Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City

TWENTIETH CONGRESS
First Regular Session

House Bill No. 17 14

Introduced by Rep. ANGELO MARCOS BARBA
24 District, Ilocos Norte

EXPLANATORY NOTE

This Bill reintroduces the previously vetoed bill on the Office of the
Government Corporate Counsel (OGCC), subject to certain revisions to
address the Veto Message dated 22 July 2022 of His Excellency President
Ferdinand R. Marcos, Jr.

Even as the President may have vetoed the OGCC bill passed during the
Eighteenth Congress, he particularly recognizes the need to strengthen the
OGCC given the growth in the number of government corporations in the
recent years coupled with the complexity of their requirements brought on by
current business conditions. The additional complement of lawyers and the
upgrading of existing positions in the OGCC are necessary to strengthen its
organizational structure, improve the service that it provides, and accord its
men and women the privileges and benefits presently enjoyed by their
counterparts in the Judiciary and the Justice Sector which includes the
National Prosecution Service (NPS), the Public Attorney's Office (PAO), and
the Office of the Solicitor General (OSG).

Government corporations have a crucial role in the country’s economic
development. They annually contribute tens of billions to the nation’s coffers
(approximately PhP375 Billion in 2022), and are the indispensable partners of
the National Government in nation building, particularly in the pursuit of
government projects, programs, and initiatives. Notably, the number of
government corporations has greatly increased to seven hundred thirty two
(732) to date.

The OGCC’s vital role in nation building is evident in its stalwart legal
support to its client corporations. The assistance it renders is based on
institutional knowledge and specialization, given the vast experience and
collective wisdom which it has achieved in almost a century of public service
which began in 1935.

However, the evolution and broadening of the scope of activities of
government corporations have resulted in an increase in the volume,
complexity, and importance of the work of the OGCC. ‘Thus, it is necessary to
strengthen the OGCC’s current complement to maintain its effectiveness in


addressing the legal needs of its clients, particularly corporations which do not
have internal legal departments.

The proposed legislative measure shall strengthen the applicable laws
and issuances on the organizational structure of the OGCC, to create new
positions in its hierarchy and augment the OGCC's present complement with
an additional thirty-six (36) lawyer positions, thus:

Position Current Proposed
number of number of
positions positions

Assistant Government Corporate Counsel 10 12
Government Corporate Attorney IV 10 12
Government Corporate Attorney III 14 14
Government Corporate Attorney II y X
Government Corporate Attorney I 4 12
‘Associate | Government Corporate ° 12
Attorney II

‘Associate Government Corporate 0 12
Attorney I

Total number of lawyers 55 on

‘The upgrading of the rank, salary grades, privileges, and benefits of the
OGCC lawyers is designed to keep them at par with the ranks, salary grades,
privileges, and benefits of counterpart positions in the Department of Justice
and its attached agencies, particularly those in the NPS, the PAO, and the
OSG, thus:

LAWYER POSTIIONS IN THE DEPARTMENT OF JUSTICE.

Requir | Present | Proposed | OSG PAO
ed | OGCC | OGCC | Position | Position | Positio
numbe | Position | Position | and and | nand
rof and and Salary | Salary | Salary

years | Salary | Salary | Grade | Grade | Grade
inthe | Grade | Grade

practic
eof law | Executive Republic | Republic | Republi
Order No. | (Proposed | Act 9417 | Act10071 | c Act
878, as Act) (2007) (2010) 9406
amended (2007)

15 Assistant | Assistant | Assistant | Prosecutor | Deputy

Governme | Governm | Solicitor v Chief
nt ent General (Senior Public
Corporate | Corporate Deputy | Attorney’
Counsel | Counsel State, (same
Regional, | salary

