FOURTEENTH CONGRESS OF THE REPUBLIC) 
Second Regular Session 
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OF THE PHILIPPINES 
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SENATE 
S.B.No. 2563 
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Introduced by Senator Miriam Defensor Santiago 
EXPLANATORY NOTE 
The Constitution, Article 11, Section 27 provides that: 
SEC. 27. The State shall maintain honesty and integrity in public 
service and take positive and effective measures against graft 
and corruption. 
Graft and corruption has placed a heavy burden in our country throughout our 
history. In 2000, the World Bank estimated that the Philippines had lost $48 billion 
(P1.968 trillion) to corruption from 1977 to 1997. That amount would have addressed 
most of our current problems not the very least of them poverty. Each administration has 
had its own program in fighting graft and corruption. Although each has resulted into 
certain levels of success, we have yet to accomplish a truly significant step in fighting 
corruption, Economist Alejandro Lichauco has said the Philippines is perennially in crisis 
because of “the mortal mix of corruption and poverty and a consequent loss of popular 
confidence in government and the electoral process as instruments of change.” The fatal 
mix, he said, is poverty so massive and so intense as to have degenerated into a problem 
of mass hunger, and corruption that is as massive as the massive poverty.’ 
A World Bank study released last June said that corruption in the Philippines is 
perceived to be the worst among East Asia’s leading economies. The Philippines is now 
at the bottom of the list of East Asia’s 10 largest economies when it comes to control of 
’ Cost of corruption. Philippine Daily Inquirer. 12 February 2008. 


corruption, edged out by Indonesia, which scored the worst in the region in the 2007 
survey.‘ 
President Gloria Macapagal Arroyo herself recognizes the need to intensify the 
fight against graft and corruption. Early this year, she has allocated more than three 
billion pesos in funds to fight graft and corruption in our country. In her State of the 
Nation address this year, she asked the Congress to enact a more stringent AntLCraft Act. 
We need to build on our experience in our fight against graft and corrnption in 
order to capitalize in what we have so far achieved. 
This bill seeks to provide our anti-graft and corruption agencies with a better tool 
against graft and corruption by addressing the weaknesses of R.A. No. 3019, otherwise 
known as the “Anti-Graft and Corrupt Practices Act.” 
Dumlao, Doris. WB: Corruption in RP worst in East Asia. Philippine Daily Inquirer. 25 June 2008. 


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FOURTEENTH CONGRESS OF THE REPUBLIC) 
Second Regular Session 
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OF THE PHILIPPINES 
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Introduced by Senator Miriam Defensor Santiago 
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AN ACT 
STRENGTHENING THE REPUBLIC ACT NUMBER THREE THOUSAND 
NINETEEN, OTHERWISE KNOWN AS THE ANTI-GRAFT AND CORRUPT 
PRACTICES ACT 
Be it enacted by the Senate and the House of Representatives of the Philippines in 
Congress assembled: 
SECTION 1. Section 2 of RA 3019, otherwise known as the Anti-Graft and 
Corrupt Practices Act, is hereby amended to read as follows: 
SEC. 2. Definition of terms. - As used in this Act, that term - 
(a) "Government" includes the national government, the local 
governments, the government-owned and government-controlled 
corporations, and all other instrumentalities or agencies of the 
Republic of the Philippines and their branches. 
(b) "Public officer" includes elective and appointive officials and 
employees, permanent or temporary, whether in the classified or 
unclassified or exempt service, WHETHER OR NOT receiving 
compensation [, even nominal,] from the government as defined in 
the preceding subparagraph. 
(c) "Receiving any gift" includes the act of accepting directly or 
indirectly a gift from a person other than a member of the public 
officer's immediate family, in behalf of himself or of any member 
of his family or relative within the fourth civil degree, either by 
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consanguinity or affinity, even on the occasion of a family 
celebration or national festivity like Christmas[, if the value of the 
gifl is under the circumstances manifestly excessive]. 
(d) "Person" includes natural and juridical persons, unless the context 
indicates otherwise. 
SECTION 2. Section 3 (b) ofRA 3019 is hereby amended to read as follows: 
(b) Directly or indirectly requesting or receiving any gi€t, present, 
share, percentage, or benefit, for himself or for any other person, 
in connection with any contract, [or] transaction, 
OR 
PROCEEDING between the Government and any other paxt, 
wherein the public officer in his official capacity has to intervene 
under the law. 
SECTION 3. Section 3 (e) of F U  3019 is hereby amended to read as follows: 
(e) Causing any undue injury to any party, including the 
Government, or giving any private party any unwarranted 
benefits, advantage or preference in the discharge of his official 
administrative or judicial functions through SIMPLE [manifest] 
partiality, [evident] bad faith or gross OR inexcusable 
negligence. This provision shall apply to officers and employees 
of offices or government corporations charged with the grant of 
licenses or permits or other concessions. 
