EIGHTEENTH CONGRESS OF THE } 
REPUBLIC OF THE PHILIPPINES 
} 
F irst R egular Session 
}
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*19 SEP 10 f 5 ’42
S E N  A.T 
S.B. No
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R C C E IV tD S T ..
ii
INTRODUCED BY SENATOR VICENTE C. SOTTO III
AN ACT
STRENGTHENING THE OFFICE OF THE GOVERNMENT CORPORATE 
COUNSEL BY RATIONALIZING AND FURTHER PROFESSIONALIZING ITS 
ORGANIZATION, UPGRADING POSITIONS AND APPROPRIATING FUNDS
THEREFOR
EXPLANATORY NOTE
The Office of the Government Corporate Counsel (OGCC) acts as the 
statutory 
counsel 
of about 
714 
government-owned 
or 
controlled 
corporations, government instrumentalities exercising corporate powers, 
govei'nment financial institutions and government corporate entities, their 
subsidiaries and corporate offsprings as well as economic zones, state 
universities and water districts (which shall all hereinafter be referred 
collectively as “GOCCs” for brevity) all over the county. Its responsibilities 
cover all the legal affairs of all the GOCCs and it handles special tasks for 
them including the exercise of control and supervision over all their legal 
departments. Its mandate has been further reinforced in subsequent 
executive issuances to effectively provide legal counsel to the GOCCs in their 
operations.
The strengthening of the OGCC is long overdue. 
The existing 
organizational structure and personnel complement of OGCC was 
formulated way back in 1978 and has not been amended and improved 
since then despite the increasing work performed by the OGCC in 
discharging its mandate. To ensure that OGCC shall be able to adapt to the


changing conditions, the increase in the number of its personnel and 
corresponding adjustment in their compensation and benefits is inevitable.
For decades, the legal guidance and assistance provided by the OGCC 
by way of legal representations, legal opinions, drafting and review of 
contracts, performance of special tasks the exercise of control and 
supervision over its legal departments, enabled the GOCCs to more 
efficiently perform their respective mandates within the bounds of the law.
With OGCC as statutory counsel, GOCCs do not need to engage 
private lawyers to address their legal requirements. The GOCCs are able to 
generate savings and utilize its much-needed funds for its core purposes, 
which would othei-wise be allocated for legal fees of private lawyers if OGCC 
has not existed.
With the growth in the number of GOCCs coupled with the 
complexities of their requirements brought by the modern business 
situations and conditions, the increase in the request for the legal services 
of OGCC, not only in terms of volume, but also the nature of the seiwices 
required, call for specialization and expertise in specific fields of law.
The Officials and employees of OGCC who are entrusted with the legal 
concerns of the GOCCs need to be properly equipped and be adequately 
compensated to effectively fulfill their duties and responsibilities.
In line with the principle of National Government’s thrust to 
standardize and rationalize the current compensation framework in the 
bureaucracy, the positions, salaries and benefits of the lawyers and 
administrative staff of the OGCC should be at par with the salary grades, 
positions, salaries and benefits of its counterparts in the Department of 
Justice performing similar functions and providing similar legal seiwices. It 
is for this reason that the OGCC needs a new Charter upgrading the


positions, salaries and benefits of its employees and increasing the number 
of its legal personnel and administrative staff.
In view of the foregoing reasons, the expeditious approval of this 
proposed bill is earnestly sought.
VICENTE C. SOTTO III


