FOURTEENTH CONGRESS OF THE REPUBLIC) 
OF THE PHILIPPINES 
1 
63 FEB 12 P2 5 6  
First Regular Session 
1 
Introduced by Senator Miriam Defensor Santiago 
EXPLANATORY NOTE 
This bill’ is an adaptation of the US False Claims Act that seeks to combat 
financial fraud perpetrated against the government by individuals and companies. 
In the United States, the False Claims Act has proven to be one of the most 
effective tools in fighting all types of financial fraud perpetrated against the government. 
It contained qui tam provisions that allow private citizens to sue, on the government’s 
behalf, companies and individuals that are dekauding the government. Qui tam is short 
for a Latin phrase, “qui tam pro domino rege quam pro se ipso in hac parte sequitur,” 
which roughly means, “he who brings an action for the king as well as for himself.” 
The qui tam provisions have been the key to the law’s success. Many people who 
file qui tam lawsuits (called the “relators”) are employees or former employees of 
companies that commit fraud, but anyone who knows of an instance where the 
government has paid false claims can file a qui tam lawsuit. That could be, for example, a 
competitor, a subcontractor, or even a patient. 
The whistleblower does not need to have personal knowledge of the fraud to file a 
False Claims Act case. The lawsuit can be based on information the relator learned from 
a friend, a relative, a competitor, etc. As long as the individual is not publicly disclosed 
and the government has not already sued the individual or company for the fraud, the 
relator may bring a qui tam lawsuit. 
The False Claims Act has encouraged a number of individuals to step forward and 
report fraud because it gives whistleblowers pecuniary incentives. Since 1986, the US 
’ This bill was originally filed by the Senator during the l3Ih Congress 


government has recovered more than $3.5 billion as a result of qui tam lawsuits 
(Department of Justice Statistics, as of Febrnary 24,2000). 
This bill also seeks to give whistleblowers a share of the recoveries that result 
from qui tarn lawsuits to give people a strong incentive to step forward and take the 
personal and professional risks involved in pursuing a false claim lawsuit; hence, 
reducing fraud perpetrated against the government. 


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IX)URTEENTH CONGRESS OF THE REPUBLIC) 
OF TI-IE PHlLIPPlNES 
1 
First Regular Session 
1 
Introduced by Senator Miriam Defeensor Santiago 
AN ACT 
TO COMBAT FINANCIAL FRAUD PERPETRATED AGAINST 
THE GOVERNMENT 
Be if encictetl by the Senate a i d  the House of Representatives ofthe Philippines in 
I’origress assembled: 
SECTION 1. Short Title. - This Act shall be lmown as tlie “False Claims Act of 
2008.” 
SECTION 2. Decluration of Policy. - It is hereby declared to be the policy of the 
State to give priority to the eiiactrnent and enforcement of stronger measures to combat 
linaricial fraud perpetrated against the goverimienl by individuals and companies. 
SECTION 3. False Clairns. - (I) Liability Tor certain acts - Any person who - (A) 
linowingly presents, or canses to be presented, to am officer or employee of the 
government or a member of the Armed Forces of the Philippines a false or fraudulent 
claim for payment or approval; 
(B) ltnowingly malm, uses, or causes to be made or used, a false record or 
statement to get a false or fraudulent claiiii paid or approved by ihe government; 
(C) conspires to defraud the goveriinient by getting a false or fraudulent 
claim allowed or paid; 
(D) has possession, custody, or control of propeily or inoney used, or to be 
used, by the government and, intending lo defiaud the government, willfully 
conceals the property, delivers, or causes to he delivered, less propelty than the 
amount for which the person receives a certificate or receipt; 
(E) a~ithorizes to make or deliver a document certifying receipt of property 
used, or to be used, by the government and, intending to defraud the government, 
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iiialtes or delivers the receipt without completely knowing that tile inforination on 
the receipt is true; 
(I?) 
Itnowiiigly buys, or receives as a pledge of an obligation or debt, 
public property from an officer or employee of the government, or a iiiembel- of 
the Armed Forces, who may not lawfully sell or pledge the property; or 
(G) knowingly makes, uses, or causes to be made or used, a false record or 
statenient to conceal, avoid, or decrease an obligalioii to pay or transmit money or 
property to tlie government, is liable to the government for a civil penalty of not 
less than Two Hundred Thousand Pesos (P200,OOO.OO) but not more than Four 
I-itindred Thousand Pesos (P400,000.00), 
plus three times the amount o f  daiiia.ges 
which the government sustains because of the act of that person, except that if the 
court finds that - 
(i) the person committing tlie violatioii of this Act furnished 
officials o f  the goveiiimeiit responsible for investigating false claims 
violations with all infoilnation laiown to such person about the violation 
within thirty (30) days after the date on which the defendant first obtained 
the inloomiation; 
(ii) 
such person 
fully cooperated 
with any government 
investigation of such violation; and 
(iii) at the time such person f~iriiislied the government with the 
infomiation about tlie violation, no criminal prosecution, civil action, or 
administrative action had coininenced under this Act with respect to such 
violation, and tlie person did riot have actual kiiowledge ofthe existence of 
an investigation into such violation; the court may assess 1101 less than two 
limes the amount or daniages which the govemnieiit suslaiiis because or 
the act of the person. A person violating this section shall also be liable to 
the goveriiineiit for the costs of a civil action brought to recover any such 
penalty or damages. 
