SIXTEENTH CONGRESS OF THE 
REPUBLIC OF THE PHILIPPINES 
First Regular Session 
S. B. No.----1727 
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SEP 19 A8:32 
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INTRODUCED BY SENATOR SONNY ANGARA 
EXPLANATORY NOTE 
From its creation as a mere division under the Department of Justice 
during the Commonwealth . Period, the Office of the Government Corporate 
Counsel (OGCC) has grown over the years into a distinct and strategic office 
which oversees and addresses the legal concerns of approximately 600 
government-owned and -controlled corporations, government instrumentalities 
exercising corporate powers, government financial institutions and government 
corporate entities, their subsidiaries and corporate offsprings. 
Executive Order No. 292, otherwise known as the Administrative Code of 
1987, has defined the mandate of the OGCe, declaring that the OGCC shall act as 
the "principal law office" of all government corporations, and shall exercise 
control and supervision over all legal departments or divisions thereof 
maintained separately. Subsequent executive issuances further strengthened and 
enhanced the OGCe s mandate and responsibilities over the legal affairs of the 
various government corporations. 
In fact, the escalating demands of government corporate activities and 
transactions coupled with legal developments further underscore the importance 
of the OGCe s mandate. Records show that the OGCC responds to and handles a 
sizable number of requests for legal advice and cases per year, in addition to the 
performance of its adjudicatory and other functions. Based on DOJ data, there 
are only fifty-seven (57) lawyer positions in the OGCC, handling 3,225 cases in 
2010. 
The proposed measure therefore seeks to stre~gthen the OGCC by 
increasing the number of its personnel and, at the same time, adjusting their 
compensation and benefits correspondingly to ensure that their organization 
shall be able to adapt to the changing conditions of and increasing demand for 
legal service. Suffice it to say that government officials and employees entrusted 
with the legal concerns of government corporations need to be properly 
equipped with the necessary training and preparations and, at the same time, be 
adequately compensated to effectively fulfill their duties and obligations to the 
State and the Filipino people. 
In view of the foregoing reasons, the expeditious approval of this 
proposed bill is earnestly sought. 
OR SONNY ANGARA 


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'13 
SEP 19 A8 :32 
Republic of the Philippines 
SENATE OF THE PHILIPPINES 
Pasay City 
SIXTEENTH CONGRESS 
First Regular Session 
S.BNo.j727 
INTRODUCED BY SENATOR SONNY ANGARA 
AN ACT 
RJ.<XEIVEIl HY:-f--
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 Republic of the 
Philippines in Congress assembled: 
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SECTION 1. Declaration of Po !icy. - It shall be the State's policy to protect and 
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promote the welfare, rights and interests of government owned and controlled 
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corporations, their subsidiaries, other corporate offspring, including government 
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acquired asset cOl'porations, government corporate entities and government 
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instrumentalities with corporate powers, government financial institutions, and 
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other government corporate entities, agencies and offices, referred here as 
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GOCCs. 
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Toward this end, the State shall require the improvement of legal services 
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in the government to the efficiently and effectively address the expanding needs 
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of the GOCCs in accordance with its initiative towards an improvement fiscal 
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management and good corporate governance. 
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SEC. 2. Jurisdiction and Mandate. - (a) Any law to the contrary notwithstanding, 
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the office of the Government CorpOl'ate Counsel (OGCC) 


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shall be th~legal counsel and principal law office of all GOCCs. All GOCCs 
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shall refer to~ffie OGCC the following: 
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(1) AlllesaCqu~stions for opinion and advice; 
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(2) Before their execution" all contracts for review; and, 
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8 " (3) All cases for representation before regvlar courts, quasi-judicial bodies, 
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administrative agencies and arbitral tribunals, prOVided that, the Government 
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Corporate Counsel ("GCC") may thereafter authorize the GOCCs' legal 
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department as collaborating counsel to handle cases, as the urgency or 
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expediency of circumstances may warrant. 
