SIXTEENTH CONGRESS )
REPUBLIC OF THE PHILIPPINES )
Second Regular Session )

HOUSE OF REPRESENTATIVES

introduced by Representative Rufus B. Rodriguez and
Representative Maximo B. Rodriquez, Jr.

House Bill No, 4732

EXPLANATORY NOTE

The State has a right fo recover from public officials or employees, including their
transferees or nominees, properties which were not lawfully acquired by them. Republic Act
(R.A) No. 1379 aims to enforce this right of the State

However, due to modem methods and sophisticated means being employed by corrupt
public officials and employees, they are able to spirit away unlawfully acquired properties
within increasingly short periods of time, and out of the State’s reach. There is, therefore, a
need to amend certain provisions of the law in order for the State to be fully effective in
recovering assets stolen by public officials and employees. The Office of the Ombudsman,
as the chief enforcer of R.A. No. 1379, must likewise keep in step with unscrupulous public
officers and employees and arm itself with the necessary powers to run after their ill gotten
wealth.

With the enactment of this bill into law, an effective deterrent will be set up to prevent public
officials or employees from concealing, destroying or dissipating their unlawfully acquired
properties, thereby safeguarding the interests of the State in the recovery of assets that
rightfully belong to the people.

In view of the foregoing, immediate approval of this bill is earnestly mOOUpRS:

RUFUS B. ROI iUEZ

MAXHMOB. ROPRIGUEZ, JR.


SIXTEENTH CONGRESS )
REPUBLIC OF THE PHILIPPINES i
Second Regular Session
HOUSE OF REPRESENTATIVES
Introduced by Representative Rufus B. Rodriguez and

Representative Maximo B. Rodriguez, Jr.

House Bill No. _ 4732

ANACT
STRENGTHENING THE FORFEITURE POWERS OF THE STATE, AMENDING FOR THE
PURPOSE CERTAIN PROVISIONS OF REPUBLIC ACT NO. 1379, OTHERWISE KNOWN
AS “AN ACT DECLARING FORFEITURE IN FAVOR OF THE STATE ANY PROPERTY
FOUND TO HAVE BEEN UNLAWFULLY ACQUIRED BY ANY PUBLIC OFFICER OR
EMPLOYEE AND PROVIDING FOR THE PROCEEDINGS THEREFOR”

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

SECTION 1. Section 1 (b) of R.A. No, 1379 is hereby amended to read as follows:

(B) “LEGALLY ACQUIRED PROPERTY” MEANS ANY REAL
OR PERSONAL PROPERTY, MONEY, OR SECURITIES WHICH THE
PUBLIC OFFICER OR EMPLOYEE HAS ACQUIRED FROM THE
PROCEEDS OF HIS SALARY, BENEFITS AND/OR OTHER
EMOLUMENTS, AND/OR FROM OTHER LAWFUL INCOME SUCH AS,
BUT NOT LIMITED TO, BUSINESS INTERESTS. IT SHALL ALSO
INCLUDE REAL OR PERSONAL PROPERTY, MONEY OR
SECURITIES WHICH THE PUBLIC OFFICER OR EMPLOYEE HAS, AT
ANY TIME, ACQUIRED BY INHERITANCE, OR BY DONATION
BEFORE HIS BECOMING A PUBLIC OFFICER OR EMPLOYEE, OR
ANY PROPERTY ALREADY PERTAINING TO HIM WHEN HE
QUALIFIED FOR PUBLIC OFFICE OR EMPLOYMENT, AND THE
INCOME FROM SAID PROPERTIES.

SECTION 2. Insert new Section 1 (C) to R.A. No. 1379 to read as follows:

(C) “ILLEGALLY ACQUIRED PROPERTY” SHALL REFER TO
THE PROPERTY NOT FALLING UNDER PARAGRAPH B OF
THIS SECTION. IT ALSO INCLUDES:

a. PROPERTY UNLAWFULLY ACQUIRED BY THE
RESPONDENT, BUT ITS OWNERSHIP IS CONCEALED BY ITS BEING
RECORDED IN THE NAME OF, OR HELD BY, THE
RESPONDENT'S SPOUSE, ASCENDANTS, DESCENDANTS,
RELATIVES, OR ANY OTHER PERSON EXCEPT IN THE FOLLOWING

INSTANCES:

4. WHEN THE __RESPONDENT’S _ SPOUSE,
ASCENDANTS, DESCENDANTS, OR ANY OTHER PERSON
CAN PROVE THAT HE ACQUIRED SAID PROPERTY FROM

THE PROCEEDS OF HIS SALARY, BENEFITS AND/OR


EMOLUMENTS, OR FROM THE PROCEEDS OF HIS BUSINESS
INTERESTS.

