, , 
SIXTEENTH CONGRESS OF THE REPUBLIC 
OF THE PHILIPPINES 
Second Regular Session 
Introduced by Senator Poe 
AN ACT 
'14 DEC-9 P4:Z4 
ESTABLISHING THE PUBLIC ASSETS MANAGEMENT CORPORATION OF THE 
PHILIPPINES, PROVIDING FUNDS THEREFOR AND FOR OTHER PURPOSES 
EXPLANATORY NOTE 
One of the less visible yet very significant aspects of the justice system is the forfeiture of-
ill-gotten wealth and the seizure of proceeds and instruments of crime. In many cases, despite 
securing the conviction of an accused, the State could not claim a complete and meaningful 
victory because the criminal had already spirited away or consumed the fruits of his/her 
wrongdoing. Indeed, the interest of the State lies not only in ensuring that those who perpetrate 
unlawful activities will be punished accordingly. The State has an equally compelling interest in 
preventing criminals from profiting from the objects of their crime, and recovering the said 
. objects for the benefit of the offended parties and the public in general. 
Currently, there exists a regime of asset forfeiture and seizure embedded in the justice 
system. When violations of law and rules are committed, proceeds and instruments of crimes can 
be seized and eventually forfeited in favor of the State in the course of criminal and/or 
administrative proceedings. On the other hand, properties acquired by public officials above and 
beyond their legitimate income can be recovered by way of a civil action for forfeiture under 
Republic Act No. 1379. 
This is, however, only the front end of the system. Even if there are sufficient legal 
provisions for forfeiting assets, if the State is ill-equipped to manage, preserve and administer 
them, it cannot fully maximize the benefits of the laws. It is therefore imperative that the State 
devise a mechanism to efficiently and economically manage or dispose of seized or forfeited 
assets so that their values can be optimized for the good of the public. 
Under the present set-up, the management of assets under the custody of the government 
is neither systematic nor rational. Asset management is considered a mere auxiliary function of 
various government agencies; it is deemed merely incidental to said agencies' primary legal 
mandates. Being a highly technical and highly specialized independent field, asset management 
should be handled by qualified professionals, not by law enforcers, lawyers, prosecutors or 
judges. 
This Bill seeks to fill this gap in the justice system by strengthening the back end of the 
criminal prosecution process - the management, preservation, liquidation and disposition of ill-
gotten wealth and of instruments and proceeds of crimes. This Bill establishes the Public Assets 
Management Corporation of the Philippines - a centralized and specialized state corporation that 


.. 
will serve as custodian and administrator of seized or forfeited assets that are the subject of 
criminal, administrative or civil actions. To preserve the value of seized assets, the Corporation 
will also be given powers to sell or dispose of them with the authority of the court, even prior tQ 
a final order of forfeitnre, when it is in the best interests of justice to do so. Agencies cnrrently 
exercising administrative forfeitnre powers may likewise choose to tum over forfeited properties 
to the Corporation to produce better yields or returns. 
The benefits of delegating the management of seized and forfeited assets to a state 
corporation are four-fold: (I) it creates an independent revenue stream for the government and 
facilitates the efficient, economical, transparent, centralized and optimal liquidation or 
disposition of assets; (2) it eases the burdens of law enforcement agencies and the courts 
regarding the preservation and management of seized or forfeited assets, thereby allowing them 
to focus on their primary legal mandates and competencies; (3) it avoids conflicts of interests by 
taking the asset management function out of the formal justice process being handled by law 
enforcers, prosecutors and judges; and (4) it professionalizes the management of seized or 
forfeited assets by letting independent and highly-qualified industry practitioners handle the 
technical aspects of asset preservation, valuation, liquidation and disposition, on behalf of the 
public. 
The pnrsuit of justice against criminals and corrupt public officials must be done within a 
tight and closed loop. The State should ensnre the vigor not only of the law enforcement, 
. prosecution and judicial pillars, but also of the asset forfeitnre and asset management regimes so 
that all crimes can truly be high-risk and low-reward activities. 
Considering all the foregoing, approval of this bill is earnestly sought. 
