WOME TERY

FIFTEENTH CONGRESS OF THE )

REPUBLIC OF THE PHILIPPINES )

First Regular Session )
10 WW -6 ANS.

SENATE

S.No. 2 99 . RECEIVED BS phe

Introduced by Senator Antonio “Sonny” F. Trillanes IV

EXPLANATORY NOTE

The Office of the Government Corporate Counsel (OGCC) was found on December 01, 1935

under the DOJ. It was then known as the Government Counsel Division of the DOJ. It acts as the
premier law office of government-owned and controlled corporations (GOCCs), their
subsidiaries, other corporate offspring and government-acquired asset corporations. As such, the
OGCC safeguards the legal interest of all government-owned and controlled corporations
(GOCCs), their subsidiaries, other corporate offspring and government-acquired asset

corporations.

‘This bill seeks to strengthen and further professionalize OGCC by redefining, expanding,
strengthening, and rationalizing its organization. This bill also seeks to provide an upgrade to the
compensation as well as the benefits being received by the employees of the OGCC.

It is hoped that thru the passage of this bill, we would have a more effective and efficient OGCC,
and that we would retain the services of the people in the OGCC, men and women who are

committed to providing excellent and professional service for our country.

In view of the foregoing, immediate approval of this measure is earnestly sought.

KS | _
ANTONIO “SONNY” F. TRILLANES IV

Senator


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

10 A 6 ANS

ven AY

Introduced by Senator Antonio “Sonny” F. Trillanes IV

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 House of Representatives of the Philippines in Congress
assembled:

SECTION 1. Declaration of Policy. - 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 offsprings, 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”.

‘Toward this end, the State shall require the improvement of legal services in the
government to efficiently and effectively address the expanding needs of these government
corporations in accordance with its initiative towards an improved fiscal management and good

corporate governance.

SEC. 2. Jurisdiction and mandate. - Any law to the contrary notwithstanding, the Office
of the Government Corporate Counsel (“OGCC”) shall be the legal counsel and principal law
office of all government corporations. All government corporations shall refer to the OGCC the
following:

) All legal questions for opinion and advice;

b) Prior to their execution, all contracts for review; and


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©) 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 legal department of the government corporation as collaborating counsel
to handle cases, as the urgency or expediency of circumstances may warrant.

In addition, the OGCC shall:

a) Conciliate, mediate, arbitrate or adjudicate all disputes or controversies exclusively
between government corporations;

b) Exercise control and supervision over the legal departments of all government
corporations;

©) Approve the engagement of services of private lawyers by the government
corporations; and

4) Enforce the Property Insurance Law pursuant to Republic Act No. 656, as amended by
Presidential Decree No. 245, in domestic or international transactions.

‘The OGCC shall be an independent and autonomous office attached to the Department of
Justice. All opinions and issuances of the OGCC shall be binding on all government

corporations.

SEC. 3, Expansion and Upgrading of Positions. - The GCC shall have a cabinet rank
and the same prerogatives, salary, allowances, benefits and privileges as the Presiding Justice of
the Court of Appeals. He/she shall be assisted by a Deputy Government Corporate Counsel
(“DGCC”) and twelve (12) Assistant Government Corporate Counsels (“AGCC”) who shall
have the rank, salary, allowances, retirement and benefits, and privileges of an Associate Justice
of the Court of Appeals.

No person shall be appointed GCC, DGCC or AGCC unless he/she is a natural-born
citizen of the Philippines and, for at least ten (10) years, has been engaged in the practice of law
in the Philippines.

‘The number, rank, qualifications for appointment, salary, allowances, retirement and
other benefits, and privileges of the other members of the legal staff shall be as follows:

a) Twenty (20) Government Corporate Attorney IV (the “GCA TV”) who shall have the
rank, salary, allowances, retirement and benefits, and privileges of a Regional Trial Court Judge.
No person shall be appointed GCA IV unless he/she is a natural-born citizen of the
Philippines and, for at least eight (8) 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 II) who shall have the
rank, salary, allowances, retirement and benefits, and privileges of a Metropolitan Trial Court
Judge. No person shall be appointed GCA III unless he/she is a natural-born citizen of the
Philippines and, for at least five (5) years, has been engaged in the
practice of law in the Philippines;

c) Twenty (20) Government Corporate Attorney II (the “GCA II”) who shall have the
rank, salary, allowances, retirement and benefits, and privileges of a Municipal Trial Court Judge
in Cities. No p.- won shall be appointed GCA II unless he/she is a natural-born citizen of
the Philippines and, for at least four (4) years, has been engaged in the practice of law in the
Philippines;

d) Ten (10) Government Corporate Attorney I (the “GCA I”) who shall have the rank,
salary, allowances, retirement and benefits, and privileges of a Municipal Trial Court Judge. No
person shall be appointed GCA I unless he/she is a natural-born citizen of the Philippines and,
for at least three (3) years, has been engaged in the practice of law in the Philippines;

e) Seven (7) Associate Government Corporate Attorney IT who must be members of the
Philippine Bar and, for at least two (2) years, has been engaged in the practice of law in the
Philippines; and,

£) Five (5) Associate Government Corporate Attorney I who must be members of the
Philippine Bar and, for at least one (1) year, has been engaged in the practice of law in the
Philippines,

The GCC shall serve for a fixed term of six (6) years reckoned from the date of his/her
appointment. The fixed term of the GCC shall apply and commence to appointments to the said
position beginning July 1, 2010.

