EIGHTEENTH CONGRESS )
REPUBLIC OF THE PHILIPPINES)
First Regular Session )

© pare, OCT _0 2 2018

TIME:
HOUSE OF REPRESENTATIVES

Introduced by Representative Rufus B. Rodriguez

House Bill No. 5013
EXPLANATORY NOTE

The Office of the Government Corporate Counsel (OGCC) acts as the statutory
counsel of about 714 govemment-owned or controlled corporations, govemment
instrumentalities exercising corporate powers, government financial institutions and
government corporate entities, their subsidiaries and corporate offsprings as well as
economic zones, state universities and water districts (which shall all hereinafter be referred
collectively as “GOCCs" for brevity) all over the country. Its responsibilities cover all the
legal affairs of all the GOCCs and it handles special tasks for them including the exercise of
control and supervision over all their legal departments. Its mandate has been further
reinforced in subsequent executive issuances to effectively provide legal counsel to the
GOCCs in their operations.

The strengthening of the OGCC is long overdue. The existing organizational
structure and personnel complement of OGCC was formulated way back in 1978 and has
not been amended and improved since then despite the increasing work performed by the
OGCC in discharging its mandate. To ensure that OGCC shall be able to adapt to the
changing conditions, the increase in the number of its personnel and corresponding
adjustment in their compensation and benefits is inevitable.

For decades, the legal guidance and assistance provided by the OGCC by way of
legal representations, legal opinions, drafting and review of contracts, performance of
special tasks the exercise of control and supervision over its legal departments, enabled the
GOCCs to more efficiently perform their respective mandates within the bounds of the law.

With OGCC as statutory counsel, GOCCs do not need to engage private lawyers to
address their legal requirements. The GOCCs are able to generate savings and utilize its
much needed funds for its core purposes, which would otherwise be allocated for legal fees
of private lawyers if OGCC has not existed

With the growth in the number of GOCCs coupled with the complexities of their
requirements brought by the modem business situations and conditions, the increase in the
request for the legal services of OGCC, not only in terms of volume, but also the nature of
the services required, call for specialization and expertise in specific fields of law.

The Officials and employees of OGCC who are entrusted with the legal concems of
the GOCCs need to be properly equipped and be adequately compensated to effectively
fulfil their duties and responsibilities.

In line with the principle of National Government's thrust to standardize and
rationalize the current compensation framework in the bureaucracy, the positions, salaries
and benefits of the lawyers and administrative staff of the OGCC should be at par with the
salary grades, positions, salaries and benefits of its counterparts in the Department of
Justice performing similar functions and providing similar legal services. tis for this reason
that the OGCC needs a new Charter upgrading the positions, salaries and benefits of its
employees and increasing the number of its legal personnel and administrative staff.

In view of the foregoing reasons, the expeditious approval of this proposed bill is

earnestly sought.

RUFYS B. ROI JEZ



EIGHTEENTH CONGRESS )
REPUBLIC OF THE PHILIPPINES )

First Regular Session )
HOUSE OF REPRESENTATIVES
Introduced by Representative Rufus B. Rodriguez
5019
House Bill No.
AN ACT

STRENGTHENING THE OFFICE OF THE GOVERNMENT CORPORATE COUNSEL BY
RATIONALIZING AND FURTHER PROFESSIONALIZING ITS ORGANIZATION,
UPGRADING POSITIONS AND APPROPRIATING FUNDS THEREFOR

Be it enacted by the Senate and the House of Representatives of the Philippines in
Congress assembled:

SECTION 1. Short Title — This act shall be known as the “OGCC Charter.”

SECTION 2. Declaration of Policy — It shall be the policy of the State to protect and promote
the welfare, rights and interests of government-owned or controlled corporations (GOCCs),
government financial institutions (GFis), government instrumentalities with corporate powers
(GCIPs), government corporate entities (GCEs) as defined in Republic Act 10149 as well as
their subsidiaries and corporate offsprings including economic zones, state universities and
water districts, all collectively referred to in this Act as government corporations (GOCCs)

Toward this end, the State shall require the improvement of legal services to
efficiently address the expanding needs of these government corporations in accordance
with its initiative towards an improved fiscal management and good corporate governance. It
shall be the mandate of the OGCC to safeguard the legal interest of the government
corporations.

SECTION 3. Power, Jurisdiction and Mandate — Any law to the contrary notwithstanding,
the Office of the Government Corporate Counsel ("OGCC”) shall be the statutory counsel
and principal law office of all government corporations. All government corporations shall
refer to the OGCC the following:

a. All important legal questions for opinion and advice;

b. All contracts for review, provided that the GCC may from time to time
determine which contract shall no longer be submitted to OGCC; and

c. All cases for representation before regular courts, quasi-judicial bodies,
administrative agencies and arbitral tribunals, provided that, the Government
Corporate Counsel (GCC) may thereafter authorize the government
corporation's legal department or retained counsel as collaborating counsel to.
handle cases, as the urgency or expediency of circumstances may warrant.

