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Republic of the Philippines
HOUSE OF REPRESENTATIVES
Constitution Hills, Quezon City

SEVENTEENTH CONGRESS
First Regular Session

5233

HOUSE BILL NO.

Introduced by
Representatives Pantaleon D. Alvarez, Rodolfo C. Farifias and
Reynaldo V. Umali

EXPLANATORY NOTE

The Office of the Solicitor General (OSG) is the law office of
the Government of the Republic of the Philippines. It represents
the Government, its departments, bureaus, agencies and
instrumentalities, and its officials and agents in their official
capacity, in any litigation, proceeding, investigation, or matter
requiring the services of lawyers.

The Office of the Government Corporate Counsel (OGCC) is
principal law office of government-owned and controlled
corporations (GOCCs) pursuant to Republic Act No. 2327.

The Presidential Commission on Good Government (PCGG),
which was created under Executive Order Nos. 1 and 2, s. 1986, is
focused on the recovery and preservation of ill-gotten wealth, as
well as the proper investigation and prosecution of cases involving
them.

In numerous instances, despite the delineation of functions
between the OSG and the OGCC, cases and matters requiring the
services of a lawyer are still referred by GOCCs to the OSG.
Additionally, in cases involving the recovery and preservation of
ill-gotten wealth, the OSG has been representing the Republic of
the Philippines since the creation of the PCGG. Hence, despite the
fact that these functions are not specifically spelled out in the
OSG’s mandate, the OSG, as the primary law office of the
Government, continues to render legal services to GOCCs and the
Pcgg.

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In order to achieve economy, eliminate overlapping of
functions, address the expanding needs of GOCCs for legal
representation, and enhance government efforts to recover ill-
gotten wealth and investigate and prosecute cases relative thereto,
the legal services mentioned above must be consolidated into one
office. This requires the abolition of the OGCC and the PCGG, and
the transfer of their powers and functions to the OSG.

The consolidation of legal services in the OSG will
ally promote the wiser and more prudent use of public
funds since this will do away with the practice of the OGCC of
billing client GOCCs for legal services rendered.

Given the formidable and sensitive legal duties of the OSG,
there is a need to strengthen the institution and provide its lawyers
and employees benefits and privileges already being enjoyed by
their counterparts in other government offices. This will ensure
that the OSG is able to faithfully, effectively, and efficiently
perform its mandate to uphold State interest. Towards this end,
Congress must amend the present OSG law, R.A. No. 9417.

The significant amendments introduced by this bill pertain to
the OSG’s organizational structure; its expanded powers and
functions; increased compensation, benefits and privileges of its
personnel; its funding source; and the effects of the abolition of the
OGCC and PCGG.

Organizational Structure

Under the Revised Administrative Code of 1987, the OSG is
attached to the Department of Justice (DOJ). Under this bill,
however, the OSG shall be attached to the Office of the President
(OP) for budgetary purposes. This amendment is necessary to
make the OSG a truly independent and autonomous office.
Attaching the OSG to the OP would be a recognition of the OSG’s
distinct function and position in the executive branch.

This bill also increases the number of legal divisions in the
OSG from at least thirty (30) to at least fifty (50), with at least ten
(10) lawyers in each division. This will result in additional plantilla
positions for Solicitors in every division. The present complement
of Igwyers is not enough to meet the burgeoning need of the

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Government for legal services. To illustrate, each Solicitor handles
an average of 3,000 cases, a large number of which involve special
proceedings, annulment of marriage, land titles, taxation, and
criminal cases. These numbers will further increase once the cases
being handled by the OGCC are transferred to the OSG.
Undoubtedly, the present solicitors are overworked,
overburdened, and are decreasing in number as some transfer to
the private sector or to other government agencies. The additional
Solicitors will ease the work of the present Solicitors, and
ultimately contribute to the more efficient discharge of the OSG’s
functions.

Expanded Powers and Functions

This bill expands the powers and functions of the OSG to
include those that were exercised by the OGCC and PCGG. For
instance, the OSG shall review all GOCC contracts prior to their
execution and enforce the Property Insurance Law. These
functions are currently performed by the OGCC as the principal
law office of all GOCCs pursuant to Chapter 3, Section 10 of the
Revised Administrative Code of 1987. The OSG’s exercise of these
functions will simply be a necessary offshoot of the abolition of the
OGCC and the transfer of all the powers and functions of the latter
office to the OSG, as provided in this bill.

In line with the State’s policy of ensuring efficiency and
economy in the operations of government, including the effective
legal representation of GOCCS, it is also important that the OSG
take a more proactive stance in the handling of government
transactions. This means ensuring that GOCC contracts strictly
conform to existing laws and regulations to avoid future
litigations, which are not only costly but also have an adverse
effect on the country’s investment climate and reputation.

