FOURTEENTH CONGRESS OF THE ) 
REPUBLIC OF THE PHILIPPINES 
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Second Regular Session 
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Prepared and submitted jointly by the Committee~~~30~~duSit~~Yand. 
uman - 
Rights; Civil Service and Government Reorganization and Finance t
h
 
Senators Enrile, Trillafies IV, Lacson and Escudero as authors thereof 
AN ACT 
TO STRENGTHEN THE OFFICE OF THE GOVERNMENT CORPORATE 
RATIONALIZING AND FURTHER PROFESSIONALIZING ITS ORGANIZATION, 
UPGRADING 
EMPLOYEE 
BENEFITS 
AND 
APPROPRIATING 
FUNDS 
THEREFOR 
COUNSEL, 
BY 
RE-DEFINING, 
EXPANDING, 
STRENGTHENING, 
Be it enacted by the Senate and the 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. 
SECTION 2. 
Jurisdiction and mandate - Any law to the contrary 
notwithstanding, the Office of the Government Corporate Counsel (“OGCC”) 
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shall be the legal counsel and principal law office of all government 
corporations. 
All government corporations shall refer to the OGCC the 
following: 
a) 
b) 
c) 
All legal questions for opinion and advice; 
Prior to their execution, all contracts for review; and 
All cases for representatlon 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; 
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 
Enforce the Property Insurance Law pursuant to Republic Act 
No. 656, as amended by Presidential Decree No. 245, in domestic 
or international transactions. 
b) 
c) 
d) 
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. 
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SECTION 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. Helshe 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 helshe is a 
natural-born citizen of the Philippines and, for at least ten (IO) 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 IV”) 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 helshe 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; 
Twenty (20) Government Corporate Attorney 111 (the GCA 111”) who 
shall have the rank, salary, allowances, retirement and benefits, 
and privileges of a Metropolitan Trial Court Judge. No person shall 
be appointed GCA 111 unless helshe 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; 
b) 
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C) 
Twenty (20) Government Corporate Attorney II (the “GCA 11”) who 
shall have the rank, salary, allowances, retirement and benefits, 
and privileges of a Municipal Trial Court Judge in Cities. No p.- w o n  
shall be appointed GCA II unless helshe 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; 
Ten (IO) 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 helshe 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 II 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 (I) 
year, has 
been engaged in the practice of law in the Philippines. 
d) 
f) 
The GCC shall serve for a fixed term of six (6) years reckoned from the 
date of hislher appointment. The fixed term of the GCC shall apply and 
commence to appointments to the said position beginning July 1, 201 0. 
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 
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2s 
and other members of the legal staff shall 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. 
SECTION 4. Compensation - The basic monthly compensation nf the 
legal staff shall be as follows: 
Position 
Government Corporate Counsel 
Deputy Government Corporate Counsel 
Assistant Government Corporate Counsel 
Government Corporate Attorney IV 
Government Corporate Attorney 111 
Government Corporate Attorney II 
Government Corporate Attorney I 
Associate Government Corporate Attorney I 
Associate Government Corporate Attorney I1 
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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 su'bsequently granted to their respective 
counterparts in the judiciary. 
SECTION 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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II. 
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111. 
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IV. 
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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 
oMce. 
Accident insurance for all employees to be procured by the office 
at its own expense during travels while in the performance of 
official duties; 
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; 
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 beneficiarieslheirs. 
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SECTION 6. 
Seminar and other Professional Fees - Subject to 
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availability of funds, fees for relevant seminars, as well as professional 
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membership fees for lawyers, registration fees and related miscellaneous 
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expenses incurred in completing the mandatory continuing legal education 
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(MCLE) shall be borne by the office. Professional membership, registration 
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fees including those for mandatory continuing professional education (CPE), 
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and related miscellaneous expenses of other employees holding positions for 
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which a professional license is required by the office, shall also be borne by 
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purpose. 
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Other Benefits - Provisions of other laws to the contrary 
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notwithstanding, the legal staff of the OGCC are allowed to receive 
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allowances and honoraria from its client-government corporations. 
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Employees of the OGCC may likewise be extended such benefits and 
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When the exigency of the service so require, any member of the legal staff 
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may be designated by the GCC to act in concurrent capacity as corporate 
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officer of, or assigned to perform special or additional tasks in any of the 
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client government corporations of the OGCC and by virtue of such 
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designation or assignment, receive such additional compensation and 
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privileges as may be granted them by the government corporation 
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concerned. 
SECTION 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 
SECTION 8. 
privileges as are given to the employees of their clients. 
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SECTION 9. Attorney’s fees and Special Assessment - The OGCC is 
authorized to receive twenty percent (20%) of all the money claims collected 
by or awardedladjudged to dent-government corporations in addjtion to the 
attorney’s fees awarded by a court, tribunal or panel, including 
awardsljudgments, 
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. 
SECTION I O .  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. 
SECTION 11. Funding - The funds required for the implementation of 
this Act including employee benefits shall be taken from: 
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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; 
Special assessments made by the GCC upon client government 
corporations; and 
Other revenues, savings, fees generated and collected and 
donations received by the OGCC. 
II. 
111. 
SECTION 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. 
SECTION 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. 
SECTION 14. 
Implementing Rules and Regulafions -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. 
SECTION 15. Repealing Clause- Provisions of Executive Order No. 292 
or the Revised Administrative Code of 1987, as amended, Executive Order 
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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. 
SECTION 16. SeparabMty 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 17. Effectivity - This Act shall take effect after fifteen (15) 
days from its publication in a national newspaper of general circulation. 
Approved.