, 
• 
SIXTEENTH CONGRESS OF THE REPUBLIC 
OF THE PHILIPPINES 
) 
) 
) 
First Regular Session 
SENATE 
S. No. 1880 
Introduced by Senator Miriam Defensor Santiago 
EXPLANATORY NOTE 
'" 
I " 
This bill is an adaptation of the US False Claims Act that seeks to combat financial fraud 
perpetrated against the government by individuals and companies. 
In the United States, the False Claims Act has' proven to be one of the most effective tools 
in fighting all types of financial fraud perpetrated against the government. It contained qui tam 
provisions that allow private citizens to sue, on the government's behalf, companies and 
individuals that are defrauding the governmen~. Qui tam is short for a Latin phrase, "qui tam pro 
domino I'ege quam pro se ipso in hac parte sequitur," which roughly means, "he who brings an 
action for the king as well as for himself." 
The qui tam provisions have been the key to the law's success. Many people who file qui 
tam lawsuits (called the "relators") are employees or former employees of companies that 
commit fraud, but anyone who knows of an instance where the government has paid false claims 
can file a qui tam lawsuit. That could be, for example, a competitor, a subcontractor, or even a 
patient. 
The whistleblower does not need to have personal knowledge of the fraud to file a False 
, 
Claims Act case. The lawsuit can be based on information the relator learned from a friend, a 
relative, a competitor, etc. As long as the individual is not publicly disclosed and the government 
• has not already sued the individual or company for the fraud, the relator may bring a qui tam 
lawsuit. 
The False Claims Act has encouraged a number of individuals to step forward and report 
fraud because it gives whistleblowers pecuniary incentives. From 1986 to 2004, the US 
government has recovered more than $3.5 billion as a result of qui tam lawsuits. 
1 


This bill also seeks to give whistleblowers a share of the recoveries that result from qui 
tam lawsuits to give people a 'strong incentive to' step forward and take the personal and 
professional risks involved in pursuing a false claim lawsuit; hence, reducing fraud perpetrated 
against the government.' 
.' Ltw,-- 4 ~ . .4~ ,O,~ 
#' MIRIAM DE~NSOR <tANTIfGO 
• 
• This bill was originally filed during the Thirteenth Congress. 
2 


" 
":~l 
r:t'} )" \l~' :, 
SIXTEENTH CONGRESS OF THE REPUBLIC 
OF THE PHILIPPINES. 
) 
) 
) 
dr.I'!"\, I,f \11:> ",,"·~r!:H\t 
First Regular Session 
"1 "1'1 7 il 
L-, 
u ..
..... ' 
SENATE 
S. No. 1880 
Introduced by Senator Miriam Defensor Santiago 
I 
AN ACT 
2 
TO COMBAT FINANCIAL FRAUD PERPETRATED AGAINST THE GOVERNMENT 
• 
3 
4 
6 
7 
Be it enacted by the Senate and 'the House of Representatives of the Philippines in 
Congress assembled: 
SECTION I. Short Title. - This Act shall be known as the "False Claims Act." 
SECTION 2. Declaration of Policy. - It is hereby declared to be the policy of the State to 
g"ive priority to the enactment llild enforcement of stronger measures to combat financial fraud 
perpetrated against the government by individuals and companies. 
SECTION 3. False Claims. - (I) Liab!lity for certain acts - Any person who-
8 
(A) 
knowingly presents, or causes to be presented, to an officer or employee of the 
I 
9 
10 
II 
12 
13 
14 
15 
16 
17 
• 18 • 
19 
20 
government or a member of the Armed Forces of the Philippines a false or 
fraudulent claim for payment or approval; 
(B) 
knowingly makes, uses, or causes to be made or used, a false record or statement 
to get a false or fraudulent claim paid or approved by the government; 
(C) 
conspires to defraud the government by getting a false or fraudulent claim 
allowed or paid; 
(D) 
has possession, custody, or control of property or money used, or to be used, by 
, 
the government and, intending to defraud the government, willfully conceals the 
property, delivers, or causes to he delivered, less property than the amount for 
which the person receives a certificate or receipt; 
(E) 
authorizes to make or deliver a document certifying receipt of property used, or to 
be used, by the government and, intending to defraud the government, makes or 
I 
P 3 :25 


. , 
• 
delivers the receipt without completely knowing that the information on the 
2 
receipt is true; 
3 
(F) 
knowingly buys, or receives as a pledge of an obligation or debt, public property 
4 
from an officer or employee of the government, or a member of the Armed 
Forces, who may not lawfully sell or pledge the property; or 
6 
(0) 
knowingly makes, uses, or causes to be made or used, a fal,se record or statement 
7 
to conceal, avoid, or decrease an obligation to payor transmit money or property 
8 
to the government, is liable to the government for a civil penalty of not less than 
.9 
Two Hundred Thousand Pesos (P200,000.00) but not more than Four Hundred 
10 
Thousand Pesos (P400,000.00), plus three times the amount of damages which the 
11 
government sustains because of the act of that person, except that if the court 
12 
finds that-
13 
(i) 
the person committing the violation of this Act furnished officials of the 
14 
government responsible for investigating false claims violations with all 
15 
information known to such person about the violation within thirty (30) 
16 
days ilfter the date on which the defendant first obtained the information; 
17 
(ii) 
such person fully cooperated with any government investigation of such 
18 
violation; and 
'19 • 
(iii) 
at the time such person furnished the government with the information 
20 
about the violation, no criminal prosecution, civil action, or administrative 
21 
action had commenced under this Act with respect to such violation, and 
22 
the person did not have actual knowledge of the existence of an 
23 
investigation into such violation; the court may assess not less than two 
times the amount or· damages· which the government sustains because of 
25 
the act of the person. A person violating this section shall also be liable to 
26 
the government for the costs of a civil action brought to recover any such 
27 
penalty or damages. 
28 
(2) 
Knowing and Knowingly Defined - For purposes or this Act, the terms "knowing" 
• 
29' 
and "knowingly" mean that a person, with respect to information -
2 


