Republic of the Philippines.
HOUSE OF REPRESENTATIVES
Quezon City, Metro Manila

SEVENTEENTH CONGRESS
FIRST REGULAR SESSION
HOUSE BILL NO. 51 32

Introduced by CIBAG Party-List Representative
Sherwin Tugna

AN ACT AMENDING REPUBLIC ACT NO. 3019, ALSO KNOWN AS “THE ANTI-
GRAFT AND CORRUPT PRACTICES ACT”, TO CRIMINALIZE GRAFT AND
CORRUPT PRACTICES IN THE PRIVATE SECTOR, AND FOR OTHER
PURPOSES

EXPLANATORY NOTE

The evils of graft and corruption have always plagued both the public and
private sectors of our society in the Philippines. "Graft and corruption in our society
weakens our democracy and the integrity of our various institutions, leads to
violations of human tights, distorts markets, prevents the proper delivery of basic
services to the people, increases inequality and injustice in the society and allows
organized crime, terrorism and other threats to human security to flourish.”*

In order to address this problem, the United Nations adopted an instrument to
address globally the problem of graft and corruption. The United Nations Convention
Against Corruption (UNCAC) provides the clear message that the international
community is determined to prevent and control corruption.

Article 21 of UNCAC particularly states:

Each State Party shall consider adopting such legislative and other
measures as may be necessary to establish as criminal offences, when
committed intentionally in the course of economic, financial or
commercial activities:

(a) The promise, offering or giving, directly or indirectly, of an undue
advantage to any person who directs or works, in any capacity, for a
private sector entity, for the person himself or herself or for another
person, in order that he or she, in breach of his or her duties, act or
refrain from acting;

(6) The solicitation or acceptance, directly or indirectly, of an undue
advantage by any person who directs or works, in any capacity, for a
private sector entity, for the person himself or herself or for another

‘Kofi A. Annan, Foreword of UN Secretary General in the United Nations Convention Against
Corruption (UNCAC) which was signed by the Philippines in November 2006.

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person, in order that he or she, in breach of his or her duties, act or
refrain from acting.

The Philippines currently has no laws that specifically penalize corruption in
the private sector. Corruption has always been associated with the government.
People always see that corruption is only prevalent in government offices, agencies
and departments. Public officials are the ones who abuse their power and position
to gain advantage. However, it is forgotten that graft and corruption is not limited in
the government sector. Graft and corruption occurs and thrives because of the
consciousness of the people engage in it, and the people who allow it to occur just
because everyone is involved in it. Many Filipinos have been born during times
when graft and corruption has already been prevalent in the society. When
government officials are being prosecuted for committing graft and corruption, many
would say "eh sino ba ang di gumagawa?” Such remark shows that the Philippine
society recognizes the existence of greift and corruption and somehow has accepted
it already. Thus, this reality results to lack of political and moral will of all Filipinos
comprising our nation to fight graft and corruption.

Graft and corruption occurs in private sector as well. It is a reality that people
use money, position, or any advantage as an inducement or reward in order to get
what they want, These activities are considered forms of graft and corruption. In
line with the thrust of UNCAC, now is the right time to amend R.A. 3019 or the “Anti-
Graft and Corrupt Practices Act” to include a provision that will penalize corruption in
the private sector. In doing this, a clear message is being sent out that graft and
corruption is prohibited in any sector of the society. All Filipinos are part of the fight
against graft and corruption.

Furthermore, there is a need to increase the fines and penalties for violations
of Ant-Graft and Corrupt Practices Act in order to deter people from committing such
acts. The period before acts committed in violation of R.A. No. 3019 prescribe must
be lengthened to ensure that the violators could not escape the consequences of
their illegal acts by fleeing or hiding for a long period of time. Also, a provision
stating that when the violator is not within the Philippines, the prescription of the
crime committed does not run

Lastly, there is a need for all heads of government offices, agencies,
departments as well as heads of ccrporations and businesses to make reports
showing advantages received which are allowed and permitted under this law and to
enable the Office of the Ombudsman to inspect, copy and reproduce such reports for
reference, conduct of studies and adoption of other measures for corruption
prevention

