HOUSE OF REPRESENTATIVES
Quezon City, Metro Manila

FIFTEENTH CONGRESS
THIRD REGULAR SESSION

HOUSE BIELNO. 6510

Introduced by CIBAC Party List Representatives
Sherwin N. Tugna and Cinchona Cruz-Gonzales

AN ACT AMENDING REPUBLIC ACT NO. 3019, ALSO KNOWN AS “THE ANTI-
GRAFT AND CORRUPT PRACTICES ACT”, TO PENALIZE AND CRIMINALIZE
GRAFT AND CORRUPT PRACTICES IN THE PRIVATE SECTOR, AND FOR OTHER
PURPOSES

EXPLANATORY NOTE

The evils of graft and corruption have always plagued both the public and private sectors
of our society in the Philippines. Graft and corruption in our society weakens our democracy
and the integrity of our various institutions, leads to violations of human rights, distorts markets,
prevents the proper delivery of basic services to the people, increases inequality and injustice in
the society and allows organized crime, terrorism and other threats to human security to flourish.

In order to address this problem, the United Nations adopted an instrument to address
globally the problem of graft and corruption. The United Nations Convention Against Corruption
(UNCAC) provides the clear message that the international community is determined to prevent
and control corruption.

Article 12 (1) particularly states that “Each State Party shall take measures, in accordance
with the fundamental principles of its domestic law, to prevent corruption involving the private
sector, enhance accounting and auditing standards in the private sector and, where appropriate,
provide effective, proportionate and dissuasive civil, administrative or criminal penalties for
failure to comply with such measures.”

The Philippines currently has no laws that specifically penalize corruption in the private
sector. Corruption has always been associated with the government. People always see that
corruption is only prevalent in government offices, agencies and departments. Public officials
are the ones who abuse their power and position to gain advantage. However, it is forgotten that
graft and corruption is not limited in the government sector. Graft and corruption occurs and
thrives because of the consciousness of the people engage in it, and the people who allow it to
‘occur just because everyone is involved in it. Many Filipinos have been born during times when
graft and corruption has already been prevalent in the society. When government officials are


being prosecuted for committing graft and corruption, many would say “eh sino ba ang di
gumagawa?” Such remark shows that the Philippine society recognizes the existence of graft
and corruption and somehow has accepted it already. Thus, this reality results to lack of political
and moral will of all Filipinos comprising our nation to fight graft and corruption.

Graft and corruption occurs in private sector as well. It is a reality that people use
money, position, or any advantage as an inducement or reward in order to get what they want.
‘These activities are considered forms of graft and corruption. In line with the thrust of UNCAC,
now is the right time to amend R.A. 3019 or the “Anti-Graft and Corrupt Practices Act” to
include a provision that will penalize corruption in the private sector. In doing this, a clear
message is being sent out that graft and corruption is prohibited in any sector of the society. All
Filipinos are part of the fight against graft and corruption.

Furthermore, there is a need to increase the fines for violations of Ant-Graft and Corrupt
Practices Act in order to deter people from committing such acts.

Lastly, there is a need for all heads of government offices, agencies, departments as well
as heads of corporations and businesses to make reports showing advantages received which are
allowed and permitted under this law and to enable the Office of the Ombudsman to inspect,
copy and reproduce such reports for reference, conduct of studies and adoption of other measures
for corruption prevention.

In view of the foregoing, immediate passage of the bill is earnestly sought

Rep. CINCHONA CRUZ-GONZALES

CIBAC Party-List



HOUSE OF REPRESENTATIVES
Quezon City, Metro Manila

FIFTEENTH CONGRESS
THIRD REGULAR SESSION

HOUSE BILL NO. 6610

Introduced by CIBAC Party List Representatives
Sherwin N, Tugna and Cinchona Cruz-Gonzales

AN ACT AMENDING REPUBLIC ACT NO. 3019, ALSO KNOWN AS THE “ANTI-
GRAFT AND CORRUPT PRACTICES ACT”, TO PENALIZE AND CRIMINALIZE
GRAFT AND CORRUPT PRACTICES IN THE PRIVATE SECTOR, AND FOR OTHER
PURPOSES

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

SECTION 1. Section 1 of R.A. No. 3019, as amended, is hereby amended to read as follows:

Section 1. Statement of policy. It is the policy of the Philippine Government, in
line with the principle that a public office is a public trust, to repress certain acts
of public officers and private persons alike which constitute graft or corrupt
practices or which may lead thereto.

THE PHILIPPINE GOVERNMENT ALSO RECOGNIZES THAT TO FIGHT
THE EVILS OF GRAFT AND CORRUPTION, ALL CITIZENS MUST
PARTICIPATE AND TAKE PART IN IT. CONSEQUENTLY, GRAFT AND.
CORRUPT PRACTICES OR ANY ACT WHICH MAY LEAD THERETO
OCCURRING IN THE PRIVATE SECTOR AND ONLY BETWEEN AND.
AMONG PERSONS WORKING FOR AND TRANSACTING WITH THE
PRIVATE SECTOR MUST BE REPRESSED AND PENALIZED.

