Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City, Metro Manila

SIXTEENTH CONGRESS
First Regular Session

House Bill Number 876

Introduced by Representatives GLORIA MACAPAGAL ARROYO and
DIOSDADO MACAPAGAL ARROYO

AN ACT
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 AND FOR OTHER PURPOSES

EXPLANATORY NOTE

Since its inception during the Commonwealth Period until such time it became a
mere division under the Department of Justice, the Office of the Government Corporate
Counsel (OGCC) has evolved into an entity which plays a vital role in the country's
justice system. It has grown over the years and oversees and provides legal services to
approximately 600 government-owned and controlled corporations, government
instrumentalities with corporate powers, government financial institutions and
government corporate entities, their subsidiaries and corporate offsprings (to be referred
hereinafter as "government corporations").

Executive Order No, 292, otherwise known as the Administrative Code of 1987,
expressly defines the mandate of the OGCC, in particular, (1) to act as the principal law
office of all government corporations and (2) exercise control and supervision over all
legal departments or divisions thereof maintained separately. Later executive
issuances further strengthened and enhanced OGCC's mandate and responsibilities over
the legal affairs of various government corporations. And given the crucial and important
role of these corporations in the country's economic growth and development, being the
primary vehicles in the implementation of vital government projects, the OGGC is in dire
need of augmentation to provide better services to its clientele corporations.

There has been a substantial increase in the volume, complexity and the importance


of the OGCC's mandate due to escalating demands of government activities and
transactions, Statistics show that the OGCC responds to and handles an increasing number
of requests for legal advice and cases per year, in addition to the performance of its
adjudicatory and other functions. The work in the OGCC is presently performed by its
current complement of only 57 lawyers which includes the Government Corporate Counsel
himself and augmented by administrative support personnel of 69 employees.

A timely increase in its personnel and a corresponding adjustment in their
compensation and benefits are imperative in maintaining the OGCC's effectiveness and to
help it adapt to the continuous changing conditions of the legal service. It is therefore clear
that there is an urgent need to re-define and strengthen its mandate by
streamlining, further professionalizing and rationalizing its functions and organization. It is
of the utmost importance when the public interest is protected as a result of a more
effective and efficient OGCC.

In view of the foregoing reasons, we urge our colleagues for the expeditious
approval of this measure.

GLOR|A MACAPAGAL ARROYO DIOSDADO MACAPAGAL ARROYO
Second District, Pampanga Second District, Camarines Sur


Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City, Metro Manila

SIXTEENTH CONGRESS
First Regular Session

House Bill Number 876

Introduced by Representatives GLORIA MACAPAGAL ARROYO and DIOSDADO
MACAPAGAL ARROYO

AN ACT
TO STRENGTHENTHE OFFICE OF THE GOVERNMENT CORPORATE COUNSEL
BY RE-DEFINING, EXPANDING, STRENGTHENING, RATIONALIZING AND
FURTHER PROFESSIONALIZING ITS ORGANIZATION, UPGRADING EMPLOYEE
BENEFITS AND APPROPRIATING FUNDS THEREFOR AND FOR OTHER
PURPOSES

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

SECTION 1, Declaration of Policy. - It shall be the policy of the State to
protect and promote the welfare, rights and interests of government-owned and
controlled corporations, their subsidiaries, other corporate offspring, _ including
government acquired asset corporations, government corporate entities and government
instrumentalities with corporate powers, government financial institutions, and other
government entities, agencies and offices hereafter referred to as "government
corporations"

Toward this end, the State shall require the improvement of legal services in the
government to efficiently and effectively address the expanding needs of these
government corporations in accordance with its initiative towards an improved fiscal
management and good corporate governance.


SECTION 2. Jurisdiction and Mandate. - Any law to the contrary
notwithstanding, the Office of the Government Corporate Counsel ("OGCC") shall be
the legal counsel and principal law office of all government corporations. All
government corporations shall refer to the OGCC the following:

a) All legal questions for opinion and advice;
b) Prior to their execution, all contracts for review; and

©) All cases for representation before regular courts, quasi-judicial bodies,
administrative agencies and arbitral tribunals, Provided, That the Government
Corporate Counsel ("GCC") may thereafter authorize the legal department of the
government corporation as collaborating counsel to handle cases, as the urgency
or expediency of circumstances may warrant,

In addition, the OGCC shall:

a) Conciliate, mediate, arbitrate or adjudicate all disputes or controversies
exclusively between government corporations;

b) Exercise control and supervision over the legal departments of all government
corporations;

c) Approve the engagement of services of private lawyers by the government
corporations; and

d) Enforce the Property Insurance Law pursuant to Republic Act No. 656, as

amended by Presidential Decree No. 245, in domestic or international
transactions.