2. WHEN THE _ RESPONDENT’S _ SPOUSE,
ASCENDANTS, DESCENDANTS, OR ANY OTHER PERSON
CAN PROVE THAT THE PROPERTY WAS RECEIVED
THROUGH DONATION OR INHERITANCE FROM OTHER
PERSONS OTHER THAN RESPONDENT.

b. PROPERTY UNLAWFULLY ACQUIRED BY THE
RESPONDENT, BUT TRANSFERRED BY HIM TO ANOTHER
PERSON OR PERSONS.

c. PROPERTY DONATED TO THE RESPONDENT DURING HIS
INCUMBENCY, UNLESS HE CAN PROVE THAT THE DONATION IS
LAWFUL.

SECTION 3. Section 2 of R.A. No. 1379 is hereby amended to read as follows:

“SEC. 2. Filing of petition. - Whenever any public officer or
employee has acquired during his incumbency an amount of
property which is manifestly out of proportion to his salary as such
public officer or employee and to his other lawful income and the
income from [legitimately] LEGALLY acquired property, said
property shall be presumed prima facie to have been unlawfully
acquired. The  {Solicitor—General] OFFICE OF THE
OMBUDSMAN, MOTU PROPIO OR upon VERIFIED complaint by
any [taxpayer-to-the-city-oF-provincial-fiscal-who] PERSON shall
conduct [a-previous-inquiry] A FACT-FINDING INVESTIGATION
{similar—to—preliminary—investigations—in—criminalcases]_ TO
DETERMINE IF [and-shall-certifyto-the-Solicitor_General-that
there-is-reasonable-ground-to-believe] THERE EXISTS PRIMA
FACIE EVIDENCE THAT A PROPERTY HAS BEEN
UNLAWFULLY ACQUIRED [that-there-has_been-committed_a
violation-of-this-Act-and-the-respondent-is-probably-guilty-thereot].
IT [J shall file, in the name and on behalf of the Republic of the
Philippines, [in-the-Court-of First Instance-of-the city-or province]
WITH THE SANDIGANBAYAN OR THE APPROPRIATE
REGIONAL TRIAL COURT where said public officer or employee
resides or holds office, a petition for a writ commanding said
officer or employee to show cause why the property aforesaid, or
any part thereof, should not be declared property of the State:
Provided, That no such petition shall be filed [within-one—year
before-any—general-election-or—within_three-months—before-any

election] AGAINST A PUBLIC OFFICER OR
EMPLOYEE WITHIN THE ELECTION PERIOD"

The resignation, dismissal or separation of the officer or employee
from his office or employment in the Government or in the
Government-owned or controlled corporation shall not be a bar to
the filing of the petition. [Provided,-howeverthat-the-right to-file

hi r-four-years—from-the-date-of

officeror-employee—-concemed, ose-who-have
eased -to-hold-office-within-ten-years-prior to-the-approval-of this


ct-in-which-case-the pi i hall-preseribe-atter four y

SECTION 4. Insert new Sections 2-A and 2-B to R.A. No, 1379 to read as follows:
SEC. 2-A. PRIMA FACIE PRESUMPTIONS. —

(1) WHENEVER ANY PUBLIC OFFICER OR EMPLOYEE HAS
ACQUIRED DURING HIS INCUMBENCY PROPERTY OR
PROPERTIES WHICH ARE MANIFESTLY OUT OF PROPORTION TO
HIS SALARY, AS SUCH PUBLIC OFFICER OR EMPLOYEE, AND TO
HIS OTHER LAWFUL INCOME, AND THE INCOME FROM OTHER
LEGALLY ACQUIRED PROPERTY/PROPERTIES, SAID PROPERTY
SHALL BE PRESUMED PRIMA FACIE TO HAVE BEEN UNLAWFULLY
ACQUIRED.