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



Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City, Metro Manila

SEVENTEENTH CONGRESS
FIRST REGULAR SESSION

HOUSE BILL NODL32

Introduced by CIBAC Party-List Representative
Sherwin Tugna

AN ACT AMENDING REPUBLIC ACT NO. 3019, ALSO KNOWN AS THE “ANTI-
GRAFT AND CORRUPT PRACTICES ACT”, TO CRIMINALIZE GRAFT AND
CORRUPT PRACTICES IN THE PRIVATE SECTOR, AND FOR OTHER
PURPOSES

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

SECTION 1. Section 1 of R.A, No. 3019, as amended, is hereby amended to read as
follows:

Section 1. Statement of policy. It is the policy of the Philippine
Government, in line with the principle that a public office is a public
trust, to repress certain acts of public officers and private persons alike
which constitute graft or corrupt practices or which may lead thereto

THE PHILIPPINE GOVERNMENT ALSO RECOGNIZES THAT TO
FIGHT THE EVILS OF GRAFT AND CORRUPTION, ALL CITIZENS
MUST PARTICIPATE AND TAKE PART IN IT CONSEQUENTLY,
GRAFT AND CORRUPT PRACTICES OR ANY ACT WHICH MAY
LEAD THERETO OCCURRING IN THE PRIVATE SECTOR AND
ONLY BETWEEN AND AMONG PERSONS WORKING FOR AND
TRANSACTING WITH THE PRIVATE SECTOR MUST BE
REPRESSED AND PENALIZED.

SECTION 2. Section 2 of R.A. No. 3019, as amended, is hereby amended to read as
follows:

Section 2. Definition of terms. As used in this Act, that term

(A) "ADVANTAGE" MEANS-
(1) ANY GIFT, LOAN, FEE, REWARD OR COMMISSION
CONSISTING OF MONEY OR OF ANY VALUABLE SECURITY
OR OF OTHER PROPERTY OR INTEREST IN PROPERTY OF
ANY DESCRIPTION;

(II) ANY OFFICE, EMPLOYMENT OR CONTRACT:
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(Ill) ANY PAYMENT, RELEASE, DISCHARGE OR
LIQUIDATION OF ANY LOAN, OBLIGATION OR OTHER
LIABILITY, WHETHER IN WHOLE OR IN PART;

(IV) ANY OTHER SERVICE, OR FAVOUR (OTHER THAN
ENTERTAINMENT), INCLUDING PROTECTION FROM ANY
PENALTY OR DISABILITY INCURRED OR APPREHENDED
OR FROM ANY ACTION OR PROCEEDINGS OF A
DISCIPLINARY, CIVIL OR CRIMINAL NATURE, WHETHER
OR NOT ALREADY INSTITUTED;

(V) THE EXERCISE OR FORBEARANCE FROM THE
EXERCISE OF ANY RIGHT OR ANY POWER OR DUTY; AND

(VI) ANY OFFER, UNDERTAKING OR PROMISE, WHETHER
CONDITIONAL OR UNCONDITIONAL, OF ANY ADVANTAGE
WITHIN THE MEANING OF ANY OF THE PRECEDING
PARAGRAPHS (I), (II), (Ill), (IV) AND (V), BUT DOES NOT
INCLUDE AN ELECTION CONTRIBUTION WITHIN THE
MEANING OF THE OMNIBUS ELECTION CODE;

(B) “AGENT” INCLUDES ANY PERSON EMPLOYED BY OR ACTING
FOR ANOTHER,

(C) "ENTERTAINMENT" MEANS THE PROVISION OF FOOD OR
DRINK, FOR CONSUMPTION ON THE OCCASION WHEN IT IS
PROVIDED, AND OF ANY OTHER ENTERTAINMENT CONNECTED
WITH, OR PROVIDED AT THE SAME TIME AS SUCH PROVISIONS,

(0)(a) "Government" includes the national government, the local
governments, the government-owned and government-controlled
corporations, and all other instrumentalities or agencies of the Republic
of the Philippines and their branches

(E) “INDIVIDUAL” INCLUDES THE PRIVATE PERSON CHARGED
WITH THE PUBLIC OFFICER OR THE PRIVATE PERSON
CHARGED WITH VIOLATION OF SECTION 7 OF THIS ACT.

