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Republic of the Philippines
HOUSE OF REPRESENTATIVES,

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Quezon City 0)

EIGHTEENTH CONGRESS
First Regular Session

House Bill No. _ 579

Introduced by CIBAC Party-List Representatives
Eduardo ‘Bro. Eddie’ C. Villanueva and Domingo C. Rivera

AN ACT CREATING THE NATIONAL INDEPENDENT COMMISSION
AGAINST CORRUPTION (NICAC), APPROPRIATING FUNDS
THEREFOR AND FOR OTHER PURPOSES

EXPLANATORY NOTE

The Philippines is known to be one of the oldest democracies in Asia
Throughout its history, the nation has fought for its independence and sovereignty
against all forms of threats both within and without. Yet, despite all efforts, there
remains a fight yet to be won: the country's perennial fight against systemic and
endemic corruption in government.

Indeed, the effects of massive corruption in the Philippines can be seen in all
comers of the country: buildings, bridges, and other infrastructures built with subpar
materials; the poor deprived of much-needed social services and welfare goods;
entrepreneurs strained to submit to under the table transactions in order to expedite
permits and licenses; corporations discouraged from investing significantly, if any, in
the country’s economy because of too much complexities in government processes,
both official and unofficial; to name a few—all caused by corrupt officials who bear the
mandate of putting the Filipinos first before everybody else.

While the government's efforts to address corruption has made some
‘substantial inroads, much is still needed to be done. In the 2018 Transparency
International Corruptions Perception Index, the Philippines ranked 99" out of 180


countries, jumping 12 notches from its 111" rank placement in 2017." Despite this
improvement, however, it was also noted that the Philippines’ cumulative score of 36
is significantly less than the Asia Pacific average of 44.2 This means that the
Philippines still has to make substantial reforms in eliminating and thwarting corrupt
practices in government.

Recognizing the need to strengthen the anti-corruption framework in the
Philippines, this bill creates the National Independent Commission Against Corruption
(NICAC) as an attached agency of the Office of the Ombudsman. The NICAC is largely
patterned after Hong Kong's Independent Commission Against Corruption, which
successfully eradicated syndicated corruption in Hong Kong,

The NICAC shall formulate a National Anti-Corruption Plan and provide policy
recommendations to the Office of the Ombudsman to effectively combat corruption in
government. To ensure coordination between the NICAC and the Office of the
Ombudsman, this bill mandates that the NICAC shall be headed by the Ombudsman
or any of his/her deputies. The NICAC shall also submit periodic reports to the
Ombudsman to ensure that the efforts of both agencies are coordinated and to avoid
duplication of work.

Immediate passage of this bill is earnestly sought.

Ze. Lil
HON. EDUARDO “BRO. EDDIE” C. VILLANUEVA

12010, January 29. Philippines sighty Improves n 2018 on global coruption index. Retrieved from
5: IIwowew. tion/222177-philippines-rankin jons-index-2018 (date

last accessed: June 24,2019),
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Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City

EIGHTEENTH CONGRESS
First Regular Session

House Bill No.

introduced by CIBAC Party-List Representatives
Eduardo ‘Bro. Eddie’ C. Villanueva and Domingo C. Rivera

AN ACT CREATING THE NATIONAL INDEPENDENT COMMISSION
AGAINST CORRUPTION (NICAC), APPROPRIATING FUNDS
THEREFOR AND FOR OTHER PURPOSES

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

SECTION 1. Title. - This Act shall be known as the ‘National Independent
Commission Against Corruption Act.”

SECTION 2. Declaration of Policy. — Its the declared policy of the State to maintain
honesty and integrity in public service and to take effective and efficient measures in
the battle against graft and corruption. Towards this end, the State shall continuously
institute reforms to ensure that graft and corruption is eliminated in all levels of the
government.

SECTION 3. Organization. — There is hereby created the National Independent
Commission Against Corruption, hereinafter referred to as the Commission, to
implement and coordinate policy for the prevention, control and ultimately, the
elimination of graft and corrupt practices as defined under relevant laws at all levels of
the government.

The Commission shall be attached to the Office of the Ombudsman for policy
coordination.


SECTION 4. Powers and Functions of the Commission. - The Commission shall
have the following powers and functions:

a) To formulate and implement a National Anti-Corruption Plan (NACP) and action
agenda, and reinforce program strategies in accordance with the NACP;

b) To examine the bidding, negotiation, execution and implementation of public
contracts in pursuit of the objectives of the NACP;

©) To verify if the award of public works and supply contracts are conducted
properly in accordance with law, pursuant to the goals provided for in the NACP:

d) To undertake a comprehensive audit, which shall include, but not be limited to,
lifestyle checks on any public officer/employee;

e) To endorse to the Office of the Ombudsman for appropriate action after a
finding of a prima facie case of violation of anti-corruption laws in the exercise
of its powers under items (b) to (d) above, upon complaint by any person or
‘motu proprio;

f) To conduct sustained information and education drives aimed at preventing
corruption and public misconduct; and

9

To organize specialized training of personne! of the government and
representatives from the private sector and civil society in the prevention,
investigation and prosecution of graft and corrupt practices.

SECTION 5. National Anti-Corruption Plan. — Within ninety (90) days from the
approval of this Act, the Commission shall submit to the Office of the Ombudsman and
to Congress a five-year plan and study containing detailed policy proposals for the
elimination of graft and corruption in all branches, offices, agencies and
instrumentalities of government.

The NACP shall also be disseminated to all government agencies.

