,
WITHOUT PREJUDICE TO ANY LIABILITIES THAT MAY HAVE
BEEN INCURRED UNDER EXISTING LAWS,

Al SEC, 2-B. ADVERSE CLAIM PRIOR TO FILING OF
42 PETITION. ~ WHEN, DURING OR AFTER THE FACT-FINDING
43 INVESTIGATION OF THE OFFICE OF THE OMBUDSMAN, IT


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APPEARS THAT THERE IS REASONABLE GROUND TO BELIEVE
THAT A PUBLIC OFFICER OR EMPLOYEE HAS UNLAWFULLY
ACQUIRED PROPERTY, THE SAID OFFICE , ON BEHALF OF THE
REPUBLIC OF THE PHILIPPINES. MAY FILE AN ADVERSE CLAIM
IN THE PROPER REGISTRY OF DEEDS, OR THE APPROPRIATE
PUBLIC REGISTRY, SETTING FORTH A DESCRIPTION OF THE
PROPERTY/IES COVERED BY THE FACT-FINDING
INVESTIGATION, AND THE CLAIM OF RIGHT OR INTEREST OF
THE STATE THEREIN AS POSSIBLE SUBJECTS OF FORFEITURE

Sec. 5. Section 4 of R.A, No. 1379 is hereby amended to read as follows:

“SEC. 4, Period TO [forthe] answer PETITION. - The
respondent shall have a period of fifteen days FROM NOTICE
within which to (present] FILE his answer.”

Insert new Section §-A to R.A. No. 1379 to read as follows:

SEC. 5-A_ AUTHORITY TO SELL PENDING FORFEITURE
PROCEEDING. ~ IN CASE THERE IS DANGER OF DEPRECIATION
TO THE VALUE OF THE PERSONAL PROPERTY OR SPOILAGE IN
CASE OF PERISHABLE PROPERTIES, UPON MOTION FILED BY
THE OFFICE OF THE OMBUDSMAN BEFORE THE PROPER
COURT, THE PERSONAL PROPERTY SUBJECT OF FORFEITURE
MAY BE SOLD AT PUBLIC AUCTION PENDING THE RESOLUTION
OF THE FORFEITURE PROCEEDING. THE PROCEEDS OF THE
SALE AT PUBLIC AUCTION SHALL BE HELD IN TRUST BY THE
OFFICE OF THE OMBUDSMAN UNTIL THE FORFEITURE
PROCEEDING IS FINALLY RESOLVED.

Sec, 7. Section 6 of R.A. No. 1379 is hereby amended to read as follows:

“SEC. 6. Judgment. ~ If the respondent is unable to show to the
satisfaction of the court that he has lawfully acquired the property in
question, then the court shall declare such property[,] forfeited in favor
of the State, and by virtue of such judgment the property aforesaid
shall become property of the State. Provided, THAT IF ANY
PROPERTY DECLARED FORFEITED IN FAVOR OF THE STATE
HAD BEEN LOST, DESTROYED OR HAD DEPRECIATED IN VALUE,
THE COURT MAY INCLUDE A DISPOSITION IN THE JUDGMENT,
OR ISSUE SUCH SUPPLEMENTA JUDGMENTS AS MAY BE
NECESSARY, TO FORFEIT SUCH FUNDS OR PROPERTIES
OWNED BY THE RESPONDENT AS MAY BE SUFFICIENT TO
SATISFY THE STATE'S CLAIM, PROVIDED, FURTHER, [Fhat-no
judgment-shall_be-rendered-within-six-months—before—any_general
election-or-within-three-months before any-special-election—The-Court
may.—in—addition—refer—thiscase—to—the—co Executive
Department—for—administrative—oi inal—action—or—both] THAT
THIRTY-FIVE PERCENT (35%) OF THE VALUE OF SUCH
PROPERTY FORFEITED IN A FINAL AND EXECUTORY ORDER OF



THE COURT SHALL BE EARMARKED AS ADDITIONAL FUNDING
FOR THEOFFICE OF THE OMBUDSMAN, PROVIDED, FURTHER
THAT IF THE PROPERTY IS NOT IN CASH, IT SHALL BE SOLD AT
PUBLIC AUCTION AND THE PROCEEDS THEREOF, AFTER
DEDUCTING THE ALLOCATED THIRTY-FIVE PERCENT (35%) FOR
THE OFFICE OF THE OMBUDSMAN, SHALL ACCRUE TO THE
GENERAL FUND.

8 Sec. 8. Section 7 of R.A. No. 1379 is hereby amended to read as follows

9 SEC. 7. Appeal. ~ The parties may appeal from the judgment
10 of the [Court-of First-Instance-as] PROPER COURT FORFEITING THE
ul PROPERTY/PROPERTIES IN BEHALF OF THE STATE IN THE
12 MANNER provided in the Rules of Court for appeals in civil cases.”

\3 Sec, 9. Sec. 9 of R.A. No. 1379 is hereby amended to read as follows:

M4 “SEC. 9. Immunity. - The [Solicitor General] OMBUDSMAN
15 may grant immunity from criminal prosecution to any person who
16 testified to the unlawful manner in which the respondent has acquired
"7 any of the property in question in cases where such testimony is
18 necessary to prove violations of this Act.”

19 Sec. 10. Section 12 of R.A, No, 1379 is hereby amended to read as follows.

20 “SEC, 12. Penalties. Any public officer or employee who shall,
21 after the effective date of this Act, transfer or convey any unlawfully
2 acquired property shall be [repressed} PENALIZED with imprisonment
B for a term {not exceeding five years] OF NOT LESS THAN ONE YEAR
4 AND ONE DAY BUT NOT MORE THAN SIX YEARS, or a fine not
28 exceeding [ten—thousand—pesos] TWICE THE AMOUNT OF THE
26 PROPERTY TRANSFERRED OR CONVEYED, or both such
27 imprisonment and fine, PERPETUAL DISQUALIFICATION FROM
28 PUBLIC OFFICE, AND CONFISCATION OR FORFEITURE IN
29 FAVOR OF THE GOVERNMENT OF ANY PROHIBITED INTEREST
30 [Fhe-same-repression-shall_-be-imposed-upon-any-personwhe-shall
3 knowingly-accept-such-transfer-or conveyance:]

32 THE SAME PENALTIES SHALL BE IMPOSED UPON ANY
33 PERSON WHO SHALL KNOWINGLY ACCEPT SUCH UNLAWFUL
34 TRANSFER OR CONVEYANCE, ANY SUCH CONVEYANCE SHALL
35 BE VOID AB INITIO.’

36 Sec. 10. Separability clause. If for any reason, any section or provision of this Act is
37 declared to be unconstitutional or invalid the other sections or provisions hereof
38 which are not affected thereby shall continue to be in full force and effect.

Sec, 11. Repealing clause, All laws, decrees, orders or rules and regulations and
other issuances which are inconsistent with the provisions of this Act are hereby
repealed, amended or modified accordingly.



| Sec. 12. Effectivity. This Act shall take effect fifteen (15) days after its publication in
2 the Official Gazette or in a newspaper of general circulation.

3 Approved,