EIGHTEENTH CONGRESS OF THE } 
REPUBLIC OF THE PHILIPPINES 
} 
F i r s t  R e g u l a r  S e s s io n  
}
S E N A T E  
S.B. No. 1 0 2 9
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•If 
SEP 10 P 5:42
R!CEIVr»BV.
INTRODUCED BY SENATOR VICENTE C. SOTTO III
AN ACT
STRENGTHENING THE OFFICE OF THE GOVERNMENT CORPORATE 
COUNSEL BY RATIONALIZING AND FURTHER PROFESSIONALIZING ITS 
ORGANIZATION, UPGRADING POSITIONS AND APPROPRIATING FUNDS
THEREFOR
Be it enacted by the Setiaie and the House of Represenlalives of the 
Philippines in Congress assembled:
1 
SECTION 1. Short Title - This Act shall be known as the “OGCC
2 
Charter.”
3 
SEC 2. D eclaration of Policy - It shall be the policy of the State to
4 
protect and promote the welfare, rights and interests of government-owned
5 
or controlled corporations (GOCCs), government financial institutions (GFls),
6 
government instrumentalities with corporate powers (GCIPs), government
7 
corporate entities (GCEs) as defined in Republic Act 10149 as well as their
8 
subsidiaries and corporate offsprings including economic zones, state
9 
universities and water districts, all collectively referred to in this Act as
10 
government corporations (GOCCs).
11 
Toward this end, the State shall require the improvement of legal
12 
services to efficiently address the expanding needs of these government
13 
corporations in accordance with its initiative towards an improved fiscal
14 
management and good corporate governance. It shall be the mandate of the
15 
OGCC to safeguard the legal interest of the government corporations.
16 
SEC 3. Power, ^Jurisdiction an d  M andate - Any law to the contrary
17 
notwithstanding, the Office of the Government Corporate Counsel (“OGCC”)
18 
shall be the statutory counsel and principal law office of all government


1 
corporations. 
All government corporations shall refer to the OGCC the
2 
following:
3 
a. All important legal questions for opinion and advice;
4 
b. All contracts for review, provided that the GCC may from time to
5 
time determine which contract shall no longer be submitted to
6 
OGCC; and
7 
c. All cases for representation before regular courts, quasi-judicial
8 
bodies, administrative agencies and arbitral tribunals, provided
9 
that, the Government Corporate Counsel (GCC) may thereafter
10 
authorize the government corporation’s legal department or
11 
retained counsel as collaborating counsel to handle cases, as the
12 
urgency or expediency of circumstances may warrant.
13 
The OGCC shall:
14 
a. Exercise control and supeiwision over the legal departments of all
15 
government corporations and conduct periodic performance audit
16 
of the in-house lawyers or legal departments of government
17 
corporations and to recommend appropriate actions to them;
18 
b. Conciliate, mediate, act as hearing officers or adjudicate all
19 
disputes 
on 
controversies 
exclusively 
between 
government
20 
corporations;
21 
c. Investigate and, 
in appropriate cases, 
hear administrative
22 
disciplinaiy cases involving all lawyers, officials and employees of
23 
government corporations upon the latter’s request and recommend
24 
appropriate administrative or disciplinaiy sanctions;
25 
d. Conduct fact-finding and preliminary investigation in appropriately
26 
referred cases;
27 
e. Act as Corporate Secretary or any other officer of government
28 
corporations upon their request;
29 
f. Be assigned as members of technical working groups, bids and
30 
awards committee, task force and other committees in relation to
31 
government corporations’ projects;
32 
g. Be detailed or assigned to government corporations upon their
33 
request provided, that the GCC approves the assignment or


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designation, 
including attendance in meetings requested by
2 
government corporations;
3 
h. Represent the OGCC in the Governing Board and management
4 
committees of government corporations;
5 
i. Approve the engagement of private lawyers by the government
6 
corporations; and
7 
j. Perform such other functions necessary in the interest of the
8 
seiwice.
9 
SEC 4. Expansion and Upgrading of Positions -
10 
A. The Government Corporate Counsel (“GCC”) shall have the rank,
11 
salary, allowances, 
retirement 
and 
pension benefits, 
emoluments,
12 
prerogatives and privileges as the Presiding Justice of the Court of Appeals.
13 
He/she shall be assisted by a Deputy Government Corporate Counsel
14 
(“DGCC”) and twelve (12) Assistant Government Corporate Counsels
15 
(“AGCC”) who shall have the rank, salary, allowances, retirement and
16 
pension benefits, emoluments, prerogatives and privileges of an Associate
17 
Justice of the Court of Appeals.
18 
No person shall be appointed GCC, DGCC or AGCC unless he/she is a
19 
natural-born citizen of the Philippines and, for at least fifteen (15) years, has
20 
been engaged in the practice of law in the Philippines.
21 
B. The number, rank, salary, allowances, retirement and pension
22 
benefits, emoluments, prerogatives and privileges of the other members of
23 
the legal staff shall be as follows;
24 
1. The present ten (10) Government Corporate Attorney IV (“GCA
25 
IV”) shall be increased to sixteen (16) and they shall have the
26 
rank, salary, allowances, retirement 
and pension benefits,
27 
emoluments, prerogatives and privileges of a Regional Trial
28 
Court Judge. No person shall be appointed as GCA IV unless
29 
he/she is a natural-born citizen in the Philippines and, for at
30 
least ten (10) years, has been engaged in the practice of law in
31 
the Philippines;
32