(2) FAILURE OF A PUBLIC OFFICER OR EMPLOYEE TO FILE
A STATEMENT OF ASSETS, LIABILITIES AND NETWORTH WITHIN
THE PERIOD PRESCRIBED BY LAW FROM DATE OF ASSUMPTION
TO OFFICE SHALL BE PRIMA FACIE EVIDENCE THAT SAID PUBLIC
OFFICER OR EMPLOYEE HAS NO PROPERTY, ASSET OR
BUSINESS INTEREST TO DECLARE AT THE BEGINNING OF HIS
PUBLIC SERVICE,

(3) FAILURE OF A PUBLIC OFFICER TO FILE A STATEMENT
OF ASSETS, LIABILITIES AND NET WORTH FOR ANY PARTICULAR
YEAR AFTER ASSUMPTION TO OFFICE SHALL BE PRIMA FACIE
EVIDENCE THAT THE PUBLIC OFFICER OR EMPLOYEE HAS NO
OTHER INFORMATION TO DECLARE OUTSIDE OF HIS
DECLARATION IN HIS PRIOR SUBMISSIONS, WITHOUT PREJUDICE
TO ANY LIABILITIES THAT MAY HAVE BEEN INCURRED UNDER
EXISTING LAWS.

SEC. 2-B, ADVERSE CLAIM PRIOR TO FILING OF PETITION. —
WHEN, DURING OR AFTER THE FACT-FINDING INVESTIGATION OF
THE OFFICE OF THE OMBUDSMAN, IT APPEARS THAT THERE IS
REASONABLE GROUND TO BELIEVE THAT A PUBLIC OFFICER OR
EMPLOYEE HAS UNLAWFULLY ACQUIRED PROPERTY, THE SAID
OFFICE, ON BEHALF OF THE REPUBLIC OF THE PHILIPPINES, MAY
FILE AN ADVERSE CLAIM IN THE PROPER REGISTRY OF DEEDS,
OR THE APPROPRIATE PUBLIC REGISTRY, SETTING FORTH A
DESCRIPTION OF THE PROPERTY/IES COVERED BY THE FACT-
FINDING INVESTIGATION, AND THE CLAIM OF RIGHT OR INTEREST
OF THE STATE THEREIN AS POSSIBLE SUBJECTS OF
FORFEITURE.

SECTION 5. Section 4 of R.A. No. 1379 is hereby amended to read as follows:

"SEC, 4, Period TO [forthe] answer PETITION. - The respondent
shall have a period of fifteen days FROM NOTICE within which to
[present] FILE his answer.”

SECTION 6. Insert new Section 5-A to R.A. No. 1379 to read as follows:

SEC. 5-A. AUTHORITY TO SELL PENDING FORFEITURE
PROCEEDING. -INCASE THERE IS DANGER OF DEPRECIATION
TO THE VALUE OF THE PERSONAL PROPERTY OR SPOILAGE IN
CASE OF PERISHABLE PROPERTIES, UPON MOTION FILED BY THE


OFFICE OF THE OMBUDSMAN BEFORE THE PROPER COURT, THE
PERSONAL PROPERTY SUBJECT OF FORFEITURE MAY BE SOLD
AT PUBLIC AUCTION PENDING THE RESOLUTION OF THE
FORFEITURE PROCEEDING. THE PROCEEDS OF THE SALE AT
PUBLIC AUCTION SHALL BE HELD IN TRUST BY THE OFFICE OF
THE OMBUDSMAN UNTIL THE FORFEITURE PROCEEDING IS
FINALLY RESOLVED.

