Republic of the Pilllippines 
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SENATE OF THE PHILIPPINES . 
Pasay City 
FIFTEENTH CONGRESS 
Second Regular Session 
Senate Bill No. 3205 
Introduced by Senator Manuel "Lito" M. Lapid 
EXPLANATORY NOTE 
The country's banking and financial sector belong to the most important 
institutions that act as engines of national development. Not only must it remain strong 
and steadfast so as the nation may continue to enjoy a sound economic environment, it 
should more importantly stay committed to its promise of being safe havens to client's 
hard earned money. 
However, recent experiences revealed several cracks in existing policies 
regarding banking that economic saboteurs capitalize on schemes calculated to plunder 
outrageous amounts of deposits in banks. Worse, most of the victims are depositors of 
rural and thrift banks that belong to the poorer sector of society. Much worst is the fact 
that it is the government through the Philippine Deposit and Insurance Commission 
(PDIC) willch is forced to be subrogated to the obligation to return the deposits witilln 
the amounts insured. 
This treacherous act of plundering must end but efforts to address tills menace 
seem to lack the efficacy to do just that. Thus, this measure is proposing the revision of 
the law now existing to underscore the need to equate a severe punishment to this 
dastardly act of raiding the coffers of unsuspecting depositors. Not only does this 
measure insulate the depositors from these plunderers cum economic saboteurs but 
likewise it will help maintain the confidence and trust of the people to the nation's 
banking sector. 
Early passage of this bill is earnestly sought. 


Republic of the Philippines 
SENATE OF THE PHILIPPINES 
Pasay City 
FIFTEENTH CONGRESS 
Second Regular Session 
Senate Bill No. :3 2 0 5 
Introduced by Senator Manuel "Lito" M. Lapid 
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AN ACT 
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EXPANDING THE SCOPE OF THE CRIME OF ECONOMIC SABOTAGE 
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AMENDING FOR THAT PURPOSE PRESIDENTIAL DECREE NO. 1689 
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Be it enacted by the Senate and House of Representatives of the Philippines in Congress 
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assembled: 
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Section 1. Section 1 of Presidential Decree No. 1689 is hereby amended to read as 
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follows: 
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"Section 1. Any person [or persons] who, BY HIMSELF OR IN 
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CONNIVANCE WITH MEMBERS OF HIS FAMILY, RELATIVES BY 
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AFFINITY 
OR 
CONSANGUINITY, 
BUSINESS 
ASSOCIATES, 
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SUBORDINATES OR OTHER PERSONS, shall DEFRAUD OR 
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MISAPPROPRIATE MONEY CONTRIBUTED BY STOCKHOLDERS, 
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OR MEMBERS OF RURAL BANKS, COOPERATIVE, "SAMAHANG 
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NAYON(S)", OR FARMERS 
ASSOCIATION, OR OF FUNDS 
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SOLICITED BY CORPORATIONS/ASSOCIATIONS FROM THE 
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GENERAL PUBLIC THROUGH AN ACT OR ACTS CONSTITUTING 
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estafa or other forms of swindling as defined in Article 315 and 316 of 
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the Revised Penal Code, as amended, shall be punished by life 
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imprisonment to death. [if the swindling (estafa) is committed by a 
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syndicate consisting of five or more persons formed with the intention 
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of carrying out the unlawful or illegal act, transaction, enterprise or 
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scheme, and the defraudation results in the misappropriation of money 
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contributed by stockholders, or members of rural banks, cooperative, 
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"samahang nayon(s)", or farmers association, or of funds solicited by 
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corporations/associations from the general public.] 
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ANY PERSON WHO PARTICIPATED IN THE COMMISSION 
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OF THE CRIME SHALL LIKEWISE BE PUNISHED. IN THE 
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IMPOSITION OF PENALTIES, THE DEGREE OF PARTICIPATION 
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AND THE ATTENDANCE OF MITIGATING AND EXTENUATING 
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CIRCUMSTANCES SHALL BE CONSIDERED BY THE COURT. 
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[When not committed by a syndicate as above defined, the penalty 
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imposable shall be reclusion temporal to reclusion perpetua if the 
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amount of the fraud exceeds 100,000 pesos.]" 
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Sec. 2. Separability Clause. - If any provision of this Act is declared unconstitutional or 
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invalid, the other provisions not affected by such declaration shall remain in full force 
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and effect .. 
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Sec. 3. Repealing Clause. - Any law, decree, ordinance or administrative circular not 
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consistent with any provision of this Act is hereby amended, repealed or modified 
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accordingly. 
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Sec. 4. Effectivity Clause. - This Act shall take effect fifteen (15) days after its complete 
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publication in the Official Gazette or in two (2) newspapers of general circulation. 
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Approved, 
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