(A) 
has actual knowledge of the information; 
2 
(8) 
acts in deliberate ignorance of the truth or falsity of the information; or 
3 
(C) 
acts in reckless disregard of the truth or falsity of the information, and no proof of 
4 
specific intent to defraud is required. 
5 
(3) 
Claim Oefin~d - For purposes of this section, "claim" includes any request or 
6 
demand, whether under a contract or otherwise, for money or property which is made to a 
7 
contractor, grantee, or other recipient for any portion of the money or property which is 
8 
requested or demanded, or 'if the government will reimburse such contractor, grantee, or other 
, 
9 
recipient for any portion of the money or property which is requested or demanded. 
10 
(4) 
Exclusion - This section does not apply to claims, records, or statements made 
. 
. 
II 
under the National Internal Revenue Code .. 
12 
SECTION 4. Civil Actionsfor False Claims. -
13 
(1) 
Responsibilities of the Solicitor General - The Solicitor General shall investigate a 
14 
violation under Section 3. If the Solicitor General finds that a person has violated or is violating 
. 
. 
1'5 
Section 3, he may bring a civil action under this section against that person. 
16 
(2) 
Actions by Private Persons - (A) A person may bring a civil action for a violation 
17 
of section 3 for the person and for the government. The action shall be brought in the name of the 
18 
government. The action may be dismissed only if the court and the Solicitor General give written 
.19 
consent to the dismissal and their reasons for consenting. 
20 
(8) 
A copy of the complaint and written disclosure or substantially all material 
21 
evidence and information the person possesses shall be served on the govermnent 
22 
pursuant to the pertinent provisions of the Rules of Court on Civil Procedure. The 
23 
complaint shall 'remain under seal for at least sixty (60) days and shall not be 
24 
served on the defendant until the court so orders. The government may elect to 
25 
intervene and proceed with the action within sixty (60) days after it receives both 
26 
the complaitlt and the material evidence and information. 
27 
(C) 
The government may, for good cause shown, move the court for extensions of the 
28 
time during which the complaint remains under seal. Any such motions may be 
3 


supported by affidavits. The defendant shall not be required to respond to any 
.2 
complaint filed under this section until twenty (20) days after the complaint is 
3 
unsealed and served upon the defendant. 
4 
(D) 
Before the expiration of the sixty (60) day period, the government shall-
5 
(i) 
proceed with the action, in which case the action shall be conducted by the 
6 
government; or 
7 
(ii) 
notifY the court that it declines to take over the action, in which case the 
8 
person bringing the action shall have the right to conduct the action 
9 
(E) 
When a person brings an action under this section, no person other than the 
10 
government may intervene or bring a related action on the facts underlying the 
11 
pending action. 
12 t 
(3) 
Rights of the Parties to Qui Tam Actions - (A) If the government proceeds with 
13 
the action, it shall have the primary responsibility for prosecuting the action, and shall not be 
14 
bound by an act of the person bringing the action. Such person shall have the right to continue as 
15 
a party to the action, subject to the limitations set forth in paragraph (13). 
16 
(B) (i) The govemment may dismiss the action, . notwithstanding the objections of the 
, 
. 
. 
17 
person initiating the action, if the person has been notified by the government of 
18 
the filing of the motion and the court bas provided the person with an opportunity 
19 
for a hearing, on the motion. 
, 
20 
(ii) 
The government may settle the action with the defendant, notwithstanding 
21 
the objections of the person initiating the action, if the court determines, 
• 
• 
22 
after hearing, that th~ proposed settlement is fair, adequate, and reasonable 
23 
under all the circumstances. 
24 
(iii) 
Upon showing by the government that unrestricted participation during the 
25 
course of the litigation by the person initiating the action would interfere 
26 
with or unduly delay the government's prosecution of the case, or would 
27 
be repetitious; irrelevant, oi' for purposes of harassment, the court may, in 
28 
its discretion, impose limitations on tile person's participation, such as -
29 
(a) 
limiting the number of witnesses the person may call; 
4 


