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FIFTEENTH CONGRESS OF THE REPUBLIC 
) 
OF THE PHILIPPINES 
) 
First Regular Session 
) 
SENATE 
S. No. 1603 
EXPLANATORY NOTE 
The Constitution, Article II, Section 27 provides that: 
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 had 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 
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and corruption. Although each has resulted into certain levels of success, we have yet to 
accomplish a truly significant step in fighting corruption. Economist Alejandro Lichauco has said 
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 poverty 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. I 
A World Bank study released last June said that corruption in the Philippines is perceived 
to be the worst among East Asia's leading economies. The Philippines is now at the bottom of the 
list of East Asia's 10 largest economies when it comes to control of corruption, edged out by 
Indonesia, which scored the worst in the region in the 2007 survey. 2 
President Gloria Macapagal Arroyo herself recognizes the need to intensify the fight 
against graft and corruption. Early this year, she has allocated more than three billion pesos in 
I Cost of corruption. Philippine Daily Inquirer. 12 February 2008. 
2 Dumlao, Doris. WB: Corruption in RP worst in East Asia. Philippine Daily Inquirer. 25 June 2008. 


funds to fight graft and corruption in our country. In her State of the Nation address this year, she 
asked the Congress to enact a more stringent Anti -Graft Act. 
We need to build on our experience in our fight against graft and corruption in order to 
capitalize in what we have so far achieved. 
This bill seeks to provide our anti-graft and corruption agencies with a better tool against 
graft and corruption by addressing the weaknesses of R.A. No. 3019, otherwise known as the 
"Anti-Graft and Corrupt Practices Act." 3 
. J This bill was originally filed in the Fourteenth Congress, Second Regular Session 


FIFTEENTH CONGRESS OF THE REPUBLIC 
) 
OF THE PHILIPPINES 
) 
First Regular Session 
) 
SENATE 
S.No. 1603 
Introduced by Senator Miriam Defensor Santiago 
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AN ACT 
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STRENGTHENING THE REPUBLIC ACT NUMBER THREE THOUSAND NINETEEN, 
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OTHERWISE KNOWN AS THE ANTI-GRAFT AND CORRUPT PRACTICES ACT 
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Be it enacted by the Senate and the House of Representatives of the Philippines in 
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Congress assembled: 
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SECTION 1. Section 2 ofRA 30i9, otherwise known as the Anti-Graft and Corrupt 
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Practices Act, is hereby amended to read as follows: 
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SEC. 2. Definition of terms. - As used in this Act, that term -
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(a) "Government" includes the national government, the local governments, 
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the government-owned and government-controlled corporations, and all 
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other instrumentalities or agencies of the Republic of the Philippines and 
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their branches. 
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(b) "Public officer" includes elective and appointive officials and employees, 
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permanent or temporary, whether in the classified or unclassified or 
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exempt service, WHETHER OR NOT receiving compensation [, even 
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nominal,] from the government as defined in the preceding subparagraph. 
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(c) "Receiving any gift" includes the act of accepting directly or indirectly a 
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gift from a person other than a member of the public officer's immediate 
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family, in behalf of himself or of any member of his family or relative 
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within the fourth civil degree, either by consanguinity or affinity, even on 


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the occasion of a family celebration or national festivity like Christmas[, if 
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the value of the gift is under the circumstances manifestly excessive]. 
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(d) "Person" includes natura!' and juridical persons, unless the context 
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indicates otherwise. 
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SECTION 2. Section 3 (b) ofRA 3019 is hereby amended to read as follows: 
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(b) Directly or indirectly requesting or receiving any gift, present, share, 
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percentage, or benefit, for himself or for any other person, in connection 
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with any contract, [or) transaction, OR PROCEEDING between the 
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Government and any other part, wherein the public officer in his official 
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capacity has to intervene under the law. 
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SECTION 3. Section 3 (e) ofRA 3019 is hereby amended to read as follows: 
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(e) Causing any undue injury to any party, including the Government, or 
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giving any private party any unwarranted benefits, advantage or 
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preference in the discharge of his official administrative or judicial 
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functions through SIMPLE [manifest) partiality, [evident) bad faith or 
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gross OR inexcusable negligence. This provision shall apply to officers 
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and employees of offices or government corporations charged with the 
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grant of licenses or permits or other concessions. 
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SECTION 4. Section 3 (g) ofRA :3019 is hereby amended to read as follows: 
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(g) Entering, on behalf of the Government, into any contract or transaction 
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[manifestly and grossly) disadvantageous to the same, whether or not the 
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public offiqer profited or will profit thereby. 
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SECTION 5. Section 4 (a) ofRA 3019 is hereby amended to read as follows: 
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SEC. 4. Prohibition on private individuals. -
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(a) It shall be unlawful for any person having family or close personal relation 
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with any public official to capitalize or exploit or take advantage of such 