SECTION 7. Section 6 of R.A. No, 1379 is hereby amended to read as follows:

“SEC. 6. Judgment - If the respondent is unable to show to the
satisfaction of the court that he has lawfully acquired the property in
question, then the court shall declare such property[} forfeited in favor of
the State, and by virtue of such judgment the property aforesaid shall
become property of the State. Provided, THAT IF ANY PROPERTY
DECLARED FORFEITED IN FAVOR OF THE STATE HAD BEEN
LOST, DESTROYED OR HAD DEPRECIATED IN VALUE, THE COURT
MAY INCLUDE A DISPOSITION IN THE JUDGMENT, OR ISSUE SUCH
SUPPLEMENTAL JUDGMENTS AS MAY BE NECESSARY, TO
FORFEIT SUCH FUNDS OR PROPERTIES OWNED BY THE
RESPONDENT AS MAY BE SUFFICIENT TO SATISFY THE STATE'S
CLAIM, PROVIDED, FURTHER, [That-no-judgment-shall-be-rendered
within six months before any general election or within three months
before-any-special-election.-The-Court- mayin-addition,-refer-this-case-to
the-corresponding-Executive-Department-for-administrative-or-criminal
action,or-both.] THAT THIRTY-FIVE PERCENT (35%) OF THE VALUE
OF SUCH PROPERTY FORFEITED IN A FINAL AND EXECUTORY
ORDER OF THE COURT SHALL BE EARMARKED AS ADDITIONAL
FUNDING FOR THE OFFICE OF THE OMBUDSMAN; PROVIDED,
FURTHER, THAT IF THE PROPERTY IS NOT IN CASH, IT SHALL BE
SOLD AT PUBLIC AUCTION AND THE PROCEEDS THEREOF,
AFTER DEDUCTING THE ALLOCATED THIRTY-FIVE PERCENT (35%)
FOR THE OFFICE OF THE OMBUDSMAN, SHALL ACCRUE TO THE
GENERAL FUND.

SECTION 8. Section 7 of R.A. No. 1379 Is hereby amended to read as follows:

“SEC. 7. Appeal, - The parties may appeal from the judgment of
the [Court-of_First-tnstance-as}-PROPER COURT FORFEITING THE
PROPERTY/PROPERTIES IN BEHALF OF THE STATE IN THE
MANNER provided in the Rules of Court for appeals in civil cases.”

SECTION 9. Section 9 of R.A. No. 1379 is hereby amended to read as follows:

“SEC, 9. Immunity. - The [Solicitor-General] OMBUDSMAN may
grant immunity from criminal prosecution to any person who testifies to
the unlawful manner in which the respondent has acquired any of the
property in question in cases where such testimony is necessary to prove
Violations of this Act.”

SECTION 10, Section 12 of R.A. No. 1379s hereby amended to read as follows:
“SEC. 12. Penalties. — Any public officer or employee who shall,

after the effective date of this Act, transfer or convey any unlawfully
acquired property shall be [repressed] PENALIZED with imprisonment for


a term fnotexceedingfive- years] OF NOT LESS THAN ONE YEAR
AND ONE DAY BUT NOT MORE THAN SIX YEARS, or a fine not
exceeding [ten—thousand—pesos] TWICE THE AMOUNT OF THE
PROPERTY TRANSFERRED OR CONVEYED, or both such
imprisonment and fine, PERPETUAL DISQUALIFICATION FROM
PUBLIC OFFICE, AND CONFISCATION OR FORFEITURE IN FAVOR
OF THE GOVERNMENT OF ANY PROHIBITED INTEREST. [The-same
Fepression-shall-be imposed-upon-any-person-who-shall_knowingly-accept
‘such transfer-or conveyance,]

THE SAME PENALTIES SHALL BE IMPOSED UPON ANY
PERSON WHO SHALL KNOWINGLY ACCEPT SUCH UNLAWFUL,
TRANSFER OR CONVEYANCE. ANY SUCH CONVEYANCE SHALL
BE VOID AB INITIO.”

SECTION 11. Separability Clause, - If for any reason, any section or provision of this Act is
declared to be unconstitutional or invalid, the other sections or provisions hereof which are

not affected thereby shall continue to be in full force and effect.

SECTION 12. Repealing Clause. - All laws, decrees, orders or rules and regulations and
other issuances which are inconsistent with the provisions of this Act are hereby repealed,

amended or modified accordingly

SECTION 13. Effectivity. — This Act shall take effect fifteen (15) days after its publication in

two (2) national newspapers of general circulation.

Approved,