HOUSE OF REPRESENTATIVES
RECEIVED

SEVENTEENTH CONGRESS ) arc, 04 JUL 2018
OF THE REPUBLIC OF THE PHILIPPINES y Dare: a oS
Firs! Regular Sesion ) time: Akon

BY:

HOUSE OF REPRESENTATIVES
862 REGISTRATION UNIT

BILLS AND INDEX SERVICE

House Bill No. _

Introduced by Representative Victor A. Yap

EXPLANATORY NOTE

A public official, officer or employee sometimes finds himself charged in court for
alleged wrongdoings or damages caused to a party as a result of his discharge of his official
duties. A police officer may be charged of illegal arrest, a judge may be accused of
miscarriage of law, or « member of the Bids and Awards Committee (BAC) of a government
agency sued for abuse of discretion in the selection of winning bidders.

In these circumstances, the official concerned faces the difficulties of undergoing
litigation with all the emotional, financial and moral stres occasioned by it. In the end,
they may have suffered unjustly for their actions made by them in the course of performance
of their official duties. Fairness then dictates that they should be properly assisted and
indemnified by the institutions they represent.

Black’s Law Dictionary defines indemnification as the ‘action of compensating for
loss or damages sustained’, or reimbursement for public officers and employees from
financial loss, including court costs and monetary damages, for acts arising out of the
discharge of duties within the scope of their employment.

Asa nule, a public officer or personnel, whether judicial, quasi-judicial, or executive,
is not personally liable to one injured in consequence of an act performed within the scope
of his official authority, and in the line of his official duty. In order that acts may be done
within the scope of official authority, it is not necessary that they be prescribed by statute, or
even that they be specifically directed or requested by a superior officer, but it is sufficient if
they are done by an officer in relation to matters committed by law to his control or
supervision, or that they ate governed by a lawful requirement of the department under
whose authority the officer is acting,

However, a public officer is by law not immune from damages in his/her personal
capacity for acts done in bad faith which, being outside the scope of his authority, are no
longer protected by the mantle of immunity for official actions.

This bill secks to institutionalize the grant of benefits for all public officers and
personnel rendering service which shall be in the form of legal assistance and other forms of
legal protection, and reimbursement for all legal costs and expenses reasonably incurred by
such persons in any administrative, civil, or criminal action, suit or proceeding to which they
have been made a party by reason of the performance of their functions or duties. To be
indemnified, the actions of the public officer or employee must not be intentionally
wrongful acts or gross negligence.

Moreover, the proposed measure lays down the basic procedure through which
qualified claimants may avail of the indemnification benefits provided for in the proposed
Act


Finally, the bill enjoins government agencies and insteumentalities covered to
establish a special trust fund for the grant of indemnification benefits to their qualified
respective officers and personnel

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

ag

VICTOR A. ¥AI
Representative, 2 Distkict of Tarlac



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SEVENTEENTH CONGRESS )
OF THE REPUBLIC OF THE PHILIPPINES )
First Regular Session 5

HOUSE OF REPRESENTATIVES

House Bill No, 862

Introduced by Representative Vietor A. Yap

AN ACT
PROVIDING FOR THE INDEMNIFICATION OF PUBLIC OFFICERS AND
PERSONNEL BY REASON OF THE PERFORMANCE OF ‘THEIR OFFICIAL,
DUTIES AND FUNCTION

Be it enacted by the Senate and House of Representatives of the Philippines inCongress assembled.

SECTION 1. Title - This Act shall be known as the ‘Public Officers and
Personnel Indemnification Act of 2016”

SECTION 2. Declaration of Policies and Objectives - It is hereby declared the
policy of the State to establish an equitable indemnification package for all public officers
and personnel rendering service which shall be in the form of legal assistance and other
forms of legal protection and indemnification for all legal costs and expenses reasonably
incurred by such persons in any administeative, civil, or criminal action, suit or proceeding to
which they have been made a party by reason of the performance of their functions or
duties, unless they are finally adjudged in such action or proceeding to be guilty of an

offense. Toward this end,

‘ery government agency or instrumentality covered by this Act
shall:
4) Prescribe the rules and procedures in granting legal assistance and indemnification to

their respective officers and personnel as contemplated in this Act; and

lish the legal parameters for the effective implementation of the legal assistance
and indemnification provided for in this Act.
SECTION 3. Definition of Terms. ~ For purposes of this Act, the following

terms shall mean:

