Republic of the Philippines
HOUSE OF REPRESENTATIVES

Quezon City

Seventeenth Congress
First Regular Session

HOUSE OF REP! ‘“ATIVES
ii No BOBO

Introduced by Representative H. Harry L. Roque Jr.

EXPLANATORY NOTE
‘The Constitution, Article 2, Section 27 provides:
SEC, 27. The State shall maintain honesty and integrity in public
service and take positive and effective measures against graft and corruption.
Graft and corruption has placed a heavy burden in our country throughout our history.
In 2000, the World Bank estimated that the Philippines lost $48 billion (P1.968 trillion) to
corruption from 1977 to 1997. That amount would have addressed most of our current
problems, not the very least of them poverty. Each administration has had its own program in
fighting graft and corruption. Although cach has resulted into certain levels of success, we
have yet to accomplish a truly significant step in fighting corruption. According to economist
Alejandro Lichauco, the Philippines is perennially in crisis because of “the mortal mix of
corruption and poverty and a consequent loss of popular confidence in government and the
electoral process as instruments of change.” The fatal mix, he said, is so massive and so
intense as to have degenerated into a problem of mass hunger and corruption that is as
massive as the massive poverty.’ A 2007 World Bank study said that corruption in the

Philippines was perceived to be the worst among East Asia’s leading economies.*

' Cost of ippine Daily Inquirer. 12 February 2008,
® Dumlao, Doris. WB: Corruption in RP worst in East Asia. Philippine Daily Inquirer. 25 June 2008,


This bill seeks to provide our anti-graft and corruption agencies with a better tool
against graft and corruption by addressing the weaknesses of Republic Act No. 3019,

otherwise known as the “Anti-Graft and Corrupt Practices Act.”

Fa

H. HARRY L. ROQUE JR.

° This bill was originally filed by Senator Miriam Defensor Santiago in the Sixteenth Congress, First Regular
Session.

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Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City

Seventeenth Congress
First Regular Session

HOUSE OF REP! ‘ATIVES
iB No BOBS

Introduced by Representative H. Harry L. Roque Jr.

STRENG’ HENING REPUBLIC ACT NO. 3019,
OTHERWISE KNOWN AS THE ANTI-GRAFT AND CORRUPT PRACTICES ACT
Be it enacted by the Senate and the House of Representatives of the Philippines in
Congress assembled:
SECTION 1. Section 2 of Republic Act No. 3019, otherwise known as the Anti-Graft
and Corrupt Practices Act, is hereby amended to read as follows:

‘SEC. 2. Definition of Terms. — As used in this Act, that term —

(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.

(b) "Public officer” includes elective and appointive officials and
employees, permanent or temporary, whether in the classified or
unclassified or exempt service, WHETHER OR NOT receiving
compensation [, even nominal,] from the government as defined in

the preceding subparagraph.
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(©) "Receiving any gift” includes the act of accepting directly or

indirectly a gift from a person other than a member of the public
officer'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 value of the

gift is under the circumstances manifestly excessive}

(d) "Person" includes natural and juridical persons, unless the context

indicates otherwise.

SECTION 2. Section 3 (b) of the same Act is hereby amended to read as follows:
(b) Directly or indirectly requesting or receiving any gift, present,

share, percentage, or benefit, for himself or for any other person,
in connection with any contract, [or] transaction, OR
PROCEEDING between the Government and any other part,
wherein the public officer in his official capacity has to intervene
under the law.

SECTION 3. Section 3 (¢) of RA 3019 is hereby amended to read as follows:

(e) Causing any undue injury to any party, including the Government,
or giving any private party any unwarranted benefits, advantage or
preference in the discharge of his official administrative or
judicial functions through SIMPLE [manifest] partiality,
[evident] bad faith or gross OR inexcusable negligence. This
provision shall apply to officers and employees of offices or


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government corporations charged with the grant of licenses or

permits or other concessions,

SECTION 4. Section 3 (g) of the same Act is hereby amended to read as follows
(g) Entering, on behalf of the Government, into any contract or
transaction {manifestly and grossly] disadvantageous to the same,
Whether or not the public officer profited or will profit thereby.