~~7~ 
I rCEPOE 


SIXTEENTH CONGRESS OF THE REPUBLIC 
OF THE PHILIPPINES 
Second Regular Session 
S EN~ TE 
S. B. 
i:!503 
Introduced by Senator Poe 
AN ACT 
"14 
OEC -9 P 4 :24 
ESTABLISHING THE PUBLIC ASSETS MANAGEMENT CORPORATION OF THE 
PHILIPPINES, PROVIDING FUNDS THEREFOR AND FOR OTHER PURPOSES 
Be it enacted by the Senate and House of Representatives of the Philippines in Congress 
assembled: 
1 
SECTION 1. Short Title. - This Act shall be known as the Charter 
of the Public 
2 
Assets Management Corporation of the Philippines. 
3 
4 
SECTION 2. Declaration of Policy. - It is hereby declared the policy 
of the State to 
5 
ensure the efficient, economical, systematic, transparent and 
optimal 
preservation, 
6 
administration, management, liquidation and 
disposition of all assets seized or forfeited in 
7 
favor ofthe government in the 
course or as a consequence of criminal, administrative ana 
8 . civil actions. 
9 
10 
SECTION 3. Creation of the Public Assets Management Corporation of the Philippines. 
11 
- There is hereby created an independent central public 
assets management authority, which 
12 
shall be a government-owned body corporate attached to the Department of Finance (DOF) to 
13 
be known as the 
Public Assets Management Corporation of the Philippines (the-
14 
Corporation). It shall have the primary responsibility and objective of administering the 
15 .. 
country's asset management regime, ensuring the proper and prudent disposition of all 
16 
assets seized or forfeited in favor ofthe State. 
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SECTION 4. Corporate Governance. - The Corporation shall be governed by a Board 
19 
of Directors composed ofthe following: 
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(a) The Secretary of Finance, as ex officio Chair; 
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(b) The Secretary of Budget and Management as ex officio Vice Chair; 
23 
(c) Three (3) members with backgrounds in banking and financial services, insurance, 
24 
real estate, property appraisal, engineering and other technical fields, to be appointed 
25. 
by the President of the Philippines and to serve for a term of five (5) years; and 
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(d) Two (2) members with backgrounds in general business or other similar areas, to be 
27 
appointed by the President of the Philippines and to serve for a term of five (5) years. 
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The operations and management of the Corporation shall be 
conducted 
by 
an 
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Executive Committee composed of the following: 
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(a) A President; 
33 
(b) An Executive Vice President; 
34 
(c) A Senior Vice President for Operations; 
35 
(d) A Senior Vice President for Finance; 
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(e) A General Counsel and Corporate Secretary; and 


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(f) Three (3) Vice Presidents in charge of Asset Management, Asset Valuation and Asset 
Liquidation/Disposition; all of whom shall be appointed by the Chair upon 
endorsement by the Board of Directors. 
5 
SECTION 5. Corporate Powers. - The Corporation shall have the 
following 
6 
corporate powers: 
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(a) Accept and take title to, custody over and possession of such assets and other 
properties seized and/or forfeited by law enforcement, judicial and other 
governmental entities in favor of the State in the course of criminal, civil, 
administrative, anti-corruption, anti-money laundering or similar proceedings, subject 
to the following rules: 
1. Assets seized by administrative agencies. In cases of administrative forfeiture, the 
forfeiting agency has the option of either: 
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1.1. disposing of forfeited assets in accordance with the authority inherent 
in 
18 
their law enforcement mandates and pursuant to their established systems and procedures, or 
19 
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1.2. turning over the same to the Corporation, especially in cases 
where 
the 
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optimal management or disposition of assets require technical 
expertise and competence; 
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2. Assets forfeited in favor of the State. In cases where assets have been forfeited in 
favor of the State by virtue of a final and executory order of a court, the 
Corporation shall automatically take custody over the same for proper 
administration andlor disposition; and 
3. Assets seized and subject of ongoing litigation. In cases where assets are seized in 
connection with an ongoing criminal or forfeiture litigation, said assets shall be 
considered in custodia legis and may be placed nnder the physical custody of the 
Corporation; the agency which seized the same, or such other person or office as 
the court may designate, in which case, the designated custodian is deemed 
constituted as an agent of the court. 
35 
3.1. Prior to an official designation of a custodian by the court, seized 
assets 
36 
are deemed ipso jure under the accountability and fiduciary 
responsibility of the agency 
37 
which seized the same, or the agency with the 
duty 
to 
take 
possession 
thereof 
III 
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accordance with existing laws and rules. 