(b) 
limiting the length of the testimony of such witnesses; 
2 
(c) 
limiting the person's cross-examination of the witnesses; or 
3 
(d) 
otherwise limiting the participation by the person in litigation. 
4 
(iv) 
Upon a showing by the defendant that unrestricted participation during the 
5 
course of the litigation by the person initiating the action would be for 
6 
purposes of harassment or would cause the defendant undue burden or 
7 
unnecessary expense, the court may limit the participation by the person in 
• 
8 
the litigation. 
9 
(e) 
If the government elects not to proceed with the action, the person who initiated 
10 
the action shall have the right to conduct the action. If the government so requests, 
11 
it shaH be served with copies' or" all pleadings filed in the action and shall be 
12 
supplied with copies of all deposition transcripts (at the government's expense). 
13 
• 
When a person proceeds with the action, the court, without limiting the status and 
• 
14 
rights of the person initiating the action, may nevertheless permit the government 
15 
to intervene at a later date upon a showing of good cause. 
16 
(D) 
Whether or not the government proceeds with the action, upon a showing by the 
17 
government that celiain actions of discovery by the person initiating the action 
18 
would interfere with the government's investigation or prosecution of a criminal 
19 
or civil matter arising out of the same facts, the court may stay such discovery for 
20 
a period of not more than sixty (60) days. The court may extend the 60-day period 
21 
upon a further showing that the govemment has pursued the criminal or civil 
22 
investigation or proceedings' with reasonable diligence and any proposed 
'23, , 
discovery in the civil action will interfere with the ongoing criminal or civil 
24 
investigation or proceedings. 
25 
(4) 
Award to Qui Tam Plaintiff - (A) If the government proceeds with an action 
26 
brought by a person under subsection (2), such person shall, subject to the second sentence of 
27 
this paragraph, receive at least fifteen percent (15%) but not more than twenty-five percent 
, 
28 
(25%) of the proceeds of the action or settlement of the claim, depending upon the extent to 
29 
which the person substantially contributed to the prosecution of the action. Where the action is 
5. 


one which the court finds to be based primarily on disclosures of specific information (other than 
2 
information provided by the person bringing the action) relating to allegations or transactions in 
3 
a criminal, civil, or administrative hearing, in a congressional, administrative, report, hearing, 
4 
audit, or investigation, or from the news media, the court may award such sums as it considers 
.. 5 • appropriate, but in no case morc than ten p,:rcent (10%) of the proceeds, taking into account the 
6 
significance of the information and the role of the person bringing the action in advancing the 
7 
case to litigation. Any payment to a person under the first or second sentence of this paragraph 
8 
shall be made from the proceeds. Any such person shall also receive an amount for reasonable 
9 
expenses which the court finds to have been necessarily incurred, plus reasonable attorney's fees 
10 
and costs. All suchexp~nses, fees, and costs shall be awarded against the defendant. 
II 
(B) 
If the government does not proceed with an action under this section, the person 
12 
bringing the action or settling the claim shall receive an amount which the court 
13 
decides is reasonable for collecting the civil penalty and damages. The amount 
14 
shall be not less than twenty-five percent (25%) and not more than thirty percent 
15 ; 
(30%) of the proceeds of the action or settlement and shall be paid out of such 
16 
proceeds. Such person shall also receive an amount for reasonable expenses 
17 
which the court finds to have been necessarily incurred, plus reasonable attorney's 
18 
fees and costs. All such expenses, fees, and costs shall b e a warded against the 
, 
19 
defendant. . 
20 
(C) 
Whether or not the government proceeds with the action, if the court finds that the 
21 
action was brought by a person who planned arid initiated the violation of section 
22 
3 upon which the action ;was brought, then the court may, to the extent the court 
23 
considers appropriate, reduce the share of the proceeds of the action which the 
24 
.. 
person would otherwise receive under paragraph (A) or (B) of this section, taking 
, 
25 
into account the role of that person in advancing the case to litigation and any 
26 
relevant circumstances pertaining to the violation. If the person bringing the 
27 
action is convicted of criminal conduct arising from his or her role in the violation 
28 
of section 3, that person shall be dismissed from the civil action and shall not 
29 
receive any share or the proceeds of the action. Such dismissal shall not prejudice 
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2S 
261 
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• 
the right of the government to continue the action, represented by the Department 
of Justice. 
(D) 
If the government does not proceed with the action and the person bringing the 
action conducts the action, the court may award to the defendant its reasonable 
attorney's fees and expenses if the defendant prevails in the action and the court 
finds that the claim of the person bringing the action was clearly frivolous, clearly 
vexatious, or brought primarily for purposes of harassment. 
(5) 
Certain Actions Barred - (A) No court shall have jurisdiction over an action 
brought by a former or present member of the armed forces under subsection (2) of this section 
against a member of the Armed.Forces arising out of such person's service in the Armed Forces; 
(B) 
No cou'rt shall have jurisdiction over an' action brought nnder subsection (2) 
against a member of Congress, a member of the judiciary, or a senior executive 
branch official if the action is based on evidence or information known to the 
govenlment when the actibn was brought. 
(C) 
In no event maya person bring an action under subsection (2) which is based 
upon allegations or transactions which are the subject or a civil suit or an 
administrative civil money penalty proceeding in which the government is already 
a party. 
(D) (i) No court shall have jurisdiction over an action under this section based upon the 
public disclosure of allegations or transactions in a criminal, civil, or 
. administrative healing, in a congressional, administrative report, hearing, audit, or 
investigation, or from the news media, unless the action is brought by the 
Solicitor General or the person bringing the action is an original source of the 
information. 
(ii) 
For purposes of this· paragraph, "original source" means an individual 
who has direct and independent knowledge of the information on which 
the allegations are based and has voluntarily provided the information to 
the government before filing an action under this section which is based 
on the information. 
7 