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(2) Knowing and Knowingly Defined - For purposes or this Act, the terms 
“lcnowing” and “knowingly” mean that a person, with respect to information - 
(A) has actual ltnowledge ol- the information; 
(B) acts in deliberate ignorance orthe truth or falsity of the information; or 
(C) acls in reckless disregard of the truth or falsity of the information, and 
no proof of specific inteiit to defi-aud is required. 
(3) Claini Defined - For purposes of this section, “claim” includes any request or 
demand, wlietlier under a contract or otherwise, for money or property which i s  inade to a 
contractor, grantee, or other recipient for any portion of the money or property which is 
rcquesled or demanded, or if the goverument will reimburse such contractor, grantee, or 
otlicr recipient Tor any portion of the money or property which i s  requested or demanded. 
(4) Exclusion - This section does not apply to claims, records, or statements inade 
iintler the National Internal Revenue Code. 
SECTION 4. Civil Actions for False Cluims. - 
( I )  Responsibilities of the Solicitor General - The Solicitor General shall 
iiivestigate a violation under Section 3. If the Solicitor General finds that a person has 
violated or is violating Section 3, he may bring a civil action under this section against 
illat person. 
(2) Actions by Private Persons - (A) A person may bring a civil action for a 
violation of secliou 3 Tor the person and for the government. The action shall he brought 
i n  the name of the government. The action may be dismissed only if the conit and the 
Solicitor General give written consent to the disinissal and their reasons for consenting. 
(B) A copy of the complaint and written disclosure or substantially all 
material evidence and information the person possesses shall be served on the 
government pursuant to the pertinent provisions of the Rules of Court on Civil 
Procedure. The complaint shall remain under seal for at least sixty (60) days and 
shall not he served on the defendant until the court so orders. The government 
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may elect to intervene and proceed with the action witbin sixty (60) days after it 
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receives both the complaint and the material evidence and inforination. 
(C) The goveiiment may, for good cause shown, move the court Cor 
extensions of the time during which the complaint remains under seal. Any such 
molions may be supporled by affidavits. The defendant shall not be required to 
respond to any coiiiplainl filed under this section until twenty (20) days after the 
complaint is unsealed and served upon tlie defendant. 
(D) Before the expiration of the sixty (60) day period, the government 
sh,?ll ~ 
(i) 
proceed with the action, in which case the action shall bc 
conducted by the government; or 
(ii) notify the court that it declines to take over the action, in which 
case the person bringing the action shall have the riglit to conduct tlie 
action 
(E) When a person brings an action under this section, no person other 
than the government may intervene or bring a related action on the facts 
tinderlying the pending action. 
(3) Rights of the Parties to Qui Tan1 Actions - (A) IC the govet-nment pi-oceeds 
wit11 the action, it shall have the primary responsibility for prosecuting the action, and 
sliall not be bound by an act ofthe person hi-inging the action. Such person shall have the 
right to continue as a party to the action, subject to the limitations set forth in paragraph 
(13). 
(E!) 
(i) The government may dismiss the action, notwithstanding the 
objections of the person initiating the action, if the person has been notified by the 
guverntnenl of the filing of tlie motion and the court bas provided the person with 
an opportunity for a hearing, on the motion. 
(ii) 'The government may settle the action with the defendant, 
notwithstanding the objections of the person initiating the action, if the 
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court determines, after hearing, that the proposed settlement is fair, 
adequate, and reasonable under all the circumstances. 
(iii) Upon showing by the govemment that 
uni-estrictcd 
participation during the course o f  the litigation by the pcrson initiating the 
action would interfere with or unduly delay the government’s prosecution 
of the case, or would be repetitious, irrelevant, or for purposes of 
harassment, the court may, in its discretion, impose limitations on tile 
person’s participation, such as - 
(a) limiting the number o f  witnesses the person may call; 
(b) limiting the length of the testimony of such witnesses; 
(c) limiting the person’s cross-examination oF the 
witnesses; or 
(d) otherwise limiting the participation by the person in 
litigation. 
(iv) Upoii a showing by the defendant that unrestricted 
participation during the course of the litigation by the person initiating the 
action would be for purposes of harassment or would cause the defendant 
i.indue burden or unnecessary expense, the courl may liniil the 
participation by the person in the litigation. 
(C) If the government elects not to proceed with the action, the person 
who iiiitiated the action shall have the riglit to conduct the action. If the 
govcriiment so requests, it shall be served with copies of all pleadings filed in the 
action and shall be supplied with copies of all deposition transcripts (at the 
govemment’s cxpense). When a person proceeds with the action, the court, 
without limiting the status and rights o f  the persoii initiating the action, may 
nevertheless permit the government to intervene at a later date upon a showing of 
good cause. 