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3.2. Upon motion by any interested' party, including the Corporation, 
the 
41 
comi shall conduct a summary hearing, to be concluded within twenty 
(20) days from the 
42 
filing of such motion, to determine whether seized assets 
should be sold or disposed of, if 
43 
doing so would best serve the interests of 
justice. The court must render a ruling on the 
44 
motion no later than ten (l0) days from the conclusion ofthe summary hearing. 
45 
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3.3. In the event that the seized assets are liable to progressive 
wasting, 
47 
dissipation, devaluation, depreciation or deterioration, or cannot 
reasonably be conserved in a 
48 
cost-efficient manner, the court shall order a disposition pendente lite unless it is established by 
49 . competent evidence 
during the summary hearing that such disposition will cause undue injury 
50 
or 
will adversely affect the substantive rights of the parties or any third party, 
51 
provided, that an order of the court to sell or dispose of seized assets 
pendente 
lite 
52 
shall not affect the trial of the case or be construed as an 
adjudication of the merits of the 
53 
parties' claims and defenses. 
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3.4. The proceeds of the sale of seized assets disposed of pendente lite 
shall 
56 .. 
be kept in a separate account and turned over to the custody of the court, for eventual release to 
57 
the prevailing party or to whoever may be 
adjudged as lawfully entitled thereto. 


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(b) Enter into contracts and/or execute any deed or act in furtherance of its mandate to 
3 
efficiently, economically and prudently manage, administer, preserve, appraise, 
4 
liquidate and/or dispose of assets under its custody; 
5 
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(c) Execute and deliver, on behalf of the Government, the deeds of sale, contracts and 
7 
other instruments as may be necessary or appropriate to convey title to such assets; 
8 
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(d) Sell or dispose of seized or forfeited assets, subject to the rules provided in paragraph 
10 
(a) of this Section, without need of securing prior clearances from other governmental 
11. 
entities, provided, that all such transactions shall be subject to subsequent review 
12 
under existing audit rules and regulations, and shall be guided by principles of 
13 
fairness, prudence, accountability and transparency; 
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(e) Construct, own, lease, operate and maintain various forms of properties as well as 
infrastructure facilities; 
(f) Receive donations, grants, bequests and assistance of all kinds from local and foreign 
governments and private sectors and utilize the same; 
(g) Hire and retain such personnel complement as may be necessary for the execution of 
its mandate; engage external services as the exigencies of particular cases may 
require, ,including, but not limited to, technical consultants, acconntants, auditors, 
counsels, appraisers, risk managers, curators, conservationists and others; 
(h) Adopt, amend, or change its by-laws; to adopt, alter and use a seal; to sue; and to 
exercise the general powers of a corporation mentioned in the Corporation Code of 
the Philippines, insofar as such powers are not inconsistent or incompatible with the 
provisions of this Charter; and 
(i) Conduct any such act, consistent with law, for the preservation of any seized or 
forfeited asset, consistent with the professional and economic management of the 
same. 
35 
SECTION 6. Personnel. - The Board of Directors shall provide for an organization and 
36 
staff of officers and employees of the Corporation and, upon recommendation of the President, 
37 
fix their remunerations and other 
emoluments. All positions in the Corporation, including _ 
38 
consultancies, shall 
be governed by the compensation, position classification system and 
39 ' 
qualification standards approved by the Board of Directors based on a comprehensive job 
40 
analysis of actual duties and responsibilities. The 
compensation plan shall be comparable to 
41 
the prevailing compensation plans 
in the private sector and shall be subject to periodic review 
42 
by the Board of Directors once every two (2) years, without prejudice to yearly merit reviews or 
43 
increases based on the Corporation's productivity and profitability. The Corporation shall, 
44 
therefore, be exempt from existing laws, rules, and regulations on compensation, position 
45 
classification and qualification standards. The Corporation shall, however, endeavor to make its 
46 
system conform as possible to the principles under the Compensation and Position Classification 
47 
Actof1989. 
48 
49 
No officer or employee of the Corporation subject to Civil Service Law 
shall 
be 
50' 
dismissed except for cause as provided by law. 
51 
52 
SECTION 7. Proceeds of Operations. - Proceeds derived from the management or 
53 
disposition of seized or forfeited assets shall be remitted by the Corporation to the National 
54 
Treasury or to the proper governmental office or agency as may be required by law, provided, 
55 
the Corporation shall be entitled to deduct therefrom the following: (1) actual expenses incurred 
56 
in the conservation, administration and disposition of said assets, and (2) an amount equivalent to 
57 
ten per cent (10%) of the net proceeds as management fees. Management fees may be adjusted 


1 
based on relevant industry and market standards and considerations, provided, that any 
2 
adjustment must be 
subject to a detailed study and approved by the Board of Directors. All 
3 
earnings retained by the Corporation shall be properly and prudently administered with a view to 
4 
preserving its viability. 