SECTION 2. Section 2 of R.A. No. 3019, as amended, is hereby amended to read as follows:
Section 2. Definition of terms. As used in this Act, that term
(A) "ADVANTAGE" MEANS-
(@) ANY GIFT, LOAN, FEE, REWARD OR COMMISSION
CONSISTING OF MONEY OR OF ANY VALUABLE SECURITY OR

OF OTHER PROPERTY OR INTEREST IN PROPERTY OF ANY
DESCRIPTION;


(I) ANY OFFICE, EMPLOYMENT OR CONTRACT;

(Ml) ANY PAYMENT, RELEASE, DISCHARGE OR LIQUIDATION
OF ANY LOAN, OBLIGATION OR OTHER LIABILITY, WHETHER
IN WHOLE OR IN PART;

(IV) ANY OTHER SERVICE, OR FAVOUR (OTHER THAN
ENTERTAINMENT), INCLUDING PROTECTION FROM ANY
PENALTY OR DISABILITY INCURRED OR APPREHENDED OR
FROM ANY ACTION OR PROCEEDINGS OF A DISCIPLINARY,
CIVIL OR CRIMINAL NATURE, WHETHER OR NOT ALREADY
INSTITUTED;

(V) THE EXERCISE OR FORBEARANCE FROM THE EXERCISE OF
ANY RIGHT OR ANY POWER OR DUTY; AND.

(Vl) ANY OFFER, UNDERTAKING OR PROMISE, WHETHER
CONDITIONAL OR UNCONDITIONAL, OF ANY ADVANTAGE
WITHIN THE MEANING OF ANY OF THE PRECEDING
PARAGRAPHS (I), (II), (IID), (VY) AND (V), BUT DOES NOT
INCLUDE AN ELECTION CONTRIBUTION WITHIN THE
MEANING OF THE OMNIBUS ELECTION CODE;

(B) “AGENT” INCLUDES ANY PERSON EMPLOYED BY OR ACTING FOR
ANOTHER.

(C) "ENTERTAINMENT" MEANS THE PROVISION OF FOOD OR DRINK,
FOR CONSUMPTION ON THE OCCASION WHEN IT IS PROVIDED, AND
OF ANY OTHER ENTERTAINMENT CONNECTED WITH, OR PROVIDED
AT THE SAME TIME AS SUCH PROVISIONS.

(D)fa} "Government" includes the national government, the local governments,
the government-owned and government-controlled corporations, and all other
instrumentalities or agencies of the Republic of the Philippines and their branches.
(E) “INDIVIDUAL” INCLUDES THE PRIVATE PERSON CHARGED WITH
THE PUBLIC OFFICER OR THE PRIVATE PERSON CHARGED WITH
VIOLATION OF SECTION 7 OF THIS ACT.

(F)€4) "Person" includes natural and juridical persons, unless the context indicates
otherwise.

(G) "PRINCIPAL" INCLUDES-

(D) AN EMPLOYER;


(I) A BENEFICIARY UNDER A TRUST;
(Il) A TRUST ESTATE AS THOUGH IT WERE A PERSON;

(IV) ANY PERSON BENEFICIALLY INTERESTED IN THE ESTATE.
OF A DECEASED PERSON;

(V) THE ESTATE OF A DECEASED PERSON AS THOUGH IT WERE.
A PERSON; AND

(VI) IN THE CASE OF AN EMPLOYEE OF THE GOVERNMENT,
THE HEAD OF THE OFFICE, AGENCY OR DEPARTMENT
CONCERNED.

(H)f®) "Public officer” includes elective and appointive officials and employees,
Permanent or temporary, whether in the classified or unclassified or exempt
service receiving compensation, even nominal, from the government as defined in
the preceding subparagraph.

(Dfe) "Receiving any ADVANTAGE{gifi}" includes the act of accepting directly
or indirectly AN ADVANTAGE [e-gift} from a person other than a member of the
public officer's OR INDIVIDUAL’S immediate family, in behalf of himself or of
any member of his family or relative within the fourth civil degree, either by
consanguinity or affinity, even on the occasion of a family celebration or national
festivity like Christmas, if the ADVANTAGE IS NOT ALLOWED UNDER
SECTION 7 OF THIS ACT[ i

manifestly excessive}

SECTION 3. A new section 7 must be added which reads:

SECTION 7. CORRUPTION BY PRIVATE PERSONS. THE FOLLOWING
SHALL BE LIABLE FOR AN OFFENSE

(A) ANY AGENT WHO, WITHOUT REASONABLE EXCUSE, SOLICITS OR
ACCEPTS ANY ADVANTAGE AS AN INDUCEMENT TO OR REWARD
FOR OR OTHERWISE ON ACCOUNT OF HIS-

(@) DOING OR FORBEARING TO DO, OR HAVING DONE OR
FORBORNE TO DO, ANY ACT IN RELATION TO HIS PRINCIPAL'S
AFFAIRS OR BUSINESS; OR.