SECTION 5, Section 4 (a) of the same Act is hereby amended to read as follows

SEC. 4. Prohibition on private individuals.

(a) It shall be unlawful for any person having family or close personal
relation with any public official to capitalize or exploit or take
advantage of such family or close personal relation by directly or
indirectly requesting or receiving any present, gift or material or
pecuniary advantage from any other person having some business,
transaction, application, request or contract with the government, in
which such public official has to intervene. Family relation shall
include the spouse or relatives by consanguinity or affinity in the
FOURTH [third] civil degree. The word "close personal relation”
shall include close personal friendship, social and fraternal
connections, and professional employment all giving rise to

intimacy which assures free access to such public officer.

SECTION 6. Section 5 of RA 3019 is hereby amended to read as follows:


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SEC. 4. Prohibition on certain relatives. ~ It shall be unlawful for the
spouse or for any relative, by consanguinity or affinity, within the
FOURTH [third] civil degree, of the President of the Philippines, the
Vice-President of the Philippines, the President of the Senate, or the
Speaker of the House of Representatives, to intervene, directly or
indirectly, in any business, transaction, contract or application with the
Government: Provided, That this section shall not apply to any person
Who, prior to the assumption of office of any of the above officials to
whom he is related, has been already dealing with the Government
along the same line of business, nor to any transaction, contract or
application already existing or pending at the time of such assumption
of public office, nor to any application filed by him the approval of
which is not discretionary on the part of the official or officials
concerned but depends upon compliance with requisites provided by
law, or rules or regulations issued pursuant to law, nor to any act
lawfully performed in an official capacity or in the exercise of a

profession

SECTION 7. Section 7 of the same Act is hereby deleted.

SECTION 8. Section 9 (b) of the same Act is hereby deleted.

SECTION 9. Section 11 of the same Act is hereby amended to read as follows:

SEC. 11. Prescription of offenses. - All offenses punishable under this

Act shall prescribe in TWENTY [fifteen] years.


SECTION 10. Section 12 of the same Act is hereby amended to read as follows:

SEC. 12. Termination of office. - ANY PROVISION OF LAW TO
THE CONTRARY, NOTWITHSTANDING, No public officer shall
be allowed to RECEIVE OR CLAIM RETIREMENT BENEFITS
[resign or retire] pending an investigation, criminal or administrative,
or pending a prosecution against him, for any offense under this Act,
R.A. No, 7080 “AN ACT DEFINING AND PENALIZING THE
CRIME OF PLUNDER” or under the provisions of the Revised
Penal Code on bribery, RESIGNATION OF A RESPONDENT
PENDING ADMINISTRATIVE INVESTIGATION ARISING
FROM ANY VIOLATION OF THIS ACT, R.A. NO, 7080, OR
PROVISIONS OF THE REVISED PENAL CODE (RPC) ON
BRIBERY SHALL NOT PREJUDICE THE SAID
ADMINISTRATIVE CASE AND SHALL PROCEED UNTIL

FINALLY RESOLVED,

SECTION 11. Section 14 of the same Act is hereby amended to read as follows:

SEC. 14. Exception. — [Unsolicited gifts or presents 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.] 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 12. Separability Clause. — If any provision or part hereof is held invalid or
unconstitutional, the remainder of the law or the provision not otherwise affected shall remain

valid and subsisting.

SECTION 13. Repealing Clause. — Any law, presidential decree or issuance,
executive order, letter of instruction, administrative order, rule, or regulation contrary to or
inconsistent with the provisions of this Act is hereby repealed, modified, or amended

accordingly,

SECTION 14. Effectivity Clause. - This Act shall take effect fifteen (15) days after its

publication in at least two (2) newspapers of general circulation,

Approved,