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Republic of the Philippines
HOUSE OF REPRESENTATIVES.
Quezon City

SEVENTEENTH CONGR)
First Regular Session

o, 3889

8

HOUSE BILL

Introduced by REP, EVE

DERO.

EXPLANATORY NOTE

In the aftermath of the extremely destructive super typhoon Yolanda (international codename
Haiyan) that struck our country last November 8, 2013, an outpouring of support in the form of cash and in-
kind donations were directed to the Philippines by both local and foreign donors. In response to media
reports alleging instances of corruption with respect to the utilization and accounting of the donated funds.
nator Miriam Defensor-Santiago introduced Proposed Senate Resolution No. 363 entitled:

RESOLUTION DIRECTING THE PROPER SENATE COMMITTEE ON
FINANCE TO CONDUCT AN INQUIRY IN AID OF LEGISLATION, ON THE
NEED FOR TRANSPARENCY AND ACCOUNTABILTY WITH REGARD TO
INCOMING FOREIGN AND LOCAL AID FOR THE VICTIMS OF SUPER
TYPHOON YOLANDA

which was referred to the Committee on Finance.

On February 26 and March 17, 2014, the committee conducted a hearing on the bills referred to the
committee, including P.S.R. No, 363. In accordance with the Chairman's instructions, a Technical Working
Group meeting was conducted by the committee last May 13, 2014, to which resource persons from the
Department of Foreign Affairs, Department of Budget and Management, Department of Finance, and
Commission on Audit were invited.

From the above-mentioned hearings and TW G meeting, one of the findings was the fact that there
was no single ageney in the government that has possession and knowledge of the total amount of local and
foreign donations for the victims of Super Typhoon Yolanda, The Foreign Aid Transparency Hub or FAITH
aan online information portal created by the national government, captures only the foreign aid pledged and
received by the country for the vietims of Yolanda, It does not include the foreign or local donations that
were deposited directly to the accounts of various departments or agencies, or the foreign or local donations
received directly by the affected local government units,

The above findings indicate the need to institutionalize, preferably through legislation, a mechanism
for the monitoring and accounting of all foreign and local donations for natural and man-made calamities, In
addition, the public clamour for transparency and accountability in the utilization of the monetary and non=
monetary aid received from foreign and local benefactors calls for proactive action from the Commission on
Audit.

In view of the foregoing, the approval of the bill is earnestly sought.

_ Mates

EVELINA G. ESCUDERO


Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City

SEVENTEENTH CONGRESS
First Regular Session

nouse pi xo,_ 8889

Introduced by REP. EVELINA G, ESCUDERO

AN AC’
MANDATING THE FULL ACCOUNTING OF ALL DISASTER-RELIEF AID OR
DONATIONS RECEIVED BY THE PHILIPPINE GOVERNMENT FOR NATURAL AND
MUMAN-INDUCED CALAMITIES:

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

SEC

ON 1. Title. - This Act shall be known as the "Donation Transparency Act”.

SEC. 2. Declaration of Policy. - It is hereby declared the policy of the State to promote
transparency and .accountability in the receipt and utilization of foreign and local donations for
natural and human-induced calamities that cause havoc and destruction in the county.

SEC. 3. Coverage. This act shall cover all foreign and local donations directed to the
national government, government owned and controlled corporations (GOCCs) and local
government units (LGUs) from all sources, such as foreign governments, bilateral or multilateral
organizations and institutions, and private individuals or groups.

SE

Definition of Terms. For purposes of this Act, the following shall refer to:

(a) "Calamity" - a natural or human-induced disaster causing widespread human, material,
economic or environmental losses to a community or society

(b) "Donations" cash or non-cash aid or grants received by the government for disaster
recovery, or rehabilitation.

relief.

(c) "Donor" = refers to foreign governments, bilateral or multilateral organizations and
institutions, private individuals or groups who donate cash or non-cash aid or grants to the
Philippine government for disaster relief, aid, or rehabilitation.

(d) "Donee" - refers to departments, bureaus, and offices of the national government
including Constitutional Offices, State Universities and Colleges, Government Owned and
Controlled Corporations (GOCCs) and Local Government Units (LGUs) that receive donations
from various sources.

(e) "Donations in Cash" - refer to cash assistance from donor entity/individual to the
Philippine government through any of its agencies or instrumentalities.


(£) "Donations in Kind - refer to assistance in kind such as but not limited to food, clothing,
medicine, and equipment coming from the donor entity/individual to a specific national
government agency or local government unit for the purpose of disaster relief, recovery and
rehabilitation efforts.