Likewise, the OSG shall have the power to grant immunity
from criminal prosecution to any person who provides information
or testifies in any investigation previously conducted by the PCGG
or future cases investigated by the OSG, to establish the unlawful
manner in which any respondent, defendant or accused has
acquired or accumulated ill-gotten wealth, in any case where such
information or testimony is necessary to ascertain or prove the
latter's guilt or his civil liability. The PCGG is vested with this
power pursuant to Section 5 of Executive Order No. 14, as
amended by E.O. 14-A, s. 1986. The OSG’s exercise of this power

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will simply be a necessary offshoot of the abolition of the PCGG
and the transfer of all its powers and functions to the OSG, as
provided in this bill. Moreover, this immunity shall pertain only to
cases involving ill-gotten wealth. Hence, it will not unduly
interfere with the DOJ's power to grant immunity from criminal
prosecution under the Witness Protection Program.

The bill also seeks to grant the OSG with new powers. For
instance, subject to the President's approval, the OSG may engage
the service of outside counsel to assist in the discharge of its duties
and responsibilities in cases requiring highly specialized legal
skills, knowledge or expertise, including but not limited to foreign
arbitrations and litigations. Due to the fiduciary nature of the
relationship between the OSG and the counsel, the engagement
shall be exempt from Republic Act No. 9184 (Government
Procurement Reform Act).

The engagement of outside counsel shall be exempt from the
competitive bidding process under R.A. 9184 due to the nature of
the services procured. The OSG is in the best position to determine
which counsel to hire, taking into consideration the nature and
complexity of the case(s) to be handled, as well as the counsel's
qualifications and expertise.

In keeping with this bill's thrust to make the OSG an
independent and autonomous office, the Solicitor General is vested
with the power to perform and discharge certain proprietary
functions that may be necessary to carry out the provisions of the
this bill. For instance, to accommodate the fifty (50) divisions
composed of at least tens (10) lawyers, it would be necessary to
acquire a new building or to lease additional office space. This can
be done most efficiently and expeditiously if the OSG is granted
the powers stated in Section 5(q) of this bill.

Compensation, Benefits and Privileges

This bill upgrades the qualifications for appointment, rank,
category, prerogatives, salaries, allowances, emoluments, benefits,
and privileges of the Solicitor General to that of an Associate
Justice of the Supreme Court. While this provision does not change
the Solicitor General's present salary grade of 31, it serves to
enhance the prestige and honor of the position.

While R.A. No. 9417 already provides that Senior State
Solicitors and State Solicitors of the OSG shall have the same rank,

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salaries, and privileges of trial court judges, the benefits provided
for under R.A. No. 9946, such as additional retirement,
survivorship, and other perquisites, are enjoyed by the members of
the Judiciary only. The counterparts of senior OSG lawyers in the
National Prosecution Service (NPS) and the Public Attorney's
Office (PAO) also enjoy these benefits which are not available to
Senior State Solicitors. There is a need to equalize the benefits and
privileges received by Solicitors with that of their counterparts in
the Judiciary, the NPS, and the PAO. At present, the OSG merely
serves as a training ground for lawyers, as they are being lured to
higher paying positions in the private sector or in other
government offices. The government must provide incentives for
lawyers to build their careers in the OSG, and reward those who
choose to climb up the ranks and devote the best years of their
working life to the OSG.

More important, given the complexity and significance of the
cases they handle, Solicitors face hazards to life and limb. The
brutal killing of Assistant Solicitor General Nestor J. Ballacillo, a
Civil Service Dangal ng Bayan awardee and his son Benedict, is
proof of this.

The provision on retroactivity of the law will clarify the
ambiguities in R.A. No. 9417 on the entitlement of Solicitors who
have judicial ranks to the retirement benefits under related laws.
Funding Source

The increase in the OSG’s share in monetary awards or assets
granted by courts or tribunals to client departments and assets
adjudged to the government in forfeiture proceedings will
significantly augment the office’s funds to ensure proper
implementation of the proposed law, particularly the expanded
benefits provided therein, without being overly dependent on the
annual appropriations. This can, in the long run, enhance the
proposed fiscal autonomy for the office and lessen the need for
appropriations from the national government's budget. Moreover,
the twenty percent (20%) share provided in this bill conforms to
the present rate of success fees recovered by private law firms.

Furthermore, the grant of the authority to borrow addresses
the urgent need of the OSG to acquire and construct its own office

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building, and improve working conditions and capacity
development.

Effects of the Abolition of the OGCC and PCGG

This bill aims to streamline government legal services.
Providing for the automatic absorption of OGCC and PCGG
officials and employees would defeat this purpose, for
streamlining does not only entail consolidating all government
services in one office; more important, it requires a careful
assessment of the optimal number of lawyers and staff that can
effectively discharge the functions of the office to promote
economy and efficiency in the service.

During the holdover period, the Solicitor General can
determine the actual number of additional lawyers and
administrative personnel required to handle the office’s increased
workload. OGCC and PCGG lawyers and personnel may apply
for the needed positions, without prejudice to their entitlement to
full retirement gratuity and pension pursuant to applicable laws,
or separation pay, as the case may be, as provided in this bill.

