FIFTEENTH CONGRESS OF THE 
REPUBLIC OF THE PHILIPPINES 
First Regular Session 
) 
) 
) 
SENATE 
S.No. 2364 
Introduced by Senator FRANCIS G. ESCUDERO 
EXPLANATORY NOTE 
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 off springs, including government acquired asset corporations, government 
corporate entities and government instrumentalities with corporate powers, 
government financial institutions, and other government entities, agencies and offices 
hereafter referred to as "government corporations". 
Executive Order No. 292, otherwise known as the Administrative Code of 1987, 
has defined 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. As such, it is mandated to safeguard their legal interests in a competent, 
speedy and adequate legal service in its commitment to uphold justice under the rule 
of law. 
Every year, an increasing number of requests for legal advice and cases is being 
responded to and handled by the OGCe, in addition to the performance of its 
adjudicatory and other functions. 
To efficiently and effectively address the expanding needs of these government 
corporations, this proposed bill seeks to strengthen the OGCC 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. 
FRANCIS G. ESCUDERO 


FIFTEENTH CONGRESS OF THE 
REPUBLIC OF THE PHILIPPINES 
First Regular Session 
) 
) 
) 
SENATE 
S.No. 2384 
Introduced by Senator FRANCIS G. ESCUDERO 
AN ACT 
TO STRENGTHEN THE OFFICE OF THE GOVERNMENT CORPORATE 
COUNSEL, BY RE-DEFINING, 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 Represen tati'ues of the Philippines in 
Congress assembled: 
SECTION 1. Declaration of Policy - It shall be the policy of the State to protect 
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and promote the welfare, rights and interests of government-owned and -controlled 
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corporations, their subsidiaries, other corporate offsprings, including government 
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acquired asset corporations, government corporate entities and government 
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instrumentalities with corporate powers, government financial institutions, and other 
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government entities, agencies and offices hereafter referred to as " government 
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corporations". 
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Toward this end, the State shall require the improvement of legal services in the 
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government to efficiently and effectively address the expanding needs of these 
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government corporations in accordance with its initiative towards an improved fiscal 
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management and good corporate governance. 
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SECTION 2. 
Jurisdiction 
and Mandate 
-
Any law to the contrary 
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notwithstanding, the Office of the Government Corporate Counsel ("OGCC") shall be 
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the legal counsel and principal law office of all government corporations. All 
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government corporations shall refer to the OGCC the following: 
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a) All legal questions for opinion and advice; 
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b) Prior to their execution, all contracts for review; and 
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c) All cases for representation before regular courts, quasi-judicial bodies, 
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administrative agencies and arbitral tribunals, provided that, the Government 
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Corporate Counsel ("GCC") may thereafter authorize the legal department of 
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the government corporation as collaborating counsel to handle cases, as the 
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urgerlcy or expediency of circumstances may warrant. 
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In addition, the OGCC shall: 
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a) Conciliate, mediate, arbitrate or adjudicate all disputes or controversies 
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exclusively between government corporations; 


b) Exercise control and supervision over the legal departments of all government 
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corporations; 
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c) Approve the engagement of services of private lawyers by the government 
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corporations; and 
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d) Enforce the Property Insurance Law pursuant to Republic Act No. 656, as 
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amended by Presidential Decree No. 245, in domestic or international 
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transactions. 
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The OGCC shall be an independent and autonomous office attached to the 
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Department of Justice. All opinions and issuances of the OGCC shall be binding on all 
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government corporations. 
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SECTION 3. Expansion and Upgrading of Positions - The GCC shall have a 
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cabinet rank and the same prerogatives, salary, allowances, benefits and privileges as 
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the Presiding Justice of the Court of Appeals. He/she shall be assisted by a Deputy 
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Government Corporate Counsel CDGCC
N
) and twelve (12) Assistant Government 
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Corporate Counsels (" AGCe') who shall have the rank, salary, allowances, retirement 
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and benefits, and privileges of an Associate Justice of the Court of Appeals. 