(D) Whether or not the gover~nnent proceeds with the action, up011 a 
showing by the govemrnent that certain actions of discovery by the pelson 
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initiating the action would interfere with the government’s investigation or 
prosecution of a criminal or civil matter arising out of the same facts, tlie court 
may stay such discovery for a period of not more than sixty (60) days. The court 
may extend the 60-day period upon a further showing that the government has 
pursued the criminal or civil investigation or proceedings with reasonable 
diligence and any proposed discovery in the civil action will interfere with 
reasonable diligence and any proposed discovery in the civil action will interfere 
with the oiigoiiig criminal or civil investigation or proceedings. 
(4) Award to Qui Tam Plaintiff - (A) If the government proceeds with an action 
brought by a person under subsection (2), such person shall, subject to the second 
senleiice or his paragraph, receive at least fifteen percent (15%) but not more than 
twenty-five percent (25%) of the proceeds of the action or settlement of the claim, 
depending upon the extent to which the person substantially contributed to \lie 
prosecution or the action. Where the actioti is one which the court finds to be based 
primarily on disclosures of specific inroomiation (other than infomation provided by the 
persoii bringing the action) relating to allegations or transactions in a criminal, civil, or 
administrative hearing, in a congressional, administrative, report, hearing, audit, or 
invcstigation, or from the news media, the court may award such sums as it considers 
appropriate, but in no case more than ten percent (10%) of the proceeds, taking into 
account the significance of the infoolination and the role of the person bringing the action 
i n  advancing the case to.litigation. Any payment to a person under tlie first or second 
sentence or this paragraph shall be made fioni the proceeds. Any such person shall also 
rcceive an ainotnit for reasonable expenses which tlie couit finds to have been necessarily 
incurred, plus reasonable attorney’s fees and costs. All such expenses, fees, and costs 
sliall be awarded against the defendant. 
(B) If the government does not. proceed with an action under this section, 
the person bringing the action or settling the claim shall receive ai amount which 
the court decides is reasonable for collecting the civil penalty and damages. The 
a m o ~ u ~ t  
shall be not less than twenty-five percent (25%) and not more than thirty 


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percent (30%) of the proceeds of the action or settlement and shall be paid out of 
such proceeds. Such person shall also receive an amount for rcasoiiabie expenses 
which the court finds lo have been necessarily incurred, plus reasonable attorney's 
fees and costs. All such expenses, fees, and costs shall b e a warded against the 
defendant. 
(C) Whether or not the goveiiunent proceeds with the action, if the court 
finds that tlie action was brought by a person who planned arid initiated the 
violation of section 3 upon which the action was brought, then the court may, to 
the extent the court considers appropriate, reduce the share ofthe proceeds of the 
actioii which the person would otherwise receive under paragraph (A) or (B) of 
this section, taking into account the role of that person in advancing the case to 
litigation and any relevaiil circumstances pertaining to the violation. If the person 
bringing the action is convicted of criminal conduct arising from his or her role in 
the violation of section 3, that person shall be dismissed form the civil action and 
shall not receive any share or the proceeds of tlie action. Such dismissal shall not 
prejudice the right of the govemiient lo continue the action, represented by the 
Department of Justice. 
(D) If the government does not proceed with the act.ion and tlie person 
bringing the action conducts tlie action, the court may award to the defendant its 
reasonable attorney's fees and expenses if the defendant prevails in the action and 
the court finds that the claim of the person bringing the action was clearly 
kivolous,'clearly vexatious, or brought primarily for purposes of harassment. 
(S) Certain Actions Barred - (A) No courl shall have jurisdiction over an action 
hrought by a former or present member of the anned forces under subsection (2) of this 
section against a nieinber o f  the Armed Forces arising out of such person's service in the 
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(B) No court shall have jurisdiction over an action brought under 
subsection (2) against a nieinber or Congress, a inember of the judiciary, or a 


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senior executive branch official if the action is based on evidence or information 
Icnown to the goveiiiinent when tlie action was brought. 
(C) In no event may a person bring an action uiider subsection (2) which is 
based upon allegations or transactions which are the subject or a civil suit or an 
administrative civil money penalty proceeding in which tlie %overnnieiit is already 
a party. 
(D) (i) No courl shall have jurisdiction over an action under this seclion 
based upon the public disclosure of allegations or transactions in a criminal, civil, 
or administrative hearing, in a congressional, administrative report, hearing, audit, 
or investigation, or from the news media, unless the action is brought by the 
Solicitor General or the person bringing the action is an original source of tlie 
information. 
(ii) For purposes of this paragraph, “original source’’ means an 
individual who has direct and independent knowledge of the information 
on which the allegations are based and has voluntarily provided the 
information to the governnienl before filing an action under this section 
which is based on the infoimation. 