(6) 
Government not liable for certain expenses - The government is not liable for 
2 
expenses which a person incurs 'in bringing an action under this section. 
3 
(7) 
Any employee who is discharged, demoted, suspended, threatened, harassed, or in 
4 
any manner discriminated against in the terms and conditions of employment by his or her 
5 
employer because of lawful acts done by the employee on behalf 0 f the employee or others in 
6 
furtherance of an action under this section, including investigation for, initiation of, testimony 
7 
for, or assistance in an action filed or to be filed under this section, shall be entitled to all relief 
• 8 • necessary to make the employee whole. Such relief shall include reinstatement with the same 
9 
seniority status such employee would have had but for the discrimination, two times the amount 
10 
of back pay, interest on the back pay, and compensation for any special damages sustained as a 
II 
result of the discrimination, including litigation costs and reasonable attorney's fees. 
12 
SECTION 5. False Claims Procedure. - (I} A subpoena requiring the attendance of a 
13 
witness at a trial or hearing conducted under section 4 of this Act may he served at any place in 
14 
the Philippines; 
IS 
(2) A civil action under section 4 may not be brought - (A) more than six (6) years after 
16 
the date on which the violation of section 3 is committed, or (B) more than thee (3) years after 
• 
17 J the date when facts material to the right of action are known or reasonably should have been 
18 
known by the official of the government charged with responsibility to act in the circumstances, 
19 
but in no event more than ten (10) years afler the date on which the violation is committed, 
20 
whichever occurs last. 
21 
(3) In any action brought under section 4, the go~ernment shall be required to prove, all 
22 
essential elements of the cause of action, including damages, by a preponderance of the 
23 
evidence. 
24 
(4) Notwithstanding any other provision of law or the Rules of Criminal Procedure, a 
25 
final judgment rendered in favor of the government in any criminal proceeding charging fraud or 
.26 
false statements, whether upon a verdict after trial or upon a plea of guilty, shall stop the 
27 
defendant from denying the essential elements of the offense in any action which involves the 
8 


• 
same transaction as in the criminal proceeding and which is brought under subsection (I) or (2) 
2 
of section 4. 
3 
4 
SECTION 6. False Claims Jurisdiction. - Any action under section 4 may be brought in 
5 
any court in which the d~fendant ~r, in the case of multiple defendants, anyone defendant can be 
6 
found, resides, transacts business, in which any act proscribed by section 4 occurred. A summons 
7 
as required by the Rules of Civil Procedure shall be issued by the appropriate court and served at 
8 
any place within or outside the country. 
9 
10 
II 
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13 
14 
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19 
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• 
SECTION 7. Civil Investigative Demands. -
(I) 
In General- (A) Issuance and service - Whenever the Solicitor General has reason 
to believe that any person may be in possession, custody, or control of any documentary material 
or information relevant to a fa1se claims law investigation, the Solicitor General may, before 
commencing a civil proceeding under section 4 or other false claims law, issue in writing and 
cause to be served upon such person, a civil investigative demand requiring such person -
(i) 
to produce such documentary material for inspection and copying; 
(ii) 
to answer in writing written interrogatories with respect to such 
documentary material or information; 
(iii) 
to give oral testimony concerning such documentary material or 
information; or 
(iv) 
to furnish any combination of such material, answers, or testimony. 
The Solicitor General may not delegate the authority to issue civil investigative demands 
under this subsection. Whenever a civil investigative demand is an express demand for any 
product of discovery, the Solicitor General shall cause to be served, in any manner authorized by 
this section, a copy of such demand upon the person from whom the discovery was obtained and 
shall notify the person to whom such demand is issued of the date on which such copy was 
served. 
(1,3) 
Contents and deadlines -
9 


(i) 
Each civil investigative demand issued under paragraph (A) shall state the 
2 
nature of the conduct constituting the alleged violation of a false claims 
3 
law which is under investigation, and the applicable provision of law 
4 
alleged to be violated. 
5 
(ii) 
If such demand is for the production of documentary material, the demand 
, 
, 
' 
: 
6 
shall -
7 
(a) 
describe each class of documentary material to be produced with 
8 
such definitene~s and certainty as to permit such material to be 
9 
fairly identified; 
10 
(b) 
prescribe a return date for each such class which will provide a 
II • 
reasonable period of time within which the material so demanded 
12 
may be assembled and made available for inspection and copying; 
13 
and 
14 
(c) 
identify the false claims law investigator to whom such material 
15 
shall be made available. 
16 
(iii)' 
If such denland is for answers'to written interrogatories, the demand shall 
17 
18 
(a) 
set forth with specificity the written interrogatories to be answered; 
19 
(b) 
prescribe dates .at which time answers to written interrogatories 
20 
shall be submitted; and 
21 
(c) 
identify the false claims law investigator to whom such answers 
22 
shall be submitted. 
23 
(iv) 
If such demand is for the giving of oral testimony, the demand shall -
24 
(a) 
ptescribe a date, time, aid place at which oral testimony shall be 
25 
commenced; 
26 
(b) 
identify a false claims law investigator who shall conduct the 
27 
examination aid the custodian to whom the transcript of such 
28 
examination shall be submitted; 
10 
• 