SEC. 5, Donations, Departments, bureaus and Offices of the National Government,
including Constitutional Offices enjoying fiscal autonomy, and State Universities and Colleges may
accept donations in cash or in kind from various sources, domestic or foreign, for purposes relevant
to their respective functions, and which shall be used to cover aid, relief and rehabilitation, repair
and reconstruction of permanent struetures affected by natural and man- made calamities. Such
donations, whether in cash or in kind shall be deemed automatically appropriated

SEC, 6. Utilization and Treatment of Donations, Donations shall be utilized in
accordance with the purpose identified by the Donor. Donations for a specific purpose. as identified
by the donor, shall be treated as trust receipts, PROVIDED that in case the donor does not identity
a specific project or activity to be funded, such donation shall be considered as calamity aid for the
use of the Department of Social Welfare and Development: PROVIDED further, that donations
intended for program support for calamities in general shall be booked as income of the National
Government or Local Government Unit, as the case may be.

SEC. 7. Cash Donations. All cash donations shall be deposited under the account of the
Bureau of Treasury (BTr), except when the donation is made directly to the agencies, in which case
the donee-agency shall inform the BTr of the cash donation upon receipt thereof: PROVIDED, that
if the donation is made directly to an LGU, the Bureau of Local Government Finance (BLGF) shall
be informed upon its receipt of the cash donation for purposes of consolidating the quarterly reports
to be submitted to the Office of Civil Defense (OCD), the secretariat of the National Disaster Risk
Reduction and Management Council (NDRRMC). An official receipt shall be issued by the
concemed donee-agency or LGU for cash donations received.

Donations in Foreign Currency shall be converted to the Philippine Peso at the prevailing
rate at the time of the receipt of the donation. Donations shall be taken up in the books of the BTr
as income or trust receipts

The amounts received by the donee-agency shall thereafter be deposited to the account of
the Treasurer of the Philippines, and shall be made available to the implementing agency concerned
through a Special Budget pursuant to Section 35, Chapter 5, Book VI of E.O, No, 292; PROVIDED
that, if the donee-agency is an LGU, the same shall be deposited to the account of the Local
Treasury as a separate special account maintained in every provincial, city or municipal treasury
and recorded as a Trust Fund under the Special Funds pursuant to Section 309 (b) Article L, Chapter
Il, Title V. Book II of the Local Government Code.

In no case shall the cash donation be used for payment of Personal Services of any 48
government unit or any other expenses not related to disaster relief, recovery and rehabilitation 49
efforts,

SEC, 8, Donations in Kind, For donations in kind, an acknowledgement receipt shall be
issued to the donor by the donee-agency, The value of donated Property, Plant and Equipment
(PPE) shall be based on the declared value in the Deed of Donation or the bill of lading/airway
bill/parcel notice and other related documents. The fair market value/appraised value shall be used
in the absence of declared value. The donee-agency shall submit either in printed form or by way of
electronic document to the OCD, quarterly reports on the receipt of donations in kind: PROVIDED
that, the LGU shall submit to OCD thru BLGE all donations in kind that they have received



PROVIDED, further that, the Bureau of Customs (BOC), which process all foreign donation
pursuant to Section 18 of R.A, 10121, otherwise known as the "Philippine Disaster Risk Reduction
and Management Act," shall submit a report on the conditionally-free importation under this
section to the OCD.

The head of the donee-agency or LGU shall be primarily responsible for the accounting and
safeguarding of all donated supplies, materials, equipment and relief goods against loss and
wastage,

SEC. 9. Foreign Donations. Foreign donations, whether in cash or in kind, from foreign
governments shall be subject to the prior clearance and approval of the President upon the
recommendation of the Department of Foreign Affairs (DFA). The DFA shall also submit to OCD
a report on foreign donations that it has processed

SEC. 10. Consolidated Reports. The head of the donee-agency and the agency's web
administrator or his/her equivalent shall be responsible for ensuring that the quarterly report of all
donations received, whether in cash or in kind are posted on the agency's official website.

The BTr shall submit to OCD a quarterly report on all amount deposited under the speci
account it maintains for all donations received, including the amount retained by the donee- agency
under Section 7 of this Act

The Department of Foreign Affairs (DOF) shall likewise submit a report on all pledges
made by foreign governments, bilateral or multilateral organizations and institutions, private
foreign individuals or groups to the Philippine government for disaster relief, aid, or rehabilitation
to OCD.

The OCD shall submit, either in printed form or by way of electronic document, to the
Department of Budget and Management (DBM), the House Committee on Appropriations and the
Senate Committee on Finance, a consolidated quarterly report of all submissions made to OCD
under this Act, The Executive Director of the OCD and the NDRRMC's web administrator or
his/her equivalent shall be responsible for ensuring that said quarterly reports are likewise posted
on the official website of NDRRMC

SEC. 11. Implementation, Rules, and Regulations, The DBM, OCD, Department of
Finance, Department of the Interior and Local Government, and the Commission on Audit shall
promulgate the Implementing Rules and Regulations to implement this Act within thirty (30) days
from its approval.

The Implementing Rules and Regulations shall take effect five (5) days after publication in
a newspaper of general circulation.

EC. 12, Effectivit Act shall take effect 15 days after its complete publication in the
Official Gazette or in at least two (2) newspapers of national circulation,

Approved,