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(b) 
In addition, the OGCC shall perform the following special 
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functions: 
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(1) conciliate, mediate, act as hearing officers or adjudicate all disputes or 
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controversies exclusively between GOCCs; 
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(2) Exercise control and supervision over the legal departments of all GOCCs; 
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(3) Approve the engagement of private la~ers by the GOCC~; 
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(4) Enforce the Property Insurance Law pursu(lnt to Republic Act 656, as 
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amended by Presidential Decree 245, in domestic or international 
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transactions; 
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(5) Be detailed or assigned to GOCCs upon their request: Provided, That the 
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GCC shall approve the assignment or designation, ~cluding attendance in 
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meetings requested by GOCCs; 
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(6) Investigate and,iin appropriate cases, hear administrative disciplinary 
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cases involving all lawyers, officials and employees of GOCCs upon the 
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latter's request and recommend appropriate administrative or diSciplinary 
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sanctions; 
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(7) Conduct periodic performance audit of the in-house lawyers or legal 
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departments of the GOCCs and to recommend appropriate actions to GOCCs; 
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(8) Require the in-house lawyers or legal departments of GOCCs to submit 
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periodic reports of work performed and/or accomplished and to supervise 
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and control the necessary legal action; 
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(9) Conduct research and/ or submit position papers on novel/important 
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questions or issues affectfug GOCCs; 
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(10) 
Conduct fact-finding and preliminary investigation in appropriately 
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referred cas'e's; • 
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(11) Act as corporate officers of GOCCs upon their req~est; 
6 . (12) Be assigned as members of technical working groups, bids and awards 
, committee, tasks force and other committees in relation to yOCC projects; 
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(13) 
Reptesent the OGCC in the Board of GOCCs and management 
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committees; and such other additional works as may be required by GOCCs; 
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and 
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The OGCC shall be an independent and autonomous office attached to 
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the Department of Justice for purposes of policy and program coordination. 
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All opinions and iSsuances of the OGCC shall be binding on all GOCCs. 
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SEC. 3. Expansion, upgrading and creation of positions. - The GCC 
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shall have a cabinet rank and the same prerogatives, salary, allowances, 
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benefits and privileges as the Presiding Justice of the Court of Appeals. Hel 
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She shall be assisted by a Deputy Government Corporate Counsel (DGCq 
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and twelve (12) Assistant Governineilt Corporate' Counsel (AGCq who shall 
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have the rank, salary, allowances, retirement benefits and privileges of an 
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Associate Justice of the Court of Appeals. 
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No person shall be appointed GCC, DGCC or AGCC unless hel she is a 
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natural-born citizen of the Pilippines and, for at least fifteen (15) years, has 
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been engaged in the practice of law in the Philippines. The number, rank, 
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qualifications for appointment, salary, allowances, retirement and other 
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benefits and privileges of other members of the legal staff shall be as follows: 
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(a) Twenty (20) Government Corporate Attorney IV (GCA IV) who shall have 
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the rank, salary, allowances, retirement benefits and privileges of a Regional 
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Trial Court Judge. No person shall,b&ppointed GCA IV unless helshe is a 
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natural-born citizen of the Philippines and, for at least ten (10) years, has been 
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engaged in the practice of law in the Philippines; 
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(b) Twenty (20) Government Corporate Attorney III (GCA III) who shall have 
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the rank, salary, allowances, retirement benefits and privileges of a 
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Metropolitan Trial Court Judge. No person shall be appointed GCA III unless 
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hel she is a natural-born citizen of the Philippines and, for at least five (5) 
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years, has been engaged in the practice of law in the Philippines; 
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(c) Twenty (20) Government Corporate Attorney II (GCA II) who shall have 
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the rank, salary, allowances, retirement benefits and privileges of a Municipal 
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Trial Court Judge in Cities. No person shall be appointed GCA II unless 
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hel she is a !;latural-born citizen of the Philippines and, for at least five (5) 
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years, has been <;!ngaged in the practice of law in the Philippines; 
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(d) TWelve (12) Government Corporate Attorney I (GCA I). No person shall 
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be appointed GCA I unless helshe is a natural-born citizen of the Philippines 
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:and, for at least two (2) years, has been engaged in the practice of law in the 
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Philippines; 
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(e) Twelve' (12) Legal Research Associate who must be law graduates; 
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The Gee, DGCC and AGCC shall be appointed by the President of the 
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Philippines. The other members of the legal staff and administrative 
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personnel shall be appointed by the GCe. Appointments of the DGCC, 
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AGCC and other members of the legal staff shall be deemed permanent upon 
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compliance with the prescribed qualification standards. 