(c) 
specify that such attendance and testimony are necessary to the 
2 
• 
conduct of the investigation; 
• 
3 
(d) 
notify the person receiving the demand of the right to be 
4 
accompanied by an attorney and any other representative; and 
5 
( e) 
describe the general purpo'se for which the demand is being issued 
6 
and the general nature or the testimony, including the primary 
7 
areas of inquiry, which will be taken pursuant to the demand. 
8 
(v) 
Any civil investigative demand issued under this section which is an 
9 
express demand for any product of discovery shall not be returned or 
10 
returnable until twenty (20) days after a copy of such demand has been 
II 
served upon the persons from whom the directory was obtained. 
'12. , 
(vi) 
The date prescribed for the commencement of oral testimony pursuant to a 
13 
civil investigative demand issued under this section shall be a date which 
14 
is not less than seven (7) days after 'the date on which demand is received, 
15 
unless the Solicitor General determines that exceptional circumstances are 
16 
present which warrant the commencement or such testimony within a 
, 
17 
lesser period of time. 
18 
(vii) 
The Solicitor General shall not authorize the issuance under this section of 
19 
. more than one (1) civil investigative demand for oral testimony by the 
20 
same person unless the person requests otherwise or unless the Solicitor 
21 
General, after investigation, notifies that person in writing that an 
• 22' 
additional demand for oral testimony is necessary. The Solicitor General 
23 
may not authorize the performance, by any other officer, employee, or 
24 
agency, or any function vested in the Solicitor General under this 
25 
subparagraph. 
26 
(C) 
Protected Material or Information -
27 
. (i) 
In general' - A civil investigative demand issued under subsection (1) may 
28 
not require the production of any documentary material, the submission of 
29 
my answers to written interrogatories, or the giving of any oral testimony 
11 


if such material, answers, or testimony would be protected from disclosure 
2 
under (a) the standards applicable to subpoena or subpoenas duces tecum 
3 
issued by a court; or (b) the standards applicable to the discovery requests 
4 
of the Rules of Civil, Procedure, to the extent that the application of such 
5 
standards to any such demand is appropriate and consistent with the 
6 
provisions and purposes of this section. 
7 
(ii) 
Effect on other orders, rules, and laws - Any such demand which is an 
• 
8 
express demand for any product of:discovery supersedes any inconsistent 
9 
order, rule, or provision of law (other than this section) preventing or 
10 
restraining disclosure of snch product of discovery to any person. 
11 
Disclosure of my, product' of discovery pursuant to any such express 
12 
demand does not constitute a waiver of any right or privilege which the 
13 
person making such disclosure may be entitled to invoke to resist 
• 
• 
14 
discovery of trial preparation materials. 
15 
(D) 
Service; Jurisdiction - (i) By whom served - Any civil investigative demand 
16 
issued under subsection (1) may be served by a false claims law investigator, at 
17 
any place within the territorial jurisdiction of any court. 
18 
(ii) 
Service in foreign countries - Any such demand or any petition filed under 
19 
paragraph (H) may be served upon any person who is not found within the 
20 
territorial jurisdiction of any court in such mamler as the Rules of Civil 
21 
Procedure prescribe for service in a foreign country. 
22 
(iii) 
Service upon legal entities and natural persons -
23. 
(a) 
Legal entities - Service of any civil investigative demand issued 
J 
24 
under subsection (1) or of any petition filed under paragraph (a) 
25 
may be made upon a partnership, corporation, association, or other 
26 
legal entity by -
• 
27 
(l) 
delivering an executed copy of such demand or petition to 
28 
any partner, executive officer, managing agent, or general 
29 
agent of the partnership, corporation, association or entity, 
12 


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• 
or to any agent authorized by appointment or by law to 
receive service of process on behalf of such pminership, 
corporation, association, or entity. 
(2) 
delivering an executed copy of such demand or petition to 
the principal office or place of business of the partnership, 
corporation, association, or entity, or 
(3) 
depositing an executed copy of such demand or petition in 
the mails by registered or certified mail, with a return 
receipt 
requested, 
addressed 
to 
such 
partnership, 
corporation, association, or entity at its principal office or 
place of business. 
(b) 
Natural persons - Service of any such demand or petition may be 
made upon any natural person by -
(1) 
delivering an executed copy of such demand or petition to 
the person; or 
(2) 
depositing an executed copy of such demand or petition in 
the mail by registered or celiified mail, with a return receipt 
requested, addressed to the person at the person's residence 
or principal office or-place of business. 
(E) 
Proof of Service - A verified return by the individual servlllg any civil 
investigative demand issued under subsection (I) setting fOlih the manner of such 
service shall be proof o{ such service. In the case of service by registered or 
certified mail, such return shall be accompanied by the return post office receipt 
of delivery of such demand. 
(F) 
Documentary Material - The production of documentary material in response to a 
civil investigative demand served under this section shall be made under a sworn 
certificate, in such form as the demand designates, in the case of a natural person, 
the person to whom the demand is directed; or control, or knowledge of the 
person to whom the demand is directed has been submitted. To the extent that any 
13 


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• 
information is not furnished, the information shall be identified and reasons set 
forth with particularity regarding the reasons why the information was not 
furnished. 
(G) 
Oral Examinations -
(i) 
Procedure - The examination of any person pursuant to a civil 
investigative demand for oral testimony served under this section shall be 
taken before an officer authorized to administer oaths and affirmations by 
law of the Philippines or of the place where the examination is held. The 
officer before whom the testimony is to be taken shall put the witness on 
oath or affirmation and shall, personally or by someone acting under the 
Clirecfion of the officer and in the officer's presence, record the testimony 
of the witness. The testimony shall be taken stenographically and shall be 
transcribed. When the testimony is fully transcribed, the officer before 
. whom the testimony is taken shall promptly transmit a copy of the 
transcript of the testimony by any means authorized by, and in a manner 
consistent with, the Rules of Civil Procedure; 
(ii) 
Persons present - The false claims law investigator conducting the 
examination shall exclude from the place where the examination is held all 
persons except the person giving the testimony, the attorney for, and any 
other representative of the person giving the testimony, the attorney for the 
government, any person who may be agreed upon by the attorney for the 
government and the person giving the testimony, the officer before whom 
the testimony is to be taken, and any stenographer taking such testimony; 
(iii) 
Where testimony taken· - The oral testimony of any person taken pursuant 
to a civil investigative demand served under this Section shall be taken in 
the court within which such person resides, is found, or transacts business, 
or in such other place as may be agreed upon by the false claims law 
investigator conducting the examination and such person; 
14 