Moreover, this would be in consonance with the OSG’s
present policy of upholding meritocracy in the selection and
promotion of lawyers and administrative personnel. Additional
lawyers and staff will be selected and hired based on their
qualifications and performance, the latter being most applicable to
OGCC and PCGG officials and employees.

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

PANTALEON D., REZ

—

a4 FARINAS Rl Al Vv. I


CHOIAHAWHHE

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Republic of the Philippines
HOUSE OF REPRESENTATIVES
Constitution Hills, Quezon City

SEVENTEENTH CONGRESS
First Regular Session

HOUSE BILL NO,_D233

Introduced by
Representatives Pantaleon D. Alvarez, Rodolfo C. Farifias and
Reynaldo V. Umali

AN ACT
TO FURTHER STRENGTHEN THE OFFICE OF THE
SOLICITOR GENERAL BY PROVIDING FOR ITS POWERS
AND FUNCTIONS, AND REDEFINING, EXPANDING, AND
RATIONALIZING ITS ORGANIZATION, THEREBY
AMENDING REPUBLIC ACT NO. 9417 AND REPEALING
REPUBLIC ACT NO. 2327, EXECUTIVE ORDER NOS. 1 AND 2,
S. 1986, AND ALL RELATED LAWS, AND APPROPRIATING
FUNDS THEREFOR AND FOR OTHER RELATED PURPOSES

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

SECTION 1. Short Title. - This Act shall be known as the
“OSG Charter.” (n)

SECTION 2.Declaration of Policy. — It is the declared
policy of the State to strengthen the Office of the Solicitor General
(OSG) in order to fulfill its role of upholding the best interest of the
government as the Tribune of the People, as well as to perform its
mandate as the principal law office of the Government of the
Republic of the Philippines representing the Government, its
departments, bureaus, agencies, and instrumentalities, and its
officials and agents in their official capacity, in any litigation,
proceeding, investigation, or matter requiring the services of
lawyers.


It is also the policy of the State to ensure efficiency and
economy in the operations of government, eliminate the
overlapping of functions, consolidate the legal services in the
government into one office, effectively address the expanding
needs of government-owned and -controlled corporations
(GOCCs) towards the improvement of fiscal management and
good corporate governance, and concentrate and enhance
government efforts for the full and effective recovery of ill-gotten
wealth and properties, including the efficient investigation and
prosecution of cases relative thereto. Towards this end, the Office
of the Government Corporate Counsel (OGCC) and the
Presidential Commission on Good Government (PCGG) are hereby
abolished and their respective powers and functions are
transferred to the OSG.

With the transfer of the powers and functions of the OGCC
and the PCGG to the OSG, and to ensure the efficient and effective
legal representation of the Government, its departments, bureaus,
agencies, and instrumentalities, GOCCs, and its officials and
agents in their official capacity, the members of the legal and
administrative staff of the OSG shall be increased and their
positions upgraded to adequately meet the Republic’s burgeoning
need for legal services. The skills of OSG lawyers shall be further
improved, and the benefits of all OSG employees augmented. The
professional growth of these employees shall be encouraged. (n)

SECTION 3. Definition. - For purposes of this Act, the
term—

(a) “Capacity development” shall refer to the process
whereby the OSG, as an organization, develops its capability over
time to achieve development goals while enhancing its ability to
achieve measurable and sustainable results, through improvement
of knowledge, skills, and systems.

(b) “GOCCs” shall refer to 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 corporate entities, agencies and offices.


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(©) "I-gotten wealth" shall refer to any asset, property,
business enterprise or material possession of the persons referred
to in Executive Orders Nos, 1 and 2, s. 1986, acquired by them
directly, or indirectly through dummies, nominees, agents,
subordinates, and/or business associates by any of the following
‘means or similar schemes:

(qd)

Q)

@)

(4)

6)

(6)

Through misappropriation, conversion,
misuse, or malversation of public funds or
raids on the public treasury;

Through the receipt, directly or indirectly,
of any commission, gift, share, percentage,
kickbacks, or any other form of pecuniary
benefit from any person and/or entity in
connection with any government contract
or project or by reason of the office or
position of the official concerned;

By the illegal or fraudulent conveyance or
disposition of assets belonging to the
government or any of its subdivisions,
agencies or _instrumentalities, or
government-owned or —_controlled
corporations;

By obtaining, receiving, or accepting
directly or indirectly any shares of stock,
equity, or any other form of interest or
participation in any business enterprise or
undertaking;

Through the establishment of agricultural,
industrial, or commercial monopolies or
other combination and/or by the issuance,
promulgation, and/or implementation of
decrees and orders intended to benefit
particular persons or special interests; and
By taking undue advantage of official
position, authority, relationship, or
influence for personal gain or benefit. (n)

SECTION 4. Organizational Structure. ~ The Office of the
38 Solicitor General shall be an independent and autonomous office
attached to the Office of the President for budgetary purposes.