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No person shall be appointed GCe DGCC or AGCC unless he/she is a natural-
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born citizen of the Philippines and, for at least ten (10) years, has been engaged in the 
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practice of law in the Philippines. The number, rank, qualifications for appointment, 
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salary, allowances, retirement and other benefits, and privileges of the other members 
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of the legal staff shall be as follows: 
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(a) Twenty (20) Government Corporate Attorney IV (the "GCA IV") who shall 
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have the rank, salary, allowances, retirement and benefits, and privileges of 
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a Regional Trial Court Judge. No person shall be appointed GCA IV unless 
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he/ she is a natural-born citizen of the Philippines and, for at least eight (8) 
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years, has been engaged in the practice of law in the Philippines; 
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(b) Twenty (20) Government Corporate Attorney III (the "GCA III") who shall 
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have the rank, salary, allowances, retirement and benefits, and privileges of 
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a Metropolitan Trial Court Judge. No person shall be appointed GCA III 
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unless he/ she is a natural-born citizen of the Philippines and, for at least five 
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(5) years, has been engaged in the practice of law in the Phillppines; 
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(c) Twenty (20) Government Corporate Attorney II (the "GCA II") who shall 
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have the rank, salary, allowances, retirement and benefits, and privileges of 
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a Municipal Trial Court Judge in Cities. No person shall be appointed GCA 
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II unless he/ she is a natural-born citizen of the Philippines and, for at least 
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four (4) years, has been engaged in the practice of law in the Philippines; 
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(d) Ten (10) Government Corporate Attorney I (the "GCA I") who shall have the 
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rank, salary, allowances, retirement and benefits, and privileges of a 
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Municipal Trial Court Judge. No person shall be appointed GCA I unless 
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he/ she is a natural-born citizen of the Philippines and, for at least three (3) 
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years, has been engaged in the practice of law in the Philippines; 
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(e) Seven (7) Associate Government Corporate Attorney II who must be 
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members of the Philippine Bar and, for at least two (2) years, has been 
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engaged in the practice of law in the Philippines; and, 
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(f) Five (5) Associate Government Corporate Attorney I who must be members 
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of the Philippine Bar and, for at least one (1) year, has been engaged in the 
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practice of law in the Philippines. 
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5 
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The ~CC shall serve for a fixed term of six (6) years reckoned from the date of 
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his/her appointment. The fixed term of the GCC shall apply and commence to 
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appointments to the said position beginning July 1, 2010. 
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The GCC, DGCC and AGCC shall be appointed by the President of the 
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Philippines. The other members of the legal staff and administrative personnel shall be 
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appointed by the GCe. Appointments of the DGCC, AGCC and other members of the 
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legal staff shall be deemed permanent upon compliance with the qualification 
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standards heretofore stated. 
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The administrative structure of the OGCC shall be organized into the Finance 
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and Accounting Services, the Human Resource and Management Services, the Case 
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and Records Management Services, the Library Management and Information 
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Technology Services and the Property and Supply Services. 
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The legal and non-legal staff of the OGCC occupying the positions affected by 
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the changes embodied in this Act at the time of its approval shall thereafter occupy 
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and discharge the duties and functions of the upgraded positions and receive and 
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receive the corresponding salary and benefits without necessity of new appointment. 
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SECTION 4. Compensation - The basic monthly compensation of the legal staff 
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shall be as follows: 
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29 
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Position 
Government Corporate Counsel 
Deputy Government Corporate Counsel 
Assistant Government COfJ;:>orate Counsel 
Government Cor)2orate Attorney IV 
Government Corporate Attorney III 
Government Corporate Attorney II 
Government Corporate Attorney I 
Associate Government CorEQ.rate Attorney I 
Associate Government Corporate Attorney II 
Salary Grade 
From 
To 
30 
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29 
30 
29 
30 
28 
29 
27 
28 
26 
27 
25 
26 
22 
24 
18 
23 
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The non-legal personnel shall have the same compensation as that of their 
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counterparts in the Office of the Solicitor General and Court of Appeals. 
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The salaries and privileges of the personnel of the OGCC granted under this 
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Act may further be increased to match any corresponding increase in salaries and 
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privileges subsequently granted to their respective counterparts in the judiciary. 
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SECTION 5. Personnel benefits and privileges - Provisions of other laws to the 
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contrary notwithstanding, the OGCC may provide its employees the following 
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benefits: 
. 


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10 
II 
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I. 
II. 
III. 
IV. 
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. 
Accident insurance for all employees to be procured by the office at its own 
expense during travels while in the performance of official duties; 
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; 
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. 
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SECTION 6. Seminar and other Professional Fees - Subject to availability of funds, 
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fees for relevant seminars, as well as professional 3 membership fees for lawyers, 
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registration fees and related miscellaneous expenses incurred in completing the 
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mandatory continuing legal education (MCLE) shall be borne by the office. 
