Republic of the Philippines
HOUSE OF REPRESENTATIVES
‘Quezon City

SIXTEENTH CONGRESS
First Regular Session

HOUSE BILL NO. _~ 2600

Introduced by Rep. Winston “Winnie” Castelo

EXPLANATORY NOTE

“Too many stairs and back doors make thieves and whores”, Balthazar Gerbier
did say.

The Philippine administrative system or bureaucracy so-called over many years
may have unwittingly been under heavy infestation of public officials as well as private
individuals into the near ‘art’ or near ‘science’ of corruption that has plagued state
agencies, bureaus, and offices. Nothing can seem to stop this vicious bureaucratic orgy.

Time to put an end to the feast and kill the beast.

This instant bill puts a surefire stop to embezzlement of public funds by
constituting the Commission on Audit, the Office of the Ombudsman and the Committee
on Oversight of Congress into a tripartite body with that singleness of purpose, namely ~
to run after corrupt officials and private individuals and hold them to account.

‘Audit is crucial. It will remain to be so through @ no-nonsense approach that
yields together the capacities of three institutions into a merged one - more committed,
‘more dedicated, and more bound by conscience than by instruction.

‘Thereby, no more test of wills. Let good governance pass the litmus test by
calling a spade a spade. Its time to stand on the moral high ground of righteousness, if
we as a people, can. It is time to draft the true code of conduct in public service that
should be better in its praxis than in its text.

In this proposal, the tasks have been exhaustively outlined and they are regarded
to put an end to a problem that has existed since time immemorial. A judicious perusal
ee te A eeoe eet cuseec anne
enabled watchdog against irregular, excessive, extravagant, oF
eee Gas eller aeney ira ibs iS.

The immediate passage of this bill is highly sought.

_ msn ie casr.0 a
ye



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Republic of the Philippines
HOUSE OF REPRESENTATIVES
‘Quezon City
SIXTEENTH CONGRESS
First Regular Session

2600

HOUSE BILL NO. __"

Introduced by Rep. Winston “Winnie” Castelo

AN ACT
CONSTITUTING THE COMMISSION ON AUDIT (COA), OFFICE OF THE
OMBUDSMAN, AND COMMITTEE ON OVERSIGHT OF CONGRESS INTO A
TRIPARTITE BODY TO BE KNOWN AS THE LEGISLATIVE AUDIT COUNCIL TO
PERFORM IDENTIFIED TASKS ENABLING GOVERNMENT TO EFFECTIVELY RUN
AFTER CORRUPT OFFICIALS AND PRIVATE INDIVIDUALS AND MADE THEM TO
ACCOUNT FOR EMBEZZLEMENT OF PUBLIC FUNDS,

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

SECTION 1. The Commission on Audit (COA), Office of the Ombudsman, and
Committee on Oversight of Congress are hereby constituted as a tripartite body to be
known as the ‘Legislative Audit Council’ that will perform identified tasks enabling
government to effectively run after corrupt officials and private individuals and made
them to account for embezzlement of public funds.

SEC. 2. Under this Act, the Legislative Audit Council shall be composed of the
Commissioner of the Commission on Audit or his designated representative, the
Ombudsman or his designated representative, and the chairman of the House
Committee on Oversight and the chairman of the Senate Committee on Oversight or
their designated representatives, respectively.

SEC. 3. The composition of the Legislative Audit Council shall perform any or all
Of the following acts or other future acts it may deem relevant to its main goal to run after
Corrupt and private individuals and made them to account for embezzlement of public
funds, as follows:

1. shall be responsible for the oversight of the state audit program

2. shall review stewardship of public funds

3. shall monitor action to correct weaknesses disciosed by the audits of state
agencies


shall take definitive action on financial and compliance reports and

performance audits

ie OE Ic sin 0) ae is sine gepeee to review)

problems, assess agency stewardship, and secure remedial action

shall initiate and cause review of management and program audits and

investigations

. shall make recommendations for corrective legislation and other measures to

remedy weaknesses disclosed through audits or at council meetings

shall monitor agency progress in implementing corrective action

|. shall ensure that public funds would have proper and full accounting and that
‘transactions are transparent and consistent with sound bidding and auditing
requirements

10. shall send public officials or private individuals found to have embezzled
Public funds to serve sentence in jail, pay fines, and reimburse to the
government all sums of money siphoned off from anomalous transactions

14. shall shift to adopt the visitorial system approach in auditing and do away with
the residency audit approach

12. shall serve as a pool of experts in various fields to insure integrity of the
council waiving thereby COA’s ten-year requirement of practice of profession
in the case of certified public accountants and

13. shail insure freedom from technical and procedural errors that commonly
frustrate the ends of justice and undermines the role of the Legislative Audit
Council as watchdog against “irregular, unnecessary, excessive, extravagant,
‘or unconscionable expenditures, or uses of government funds and properties"

14. shall eliminate if not totally eradicate practices inimical to good governance
such as but not limited to imegular transactions, lost funds, ghost

procurement, non-existent projects, contracts without the conduct of public

bidding, infrastructure project overpricing, anomalous negotiated purchases,

unnecessary procurement and the like

SEC. 4, Under this Act, there is neither new office created thereby nor any new
funds appropriated to carry out the provision of this Act. However, let the
Commission on Audit be the Office of Primary Responsibility to issue rules and
‘regulations to fully implement this Act.

SEC. 5. All issuances, laws, decrees, orders, rules and regulations : Lalas
thereof not consistent with this Act are hereby repealed or modified accordit

SEC. 6. This Act shall take effect thirty (30) days following its publication in:the
Official Gazette and in at least three (3) newspapers of general circulation.

‘Approved,

22 AO