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‘The OSG shall be headed by the Solicitor General, who is the
principal law officer and legal defender of the Government. He
shall have the authority and responsibility for the exercise of the
OSG’s mandate and for the discharge of its duties and functions,
and shall have supervision and control over the OSG and its
constituent units.

The Solicitor General shall be assisted by a Legal Staff
composed of Assistant Solicitors General and such number of
Solicitors as may be necessary to operate the OSG.

There shall be at least fifty (50) legal divisions in the OSG.
Each division, headed by an Assistant Solicitor General, shall
consist of at least ten (10) lawyers and such other personnel as may
be necessary for the OSG to effectively carry out its functions.

The administrative structure of the OSG shall be organized
into the Financial Management Service, Docket Management
Service, Case Management Service, Human Resources
Management and Administrative Service, and Budget and
Planning Service, which shall be composed of the necessary
divisions and sections. Each Service shall be headed by a Director,
who shall be appointed by the President.

There shall be an Office of Legal Services (OLS) within the
OSG to be headed by a Chief Legal Officer, who shall be a lawyer,
appointed by the Solicitor General and serve at the latter's
pleasure. The qualifications, salary grade, and benefits of the Chief
Legal Officer and his/her legal staff shall be determined by the
Solicitor General, The Chief Legal Officer shall be assisted by such
other personnel as may be necessary to effectively carry out the
functions of the OLS.

SECTION 5. Powers and Functions. - The OSG shall
represent the Government of the Philippines, its agencies and
instrumentalities, including GOCCs, and its officials and agents
acting in their official capacity, in any litigation, proceeding,
investigation, or matter requiring the services of a lawyer. The
OSG shall constitute the principal law office of the Government
and, as such, shall discharge duties requiring the services of a
lawyer. It shall have the following specific powers and functions:


(a) Represent the Government and the People of the
Philippines in the Supreme Court and the Court of Appeals in all
criminal proceedings; represent the Government and its officers in
the Supreme Court, the Court of Appeals, and all other courts or
tribunals in all civil actions and special proceedings in which the
Government has been impleaded as a party, or any official of the
Government sued in the lawful performance of duty.

(b) Investigate, initiate court action, or in any manner
proceed against any person, corporation, or firm for the
enforcement of any contract, bond, guarantee, mortgage, pledge, or
other collateral executed in favor of the Government.

(©) Appear in any court in any action involving the
validity of any treaty, law, executive order or proclamation, or rule
or regulation when in his judgment his intervention is necessary or
when requested by the Court.

(4) Appear in all proceedings involving the acquisition or
loss of Philippine citizenship.

(€) Represent the Government in all land registration and
related proceedings. Institute actions for the reversion to the
Government of lands of the public domain and improvements
thereon as well as lands held in violation of the Constitution.

() Conciliate, mediate, settle, or adjudicate all disputes,
claims, and controversies solely between or among the
departments, bureaus, offices, agencies, and instrumentalities of
the National Government, including GOCCs.

(g) Render opinion and advice on matters referred by the
departments, bureaus, offices, agencies, and instrumentalities of
the National Government, including GOCCs.

(h) Prepare, upon request of the President or other proper
officer of the National Government, rules and guidelines for
government entities governing the preparation of contracts,
making of investments, undertaking of transactions, and drafting
of forms or other documents needed for official use, for the
purpose of facilitating their enforcement and ensuring that they are
entered into or prepared conformably to law and for the best
interests of the public.


(i) Deputize, whenever in the opinion of the Solicitor
General the public interest requires, any provincial or city
prosecutor to assist him in the performance of any function or
discharge of any duty incumbent upon him, within the jurisdiction
of the aforesaid provincial or city prosecutor. When so deputized,
the prosecutor shall be under the control and supervision of the
Solicitor General with regard to the conduct of the proceedings
assigned to the prosecutor, and he may be required to render
reports or furnish information regarding the assignment.

() Any law to the contrary notwithstanding, the OSG
shall be the legal counsel and principal law office of all GOCCs. All
GOCCs shall refer to the OSG the following:

(i) Before their execution, all contracts for review;
and

(ii) All cases for representation before regular courts,
quasi-judicial bodies, administrative agencies,
and arbitral tribunals, Provided That the Solicitor
General may thereafter authorize the GOCC’s
legal department because of urgency or
expediency to appear as collaborating counsel to
handle GOCC’s cases.

As legal counsel of all GOCCs, the OSG shall also perform
the following functions:

(1) Exercise control and supervision over the legal
departments of all GOCCs through designated Assistant
Solicitors General and Solicitors;

2) Exercise visitorial powers over GOCCs;

(3) Replace the OGCC as ex-officio member in the
Property Insurance Fund and enforce the Property Insurance
Law pursuant to Republic Act No. 656, as amended by
Presidential Decree 245, in domestic or international
transactions;

(4) Conduct periodic performance audits of the in-
house lawyers or legal departments of the GOCCs and to
recommend appropriate actions to GOCCs;

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(©) Require the in-house lawyers or legal
departments of GOCCs to submit periodic reports of work
performed and/or accomplished and to supervise and
control the necessary legal action; and

(6) Perform other functions as maybe provided by
law and such additional tasks as may be required by the
GOCCs, with the conformity of the Solicitor General. (n)

(k) Deputize legal officers of government departments,
bureaus, agencies, offices, and GOCCs to assist the Solicitor
General and appear or represent the Government in cases
involving their respective offices, brought before the courts, and
exercise supervision and control over such legal officers with
respect to such cases.