(F)fd) "Person" includes natural and juridical persons, unless the
context indicates otherwise.

(G) "PRINCIPAL" INCLUDES-
()) AN EMPLOYER;
(Il) A BENEFICIARY UNDER A TRUST;

(Ill) A TRUST ESTATE AS THOUGH IT WERE A PERSON:


(IV) ANY PERSON BENEFICIALLY INTERESTED IN THE
ESTATE OF A DECEASED PERSON;

(V) THE ESTATE OF A DECEASED PERSON AS THOUGH IT
WERE A PERSON; AND

(VI) IN THE CASE OF AN EMPLOYEE OF THE
GOVERNMENT, THE HEAD OF THE OFFICE, AGENCY OR
DEPARTMENT CONCERNED.

(H)fb) "Public officer" [ineludes-elective—and-appointive-officials-and

employees,—permanent—ortemporary,—whether-in_the-classified
lassified mnpt receiving-compensation,-even-nominal,

from—th rAmentas—defiaed—in—the—preceding—subparagraph]

INCLUDES ELECTIVE AND APPOINTIVE OFFICIALS AND
EMPLOYEES, PERMANENT CR TEMPORARY, WHETHER IN THE
CAREER OR NON-CAREER SERVICE, INCLUDING MILITARY AND
POLICE PERSONNEL, WHETHER OR NOT THEY RECEIVE
COMPENSATION, REGARDLESS OF AMOUNT.

(I)(6) "Receiving any ADVANTAGE|gift" includes the act of accepting
directly or indirectly AN ADVANTAGE [a-giff] from a person other than
a member of the public officer's OR INDIVIDUAL’S immediate family, in
behalf of himself or of any member of his family or relative within the
fourth civil degree, either by consanguinity or affinity, even on the
occasion of a family celebration or national festivity like Christmas, if
the ADVANTAGE IS NOT ALLOWED UNDER SECTION 7 OF THIS
ACT [value of the gift-is-under-the- circumstances manifestly-excessive.}

SECTION 3. A new section 7 must be added which reads:

SECTION 7. CORRUPTION BY PRIVATE PERSONS. THE
FOLLOWING SHALL BE LIABLE FOR AN OFFENSE

(A) ANY AGENT WHO, WITHOUT REASONABLE EXCUSE,
SOLICITS OR ACCEPTS ANY ADVANTAGE AS AN INDUCEMENT
TO OR REWARD FOR OR OTHERWISE ON ACCOUNT OF HIS-

(1) DOING OR FORBEARING TO DO, OR HAVING DONE OR
FORBORNE TO DO, ANY ACT IN RELATION TO HIS
PRINCIPAL'S AFFAIRS OR BUSINESS; OR

(Il) SHOWING OR FORBEARING TO SHOW, OR HAVING
SHOWN OR FORBORNE TO SHOW, FAVOUR OR
DISFAVOUR TO ANY PERSON IN RELATION TO HIS
PRINCIPAL'S AFFAIRS OR BUSINESS, SHALL BE GUILTY
OF AN OFFENCE.

(B) ANY PERSON WHO, WITHOUT REASONABLE EXCUSE,
OFFERS ANY ADVANTAGE TO ANY AGENT AS AN INDUCEMENT

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TO OR REWARD FOR OR OTHERWISE ON ACCOUNT OF THE
AGENT'S-

(!) DOING OR FORBEARING TO DO, OR HAVING DONE OR
FORBORNE TO DO, ANY ACT IN RELATION TO HIS
PRINCIPAL'S AFFAIRS OR BUSINESS; OR

(I) SHOWING OR FORBEARING TO SHOW, OR HAVING
SHOWN OR FORBORNE TO SHOW, FAVOUR OR
DISFAVOUR TO ANY PERSON IN RELATION TO HIS
PRINCIPAL'S AFFAIRS OR BUSINESS, SHALL BE GUILTY
OF AN OFFENCE.