Provincial and

or City _| privileg



Prosecutor | as the
counterp|
(SG 30) art
(SG 29) (SG 30) position
Present Proposed (SG 30) in the
Associate NPS)
Regional | Associate | Justice of
Trial Justice of | the Court | Associate
Court | the Court of | of Appeals | Justice of
Judge | Appeals level | the Court
level level of Appeals
level
10 Governme | Governm Senior | Prosecutor | Public
nt ent State IV ___|Attorney
Corporate | Corporate | Solicitor | (Deputy Vv
Attorney | Attorney | General State, (same
IV Iv Regional, | salary
Provincial, | and
or City — privileges
Prosecutor | as the
) counterp
art
position
(SG 29) (SG 29) in the
(SG 28) (SG 29) NPS)
Present | Proposed
Regional | Regional
Metropolit | Regional Trial Trial
an Trial | Trial Court Court Court
Court | Judgelevel | Judge Judge
Judge level
level
5 Governme | Governm State Prosecutor | Public
ot ent Solicitor II IL Attorney
Corporate | Corporate (Senior Vv
Attorney | Attorney Assistant | (same
TL m State, _ salary and|
Regional, |privileges
Provincial | as the
orCity _|counterpal
Prosecutor |rt position]
) in the
(SG 28) NPS)
(SG 28)
(SG 27) (SG 28)



Present | Proposed | Metropolit
an Trial | Metropolit
Metropolita | Court an Trial

nTrial Judge Court

Court level Judge

Judge level level
Governme | Governm | State __| Prosecutor | Public
nt ent | Solicitor I 11 Attorney
Corporate | Corporate Assistant | IIT
Attorney | Attorney State, | (same
I ott Regional, | salary

Provincial | and
or City privileges
Prosecutor | as the

s counterp
(SG 27) art
(SG27)_| position
(sG26) | (SG27) in the
Present | Proposed | Municipal NPS)
Trial | Municipal
Court Trial

Judgein | Court
Cities level | Judge in
Cities level

Governme | Governm | Associate | Prosecutor | Public

nt ent Solicitor I |Attorney
Corporate | Corporate | __III Associate | II
Attorney I| Attorney Provincial | (same
I orCity | salary
Prosecutor | and
s privileges
as the
counterp
art
(SG 25) (SG26) | (SG26) | position
Present | (SG 26) in the
Proposed NPS)
No Associate | Associate Public
position | Governm | Solicitor IT [Attorney 1
ent (same
Corporate isalary and]
Attorney privileges

IL as the



jcounterpal
Irt position]
in the
(SG 25) NPS)
(SG 25)
Proposed
° No Associate | Associate Associate
position | Governm | Solicitor I Public
ent Attorney
Corporate iit
Attorney (same
I |salary and|
privileges
as the
lcounterpa|
Irt position|
(SG 24) in the
NPS)
(SG 23)
Proposed

The budget necessary to implement this proposed legislative measure,
if passed into law, would have minimal to nil impact on the National Budget,
but is expected to have maximum yield.

It is worthy to note that, to date, the Department of Budget and
Management (DBM) allowed the OGCC a total number of eighteen (18)
coterminous lawyer positions (referred to as BBM and PPP lawyers) in
recognition of the need to augment its present complement. In this regard, the
intended creation of additional plantilla positions would be far more
expedient. There would be minimal budgetary requirements in view of the
OGCC’s present structure which already incorporates the expenses for 18
coterminous lawyer positions.

The required budget would improve the efficiency and morale of the
OGCC, effectively result in significant savings for the government, and
minimize deputization and the engagement by client corporations of external
counsel. The OGCC is expected to supervise the legal departments of its client
government corporations, assist its growing number of client corporations
without legal departments, perform necessary corporate tasks, and handle
more cases and concerns of its clients which, due to the lack of adequate
personnel, would previously require the engagement of external counsel.