SECTION 6. Composition of the Commission. — The Commission shall be headed
by the Ombudsman or any of the Deputy Ombudsman as its Chairperson. He/she
shall be assisted by two (2) Commissioners, who shall serve on a full-time basis.

a) The Commissioners shall include at least one (1) lawyer, accountant or
member of the academe who is in the field of public administration. Each
Commissioner shall be selected and appointed by the President, without the
requirement of confirmation, from a pool of candidates to be nominated by peak
professional organizations of accountants or lawyers or by the University or
College Administration if the nominee is a member of the academe. A "peak
professional organization” refers to an organization duly recognized by
members as representative of, and having the largest active membership in
their profession, and is existing for at least ten (10) years. The mechanics of
the nomination process shall be provided for in the Implementing Rules and
Regulations for this Act.


b) The Commissioners must be citizens of the Philippines, at least thirty-five (35)
years of age, known and recognized for moral uprightness and patriotism, of
unquestionable integrity, and recognized experts in any of the fields of law,
accounting or public administration. They must not have been candidates for
any elective national or local office in the immediately preceding election,
whether regular or special

©) The Commissioners shall serve for three (3) years, and may be reappointed as
such for another term of three (3) years; provided, that the reappointment of a
Commissioner shall follow the nomination process outlined in this Section

d) The President of the Philippines may remove any member of the Commission,
upon compliance with due process, for any of the following reasons:

i. ‘The member suffers from physical or mental incapacity that renders him
or her incapable of properly discharging the duties and responsibilities
of the Commission and such incapacity has lasted for more than six (6)
months;

The member has committed acts that are shown prima facie to be
fraudulent or illegal or manifestly opposed to the aims and interests of
the Commission and/or the government; or

iti,

The member ceases to possess the qualifications required in this Act or
its implementing rules and regulations.

e) The Commissioners shall not hold any public office or employment during their
tenure. Except as otherwise provided by law, in no case shall any member of
the Commission appoint representatives to act on his/her behalf.

f) The Commissioners shall have the same rank and emoluments as that of a
Deputy Ombudsman.

SECTION 7. The Secretariat. - The Commission shall be assisted by a Secretariat
to be headed by an Executive Director.

The Secretariat shall be composed of individuals of known moral probity and
dedication to public service.

a) The Executive Director. The Executive Director shall be appointed by the
Chairperson with the concurrence of the Commissioners. The Executive
Director shall attend the Commission's deliberations, monitor the
implementation of the programs of the Commission, and manage its day-to-day
operations.

b)

Functions of the Secretariat. The Secretariat shall provide technical and
administrative support to the Commission and shall oversee all its operational
activities.


SECTION 8. Organizational Structure. - The Commission shall be composed of
three departments:

a) The Operations Department, which shall carry out the investigation and
endorsement to the proper agency of cases investigated for the prosecution of
offenses;

b

The Corruption Prevention Department, which shall carry out assessment of
areas in government offices where corruption would be most likely, and make
recommendations on how opportunities for corruption can be eliminated or
reduced; and

c) The Community Relations Department, which shall gather support and
information from the public and work towards changing the public attitude
regarding corruption.

SECTION 9. Transparency and Availability of Records. - The Commission shall
maintain and preserve its records, documents and papers, and shall make the same
available to the public, except when disclosure will pose serious damage to the
Commission's case or when a party would be deprived of his/her right to a fair and
impartial trial

SECTION 10. Implementing Rules and Regulations and Standard Forms. — Within
ninety (80) days from the effectivity of this Act, the Commission, in consultation with
the head of the Development Academy of the Philippines, the chair of the Civil Service
Commission, the Chair of the Commission on Audit, the Ombudsman, a representative
from the Sandiganbayan and other relevant stakeholders, shall promulgate the
implementing rules and regulations for the proper implementation of this Act.

SECTION 11. Restrictions. — No writ of injunction shall be issued by any court to
delay an investigation being conducted by the Commission.

SECTION 12. Total Support of Other Government Units. - The Commission may
require any government agency to make available their personnel and facilities to
attain the objectives of this Act

SECTION 13. Malicious Prosecution. — Any compliant found to have been initiated
with malice shall be dealt with in accordance with law.

SECTION 14. Franking Privilege. — All official mail letters and telegrams of the
Commission 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
twenty (120) grams. All mail matters and telegrams sent through government
telegraph facilities containing complaints to the Commission shall be transmitted free
of charge, provided that the telegram shall contain not more than one hundred fifty
(150) words.


OCOVAHAON=

SECTION 15. Annual Report. — The Commission shall, on or before June 30 of each
year, or by such later date as the President may allow, submit to the President and to
Congress, a report on the performance of the Commission in combatting graft and
corruption. The Commission shall furnish a copy of such report to the Office of the
Ombudsman, and shall also make available a copy of the report to the general public

SECTION 16. Appropriations. — For the first year of the implementation of this Act,
an initial amount of Fifty Million Pesos (Php50,000,000.00) is hereby appropriated.
Thereafter, the amount necessary to carry out the provisions of this Act shall be
included in the General Appropriations Act.

SECTION 17. Repealing Clause. — All provisions of laws, presidential decrees, letters
of instruction and other presidential issuances which are incompatible or inconsistent
with the provisions of this Act are hereby amended or repealed accordingly.

SECTION 18. Separability Clause. — If any provision of this Act is declared
unconstitutional, the other provisions not affected thereby shall continue to be in full
force and effect.

SECTION 19. Effectivity Clause. - This Act shall take effect fifteen (15) days

following its publication in the Official Gazette or two (2) newspapers of general
circulation.

Approved,