(iv) 
Transcript of testimony - When the testimony is fully transcribed, the fake 
2 
claims law investigator or the officer before whom the testimony is taken 
3 
shall afford the witness, who may be accompanied by counsel, a 
4 
reasonable oppOltunity to examine and read the transcript, unless such 
5 
examination and reading are waived by the witness. Any changes in form 
6 
or substance which the witness desires to make shall be entered and 
7 
identified upon the transcript by the officer or the false claims law 
• 8 • 
investigator, with a ,statement of the reasons given by the witness for 
9 
making such changes. The transcript shall then be signed by the witness, 
10 
unless the witness in writing waives the signing, is ill, cannot be fouud, or 
11 
refuses to sign. If the transcript is not signed by the witness within thirty 
12 
(30) days after being afforded a reasonable opportunity to examine it, the 
13 
officer or the false claims law investigator shall sign it and state on the 
14 
record the fact of the waiver, illness, absence of the witness, or the refusal 
15 
to sign, together with the reasons, if any, given therefore; 
16 
(v) 
Certification and delivery to custodian - The officer before whom the 
17 
testimony is taken shall certify on the transcript that the witness was sworn 
• 
18 I 
by the officer and that the transcript is a true record of the testimony given 
19 
by the witness, and the officer or fake claims law investigator shall 
20 
promptly deliver the transcript, or send the transcript by registered or 
21 
certified mail, to the custodian; 
22 
(vi) 
'Furnishing or inspection of trans6ript by witness - Upon payment of 
23 
reasonable charges therefore, the false claims investigator shall furnish a 
24 
copy of the transcript to the witness only except that the Solicitor General 
25 
. may, for good cause, limit such witness to inspection or the official 
26 
transcript of the witness' testimony; 
,27 
(vii) 
Conduct of oral testimony - (a) Any person compelled to appear for oral 
• 
28 
testimony under a civil investigative demand issued nnder subsection (I) 
29 
may be accompanied, represented, and advised by counsel. Counsel may 
15 


.. 
• 
advise such person, in confidence, with respect to any question asked of 
2 
slIch person. Such person or counsel may o~ject on the record to any 
:\ 
question, in Whole or in part, and shall briefly state for the record the 
4 
reason for the objection. An objection made, received, and entered upon 
5 
the record when it is claimed that such person is entitled to refuse to 
6 
answer the question on the grounds of any constitutional or other legal 
7 
rights of privilege, including the privilege against self-incrimination. Such 
8 
person may not otherwi~e object to or refuse to answer any question, and 
9 
may not directly or through counsel otherwise intelTupt the oral 
10 
examination. If such person refuses to answer any question, a petition may 
II 
bc filed in the court under subsection (H)(i) for an order compelling such 
12 
person to answer such questions; 
13 
(b) 
If'such person refuses to answer any question on the grounds of the 
14 
privilege against self-incrimination, the testimony of such person 
15 
may be compelled in accordance with the provisions of the Rules 
16 
of Court. 
, 
17 
(viii) 
Witness fees and allowances - Any person appearing for oral testimony 
18 
under a civil investigative demand issued under subsection (I) shall be 
"19 • 
entitled to the same:fees and allowances which are paid to witnesses as 
20 
provided in the appropriate provisions of the Rules of Court; 
21 
(ix) 
Custodians of Documents, Answers, and Transcripts-
22 
(a) 
Designation - The Solicitor General shall designate a false claims 
23 
law investigator to serve as custodian of documentary material, 
24 
answers to interrogatories, and transcripts of oral testimony 
25 
received under this section, and shall designate such additional 
26 
false claims law investigators as the Solicitor General determines 
27 
from time to time to be necessary to serve as deputies to the 
28 
custodian. 
16 


'1 
2 
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• 
I I 
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;w 
21 
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23 
24 
25 
26 
27 
28 
29 
• 
• 
• 
(b) 
Responsibility for materials; disclosure - (I) A false claims 
investigator who receives any documentary material, answers to 
interrogatories, or transcripts of oral testimony received under this 
section shall transmit them to the custodian. The custodian shall 
tal~ physical possession of ~uch material, answers, or transcripts 
and shall he responsible for the use made of them and for the 
return of documentary material under paragraph (D). 
(2) 
The custodian may cause the preparation of such copies of 
such documentary material, answers to interrogatories, or 
transcripts of oral testimony as may be required for official 
use by any false claims law investigator, or other officer or 
employee of the Department of Justice, who is authorized 
for such use under.regulations which the Solicitor General 
shall issue. Such material, answers, and transcripts may be 
used by any such authorized false claims law investigator 
'01' other officer '01' employee in connection with the taking 
of oral testimony under this section. 
(3) 
Except as otherwise provided in this subsection, no 
documef\tary material, answers to interrogatories, or 
transcripts of oral testimony, or copies thereof, while in the 
possession of the custodian and under such reasonable 
terms and conditions as the Solicitor General shall 
prescribe-
(a) 
documentary, 
material 
and 
answers 
to 
interrogatori~s shall be available for examination by 
the person who produced such material or answers, 
or by a representative of that person authorized by 
that person to examine such materials and answers; 
and 
17 


