t
EXPLANATORY NOTE
There have been a number of former officials of the government who took part in the
negotiation for loans with  our foreign  and  domestic creditors,  who were  later employed  by
these financial institutions.
Considering the amount involved are billions of dollars and to avoid conflict of interest
in the negotiations with our foreign creditors,  it is imperative that the State shall regulate the
right  of  our  financial  managers  and  negotiators  to  be  employed  with  the  domestic  and
international financial institutions that extended loan to our government.
Our financial managers and debt negotiators have access to vital information, which
these  financial  institutions  could  use  against  the  economic  and  financial  interest  of  the
Philippine government.   The prospect of being employed  by these financial institutions after
retirement or separation from the government might also influence our incumbent officials in
their  negotiation  either  for  new  loan  or  debt  restructuring,  with  our  foreign  and  domestic
creditors, by accommodating the interest of the creditors to the prejudice of the government.
This   bill   seeks   to   prohibit   and   penalize   retired   and   incumbent   officials   of  the
Philippine  government  from  employment  with  our  international  and  domestic  creditors.    It
also seeks to  promote  nationalist consciousness among  our people and  a  higher sense of
ethical  standard  among  our economic and  financial  managers.    It will  partly implement the
constitutional   mandate   to   "develop   a   self-reliant   and   independent   national   economy
effectively controlled  by Filipinos." (Art.11.  Sec.19).
In view hereof, the early passage of this proposed measure is highly recommended.


NINETEENTH CONGRESS                  )
REPUBLIC OF THE PHILIPPINES    )
First Regular session                           )
HOUSE OF REPRESENTATIVES
Introduced by Representative Rufus a. Rodriguez
House Bill No, EL4
AN ACT
PROHIBITING   RETIRED   AND   INCUMBENT   OFFICIALS   OF   GOVERNMENT   FROM
ACCEPTING EMPLOYMENT WITH INTERNATIONAL AND DOMESTIC CREDITORS.
Be it eriacted  by the  Senate and  House of Representatives of the Philippines in Congress
assembled:
SEC.1.   Declaration of Policy. -The  1987 Constitution mandates for a self-reliant
and independent national economy effectively controlled by Filipinos.   Towards this end, the
State  shall  ensure that government officials who  negotiated  with  the foreign  and  domestic
creditors  should  not  be  allowed  to  be  employed,  within  a  prescribed  period,  with  financial
institutions over which they have  negotiated  in the past to avoid  conflict of interest which  is
tantamount to economic treason.
SEC. 2.    Prohibition on the Employment of Retired Officials with International
and  Domestic Creditors. -     Retired  officials of the government who  have  participated  or
whose  office  has  participated  directly  or  indirectly  in  the  negotiation  with  international  and
domestic  creditors  are  hereby  prohibited  to  be  employed  with  the  foreign  and  domestic
creditors   of   the   Philippine   government   within   two   (2)   years   from   their   retirement   or
separation from the government.   The  prohibition on employment shall  include consultancy,
contract of services, management contract or similar agreements or schemes.
SEC.      3.      Prohibition   on   the   Employment   of   Incumbent   Officials   with
International and Domestic Creditors. - Incumbent officials of the government who have
participated  or  whose  office  has  participated  directly  or  indirectly  in  the  negotiation  with
international  and  domestic creditors  are  hereby  prohibited  to  be  employed  with  the foreign
and domestic creditors of the Philippine government while in government service and within
two (2) years from their resignation or separation therefrom.   The prohibition on employment
shall  include consultancy,  contract of services,  management contract or similar agreements
or schemes.
SEC. 4.     Penal  Provision.  -   Any person violating any of the provisions of this Act
shall be liable for imprisonment for a period of one (1 ) year to five (5) years at the discretion
of the  court  and  forfeiture  of the  instruments  or fruits  of the  offense  in  favor of the  State,
including the salaries and all benefits received as a result of his employment with the foreign
or domestic creditor.


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SEC.  5.     Separability  Clause.  -     lf  any  provision  of  this  Act  shall  be  declared
unconstitutional,  no other provisions shall be affected thereby.
SEC. 6.      Repealing clause.  -   All  laws, executive orders,  rules and  regulations or
parts   thereof  which   are   inconsistent   with   this   Act   are   hereby   repealed   or   modified
accordingly.
SEC. 7.    Effectivity. -    This Act shall take effect fifteen (15) days from the date of its
publication  in  the  Official  Gazette  or  in  any  newspaper  of  general  circulation,  whichever
comes earlier.
Approved,