(6) Government not liable for certain expenses - The government is not liable for 
expenses which a person incurs in brinsiiig an action under this section. 
(7) Any employee who i s  discharged, demoted, suspended, threatened, harassed, 
or in any inmner discriminated against in tlie terms and conditions of employment by his 
or her employer because of lawFu1 acts done by tlie employee on behalf o f the employee 
or otliers in furtherance of an action under this section, including investigation for, 
initiation of, testimony for, or assistance in an action filed or to be filed under this 
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section, shall be entitled to all relief necessary to male the employee whole. Such relief 
shall include reinstatement with the same seniority status such employee would have had 
h i i t  ror the discrimination, two times tlie amount of back pay, interest on the back pay, 
and compensalioii for any special damages sustained as a vesult o f  the discrimination, 
including litigation costs and reasonable attorney’s fees. 
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SECTION 5 .  Fulse Cluinis Procedure. - 
(1) A subpoena requiring the attendance of a witness at a trial or hearing 
conducted under section 4 of this Act may he served at any place in the Philippines. 
(2) A civil action under section 4 may not be brought - (A) inore than six (6) years 
after the date on which the violation of section 3 is committed, or 
(B) more than thee (3) years after the date wheii facis material to the 1-iglit 
ol' action are known or reasonably should have been known by ihe official of the 
government charged wiih responsibility io act in the circumstances, brii in no 
event more than ten (10) years afler the date on which the violation is committed, 
whichever occurs last. 
(3) In any action brouglit under section 4, the government shall be required to 
pi-ove, all essential elements of the cause of action, including damages, by a 
ixepoiiderance of the evidence. 
(4) Notwithstanding any other provision of law or the Rules of Criminal 
Procedure, a final judgiiient rendered in favor of the governinent in any criminal 
proceeding cliarging fi-aud 'or false sialernents, wheiher upon a vel-dict after trial or upon a 
plea of guilry, shall slop tlie defendant from denying the essential eleinents ofthe offense 
in any action which involves the same transaction as in the criminal proceeding and 
wliich is brought under subsection (1) or (2) of section 4. 
SECTION 6. Pulse Clninzs Jurisdiction. - Any action under section 4 may be 
broiight in any couil in which the defendant or, in the case of multiple defendants, any 
oiic defeiidani can be found, resides, transacts business, OT in which any act proscribed by 
scction 4 occiirred. A siinmions as reqnired by the Rules of Civil Procedure shall be 
issued by the appropriate court aiid served at any place within or outside the country. 
SECTION 7. Civil Investigative Dernnnds. - 
( I )  In General - 
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(A) Issuance and service - Whenever the Solicitor General has reason to 
believe that any person may be in possession, custody, or control of any 
documentary material or inforination relevant to a false claims law investigation, 
the Solicitor General may, before commencing a civil proceeding under section 4 
or other false clainis law, issue in writing and cause to be served upon such 
person, a civil investigative demand requiriug such person - 
(i) to produce such documentary inaterial for inspection and 
copying; 
(ii) to answer in writing written interrogatories with respect to such 
documentary material or in Forniation; 
(iii) to give oral testimony concemiiig such documentary material 
or infomation; or 
(iv) to furnish any combination of such material, answers, or 
testimony. 
The Solicitor General may iiot delegate the autliorily to issue civil 
investigative demands under this subsection. Whenever a civil investigative 
demand is an express demand for any product of discovery, the Solicitor General 
shall cause to be served, in any nianner authorized by this section, a copy of such 
deinand upon the person froin whom tlie discovery was obtained and shall notify 
the person to whoin such demand is issued of the date 011 which such copy was 
served. 
(B) Contents and deadlines - 
(i) Each civil investigative demand issued under paragraph (A) 
shall state the nature of the conduct constituting the alleged violation of a 
false claims law which is under investigation, and the applicable provision 
of law alleged to be violated. 
(ii) If such demand is Tor tlie production of documentary material, 
the demand shall - 
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(a) describe each class of documentary material to be 
produced with such definiteness and cevtainty as to pemniit such 
material to be Iairly identified; 
(b) prescribe a return date for e ach such class which will 
provide a reasonable period o f  time within which the material so 
demanded may be assembled and made available for inspection 
and copying; and 
(c) identify the false claims law iiivestigator to whom such 
material shall he made available. 
(iii) If such demand is for answers to written interrogatories, the 
demand shall - 
(a) set forth with specificity the written interogatories to be 
answered; 
(b) prescribe dates at which time answers to written 
interrogatories shall be submitted; and 
(c) identify the false claims law investigator to whom such 
answers shall be submitted. 
(iv) If such demand is for the giving of oral testimony, the demand 
shall - 
(a) prescribe a date, time, aid place at which oral testimony 
shall be commenced; 
(b) identify a false claims law investigator who shall conduct 
the examination aid the custodian to whom the transcript of such 
exaniiiiatioii shall be subiiiitted; 
(c) specify that such attendance and testimony are necessary to 
the conduct of the investigation; 
(d) notify the person receiving the demand of the right to be 
acconipanied by an attorney and any other representative; and 


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(e) describe the general purpose for which the demand i s  being 
issued and the general nature or the testimony, including the primary 
areas of inquiry, which will be talcen pursuant to the demand. 