It is significant to note that the OGCC’s organizational structure and
the number of its personnel have remained unchanged since the 1980's, or for
approximately four decades. Notably, the strengthening of its counterpart
agencies, specifically the PAO, OSG, and NPS, had been approved in the years


2007 and 2010 and implemented through Republic Act (R.A.) 9406 (2007),
R.A. 9417 (2007), and R.A. 10071 (2010), respectively.

Given its growing number of clients and insufficient number of lawyers,
the OGCC was constrained to confirm and ratify its client corporations’
requests for the engagement of external counsel, for additional manpower and
to ensure that its clients’ cases were properly handled. The need to undertake
dispute resolution such as compulsory arbitration, enhance legal risk
management, and improve remedial structures has exponentially grown, to
include actions filed in international fora which require expeditious and
diligent attention. The rigors of arbitration, whether domestic or
international, in this decade alone required additional manpower particularly
given the financial impact of such arbitration cases and the magnitude of their
effect on public welfare.

The OGCC's workforce should, therefore, be augmented to sufficiently
address the developing requirements and legal concerns of the government
corporate sector.

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

ANGEL! COS BARBA


Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City

TWENTIETH CONGRESS
First Regular Session

1714

House Bill No.

Introduced by Rep. ANGELO MARCOS BARBA
2™ District, Ilocos Norte

AN ACT
UPGRADING AND CREATING ADDITIONAL POSITIONS IN
‘THE OFFICE OF THE GOVERNMENT CORPORATE COUNSEL
(OGCC), AMENDING FOR THE PURPOSE EXECUTIVE ORDER Nt
878 DATED MARCH 4, 1983, AS AMENDED BY EXECUTIVE
ORDER NO. 299 DATED JULY 26, 1987

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

Section 1. Section 1 of Executive Order (EO) No. 878, as amended by
EO No. 299, is hereby further amended, as follows:

SECTION 1. The Office of the Government Corporate
Counsel (OGCC) shall be headed by the Government Corporate
Counsel whose rank, SALARY, RETIREMENT AND PENSION
BENEFITS, RIGHTS, emoluments and privileges, shall be the
same as those of the Presiding Justice of the Court of Appeals.
He shall be assisted by a Deputy Government Corporate Counsel
whose rank, SALARY, RETIREMENT AND PENSION
BENEFITS, RIGHTS, emoluments, and privileges shall be the
same as those of an Associate Justice of the Court of Appeals,
and ften-{4e}} TWELVE (12) Assistant Government Corporate
Counsels WITH THE rank, SALARY, RETIREMENT AND
PENSION BENEFITS, RIGHTS, emoluments, and privileges
shell bethe-same-ns-those of [Regi :

i : AN ASSOCIATE JUSTICE OF THE
COURT OF APPEALS. THE SALARY GRADE
CORRESPONDING TO THE POSITION OF THE DEPUTY
GOVERNMENT CORPORATE COUNSEL SHALL BE FOUR (4)
STEPS ABOVE THE SALARY GRADE CORRESPONDING TO
THE POSITION OF AN ASSISTANT GOVERNMENT
CORPORATE COUNSEL.

Here Gerser ment —Corprriie——Comnel —Beprity:



NO PERSON SHALL BE APPOINTED GOVERNMENT
CORPORATE COUNSEL, DEPUTY GOVERNMENT
CORPORATE COUNSEL, OR ASSISTANT GOVERNMENT
CORPORATE COUNSEL UNLESS HE OR SHE IS A
NATURAL-BORN CITIZEN OF THE PHILIPPINES AND HAS
BEEN ENGAGED IN THE PRACTICE OF LAW IN THE
PHILIPPINES FOR AT LEAST FIFTEEN (15) YEARS.

The incumbent Government Corporate Counsel, Deputy
Government Corporate Counsel, and Assistant Government
Corporate Counsels shall be entitled to the RANK, SALARY,
RETIREMENT AND PENSION BENEFITS, rights, emoluments
and privileges vested upon them BY THIS ACT as of the time of
their appointments, AND without need of further appointments.