(I) SHOWING OR FORBEARING TO SHOW, OR HAVING SHOWN
OR FORBORNE TO SHOW, FAVOUR OR DISFAVOUR TO ANY
PERSON IN RELATION TO HIS PRINCIPAL'S AFFAIRS OR
BUSINESS, SHALL BE GUILTY OF AN OFFENCE.


(B) ANY PERSON WHO, WITHOUT REASONABLE EXCUSE, OFFERS
ANY ADVANTAGE TO ANY AGENT AS AN INDUCEMENT TO OR
REWARD FOR OR OTHERWISE ON ACCOUNT OF THE AGENT'S-

(@ DOING OR FORBEARING TO DO, OR HAVING DONE OR
FORBORNE TO DO, ANY ACT IN RELATION TO HIS PRINCIPAL'S
AFFAIRS OR BUSINESS; OR

(I) SHOWING OR FORBEARING TO SHOW, OR HAVING SHOWN
OR FORBORNE TO SHOW, FAVOUR OR DISFAVOUR TO ANY
PERSON IN RELATION TO HIS PRINCIPAL'S AFFAIRS OR
BUSINESS, SHALL BE GUILTY OF AN OFFENCE.

(C) ANY AGENT WHO, WITH INTENT TO DECEIVE HIS PRINCIPAL,
USES ANY RECEIPT, ACCOUNT OR OTHER DOCUMENT-

(1) IN RESPECT OF WHICH THE PRINCIPAL IS INTERESTED; AND

(Il) WHICH CONTAINS ANY STATEMENT WHICH IS FALSE OR
ERRONEOUS OR DEFECTIVE IN ANY MATERIAL PARTICULAR;
AND

(II) WHICH TO HIS KNOWLEDGE IS INTENDED TO MISLEAD
THE PRINCIPAL, SHALL BE GUILTY OF AN OFFENCE.

(D) IF AN AGENT ACCEPTS AN ADVANTAGE, NEITHER HE NOR THE
PERSON WHO OFFERED THE ADVANTAGE SHALL BE GUILTY OF AN
OFFENSE UNDER SECTION 7 (A) OR (B) IF:

() THE ACT IS DONE WITH THE PERMISSION OF HIS PRINCIPAL,
BEING PERMISSION WHICH COMPLIES WITH SECTION 7B)
BELOW;

(Il) THE ADVANTAGE IS UNSOLICITED;
(Il) THE ADVANTAGE IS OF SMALL OR INSIGNIFICANT VALUE
AND OFFERED OR GIVEN AS A MERE ORDINARY TOKEN OF
GRATITUDE OR FRIENDSHIP ACCORDING TO LOCAL CUSTOMS
OR USAGE

(E) FOR THE PURPOSES OF SECTION 7(D) PERMISSION SHALL-

() BE GIVEN BEFORE THE ADVANTAGE IS OFFERED OR
ACCEPTED; OR


(0) IN ANY CASE WHERE AN ADVANTAGE HAS BEEN OFFERED.
OR ACCEPTED WITHOUT PRIOR PERMISSION, BE APPLIED FOR
AND GIVEN AS SOON AS REASONABLY POSSIBLE AFTER SUCH
OFFER OR ACCEPTANCE,

AND FOR SUCH PERMISSION TO BE EFFECTIVE FOR THE
PURPOSES OF SECTION 7(D), THE PRINCIPAL SHALL, BEFORE
GIVING SUCH PERMISSION, HAVE REGARD TO THE
CIRCUMSTANCES IN WHICH IT IS SOUGHT.

SECTION 4. All provisions using the term “gift” shall be accordingly amended to use the term
“advantage” instead as defined herein.

SECTION 5S. Sections 7, 8, and 9 must be renumbered as Sections 8, 9, and 10 respectively.
SECTION 6. Section 9 of R.A. No. 3019, as amended, is hereby amended to read as follows:

Section 9. Penalties for violations. (a) Any public officer or private person
committing any of the unlawful acts or omissions enumerated in Sections 3, 4, 5
and 6 of this Act shall be punished with imprisonment for not less than six (6)
years and one (1) month but not nor more than fifteen (15) years AND A FINE
OF NOT LESS THAN FIVE HUNDRED THOUSAND PESOS NOR MORE
THAN ONE MILLION PESOS, perpetual disqualification from public office, and
confiscation or forfeiture in favor of the Government of any prohibited interest
and unexplained wealth manifestly out of proportion to his salary and other lawful
income.