(v) Any civil investigative demand issued under this section which is 
an express demand for any product of discovery shall not be returned or 
returnable until twenty (20) days after a copy o f such demand has been served 
upon the persons from whom the directory was obtained. 
(vi) The date prescribed for the co~nmencement of oral testimony 
pursuant to a' civil investigative demand issued under this section shall be a 
date which is not less than seven (7) days after 'the date on which demand is 
received, 
unless the Solicitor General determines that 
exceptional 
circumstances a e  present which warrant the coiiimencement or such 
testimony within a lesser period of time. 
(vii) The Solicitor General shall not authorize the issuance under this 
section of more than one (1) civil investigative demand for oral testimony by 
the same person unless the person requests otherwise or unless the Solicitor 
General, after investigation, notifies that person in writing that an additional 
demand for oral testimony is necessary. The Solicitor General may not 
authorize the performance, by any other officer, employee, or agency, or any 
runction vested in the Solicitor General under this snbparagraph. 
(C) Protected Material or Iiifonnation - 
(i) In general - A civil investigative deinand issued under subsection 
(1) may not require the production of any documentary material, the 
submission of m y  answers to written interrogatories, or the giving of any oral 
testimony if such material, answers, or testimony would be protected from 
disclosirre under - 
(a) the standards applicable to subpoena or subpoenas duces 
tecum issued by a court; or (b) the standards applicable to the 
discovery requests of the Rules of Civil, Procedure, to the extent thal 
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the application of such standards to any such demand is appropriate 
and coiisistent with the provisions and purposes of this section. 
(ii) Effect on other orders, rules, and laws - Any such demand which is 
an express demand for any producl of discovery supersedes any inconsistent 
order, rule, or provision of law (other than this section) preventing or 
restraining disclosure of such product o f  discovery to any person. Disclosure 
of my product of discovery pursuant to any such express demand does not 
constitute a waiver of any right or privilege which the person inalcing such 
clisclosure may be entitled to iiivolte to resist discovery of trial preparation 
materials. 
(D) Service; Jurisdiction - 
(i) By whom served - Any civil investigative demand issued under 
subsection (1) may be served by a falsc: claims law investigator, at any place 
within the territorial jurisdiction of any court. 
(ii) Service in foreign countries - Any such demand or any petition 
filed under paragraph (H) may be served upon any person who is not found 
within the territorial jurisdiction of any court in such manner as the Rules of 
Civil Procedure prescribe for service in a foreign country. 
(iii) Service upon legal entities and natural persons - (a) Legal entities 
- Service of any civil investigative demmd issued under subsection (1) or of 
any petition filed under paragraph (a) may be made upon a partnership, 
corporation, association, or other legal entity by - 
(1) delivering an executed copy of such demand or petition to 
any partner, executive officer, managing agent, or general agent of the 
paitiiersliip, corporation, association or entity, or to any agent 
authorized by appointment or by law to receive service o f  process on 
behalf or such partnership, corporation, association, or entity. 
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(2) delivering an executed copy of such deiiiand or petition to 
the principal office or place of business of the pal-tiiership, corporation, 
association, or entity, or 
(3) depositing an executed copy of such demand or petition in 
the mails by registered or certified mail, with a return receipt 
requested, addressed to such partnership, coiyoration, association, or 
entity at its principal office or place of business. 
(b) Natural persons - Service of any such deinand or petition may 
be made upon any natural person by - 
(1) delivering an executed copy of such demand or petition to 
the person; or 
(2) depositing an executed copy 0.f such demand or petition in 
the inails by registered or certified mail, with a return receipt 
requested, addressed to the person at the person's residence or 
principal office or place of business. 
(E) Proof of Service - R verified return by the individual serving any civil 
investigative demand issued under subsection (1) or any petition file under 
paragraph (13) setting forth the manner of such service shall be proof of such 
service. In the case of service by registered or cevtified mail, such return shall be 
accoiiipanied by the return post office receipt o f  delivery of such demand. 
(F) Documentary Material - The production of documentary material in 
response to a civil investigative demand served under this sectioii shall be made 
under a swom certificate, in such foini as the demand designates, by - 
(i) in the case of a natural person, llie person to whom the demand 
is directed; or control, or knowledge of the person to whom the demand is 
directed has been submitt.ed. To the extent that any information is not 
fuvnished, the information shall be identified and reasons set forth with 
particularity regarding the reasons why the information was uot furnished. 
