FIFTEENTH CONGRESS OF THE REPUBLIC) 
OF THE PHILIPPINES 
) 
First Regular Session 
) 
SENATE 
4'78 
Senate Bill No. _=-..:...:: 
INTRODUCED BY SEN. JINGGOY EJERCITO ESTRADA 
EXPLANATORY NOTE 
There has been a number of former officials of the government who took 
part in the negotiation for loans with our foreign and domestic creditors, who 
were later employed by these financial institutions. 
Considering the amount involved are billions of dollars and to avoid 
conflict of interest in the negotiations with our foreign creditors, it is imperative 
that the State shall regulate the right of our financial managers and negotiators to 
be employed with the domestic and international financial institutions that 
extended loan to our government. 
Our financial managers and debt negotiators have access to vital 
information, which these financial institutions could use against the economic and 
financial interest of the Philippine government. The prospect of being employed 
by these financial institutions after retirement or separation from the government 
might also influence our incumbent officials in their negotiation either for new 
loan or debt restructuring, with our foreign and domestic creditors, by 
accommodating the interest of the creditors to the prejudice of the government. 
This bill seeks to prohibit and penalize retired and incumbent officials of 
the Philippine government from employment with our international and domestic 
creditors. It also seeks to promote nationalist consciousness among our people 
and a higher sense of ethical standard among our economic and financial 
managers. It will partly implemerit the constitutional mandate to "develop a self-
reliant and independent national economy effectively controlled by Filipinos." (Art. 
II. Sec. 19). 
, 
In view hereof, the early. passage of this proposed measure is highly 
recommended. 
Senator 


FIFTEENTH CONGRESS OF THE REPUBLIC) 
OF THE PHILIPPINES 
) 
First Regular Session 
) 
SENATE 
Senate Bill No. 4'78 
)' 
INTRODUCED BY SEN. JINGGOY EJERCITO ESTRADA 
. AN ACT 
PROHIBITING RETIRED AND INCUMBENT OFFICIALS OF GOVERNMENT 
FROM 
ACCEPTING 
EMPLOYMENT 
WITH 
INTERNATIONAL 
AND 
DOMESTIC CREDITORS 
Be it enacted by the Senate and the House of Representatives of the Philippines 
in Congress assembled: 
SEC. 1. Declaration of Policy. - The 1987 Constitution mandates for a 
self-reliant and independent national economy effectively controlled by Filipinos. 
Towards this end, the State shall ensure that government officials who 
negotiated with the foreign and domestic creditors should not be allowed to be 
employed, within a prescribed period, with financial institutions over which they 
have negotiated in the past to avoid conflict of interest which is tantamount to 
economic treason. 
SEC. 2. Prohibition on the Employment of Retired Officials with 
International and Domestic Creditors. - Retired officials of the government 
who have participated or whose office has partiCipated directly or indirectly in the 
negotiation with international and domestic creditors are hereby prohibited to be 
employed with the foreign and domestic creditors of the Philippine government 
within two (2) years from their retirement or separation from the government. 
The prohibition on employment shall include consultancy, contract of 
services, management contract or similar agreements or schemes. 
SEC 3. Prohibition on the Employment of Incumbent Officials with 
International and Domestic Creditors. - Incumbent officials of the government 
who have participated or whose office has partiCipated directly or indirectly in the 
negotiation with international and domestic creditors are hereby prohibited to be 
employed with the foreign and domestic creditors of the Philippine government 
while in government service and within two (2) years from their resignation or 
separation therefrom. The prohibition on employment shall include conSUltancy, 
contract of services, management contract or similar agreements or schemes. 
SEC. 4. Penal Provision. - Any person violating any of the provisions of 
this Act shall be liable for imprisonment for a period of one (1) year to five (5) 
years at the discretion of the court and forfeiture of the instruments or fruits of the 
offense in favor of the State, including the salaries and all benefits received as a 
result of his employment with the foreign or domestic creditor. 


SEC. 5. Separability Clause. - If any provisions of this Act shall be 
declared unconstitutional, no other provisions shall be affected thereby. 
SEC. 6. Repealing Clause. - All laws, executive orders, rules and 
regulations or parts thereof which are inconsistent with this Act are hereby 
repealed or modified accordingly. 
SEC. 7. Effectivity. - This Act shall take effect fifteen (15) days from the 
date of its publication in the official gazette or in any newspaper of general 
circulation, whichever comes earlier. 
Approved,