Sec. 2. Section 4 of EO No. 878, as amended by EO No. 299, is hereby
further amended, as follows:

Section 4. The number, rank, qualifications for
appointment, emoluments and privileges of the other members
of the legal staff of OGCC shall be as follows:

A. TWELVE (12) GOVERNMENT CORPORATE
ATTORNEY IV (GCA IV) POSITIONS. A GCA IV
SHALL HAVE THE RANK, _ SALARY,
RETIREMENT AND PENSION _ BENEFITS,
RIGHTS, EMOLUMENTS, AND PRIVILEGES OF
A JUDGE OF A REGIONAL TRIAL COURT. NO
PERSON SHALL BE APPOINTED AS GCA IV
UNLESS HE OR SHE IS A NATURAL-BORN
CITIZEN OF THE PHILIPPINES AND HAS BEEN
ENGAGED IN THE PRACTICE OF LAW IN THE
PHILIPPINES FOR AT LEAST TEN (10) YEARS;


B, FOURTEEN (14) GOVERNMENT CORPORATE
ATTORNEY III (GCA II) POSITIONS. A GCA III
SHALL HAVE THE RANK, _ SALARY,
RETIREMENT AND PENSION BENEFITS,
RIGHTS, EMOLUMENTS, AND PRIVILEGES OF
A JUDGE OF A METROPOLITAN TRIAL COURT.
NO PERSON SHALL BE APPOINTED GCA III
UNLESS HE OR SHE IS A NATURAL-BORN
CITIZEN OF THE PHILIPPINES AND HAS BEEN
ENGAGED IN THE PRACTICE OF LAW IN THE
PHILIPPINES FOR AT LEAST FIVE (5) YEARS;

C. SEVENTEEN (17) GOVERNMENT CORPORATE
ATTORNEY II (GCA II) POSITIONS. A GCA II
SHALL BE A NATURAL-BORN CITIZEN OF THE
PHILIPPINES AND HAS BEEN ENGAGED IN
THE PRACTICE OF LAW IN THE PHILIPPINES
FOR AT LEAST FOUR (4) YEARS;

D. TWELVE (12) GOVERNMENT CORPORATE
ATTORNEY I (GCA I) POSITIONS. A GCA 1
SHALL BE A NATURAL-BORN CITIZEN OF THE
PHILIPPINES AND HAS BEEN ENGAGED IN
THE PRACTICE OF LAW IN THE PHILIPPINES
FOR AT LEAST THREE (3) YEARS;

fe}-A-SeniorResearch—Attorney—and—five—t5} Research:
Attorneys—whese~annual-eompensation-shall_be-as
Lakh alll ior nc soe aati

E, TWELVE (12) ASSOCIATE GOVERNMENT
CORPORATE ATTORNEY II (AGCA ID)
POSITIONS. AN AGCA Il SHALL BE A
NATURAL-BORN CITIZEN. OF THE
PHILIPPINES AND HAS BEEN ENGAGED IN
THE PRACTICE OF LAW IN THE PHILIPPINES
FOR AT LEAST TWO (2) YEARS; AND


F. TWELVE (12) ASSOCIATE GOVERNMENT
CORPORATE ATTORNEY I (AGCA_ 1)
POSITIONS. AN AGCA I SHALL BE
NATURAL-BORN- CITIZEN OF THE
PHILIPPINES AND A MEMBER OF THE
PHILIPPINE BAR.

THE INCUMBENT MEMBERS OF THE LEGAL STAFF
SHALL BE ENTITLED TO THE RIGHTS, SALARY, BENEFITS
AND PRIVILEGES VESTED UPON THEM BY THIS ACT AS OF
THE TIME OF THEIR APPOINTMENT WITHOUT NEED OF
FURTHER APPOINTMENT.

