HOUSE OF REPRESENTATIVES
Q ‘i

FIFTEENTH CONGRESS
First Regular Session
494

Re
H. B. No.

Introduced by HONORABLE JUAN EDGARDO “SONNY” M. ANGARA
EXPLANATORY NOTE

From its creation as a mere division under the Department of Justice during the
Commonwealth Period, the Office of the Government Corporate Counsel (OGCC) has
grown over the years into a distinct and strategic office which oversees and addresses
the legal concems of approximately 600 govemment-owned and  -controlled
corporations, government instrumentalities exercising corporate powers, government
financial institutions and government corporate entities, their subsidiaries and corporate
offsprings.

Executive Order No. 282, otherwise known as the Administrative Code of 1987,
has defined the mandate of the OGCC, declaring that the OGCC shall act as the
“principal law office” of all government corporations, and shall exercise control and
supervision over all legal departments or divisions thereof maintained separately.
Subsequent executive issuances further strengthened and enhanced the OGCC’s
mandate and responsibilities over the legal affairs of the various goverment
corporations.

In the recent case of Land Bank of the Philippines vs. Luciano-Paniilio, the
Supreme Court ruled that the statutory role of OGCC as principal law office of
government corporations is a core pillar of public policy management. In fact, the
escalating demands of govemment corporate activities and transactions coupled with
the foregoing legal developments further underscore the importance of the OGCC's
mandate. Records would show that the OGCC responds to and handles an increasing
number of requests for legal advice and cases per year, in addition to the performance
of its adjudicatory and other functions. In reality, however, the work that the OGCC does
is currently performed by its present complement of only fifty-seven (57) lawyers —- which
includes the Goverment Corporate Counsel himself -- and augmented by administrative
support personnel of sixty-nine (69) employees.

The proposed measure therefore seeks to strengthen the OGCC by increasing
the number of its personnel and, at the same time, adjusting their compensation and
benefits correspondingly to ensure that their organization shall be able to adapt to the
changing conditions of and increasing demand for legal service. Suffice it to say that
government officials and employees entrusted with the legal concerns of government
corporations need to be properly equipped with the necessary training and preparations
and, at the same time, be adequately compensated to effectively fulfil their duties and
obligations to the State and the Filipino people.

In view of the foregoing reasons, the expeditious approval of this proposed bill is
eamestly sought.

JUAN EDGARD@“SONNY® M. ANGARA
Representative
Lone District, Province of Aurora


FIFTEENTH CONGRESS OF THE +)
REPUBLIC OF THE PHILIPPINES —)
First Regular Session )

on
H.B. No. 494

Introduced by Honorable JUAN EDGARDO “SONNY” M. ANGARA

AN ACT
TO STRENGTHEN THE OFFICE OF THE GOVERNMENT CORPORATE
COUNSEL, BY RE-DEFINING, EXPANDING, STRENGTHENING,
RATIONALIZING AND FURTHER PROFESSIONALIZING ITS
ORGANIZATION, UPGRADING EMPLOYEE BENEFITS AND
APPROPRIATING FUNDS THEREFOR

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

Congress assembled:
SECTION 1. Declaration of Policy. - It shall be the policy of the State to protect and
promote the welfare, rights and interests of government-owned and -controlled
corporations, their subsidiaries, other corporate offsprings, including government
acquired asset corporations, government corporate entities and government
Instrumentalities with corporate powers, government financial institutions, and other
government entities, agencies and offices hereafter referred to as “government
corporations”

Toward this end, the State shall require the improvement of legal services in the
government to efficiently and effectively address the expanding needs of these
government corporations in accordance with its initiative towards an improved fiscal
management and good corporate governance.

SECTION 2. Jurisdiction and mandate - Any law to the contrary

notwithstanding, the Office of the Government Corporate Counsel ("OGCC”)


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shall be tha legal counsal and principal taw office of all governmant

corporations. All government corporations ehall refer to the OGCC the

following:
a)
bh
c}

Ail tage} questions for opinion and advice;

Prior to their execution, all contracts for review; and

All cases for representation before regular courts, quesi-judiclal
bodies, admintatrative agencies end arbitral tribunals, Provided
That. the Government Gorporate Counsel (“GCO”) may thereaiter
authorize the legal department of the government corporation as
collaborating counsel te handle cases, 2s the urgency or

expediency of circumstances may warrant.

In addition, the OGCO shall:

a)

by

Coneiliate, mediate, arbitrate or adjudicate all disputes or
controversies exclusively between government corporations;
Exercise control and supervision over the legal departments of
ali government corporations;

‘Approve the engagement of servioes of private lawyers by the
government corporations; and

Enforce the Property Insurance Law pursuant to Republic Act
No, 866, a8 amended by Presidential Decree No. 246, In domestic
oF International transactions.

‘The OGCC shail be an independent and autonomous office attached to

the Department of Justice, Al! opinions and issuances of the OGCC shall be

binding on all government corporations.


