Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City

15™ CONGRESS
First Regular Session

HOUSE BILL NO._2

Introduced by REP. SALVADOR H. ESCUDERO I

EXPLANATORY NOTE

Section 27, article I] of the 1987 Constitution provides that as a State Policy, "The
State shall maintain honesty and integrity in public service and take positive and effective
measure against graft and corruption.”

Furthermore, Section 1, Article XI of the 1987 Constitution provides that, "Public
office is a public trust. Public officers and employees must at all times be accountable to the
people, serve them with utmost responsibility, integrity, loyalty, and efficiency, act with
patriotism and justice, and lead modest lives.’

It is the intent of this bill to encourage citizens to stand up and report alleged
violations of law, improper use of governmental office, gross waste of funds, or any other
abuse or gross neglect of duty on the part of an agency, public officer or employee, and
private entity. Furthermore by protecting citizens who disclose wrongdoing from retaliatory
acts, we hereby strengthen accountability and reduce corruption in the public and private
sectors.

Hence, in the best interest of the Republic, the immediate approval of this bill is
urgently sought.

oA
SALVADOR H. ESCUDERO III
Representative
1* District, Sorsogon


Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City
15™ CONGRESS
First Regular Session

29
HOUSE BILL NO. © *

Introduced by REP. SALVADOR H. ESCUDERO IL

AN ACT
PROVIDING FOR PROTECTION, SECURITY AND BENEFITS OF
WHISTLEBLOWERS

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

SECTION |. Short Title. - This Act shall be known as the “Whistleblower Protection
Act.”

SEC. 2. Declaration of Policy. ~ Public Office is a public trust. It is the policy of the
State to promote and ensure full accountability in the conduct of its officers and employees,
and exact full retribution from those who shall engage in graft and corruption practices.
‘Toward this end, the State shall:

(A) Maintain honest and high standards of integrity in the public service;

(B)Safeguard the national interest through the prosecution of corrupt and erring
public officials and employees; and

(C) Encourage and facilitate the disclosure of corrupt conduct and practices in the
public service by providing benefits provided in existing laws.

SEC. 3. Definitions. - As used in this Act:

(A) “Employer” shall mean any individual, partnership, association, corporation or
entity, including the government, or any person or group of persons who shall directly or
indirectly for or on behalf of said individual, partnership, association, corporation or entity,
employs an employee as defined in this Act.

(B) “Employee” shall mean any person who is made to [suffer] work by, or who
renders service for, an employer. The term shall include public officers and employees as
defined in this Act as well as any person considered an “employee” under the Labor Code.

(C) “Public officer” any person holding any public office in the Government of the
Republic of the Philippines by virtue of an appointment, election or contract.


(D) “Government” includes the National Government, and any of its subdivisions,
agencies or instrumentalities, including government-owned and controlled corporations and
their subsidiaries, and the Local Government Units.

(E) “Retaliatory action” shall refer to any negative or obstructive responses, reactions
or reprisals to the disclosure made under this Act aimed at, pertaining to, or against a
whistleblower or an informant or any of the members of his/her family and relatives up to the
fourth civil degree of consanguinity or affinity. Said actions shall include criminal, civil or
administrative proceedings commenced or pursued against said whistleblower or any of the
members of his family or relatives up to the second degree of consanguinity or affinity as
well as retaliatory action in the workplace.

(F) “Retaliatory action in workplace” shall mean any discriminatory conduct or
policies which affect promotion or job assignment including undue negative performance
appraisal, close monitoring by supervisors, unwarranted criticisms or avoidance by co-
employees, blacklisting from other job opportunities or prejudicial transfers by reason of a
disclosure made under this Act.

(G) “Acts constituting graft and corruption” shall mean any conduct, act or omission
of public officers and employees solely, or in cooperation, conspiracy with or with the
assistance of, regardless of the manner, private persons which is covered by, or constitute as a
violation of, among others:

(1) Presidential Decree No. 46 otherwise known as “Making it punishable for
Public Officials and Employees to receive, and for Private persons to give, gifts on
any occasion, including Christmas;”

(2) Republic Act No. 3019 otherwise known as “Anti-Graft and Corrupt
Practices Act;”

3) Republic Act No. 6713 otherwise known as “An Act Establishing a Code
of Conduct and Ethical Standards for Public Officials and Employ

(A) Republic Act No. 7080 otherwise known as the “Anti-Plunder Law;”

(5) Titles II and VII of Book Two of the Revised Penal Code on Crimes
Against the Fundamental Laws of the State and Crimes Committed by Public
Officers; and

(6) All other laws which penalize or sanction any act or omission of a public
officer or employee.

