THIRTEENTH CONGRESS OF THE REPUBLIC) 
OF THE PHILIPPINES 
1 
First Regular Session 
1 
SENATE 
Senate Bill No. ___ 
1823 
Introduced By Senator Francis N. Pangilinan 
EXPLANATORY NOTE 
The recent events involving Major General Carlos Garcia of the 
Armed Forces of the Philippines appear to uncover graft and corrupt acts 
in the highest levels of the AFP thus making it imperative for an 
independent and impartial body to initiate and undertake an 
investigation on the matter in order to identify the root causes of 
malpractices in the Armed Forces and recommend criminal prosecution 
as well as long term solutions and reform measures. The AFP is the fortress 
of national defense and as such must maintain integrity and stability at all 
times. Allegations of graft and corruption, especially where higher ranking 
AFP officials are allegedly involved, should not go unnoticed for these 
breed political and military disenchantment. To turn a blind eye is to 
tolerate and encourage further acts of graft and corruption, endangering 
political stability. Moreover, it is the responsibility of the State to ensure that 
the annual budget allocated to the military is properly accounted. Thus, 
the formidable challenge of ridding the government of graft and 
corruption may as well begin with the cleansing of one of the most 
powerful government institutions, 
The proposed bill seeks to create an independent fact-finding 
commission that will investigate and delve into the alleged anomalies 
permeating within the AFP bureaucracy at various levels, committed by 
uniformed personnel and AFP officers alike. 
The commission, to be 
composed of a retired Justice of the Supreme Court, a retired officer of 
the Armed forces with known probity and integrity and representatives of 
both Houses of Congress, is vested with powers necessary to perform its 
functions: inquire, without need of court order, into bank accounts or 
investments which the commission has reasonable ground to believe 
contains proceeds of or are in any way related to acts of graft and 
corruption, issue summons and subpoena, and call upon other 
government agencies for assistance. Based on its findings, the proposed 
fact-finding commission is also tasked to recommend measures to prevent 
the Commission and perpetuation of graft and corruption in the AFP. 
In view of 
earnestly sought. 
the foregoing, the immediate approval of this bill is 


THIRTEENTH CONGRESS OF THE REPUBLIC) 
OF THE PHILIPPINES 
1 
First Regular Session 
1 
S E N A T E  
Senate Bill NO. 
Introduced By Senator Francis N. Pangilinan 
AN ACT CREATING AN INDEPENDENT COMMISSION TO CONDUCT A 
AND CORRUPTION IN THE ARMED FORCES OF THE PHILIPPINES 
THOROUGH FACT-FINDING INVESTiGATlON OF ALLEGATIONS OF GRAFT 
SEC. 1. Creation. - There is hereby created an independent 
Commission which shall investigate all the facts and circumstances of the 
alleged graft and corruption in the Armed Forces of the Philippines, and 
recommend measures to prevent the same. 
SEC. 2. Powers and Functions. -- The Commission shall have the 
following powers and functions: 
(a) Conduct a thorough fact-finding investigation of the allegations 
of graft and corruption in the Armed Forces of the Philippines 
and submit its findings and recommendations to the President, 
the Congress, and other appropriate authorities not later than 
three (3) months from the effectivity of this Act; 
(b) Receive, review and evaluate the evidence adduced and to 
this end, summon witnesses, administer oaths, take testimony or 
receive evidence relevant to the investigation, and to issue 
subpoena ad testificandum or subpoena duces tecum to 
produce documents, books, records and other papers: 
(c) Turn over to the appropriate prosecutorial authorities all 
evidence involving any person when in the course of its 
investigation, the Commission finds that there is reasonable 
ground to believe that such person appears to be liable for acts 
of graft and corruption: 
(d) Notwithstanding the provisions of Republic Act No. 1405, as 
amended, Republic Act No. 6426, as amended, Republic Act 
No. 8791, and other laws, the Commission may inquire into or 
examine any bank deposit, trust or investment fund, or banking 
transaction in the name of and/or utilized by a person, natural or 
juridical, under investigation by the Commission, in any banking 
or non-bank financial institution and their subsidiaries and 
affiliates, without need of court order, when the Commission has 
reasonable ground to believe that such funds contain proceeds 
of or are in any way related to the alleged acts of graft and 
corruption; and 