(b) 
transcripts of oral testimony shall be available for 
2 
• 
examination by the person who produced such 
, 
3 
testimony, or by a representative of that person 
4 
authorized by that person to 
examine such 
5 
transcripts .. 
6 
(c) 
Use of materials, answers, or transcripts in other proceedings -
7 
Whether any attorney of the Department of Justice has been 
8 
designated to appear before any court or agency in any case or 
9 
proceeding, the custodian of any documentary material, answers to 
10 
interrogatories, or transcripts of oral testimony received under this 
11 
section may deliver to such attorney such material, answers, or 
12 • 
transcripts for official use in connection with any such case or 
I 
13 
proceeding as such attorney determines to be required. 
14 
Upon the completion of any such case or proceeding, such 
15 
attorney shall return to the custodian any such material, answers, or 
16 
transcripts so delivered which have not passed into the control of 
17 
such court, or agency through introduction into the record of such 
18 
case or proceeding. 
19 
(d) 
Conditions for retum or material - If any documentary material has 
20 
been produced by any person in the course of my false claims law 
21 
investigation pursuant to a civil investigative demand under this 
• 22 ' 
section, and ~ 
23 
(1) 
any case or proceeding before the court arising out of such 
24 
investigation, or. any proceeding before any agency 
25 
involving such material, has been completed, or 
26 
(2) 
any case or proceeding in which such material may be used 
'17 
. bas been commenced' within a reasonable time after 
28 
completion of the examination and analysis of all 
29 
documentary material and other information assembled in 
18 


the course of such investigation, the custodian shall, upon 
2 
written request of the person who produced such material, 
0 
~ 
return to such person any such material other than copies 
4 
furnished to the false claims law investigator under 
5 
subsection (G)(ii) or made for the Department of Justice 
6 
under paragraph (2)(B) which has not passed into the 
7 
control or any court or agency through the introduction into 
8 
the record of such case or proceeding. 
9 
(e) 
Appointment of successor custodians - In the event of the death, 
10 
disability, or separation from service in the Department of Justice 
11 
of the cu,stodian 'of any documentary material, answers to 
12 
interrogatories, or transcripts of oral testimony produced pursuant 
13 
to such custodian from responsibility for the custody and control or 
, 
• 
14 
such materials, answers, or transcripts, the Solicitor General shall 
15 
promptly -
16 
(I) 
designate another false claims law investigator to serve as 
17 
custodian of such material, answers, or transcripts; and 
18 
(2) 
transmit in writing to the person who produced such 
19 
material, answers, or testimony notice of the identity and 
20 
address of the successor so designated. Any person who is 
21 
designated to be a successor under this paragraph shall 
22 
have, with regard to such material, answers, or transcripts, 
23 
the same duties and responsibilities as were imposed by 
24 
this section upon that person's predecessor in office, except 
25 
that the successor shall not be held responsible for any 
26 
default 
or 
dereliction 
which 
occurred 
before 
that 
27 
designation. 
28 
(H) 
Judicial Proceedings - (i) Petition for enforcement - Whenever any person fails to 
29 
comply with any civil investigative demand issued under subsection (I), or 


2 
3 
4 
• 5 
6 
7 
8 
9 
10 
11 
12 
13 
14 
15 ; 
16 
17 
18 
19 
20 
21 
22 
23 
24 
• 
25 
26 
27 
28 
• 
• 
whenever satisfactory copying or reproduction of any material requested in such 
demand cannot be done and such person refuses to surrender such material, the 
Solicitor General may file', in the court iii which such person resides, is found, or 
transacts business, aid serve upon such person a petition for an order of such court 
for the enforcement of the civil investigative demand . 
(ii) 
Petition to modify or set aside demand - (a) Any person who has received 
a civil investigative demand issued under subsection (1) may file, in the 
court within which such person resides, is found, or transacts business, and 
serve upon the false claims law investigator identified in such demand a 
petition for an order of the court to modify or set aside such demand. In 
the case of a petition addressed to an express demand for any product of 
discovery, a petition to modify or set aside such demand may be brought 
only in the court in which the proceeding in which such discovery was 
obtained is or was last pending. Any petition under this subparagraph must 
be filed - (1) within twenty (20) days after the date of service of the civil 
investigative demand, or at any time before the return date specified in the 
demand, whichever date is earlier; or (2) within such longer period as may 
he prescribed in writing by any false claims law investigator identified in 
the demand. 
(b) 
The petition shall specify each ground upon which the petitioner 
relies in seeking relief under subparagraph (a), and may be based 
upon any failure of tile demand to comply with the provisions of 
this section or upon any constitutional or other legal right 01' 
privilege of such person. During the pendency of the petition in the 
court, the court may stay, as it deems proper, the running of the 
time allowed for compliance with the demand, in whole or in part, 
except that the person filing the petition shall comply with any 
portions of the demand not sought 10 be modified or set aside. 
20 


