Republic of the Philippines
House of Representatives
Queron Gity, Meteo Manila

NINETEENTH CONGRESS
Third Regular Session

House Bill No. 11407

INTRODUCED BY REPRESENTATIVE PM VARGAS

AN ACT
MANDATING THE FULL ACCOUNTING OF ALL DISASTER-RELIEF
AID OR DONATIONS RECEIVED BY THE PHILIPPINE
GOVERNMENT FOR NATURAL AND HUMAN-INDUCED
CALAMITIES

EXPLANATORY NOTE

The Philippines is among the countries with the highest number of
calamities annually due to its geographic location along the Pacific Ring
of Fire and the typhoon belt. The country is highly vulnerable to
earthquakes, volcanic eruptions, typhoons, and severe flooding, which
result in significant economic and humanitarian challenges each year.

‘The Department of Science and Technology (DOST) reports that an
average of 20 storms and typhoons enter the Philippine Area of
Responsibility annually, while the country also experiences between
100-150 earthquakes of varying magnitudes. These recurring disasters
necessitate robust mechanisms, including immediate relief efforts and
long-term recovery programs.

Over the years, the resilience of the Filipinos in facing these
disasters has been strengthened by both local and international
humanitarian aid. Donations in the form of cash and in-kind assistance
from foreign governments, multilateral organizations, private
institutions, and individuals, have played a crucial role in the disaster
relief and recovery efforts. However, concerns regarding the
transparency, accountability, and proper utilization of these donations
have persisted, raising questions about their efficient deployment to
affected communities.

The proposed “Donation Transparency Act, seeks to establish a
legal framework for the full disclosure and accounting of all disaster-


related aid received by the Philippine government. The measure aims to
ensure that every donation -whether from foreign entities or domestic
sources- is properly documented, tracked, and utilized strictly for its
intended purposes.

The bill is designed to enhance public trust in disaster-relief efforts
by eliminating opportunities for mismanagement and corruption in the
handling of donations. By ensuring that all aid is appropriately
accounted for and disclosed, the measure promotes good governance,
transparency, and efficient disaster response and recovery.

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

é VARGAS
Fifth District of Quezon City



Republic of the Philippines
House of Representatives
Quezon City, Aeteo Manila

NINETEENTH CONGRESS
Third Regular Session

House Bill No, 11407

INTRODUCED BY REPRESENTATIVE PM VARGAS

AN ACT
MANDATING THE FULL ACCOUNTING OF ALL DISASTER-RELIEF
AID OR DONATIONS RECEIVED BY THE PHILIPPINE
GOVERNMENT FOR NATURAL AND HUMAN-INDUCED
CALAMITIES

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

SECTION 1. Title. This Act shall be known as the “Donation
‘Transparency Act”.

SECTION 2. Declaration of Policy. It is hereby declared the policy of
the State to promote transparency and accountability in the receipt and
utilization of foreign and local donations for natural and human-
induced calamities that cause havoc and destruction in the country.

SECTION 3. Coverage. This Act shall cover all foreign and local
donations directed to the national government, government-owned or -
controlled corporations (GOCCs), and local government units (LGUs)
from all sources, such as foreign governments, bilateral or multilateral
organizations and institutions, and private individuals or groups.

SECTION 4. Definition of Terms. For purposes of this Act, the
following shall refer to:

(a) “Calamity” - a natural or human-induced disaster causing
widespread human material, economic or environmental
losses to a community or society.

(b) “Donations? - cash or non-cash aid or grants received by the
government for disaster relief, recovery or rehabilitation.

(c) “Donor” - refers to foreign governments, bilateral or
multilateral organizations and institutions, private or groups


who donate dash or non-cash aid or grants to the Philippine
government for disaster relief or rehabilitation.

(d) “Donee” - refers to departments, bureaus, and offices of the
national government including constitutional offices, state
universities and colleges, government-owned or -controlled
corporations, and local government units that receive
donations from various sources.

(c) “Donation in Cash” - refers to cash assistance from a donor
entity /individual to the Philippine government through any
of its agencies or instrumentalities.

(f) “Donations in Kind” - refer to assistance in kind such as but
not limited to food, clothing, medicine, and equipment
coming from the donor entity/individual to a specific
national government agency or local government units for
the purpose of disaster relief, recovery and rehabilitation
efforts.

SECTION 5. Donations. Departments, bureaus, and offices of the
National Government, including constitutional offices enjoying fiscal
autonomy, and state universities and colleges may accept donations in
cash or in kind from various sources, domestic or foreign, for purposes
relevant to their respective functions, and which shall be used to cover
aid, relief and rehabilitation, repair and reconstruction of permanent
structures affected by natural and man-made calamities. Such
donations, whether in cash or in kind, shall be deemed automatically
appropriated.