(H) “Whistleblower” shall refer to an informant or any person who has personal
knowledge or access to data of any information or event involving acts constituting graft and
corruption and chooses to voluntarily disclose the same.

(1) “Qualified Whistleblower” shall mean a whistleblower or informant qualified and
admitted into the Whistleblower’s Program of the Office of the Ombudsman in accordance
with this Act and its implementing rules and regulations.

SEC. 4. Coverage. — Notwithstanding the provisions of law on prescription of crimes,
this Act shall cover all acts constituting graft and corruption irrespective of the time of
commission.


SEC. 5. Admission to the Program. — Whistieblowers or informants, whether from the
public or private sector, shall be entitled to the benefits under this Act, provided, that all the
following requisites concur:

(a) The disclosure is voluntary, in writing and under oath;

(b) The disclosure relates to acts constituting graft and corruption; and

(©) The information to be disclosed is admissible in evidence and that it is sufficient
to sustain a finding of probable cause.

SEC. 6. Necessity of Testimony. — The testimony of a whistleblower in court shall not
be necessary for the entitlement or enjoyment of the benefits of this Act. In the event that the
whistleblower’s testimony is required as found by the Office of the Ombudsman to be
necessary and indispensable for a successful prosecution of a case, he shall be entitled to the
additional benefits and protection under R.A. No. 6891 otherwise known as the Witness
Protection Program.

SEC. 7. Credibility of a Whistleblower/Informant. - In all cases, the fact of the
entitlement of the qualified whistleblower or informant to the protection and benefits
provided in this Act shall not be admissible in evidence to diminish or affect his credibility.

SEC. 8. Memorandum of Agreement with the Person to be Protected. ~ Before @
person is provided protection as a whistleblower or informant for the State, he shall first
execute a Memorandum of Agreement which shall set forth his/her responsibilities including
the following:

(A)To provide information to and testify before all appropriate law enforcement
officials or agencies conceming any appropriate proceeding in connection with
or arising from the activities involved in the subject offense/s;

(B) To avoid a commission of a crime;

(C)To take all necessary precautions t0 avoid detection by others of the facts
concerning the protection provided him under this Act;

(D) To cooperate with respect to all reasonable requests of officers and employees
of the government who are providing hinvher protection under this Act; and

(E) To regularly inform the appropriate program official of his current activities
and address.

SEC. 9. Breach of the Memorandum of Agreement. ~ Substantial breach of the
Memorandum of Agreement shall be a ground for the termination of the protection provided
under this Act; Provided, however, that before terminating the same, the Ombudsman shall
send notice to a whistleblower or informant concerned, stating therein the reason for such
termination. Reasonable time shall be afforded a whistleblower or informant 10 take
appropriate and necessary for his/her protection and security in view thereof.

SEC. 10. Confidentiality. - Except insofar as allowed by this Act, during and after
the disclosure, and throughout and after any proceeding taken thereafter, a whistleblower or
an informant is entitled to absolute confidentiality as to:

(A)His identity;
(B) The subject matter of his disclosure; and

(C) The person to whom such disclosure was made.


There shall be no such confidentiality in his/her identity if a whistleblower or an
informant makes a public disclosure of acts constituting graft and corruption unless,
notwithstanding such public disclosure, he has taken means and measures obviously intended
to preserve his anonymity.

SEC. 11. Confidential Information. — No person to whom a disclosure has been made
or referred shall divulge any information that may identify or tend to identify a whistleblower
or informant or reveal the subject matter of such disclosure, except only as to the following
circumstances:

(A)The whistleblower consents in writing prior to a disclosure of an information;

(B) The disclosure is indispensable and essential as determined by the office of the
Ombudsman, having regard to the necessary proceedings to be taken after the
disclosure; or

(C) The disclosure or referral is made pursuant to an obligation under this Act. The
prohibition on disclosure under this Section shall apply to any person who has
become privy to any confidential information, whether officially or by other
means.