The OGCC shall

a. Exercise control and supervision over the legal departments of all govemment
corporations and conduct periodic performance audit of the in-house lawyers
or legal departments of goverment corporations and to recommend
appropriate actions to them;

b. Coneiliate, mediate, act as hearing officers or adjudicate all disputes on
controversies exclusively between government corporations;


c. Investigate and, in appropriate cases, hear administrative disciplinary cases
involving all lawyers, officials and employees of govemment corporations
upon the latter’s request and recommend appropriate administrative or
disciplinary sanctions;

d. Conduct fact-finding and preliminary investigation in appropriately referred
cases;

e. Act as Corporate Secretary or any other officer of government corporations
upon their request;

f, Be assigned as members of technical working groups, bids and awards
committee, task force and other committees in relation to goverment
corporations’ projects;

g. Be detailed or assigned to government corporations upon their request
provided, that the GCC approves the assignment or designation, including
attendance in meetings requested by goverment corporations;

h. Represent the OGCC in the Governing Board and management committees
of government corporations,

i. Approve the engagement of private lawyers by the goverment corporations;
and

j. Perform such other functions necessary in the interest of the service.

SECTION 4. Expansion and Upgrading of Positions —

‘A. The Government Corporate Counsel ("GCC") shall have the rank, salary,
allowances, retirement and pension benefits, emoluments, prerogatives and privileges as the
Presiding Justice of the Court of Appeals. He/she shall be assisted by a Deputy
Goverment Corporate Counsel (“DGCC’) and twelve (12) Assistant Goverment Corporate
Counsels (‘AGCC") who shall have the rank, salary, allowances, retirement and pension
benefits, emoluments, prerogatives and privileges of an Associate Justice of the Court of
Appeals.

No person shall be appointed GCC, DGCC or AGC unless he/she is a natural-born
citizen of the Philippines and, for at least fifteen (15) years, has been engaged in the practice
of law in the Philippines.

B. The number, rank, salary, allowances, retirement and pension benefits,
emoluments, prerogatives and privileges of the other members of the legal staff shall be as
follows:

4. The present ten (10) Government Corporate Attorney IV (‘GCA IV") shall be
increased to sixteen (16) and they shall have the rank, salary, allowances,
retirement and pension benefits, emoluments, prerogatives and privileges of a
Regional Trial Court Judge. No person shall be appointed as GCA IV unless
he/she is a natural-born citizen in the Philippines and, for at least ten (10) years,
has been engaged in the practice of law in the Philippines;

2. The present fourteen (14) Government Corporate Attomey Ill ("GCA III") shall be
increased to nineteen (19) and they shall have the rank, salary, allowances,
retirement and pension benefits, emoluments, prerogatives and privileges of a
Metropolitan Trial Court Judge. No person shall be appointed GCA III unless
he/she is a natural-bom citizen of the Philippines and, for at least five (5) years,
has been engaged in the practice of law in the Philippines.

3. The present seventeen (17) Government Corporate Attorney I! (“GCA II") shall be
increased to twenty (20) who shall be natural-bom citizens of the Philippines and
have been engaged in the practice of law in the Philippines for at least three (3)
years;


4, The present four (4) Goverment Corporate Attomey | ("GCA |") shall be
increased to twelve (12) who shall be natural-bom citizens of the Philippines and
have been engaged in the practice of law in the Philippines for at least one (1)
year.

The GCC, DGCC and AGCCs shall be appointed by the President of the Philippines.
The other members of the legal and administrative personnel shall be appointed by the
GCC. Except for the GCC, the appointments of the DGCC and AGCCs shall be permanent
upon compliance with the prescribed qualification standards under this law.

The GCC may appoint in coterminous capacity two (2) lawyers with the same rank,
salary, allowances and other benefits of an AGCC and two (2) lawyers with the same rank,
salary, allowances and other benefits of a GCA IV, who shall form part of his confidential
staff.

SECTION 5. Organizational Structure - The OGCC shall be headed by the GCC, who is the
principal law officer and legal defender of all the government corporations. He shall have the
authority and responsibility for the exercise of the OGCC's mandate and for the discharge of
its duties and functions, and shall have supervision and control over the OGCC and its
constituent units. The GCC shall promulgate necessary rules & regulations for the
implementation of the provisions of this law.

The GCC shall be assisted by the DGCC, AGCCs and such number of GCAs as may
be necessary to operate the OGCC.

Unless otherwise determined by the GCC, the legal staff shall be divided into teams,
each to be headed by an AGCC.

The administrative structure of the OGCC shall be composed of the Secretarial and
Legal Support Services, Finance and Accounting Services, Human Resource and
Management Services, Case and Records Management Services, Library Management and
information Technology Services, Corporate Planning Services and Property and Supply
Services.

The legal and non-legal personnel of the OGCC occupying the positions affected by
the changes embodied in this Act at the time of its approval shall thereafter occupy and
discharge the duties and functions of the upgraded positions and receive the corresponding
salary, benefits and privileges without necessity of new appointments.