1 
2 
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5 
6 
7 
8 
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10 
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14 
15 
,)6 
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20 
21 
22 
23 
24 
25 
26; 
27 
28 
29 
• 
(iii) 
Petition to modify or set aside demand for product of discovery - (a) In the 
case of any civil investigative demand issued under subsection (1) which 
is an express demand for any product of discovery, the person from whom 
such discovery was obtained may file, in the court in which the proceeding 
in which said discovery was obtained is or was last pending, and serve 
upon any false claims law investigator identified in the demand and upon 
the recipient of the demand, a petition for an order of such COUlt to modify 
or set aside those pOltions of the demand requiring production of any such 
product or discovery. Any petition under this subparagraph must be filed 
(I) withip twenty (20) days after the date of service or the civil 
i'nvestigative demand, or at any time before the return date specified in the 
demand, whichever date is earlier; or (2) within such longer period as may 
he prescribed in writing by any false claims law investigator identified in 
. the demand. (3) 'Fhe petition shall specify each ground upon which the 
petitioner relies in seeking relief under subparagraph (a), and may be 
based upon any failure of the pOltions of the demand from which relief is 
sought to comply with the provisions of this section, or upon any 
constitutional or other legal right or privilege of the petitioner. During the 
pendency of the petition, the COUlt may stay, as it deems proper, 
compliance with the demand and the running of the time allowed for 
compliance with the demand. 
(iv) 
Petition to require performance by custodian of duties - At any time during 
which any custodian is in custody or control of any documentary material 
or answers to interrogatories produced, or transcripts of oral testimony 
given, by any person' in compliance with any civil investigative demand 
issued under subsection (1), such person, and in the case of an express 
demand for any product of discovery, the person from whom such 
discovery was obtained, may file, in the court within which the office of 
such custodian is situated, and serve upon such custodian, a petition for an 
21 


order of such court to require the performance by the custodian of any 
2 
duty impdsed upon the custodian by this section. 
0 ., 
(v) 
Jurisdiction - Whenever any petition is filed in any court under this 
4 
subsection, such court shall have jurisdiction to hear and determine the 
5 
matter so presented, and to enter such order or orders as may be required 
6 
, 
to carry out the provisions of this section. Any final order so entered shall 
7 
be subject to appeal under the appropriate provisions of the Rules of 
, 8 • 
Procedure. Any disobedience of any final order entered under this section 
9 
by any court shall be punished as contempt of the court. 
10 
(vi) 
Applicability of rules of civil procedure - The Rules of Civil Procedure 
11 
shall apply to any petition under this subsection, to the extent that such 
12 
rules are not inconsistent with the provisions of this section. 
13 
. (I) 
Definitions - For purposes of this section -
14 
(i) 
the term "false claims I aw"means -
15 
(a) 
this section and sections 3 and 4; and 
16 
(b) 
any Act of Congress enacted after the date of the enactment of this 
17 
section which prohibits, or makes available to the court any civil 
• 
18 J 
remedy with respect to, any false claim against, bribery of, or 
19 
corruption of any officer or employee of the government; 
20 
(ii) 
the term "false claims law investigation" means any inquiry conducted by 
21 
any false, claims investigator for the purpose of ascertaining whether any 
22 
'person is br has been engaged in any violation of a false claims law: 
23 
(iii) 
the term "false claims investigator" means any attorney or investigator 
24 
employed by the Department of Justice who is charged with the duty of 
25 
enforcing or carrying into effect any false claims law, or any officer or 
26 
employee of the government acting under the direction and supervision of 
,27 
such attorney or investigator in connection with a false claims law 
• 
28 
investigation; 
22 


(iv) 
the term "person" means any natural person, partnership, corporation, 
2 
association, or other legal entity, .including any political subdivision of a 
3 
State; 
4 
(v) 
the term" documentary material" includes the original or any copy of any 
5 
book, record, report, memorandum, paper, communication, tabulation, 
6 
chart, or other document, or data compilations stored in or accessible 
7 
through computer or other information retrieval systems, together with 
8 
instructions and all oth~r materials necessary to use or interpret such date 
9 
compilations, and any product of discovery; 
• 
I 
10 
(vi) 
the term "custodian" means the custodian, or any deputy custodian, 
11 
designated by the Solicitor General under subsection (G)(ix); and 
12 
(vii) 
the term "product of discovery" includes -
13 
(a) 
tire original or duplicate of any deposition, interrogatory, 
14 
document, thing, result of the inspection of land or other propeliy, 
15 
examination, or admission, which is obtained by any method of 
16 
discovery in any judicial or administrative proceeding of an 
17 
adversarial natme; 
18 
(b) 
any digest, analysis, selection, compilation, or derivation of any 
"19 • 
item listed in subparagraph (i); and 
20 
(c) 
any index or other manner of access to any item listed 111 
21 
subparagraph (i). 
22 
SECTION 8. Separability Clause. - If any provision or pmt thereof is held invalid or 
23 
unconstitutional, the rE:mainderof the law or the provision not otherwise affected shall remain 
24 
valid and subsisting. 
25 
SECTION 9. Repealing Clause. - Any law, presidential decree or issuance, executive 
26 
order, letter of instruction, administrative order, rule, or regulation contrary to or inconsistent 
27; 
with the provisions of this Act is hereby repealed, modified, or amended accordingly. 
23 


. 
,1 
SECTION 10, Effectivity Clause, - This Act shall take effect fifteen (15) days after its 
2 
publication in at least two (2) newspapers of general circulation. 
Approved, 
• 
• 
24