SEC. 12. Violation of Confidentiality. - Any person OR INDIVIDUAL who violates
the protection of confidentiality of a protected disclosure under Sections 10, 11, 12 and 15 of
this Act, shall suffer the penalty of not more than one (I) years but not less than six (6)
‘months with an accessory penalty of temporary absolute disqualification for public office, in
case of a public officer or employee, and shall be civilly liable to indemnify the
whistleblower or informant in such amount of damages as may be awarded and deemed
reasonable by the court.

The proceedings herein shall be independent of any action that an aggrieved person
may take before the Civil Service Commission or the Department of Labor and Employment
for unfair or discriminatory practices, back wages, or other labor disputes, or before other
quasi-judicial agencies that may or may not have arisen from a disclosure, or a believed or
suspected disclosure.

SEC. 13. No Breach of Duty of Confidentiality. ~ An informant who has made a
disclosure under this Act on whom a provision of law, regulation, issuance, practice or other
convention, imposes upon him/her a duty to maintain confidentiality with respect to any
information disclosed, is considered not to have committed a breach thereof.

SEC. 14. Defense of Privileged Communication. — A whistleblower, informant or any
person who has made a disclosure under this Act shall have, as defense in any other inquiry
or proceeding, the absolute privilege with respect to the subject matter of his/her disclosure or
information given to the proper authorities

SEC. 15. False and Misleading Disclosures. - Any person OR INDIVIDUAL who
deliberately and voluntarily gives false or misleading information in connection with acts
constituting graft and corruption under this Act shall, in addition to the penalties provided in
other laws, be guilty of an offense and shall suffer the penalty of imprisonment of not more
not more than two (2) years and shall also suffer the penalty of perpetual absolute
disqualification from holding public office, in case of a public officer or employee, without
prejudice to other criminal and civil liability such person or individual may incur under
existing laws.


SEC. 16. Protection against Disciplinary Action or Reprisals. ~ A whistleblower,
informant, or a person who has made or is believed or suspected to have made a disclosure
under this Act is not liable to disciplinary action for making said disclosure.

Prohibited acts under this section include retaliatory action in a workplace or
prejudicial conduct towards a whistleblower or informant, such as: discriminatory actions
behind policies and procedures, reprimand, punitive transfers, unwarranted referral to a
psychiatrist or counselor, and undue poor performance reviews. Other prejudicial conducts
include obstruction of an investigation, withdrawal of essential resources, undue reports and
the attachment of unfair personnel file notes.

To this end, any employer who has discourage and impose sanctions or reprisals
based on workplace interactions, which shall include workplace ostracism, questions and
attacks on motives, accusations of disloyalty and dysfunction, public humiliation, and the
denial of work or promotion, or who encourages, causes or does retaliatory action or reprisal
against a whistleblower, informant, or anyone believed or suspected to be one shall be liable
for an offense defined under this Act.

‘Any employee who refuses to follow orders of employers that would cause them to
violate any provision of this Act shall likewise be protected from reprisals and retaliatory
action in the workplace.

For purposes of this protection, an applicant for employment shall be deemed an
employee and entitled to such protection.

Provided however, that an employer of a whistleblower or informant shall be notified
through a certification issued by the Office of the Ombudsman, within a period of thirty (30)
days, from the date when the whistleblower or informant last reported for work. Provided
further that an employer shall have the option to remove said whistleblower or informant
from employment after securing a clearance from the Office of the Ombudsman and the
Department of Labor and Employment in case of a prolonged absence due to transfer or
permanent relocation under this Act or R.A. No. 6891.

SEC. 17. Protection against other Actions. — A. whistleblower, informant or any
person who has made a disclosure under this Act shall not be subject to any liability whether
administrative, civil, criminal or other proceedings for making such a disclosure or acts in
relation thereto. No action, claim or demand may be taken against a whistleblower or
informant for making such disclosure, nor any evidence presented shall be used against
him/her in court.

This protection shall also operate as immunity in favor of a whistleblower or
informant against any action or proceeding taken against him/her by any person subject of a
disclosure, by reason thereof and acts in relation to subject of disclosure.

