NINETEENTH CONGRESS OF THE ) 
REPUBLIC OF THE PHILIPPINES ) 
First Regular Session 
)
SENATE
S. No.
290
of lijc !&rfrrrnn>
*22 JUL11 P6 *43
RHCEIVfiO OV:
Introduced by Senator FRANCIS G. ESCUDERO
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
In the aftermath of the extremely destructive super typhoon Yolanda 
(international codename: Haiyan) that struck our country last November 8, 2013, an 
outpouring of support in the form of cash and in-kind donations were directed to the 
Philippines by both local and foreign donors. In response to media reports alleging 
instances of corruption with respect to the utilization and accounting of the donated 
funds, Senator Miriam Defensor-Santiago introduced Proposed Senate Resolution No. 
363 entitled:
RESOLUTION DIRECTING THE PROPER SENATE COMMITTEE TO 
CONDUCT AN INQUIRY, IN AID OF LEGISLATION, ON THE NEED FOR 
TRANSPARENCY AND ACCOUNTABILITY WITH REGARD TO INCOMING 
FOREIGN AND LOCAL AID FOR THE VICTIMS OF SUPER TYPHOON 
YOLANDA
which was referred to tne Committee on Finance.
On February and March 17, 2014, the Committee of Finance conducted a 
hearing on the bills referred to it, including the said resolution. Subsequently, a 
Technical Working Group meeting was conducted by the committee to which resource 
persons from the Department of Foreign Affairs, Department of Budget and 
Management, Department of Finance and Commission on Audit were invited.
From the above-mentioned hearings and TWG meeting, one of the findings was 
the fact that there was no single agency in the government that has possession and 
knowledge of the total amount of local and foreign donations for the victims of Super


Typhoon Yolanda. The Foreign Aid Transparency Hub or FAITH, an online information 
portal created by the national government, captures only the foreign aid pledged and 
received by the county for the victims of Yolanda. It does not include the foreign or 
local donations that were deposited directly to the accounts of various departments 
or agencies, or the foreign or local donations received directly by the affected local 
government units.
The above findings indicated the need to institutionalize, preferably through 
legislation, a mechanism for the monitoring and accounting of all foreign and local 
donations for natural and man-made calamities. In addition, the public clamor for 
transparency and accountability in the utilization of the monetary and non-monetary 
aid received from foreign and local beneficiaries calls for proactive action from the 
Commission on Audit.
In view of the foregoing, the approval of the bill is earnestly sought.
FRANCIS G. ESCUDERCjjj/


NINETEENTH CONGRESS OF THE ) 
REPUBLIC OF THE PHILIPPINES ) 
First Regular Session 
)
SENATE
s. No. 290
|gji| sfenate
*22 JUL11 P6:44
RliC2iVfc0BV;
Introduced by Senator FRANCIS G. ESCUDERO
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 Fiouse of Representatives of the Philippines 
in Congress assembled:
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Section 1. Title. This Act shall be known as the Donation Transparency Acf.
Sec. 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.
Sec. 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.
to:
Sec. 4. Definition of Terms. For purposes of this Act, the following shall refer
(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 cash or 
non-cash aid or grants to the Philippine government for disaster relief, 
aid or rehabilitation.