(e)Exercise such other acts incident to or are appropriate and 
necessary in connection with the objectives of this Act. 
SEC. 3. Bar Against Court Injunction; Exception, Supreme Court. - 
No court, except the Supreme Court, shall issue any restraining order or 
preliminary injunction on any matter involving the official acts of the 
Commission pursuant to this Act and of the Monetary Board under 
paragraph (d) of Section 2 hereof. 
SEC. 4. Composition, Qualification, and Salary. - The Commission 
shall be composed of five (5) members, of whom: 
(a) Members.--The Commission shall be composed of seven (7) 
members : 
(1) a Chairman, who shall be a retired Justice of the Supreme 
Court and shall be appointed by the President: 
(2) two (2) members, who shall be designated by the Senate 
President, one of whom shall be a member of the majority party 
and one of whom shall be a member of the minority party; and 
(3) two (2) members, who shall be designated by the Speaker 
of the House, one of whom shall be a member of the majority party 
and one of whom shall be a member of the minority party. 
(4) one (1) member, who shall be a retired officer of the 
Armed Forces of the Philippines of recognized probity and 
unquestionable integrity and shall be appointed by the President; 
(5) one(1) member, representing the private sector of 
recognized probity and integrity and shall be appointed 
President. 
by the 
(b) Qualifications. - The Chairman and members shall be citizens 
of the Philippines, at least forty (40) years of age, and have an established 
reputation for integrity, honesty, probity and professional competence. 
(c) Salary.-The 
Chairman and members shall be entitled to 
receive reasonable compensation, 
SEC. 
5. Tenure and Turn Over of Records. - The Commission is 
hereby given six (6) months from the effectivity of this Act to attain the 
objectives set forth herein. The Commission shall be functus officio upon 
the lapse of such period and upon submission of its report, and shall turn 
over all its records, assets and properties to the Department of Justice. 
SEC. 6. Orderly Conduct of Proceedings. - The Commission shall 
adopt rules and procedures for orderly conduct of its investigation, 
proceeding and hearing, including the presentation of evidence. The 
rules of evidence under the Revised Rules of Court shall have suppletory 
application. 


SEC. 7. Conduct of Hearings. - Proceedings and hearings of the 
Commission, sitting en banc, shall be open to the public. The Commission 
may, motu proprio or upon request of the person testifying, hold an 
executive or closed-door hearing where matters of national security or 
public safety are involved or the personal safety of the witness warrants 
the holding of such executive or closed-door hearing. The Commission 
shall prescribe the rules to govern such executive or closed-door hearings. 
Any person called to testify before the Commission shall have the 
right to counsel at any stage of the proceedings. 
SEC. 8. Right Against Self-Incrimination; Protection of Witness. - 
No 
person shall be excused from attending and testifying or from producing 
documents, books, records, correspondence, or other evidence in 
obedience to a subpoena issued by the Commission on the ground that 
his testimony or other evidence required of him may tend to incriminate 
him or subject him to penalty or forfeiture. After having invoked his right 
against self-incrimination, his testimony or any evidence produced by him 
shall not be used against him in any proceedings, except for perjury 
committed in so testifying. 
The Commission shall protect any person called to testify by 
providing the necessary and reasonable security arrangements with the 
assistance and cooperation of the Armed Forces of the Philippines and 
other appropriate government agencies. 
SEC. 9. Direct or Indirect Contempt. - The Commission may file a 
petition to cite in direct or indirect contempt any person guilty of 
misbehavior in the presence of or so near the Commission as to obstruct 
or interrupt the proceedings before the same, including disrespect 
towards its officials, offensive personalities towards other, or refusal to be 
sworn or to answer as a witness, or to subscribe to an affidavit or 
deposition, or produce documents, when lawfully required to do so. 
SEC. 10. Personnel of the Commission. - 
The Chairman shall have 
the power to engage the services of such persons or personnel including 
a Commission Counsel, Deputy Commission Counsel(s) or such other 
officials as may be required for the effective performance of its functions 
and responsibilities, to fix their duties and compensation, to organize the 
structure and staffing pattern of the Commission: and to authorize the 
payment of honoraria and/or allowance for deputized officers and 
officials subject to the pertinent accounting and auditing rules and 
procedures. The persons appointed, designated, deputized or contracted 
by the Commission shall be subject to the Civil Service Law, rules and 
regulations. 
SEC. 1 1. Promulgation of Rules and Regulations; Publication of Rules 
and Reports. - The Commission shall have the power to promulgate its 
rules and regulations, enter into contracts, and perform any and all other 
acts necessary or incidental to the attainment of the objectives of this 
Act. 


Commission rules and regulations shall be published in at least two 
(2) national newspapers of general circulation and shall take effect two 
(2) days after its publication. The final report submitted to the President 
and to Congress shall be published. 
SEC. 12. Role of Other Government Agencies. - The Commission 
may call upon any government investigative and prosecutorial agency, 
including the National Bureau of Investigation and the Philippine 
Constabulary/lntegrated National Police, to make available their offices, 
personnel and facilities to attain the objectives of this Act. 
SEC. 
13. Appropriations. - The sum of Three Million Pesos 
(P3,000,000.00) is hereby provided to the Commission, chargeable against 
the Contingent Fund. The said amount shall automatically be released to 
the Commission for disbursement in accordance with the auditing rules 
and regulations. 
SEC. 14. Repealing Clause. - All laws, decrees, executive orders, 
rules and regulations or parts thereof, including the relevant provisions of 
Republic Act No. 1405, as amended, Republic Act No. 6426, as amended, 
Republic Act No. 8791, and other similar laws, as are inconsistent with this 
Act are hereby repealed, amended, or modified accordingly. 
SEC. 15. Separability Clause. - If any provision of this Act is 
declared unconstitutional, the same shall not affect the validity and 
effectivity of the other provisions hereof. 
SEC. 16. Effectivity. - This Act shall take effect two (2) days 
following its publication in at least two (2) national newspapers of general 
circulation. 
Approved,