SEC. 18. Discriminatory Hiring. - Any individual, firm, corporation, office or
employer who shall deny a qualified applicant for employment, or who shall reject his
application for employment solely on the ground that the applicant is or will be a
whistleblower or informant, shall be guilty of an offense and shall suffer the penalty of not
more than six (6) months imprisonment with the accessory penalty of suspension of the right
to hold public office, in case of a public officer or employee, and shall be civilly liable to
indemnify the whistleblower or informant of damages. if there be any, and as may be
awarded by the court.

SEC. 19. Retaliatory Action in the Workplace. ~ Any person or individual who shall
commit any retaliatory act in a workplace as defined under this Act, against an employee who
is a whistleblower or informant, or believed or suspected to be one, shall be guilty of an


offense and shall suffer the penalty of not more than six (6) months imprisonment with the
accessory penalty of suspension of the right to hold public office, in case of a public officer
or employee, and shall be civilly liable to indemnify a whistleblower in case damages are
incurred and as may be awarded by the court.

Toward this end, the aggrieved whistleblower shall be entitled to the provisional
remedy of injunction against any retaliatory action in the workplace, prejudicial conduct or
discriminatory treatment by reason of the said whistleblower's intended or actual disclosure.

The proceedings herein shall be independent of any action that an aggrieved person
may take before the Civil Service Commission or the Department of Labor and Employment
for unfair discriminatory practices, back wages, or other labor disputes, or before other quasi-
judicial agencies that may or may not have arisen from a disclosure, or a believed or
suspected disclosure.

SEC. 20. Penalty for Retaliatory Acts against a Whistleblower. ~ Any person who
commits any of the retaliatory acts as defined in this Act against a qualified whistleblower or
informant and/or hinders, delays, prevents or dissuades said whistleblower or informant from:

(A) Attending, assisting or testifying before any investigating agency or quasi-
Judicial body or judicial;

(B) Reporting to a law enforcement officer or judge the commission or possible
commission of an offense or a violation of conditions of probation, parole, or
release pending judicial proceedings;

(C) Seeking the arrest of another person in connection with the offen:

(D) Causing a criminal prosecution, or a proceeding for the revocation of a parole
or probation; or

(E) Performing and enjoying the rights and benefits under this Act or attempt to do
so shall be fined not more than One Hundred Thousand Pesos (Php
100,000.00) or suffer imprisonment of or not less than six (6) months but not
more than six (6) years or both at the discretion of a court and shall also suffer
the penalty of perpetual disqualification from holding public office in case of a
public officer or employee.

SEC. 21. Security and Protection of a Whistleblower/Informant. ~ When determined
to be necessary and appropriate of the Office of the Ombudsman, a whistleblower or
informant, even if the disclosure is made in confidence, shall be entitled to personal security.
Should, at anytime, the identity of the informant be revealed, or his anonymity compromised,
the whistleblower or informant shall, in addition to the other benefits under this Act, and
when warranted, be entitled to the benefits of R.A. No. 6891.

SEC. 22. Financial Rewards for Whistleblower. - The whistleblower shall be entitled
to a corresponding monetary reward in accordance with the provision of this Act and its
implementing rules and reguiations.

The informant shall receive an amount in accordance with the following schedule:

| SALARY GRADE OF MOST SENIOR | FINANCIAL REWARD OF QUALIFIED

RESPONDENT WHISTLEBLOWER/INFORMANT
t
J 33 5,000,000

L
32 4,000,000



31 3,000,000

30 2,300,000
29 2,000,000
28 i 1,500,000
27 1,000,000
26 900,000

24-25 800,000

22-23 700,000

20-21 600,000

18-19 300,000

16-17 400,000

14-15 300,000

12-13 — 200,000

10-11 100,000
39 75,000
Py 30,000

Upon being qualified as a whistleblower or informant and admitted to the program by
the Office of the Ombudsman, fifty percent (30%) of the reward shall be given to the
qualified whistleblower. The remaining fifty percent (50%) shall be given prior to the filing
of the case in a proper court.

For cases susceptible to pecuniary estimation, such as plunder, forfeiture of ill-gotten
wealth, bribery, malversation and damage or inquiry to government, the whistleblower shall
be entitled to an additional reward of ten percent (10%) of the amount recovered by final
judgment.

During the pendency of the case, however, a whistleblower shall be advanced the
amount equivalent to not less than twenty-five (25%) of the additional reward of the total
award due consistent with the nature of the case and the amount involved and deemed
recoverable, This shall be given in accordance with this Act’s implementing rules and
regulations.