14 


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(G) Oral Examinations - 
(i) Procedure - The exaniination of any person pursuant to a civil 
investigative demand for oral testimony served under this section shall be 
talcen before an officer authorized to administer oaths and affirniatioiis by 
law of the Philippines or of the place where the examination is held. The 
officer before whom the testimony is to be taken shall put the witness on 
oath or affirmation and shall, personally or by soiiieone acting under the 
direction of the officer md in the officer’s presence, record the testimony 
of the witness. The testimony shall be talcen stenographically and shall be 
transcribed. Whet1 the testimony is fLilly transcribed, the officer before 
whom the testimony is taken shall promptly transmit a copy of the 
transcript of the testimony by any ineans authorized by, and in a manner 
consistent with, the Rules of Civil Procedure. 
(ii) Persons present - The false claims law investigator conducting 
the examination shall exclude from the place where the examination is 
held all persons except the person giving the testimony, the attorney for, 
and any other representative of the person giving the testimony, the 
attorney for the government, any person who may be agreed upon by the 
attorney for the government and the person giving the testimony, the 
officer before whom the testimony is to be taken, and any stenographer 
taking such testimony. 
(iii) Where testimony taken - The oral testimony of any person 
talen pursuant to a civil investigative demand served under this Section 
shall be talcen in the court within which such person resides, is found, or 
kuisacts business, or in such other place as may be agreed upon by the 
false claims law investigator conducting the examiliation and such person. 
(iv) Transcript of testimony - When the lestimony is fully 
transcribed, the cake claiins law investigator or the officer before whom 
the testimony is talteii shall afford lhe witness, who may be accompanied 
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by counsel, a reasonable opportunity to exaninc and read the transcript, 
unless such examination and reading are waived by the witness. Any 
changes in foim or substance which the witness desires to make shall be 
entered and identified upon the transcript by the officer or the false claims 
law investigator, with a statement of the reasons given by the witness for 
malting such changes. 'The transcript shall then be signed by the witness, 
unless the witness in writing waives the signing, is ill, cannot be found, or 
reruses to sign. I[ the transcript is not signed by the witness within thirty 
(30) days after being afforded a reasonable opportunity to examine it, the 
officer or the false claims law investigator shall sign it and state on the 
record the fact of the waiver, illness, absence of the witness, 01' the refusal 
to sign, together with the reasons, if any, given therefore. 
(v) Certification and delivery to custodian - The officer before 
whom the testimony is talcen shall certify on the transcript that the witness 
was sworn by the officer and that the transcript i s  a true record of the 
testimony given by the witness, and the officer 0 1  rake claims law 
investigator shall promptly deliver (he transcript, or send the transcript by 
registered or certified mail, to the custodian 
(vi) Furnishing OT inspection of transcript by witness - Upon 
payment of reasonable charges therefore, the false claims investigator 
shall furnish a copy of the transcript to the witness only except that the 
Solicitor General may, for good cause, limit such witness to inspection or 
the official transcript of the witness' testimony. 
(vii) Conduct of oval testimony - (a) Any person compelled to 
appear Tor oral testimony under a civil investigative demand issued under 
subsection (1) may be accompanied, represented, and advised by counsel. 
Connsel may advise such person, in confidence, with respect to any 
question asked of such person. Such person or counsel may object on the 
record to any question, in whole or in part, and shall briefly state for the 
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record the reason for the objection. An objection made, received, and 
entered upon the record when it is claimed that such person is entitled to 
refuse to answer the question on the grounds of any constitutional or other 
legal rights of privilege, including h e  privilege agaiiist self-incriiniiiation. 
Such person may not otheiwise object to or refuse to answer any question, 
and may not directly or through counsel otheiwise interrupt the oral 
examination. If such person refuses to answer any question, a petition may 
be filed in the court under subsection (H)(i) Cor an order co~~~pelling 
such 
person to answer such questioix 
(b) If such person refuses to answer any question on the 
grounds of the privilege against s elf-incrimination, the testimony 
of such person may be compelled in accordance with the 
provisions of the Rules of Court. 
(viii) Witness fees and allowances - Any person appearing Cor oral 
testimony under a civil investigative demand issued under subsection (1) 
shall be 'entitled to the same fees and allowances which are paid to 
witnesses as provided in the appropriate provisions of the Rules of Couil. 
(ix)Custodians of Documents, Answers, and Transcripts - (a) 
Designation - The Solicitor General shall designate a false claims law 
investigator to serve as custodian of docuniemtary material, answers to 
interrogatories, and trmscripts of oral testimony received under this 
section, and shall designate sudi additional €alae claims law investigators 
as the Solicitor General determines from time to time to he necessary to 
serve as deputies to the custodian. 
(b) Responsibility for materials; disclosure - (1) A false 
claims investigator who receives any documentary material, 
answers to interrogatories, or transcripts of oral testimony received 
under this section shall transmit them to the custodian. The 
custodian shall tale physical possession of such material, answers, 
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or transcripts and shall he responsible for the use made of them and 
for the return of documeiilary material under paragraph (D). 
