13th CONGRESS OF THE REPUBLIC 
1 
OF THE PHILIPPINES 
I 
First Regular Session 
1 
SENATE 
i 
9 
S. BILL NO. 
Introduced by Senator Recto 
EXPLANATORY NOTE 
This bill seeks to authorize the auditing of infrastructure projects, 
amending for the purpose Republic Act Numbered Six Thousand Nine 
Hundred Fifty-Seven (R.A. 6957), otherwise known as "An Act Authorizing 
The 
Financing, 
Construction, 
Operation, 
And 
Maintenance 
of 
Infrastructure Projects By The Private Sector, And For Other Purposes," as 
amended by Republic Act No. 7718. 
Specifically, this bill intends to explicitly give the Commission on 
Audit (COA) the authority to conduct the'auditing of infrastructure and 
development projects undertaken by the government with the private 
sector. It also grants the project pro.ponent the right to engage the 
services of private accountants, independent of COA, to help audit the 
project. 
In the Implementing Rules and Regulations (IRR) of Republic Act No. 
6957, as amended by Republic Act No. 7718, audit is only stated in Sec. 
12.18 of the said IRR: 
"Sec. 12.18 Audit of Collections - All revenues and receipts 
pertaining to or accruing to the government derived from any 
project prosecuted under the Act and these IRR, including 
expenditures or use of funds and property, owned or held in trust 
by, or pertaining to the government, shall be subject to 
examination audit by the Commission on Audit (COAJ. Moreover, in 
order to ensure that the mandated return on rate base is complied 
with, COA shall audit the financial sfaterpents of projects, which 
are negotiated, and public utility monopoly." 
The above section of the IRR only allows the audit in the collection part of 
the project implementation and not during the procurement of materials 
and the actual construction. 
In view of these compelling reasons, the immediate passage of this 
bill is earnestly sought. 
RGAIBOT-audit 


13th CONGRESS OF THE REPUBLIC 
1 
First Regular Session 
1 
OF THE PHILIPPINES 
1 
‘04 JUL -6 A1036 
Introduced by Senator Recto 
AN ACT 
MANDATING THE AUDIT OF INFRASTRUCTURE PROJECTS, AMENDING FOR THE 
SEVEN (R.A. 6957), ENTITLED “AN ACT AUTHORIZING THE FINANCING, 
CONSTRUCTION, OPERATION, AND MAINTENANCE OF INFRASTRUCTURE 
PROJECTS BY THE PRIVATE SECTOR,’ AND FOR OTHER PURPOSES,” AS 
AMENDED BY REPUBLIC ACT NO. 7718 
PURPOSE REPUBLIC ACT NUMBERED SIX THOUSAND NINE HUNDRED FIFTY- 
Be it enacted by the Senate and House of Representatives of the 
Philippines in Congress assembled: 
1 
Section 1. A new section is hereby added after Section 12 of 
2 
Republic Act No. 6957, as amended and numbered as Section 13, to read 
3 
as follows: 
4 
“SEC. 13. AUDITING OF PROJECTS. THE COMMISSION ON AUDIT 
5 
(COA) SHALL BE RESPONSIBLE FOR THE AUDITING OF THE PROJECTS 
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IMPLEMENTED UNDER THIS ACT FROM THE APPROVAL OF THE CONTRACT, 
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THE PROCUREMENT OF MATERIALS, THE COMMENCEMENT OF THE 
8 
CONSTRUCTION, THE OPERATION OF THE FACILITY, AND UNTIL THE TRANSFER 
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OF THE FACILITY TO THE PROPER GOVERNMENT AGENCY OR LOCAL 
10 
GOVERNMENT UNIT CONCERNED. 
11 
THE PROJECT PROPONENT SHALL ALSO BE REQUIRED TO OBTAIN THE 
12 
SERVICES 
OF 
PRIVATE 
ACCOUNTANTS 
AND 
OTHER 
LICENSED 
13 
PROFESSIONALS, WHO ARE NOT EMPLOYED BY THE GOVERNMENT AND ARE 


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8 
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10 
11 
12 
13 
14 
15 
16 
17 
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INDEPENDENT OF 
COA, TO 
CONDUCT AUDIT OF THE PROJECT 
IMPLEMENTED. 
SEC. 2. 
Sections 13, 14, and 15 of the same Act are hereby 
renumbered as Sections 14, 15, and 16 respectively. 
SEC. 3. 
Implementing Rules and Regulations. The Department 
of 
Finance, the National Economic Development Authority, the 
Department of Public Works and Highways, the Commission on 
Appointments, and other appropriate government agencies shall 
promulgate the rules and regulations necessary for the effective 
implementation of this Act. 
SEC. 4. 
Repealing Clause. All laws, presidential decrees, 
executive orders, rules and regulations or parts thereof inconsistent with 
the provisions of this Act are hereby repealed or modified accordingly. 
SEC. 5. 
Implementing Clause. This Act shall take effect fifteen 
(15) days after its complete publication in a newspaper of general 
circulation. I take effect upon approval. 
Approved,