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The adminis~iltive structure of the OGCC shall be organized into the 
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Finance and Accou,Uting Services, the Human Resources and Management 
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Services, the Case and Records Management Services, the Library 
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Management and InformatiQn Technology Services and the Property and 
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Supply Services. 
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The legal an~ non-legal staff of the OGCC occupying the positions 
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affected by the changes embodied in this Act at the time of its approval shall 
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thereafter occupy and discharge the duties and functions of the upgraded 
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positions and receive the corresponding salary and benefits without necessity 
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of new appointment. 
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SEC.'·4. Compensation. 
- The basic monthly compensation of the 
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OGCC officials and employees shall be as follows: 
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Position 
Salary Grade 
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From 
To 
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Government Corporate Counsel 
30 
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35 
Deputy Government Corporate Counsel 
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30 
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Assistant Government Corporate Counsel 
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30 
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Government Corporate Attorney IV 
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29 
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Government Corporate Attorney III 
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28 
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Government Corporate Attorney II 
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Government Corporate Attorney I 
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Legal Research Associate 
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24 
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Except for the Legal Research Associate positions created under the 
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foregoing Section, all the other non-legal personnel shall have the same 
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compensation as that of their counterparts in the Office of the Solicitor 
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General and Court of Appeals. 
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The s~laries and privileges of the personnel of the aGCC granted 
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under this Act D;lay further be increased to match any corresponding increase 
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in salaries and privileges subsequently granted to their respective 
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counterparts in the Judiciary. 
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SEC. 5. Personnel benefits and privileges. - Provisions of other laws to 
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the contrary notwithstanding, the aGCC may provide, its officials and 
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employees the following benefits: 
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1. Health care services through a health maintenance organization. 
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Experu,es for the mandatory medical annual check-up of the GCC, the 
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DGCC and the AGCC shall be for the account of the aGCC; 
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2. Accident ins~rance for all officials and employees to be procured by 
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the aGCC at'its own expense during travels while in the performance 
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of the official'dutiesi 
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3. Without prejudice to the efficiency of the service, scholarships for the 
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deserving employees on official time and at the expense of the aGCC 
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to upgrade their knowledge and skills: Provided, That scholars under 
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this provision shall be selected on the basis of merit as determined by 
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competitive examinationi and 
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4. A provident fund which shall consist of, but not be limited to 
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contributions made by the aGCC and by its lawyers and employees to 
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a common fund for the payment of benefits to such lawyers or 
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employees or their respective beneficiaries/heirs. 
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SEe. 6. 'Seminar and other Professional Fees. - Subject to availability of 
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funds, fees for relevant seminars, as well, as professional membership fees for 
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lawyers, registration fees and related miscellaneous expenses incurred in 
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completing the mandatory continuing legal education shall be borne by the 
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aGce. 
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Professional membership, registration fees including those for 
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mandatory continuing professional education, and related miscellaneous 
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expenses of other employees holding positions for' which a professional 
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license is required by the office, shall also be borne by the aGce. 
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SEe. 7. Transportation Benefits. - Subject to availability of funds, 
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employees shall be provided with contracted transportation services until 
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such time that the aGCC can procure additional motor vehicles for this 
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purpose. 