(2) The cusiodian may cause the preparation of such 
copies of such documentxy 
material, 
answers 
to 
interrogatories, or transcripts o f  oral testimony as may be 
required for official use by any false claiins law 
investigator, or oilier officer or eiiiployee of the 
Department of Justice, who is authorized for such use under 
regulations which the Solicitor General shall issue. Such 
material, answers, and transcripts inay be used by any such 
authorized false claims law investigator or other olficer or 
employee in connection with the talcing o f  oral testimony 
under this section. 
(3) Except as otlierwise pxovided in tliis subsection, 
no documentary material, answers to interrogatories, or 
transcripts of oral testimony, or copies thereof, while in the 
possession of the custodian and under such reasonable 
terms and conditions as the Solicitor General shall 
prescribe - 
(a) 
documentary 
inaterial 
and 
answers 
to 
interrogatories shall be available €or examination by the 
person who produced such inatevial or answers, or by a 
representative of that person authorized by that person to 
examine such materials and answers; and 
(b) transcripts of oral testimony shall be available 
for examination by the person who produced such 
testimony, or by a representative o f  that person authorized 
by that person to examine such transcripts. 
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2 5) 
(c) Use of materials, answers, or transcripts in other 
proceedings - Whether any attorney of the Department of 
Justice has been designated to appear before any court or 
agency in any case or proceeding, the custodian of any 
docuineiitary material, answers to interrogatories, or 
transcripts of oral testimony received under this section 
may deliver to such attorney such material, answers, or 
transcripts for o€ficial use in connection with any such case 
or proceeding as such attorney determines to be required. 
Upon the completion of any such case or proceeding, such 
attoiiiey shdl return to the custodian any such material, 
answers, or transcripts so delivered which have not passed 
into the control of such couit, or agency through 
introduction into the record of such case or proceeding. 
(d) Conditions for return or material - If any 
documentary inaterial has been produced by any person in 
the course of m y  false claims law investigation pursuant to 
a civil investigative demand under this section, and - 
(1) any case or proceeding before the court 
arising out of such investigation, or any proceeding 
before any agency involving such material, has been 
completed, or 
(2) any case or proceeding in which sucli 
intlterial may be used bas been commenced within a 
reasonable time after completion of the examination 
and analysis of all documentary material and other 
information assenibled in the course of such 
investigation, the custodian shall, upon written 
request of the person who produced such material, 
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return to such person any such materia1 (other thau 
copies furnished to the false claims law investigator 
under subsection (G)(ii) or made for the Department 
of Justice under paragraph (2)(B)) which has not 
passed into the control or any court or agency 
through the introduction into the record of such case 
or proceeding. 
(e) Appointnient of successor custodians - In the 
event of the death, disability, or separation fi-om service in 
the Department of Justice of the custodian of any 
documentary material, answers to interrogatories, or 
transcripts of oral testimony produced pursuant to such 
custodian froni responsibility for the custody and control or 
such materials, answers, or transcripts, the Solicitor 
General shall promptly - 
(1) designate another false claims law 
investigator to serve as custodian of such material, 
answers, or transcripts; and 
(2) transmit in writing to the person who 
produced such material, answers, or testimony 
notice of the identity and address of the successor 
so designated. Any person who is designated to be a 
successor under this paragraph shall have, with 
regard to such inaterial, answers, or transcripts, the 
same duties and responsibilities as were imposed by 
this section upon that person’s predecessor in office, 
except that the snccessor shall not be held 
responsible for any default or dereliction which 
occurred berore that designation. 
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(1-1) Judicial Proceedings - 
(i) Petition for enforcement - Whenever any person fails to comply 
with any civil investigative demand issued under subsection (I), or whenever 
satisfactory copying or reproduction of any material requested in such demand 
cannol. be done and such person refuses to surrender such material, the 
Solicitor General may file, in the court iii which such person resides, is found, 
or tvansacts business, aid serve upon such person a petition for an order of 
such court for the enforcement of the civil investigative demand. 
(ii) Petition to modify or set aside demand - (a) Any person who has 
received a civil investigative demand issued under subsection (1) may file, in 
the court within which such person resides, is loound, or transacts business, and 
serve npon the false claims law investigator identified in such demand a 
petition for an order of the court to modify o r set aside such demand. In the 
case of a petition addressed to an express demand for any product of 
discovery, a petition to modify or set aside such demand may be brought only 
in the court in which the proceeding in which such discovery was obtained is 
or was last pending. Any petition under this subparagraph must be filed - 
(1) within twenty (20) days after the date of service of the 
civil investigative demand, or at any time before the return date 
specified in the demand, whichever date is earlier; or 
(2) within such longer period as may he prescribed in 
writing by any false claims law investigator identified in the 
demand. 
(b) The petition shall specify each ground upon which the 
petitioner relies in seeking relief under subparagraph (a), and may be 
based upon any failure of tile demand to comply with the provisions o f  
this section or upon any coiistitutioiial or other legal right or privilege 
of such person. During the pendency of the petition in the coni?, the 
court may stay, as it deems proper, the running of the time allowed for 
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compliance with the demand, in whole or in part, except that the 
person filing the petition shall comply with any portions of the demand 
not sought lo be modified or set aside. 