SECTION 6. Utilization and Treatment of Donations. Donations
shall be utilized in accordance with the purpose identified by the donor.
Donations for a specific purpose, as identified by the donor, shall be
treated as trust receipts: Provided, in case the donor does not identify
a specific project or activity to be funded, such donation shall be
considered as calamity aid for the use of the Department of Social
Welfare and Development: Provided, further, That donations intended
for program support for calamities in general shall be booked as income
of the National Government or local government units, as the case may
be.

SECTION 7. Cash Donations, All cash donations shall be deposited
under the account of the Bureau of Treasury (BTr), except when the
donation is made directly to the agencies, in which case the donee-
agency shall inform the BTr of cash donation upon receipt thereof:
Provided, That if donation is made directly to an LGU, the Bureau of
Local Government Finance (BLGF) shall be informed upon its receipt of
the cash donation for the purposes of consolidation the quarterly
reports to be submitted to the Office of Civil Defense (OCD), the
secretariat f the National Disaster Risk Reductions and Management
Council (NDRRMC). An official receipt shall be issued by the concerned
donee-agency or LGU for cash donations received.



Donations in foreign currency shall be converted ilippi
for to the Philippine
Peso at the prevailing rate at the time of the receipt of the donation.
Donations shall be taken up in the books of the BTr as income or trust
receipts

The amounts received by the donee-agency shall thereafter be
deposited to the account of the Treasurer of the Philippines, and shall
be made available to the implementing agency concerned through a
Special Budget pursuant to section 35, Chapter 5, Book VI of E. O. No.
292: Provided, That if the donee-agency is an LGU, the same shall be
deposited to the account of the Local Treasury as a separate special
account maintained in every provincial, city or municipal treasury and
recorded as a Trust Fund under the Special Funds pursuant to Section
309 (b) Article I, Chapter II, Title V, Book II of the Local Government
code.

In no case shall the cash donation be used for payment of Personal
Services of any government unit or any other expenses not related to
disaster relief, recovery and rehabilitation efforts.

SECTION 8. Donations in Kind. For donations in kind, an
acknowledgment receipt shall be issued to the donor by the donee-
agency. The value of donated Property, Plant and Equipment (PPE) shall
be based on the declared value in the Deep of Donation or the bill of
landing/airway bill/parcel notice and other related documents. The fair
marker value/appraised value shall be used in the absence of declared
value. The donee-agency shall submit either in printed form or by way
of electronic document to the OCD, quarterly reports on the receipt of
donations in kind: Provided, That the LGU shall submit to OCD thru
BLGF all donations in kind that they have received: Provided, further,
That the Bureau of Customs (BOC), which processes all foreign
donations pursuant to Section 18 of RA 10121, otherwise known as the
“Philippine Disaster Risk Reduction and Management Act”, shall
submit a report on conditionally-free importation under this section to
the OCD.

The head of the donee-agency or LGU shall be primarily responsible
for the accounting and safeguarding of all donated supplies, materials,
equipment and relief goods against loss and wastage.

SECTION 9. Foreign Donations. Foreign donations, whether in cash
or in kind, from foreign governments shall be subject to the prior
clearance and approval of the President upon the recommendation of
the Department of Foreign Affairs (DFA). The DFA shall also submit to
OCD a report on foreign donations that it has processed.

SECTION 10. Consolidated Reports. The head of the donee-agency
and the agency’s web administrator or his/her equivalent shall be


Yo

responsible for ensuring that the
f quarterly report of all donati

received, whether in cash or in kin lonations

received h or in kind, are posted on the agency’s official

The BTr shall submit to OCD a quartert
3 ; ly report on all amount
deposited under the special account it maintains for all donations

received, including the amount retained by the donee-;
Section 7 of this Act. y the donee-agency under

The Department of Foreign Affairs (DFA) shall likewise submit a
report on all pledges made by foreign governments, bilateral or
multilateral organizations and institutions, private foreign individuals
or groups to the Philippine government for disaster relief, aid, or
rehabilitation to OCD.

The OCD shall submit, either in printed form or by way of electronic
document, to the Department of Budget and Management (DBM), the
House Committee on Appropriations and the Senate Committee on
Finance, a consolidated quarterly report of all submissions made to
OCD under this Act. The Executive Director of the OCD and the
NDRRMC’s web administrator or his/her equivalent shall be
responsible for ensuring that said quarterly reports are likewise posted
on the official website of the NDRRMC.

SECTION 11. Implementing Rules and Regulations. The DBM, OCD,
DOF, DFA, Department of Interior and Local Government (DILG), and
the Commission on Audit (COA) shall promulgate the Implementing
Rules and Regulations (IRR) for the implementation of this Act within
thirty (30) days from its approval.

‘The said IRR shall take effect five (5) days after its publication in a
newspaper of general circulation.

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

Approved,