The GCC, DGCC and AGCC shall be appointed by the President of the Philippines. The
other members of the legal staff and administrative personnel shall be appointed by the GCC.
Appointments of the DGCC, AGCC and other members of the legal staff shali be deemed
permanent upon compliance with the qualification standards heretofore stated.

The administrative structure of the OGCC shall be organized into the Finance and
Accounting Services, the Human Resource and Management Services, the Case and Records
Management Services, the Library Management and Information Technology Services and the
Property and Supply Services.

‘The legal and non-legal staff 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 and receive the corresponding salary
and benefits without necessity of new appointment.


SEC. 4. Compensation. - The basic monthly compensation of the legal staff shall be as

follows:
Position Salary Grade
From To

Government Corporate
Counsel * o
Deputy Government 29
Corporate Counsel *
Assistant Government 29
Corporate Counsel *”
Government Corporate 28 oO
Attorney IV »
‘Government Corporate 27 — 8
Attorney III

| Government Corporate [26 ~ ”
Attorney II
Government Corporate 7 25 6
Attorney I
Associate Government 2 ~
Corporate Attorney I 4
‘Associate Government 18 3 ~
Corporate Attomey II

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

The salaries and privileges of the personnel of the OGCC granted under this Act may
further be increased to match any corresponding increase in salaries and privileges subsequently

granted to their respective counterparts in the judiciary.

SEC. 5. Personnel benefits and privileges. - Provisions of other laws to the contrary
notwithstanding, the OGCC may provide its employees the following benefits:



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a.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;

b. Accident insurance for all employees to be procured by the office at its own
expense during travels while in the performance of official duties;

c. 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;

da 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.

SEC. 6. Seminar and other Professional Fees, - Subject to availability of funds, fees for
relevant seminars, as well as professional 3 membership fees for lawyers, registration fees and
related miscellaneous 4 expenses incurred in completing the mandatory continuing legal
education (MCLE) shall be borne by the office. Professional membership, registration fees
including those for mandatory continuing professional education (CPE), and related
miscellaneous expenses of other employees holding positions for which a professional license is
required by the office, shall also be borne by the OGCC.

SEC. 7. Transportation Benefits, - Subject to availability of funds, employees shall be
provided with contracted transportation services until such time as the office can procure

additional motor vehicles for this purpose.

SEC. 8. Other Benefits. - Provisions of other laws to the contrary notwithstanding, the
legal staff of the OGCC are allowed to receive allowances and honoraria from its client-
government corporations. Employces of the OGCC may likewise be extended such benefits and
privileges as are given to the employees of their clients.

When the exigency of the service so require, any member of the legal staff may be
designated by the GCC to act in concurrent capacity as corporate officer of, or assigned to
perform special or additional tasks in any of the client government corporations of the OGCC
and by virtue of such designation or assignment, receive such additional compensation and

privileges as may be granted them by the government corporation concerned.


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SEC. 9. Attorney’s fees and Special Assessment, - The OGCC is authorized to receive
twenty percent (20%) of all the money claims collected by or awarded/adjudged to dent-
government corporations in addition to the attorney’s fees awarded by a court, tribunal or panel,
including awards/judgments, stipulated under court-approved compromise agreements. The
OGCC is hereby utilized to use such awards and attorneys fees to meet contingencies,
obligations and undertakings, or for employee salaries, allowances, other benefits and incentives,
necessary or proper to promote efficiency in the service as determined by the GCC subject to the
rules and regulations of the Commission on Audit and the Department of Budget and
Management may authorize.

The GCC is likewise authorized to make special assessments upon its client government
corporations to similarly meet such contingencies, obligations and undertakings, or to provide for
employee salaries, allowances, other benefits and incentives, as may be warranted or proper as
determined by the GCC.

SEC. 10. Special Allowance. - The GCC, DGCC, AGCC and other members of the legal
staff may be granted special allowances in such amounts to be determined by the GCC to
implement the salary increases. The grant of special allowances shall be implemented uniformly
in such amounts and up to extent only that can be supported by the funding source specified in

Section 11 hereof.

SEC. 11. Funding. - The funds required for the implementation of this Act including
employee benefits shall be taken from:
I. 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;
IL. Special assessments made by the GCC upon client government corporations; and.
IIL, Other revenues, savings, fees generated and collected and donations received by the OGCC.

SEC. 12. Franking Privilege. - All official matters and telegrams of the OGCC
addressed for delivery within the Philippines shall be received, transmitted and delivered free of
charge, Provided, That such mail matters when addressed to private persons or non- government
offices shall not exceed one hundred and twenty (120) grams.


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SEC. 13. Appropriations, ~ The amount needed for employees’ salaries, mandatory
allowances and benefits under other laws and office expansion shall be appropriated in the
budget of the OGCC under the annual General Appropriations Act.

SEC. 14. Implementing Rules and Regulations. -Within sixty (60) days from the
approval of this Act, the GCC in consultation with the Secretary of the Justice and Secretary of
Budget and Management, shall promulgate such rules and regulations as may be necessary to

carry out the provisions of this Act.

SEC. 15. Repealing Clause, - Provisions of Executive Order No. 292 or the Revised
Administrative Code of 1987, as amended, Executive Order No. 878 dated March 4, 1983,
Presidential Decree No. 1415 dated June 9, 1978, Republic Act No. 6000 dated August 4, 1969
and other pertinent laws, rules and regulations shall remain in force and effect unless otherwise

contrary or inconsistent with the provisions of this Act.

SEC, 16, 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.

SEC. 17. Bffectivity - This Act shall take effect after fifteen (15) days from its

publication in a national newspaper of general circulation.

Approved,