THIRTEENTH CONGRESS OF THE REPTJJ3LX ) 
OF THE PHILTPPINES 
First Regular Session 
) 
I
.
 
SENATE 
S. B. No. 
~~ 
- 
Introduced by Senator LUISA “LOP’ P. EYERCITO 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 codict 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 fhancial 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 implement the 
constitutional mandate to “develop a seK-reliant and independent national economy 
effectively controlled by Filipinos.” (Art. II, See. 19). 
In view hereof, the early passage of this proposed measure is highly recommended. 
LUISA “LOI” P. kJERCITO ESTRADA 
Senator 
\ 
i 


THIRTEENTH CONGRESS OF THE R E ? P ~ L I ~  
) 
OF THEPHILIPPINES 
) 
First Regular Session 
1 
SENATE 
G .L$ 
s. B. No. 
Introduced by Senator LUISA "LOP' P. EJERCITO ESTRADA 
AN ACT 
PROHIBITING RETIRED AND INCUMBENT OFFICIALS OF GOVERNMENT 
FROM 
EMPLOYMENT 
WITH INTER"AL AM) DOMESTIC 
CREDITORS 
Be it enacted by the Senate and the House of Representatives of the Philippines in 
Congress assembled: 
SECTION 1. Declaration of Policy. - 
The 1987 Constitution mandates for a 
self-reliant and independent nationaf 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 Ufj$cials 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 Employlllent 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 h i t s  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. 
Eflectivity. 
- 
This Act shall take effect fifteen (15) days fiom 
the date of its publication in the official gazette or in any newspaper of general circulation, 
whichever comes earlier. 
Approved, 
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