TWENTIETH CONGRESS OF THE ) 
REPUBLIC OF THE PHILIPPINES ) 
First Regular Session 
)
25 JUL-8 P6:03
S. No
SENATE
278
Introduced by Senator Francis G. Escudero
AN ACT
MANDATING THE FULL ACCOUNTING OF ALL DISASTER-RELIEF AID OR 
DONATIONS RECEIVED BY THE PHILIPPINE GOVERNMENT FOR NATURAL 
AND HUMAN-INDUCED CALAMITIES
EXPLANATORY NOTE
In the aftermath of the extremely destructive super typhoon Yolanda 
(international codename: Haiyan) that struck our country in 2013, an outpouring of 
support in the form of cash and in-kind donations were directed to the Philippines by 
both local and foreign donors. In response to media reports alleging instances of 
corruption with respect to the utilization and accounting of the donated funds, then- 
Senator Miriam Defensor-Santiago introduced Proposed Senate Resolution No. 363 
entitled:
RESOLUTION DIRECTING THE PROPER SENATE COMMITTEE TO 
CONDUCT AN INQUIRY, IN AID OF LEGISLATION, ON THE NEED FOR 
TRANSPARENCY AND ACCOUNTABILITY WITH REGARD TO INCOMING 
FOREIGN AND LOCAL AID FOR THE VICTIMS OF SUPER TYPHOON 
YOLANDA
which was later referred to the Committee on Finance.
On February and March 17, 2014, the Committee of Finance conducted a 
hearing on the bills referred to it, including the said resolution. Subsequently, a 
Technical Working Group meeting was conducted by the committee to which resource 
persons from the Department of Foreign Affairs, Department of Budget and 
Management, Department of Finance and Commission on Audit were invited.
From the above-mentioned hearings and TWG meeting, one of the findings was 
that no single agency in the government had sole possession and knowledge of the 
total amount of local and foreign donations for the victims of Super Typhoon Yolanda. 
The Foreign Aid Transparency Hub or FAITH, an online information portal created by


the national government, captures only the foreign aid pledged and received by the 
county for the victims of Yolanda. It does not include the foreign or local donations 
that were deposited directly to the accounts of various departments or agencies, or 
the foreign or local donations received directly by the affected local government units.
The above findings indicated the need to institutionalize, preferably through 
legislation, a mechanism for the monitoring and accounting of all foreign and local 
donations for natural and man-made calamities. In addition, the public clamor for 
transparency and accountability in the utilization of the monetary and non-monetary 
aid received from foreign and local beneficiaries calls for proactive action from the 
Commission on Audit.
In view of the foregoing, the approval of the bill is earnestly sought.
FRANCIS G.
DERO


TWENTIETH CONGRESS OF THE ) 
REPUBLIC OF THE PHILIPPINES ) 
First Regular Session 
)
25 JiJL-8 P6:03
S. No.
SENATE
278
R|V:
Introduced by Senator Francis G. Escudero
AN ACT
MANDATING THE FULL ACCOUNTING OF ALL DISASTER-RELIEF AID OR 
DONATIONS RECEIVED BY THE PHILIPPINE GOVERNMENT FOR NATURAL 
AND HUMAN-INDUCED CALAMITIES
Be it enacted by the Senate and House of Representatives of the Philippines in 
Congress assemble
1 
Section 1. Title. - This Act shall be known as the "Donation Transparency Acf.
2 
Sec. 2. Declaration of Policy. - It is hereby declared the policy of the State to
3 
promote transparency and accountability in the receipt and utilization of domestic and
4 
foreign donations received by government agencies and instrumentalities for natural
5 
and human-induced calamities that cause havoc and destruction in the country.
6 
Sec. 3. Coverage. - This Act shall cover all foreign and local donations directed
7 
to the national government, government-owned or- controlled corporations (GOCCs)
8 
and local government units (LGUs) from all sources, such as foreign governments,
9 
bilateral or multilateral organizations and institutions, and private individuals or
10 
groups.
11 
Sec. 4. Definition of Terms. - For purposes of this Act:
12 
(a) Disastershd\\ refer to the following: (1) a serious disruption of the
13 
functioning of a community or a society involving widespread human, material,
14 
economic, or environmental losses and impacts, which exceeds the ability of the
15 
affected community or society to cope using its own resources; (2) the result of the