Sec. 3. Section 5 of EO No. 878, as amended by EO No. 299, is hereby

further amended, as follows:

SECTION 5. ORGANIZATIONAL STRUCTURE. -THE
GOVERNMENT CORPORATE COUNSEL HAS THE
AUTHORITY TO DISCHARGE THE DUTIES AND
FUNCTIONS OF THE OGCC, AND SHALL HAVE CONTROL
AND SUPERVISION OVER THE OGCC AND ITS
CONSTITUENT UNITS. THE GOVERNMENT CORPORATE
COUNSEL SHALL PROMULGATE THE NECESSARY RULES
AND REGULATIONS FOR THE IMPLEMENTATION OF THE
PROVISIONS OF THIS ACT. UNLESS OTHERWISE
DETERMINED BY THE GOVERNMENT CORPORATE
COUNSEL, THE LEGAL STAFF SHALL BE DIVIDED INTO
TEAMS, EACH TO BE HEADED BY AN AGCC.


THE OGCC SHALL BE SUPPORTED BY SUCH
NUMBER OF NON-LEGAL PERSONNEL NECESSARY AND
COMMENSURATE TO THE OGCC’S WORK REQUIREMENTS,
AS RECOMMENDED BY THE OGCC AND APPROVED BY THE
DEPARTMENT OF BUDGET AND MANAGEMENT.
NON-LEGAL PERSONNEL SHALL HAVE THE SAME
SALARIES AND BENEFITS AS THOSE OF THEIR
COUNTERPARTS IN THE OFFICE OF THE SOLICITOR
GENERAL.

THE ADMINISTRATIVE STRUCTURE OF THE OGCC
SHALL BE COMPOSED OF ITS SECRETARIAL AND LEGAL
SUPPORT SERVICE; TRAINING, RESEARCH, AND
PUBLICATION SERVICE; FINANCE AND ACCOUNTING
SERVICE; HUMAN RESOURCE AND MANAGEMENT
SERVICE; CASE AND RECORDS MANAGEMENT SERVICE;
LIBRARY MANAGEMENT AND INFORMATION
TECHNOLOGY SERVICE; CORPORATE PLANNING SERVICE;
AND PROPERTY AND SUPPLY SERVICE. THE LEGAL AND
NON-LEGAL PERSONNEL OF THE OGCC OCCUPYING THE
POSITIONS AFFECTED BY THE CHANGES EMBODIED IN
THIS ACT AT THE TIME OF ITS APPROVAL SHALL
THEREAFTER OCCUPY AND DISCHARGE THE DUTIES AND
FUNCTIONS OF THE UPGRADED POSITIONS AND RECEIVE
THE CORRESPONDING SALARY, BENEFITS,
EMOLUMENTS, AND PRIVILEGES WITHOUT NECESSITY
OF NEW APPOINTMENTS.

See. 4. Section 7 of EO No. 878, as amended by EO No. 299, is hereby
further amended as follows:

SECTION = [Hop nelitinn: to-tsepnepictinn tortie HE

APPROPRIATIONS. - THE AMOUNT NEEDED TO IMPLEMENT
THE UPGRADING OF POSITIONS AND SALARIES, OFFICE
RIGHT-SIZING, PHYSICAL EXPANSION, AND PAYMENT OF
RETIREMENT BENEFITS, PENSION, PRIVILEGES, AND OTHER
EMOLUMENTS PROVIDED IN THIS ACT SHALL BE TAKEN FROM
THE FUNDS AND BUDGET OF THE OGCC UNDER THE ANNUAL
GENERAL APPROPRIATIONS ACT.

Sec. 5. Repealing Clause. ~ All laws, presidential decrees, executive
orders, presidential proclamations, issuances, rules and regulations, or parts
thereof that are inconsistent with the provisions of this Act are hereby
repealed and/or modified accordingly.

Sec. 6. Effectivity. - This Act shall take effect after fifteen (15) days
following its complete publication in the Official Gazette or in a newspaper of
general circulation.


Approved,