SEC. 23. Abstract. — All government agencies, offices, bureaus and local government
units, including government owned or controlled corporations, whether or not with original
charters, shall conspicuously display an abstract of this Act and the rights and protections of
whistleblowers, including the obligations of employers under this Act. Such abstract shall be
provided in the implementing rules and regulations.

All government agencies, offices, bureaus and local government units, including
‘government owned and controlled corporations, whether or not with original charters, shall
likewise put in place internal procedures for dealing with whistleblowers or informants,



consistent with the provisions of this Act and its implementing rules and regulations. S:
internal procedure shall be widely disseminated to all employees.

id

Alll other employers, specifically those in the private sector, shall also conspicuously
display notices of their employees’ protections and their obligations under this Act and its
implementing rules and regulations.

SEC. 24. Failure of an Employer to Post Abstract - The failure to post an Abstract or
internal procedures as required under Section 5 of this Act shall constitute an offense and
shall be penalized with a fine in the amount of One Hundred Thousand Pesos (PIO0.
000.00) for the first offense. Said amount shall be doubled for every succeeding offense’s.

SEC. 25. Failure to Act or Report to the Office of the Ombudsman. - Any person
under obligation to report a disclosure under this Act to the Office of the Ombudsman, who
fails to do so within the period of two (2) months, or who fails to act thereon or cause an
investigation thereof, shall be guilty of an offense and shall suffer the penalty of not more
than one (1) month imprisonment, and/or a fine amounting to not more than Fifty Thousand
Pesos (Php 50,000.00) without prejudice to any other liability that may be imposed upon such
person under existing laws.

SEC. 26. Confidentiality of the Proceedings. ~ All proceedings involving application
and/or enjoyment of the benefits under this Act, under the Office of the Ombudsman,
including any action taken thereon, shall be confidential in nature. No information or
documents given or submitted in support thereof shall be released except upon written order
of the Office of the Ombudsman, and provided such disclosure shall not endanger the life of a
qualified whistleblower.

SEC. 27. Powers and Functions of the Ombudsman. - In addition to its powers and
functions under existing laws, the Office of the Ombudsman shall have the following powers
and functions:

(a) Supervise, monitor and coordinate all efforts relative to the implementation and
enforcement of the provisions of this Act;

(b) Investigate all disclosures made under this Act and prosecute the same when
warranted;

(©) Evaluate the qualification of whistleblowers for coverage within this Act, and
make the appropriate decision on their entitlement to the benefits extended herein;

(d) Undertake, in coordination and cooperation with the private and public sectors, an
information campaign to educate the public on the provisions and benefits of this
Act;

(e) Develop plans and implement programs to further encourage whistleblowers on
acts constituting graft and corruption with a view to effective deterrence and/or
prosecution;

() Control and administer, consistent with the provisions and purpose of this Act, the
protection and benefits of whistleblowers;

(g) Call upon, or deputize any department, bureau, office or any other government
agency or public official to assist in the effective implementation and enforcement
of this Act; and

(h) Grant immunity in accordance with the provisions of this Act and its
implementing rules and regulation.


SEC. 28. Implementing Rules and Regulations. -The Office of the Ombudsman shall
promulgate such rules and regulations as maybe necessary to effectively implement the
provisions of this Act. Said implementing rules and regulations shall be published in at least
‘wo (2) newspapers of general circulation.

SEC. 29. Funding. -The amount One Hundred Million Pesos (Php100,000,000.00) is
hereby authorized to be appropriated out of any funds in the National Treasury not otherwise
allocated to carry into effect the purpose of this Act.

Other funding schemes or sources that may be authorized under existing laws shall be
allowed in furtherance hereof.

SEC. 30. Separability Clause. - \f any provision or part hereof, is held invalid or
unconstitutional, the remainder of the law or the provisions not otherwise affected thereby

shall remain valid and subsisting.
SEC. 31. Repealing Clause. - Any law, presidential decree or issuance, executive

order, letter of instruction, administrative order, rule or regulation contrary to or inconsistent
with, the provisions of this Act is hereby repealed, modified, or amended accordingly,

SEC. 32. Effectivity Clause. - This Act shall take effect fifteen (15) days after its
publication in the Official Gazette or at least two (2) newspapers of general circulation.

Approved,