Any complaining party at whose complaint the criminal prosecution was initiated
shall, in case of conviction of the accused, be entitled to recover in the criminal
action with priority over the forfeiture in favor of the Government, the amount of
money or the thing he may have given to the accused, or the value of such thing,

(B) ANY PRIVATE PERSON COMMITTING THE ACTS MENTIONED IN
SECTION 7 SHALL BE PUNISHED WITH IMPRISONMENT FOR NOT LESS
THAN SIX (6) YEARS AND ONE (1) MONTH BUT NOT MORE THAN
FIFTEEN (15) YEARS AND A FINE NOT LESS THAN FIVE HUNDRED
THOUSAND PESOS NOR MORE THAN ONE MILLION PESOS, AND
PAYMENT OF DAMAGES TO PERSONS PREJUDICED BY THE ACTS
COMMITTED.

(Cb) Any public officer in violation of any of the provisions of Section 8[7} of
this Act shall be punished by a fine of not less than THIRTY PERCENT NOR
MORE THAN SIXTY PERCENT OF HIS ANNUAL INCOME [one-hundred
‘peses-nor- more than-one thousand peses], or by imprisonment not exceeding one
year and six months, or by both such fine and imprisonment, at the discretion of
the Court


The violation of said section proven in a proper administrative proceeding shall be
sufficient cause for removal or dismissal of a public officer, even if no criminal
prosecution is instituted against him.

SECTION 7. Sections 10, 11, 12, 13 and 14 must be renumbered as Sections 11, 12, 13, 14 and
15 respectively.

SECTION 8. Section 14 of R.A. No. 3019, as amended, is hereby amended to read as follows:

Section 14. Exception. Unsolicited ADVANTAGE fgift} of small or insignificant
value offered or given as a mere ordinary token of gratitude or friendship
according to local customs or usage, shall be excepted from the provisions of this
Act PROVIDED THAT THE ADVANTAGE IS GIVEN OR RECEIVED
UNDER CONDITIONS MENTIONED IN SECTION 7(D) AND THE
PERMISSION OF THE PRINCIPAL IS OBTAINED UNDER THE
FOLLOWING CIRCUMSTANCES MENTIONED IN SECTION 7 (E).

Nothing in this Act shall be interpreted to prejudice or prohibit the practice of any
profession, lawful trade or occupation by any private person or by any public
officer who under the law may legitimately practice his profession, trade or
occupation, during his incumbency, except where the practice of such profession,
trade or occupation involves conspiracy with any other person or public official to
commit any of the violations penalized in this Act.

SECTION 9. A new section 15 must be added which reads:

SECTION 15. ALL HEADS OF GOVERNMENT OFFICES, AGENCIES,
DEPARTMENTS AS WELL AS HEADS OF CORPORATIONS AND
BUSINESSES, OR OF THEIR APPLICABLE DEPARTMENTS OR OFFICES
MUST MAKE AVAILABLE REPORTS OF ADVANTAGES RECEIVED AND
PERMITTED UNDER THIS LAW. THE REPORTS MUST PROVIDE THE
PARTICULAR DETAILS OF THE ADVANTAGE RECEIVED INCLUDING
BUT NOT LIMITED TO WHO ARE THE PERSONS WHO GAVE THE
ADVANTAGE, WHAT IS THE PECUNIARY AMOUNT OF THE
ADVANTAGES RECEIVED, REASON FOR THE RECEIPT OF THE
ADVANTAGES. THE REPORTS MUST BE REDUCED IN TABULAR
FORMS EVERY QUARTER FOR EASY REFERENCE. THE INFORMATION
OBTAINED BY HEADS OF GOVERNMENT OFFICES, AGENCIES,
DEPARTMENTS AS WELL AS HEADS OF CORPORATIONS AND
BUSINESSES, OR OF THEIR APPLICABLE DEPARTMENTS OR OFFICES
MUST BE KEPT FOR FIVE (5) YEARS.

THE REPORTS SHALL BE MADE AVAILABLE FOR INSPECTION,
COPYING, REPRODUCTION BY THE OFFICE OF OMBUDSMAN AT
REGULAR WORKING HOURS ON REGULAR BUSINESS DAYS.


SECTION 10. Separability Clause. - If any provision of this Act is declared invalid, the other
provisions not affected thereby shall remain valid

Section 11. Repealing Clause. - All laws, proclamations, executive orders, rules and regulations
or parts thereof inconsistent with this Act are hereby repealed, modified or amended
accordingly: Provided, That no person shall be deemed to be vested with any property or other
right by virtue of the enactment or operation of this Act.

Section 12. Effectivity Clause. - This Act shall take effect fifteen (15) days after its complete
publication in the Official Gazette or in at least two (2) national newspapers of general
circulation whichever comes earlier.

Approved,