(C) ANY AGENT WHO, WITH IINTENT TO DECEIVE HIS PRINCIPAL,
USES ANY RECEIPT, ACCOUNT OR OTHER DOCUMENT-

(I) IN RESPECT OF WHICH THE PRINCIPAL IS INTERESTED;
AND.

(II) WHICH CONTAINS ANY STATEMENT WHICH IS FALSE
OR ERRONEOUS OR DEFECTIVE IN ANY MATERIAL
PARTICULAR; AND

(IIl) WHICH TO HIS KNOWLEDGE IS INTENDED TO MISLEAD
THE PRINCIPAL, SHALL BE GUILTY OF AN OFFENCE.

(D) IF AN AGENT ACCEPTS AN ADVANTAGE, NEITHER HE NOR
THE PERSON WHO OFFERED THE ADVANTAGE SHALL BE
GUILTY OF AN OFFENSE UNDER SECTION 7 (A) OR (B) IF:

(Il) THE ACT IS DONE WITH THE PERMISSION OF HIS
PRINCIPAL, BEING PERMISSION WHICH COMPLIES WITH
SECTION 7(E) BELOW;

(Il) THE ADVANTAGE IS UNSOLICITED;

(Il) THE ADVANTAGE IS OF SMALL OR INSIGNIFICANT
VALUE AND OFFERED OR GIVEN AS A MERE ORDINARY
TOKEN OF GRATITUDE OR FRIENDSHIP ACCORDING TO
LOCAL CUSTOMS OR USAGE;

(E) FOR THE PURPOSES OF SECTION 7(D) PERMISSION SHALL-

(Il) BE GIVEN BEFORE THE ADVANTAGE IS OFFERED OR
ACCEPTED; OR

(Il) IN ANY CASE WHERE AN ADVANTAGE HAS BEEN
OFFERED OR ACCEPTED WITHOUT PRIOR PERMISSION,
BE APPLIED FOR AND GIVEN AS SOON AS REASONABLY
POSSIBLE AFTER SUCH OFFER OR ACCEPTANCE,

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SECTI

AND FOR SUCH PERMISSION TO BE EFFECTIVE FOR THE
PURPOSES OF SECTION 7(D), THE PRINCIPAL SHALL,
BEFORE GIVING SUCH PERMISSION, HAVE REGARD TO
THE CIRCUMSTANCES IN WHICH IT IS SOUGHT.

ON 4. All provisions using the term ‘gift’ shall be accordingly amended to use

the term “advantage” instead as defined herein.

SECTION 5, Sections 7, 8, and 9 must be renumbered as Sections 8, 9, and 10

respect

SECTION 6. Section 9 of R.A. No. 3019, as amended, is hereby amended to read as

follows:

tively.

Section 9. Penalties for violations. (a) Any public officer or private
person committing any of the unlawful acts or omissions enumerated in
Sections 3, 4, 5 and 6 of this Act shall be punished with imprisonment
for not less than six (6) years and one (1) month but not nor more than
fifteen (15) years AND A FINE OF NOT LESS THAN FIVE HUNDRED
THOUSAND PESOS NOR MORE THAN ONE MILLION PESOS,
perpetual disqualification from public office, and confiscation or
forfeiture in favor of the Govecnment of any prohibited interest and
unexplained wealth manifestly cut of proportion to his salary and other
lawful income.

Any complaining party at whose complaint the criminal prosecution was
initiated shall, in case of conviction of the accused, be entitled to
recover in the criminal action with priority over the forfeiture in favor of
the Government, the amount of money or the thing he may have given
to the accused, or the value of such thing.

(B) ANY PRIVATE PERSON COMMITTING THE ACTS MENTIONED.
IN SECTION 7 SHALL BE PUNISHED WITH IMPRISONMENT FOR
NOT LESS THAN SIX (6) YEARS AND ONE (1) MONTH BUT NOT
MORE THAN FIFTEEN (15) YEARS AND A FINE NOT LESS THAN
FIVE HUNDRED THOUSAND PESOS NOR MORE THAN ONE
MILLION PESOS, AND PAYMENT OF DAMAGES TO PERSONS
PREJUDICED BY THE ACTS COMMITTED.

