REPUBLIC OF THE PHILIPPINES
HOUSE OF REPRESENTATIVES
Quezon City

SEVENTEENTH CONGRESS
First Regular Session

House Bill No.

Introduced by MAGDALO Party-List Representative
HON. GARY C. ALEJANO.

EXPLANATORY NOTE

Asset forfeiture is an acknowledged potent tool for recovering the proceeds and
instrumentalities of corruption. Recovery of properties acquired through illegal activities
deters public officials from indulging in corrupt and primitive accumulation of wealth. In
cognizance of the aforementioned significance of assets forfeiture, Republic Act No. 1379
which provides for a legal framework for the seizure and forfeiture of illicit assets was passed
into law. Nonetheless, there is an urgent need to expedite asset seizure thereby maximizing its

efficacy

This measure seeks to strengthen RA 1379 by (1) granting greater authority and power to the
Office of the Ombudsman to combat corruption through the exercise of forfeiture of assets
illegally acquired by public officials; and (2) providing for a more timely mechanism on the
same, Moreover, this measure seeks to increase the penalties against erring public officials,

Further, this measure seeks to put forward the following amendments to RA 1379

1. SEC. 3, PRESUMPTION: Failure of a public officer or employee to file a Statement
of Assets and Liabilities and Net Worth pursuant to Section 8 of R.A. 6713 within
thirty days from date of assumption to office shall be prima facie evidence that said
public officer or employee has no property, asset or business interest to declare at the
beginning of his/her service.

2. SEC. 4. PRIMA FACIE UNLAWFULLY ACQUIRED PROPERTY: Whenever any
public office or employee has acquired during his incumbency, amount of property
which is manifestly out of proportion to his salary as such public officer or employee
and to his other lawful income and the income from legitimately acquired property


sources, said property shall be presumed prima facie to have been unlawfully
acquired.

3. SEC. 5. FREEZE ORDER: When it appears upon the filing of the complaint provided
for under section 2 of this Act that an unlawfully acquired property or properties exist
as defined under Section 4 herein, the Ombudsman may, motu propio or upon motion
of the complainant, issue a freeze order on the aforesaid property or properties which
will be valid for not more than three (3) months.

It is hoped that finally, with its passage, justice will be swiftly served against public officials
who have stolen State funds and undermined public trust, and the culture of kleptocracy is

exterminated.

In view of the foregoing, immediate approval of this bill is earnestly sought.

’. ALEJANO
, Magdalo Para sa Pilipino Party-List


REPUBLIC OF THE PHILIPPINES
HOUSE OF REPRESENTATIVES
Quezon City

SEVENTEENTH CONGRESS
First Regular Session

House Bill No. 5469

Introduced by MAGDALO Party-List Representative
HON. GARY C. ALEJANO

AN ACT
STRENGTHENING THE FORFEITURE POWERS OF THE STATE, AMENDING
FOR THE PURPOSE CERTAIN PROVISIONS OF REPUBLIC ACT NO. 1379,
OTHERWISE KNOWN AS "AN ACT DECLARING FORFEITURE IN FAVOR OF
THE STATE ANY PROPERTY FOUND TO HAVE BEEN UNLAWFULLY
ACQUIRED BY ANY PUBLIC OFFICER OR EMPLOYEE AND PROVIDING FOR
THE PROCEEDINGS THEREFOR"

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

SECTION 1. Section 2 of R.A. No. 1379 is hereby amended to read as follows

"SEC. 2. Filing of petition. - [Whenever any public officer or employee has
acquired during his incumbency an amount of property which is manifestly
‘out of proportion to his salary as such public officer or employee and to his
other lawful income and the income from legitimately acquired property, said
property shall be presumed prima facie to have been unlawfully acquired, The
[Solicitor General] OFFICE OF THE OMBUDSMAN, MOTU PROPRIO
OR upon VERIFIED complaint by any [taxpayer to the city or provincial
fiscal who] PERSON shall conduct an [previous] inquiry similar to
preliminary investigations in criminal cases TO DETERMINE IF [and shall
certify to the Solicitor General that] there is reasonable ground to believe that
there has been committed a violation of this Act and the respondent is
probably guilty thereof. IT {shall file, in the name and on behalf of the
Republic of the Philippines,| [in the Court of First Instance of the city or
province] WITH THE SANDIGANBAYAN OR THE APPROPRIATE
REGIONAL TRIAL COURT where said public officer [or employee]
resides or holds office, a petition for a writ commanding said officer or
employee to show cause why the property aforesaid, or any part thereof,
should not be declared property of the State: Provided, That no such petition
shall be filed AGAINST A CANDIDATE within THE ELECTION
PERIOD FOR WHICH HE/SHE IS SEEKING ELECTORAL OFFICE
[one year before any general election or within three months before any
special election.

‘The resignation, dismissal or separation of the officer or employee from his
office or employment in the Government or in the Government owned or

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controlled corporation shall not be a bar to the filing of the petition |Provided,
however, That the right to file such petition shall prescribe after four years
from the date of the resignation, dismissal or separation or expiration of the
term of the office or employee concerned, except as to those who have ceased
to hold office within ten years prior to the approval of this Act, in which case
the proceedings shall prescribe after four years from the approval hereof]."

‘SEC 2. Insert new Sections 3, 4, and 5 to RA. No. 1379, to read as follows:

"SEC. 3. PRESUMPTION. - FAILURE OF A PUBLIC OFFICER OR
EMPLOYEE TO FILE A STATEMENT OF ASSETS AND
LIABILITIES AND NETWORTH PURSUANT TO SECTION 8 OF RA.
6713 WITHIN THIRTY DAYS FROM DATE OF ASSUMPTION TO
OFFICE SHALL BE PRIMA FACIE EVIDENCE THAT SAID PUBLIC
OFFICER OR EMPLOYEE HAS NO PROPERTY, ASSET OR
BUSINESS INTEREST TO DECLARE AT THE BEGINNING OF
HIS/HER PUBLIC SERVICE.