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(d) "Donee"- refers to departments, bureaus, and offices of the national
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government including constitutional offices, state universities and
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colleges, government-owned or-controlled corporations 
and local
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government units that receive donations from various sources.
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(e) "Donation in Cash" - refer to cash assistance from a donor
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entity/individual to the Philippine government through any of its
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agencies or instrumentalities.
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(f) Donations in kind"- refer to assistance in kind such as but not limited
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to food, clothing, medicine and equipment coming from the donor
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entity/individual to a specific national government agency or local
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government unit for the purpose of disaster relief, recovery and
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rehabilitation efforts.
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Sec. 5. Donations. Departments, bureaus and offices of the National
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Government, including constitutional offices enjoying fiscal autonomy, and state
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universities and colleges may accept donations in cash or in kind from various sources,
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domestic or foreign, for purposes relevant to their respective functions, and which
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shall be used to cover aid, relief and rehabilitation, repair and reconstruction of
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permanent structures affected by natural and man-made calamities. Such donations,
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whether in cash or in kind, shall be deemed automatically appropriated.
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Sec. 6. Utiiization and Treatment of Donations. Donations shall be utilized in
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accordance with the purpose identified by the donor. Donations for a specific purpose,
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as identified by the donor, shall be treated as trust receipts: Provided, That in case
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the donor does not identify a specific project or activity to be funded, such donation
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shall be considered as calamity aid for the use of the Department of Social Welfare
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and Development: Provided, further. That donations intended for program support for
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calamities in general shall be booked as income of the National Government or local
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government unit, as the case may be.
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Sec. 7. Cash Donations. All cash donations shall be deposited under the account
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of the Bureau of Treasury (BTr), except when the donation is made directly to the
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agencies, in which case the donee-agency shall inform the BTr of cash donation upon
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receipt thereof: Provided, That if the donation is made directly to an LGU, the Bureau
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of Local Government Finance (BLGF) shall be informed upon its receipt of the cash
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donation for purposes of consolidating the quarterly reports to be submitted to the
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Office of Civil Defense (OCD), the secretariat of the National Disaster Risk Reduction
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and Management Council (NDRRMC). An official receipt shall be issued by the
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concerned donee-agency or LGU for cash donations received.
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Donations in foreign currency shall be converted to the Philippine Peso at the
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prevailing rate at the time of the receipt of the donation. Donations shall be taken up
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in the books of the BTr as income or trust receipts.


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The amounts received by the donee-agency shall thereafter be deposited to
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the account of the Treasurer of the Philippines, and shall be made available to the
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implementing agency concerned through a Special Budget pursuant to section 35,
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Chapter 5, Book VI of E. 0. No. 292: Provided, That if the donee-agency is an LGU,
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the same shall be deposited to the account of the Local Treasury as a separate special
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account maintained in every provincial, city or municipal treasury and recorded as a
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Trust Fund under the Special Funds pursuant to Section 309 (b) Article I, Chapter II,
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Title V, Book II of the Local Government Code.
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In no case shall the cash donation be used for payment of Personal Services of
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any government unit or any other expenses not related to disaster relief, recovery and
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rehabilitation efforts.
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Sec. 8. Donations in Kind. For donations in kind, an acknowledgement receipt
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shall be issued to the donor by the donee-agency. The value of donated Property,
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Plant and Equipment (PPE) shall be based on the declared value in the Deed of
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Donation or the bill of lading/airway bill/parcel notice and other related documents.
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The fair market value/appraised value shall be used in the absence of declared value.
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The donee-agency shall submit either in printed form or by way of electronic document
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to the OCD, quarterly reports on the receipt of donations in kind: Provided, That the
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LGu shall submit to OCD thru BLGF all donations in kind that they have received:
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Provided, further. That the Bureau of Customs (BOC), which processes all foreign
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donations pursuant to Section 18 of RA 10121, otherwise known as the "Philippine
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Disaster Risk Reduction and Management Act", shall submit a report on the
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conditionally-free importation under this section to the OCD.
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The head of the donee-agency or LGU shall be primarily responsible for the
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accounting and safeguarding of all donated supplies, materials, equipment and relief
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goods against loss and wastage.
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Sec. 9. Foreign Donations. Foreign donations, whether in cash or in kind, from
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foreign governments shall be subject to the prior clearance and approval of the
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President upon the recommendation of the Department of Foreign Affairs (DFA). The
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DFA shall also submit to OCD a report on foreign donations that it has processed.
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Sec. 10. ConsoiidatedReports. The head of the donee-agency and the agency's
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web administrator or his/her equivalent shall be responsible for ensuring that the
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quarterly report of all donations received, whether in cash or in kind, are posted on
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the agency's official website.
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The BTr shall submit to OCD a quarterly report on all amounts deposited under
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the special account it maintains for all donations received, including the amount
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retained by the donee-agency under Section 7 of this Act.


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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.
Sec. 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.
Sec. 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,