(Call on any department, bureau, office, agency, or
instrumentality of the Government, including any GOCC, for such
service, assistance, and cooperation as may be necessary in
fulfilling its functions and responsibilities and for this purpose
enlist the services of any government official or employee in the
pursuit of his tasks.

Departments, bureaus, agencies, offices, instrumentalities,
and GOCCs to whom the OSG renders legal services are
authorized to disburse funds from their sundry operating and
other funds for the OSG. For this purpose, the Solicitor General,
Assistant Solicitors General, Senior State Solicitors, State Solicitors,
and Associate Solicitors are specifically authorized to receive
allowances as may be provided by the Government offices,
instrumentalities, and GOCCs concerned, in addition to their
regular compensation. (rf. 1987 Administrative Code, Book IV,
Title III, Chapter 12, Sec. 35 (9))

(m) The powers and functions of the PCGG are hereby
transferred to the OSG which include the following:

(1) To file and prosecute all cases investigated by the
PCGG under Executive Order No. 1, dated 28
February 1986, Executive Order No. 2, dated 12
March 1986, and Executive Order No. 432, dated
26 May 2005, as may be warranted by its findings;


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(n)

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(p)

2) To continue handling cases relative to the
recovery of ill-gotten wealth and behest loans;

(3) To grant immunity from criminal prosecution to
any person who provides information or testifies
in any investigation previously conducted by the
PCGG or future cases investigated by the OSG
involving ill-gotten wealth, to establish the
unlawful manner in which any respondent,
defendant or accused has acquired or
accumulated the property or properties in
question in any case where such information or
testimony is necessary to ascertain or prove the
latter's guilt or his civil liability. The immunity
thereby granted shall be continued to protect the
witness who repeats such testimony before the
Sandiganbayan when required to do so; and

(4) To call upon any department, bureau, office,
agency, instrumentality or corporation of the
government, or any officer or employee thereof,
for such assistance as it may need in the
discharge of its functions relative to recovery of
ill-gotten wealth and behest loans.

Represent, upon the instructions of the President, the
Republic of the Philippines in international litigations,
negotiations, or conferences where the legal position of
the Republic must be defended or presented.

Subject to the approval of the President, engage the
services of counsel to assist in the discharge of his
duties and responsibilities in_cases requiring highly
specialized legal skills, _knowledge or expertise,
including but not limited to foreign arbitrations and
litigations, However, due to the fiduciary nature of the
relationship between the OSG and the counsel, the
engagement of the latter shall be exempt from Republic
Act No, 9184 (Government Procurement Reform Act).

Act and represent the Republic and/or the people
before any court, tribunal, body, or commission in any
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matter, action, or proceeding which, in his opinion,
affects the welfare of the people as the ends of justice
may require;

(q) Acquire, own, hold, or lease real and personal
property; sell or otherwise dispose of the same; enter
into contracts including loan agreements and joint
venture agreements; and do and perform any and all
acts that may be necessary or proper to carry out the
purposes of this Act; (n)

(®) Provide a Legal Internship Program to help law
students prepare and train for and experience legal
practice in public service. (n)

(8) Perform such other functions as may be provided by

law.

SECTION 6. Abolition of the Office of the Government
Corporate Counsel and the Presidential Commission on Good
Government, - The legal representation of the Government, its
agencies, and instrumentalities, including GOCCs, and officials
and agents acting in their official capacity, and the powers and
functions of the PCGG shall be consolidated in the OSG, the
principal law office and legal defender of the Government. For this
purpose, the OGCC and the PCGG are hereby abolished, and all
the powers and functions of said Offices which are not inconsistent
with the provisions of this Act are hereby transferred to the OSG.

After settlement of its liabilities, if any, all budgetary
appropriations, funds, properties, records, equipment, rights,
choses in action, and other assets of the OGCC and the PCGG are
hereby transferred to the OSG. (n)

SECTION 7. Appointments. - The Solicitor General shall be
appointed by the President.

The Assistant Solicitors General, Senior State Solicitors, and
State Solicitors shall be appointed by the President upon
recommendation of the Solicitor General. Associate Solicitors shall
be appointed by the Solicitor General.