5 
6 
SECTION 8. Reimbursements for Expenses. - The Corporation shall be entitled to 
7 
reimbursement of actual and necessary costs for the maintenance, preservation and conservation 
8' 
of seized assets in the event that a court of law adjudicates the same against the State, provided, 
9 
such costs shall be reimbursed by the prevailing party in an amount to be equitably fixed by the 
10 
court, provided further, the Corporation shall render periodic reports to the proper courts 
11 
regarding the status of assets under its custody and the costs incurred for their maintenance, 
12 
preservation and conservation, the same to be considered by the said courts for purposes of 
13 
fixing the amount of reimbursements due the Corporation at the conclusion of trial. 
14 
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SECTION 9. Relations with Forfeiting Agencies. - The Corporation may enter into 
16 
. Memoranda of Agreement with relevant forfeiting agencies to define their respective roles, 
17 
functions and financial responsibilities relative to the management, adrninistration, liquidation 
18 
and disposition of seized or forfeited assets, and the transfer and payment of the proceeds of 
19 
disposition. 
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SECTION 10. Immunity from Suit. - The Corporation shall not be subject to criminal, 
22 
civil or administrative suits in connection with any act done or omitted by it in the regular 
23 
exercise of its functions and powers, provided, it acts in good faith and in consonance with the 
24 
State policy herein set forth. 
25 
26 
SECTION 11. Third Party Claims. Any and all third party claims arISIng 
from 
any 
27 
seized or forfeited asset under the Corporation's custody shall be directed to, and resolved by, 
28 
such agency, tribunal or court hearing the case. 
29 
30 
SECTION 12. Capitalization and Initial Funding. - The capital of the Corporation shall 
31 
be Five Hundred Million Pesos (Php 500,000,000.00), to be fully subscribed by the Government 
32 
of the Republic of the Philippines, 
One Hundred Million Pesos (Php 100,000,000.00) of which 
33 . 
shall be fully paid for by the Government within three (3) years upon the effectivity of this 
34 
Charter and the balance to be paid for within a period of three (3) years thereafter, in such 
35 
manner and form as the Government, through the Secretary of Finance and Secretary of Budget 
36 . and Management, may thereafter determine. The initial funding for the operations of the 
37 
Corporation for the first year following the effectivity of this Charter shall be advanced by the 
38 
DOF. Thereafter, the capitalization of the Corporation shall be paid for by the Government by 
39 
way of appropriations from Congress. 
40 
41 
SECTION 13. By-Laws and Rules. - The Corporation shall adopt its by-Laws, rules of 
42 
procedure and other regulatory issuances within ninety (90) days from the effectivity of this 
43 
Charter, and as often thereafter as exigencies may require. 
44 
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SECTION 14. Transitory Provision. - Upon the enactment of this Charter, 
the 
46 
Privatization and Management Office (PMO) shall wind up its affairs and be dissolved pursuant 
47 
to applicable laws and rules. The existing 
staff of the PMO, however, shall be absorbed by the 
48 
Corporation and converted ipso jure as its core unit, provided, all PMO officers and employees 
49 
who transition into the Corporation's staff shall not suffer any diminution of benefits or 
50 
disturbance of tenure, provided further, all PMO officers and employees who choose not to be 
51 
part of the Corporation shall be entitled to separation benefits as provided by law. For the 
52 
purpose of this Section, the Corporation shall not be regarded as a continuation of the corporate 
53 
personality of the PMO. 
54 
55 
SECTION 15. Separability Clause. - If any provision of this Charter shall be declared 
56 
unconstitutional, any other provision not affected thereby 
shall remain in full force and effect. 
57 


1 
SECTION 16. Repealing Clause. -All laws, decrees, orders, rules and 
regulations 
or 
2 
parts thereof inconsistent with this Charter are hereby repealed or modified accordingly. 
3 
4 
SECTION 17. Effectivity. - This Charter shall take effect within 
fifteen (15) days after 
5 
its publication in at least two (2) newspapers of general circulation. 
6 
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9 
Approved,