SECTION 6. Compensation — The salary grades for the basic monthly compensation of the
OGCC legal personnel shall be as follows:

Position Salary Grade
‘Govemment Corporate Counsel EG
Deputy Government Corporate Counsel 30
Assistant Government Corporate Counsel 30
‘Government Corporate Attorney IV 29

[Govemment Corporate Attomey Ill 28
Government Corporate Attorney Il 27
Goverment Corporate Attomey | 26

The 150 non-legal personnel shall be composed of the following: two (2) Chief
Administrative Officers; one (1) Budget Officer V; one (1) Executive Assistant (EA) V; two (2)
EA IV; one (1) EA Ill; one (1) Accountant IV; four (4) Supervising Administrative Officers; one
(1) Planning Officer IV; eleven (11) Administrative Officers (AO) V; one (1) Librarian IV; one
(1) Information Technology Officer; one (1) Computer Main Technician; one (1) Librarian III;
four (4) AOs Ill; three (3) AOs Il twelve (12) Senior Administrative Assistant ll; one (1)
Planning Analyst II; twenty (20) Administrative Assistant (ADAS) VI; one (1) Computer


Operator Ill; twelve (12) ADAS V; twelve (12) ADAS Ill; one (1) Bookkeeper Ill; three (3)
Records Officer |; fourteen (14) ADAS Il; five (5) ADAS |; one (1) Chauffeur IV; one (1)
Security Guard Ill: ten (10) ADA VI; one (1) Driver IV; one (1) Buyer Il; fourteen (14) ADA IV;
and six (6) ADA I

The non-legal personnel shall have the same salaries and benefits as that of their
counterparts in the Office of the Solicitor General.

The salaries, benefits and privileges of the personnel of the OGCC granted under
this Act shall automatically be increased to keep in step with any corresponding increase in
salaries and privileges subsequently granted to their respective counterparts in the judiciary,
the Office of the Solicitor General and the Court of Appeals.

SECTION 7. Personnel benefits and privileges — Provisions of other laws to the contrary
notwithstanding, and subject to availability of funds, the OGCC may provide its employees
the following benefits:
a. Health care services through a health maintenance organization (HMO).
b. Accident insurance for all employees for approved travels while in the
performance of official duties;
c. Provided the efficiency of the service is not prejudiced, scholarships for the
deserving employees on official time to upgrade their knowledge and skills.
Provided further, That scholars under this provision shall be selected on the
basis of merit as determined by competitive examination; and
d. A Provident Fund which shall consist of, but not be limited to contributions
made by the OGCC and by its employees;
e. Reimbursement of registration fees and expenses for trainings and seminars,
Mandatory Continuing Legal Education fees and professional license fees.

SECTION 8. Other Benefits - Provisions of other laws to the contrary notwithstanding, the
legal personnel of the OGCC are authorized and shall continue to receive allowances and
honoraria from government corporations which shall not exceed One Hundred Percent
(100%) of their annual basic salary. The employees of the OGCC may likewise be
extended such benefits and privileges as are given to the employees of government
corporations.

SECTION 9. Retirement Benefits — Any law to the contrary notwithstanding, and consistent
with Section 4 of this Act granting them the same retirement benefits and privileges of their
counterparts in the judiciary, the retirement benefits of the GCC, DGCC, AGCC, GCA IV and
GCA Ill shall be automatically increased whenever there is an increase in the salaries and
allowances of the same positions from which he or she retired.

SECTION 10. Attomey’s Fees and Special Assessment - The OGCC is authorized to
receive twenty percent (20%) of the money claims collected by, or awarded/adjudged to
government corporations, in addition to the attomey's fees awarded by a court, tribunal, or
panel, including awards/judgments, stipulated under court-approved compromise
agreements. The OGCC is hereby authorized to use such awards and attomey's fees to
meet contingencies, obligations and undertakings and/ or for employee benefits and
incentives, necessary or proper to promote efficiency in the service as determined by the
GCC.

The GCC is likewise authorized to make special assessments upon govemment
corporations and to disburse and use the same for such contingencies, obligations and
undertakings, and to provide for employees’ benefits and incentives allowed under the law.

Attomey’s fees and special assessments shall be deposited in an authorized
government depository and shall be made available for expenditure without the need for a
cash disbursement ceiling for purposes of meeting obligations and contingencies, upgrading
facilities and equipment, granting of employees’ benefits and incentives and defraying such


other expenses not provided for in the General Appropriations Act subject to accounting and
auditing procedures.

SECTION 11. Franking Privilege — A\ll official matters and telegrams of the OGCC addressed
for delivery within the Philippines shall be received, transmitted and delivered free of charge.

SECTION 12. Appropriations - The amount needed for employees’ salaries, mandatory
allowances and benefits under other laws, maintenance and other operating expenses and
capital outlay shall be appropriated in the budget of the OGCC under the annual General
Appropriations Act

SECTION 13. Repealing Clause - All laws, decrees, rules and regulations inconsistent with
the provisions of this Act are hereby repealed or amended accordingly.

SECTION 14. Separability Clause — if any of the provisions of this Act is declared invalid or
unconstitutional, the provisions not affected thereby shall continue to be in full force and
effect.

SECTION 15. Effectivity — This Act shall take effect after fifteen (15) days from its publication
in the Official Gazette or in a national newspaper of general circulation

Approved,