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SEC. 8. 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 the GOCCs. Employees of the OGCC may 
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likewise be extended such benefits and privileges as are given to the 
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employees of their clients. 
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When the exigency of the service so requires, any m.ember of the legal 
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staff. may be designated by the GCC to act in concurrent capacity as corporate 
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officer of, 6r assigned to perform special or additional tasks in, any of the 
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GOCCs and by virtue of such designation or assignment, receive such 
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additional compensation and privileges as may be granted them by the 
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concerned GOCe. 
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SEC. 
9. Attorney's Fees and special Assessment. - The OGCC is 
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authorized to receive twenty percent (20%) of all the money claims collected 
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by, or awarded/ adjudged to GOCCs, in addition to the attorney's fees 
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awarded by a court, tribunal or panel, including awards/judgments, 
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stipulated under court-approved compromise agreements. 
The OGCC is 
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hereby authorized to use such awards and attorney's fees to meet 
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contingencies, obligations and undertakings, or for employee salaries, 
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allowances, other benefits and incentives, necessary or proper to promote 
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efficiency in the service as determined by the GCe. 
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The GCC is likewise authorized to. make special assessments upon 
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GOCCs to similarly meet such contingencies, obligations and undertakings, 
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or to provide for employee salaries, allowances, other benefits and incentives, 
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as may be warranted or proper as determined by the GCe. 
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Attotney's fees and special assessments shall be deposited in an 
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authorized government depository as a trust liability and shall be made 
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available for expenditure without the need for a cash disbursement ceiling, 
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for purposes of upgrading facilities 'and equipment;' granting of employees' 
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incentive pay and other benefits, and defraying such other incentive expenses 
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not provided for in the General Appropriations Act as may be determined by 
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the GCe. In both cases, the usual accounting and auditing procedures shall 
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apply. 
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SEC. 10. Special Allowance. - The GCC, DGCC, AGCC and other 
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members of the legal staff may be granted special allowances in such amounts 
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to be determined by the GCC to implement the salary increase. The grant of 
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special allowances shall be implemented uniformly in such amounts and up 
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to the extent only that can be supported by the funding source specified in 
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Section 11 hereof: Provided, That such said special allowances shall not exceed 
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One Hundred Percent (100%) of their basic salary as provided under the 
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Salary Standardization Law (Republic Act 6758). 
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SEC,;U. Funding. - The funds required for the implementation of this 
Act including additional employee benefits under Section 5 shall be taken 
from: 
1. The twenty percent (20%) share of the money claims collected or 
awarded in judgments in favor of GOCCs and all attorney's fees 
authoriZed to be received by the OGCC pursuant to this Act and 
Executive Order 292 or the Revised Administrative Code of 1987; 
, 
2. Speci\;ll Assessments made by the GCC upon GOCCs; and 
3. Other revenues, savings, fees"generated and collected and donations 
received by the OGCe. 
SEC 12. Frl}nking Privilege. - The OGCC may transmit through 
ordinary mail and/ hr registered mail with return card, free of charge, all 
official communicati~:ms and papers directly connected with the conduct of its 
duties, functions and/or its exercise of administrative supervision over its 
personnel. 
The envelope or wrapper of the privileged mail matter shall bear on 
the left upper corner "Office of Government Corporate Counsef' together 
with its address and on the right upper corner, the word "Private or 
unauthorized use to avoid payment of postage is penalized by fine or 
imprisonment or both." 
SEC 13. Apprppriations. - The amount needed for employees' salaries, 
mandatory allowances and benefits under other laws and office expenses and 
capital outlay shall pe 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 
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 292 or the 
Revised administrative Code of 1987, as amended, Executive Order 878 dated 
March 4, 1983, Presidential Decree 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. 
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SEC. 17. Effectivity. - This Act shall take effect after fifteen (15) days 
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from its publication in a national newspaper of general circulation. 
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