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SECTION 3. Expansion and Upgrading of Positions - The GEC shall
have a cabinet rank and the sams prerogatives, salary, allowances, benefits
and privilages as the Presiding Justlos of the Gourt of Appeals. He/she shall
bo aesisted by a Deputy Government Corporate Counsel {*DGCC") and twelve
(12) Assistant Government Corporate Counsela (“AGCC”) who shail have the
rank, salary, allowances, retirement and benefits, and privileges of an
Assoctlate Justice of the Court of Appeals.

No person shail be appointed GCG, DECC or AGCO unless helene Is a
natural-born oltizen of the Philippines and, for at least ten (10) yoare, has
been engaged in the practice of law in tha Philippines.

The number, rank, qualifications for appointment, ealary, allowances,
retirement and other benefits, and privileges of the ollter members of the
Jaga) staff shail pe 2e follows: " -

a) Twenty (20) Government Corporate Attorney JY (the “GCA 1V") who
shall have the rank, salary, allowances, retirement and benefits,
and privilagas of a Regional Trial Court Judge. No person shall he
appointed GCA IY unless he/she is @ natural-born citizan of the
Philippines anc, for at least elght (8) yoars, has bosn engaged In the
practice of law In the Philippines;

b) Twenty (20) Government Corporate Attorney Ill (the GGA NI") who
shall have the rank, salary, allowences, retirement and benefits,
and privileges of a Metropolitan Trlal Court Judge. No person shail
‘be appointed GCA Ii unless he/she Is a natural-born citizen of the
Philippines and, for ai least five (5) years, has been engaged In the
practios of law in the Philippines;


©) Twenty (20) Government Corporate Attorney i! (the “GCA It") who
shall have the rank, salary, allowances, retirement and benefits,
and privileges of a Munlelpal Trial Court Judge in Cities, No parson
shall be appointed GCA Ii unless helshe Is a natural-born citizen of
the Philippines and, for at least four (4) years, has bean engaged In
the practice of law In the Philippines;

4) Ten (10) Government Corporate Attorney 1 (the “GCA M) who shat
have the rank, salary, allowances, retirement and benefits, and
privileges of 2 Municipal Tria) Court Judge, No person shall be
appolited GCA | unlese helehe Je a natural-born oltizen of the
Phitippines and, for at east thres (8) years, has been engaged in
the practice of law in the Philippines

e) Seven (7). Assoviate Government Corporate Attorney Il who must be
members of the Philippine Bar and, for at least two (2) years, has
boon engaged in the practiae of law in the Philippines; and,

fl Five (6) Associate Government Corporate Attorney } who must be
members of the Philippine Bar and, for at least one (1) year, has
been engaged In the practice of law in the Philippines.

‘The GCC shall Gerve for a fixed term of six (6) yoars rackoned irom the
date of hislher appointment. ‘The fixed term of the GCC shall apply and
commence to appointments to the sald position beginning July 4, 2010.

‘The GCS, DGCS and AGCC shall be eppolnted by the Praeident of the
Philippines. the other members of the tegal staif and administrative

personnel shail be appointed by the GCC. Appointments of the DCC, AGCC


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and other membars of the Jegal staff shall be deemed permanent upon
compllance with the qualification standards heretofore stated.

‘Tha administrative structure of the OGCC shell be organized into the
Finance and Accounting Services, the Human Resource and Management
Serviess, the Case and Records Management Services, the Library
Management and Information Technology Sorvices and the Property and
Supply Services.

‘The legat and nontegal staff of the OGGE occupying the positions
affected by the changes embodied In this Act at the thme of Its approval shall
‘thereatter oooupy and dlechargo the duties and functions of the upgraded
positions and receive and recelve the corresponding salary and benefits
without necessity of now appointment.

SECTION 4. Compensation - The basic monthly compensation nf the
Jegal staff shall be as foliows: "

Position Salary Stade
from ie
Government Corporate Counsel 30 a4
‘Deputy Government Corporate Counsel 28 a0
Assistant Government Corporate Counsel §=— 28 30
‘Government Corporate Attornay IY 28 29
Government Corporate Attorney Il} 27 28
Government Corporate Attorney 28 27
‘Government Corporate Attorney t 25 26
Associate Government Corporate Attorney! — 22 2

Assoolate Government Cosporate Attornay ll 18 28


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The non-legal personne) shall have the same compensation as that of

thelr counterparts in the Office of the Solloitor General and Court cf Appeals.

‘The salaries and privileges of the personne! of the OGCC granted

under this Act may further be Increased to match any corresponding

Increase in salaries and privileges subsequently grantad to their respective

counterparts in the judiciary.

SECTION 5. Personne! benefits and privileges - Provielona of other

Jaws to the contrary nobwtihstanding, the OGCC may provide its employees

the following beneNts:

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Health cave services through 2 health maintenance erganization
(HMO). Expenses for the manciatory medical annual check-up of
the GCC, the DGCC and the AGCC shall be for the account of the
office,

Accident insurance Yor all employees to be procured by the office
at Its own expenes during travels while In the performance of
official duties;

‘Without prejudice to the efficiency of the service, scholarships
for deserving employees on official time and at the expense of the
office to upgrade their knowledge and skills; Provided That,
scholars under this proviaion shall be selected on the basis of

merit as determined by competitive examination; .