The OGCC shall be an independent and autonomous office attached to the
Department of Justice. All opinions and issuances of the OGCC shall be binding on all
government corporations

SECTION 3. Expansion and Upgrading of Positions. - The GCC shall have a
cabinet rank and the same prerogatives, salary, allowances, benefits and privileges as
the Presiding Justice of the Court of Appeals. He/she shall be assisted by a Deputy
Government Corporate Counsel (‘DGCC") and twelve (12) Assistant Government


Corporate Counsels ("AGCC") who shall have the rank, salary, allowances, retirement
and benefits, and privileges of an Associate Justice of the Court of Appeals.

No person shall be appointed GCC, OGCC or AGCC unless he/she is a natural-

born citizen of the Philippines and, for at least ten (10) years has been engaged in the
practice of law in the Philippines.

The number, rank, qualifications for appointment, salary, allowances, retirement

and other benefits, and privileges of the other members of the legal staff shall be as
follows:

a) Twenty (20) Government Corporate Attorney IV (the "GCA IV") who shall have

b)

c)

d)

e)

the rank, salary, allowances, retirement and benefits, and privileges of a
Regional Trial Court Judge. No person shall be appointed GCA IV unless he/she
is a natural-born citizen of the Philippines and, for at least eight (8) years, has
been engaged in the practice of law in the Philippines;

Twenty (20) Government Corporate Attorney 111 (the "GCA Ill") who shall
have the rank, salary, allowances, retirement and benefits, and privileges of a
Metropolitan Trial Court Judge. No person shall be appointed GCA III unless
he/she is a natural-born citizen of the Philippines and, for at least five (5) years,
has been engaged in the practice of law in the Philippines;

Twenty (20) Government Corporate Attorney II (the "GCA II") who shall have the
rank, salary, allowances, retirement and benefits, and privileges of a Municipal
Trial Court Judge in Cities. No person shall be appointed GCA II unless he/she
is a natural-born citizen of the Philippines and, for at least four (4) years, has
been engaged in the practice of law in the Philippines;

Ten (10) Government Corporate Attorney | (the "GCA |") who shall have the rank,
salary, allowances, retirement and benefits and privileges of a Municipal Trial
Court Judge. No person shall be appointed GCA | unless he/she is a natural-
born citizen of the Philippines and, for at least three (3) years, has been engaged
in the practice of law in the Philippines;

Seven (7) Associate Government Corporate Attorney II who must be members of
the Philippine Bar and, for at least two (2) years, has been engaged in the
practice of law in the Philippines; and,


f) Five (5) Associate Government Corporate Attorney | who must be members of
the Philippine Bar and, for at least one (1) year, has been engaged in the
practice of law in the Philippines.

The GCC shall serve for a fixed term of six (6) years reckoned from the date of
his/her appointment. The fixed term of the GCC shall apply and commence to
appointments to the said position beginning July 1, 2013.

The GCC, DGCC and AGCC shall be appointed by the President of the
Philippines. The other members of the legal staff and administrative personnel shall be
appointed by the GCC. Appointments of the DGCC, AGCC and other members of the
legal staff shall be deemed permanent upon compliance with the qualification standards
heretofore stated.

The administrative structure of the OGCC shall be organized into the Finance
and Accounting Services, the Human Resource and Management Services, the Case
and Records Management Services, the Library Management and_ Information
Technology Services and the Property and Supply Services.

The legal and non-legal staff of the OGCC occupying the positions affected by
the changes embodied in this Act at the time of its approval shall thereafter occupy and
discharge the duties and functions of the upgraded positions and receive the
corresponding salary and benefits without necessity of new appointment.

SECTION 4. Compensation, - The basic monthly compensation of the legal staff
shall be as follows

Salary Grade

Position From To
Government Corporate Counsel 30 31
Deputy Government Corporate Counsel 29 30
Assistant Government Corporate Counsel 29 30
Government Corporate Attorney IV 28 29
Government Corporate Attorney III 27 28
Government Corporate Attorney II 26 27
Government Corporate Attorney | 25 26
Associate Government Corporate Attorney I 22 24

Associate Government Corporate Attorney II 18 23


The non-legal personnel shall have the same compensation as that of their
counterparts in the Office of the Solicitor General and Court of Appeals.