€) Indemnification ~ refers to the assistance or remuneration given to officers ot

personnel of the government agency ot instrumentality as contemplated in this Act

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for any loss, damage, or injury caused to them by reason of the lawful performance
of their duty;
b) Private Legal Assistance refers to the services of a private lawyer or external counsel

and members

engaged by or in behalf of the officers of the government agency or
instrumentality necessitated by the filing against them of any criminal or eivil action
or proceeding for acts made in connection with the lawful performance of their
functions.

©) Liability insurance ~ vefers to the insurance policy purchased and maintained by the
government agency of instrumentality in favor of its officer or personnel against any

liability asserted against or incurred by the person in any such capacity or arising out

such,

of the person’s status
SECTION 4. Indemnification of Officials and Personnel, - The government
agency or instrumentality concerned shall indemnify all officials and personnel for all costs

ses reasonably incurred by such persons in connection with any civil or criminal

or proceedings to which they may be or made a party by reason of the

performance of their functions or duties, unless they ate finally adjudged in such actions or
proceedings to be liable or guilty of gross negligence or grave abuse of discretion.

The legal assistance and indemnification shall not cover any action or suit initiated by
an officer or personnel of the government agency or instrumentality in his or her personal
capacity or on behalf of the government agency or instrumentality, unless such action,
proceeding, or claim was authorized by the government entity concerned,

SECTION 5. Coverage. ‘The provisions of this Act shall apply to all branches,

agencies, departments, bureaus, offices and instrumentalities of the Government, including

Government-Owned and/or Controlled Corporations (GOCCs), Government Financial

Institutions (GFls), State Universities and Colleges (SUCs), and Local Government Units

(LGUs
SECTION 6. Procedure for Granting Legal Assistance and Indemnification, -

a) The claimant(s) shall file their respective claim(s) for legal assistance or liability

insurance, as the case may be, with the head of the government agency or


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instrumentality concerned and shall secure the approval of the latter on the terms
and conditions of the assistance needed;

b) The head of the government agency or instrumentality shall be given at least fifteen
(15) to thirty (30) calendar days to examine, review, verify and validate the

authenticity of the documents pr

ented by the claimant;

©) Upon finding that all the requirements have been duly complied with and that all the
necessary documents submitted ate genuine, it shall then order the processing of the
claims and the subsequent release of funds for the approved claims;

d) Any expenses incurred in advance by the claimant arising from the performance of
his official functions in such capacity shall be subject to reimbursement upon
submission of the necessary documents and approval thereof by the head of the
government agency or instrumentality. If the concerned officer or personnel is

found to be not guilty for gross

negligence, misconduct, or grave abuse of discretion,
he shall liquidate his cash advances by presenting receipts of payment and other
necessary documents. On the other hand, if the concerned officer or personnel is
found to be guilty for gross negligence, misconduct, or grave abuse of discretion, he
shall pay the cash advances made through salary deductions or reimbursement,
SECTION 7. Establishment and Administration of a Trust Fund. ~ The
government agencies and instrumentalities shall establish a special trust fund for the grant of
legal assistance and indemnification as provided under this Act, Such funds allocated shall
not be used for purposes other than what ate provided for by this Act. Fees and any other
additional funds derived from other income-generating activities of the agencies may be used
to augment the funding source provided in this section
SECTION 8. Implementing Rules and Regulations The Department of
Budget and Management and the Department of Justice, shall, within ninety (90) days from
the effectivity of this Act, promulgate the rules and regulations for the effective

implementation of this Act.


SECTION 9. Separability. - 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 10. Repeating Clause. - All laws, decrees, orders, rules and
regulations, or parts thereof inconsistent with the provisions of this Act are hereby deemed
repealed or modified accordingly.

SECTION 11. Effectivity.. ‘This Act shall take effect fifteen (15) days after its full

publication in the Official Gazette or in at least two (2) newspapers of general circulation,

APPROVED.