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Professional membership, registration fees including those for mandatory continuing 
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professional education (CPE), and related miscellaneous expenses of other employees 
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holding positions for which a professional license is required by the office, shall also 
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be borne by the OGCe. 
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SECTION 7. Transportation Benefits - Subject to availability of funds, employees 
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shall be provided with contracted transportation services until such time as the office 
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can procure additional motor vehicles for this purpose. 
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SECTION 8. Other Benefits - Provisions of other laws to the contrary 
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notwithstanding, the legal staff of the OGCC are allowed to receive allowances and 
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honoraria from its client-government corporations. Employees of the OGCC may 
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likewise be extended such benefits and privileges as are given to the employees of 
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their clients. 
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When the exigency of the service so require, any member of the legal staff may 
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be designated by the GCC to act in concurrent capacity as corporate officer of, or 
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assigned to perform special or additional tasks in any of the client government 
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corporations of the OGCC and by virtue of such designation or assignment, receive 
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such additional 'compensation and privileges as may be granted them by the 
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government corporation concerned. 
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SECTION 9. Attorney's fees and Special Assessment. - The OGCC is authorized to 
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receive twenty percent (20%) 
of all 
the money claims collected by or 
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awarded/ adjudged to client-government corporations in addition to the attorney's 
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fees awarded by a court, tribunal or panel, including awards/judgments, stipulated 
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under court-approved compromise agreements. The OGCC is hereby utilized to use 
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such awards and attorneys fees to meet contingencies, obligations and undertakings, 
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or for employee salaries, allowances, other benefits and incentives, necessary or 
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proper to promote efficiency in the service as determined by the GCC subject to the 
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rules and regulations of the Commission on Audit and the Department of Budget and 
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Management may authorize. 
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The GCC is likewise authorized to make special assessments upon its client 
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government corporations to similarly meet such contingencies, obligations and 


undertakings, or to provide for employee salaries, allowances, other benefits and 
2 
incentives, as may be warranted or proper as determined by the GCe. 
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SECTION 10. Special Allowance - The GCC, DGCC, AGCC and other members 
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of the legal staff may be granted special allowances in such amounts to be determined 
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by the GCC to implement the salary increases. The grant of special allowances shall be 
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implemented uniformly in such amounts and up to extent only that can be supported 
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by the funding source specified in Section 11 hereof. 
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SECTION 11. Funding - The funds required for the implementation of this Act 
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including employee benefits shall be taken from: 
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r. 
II. 
III. 
The Twenty percent (20%) share of the money claims collected or awarded 
in judgments in favor of government corporations and all Attorney's fees 
authorized to be received by the OGCC pursuant to this Act and Executive 
Order No. 292 or the Revised Administrative Code of 1987; 
Special assessments made by the GCC upon client government corporations; 
and 
Other revenues, savings, fees generated and collected and donations 
received by the OGCe. 
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SECTION 12. Franking Privilege - All official matters and telegrams of the OGCC 
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addressed for delivery within the Philippines shall be received, transmitted and 
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delivered free of charge provided, that such mail matters when addressed to private 
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persons or non- government offices shall not exceed one hundred and twenty (120) 
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grams. 
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SECTION 13. Appropriations - The amount needed for employees' salaries, 
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mandatory allowances and benefits under other laws and office expansion shall be 
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appropriated in the budget of the OGCC under the annual General Appropriations 
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Act. 
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SECTION 14. Implementing Rules and Regulations -Within sixty (60) days from the 
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approval of this Act, the GCC in consultation with the Secretary of the Justice and 
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Secretary of Budget and Management, shall promulgate such rules and regulations as 
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may be necessary to carry out the provisions of this Act. 
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SECTION 15. Repealing Clause- Provisions of Executive Order No. 292 or the 
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Revised Administrative Code of 1987, as amended, Executive Order No. 878 dated 
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March 4,1983, Presidential Decree No. 1415 dated June 9, 1978, Republic Act No. 6000 
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dated August 4, 1969 and other pertinent laws, rules and regulations shaH remain in 
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force and effect unless otherwise contrary or inconsistent with the provisions of this 
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Act. 
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SECTION 16. Sepnrability Clause -If any of the provisions of this Act is declared 
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invalid or unconstitutional, the provisions not affected thereby shall continue to be in 
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full force and effect. 
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SECTION 17. Effectivity - This Act shall take effect after fifteen (15) days from its 
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publication in a national newspaper of general circulation. 
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Approved,