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CHOIAUAWHHE

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31
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The Financial Management Service, Docket Management
Service, Case Management Service, Human Resources
Management and Administrative Service, and Budget and
Planning Service shall each be headed by a Director to be
appointed by the President upon the recommendation of the
Solicitor General. The Service Heads shall possess the necessary
CES eligibility and qualifications for the position prescribed under
pertinent civil service laws, rules, and regulations: Provided, that if
a Service Head who does not possess the necessary eligibility and
qualifications is occupying the position at the time of the effectivity
of this Act, he or she shall continue to perform such functions as
officer-in-charge and shall have a maximum of two (2) years to
comply with the said eligibility and qualifications: Provided, further,
that if the Service Head fails or is unable to meet the eligibility and
qualifications for the position after the lapse of two (2) years from
effectivity of this Act, he or she shall be ipso jure removed from said
position. (n)

Administrative personnel in the OSG shall be appointed by
the Solicitor General.

SECTION 8. Standards. - The Solicitor General shall have
the rank of a Cabinet Secretary and the same qualifications for
appointment, rank, category, prerogatives, salaries, allowances,
emoluments, privileges, retirement-and all other benefits of an
Associate Justice of the Supreme Court; an Assistant Solicitor
General, those of an Associate Justice of the Court of Appeals.

The qualifications for appointment, rank, category,
prerogatives, salaries, allowances, emoluments, _ privileges,
retirement and all other benefits of Solicitors shall be the same as
judges, specified as follows:

Senior State Solicitor - Regional Trial Court Judge

State Solicitor II - Metropolitan Trial Court Judge

State Solicitor I - Municipal Trial Court in Cities Judge

The Solicitor General shall be entitled to the same retirement
benefits and privileges as an Associate Justice of the Supreme
Court, provided he has served in such capacity for at least two (2)

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years, Such retirement benefits and privileges shall accrue to him
or her upon reaching the age of sixty (60) years.

Assistant Solicitor Generals, Senior State Solicitors, State
Solicitors II, and State Solicitors I shall be entitled to the same
retirement benefits and privileges as their counterparts in the
Judiciary upon reaching the age of sixty (60) years, provided that
they have served in such capacities for at least five years. An
Assistant Solicitor General, Senior State Solicitor, State Solicitor II,
and State Solicitor I may opt to serve up to the age of seventy (70)
years.

The Solicitor General shall determine the qualifications,
prerogatives, and responsibilities of the Associate Solicitors.

(a) SECTION 9. Office of Legal Services. - The OLS shall
perform such functions and duties as may be assigned by the
Solicitor General, which may include drafting proposed legislative
measures to strengthen the OSG and enable it to efficiently and
effectively discharge its mandate for submission by the Solicitor
Gey to ‘01 the ident of ilippines;
conducting research on legal issues that may be assigned by the

Solicitor General; and_ assisting the Solicitor General, Assistant
Solicitors General, State Solicitors, Associate Solicitors, and_all

other employees of the OSG who are impleaded in their official
capacity in any litigation, proceeding, investigation, or matter
requiring the services of a lawyer. (n)

SECTION 10. Capacity Development. - In order to build and
develop the capability of the OSG as an organization to achieve
development goals, as well as enhance its abilities to achieve
measurable and sustainable results, the Solicitor General, in
consultation with the Assistant Solicitors General, shall formulate,
develop, and implement plans, activities, and programs towards
the improvement of knowledge, skills, and systems. To achieve
this objective, the Solicitor General may by himself authorize OSG
lawyers to travel anywhere in the Philippines and abroad to attend
seminars, fora, conferences, or lectures on different areas of law,
pleadings and practice in international courts and tribunals,
public-private partnerships, and public corporate governance,
among others. The Solicitor General may also authorize the
administrative staff of the OSG to undergo relevant training to
improve their skills.



Pode

Foonr]aua

SECTION 11. Compensation. — The salary grades of the
Solicitor General, Assistant Solicitors General, Senior State
Solicitors, State Solicitors, and Associate Solicitors shall be as
follows:

POSITION SALARY GRADE
Solicitor General 31
Assistant Solicitor General 30
Senior State Solicitor 29
State Solicitor II 28
State Solicitor I 27
Associate Solicitor IT 26
Associate Solicitor I 2
Associate Solicitor I 24

The Solicitor General, Assistant Solicitor General, and
Solicitors shall be entitled to step increments and longevity pay
which shall be equivalent to those being received by their
counterparts in the judiciary.

The positions and salaries of non-legal personnel in the OSG
shall be in the level of their counterparts in the Court of Appeals.

SECTION 12. Benefits and Privileges. — The OSG shall
provide its employees with the following benefits:

(1) Health care services through a health maintenance
organization (HMO). Expenses for the mandatory annual executive
check-up of the Solicitor General, the Assistant Solicitors General
and OSG officials whose positions correspond to Salary Grade 28
and above shall be for the account of the OSG;

(2) Hazard pay, as well as accident insurance policies
procured by the OSG at its own expense to protect its officials
while they are in the performance of their official duties and
functions;

(3) Without prejudice to efficiency in the service, scholarships
to deserving employees on official time and at the expense of the
OSG to enhance their academic growth and upgrade their

12



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knowledge and skills. Scholarships under this provision shall be
granted on the basis of competitive examination. Scholars shall be
required to render service in the OSG upon immediate completion
of the program, course or degree, in accordance with applicable
Civil Service laws, rules and regulations.