SECTION 4. Section 3 (g) of RA 3019 is hereby amended to read as follows: 
(g) Entering, on behalf of the. Government, into any contract or 
transaction [manifestly and grossly] disadvantageous to the 
same, whether or not the public officer profited or will profit 
thereby. 
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SECTION 5. Section 4 (a) of RA 3019 is hereby amended to read as follows: 
SEC, 4. Prohibition on private individuals. - 
(a) It shall be unlawful for any person having family or close personal 
relation with any public official to capitalize or exploit or take 
advantage of such family or close personal relation by directly or 
indirectly requesting or receiving any present, gift or material or 
pecuniary advantage from any other person having some business, 
transaction, application, request or contract with the government, 
in which such public official has to intervene. Family relation shall 
include the spouse or relatives by consanguinity or affinity in the. 
FOURTH [third] civil degree. The word "close personal relation" 
shall include close personal friendship, social and fraternal 
connections, and professional employment all giving rise to 
intimacy which assures free access to such public officer. 
SECTION 6. Section 5 of FL4 3019 is hereby amended to read as follows: 
SEC. 4. Prohibition on certain relatives. - It shall be unlawful for the 
spouse or for any relative, by consanguinity or affinity, within the 
FOURTH [third] civil degree, of the President of the Philippines, the 
Vice-president of the Philippines, the President of the Senate, or the 
Speaker of the House of Representatives, to intervene, directly or 
indirectly, in any business, transaction, contract or application with the 
Government: Provided, That this section shall not apply to any person 
who, prior to the assnmption of office of any of the above officials to 
whom he is related, has been already dealing with the Government 
along the same line of business, nor to any transaction, contract or 
application already existing or pending at the time of such assumption 
of public office, nor to any application filed by him the approval of 
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which is not discretionary on the part of the official or officials 
concerned but depends upon compliance with requisites provided by 
law, or rules or regulations issued pursuant to law, nor to any act 
lawfully performed in an official capacity or in the exercise of a 
profession. 
SECTION 7. Section 7 of RA 3019 is hereby deleted. 
SECTION 8. Section 9 (b) of RA 3019 is hereby deleted. 
SECTION 9. Section 11 of RA 3019 is hereby amended to read as follows: 
SEC. 11. Prescription of offenses. - All offenses punishable under this 
Act shall prescribe in TWENTY [fifteen] years. 
SECTION 10. Section 12 of RA 3019 is hereby amended to read as follows: 
SEC. 12. Termination of office. - ANY PROVISlON OF LAW TO 
THE CONTRARY, NOTWITHSTANDING, No public officer shall 
be allowed to RECEIVE OR CLAIM RETIREMENT BENEFITS 
[resign or retire] pending an investigation, criminal or administrative, 
or pending a prosecution against him, for any offense under this Act, 
R.A. No. 7080 “AN ACT DEFINING AND PENALIZING THE 
CRIME OF PLUNDER” or under the provisions of the Revised 
Penal Code on bribery. RESIGNATION OF A RESPONDENT 
PENDlNG ADMINISTRATIVE INVESTIGATION ARISING 
FROM ANY VIOLATION OF THIS ACT, R.A. NO. 7080, OR 
PROVISIONS OF THE REVISED PENAL CODE (RPC) ON 
BRIBERY 
SHALL 
NOT 
PREJUDICE 
THE 
SAID 
ADMINISTRATIVE CASE AND SHALL PROCEED UNTIL 
FINALLY RESOLVED. 
SECTION 11. Section 14 ofRA 3019 is hereby amended to read as follows: 
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SEC. 14. Exception. - [Unsolicited gifts or presents of small or 
insignificant value offered or given as a mere ordinary token of 
gratitude or friendship according to local customs or usage, shall be 
excepted from the provisions of this Act.] Nothing in this Act shall be 
interpreted to prejudice or prohibit the practice of any profession, 
lawful trade or occupation by any private person or by any public 
officer who under the law may legitimately practice his profession, 
trade or occupation, during his incumbency, except where the practice 
of such profession, trade or occupation involves conspiracy with any 
other person or public official to commit any of the violations 
penalized in this Act. 
SECTION 12. Separability Clause. - If any provision, or part hereof is held 
invalid or unconstitutional, the remainder of the law or the provision not otherwise 
affected shall remain valid and subsisting. 
SECTION 13. Repealing Clause. - Any law, presidential decree or issuance, 
executive order, letter of instruction, administrative order, rule or regulation contrary to 
or inconsistent with, the provisions of this Act is hereby repealed, modified, or amended 
accordingly. 
SECTION 14. Effectivity Clause. - This Act shall take effect fifteen (15) days 
after its publication in at least two (2) newspapers of general circulation. 
Approved. 
hpm082208 
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