INTRODUCED BY SEN. JINGGOY EJERCITO ESTRADA 
EXPLANATORY NOTE 
It is the avowed principle of Republic Act No. 6713 that the State shall 
promote a high standard of ethics in public service. Public officials and 
employees shall, at all times, be accountable to the people and shall discharge 
their duties with utmost responsibility, integrity, competence and loyalty, act with 
patriotism and justice, lead modest lives, and uphold public interest over personal 
interest (Section 2, R.A. No. 6713). 
Pursuant to this policy, this bill seeks to expand the prohibited acts and 
transactions provided in Section 7 (b) thereof, by providing for a specific 
provision exclusively applicable to members of the Cabinet. By virtue of the 
doctrine of qualified political agency, a member of the Cabinet is considered as 
the alter ego of the President. As such, they acquire vital information not 
otherwise available to others. This fact makes them very attractive to foreign 
corporations, who are all too eager to retain them as their consultants after their 
stint with the government. Thus, in order to dispel any doubt that they take 
advantage of information derived by virtue of their Cabinet position, they should 
be prohibited from employment by foreign corporations doing business in the 
Philippines for a period of five (5) years. 
By prohibiting their employment for a period of five (5) years, there is the 
assurance that there will be no transfer of privileged information acquired by the 
Cabinet member during his stint as public servant to his new employer. This is in 
consonance with the public servant's mandate that utmost loyalty is required of 
him, because to do otherwise is detrimental to national interest. 
In view of the foregoing, approval of this bill earnestly requested 
ESTRADA 
Senator 


FOURTEENTH CONGRESS OF THE REPUBLIC 
First Regular Session 
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OF THE PHILIPPINES 
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INTRODUCED BY SEN. JINGGOY EJERCITO ESTRADA 
AN ACT 
AMENDING SECTION 7 (b) OF REPUBLIC ACT NO. 6713, OTHERWISE 
KNOWN AS THE CODE OF CONDUCT AND ETHICAL STANDARDS FOR 
PUBLIC OFFICIALS AND EMPLOYEES, SO AS TO LENGTHEN THE PERIOD 
OF PROHIBITED EMPLOYMENT IN THE CASE OF MEMBERS OF THE 
CABINET 
Be it enacted by the Senate and House of Representatives of the Philippines in 
Congress assembled: 
SECTION 1. Section 7, subparagraph (b) of Republic Act No. 6713 is 
hereby amended to read as follows: 
"Section 7. Prohibited Acts and Transactions. - In addition to acts 
and omission of public officials and employees now prescribed in the 
Constitution and existing laws, the following shall constitute prohibited acts 
and transactions of any public official and employee and are hereby 
declared to be unlawful: 
(a) xxxxx 
(b) Outside employment and other activities related thereto. Public 
officials and employees during their incumbency shall not: 
(I) 
Own, control, manage or accept employment as officer, 
employee, consultant, counsel, broker, agent, trustee or 
nominee in any private enterprise regulated, supervised 
or licensed by their office unless expressly allowed by 
law; 
(2) Engage in the private practice of their profession unless 
authorized by the Constitution or law, Provided, That 
such practice will not conflict or tend to conflict with their 
official functions; or 
(3) Recommend any person to any position in a private 
enterprise, which has a regular, or pending official 
transaction with their office. 
These prohibitioris shall continue to apply for a period of one (1) 
year after resignation, retirement or separation from public office, except in 
the case of subparagraph (b) (2) above, but the professional concerned 
cannot practice his profession in connection with any matter before the 


office he used to be with, in which case the one-year prohibition shall 
likewise apply: PROVIDED, THAT IN THE CASE OF MEMBERS OF THE 
CABINET, THE PROHIBITION FOR EMPLOYMENT IN ANY PRIVATE 
ENTERPRISE SHALL INCLUDE EMPLOYMENT WITH FOREIGN 
GOVERNMENTS, 
CORPORATIONS, 
OR 
ENTITIES, AND 
THE 
PROHIBITION SHALL BE FOR A PERIOD OF FIVE (5) YEARS FROM 
THE DATE OF RESIGNATION, RETIREMENT OR SEPARATION FROM 
SAID PUBLIC OFFICE: PROVIDED, FURTHER, THAT AS USED 
HEREIN, THE TERM EMPLOYMENT SHALL MEAN HIRING SUCH 
PERSON, WHETHER AS AN OFFICER, EMPLOYEE, CONSULTANT OR 
TRAINOR OR RESOURCE PERSON.” 
SEC. 2. Repealing Clause -All laws, orders, rules and regulations which 
are inconsistent with or contrary to the provisions of this Act are hereby amended 
or repealed accordingly. 
SEC 3. Effectivity Clause - This Act shall take effect fifteen (15) days 
after its publication in two (2) newspapers of general circulation. 
Approved,