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family or close personal relation by directly or indirectly requesting or 
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receiving any present, gift or material or pecuniary advantage from any 
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other person having some business, transaction, application, request or 
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contract with the government, in which such public official has to 
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intervene. Family relation shall include the spouse or relatives by 
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consanguinity or affinity in the FOURTH [third] civil degree. The word 
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"close personal relation" shall include close personal friendship, social and 
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fraternal connections, and professional employment all giving rise to 
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intimacy which assures free access to such public officer. 
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SECTION 6. Section 5 ofRA 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 
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for any relative, by consanguinity or affinity, within the FOURTH [third] 
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civil degree, of the President of the Philippines, the Vice-President of the 
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Philippines, the President of the Senate, or the Speaker of the House of 
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Representatives, to intervene, directly or indirectly, in any business, 
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transaction, contract or application with the Government: Provided, That this 
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section shall not apply to any person who, prior to the assumption of office of 
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any ofthe above officials to whom he is related, has been already dealing with 
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the Government along the same line of business, nor to any transaction, 
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contract or application a.lready existing or pending at the time of such 
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assumption of public office, nor to any application filed by him the approval 
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of which is not discretionary on the part of the official or officials concerned 
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but depends upon compliance with requisites provided by law, or rules or 
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regulations issued pursuant to law, nor to any act lawfully performed in an 
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official capacity or in the exercise of a profession. 
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SECTION 7. Section 7 ofRA 3019 is hereby deleted. 
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SECTION 8. Section 9 (b) ofRA 3019 is hereby deleted. 
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SECTION 9. Section 11 ofRA 3019 is hereby amended to read as follows: 
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SEC. 11. Prescription of offenses. - All offenses punishable under this Act 
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shall prescribe in TWENTY [ fifteen] years. 
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SECTION 10. Section 12 ofRA 3019 is hereby amended to read as follows: 
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SEC. 12. Termination of office. - ANY PROVISION OF LAW TO THE 
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CONTRARY, NOTWITHSTANDING, No public officer shall be allowed 
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to RECEIVE OR CLAIM RETIREMENT BENEFITS [resign or retire] 
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pending an investigation, criminal or administrative, or pending a prosecution 
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against him, for any offense under this Act, R.A. No. 7080 "AN ACT 
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DEFINING AND PENALIZING THE CRIME OF PLUNDER" or under 
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the provisions of the Revised Penal Code on bribery. RESIGNATION OF A 
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RESPONDENT PENDING ADMINISTRATIVE INVESTIGATION 
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ARISING FROM ANY VIOLATION OF THIS ACT, R.A. NO. 7080, OR 
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PROVISIONS OF THE REVISED PENAL CODE (RPC) ON BRIBERY 
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SHALL NOT PREJUDICE THE SAID ADMINISTRATIVE CASE AND 
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SHALL PROCEED UNTIL FINALLY RESOLVED. 
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SECTION 11. Section 14 ofRA 3019 is hereby amended to read as follows: 
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SEC. 14. Exception. - [Unsolicited gifts or presents of small or insignificant 
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value offered or given as a mere ordinary token of gratitude or friendship 
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according to local customs or usage, shall be excepted from the provisions of 
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this Act.] Nothing in this Act shall be interpreted to prejudice or prohibit the 
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practice of any profession, lawful trade or occupation by any private person or 
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by any public officer who under the law may legitimately practice his. 
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profession, trade or occupation, during his incumbency, except where the 
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practice of such profession, trade or occupation involves conspiracy with any 
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other person or public official to commit any of the violations penalized in 
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this Act. 


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SECTION 12. Separability Clause. - If any provision, or part hereof is held invalid or 
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unconstitutional, the remainder of the law or the provision not otherwise affected shall remain 
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valid and subsisting. 
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SECTION 13. Repealing Clause. - Any law, presidential decree or issuance, executive 
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order, letter of instruction, administrative order, rule or regulation contrary to or inconsistent 
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with, the provisions ofthis Act is hereby repealed, modified, or amended accordingly. 
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SECTION 14. Effectivity Clause. - This Act shall take effect fifteen (15) days after its 
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publication in at least two (2) newspapers of general circulation. 
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Approved. 
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