(iii) Petition to modify or set aside demand for product of discovery - 
(a) In the case of any civil investigative demand issued under subsection (1) 
which is an express demand for any product of discovery, the person from 
whom such discovery was obtained may file, in the court in wl~ich tlie 
proceeding in which said discovery was obtained is or was last pending, and 
serve upon any false claims law investigator identified in the demand and 
upon the recipient of the demand, a petition for an order o f  such court to 
modify or set aside those portions of the demand requiring production of any 
such product or discovery. Any petition under this subparagraph must be filed 
(1) within twenty (20) days after the dnte of service or the 
civil investigative demand, or at any time before the return date 
specified in the demand, whichever date is earlier; or 
(2) within such longer period as may he prescribed in 
writing by aiiy false claims law investigator identified in the 
demand. 
(3) The petition shall specify each ground upon which the 
petitioner relies in seeking relief under subparagraph (a), and 
may be based upon any lailure of the portions of the demand 
Tram which relief is sought to comply with the provisions of 
this section, or upon any constitutional or other legal right or 
privilege of the petitioner. During the pendency of the petition, 
the court may stay, as it deems proper, compliance with the 
demand and the running of the time allowed for compliance 
with the demand. 
(iv) Petition to require performance by custodian of duties - At aiiy 
time during which any custodian is in custody or control of any documentary 
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material or answers to interrogatories produced, or transcripts of oral 
testimony given, by any person in compliance with any civil investigative 
demand issued under subsection (l), such person, and in the case of an express 
demand for any product of discovery, the person from whom such discovery 
was obtained, may file, in the court within which the office of such custodian 
is situated, and serve upon such custodian, a petition for an order of such court 
to require the performance by the custodian of any duty imposed upon the 
custodian by this section. 
(v) Jurisdiction - Whenever any petition is filed in any court under this 
subsection, such court shall have jurisdiction to hear and determine the inatter 
so presented, and to enter such order or orders as may be required to carry out 
the provisions of this section. Any final order so entered shall be subject to 
appeal under the appropriate provisions of the Rules of Procedure. Any 
disobedience of any final order entered under this section by any court shall 
be punished as contempt of the court. 
(vi) Applicability o f  rules of civil procedure - The Rules of Civil 
Procedure sliall apply to any petition under this subsection, to the exleiit that 
such rules are not inconsistent with the provisions of this section. 
(I) Definitions - For purposes of this section - 
(i) the term "false claims 1aw"means - 
(a) this section and sections 3 and 4; and 
(b) any Act of Congress enacted after the date orthe enactment 
of this section which prohibits, or nialces available to the court any 
civil remedy with respect to, any false claim against, bribery of, or 
corruption of any officer or employee of the government; 
(ii) the term "false claims law investigation" means any inquiry 
conducted by any false claims investigator for the purpose of ascertaining 
whelher any person is or has been engaged in any violation of a false claims 
law: 
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(iii) the term “false claims investigator” means any attorney or 
investigator employed by the Department of Justice who is charged with the 
duty of enforcing or carrying into effect any false claims law, or any officer or 
employee of the government acting under the direction and supervision of 
such attorney or investigator in connection with a false claims law 
investigation; 
(iv) the tenn “person” means any natural person, partnership, 
corporation, association, or other legal entity, including any political 
snbdivision o f  a State; 
(v) the term “ documentary material” iiicludes the original or any copy 
o f  any hook, record, report, memorandum, paper, communication, tabulation, 
chart, or other document, or data compilations stored in or accessible through 
computer or other information retrieval systems, together with instructions 
and all other materials necessary to use or interpret such date compilations, 
and any product of discovery; 
(vi) the term “custodian” means the custodian, or any deputy 
custodian, designated by the Solicitor General under subsection (G)(ix); and 
(vii) the term “product of discovery” includes - 
(a) the original or duplicate of auy deposition, interrogatory, 
document, lhing, result of the inspection of land or other property, 
examinalion, or admission, which is obtained by any method of 
discovery in any judicial or administrative proceeding of an 
adversarial nature; 
@) any digest, analysis, selection, compilation, or derivation of 
any item listed in subparagraph (i); and 
(c) any index or other manner of access to any item listed in 
subparagraph (i). 
24 


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10 
SECTION 8. Separability Clause. - If any provision, or part hereof, is held invalid 
or unconstitutional, the remainder of the law or the provision not otherwise affected shall 
remain valid and subsisting. 
SECTJON 9. Repealing Clause. - Any law, presidential decree or issuance, 
cxccutive order, letter of instnictioii, administrative order, rule or regulation contrary to 
or inconsistent with, the provisioiis of this Act is hereby repealed, modified, or amended 
accordingly. 
SECTION 10. ESfectivity Clause. - This Act shall tale efrect fifteeii (15) days after 
its publication in at least two (2) newspapers of general circulation. 
Approved, 
25