1 
combination of: (i) the exposure to a hazard, (ii) the conditions of vulnerability that
2 
are present, and (iii) insufficient capacity or measures to reduce or cope with the
3 
potential negative consequences, and (3) an event that causes loss of life injury,
4 
disease, and other negative effects on human, physical, mental, and social well-being,
5 
together with damage to property, destruction of assets, loss of services, social and
6 
economic disruption, and environmental degradation;
7 
(b) Donation shall refer to any cash or non-cash aid or grants received by the
8 
government for the purpose of disaster relief, recovery or rehabilitation.
9 
(c) Donor shall refer to foreign governments, bilateral or multilateral
10 
organizations and institutions, private individuals or associations that donate cash or
11 
non-cash aid or grants to the Philippine government for the purpose of disaster relief,
12 
aid or rehabilitation.
13 
(d) Donee shall refer to departments, bureaus, and offices of the national
14 
government including constitutional offices, state universities and colleges (SUCs),
15 
GOCCs and LCDs that receive donations from various sources.
16 
(e) Donation in Cash shall refer to cash assistance from a donor entity/individual
17 
to the Philippine government through any of its agencies or instrumentalities.
18 
(f) Donations in Kind shall refer to assistance provided in kind, including but
19 
not limited to food, clothing, medicine and equipment coming from the donor
20 
entity/individual to a specific government agency or instrumentality for the purpose of
21 
disaster relief, recovery and rehabilitation efforts.
22 
Sec. 5. Donations. - Departments, bureaus and offices of the National
23 
Government, including constitutional offices enjoying fiscal autonomy, SUCs, GOCCs
24 
and LGUs may accept donations in cash or in kind from various sources, domestic or
25 
foreign, for purposes relevant to their respective functions, and which shall be used
26 
to cover aid, relief and rehabilitation, repair and reconstruction of permanent
27 
structures affected by natural and man-made calamities. Such donations, whether in
28 
cash or in kind, shall be deemed automatically appropriated.


1 
Sec. 6. Utilization and Treatment of Donations. - Donations shall be utilized in
2 
accordance with the purpose identified by the donor. Donations for a specific purpose,
3 
as identified by the donor, shall be treated as trust receipts: Provided, That in case
4 
the donor does not identify a specific project or activity to be funded, such donation
5 
shall be considered as disaster aid for the use of the Department of Social Welfare
6 
and Development: Provided, further. That donations intended for program support for
7 
disaster in general shall be booked as income of the National Government or the LGU
8 
concerned, as the case may be.
9 
Sec. 7. Cash Donations. - All cash donations shall be deposited under the
10 
account of the Bureau of Treasury (BTr), except when the donation is made directly
11 
to the agencies, in which case the done agency shall inform the BTr of cash donation
12 
upon receipt thereof: Provided, That if the donation is made directly to an LGU, the
13 
Bureau of Local Government Finance (BLGF) shall be informed upon its receipt of the
14 
cash donation for purposes of consolidating the quarterly reports to be submitted to
15 
the Office of Civil Defense (OCD) acting as secretariat of the National Disaster Risk
16 
Reduction and Management Council (NDRRMC). An official receipt shall be issued by
17 
the done agency or LGU concerned for cash donations received.
18 
Donations in foreign currency shall be converted to the Philippine Peso at the
19 
prevailing rate at the time of the receipt of the donation. Donations shall be recorded
20 
in the books of the BTr as income or trust receipts.
21 
The amounts received by the donee agency shall thereafter be deposited to the
22 
account of the Treasurer of the Philippines, and shall be made available to the
23 
implementing agency concerned through a Special Budget pursuant to Section 35,
24 
Chapter 5, Book VI of Executive Order No. 292: Provided, That if the done agency is
25 
an LGU, the same shall be deposited to the account of the Local Treasury as a separate
26 
special account maintained in every provincial, city or municipal treasury and recorded
27 
as a Trust Fund under the Special Funds pursuant to Section 309 (b) Article I, Chapter
28 
II, Title V, Book II of the Republic Act No. 7160, otherwise known as the Local
29 
Government Code.


