Republic of the Philippines 
HOUSE OF REPRESENTATIVES 
Batasan Hills, Quezon City 
TWENTIETH CONGRESS 
First Regular Session 
HOUSE BILL NO. 1466 
Introduced by ​
HON. ATTY. GERVILLE “JINKY BITRICS” R. LUISTRO 
EXPLANATORY NOTE 
Special Disbursing Officers (SDOs), chosen by heads of agencies based on trust, are tasked with 
releasing public funds through cash advances. Although guidelines exist—such as COA Circular 
No. 97-002 for regular funds and Joint Circular No. 2015-01 for confidential and intelligence 
funds—these are insufficient to prevent misuse. 
The absence of a clear legal framework has allowed some officials to disburse large sums 
without proper liquidation, leading to abuse and impunity. These concerns were brought to light 
during congressional inquiries into irregular fund disbursements, where systemic weaknesses in 
oversight were revealed. 
While the necessity of confidential and intelligence funds in ensuring national security is 
recognized, there is an urgent need to strengthen accountability measures. This bill aims to 
regulate SDOs across all fund types, establish clear standards, and impose penalties for misuse, 
whether due to negligence or deliberate wrongdoing. 
The proposed measure seeks to close existing loopholes and protect public resources. Its 
immediate enactment is strongly urged. 
HON. ATTY. GERVILLE “JINKY BITRICS” R. LUISTRO 
July 7, 2025
3:14 pm


Republic of the Philippines 
HOUSE OF REPRESENTATIVES 
Batasan Hills, Quezon City 
TWENTIETH CONGRESS 
Third Regular Session 
HOUSE BILL NO. 1466 
Introduced by  
HON. ATTY. GERVILLE “JINKY BITRICS” R. LUISTRO 
AN ACT REGULATING SPECIAL DISBURSEMENT OFFICERS AND IMPOSING PENALTIES 
FOR MISUSE AND MISAPPROPRIATION OF FUNDS 
Be it enacted by the Senate and House of Representatives of the Philippines in Congress 
assembled: 
SECTION 1. Short Title. This Act shall be known as the "Special Disbursing Officers 
Accountability Act"  
SECTION 2. Declaration of State Policies. The state recognizes the need for the 
allocation and use of confidential/intelligence funds in certain government agencies with 
mandates that are directly related to national security. law enforcement, and intelligence 
operations, and other related critical functions requiring discretion, as well as use of regular 
funds in government operations through cash advances of special disbursing officers. It is the 
policy of the state that the use of such funds must be subject to stringent oversight, 
accountability, and transparency to ensure that they are not misused, misappropriated, or diverted 
for unauthorized purposes. Further, it is the policy of the state to prevent intentional and 
negligent dissipation of funds disbursed to special disbursing officers appointed by and acting 
under the direction of Heads of Agencies.  
SECTION 3. Scope. This Act covers all special disbursing officers, handling both 
regular and confidential/intelligence funds, as defined in this bill.  
SECTION 4. Special Disbursing Officer. The Special Disbursing Officer (SDO) refers 
to the Head of Agency (HoA) or a regular employee designated as such by the HoA, to be 


in-charge of making disbursement of the amount received. The SDO shall be accountable to the 
amount received for disbursement.  
 
SECTION 5. Qualifications of an SDO. The SDO, designated as such by the HoA, shall 
be a permanent official or employee of the agency of at least SG 24, possess an educational 
background related to accounting, auditing or finance, with an approved fidelity bond equivalent 
to the SDO's accountability.  
 
SECTION 6. Limit on Accountability. The SDO shall have an approved fidelity bond 
in an amount equivalent to their cash accountability and whose net worth can cover at least fifty 
per centum (50%) to one hundred per centum (100%) of their cash accountability. The SDO shall 
comply with the rules and regulations on the entitlement, release, use, reporting and audit of 
regular and confidential/intelligence funds, provided the same are not contrary to the provisions 
of this Act.  
 
SECTION 7. Non-delegability. The SDO designated as such by the HoA shalt not make 
further delegation of disbursing the funds to which the SDO is accountable. The funds disbursed 
to the SDO must be liquidated by the same SDO accountable therefor. The SDO shall ensure 
proper liquidation of the funds and that the purpose for which the fund was originally intended 
had been attained. In the case of confidential/intelligence funds, the SDO shall ensure and certify 
that the funds have been used in relation to the mandate of the agency directly related to national 
security, peace and order, or intelligence gathering for the effective implementation of its law 
enforcement mandate. Activities related to national security and peace and order includes 
purchase of information necessary for the formulation and implementation of program, activities 
and projects relevant to the national security and peace and order, payment of rewards, aid and/or 
capability development for personnel of law enforcement agencies, and volunteers/partners and 
other activities, crime prevention and law enforcement activities, and programs for anti-illegal 
drug, illegal gambling, counter-insurgency and/or counter-terrorism, illegal logging, illegal 
mining, illegal fishing, smuggling and human trafficking.  
 
SECTION 8. Prima facie evidence of misappropriation. There shall be prima facie 
evidence of misuse and misappropriation of the funds if: (i)There is disbursement of funds 
allocated to a government agency, unit or instrumentality the mandate of which is not directly 
related to national security or peace and order; (ii) The SDO fails to fully liquidate the funds at 
the end of each year; (iii)The SDO disburses the funds to another person who shall make further 
disbursement of funds; (iv) There is disbursement of funds for activities not directly related to 
national security, peace and order, or intelligence gathering for effective implementation of its 
law enforcement mandate; or (v) Failure to personally comply with the documentary 
requirements of liquidation.  
 


SECTION 9. Liability of the SDO. The SDO and the HoA shall be jointly and severally 
liable in case of failure to render accounts, misappropriation, or misuse of the funds whether 
through negligence or intentionally.  
 
SECTION 10. Penalties. Without prejudice to the filing of criminal, civil and 
administrative cases, the penalty of perpetual disqualification from office shall be imposed upon 
the SDO for violation of any of the provisions of this act, including loss of benefits.  
 
SECTION 11. Prescription of Crimes. The offenses punishable under this Act shall 
prescribe in twenty (20) years. However, the right of the State to recover properties unlawfully 
misappropriated by the SDO and HoA shall not be barred by prescription, laches, or estoppel.  
 
SECTION 12. Implementing rules and regulations. The Commission on Audit, 
Bureau of Treasury, Department of Interior and Local Goverment, Governance Commission for 
Government-owned or -controlled Corporations, Department of Budget and Management, and 
the Department of National Defense shall review and revise their existing circulars and joint 
circulars in accordance with this Act and shall produce Implementing Rules and Regulations 
within 90 calendar days from publication of this Act.  
 
SECTION 13. Separability of Provisions. If any provisions of this Act or the 
application thereof to any person or circumstance is held invalid, the remaining provisions of this 
Act and the application of such provisions to other persons or circumstances shall not be affected 
thereby.  
 
SECTION 14. Repealing Clause. All laws, decrees, orders, rules, and regulations 
inconsistent with the provisions of this Act are hereby repealed or modified accordingly.  
 
SECTION 15. Effectivity. This Act shall take effect fifteen (15) days after its 
publication in the Official Gazette or in at least two (2) newspapers of general circulation.  
 
Approved,