A provident fund which shall conslst of, but not be limited to
contributions made by the office and by lis lawyers and
employees to @ common fund for the payment of benefits to such
lawyers or employees or thelr respective beneficlarlesihelrs.


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SEGTION 8. Seminar and other Professional Fees - Subject to
avallability of funds, fees for relevant seminars, es well ae professionel
membership fees for lawyers, registration fees and related miscellansous
‘expenses Inourred In completing the mandatory continuing legal education
(NICLE) shall be borne by the office. Professional membership, registration
teas Including those for mandatory continuing professional education (OPE),
and related miecellanaous expanses of other employees holding positions for
which a professtonal license ts required by the office, shail also be borne by
the oGcC,

SECTION 7. Transportation Banefis - Subject to availablity of funds,
employees shal) be provided with contracted transportation services until
such time ae the offlcs can procure additional motor vehicles for this
purpose.

SECTION 8. Other Benefits - Provisions of other !awe to the contrary
notwithstanding, the legal staff of the OGCC are allowed to recelve
allowances and honoraria from its client-government corporations.
Employees of the OGCC may likewise be extended such benefits and
privileges as are given to the employees of thelr ollenis.

‘When the exigenoy of the service 80 require, any member of the legal staff
may be designated by the GCC to act In concurrent capacity as corporate
officer of, or assigned to perform special or additional tasks In any of the
client government corporations of tha OGCO and by virtue of such
designation or assignment, receive such additional compensation and
Privileges as may be granted them by the government corporation

soncarmed,


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SECTION 9. Attornay’s fees and Specie! Assessment - The OGCC Is
authorized to recelve twenty percent (26%) of all the money clalms collected
by or awardedladjudged to cllent-government corporations in addiilon tq the
alorney's fees awarded by a coust, tribunal or panel, ‘Including
awardeljudgments, stipulated under courkapproved compromise
agreements. ‘the OGCC Je hereby utilized to use such awards and attorneys
tees to meet contingencies, obligations and undertakings, or for employee
salaries, allowances, other benefits and incentives, necessary of proper to
promote efflolency In the service ee delarmined by the GOC subject to the
rulee and regulations of the Commiselon on Audit. and the Department of
Budget and Management may authorize.

The GCC Js likewise authorized to make special aezessments upon Its
cllent government corporatione to elmilarly meet such contingencies,
obligations and undertakings, or to provide for employee salaries,
allowances, other benefits and Incentives, a8 may be warranted of proper as
dotarmined by the GCC.

SECTION 10. Special Allowance - The GCC, DECC, AGCC and other
members of the legal staff may be granted special allowances In such
amounte to be determined by the GCC to linplement the salary Increases, The
arant of special allowances shall be implemented uniformly in euch amounte
and up to extent only that can be eupported by the funding source epecified in
Saction 14 hereof.

SECTION 14. Funding - The funds required for the implementation of
this Act Inchiding employee benefits shell be taken from:


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1, The Twenty percent (20%) share of the money claims collected or
awarded in Judgments In favor of government corporations and
all Attorney's fees authorized to be received by the OGCC
pursuant to this Act and Executive Order No. 292 or the Revised
Administrative Code of 1987;

I, Special assessments mace by the GCC upon olient government
corporations; and

JIL Other revenues, savings, fees generated and collected and
donationa recelved by the OGCC.

SECTION 12. Franking Privilege - Ai! official mattere and telagrame of
the OGCC addressed for delivery within the Philippines shall be recelved,
transmitted and delivered free of charge Provided, That such mall matters
when addressed to private persons or non- government offices shall not
‘exceed one hundred and twenty (120} grame,

SECTION 13. Appropriations - The amount needed for omployses’
salaries, mandatory allowances and benefits under other laws aid office
expansion shall be appropriated in the budget of the OGCC under the annual
General Appropriations Act.

SECTION 14. fmplomenting Rules and Regulations - Within sixty (60)
days from the epproval of this Act, the GCC In consultation with the Gecretary
of the Justice and Secretary of Budget and Management, shall promulgate
such rules and regulations as may be necessary to carry out the provisions
of thle Act.

SECTION 15, Repealing Clause- Provisions of Executive Order No. 282
or the Revised Administrative Code of 1987, as amended, Executive Order

9


No. 878 dated March 4, 1883, Prestdentla) Decree No. 1445 dated June 9,
1978, Republlo Act No. 6000 dated August 4, 1968 and other pertinent laws,
rules and regulations shall remain In force and effect unless otherwise
contrary or Inconsistent with the provisions of this Act. F
SECTION 18, Separabillly Clause - Mf any of the provisions ofthis Actis

declared invalid or unconstitutional, the provisions not affected thereby shall
continue to bs in full force and effect.

SECTION 17. £ffectlvity - This Act shail take effect after fifteen (18)
days from Its publication in a natlonal newspaper of general circulation.
Approved.