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

EIGHTEENTH CONGRESS
First Regular Session

4809
House Bill No.

Introduced by: HON. LORD ALLAN JAY Q. VELASCO

EXPLANATORY NOTE

The Office of the Government Corporate Counsel (OGCC) acts as the
statutory counsel of about seven hundred fourteen (714) government-owned or
controlled corporations, government instrumentalities exercising corporate
powers, government financial institutions and government corporate entities,
their subsidiaries and corporate offsprings as well as economic zones, state
universities and water districts (which shall all hereinafter be referred
collectively as “GOCCs” for brevity) all over the country. Its responsibilities
cover all the legal affairs of all the GOCCs and it handles special tasks for them
including the exercise of control and supervision over all their legal departments.
Its mandate has been further reinforced in subsequent executive issuances to
effectively provide legal counsel to the GOCCs in their operations.

The strengthening of the OGCC is long overdue. The existing
organizational structure and personnel complement of OGCC was formulated
way back in 1978 and has not been amended and improved since then despite
the increasing work performed by the OGCC in discharging its mandate. To
ensure that OGCC shall be able to adapt to the changing conditions, the increase
in the number of its personnel and corresponding adjustment in their
compensation and benefits is inevitable.

For decades, the legal guidance and assistance provided by the OGCC by
way of legal representations, legal opinions, drafting and review of contracts,
performance of special tasks, the exercise of control and supervision over its legal
departments, among others, enabled the GOCCs to more efficiently perform their
respective mandates within the bounds of law.

With OGCC as statutory counsel, GOCCs do not need to engage private
lawyers to address their legal requirements. The GOCCs are able to generate
savings and utilize its much needed funds for its core purposes, which would
otherwise be allocated for legal fees of private lawyers if OGCC has not existed.

With the growth in the number of GOCCs coupled with the complexities
of their requirements brought by the modern business climate and conditions,
the increase in the request for the legal services of OGCC, not only in terms of
volume, but also the nature of the services required, call for specialization and
expertise in specific fields of law.

The officials and employees of OGCC, who are entrusted with the legal
concerns of the GOCCs, need to be properly equipped and be adequately
compensated to effectively fulfill their duties and responsibilities.


In line with the principle of the National Government's thrust to
standardize and rationalize the current compensation framework in the
bureaucracy, the positions, salaries and benefits of the lawyers and
administrative staff of the OGCC should be at par with the salary grades,
positions, salaries and benefits of its counterparts in the Department of Justice
who are also performing similar functions and providing similar legal services. It
is for this reason that the OGCC needs a new Charter which will upgrade the
positions, salaries and benefits of its employees and increase the number of its
legal personnel and administrative staff.

In view of the foregoing reasons, the expeditious approval of this measure is
sought.

LORD ALLAN JAY Q. VELASCO


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

EIGHTEENTH CONGRESS
First Regular Session

80
House Bill No. pele

Introduced by: HON. LORD ALLAN JAY Q. VELASCO

AN ACT STRENGTHENING THE OFFICE OF THE GOVERNMENT
CORPORATE COUNSEL BY RATIONALIZING AND FURTHER
PROFESSIONALIZING ITS ORGANIZATION, UPGRADING POSITIONS
AND APPROPRIATING FUNDS THEREFOR

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

SECTION 1. Short Title - This Act shall be known as the “OGCC Charter.”

SECTION 2. Declaration of Policy - It shall be the policy of the State to
protect and promote the welfare, rights and interests of government-owned or
controlled corporations (GOCCs), government financial institutions (GFls),
government instrumentalities with corporate powers (GICPs), government
corporate entities (GCEs) as defined in Republic Act No. 10149 as well as their
subsidiaries and corporate offsprings including economic zones, state
universities and water districts, all collectively referred to in this Act as
government corporations (“GOCCS”).