The salaries and privileges of the personnel of the OGCC granted under this Act
may further be increased to match any corresponding increase in salaries and privileges
subsequently granted to their respective counterparts in the judiciary

SECTION 5, Personnel Benefits and Privileges. - Provisions of other laws to the
contrary notwithstanding, the OGCC may provide its employees the following benefits:

|. Health care services through a health maintenance organization (HMO).
Expenses for the mandatory medical annual check-up of the GCC, the DGCC
and the AGCC shall be for the account of the office.

ll. Accident insurance for all employees to be procured by the office at its own
expense during travels while in the performance of official duties;

Ill, Without prejudice to the efficiency of the service, scholarships for deserving
employees on official time and at the expense of the office to upgrade their
knowledge and skills; Provided That, scholars under this provision shall be
selected on the basis of merit as determined by competitive examination;

IV. A provident fund which shall consist of, but not be limited to, contributions
made by the office and by its lawyers and employees to a common fund for
the payment of benefits to such lawyers or employees or their respective
beneficiaries/heirs.

SECTION 6. Seminar and other Professional Fees. - Subject to availability of
funds, fees for relevant seminars, as well as professional membership fees for lawyers,
registration fees and related miscellaneous expenses incurred in completing the
mandatory continuing legal education (MCLE) shall be borne by the office. Professional
membership, registration fees including those for mandatory continuing professional
education (CPE), and related miscellaneous expenses of other employees holding
positions for which a professional license is required by the office, shall also be borne
by the OGCC.

SECTION 7. Transportation Benefits. - Subject to the availability of funds,
employees shall be provided with contracted transportation services until such time as
the office can procure additional motor vehicles for this purpose:


SECTION 8. Other Benefits. - Provisions of other laws to the contrary
notwithstanding, the legal staff of the OGCC are allowed to receive allowances
and honoraria from its Client - government corporations. Employees of the
OGCC may likewise be extended such benefits and privileges as are given to the
employees of their clients.

When the exigency of the service so require, any member of the legal staff
may be designated by the GCC to act in concurrent capacity as corporate
officer of, or assigned to perform special or additional tasks in any of the client
government corporations of the OGCC and by virtue of such designation or
assignment, receive such additional compensation and privileges as may
be granted them by the government corporation concerned.

SECTION 9. Attorney's fees and Special Assessment. - The OGCC
is authorized to receive twenty percent (20%) of all the money claims collected
by or awarded/adjudged to client-government corporations in addition to the
attomey's fees awarded by a court, tribunal or panel, including
awards/judgments, stipulated under court-approved compromise agreements.
The OGCC is hereby utilized to use such awards and attorney's fees to meet
contingencies, obligations and undertakings, or for employee salaries,
allowances, other benefits and incentives, necessary or proper to promote
efficiency in the service as determined by the GCC subject to the rules and
regulations of the Commission on Audit and the Department of Budget and
Management may authorize.

The GCC is likewise authorized to make special assessments upon its
client government corporations to similarly meet such contingencies,
obligations and undertakings, or to provide for employee _ salaries,
allowances, other benefits and incentives, as may be warranted or proper as
determined by the GCC.

SECTION 10. Special Allowance, - The GCC, DGCC, AGCC and
other members of the legal staff may be granted special allowances in such
amounts to be determined by the GCC to implement the salary increases.
The grant of special allowances shall be implemented uniformly in such
amounts and up to extent only that can be supported by the funding source
specified in Section 11 hereof.

SECTION 11. Funding. - The funds required for the implementation of
this Act including employee benefits shall be taken from:


|. The Twenty percent (20%) share of the money claims collected or
awarded in judgments in favor of government corporations and all
Attorney's fee authorized to be received by the OGCC pursuant to this
Act and Executive Order No. 292 or the Revised Administrative Code
of 1987;

Il. Special assessments made by the GCC upon client government
corporations; and

lll Other revenues, savings, fees generated and collected and donations
received by the OGCC

SECTION 12. Franking Privilege. - All official matters and telegrams
of the OGCC addressed for delivery within the Philippines shall be received,
transmitted and delivered free of charge Provided, That such mail matters when
addressed to private persons or non-government offices shall not exceed one
hundred and twenty (120) grams.

SECTION 13. Appropriations. - The amount needed for employees’
salaries, mandatory allowances and benefits under other laws and office
expansion shall be appropriated in the budget of the OGCC under the annual
General Appropriations Act.

SECTION 14. Implementing Rules and Regulations. - Within sixty (60) days
from the approval of this Act, the GCC in consultation with the Secretary of the
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.

SECTION 15. Repealing Clause. - Provisions of Executive Order No. 292 or
the Revised Administrative Code of 1987, as amended, Executive Order No. 878
dated March 4, 1983, Presidential Decree No. 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 tile provisions of this Act.

SECTION 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.

SECTION 17. Effectivity - This Act shall take effect after fifteen (15) days


from its publication in a national newspaper of general circulation

Approved,