(4) A provident fund which shall consist of contributions
made both by the OSG and by its lawyers and employees to a
common fund for the payment of benefits to such lawyers or
employees or their heirs;

(©) Other perquisites and benefits as enjoyed by other
government offices or as may be determined by the Solicitor
General in the exigencies of the service and in accordance with law.

(n)

SECTION 13.Seminar and Other Professional Fees. —
Subject to the availability of funds, fees for relevant seminars, as
well as professional membership fees for lawyers, registration fees,
and related miscellaneous expenses incurred in completing the
mandatory continuing legal education (MCLE) course shall be
borne by the OSG: Provided, that the lawyer whose lifetime
membership fees/dues to the Integrated Bar of the Philippines
(IBP) have been paid up or reimbursed by the OSG, shall maintain
his or her service in the OSG for at least five (5) years: Provided,
further, that should the lawyer resign or in any manner sever his or
her service from the Office, he or she shall be required to reimburse
the paid up IBP membership dues /fees in pro rata. (n)

Professional membership, registration fees, including those
for mandatory continuing professional education (CPE), and
related miscellaneous expenses of other employees holding
positions for which a professional license is required by the office
shall also be borne by the OSG.

SECTION 14. Survivorship Benefits; Coverage. -Upon the
death of a Solicitor General, Assistant Solicitor General, Senior
State Solicitor, State Solicitor, or an Associate Solicitor of the OSG,
if said official had retired or was in the service at the time of death,
the surviving legitimate spouse and dependent children, or in their
absence, the surviving parents of said official shall be entitled to
receive on a monthly basis all the retirement benefits that the
deceased official was receiving or entitled to receive at the time of

13


death under the provisions of the applicable retirement laws. A
“dependent” means a legitimate, illegitimate, or legally adopted
child who is chiefly dependent with the above-enumerated
deceased officials if such dependent is not more than twenty-one
(21) years of age, unmarried and not gainfully employed or if such
dependent, regardless of age, is incapable of self-support because
of mental or physical defect. The surviving legitimate spouse shall
continue to receive such retirement benefits during his or her
lifetime or until he or she remarries: Provided, that if the surviving
legitimate spouse is receiving benefits under existing retirement
laws, the surviving legitimate spouse shall only be entitled to the
difference between the amount provided for in this Act and the
benefits the surviving spouse has been receiving: Provided, further,
that said benefits shall be granted to all aforementioned members
of the OSG who died or retired prior to the effectivity of this Act:
Provided, furthermore, that the surviving legitimate spouse receiving
the benefit shall not, if he or she is a member of the Bar, appear as
counsel before any court in any civil case wherein the Government
or any subdivision or instrumentality thereof, including GOCCs, is
the adverse party, or in any criminal case wherein an incumbent or
former officer or employee of the Government is accused of an
offense committed in relation to his or her office, or collect any fee
for his or her appearance in any administrative proceeding; and
when the surviving legitimate spouse shall assume an elective
public office, he or she shall not, upon assumption of office and
during his or her term, receive the said survivorship benefits. (n)

SECTION 15. Grant of Special Allowances. — Any law to
the contrary, notwithstanding, the Solicitor General, Assistant
Solicitors General, Senior State Solicitors, State Solicitors and
Associate Solicitors shall be granted special allowances in amounts
to be determined by the Solicitor General.

The grant of special allowances shall be implemented
uniformly in such sums and amounts and up to the extent only
that can be supported by the funding source specified in Section 18
(a) to (d) hereof: Provided, that each grant of the said special
allowance shall not exceed One hundred percent (100%) of the
basic salary of solicitors as provided in Republic Act No. 6758,
otherwise known as the Salary Standardization Law: Provided,
further, that said special allowances shall be exempt from income
tax.


WMIAGHAWHH

29
30

31
32

SECTION 16. Other Benefits. — Notwithstanding any law,
or administrative rule or regulation, the lawyers of the OSG are
allowed to receive honoraria and allowances directly from each
client department, agency, and instrumentality of the Government,
as well as from each client GOCC for the legal services that said
lawyers render, which may include attendance in hearings,
providing legal advice, drafting of contracts and legal documents,
and performing designated functions; Provided, that said honoraria
and allowances shall be exempt from income tax.

SECTION 17. Franking Privilege. — All official mail matters
and telegrams of the OSG addressed for delivery within the
Philippines shall be received, transmitted, and delivered free of
charge: Provided, that such mail matters when addressed to private
persons or non-government offices shall not exceed one hundred
twenty (120) grams.