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

SECTION 3. Power, Jurisdiction and Mandate - Any law to the contrary
notwithstanding, the Office of the Government Corporate Counsel (“OGCC”)
shall be the statutory counsel and principal law office of all government
corporations. All government corporations shall refer to the OGCC the
following:

a. All important legal questions for opinion and advice;

b. All contracts for review; Provided, that the Government Corporate
Counsel (“GCC”) may from time to time determine which contract
shall no longer be submitted to OGCC; and

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


The OGCC shall:

a. Exercise control and supervision over the legal departments of all
government corporations and conduct periodic performance audit of
the in-house lawyers or legal departments of government corporations
and to recommend appropriate actions to them;

b. Conciliate, mediate, act as hearing officers or adjudicate all disputes on
controversies exclusively between government corporations;

c. Investigate and, in appropriate cases, hear administrative disciplinary
cases involving all lawyers, officials and employees of government
corporations upon the latter's request and recommend appropriate
administrative or disciplinary sanctions;

d. Conduct fact-finding and preliminary investigation in appropriately
referred cases;

e. Act as Corporate Secretary or as any other officer of government
corporations, upon their request;

f. Be assigned as members of technical working groups, bids and awards
committee, task force and other committees in relation to government
corporations’ projects;

g- Be detailed or assigned to government corporations upon their
request; Provided, that the GCC approves the assignment or
designation, including attendance in meetings requested by
government corporations;

h. Represent the OGCC in the Governing Board and management
committees of government corporations;

i. Approve the engagement of private lawyers by government
corporations; and

j. Perform such other functions necessary in the interest of service.

SECTION 4. Expansion and Upgrading of Positions —

A. The Government Corporate Counsel shall have the rank, salary,
allowances, retirement and pension benefits, emoluments, prerogatives 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 shall have the rank,
salary, allowances, retirement and pension benefits, emoluments, prerogatives
and privileges of an Associate Justice of the Court of Appeals.

No person shall be appointed GCC, DGCC or AGCC 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.

B. The number, rank, salary, allowances, retirement and pension benefits,
emoluments, prerogatives and privileges of the other members of the legal staff
shall be as follows:

1. The present ten (10) Government Corporate Attorney IV (“GCA IV”)
shall be increased to sixteen (16) and they shall have the rank, salary,
allowances, retirement and pension benefits, emoluments, prerogatives
and privileges of a Regional Trial Court Judge. No person shall be
appointed as GCA IV unless he/she is a natural-born citizen in the
Philippines and, for at least ten (10) years, has been engaged in the
practice of law in the Philippines;



2. The present fourteen (14) Government Corporate Attorney III (“GCA
III’) shalll be increased to nineteen (19) and they shall have the rank,
salary, allowances, retirement and pension benefits, emoluments,
prerogatives 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.

3. The present seventeen (17) Government Corporate Attorney II (“GCA
TI’) shall be increased to twenty (20) who shalll be natural-born citizens
of the Philippines and have been engaged in the practice of law in the
Philippines for at least three (3) years;

4, The present four (4) Government Corporate Attorney I (“GCA I’) shall
be increased to twelve (12) who shall be natural-born citizens of the
Philippines and have been engaged in the practice of law in the
Philippines for at least one (1) year.

The GCC, DGCC and AGCCs shall be appointed by the President of the
Philippines. The other members of the legal and administrative personnel shall
be appointed by the GCC. Except for the GCC, the appointments of the DGCC
and AGCCs shall be permanent upon compliance with the prescribed
qualification standards under this Act.

The GCC may appoint in coterminous capacity two (2) lawyers with the
same rank, salary, allowances and other benefits of an AGCC and two (2)
lawyers with the same rank, salary, allowances and other benefits of a GCA IV,
who shall form part of his confidential staff.

SECTION 5. Organizational Structure - The OGCC shall be headed by the
GCC, who is the principal law officer and legal defender of all the government
corporations. He shall have the authority and responsibility for the exercise of
the OGCC’s mandate and for the discharge of its duties and functions, and shall
have supervision and control over the OGCC and its constituent units. The GCC
shall promulgate necessary rules & regulations for the implementation of the
provisions of this law.

The GCC shall be assisted by the DGCC, AGCCs and such number of
GCAs as may be necessary to operate the OGCC.

Unless otherwise determined by the GCC, the legal staff shall be divided
into teams, each to be headed by an AGCC.

The administrative structure of the OGCC shall be composed of the
Secretarial and Legal Support Services, Finance and Accounting Services, Human
Resource and Management Services, Case and Records Management Services,
Library Management and Information Technology Services, Corporate Planning
Services and Property and Supply Services.