(Cb) Any public officer in violation of any of the provisions of Section
8{7] of this Act shall be punished by a fine of not less than THIRTY
PERCENT NOR MORE THAN SIXTY PERCENT OF HIS ANNUAL
INCOME [one-hundred-pesos-ror-more-than-one-thousand-pesos], or
by imprisonment not exceeding one year and six months, or by both
such fine and imprisonment, at the discretion of the Court.

The violation of said section proven in a proper administrative
proceeding shall be sufficient cause for removal or dismissal of a public
officer, even if no criminal prosecution is instituted against him


SECTION 7. Sections 10, 11, 12, 13 and 14 must be renumbered as Sections 11,
12, 13, 14 and 15 respectively

SECTION 8. Section 14 of R.A. No. 3019, as amended, is hereby amended to read
as follows:

Section 14. Exception. Unsolicited ADVANTAGE {gift} of small or
insignificant value offered or given as a mere ordinary token of
gratitude or friendship according to local customs or usage, shall be
excepted from the provisions of this Act PROVIDED THAT THE
ADVANTAGE IS GIVEN OR RECEIVED UNDER CONDITIONS
MENTIONED IN SECTION 7(10) AND THE PERMISSION OF THE
PRINCIPAL IS OBTAINED UNDER THE FOLLOWING
CIRCUMSTANCES MENTIONED IN SECTION 7 (E).

Nothing in this Act shall be interpreted to prejudice or prohibit the
practice of any profession, lawful trade or occupation by any private
Person or by any public officer who under the law may legitimately
practice his profession, trade or occupation, during his incumbency,
except where the practice of such profession, trade or occupation
involves conspiracy with any other person or public official to. commit
any of the violations penalized in this Act.

SECTION 9. A new section 15 must be added which reads:

SECTION 15, ALL HEADS OF GOVERNMENT OFFICES,
AGENCIES, DEPARTMENTS AS WELL AS HEADS OF
CORPORATIONS AND BUSINESSES, OR OF THEIR APPLICABLE
DEPARTMENTS OR OFFICES MUST MAKE AVAILABLE REPORTS
OF ADVANTAGES RECEIVED AND PERMITTED UNDER THIS LAW.
THE REPORTS MUST PROVIDE THE PARTICULAR DETAILS OF
THE ADVANTAGE RECEIVED INCLUDING BUT NOT LIMITED TO
WHO ARE THE PERSONS WHO GAVE THE ADVANTAGE, WHAT IS
THE PECUNIARY AMOUNT OF THE ADVANTAGES RECEIVED,
REASON FOR THE RECEIPT OF THE ADVANTAGES THE
REPORTS MUST BE REDUCED IN TABULAR FORMS EVERY
QUARTER FOR EASY REFERENCE, THE INFORMATION
OBTAINED BY HEADS OF GOVERNMENT OFFICES, AGENCIES,
DEPARTMENTS AS WELL AS HEADS OF CORPORATIONS AND
BUSINESSES, OR OF THEIR APPLICABLE DEPARTMENTS OR
OFFICES MUST BE KEPT FOR FIVE (5) YEARS.

THE REPORTS SHALL BE MADE AVAILABLE FOR INSPECTION,
COPYING, REPRODUCTION BY THE OFFICE OF OMBUDSMAN AT
REGULAR WORKING HOURS ON REGULAR BUSINESS DAYS.

SECTION 10. Separability Clause. - If any provision of this Act is declared invalid,
the other provisions not affected thereby shall remain valid.


wayvou

Section 11. Repealing Clause. - All laws, proclamations, executive orders, rules and
regulations or parts thereof inconsistent with this Act are hereby repealed, modified
or amended accordingly: Provided, That no person shall be deemed to be vested
with any property or other right by virtue of the enactment or operation of this Act

Section 12, Effectivity Clause. - This Act shall take effect fifteen (15) days after its
complete publication in the Official Gazette or in at least two (2) national newspapers
of general circulation whichever comes earlier.

Approved,