1 
In no case shall the cash donation be used for payment of Personal Services of
2 
any government agency or instrumentality, or any other expenses not related to
3 
disaster relief, recovery and rehabilitation efforts.
4 
Sec. 8. Donations in Kind. - For donations in kind, an acknowledgement receipt
5 
shall be issued to the donor by the done agency concerned. The value of donated
6 
Property, Plant and Equipment (PPE) shall be based on the declared value in the Deed
7 
of Donation or the bill of lading/airway bill/parcel notice and other related documents.
8 
The fair market value/appraised value shall be used in the absence of declared value.
9 
The done agency shall submit either in printed form or by way of electronic document
10 
to the OCD, quarterly reports on the receipt of donations in kind: Provided, That the
11 
LGU concerned shall submit to OCD through BLGF all donations in kind that they have
12 
received: Provided, further. That the Bureau of Customs (BOC), which processes all
13 
foreign donations pursuant to Section 18 of Republic Act No. 10121, otherwise known
14 
as the "Philippine Disaster Risk Reduction and Management Act", shall submit a report
15 
on the conditionally-free importation under this section to the OCD.
16 
The head of the done agency or LGU concerned shall be primarily responsible
17 
for the accounting and safeguarding of all donated supplies, materials, equipment and
18 
relief goods against loss and wastage.
19 
Sec. 9. Foreign Donations. - Foreign donations, whether in cash or in kind,
20 
from foreign governments shall be subject to the prior clearance and approval of the
21 
President upon the recommendation of the Department of Foreign Affairs (DFA). The
22 
DFA shall also submit to OCD a report on foreign donations that it has processed.
23 
Sec. 10. ConsoiidatedReports. - The head of the done agency and the agency's
24 
web administrator or his/her equivalent shall be responsible for ensuring that the
25 
quarterly report of all donations received, whether in cash or in kind, are posted on
26 
the agency's official website.
27 
The BTr shall submit to OCD a quarterly report on all amounts deposited under
28 
the special account it maintains for all donations received, including the amount
29 
retained by the done agency under Section 7 of this Act.


1 
The DFA shall likewise submit a report on all pledges made by foreign
2 
governments, bilateral or multilateral organizations and institutions, private foreign
3 
individuals or groups to the Philippine government for disaster relief, aid, or
4 
rehabilitation to OCD.
5 
The OCD shall submit, either in printed form or by way of electronic document,
6 
to the Department of Budget and Management (DBM), the House Committee on
7 
Appropriations and the Senate Committee on Finance, a consolidated quarterly report
8 
of all submissions made to OCD under this Act. The Executive Director of the OCD and
9 
the NDRRMCs web administrator or his/her equivalent shall be responsible for
10 
ensuring that said quarterly reports are likewise posted on the official website of the
11 
NDRRMC.
12 
Sec. 11. Implementing Rules and Regulations. - The DBM, OCD, DOF, DFA,
13 
Department of the Interior and Local Government and the Commission on Audit shall
14 
promulgate the Implementing Rules and Regulations (IRR) for the implementation of
15 
this Act within thirty (30) days from its approval.
16 
Sec. 12. Separability Clause. - If any provision or part hereof is held invalid or
17 
unconstitutional, the remainder of the law or the provision or part not otherwise
18 
affected shall remain valid and subsisting.
19 
Sec. 13. Repealing Clause. - All laws, presidential decrees, executive orders,
20 
rules and regulations, or parts thereof which are inconsistent with the provisions of
21 
this Act are hereby repealed, amended, or modified accordingly.
22 
Sec. 14. Effectivity. - This Act shall take effect fifteen (15) days after its
23 
publication in the Official Gazette or at least two (2) newspapers of general circulation.
Approved,