1 
2. The present fourteen (14) Government Corporate Attorney III
2 
(“GCA III”) shall be increased to nineteen (19) and they shall
3 
have the rank, salaiy, allowances, retirement and pension
4 
benefits, 
emoluments, 
prerogatives 
and 
privileges 
of a
5 
Metropolitan Trial Court Judge. No person shall be appointed
6 
GCA III unless he/she is a natural-born citizen of the
7 
Philippines and, for at least five (5) years, has been engaged in
8 
the practice of law in the Philippines.
9 
3. The present seventeen (17) Government Corporate Attorney II
10 
(“GCA 11”) shall be increased to twenty (20) who shall be natural-
11 
born citizens of the Philippines and have been engaged in the
12 
practice of law in the Philippines for at least three (3) years;
13 
4. The present four (4) Government Corporate Attorney I (“GCA I”)
14 
shall be increased to twelve (12) who shall be natural-born
15 
citizens of the Philippines and have been engaged in the practice
16 
of law in the Philippines for at least one (1) year.
17 
The GCC, DGCC and AGCCs shall be appointed by the President of
18 
the Philippines. The other members of the legal and administrative
19 
personnel shall be appointed by the GCC. 
Except for the GCC, the
20 
appointments of the DGCC and AGCCs shall be permanent upon
21 
compliance with the prescribed qualification standards under this law.
22 
The GCC may appoint in coterminous capacity two (2) lawyers with
23 
the same rank, salaiy, allowances and other benefits of an AGCC and two
24 
(2) lawyers with the same rank, salary, allowances and other benefits of a
25 
GCA IV, who shall form part of his confidential staff.
26 
SEC 5. O rganizational Structure - The OGCC shall be headed by
27 
the GCC, who is the principal law officer and legal defender of all the
28 
government corporations. He shall have the authority and responsibility for
29 
the exercise of the OGCC’s mandate and for the discharge of its duties and
30 
functions, and shall have supeiwision and control over the OGCC and its
31 
constituent units. The GCC shall promulgate necessary rules 8& regulations
32 
for the implementation of the provisions of this law.
33


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The GCC shall be assisted by the DGCC, AGCCs and such number of 
GCAs as may be necessary to operate the OGCC.
Unless othei-wise determined by the GCC, the legal staff shall be 
divided into teams, each to be headed by an AGCC.
The administrative structure of the OGCC shall be composed of the 
Secretarial and Legal Support Sei-vices, Finance and Accounting Services, 
Human 
Resource 
and 
Management 
Sewices, 
Case 
and 
Records 
Management Sei-vices, Library Management and Information Technology 
Services, Corporate Planning Sei-vices and Property and Supply Services.
The legal and non-legal personnel 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, benefits and 
privileges without necessity of new appointments.
SEC 6. Compensation - The salaiy grades for the basic monthly 
compensation of the OGCC legal personnel shall be as follows:
P o sitio n  
Salary G rade
Government Corporate Counsel 
31
Deputy Government Corporate Counsel 
30
Assistant Government Corporate Counsel 
30
Government Corporate Attorney IV 
29
Government Corporate Attorney III 
28
Government Corporate Attorney 11 
27
Government Corporate Attorney 1 
26
The 150 non-legal personnel shall be composed of the following: two 
(2) Chief Administrative Officers; one (1) Budget Officer V; one (1) Executive 
Assistant (EA) V; two (2) EA IV; one (1) EA III; one (1) Accountant IV; four (4) 
Supervising Administrative Officers; one (1) Planning Officer IV; eleven (11) 
Administrative Officers (AO) V; one (1) Librarian IV; one (1) Information 
Technology Officer; one (1) Computer Main Technician; one (1) Librarian III; 
four (4) AOs III; three (3) AOs II; twelve (12) Senior Administrative Assistant 
III; one (1) Planning Analyst II; twenty (20) Administrative Assistant (ADAS) 
VI; one (1) Computer Operator III; twelve (12) ADAS V; twelve (12) ADAS III;