SECTION 18. Funding. — The funds required for the
implementation of this Act, including those for health care services,
survivorship benefits; insurance premiums, _ professional,
educational, and registration fees; transportation benefits; and
other benefits and privileges mentioned in the other provisions of
this Act, shall be provided for in the General Appropriations Act
and augmented by funds sourced from the following:

(a) Twenty percent (20%) of monetary awards or value of
assets adjudged by the Courts or tribunals to client departments,
agencies and instrumentalities of the Government, and GOCCs,
including those under court-approved compromise agreements;

(b) Twenty percent (20%) of assets adjudged to the
Government in forfeiture proceedings;

() Fifty percent (50%) of fees collected by the Special
Committee on Naturalization; and

(4) All other income, fees and revenues earned and
collected by the Office of the Solicitor General.

15


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For this purpose, the OSG is hereby authorized to charge
deputation, certification, and other similar fees in the cases that it
handles.

The amounts collected pursuant to this section shall
constitute a trust fund in the name of the OSG to be managed and
used by the Solicitor General to carry out the provisions of this Act.

SECTION 19. Transfer of Cases. - All cases being handled by
the OGCC shall be transferred to the OSG: Provided, however, that
the handling OGCC lawyer shall submit a status report of all cases
he or she is handling to the Solicitor General: Provided, further, that
a certification under oath that the records of the case transmitted to
the OSG are complete shall be made by the handling OGCC lawyer
as a pre-condition for receiving the separation or retirement
benefits under this Act. (n)

SECTION 20. Case Migration. - Upon the effectivity of this
Act, a transition “Case Migration Committee” (CMC) shall be
created composed of: three (3) members from each of the
respective records and docket divisions of the OSG, the OGCC,
and the PCGG, at least two (2) members from the legal divisions of
all GOCCs, and at least two lawyers each from the OSG, the
OGCC, and the PCGG.

The CMC shall ensure the smooth turnover of all cases and
legal concerns of the OGCC and the PCGG to the OSG, with
corresponding status reports, complete records, and other relevant
documents, taking care that no case or legal concern shall be
prejudiced in the process of turnover.

‘The CMC shall have the responsibility of determining which
cases and legal concerns need immediate attention or are extremely
urgent, These cases and legal concerns shall immediately be
transferred and/or referred to the OSG.

The CMC shall complete its work within thirty (0) days
from its constitution. The CMC shall submit a comprehensive
report to the Solicitor General. (n)


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SECTION 21. Retirement or Separation from Service. -
Consequent to the abolition of the OGCC and the PCGG, OGCC
and PCGG officials and employees who have attained fifty (60)
years of age and have rendered at least fifteen (15) years in
government service, the last five (5) years of which shall have been
continuously rendered in the OGCC or the PCGG, shall be
qualified for retirement with full retirement gratuity and pension
pursuant to applicable laws. Those who lack any one of the above
qualifications shall receive a separation pay equivalent to one and
a half (1 1/2) months for every year of service in government,
which will be provided for in the General Appropriations Act. (n)

SECTION 22. Implementing Rules and Regulations. —
Within thirty (30) days from the approval of this Act, the Solicitor
General, in coordination with the Secretary of Budget and
Management, shall promulgate such rules and regulations as may
be necessary to carry out the provisions of this Act. Until such
time that the rules and regulations are promulgated and Section 21
of this law is implemented, the officials and administrative
personnel of the OGCC and PCGG shall remain in their positions
in a holdover capacity.

SECTION 23. Retroactivity. - The retirement benefits
provided for in Section 8 and the survivorship benefits provided
for under Section 14 of this Act shall have retroactive effect as of
the date of effectivity of Republic Act No. 9417. (n)

SECTION 24. Appropriations. — The amount necessary for
the initial implementation of this Act shall be taken from the
current appropriations of the OSG and/or its savings. Thereafter,
such sums as may be necessary for the continued implementation
of this Act shall be included in the annual General Appropriations
Act.

SECTION 25. Repealing Clause. — Pertinent provisions of
Executive Order No. 292, otherwise known as the Revised
Administrative Code of 1987, as amended, Republic Act No. 9417,
and all laws, decrees, orders, rules and regulations or parts thereof
which are contrary to or inconsistent with the provisions of this
Act are hereby repealed or amended accordingly.

17


This Act expressly repeals Republic Act No. 2327 entitled
“An act to declare the position of Government Corporate Counsel distinct
and separate from that of the Solicitor General, provide for his
appointment and salary and appropriate the necessary funds therefor, and
{for other purposes”, and Executive Orders No. 1 entitled “Creating
the Presidential Commission on Good Government” and No. 2 entitled
“Regarding the Funds, Moneys, Assets and Properties Illegally Acquired
or Misappropriated by Foremr President Ferdinand Marcos ...” , s. 1986,
and, related laws.

SECTION 26. Separability Clause. — If any provision of this
Act is declared invalid or unconstitutional, the provisions not
affected thereby shall continue to be in full force and effect.

SECTION 27. Effectivity. — This Act shall take effect after
fifteen (15) days from its publication in two national newspapers of
general circulation.

Approved,