The legal and non-legal personnel 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 appointments.


ons

SECTION 6. Compensation - The salary grades for the basic monthly
compensation of the OGCC legal personnel shall be as follows:

Position Salary Grade

Government Corporate Counsel

Deputy Government Corporate
Counsel

‘Assistant Government Corporate
Counsel

Government Corporate Attorney
IV

Government Corporate Attorney
im

Government Corporate Attorney I

RIN 8} 8) 8) sige

Government Corporate Attorney I

The 150 non-legal personnel shall be composed of the following: two (2)
Chief Administrative Officers; one (1) Budget Officer V; one (1) Executive
Assistant (EA) V; two (2) EA IV; one (1) EA Ill; one (1) Accountant IV; four (4)
Supervising Administrative Officers; one (1) Planning Officer IV; eleven (11)
Administrative Officers (AO) V; one (1) Librarian IV; one (1) Information
Technology Officer; one (1) Computer Main Technician; one (1) Librarian III;
four (4) AOs III; three (3) AOs I; twelve (12) Senior Administrative Assistant III;
one (1) Planning Analyst Il; twenty (20) Administrative Assistant (ADAS) VI; one
(1) Computer Operator III; twelve (12) ADAS V; twelve (12) ADAS II; one (1)
Bookkeeper III; three (3) Records Officer I; fourteen (14) ADAS II; five (5) ADAS
I; one (1) Chauffeur IV; one (1) Security Guard II; ten (10) ADA VI; one (1)
Driver IV; one (1) Buyer IJ; fourteen (14) ADA IV; and six (6) ADA IIL.

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

The salaries, benefits and privileges of the personnel of the OGCC granted
under this Act shall automatically be increased to keep in step with any
corresponding increase in salaries and privileges subsequently granted to their
respective counterparts in the Judiciary, the Office of the Solicitor General and
the Court of Appeals.

SECTION 7. Personnel benefits and privileges - Provisions of other laws to
the contrary notwithstanding, and subject to availability of funds, the OGCC
may provide its employees the following benefits:

L Health care services through a health maintenance organization
(HMO).

I. Accident insurance for all employees for approved travels while in
the performance of official duties;

II. Provided the efficiency of the service is not prejudiced, scholarships
for the deserving employees on official time to upgrade their
knowledge and skills; Provided, further, That scholars under this
provision shall be selected on the basis of merit as determined by
‘competitive examination; and



IV. A Provident Fund which shall consist of, but not be limited to
contributions made by the OGCC and by its employees;

V. Reimbursement of registration fees and expenses for trainings and
seminars, Mandatory Continuing Legal Education (MCLE) fees and
professional license fees.

SECTION 8 Retirement Benefils - Any law to the contrary
notwithstanding, and consistent with Section 4 of this Act granting them the
same retirement benefits and privileges of their counterparts in the Judiciary, the
retirement benefits of the GCC, DGCC, AGCC, GCA IV and GCA III shall be
automatically increased whenever there is an increase in the salaries and
allowances of the same positions from which he or she retired.

SECTION 9. Attorney's Fees and Special Assessment - The OGCC is
authorized to receive twenty percent (20%) of the money claims collected by, or
awarded/adjudged to government corporations, in addition to the attorney's
fees awarded by a court, tribunal, or panel, including awards/judgments,
stipulated under court-approved compromise agreements. The OGCC is hereby
authorized to use such awards and attorney’s fees to meet contingencies,
obligations and undertakings or for employee benefits and incentives, necessary
or proper to promote efficiency in the service as determined by the GCC.

The GCC is likewise authorized to make special assessments upon
government corporations and to disburse and use the same for such
contingencies, obligations and undertakings, and to provide for employees’
benefits and incentives allowed under the law.

Attorney’s fees and special assessments shall be deposited in an
authorized government depository and shall be made available for expenditure
without the need for a cash disbursement ceiling for purposes of meeting
obligations and contingencies, upgrading facilities and equipment, granting of
employees’ benefits and incentives and defraying such other expenses not
provided for in the General Appropriations Act subject to accounting and
auditing procedures.

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. Repealing Clause - All laws, decrees, rules and regulations
inconsistent with the provisions of this Act are hereby repealed or amended
accordingly.

SECTION 13. 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.


Ons

SECTION 14. Effectivity - This Act shall take effect fifteen (15) days after
its publication in the Official Gazette or in a newspaper of general circulation.

Approved,