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one (1) Bookkeeper III; three (3) Records Officer I; fourteen (14) ADAS II; five 
(5) ADAS I; one (1) Chauffeur IV; one (1) Security Guard III; ten (10) ADA VI; 
one (1) Driver IV; one (1) Buyer II; fourteen (14) ADA IV; and six (6) ADA III.
The non-legal personnel shall have the same salaries and benefits as 
that of their counterparts in the Office of the Solicitor General.
The salaries, benefits and privileges of the personnel of the OGCC 
granted under this Act shall automatically be increased to keep in step with 
any corresponding increase in salaries and privileges subsequently granted 
to their respective counterparts in the judiciaiy, the Office of the Solicitor 
General and the Court of Appeals.
SEC 7. Personnel Benefits and Primleges ~ Provisions of other laws 
to the contrary notwithstanding, and subject to availability of funds, the 
OGCC may provide its employees the following benefits:
I. 
Health care seiwices through a health maintenance organization 
(HMO).
Accident insurance for all employees for approved travels while 
in the performance of official duties;
Provided the efficiency of the seiwice is not prejudiced, 
scholarships for the deserving employees on official time to 
upgrade their knowledge and skills. 
Provided further, 
That 
scholars under this provision shall be selected on the basis of 
merit as determined by competitive e.xamination; and 
A Provident Fund which shall consist of, but not be limited to 
contributions made by the OGCC and by its employees; 
Reimbursement of registration fees and expenses for trainings 
and seminars. Mandatory Continuing Legal Education fees and 
professional license fees.
SEC 8. Other Benefits - Provisions of other laws to the contrary 
notwithstanding, the legal personnel of the OGCC are authorized and shall 
continue to receive allowances and honoraria from government corporations 
which shall not exceed One Hundred Percent (100%) of their annual basic 
salary. The employees of the OGCC may likewise be extended such benefits 
and privileges as are given to the employees of government corporations.
II.
III.
IV.
V.


1 
SEC 9. 
Retirem ent 
Benefits 
- Any 
law 
to 
the 
contraiy
2 
notwithstanding, and consistent with Section 4 of this Act granting them the
3 
same retirement benefits and privileges of their counterparts in the
4 
judiciary, the retirement benefits of the GCC, DGCC, AGCC, GCA IV and
5 
GCA III shall be automatically increased whenever there is an increase in
6 
the salaries and allowances of the same positions from which he or she
7 
retired.
8 
SEC 10. A ttorney’s Fees and Special A ssessm ent - The OGCC is
9 
authorized to receive twenty percent (20%) of the money claims collected by,
10 
or awarded/adjudged to government corporations, in addition to the
11 
attorney’s fees awarded by a court, tribunal, or panel, including
12 
awards/judgments, 
stipulated 
under 
court-approved 
compromise
13 
agreements. 
The OGCC is hereby authorized to use such awards and
14 
attorney’s fees to meet contingencies, obligations and undertakings and/ or
15 
for employee benefits and incentives, necessaiy or proper to promote
16 
efficiency in the service as determined by the GCC.
17 
The GCC is likewise authorized to make special assessments upon
18 
government corporations and to disburse and use the same for such
19 
contingencies, obligations and undertakings, and to provide for employees’
20 
benefits and incentives allowed under the law.
21 
Attorney’s fees and special assessments shall be deposited in an
22 
authorized government depositoiy and shall be made available for
23 
expenditure without the need for a cash disbursement ceiling for purposes
24 
of meeting obligations and contingencies, upgrading facilities and
25 
equipment, granting of employees’ benefits and incentives and defraying
26 
such other expenses not provided for in the General Appropriations Act
27 
subject to accounting and auditing procedures.
28 
SEC 11. Franking Privilege - All official matters and telegrams of the
29 
OGCC addressed for deliveiy within the Philippines shall be received,
30 
transmitted and delivered free of charge.
31 
SEC 12. A ppropriations - The amount needed for employees’
32 
salaries, mandatoiy allowances and benefits under other laws, maintenance


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and other operating expenses and capital outlay shall be appropriated in the 
budget of the OGCC under the annual General Appropriations Act.
SEC 13. Repealing Clause - All laws, decrees, rules and regulations 
inconsistent with the provisions of this Act are hereby repealed or amended 
accordingly.
SEC 14. 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.
SEC 15. Effectixnty -  This Act shall take effect after fifteen (15) days 
from its publication in the Official Gazette or in a national newspaper of 
general circulation.
Approved,