SEC. 4. PRIMA FACIE UNLAWFULLY ACQUIRED PROPERTY. -
WHENEVER ANY PUBLIC OFFICER OR EMPLOYEE HAS
ACQUIRED DURING HIS INCUMBENCY AMOUNT OF PROPERTY
WHICH IS MANIFESTLY OUT OF PROPORTION TO HIS SALARY
AS SUCH PUBLIC OFFICER OR EMPLOYEE AND TO HIS OTHER
LAWFUL INCOME AND THE INCOME FROM
LEGITIMATELYACQUIRED PROPERTY SOURCES, SAID
PROPERTY SHALL BE PRESUMED PRIMA FACIE TO HAVE BEEN
UNLAWFULLY ACQUIRED.

SEC. 5. FREEZE ORDER. - WHEN IT APPEARS UPON THE FILING
OF THE COMPLAINT PROVIDED FOR UNDER SECTION 2 OF
THIS ACT THAT AN UNLAWFULLY ACQUIRED PROPERTY OR
PROPERTIES EXIST AS DEFINED IN SECTION 4 HEREIN, THE
OMBUDSMAN MAY, MOTU PROPRIO OR UPON MOTION OF THE
COMPLAINANT, ISSUE A FREEZE ORDER ON THE AFORESAID
PROPERTY OR PROPERTIES WHICH WILL BE VALID FOR NOT
MORE THAN SIX (6) MONTHS."

SEC 3. Section 3 of R.A. No. 1379 is hereby renumbered to Section 6.
SEC. 4. Section 4 of R.A. No. 1379 is hereby amended to read as follows:
"SEC. [4] 7. Period TO [for the] answer PETITION. - The respondent
shall haye a period of fifteen days FROM NOTICE within which to present
his answer. "

SEC. 5. Section 5 of R.A. No. 1379 is hereby renumbered to Section 8.

SEC. 6. Section 6 of R.A. No. 1379 is hereby amended to read as follows:


"SEC. [6] 9. Judgment, - If the respondent is unable to show to the satisfaction
of the court that he has lawfully acquired the property in question, then the
court shall declare such property, forfeited in favor of the State, and by virtue
of such judgment the property aforesaid shall become property of the State
Provided, That no judgment shall be rendered within six months before any
general election or within three months before any special election. [The Court
may, in addition, refer this case to the corresponding Executive Department
for administrative or criminal action, or both |"

SEC. 7. Section 7 of R.A. No. 1379 is hereby amended to read as follows:

"SEC. [7}10. Appeal. - The parties may appeal from the judgment of
the SANDIGANBAYAN OR THE REGIONAL TRIAL COURT
{Court of First Instance] as provided in the Rules of Court for appeals
in civil cases."

‘SEC. 8. Section 9 of R.A. No. 1379 is hereby amended to read as follows:

"SEC. [9] 12. Jmmunity. The [Solicitor General] OMBUDSMAN may
grant immunity from criminal prosecution to any person who testifies
to the unlawful manner in which the respondent has acquired any of
the property in question in cases where such testimony is necessary to
prove violations of this Act.”

SEC. 9. Section 10 of R.A. 1379 is hereby amended to read as follows:

"SEC. [10] 13. Effect of record of title. ~:- The fact that any real
property has been recorded in the Registry of Property or office of the
Register of Deeds in the name of the respondent or of any person
mentioned in paragraphs (1) and (2) of subsection (b) of section one
hereof shall not prevent the rendering of the judgment referred to in
section EIGHT [six] of this Act."

SEC. 10. Section 11 of R.A. 1379 is hereby renumbered to Section 14.
SEC. 11. Section 12 of R.A. 1379 is hereby amended to read as follows:

"SEC. [12] 15. Penalties. - Any public officer or employee who shall,
afier the effective date of this Act, transfer or convey any unlawfully
acquired property shall be [repressed] PENALIZED with
imprisonment for a term OF not LESS THAN SIX [exceeding five]
years AND ONE DAY BUT NOT MORE THAN FIFTEEN
YEARS, [or a fine not exceeding ten thousand pesos, or both such
imprisonment and fine] PERPETUAL DISQUALIFICATION
FROM PUBLIC OFFICE, AND CONFISCATION OR
"FORFEITURE IN FAVOR OF THE GOVERNMENT OF ANY
PROHIBITED INTEREST. [The same repression shall be imposed
upon any person who shall knowingly accept such transfer or
conveyance. |


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THE SAME PENALTIES SHALL BE IMPOSED UPON
ANY PERSON WHO SHALL KNOWINGLY ACCEPT SUCH
UNLAWFUL TRANSFER OR CONVEYANCE. ANY SUCH
CONVEYANCE SHALL BE VOID AB INITIO."

SEC. 12. Rules and Regulation. - The Ombudsman shall issue within ninety (90) days
afler the approval of this Act, the necessary rules and regulation relating to the administrative
aspects of the provisions of this Act.

SEC. 13. Separability Clause. - If for any reason, any section or provision of this Act
is declared to be unconstitutional or invalid, the other sections or provisions hereof which are
not affected thereby shall continue to be in full force and effect.

SEC. 14. Repealing Clause. - All laws, decrees, orders or rules and regulations, and
other issuances which are inconsistent with the provisions of this Act are hereby repealed,
amended or modified accordingly.

SEC. 15. Effectivity. - This Act shall take effect fifteen (15) days after its publication
in two (2) national newspapers of general circulation.

Approved,