TWENTIETH CONGRESS OF THE 
REPUBLIC OF THE PHILIPPINES
First Regular Session
SEN AT E 
Senate Bill No.
157
JUL -7 A 9 :03
Introduced by Senator Erwin Tulfo
AN ACT
PROHIBITING ELECTED PUBLIC OFFICIALS AND THEIR 
IMMEDIATE FAMILY MEMBERS FROM OWNING, 
CONTROLLING, OR HAVING FINANCIAL OR MATERIAL 
INTEREST IN PUBLIC UTILITIES DURING THEIR TERM 
OF OFFICE, PROVIDING PENALTIES THEREFOR, AND
FOR OTHER PURPOSES
EXPLANATORY NOTE
Section 1, Article XI of the 1987 Constitution declares that 
"Public office is a public trust.” Those entrusted with power should not 
leverage such authority for private gain, much less when such gain 
comes at the expense of the public interest.
Public utilities, being providers of essential services, are 
particularly susceptible to abuse when those in power have pecuniary 
stakes in them. This situation risks regulatory capture, where public 
officials may unduly influence regulatory actions for personal benefit, 
leading to compromised policies, preferential treatment, and 
ultimately, public harm.
This measure supplements Republic Act No. 6713, otherwise 
known as the “Code of Conduct and Ethical Standards for Public 
Officials and Employees,” Republic Act No. 3019, otherwise known as 
the “Anti-Graft and Corrupt Practices Act,” and other existing laws by 
establishing a categorical prohibition on elected public officials and


their immediate family members from owning, controlling, or having 
financial or material interest in any public utility during the official’s 
term of office. It also mandates divestment of existing interests and 
provides for penalties in case of violation.
Strengthening the constitutional principle of accountability, this 
bill ensures that public duty remains distinct from private interest, 
especially in sectors that directly affect the welfare of Filipinos.
In view of the foregoing, approval of this bill is earnestly sought.
RWIN TULFO


TWENTIETH CONGRESS OF THE 
REPUBLIC OF THE PHILIPPINES
First Regular Session
SENATE 
Senate Bill No. 157
ZD
JUL-7 A 9 :03
Introduced by Senator Erwin Tulfo
AN ACT
PROHIBITING ELECTED PUBLIC OFFICIALS AND THEIR 
IMMEDIATE FAMILY MEMBERS FROM OWNING, 
CONTROLLING, OR HAVING FINANCIAL OR MATERIAL 
INTEREST IN PUBLIC UTILITIES DURING THEIR TERM 
OF OFFICE, PROVIDING PENALTIES THEREFOR, AND
FOR OTHER PURPOSES
Be it enacted by the Senate and the House of Representatives of the 
Philippines in Congress assembled:
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SECTION 1. Short Title. - This Act shall be known as theAnti- 
Conflict of Interest in Public Utilities Act. ”
SEC. 2. Declaration of Policy. - It is the declared policy of the 
State to uphold the highest standards of integrity, accountability, and 
public trust in public service. In recognition of the indispensable nature 
of public utilities in national development and public welfare, the State 
shall ensure that these enterprises are governed and regulated solely for 
public interest. To prevent conflicts of interest and regulatory capture, 
the State shall prohibit elected public officials and their immediate 
family members from having financial or material interests in public 
utility enterprises during the officials' incumbency, thereby preserving 
the integrity of public service and protecting the welfare of the public.


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SEC. 3. Definition of Terms. - As used in this Act:
a. '"Beneficial owner' refers to any natural person who controls or 
exercises ultimate effective control over the public utility;
b. "Conflict of interest” refers to a situation where an elected public 
official or any of his or her immediate family member directly or 
indirectly owns, controls, manages, or otherwise derives financial 
or material interest in a public utility, whether personally or 
through intermediaries, in addition to the definition provided 
under Republic Act No. 6713, otherwise known as the “Code of 
Conduct and Ethical Standards for Public Officials and 
Employees”;
c. "Divestment" refers to the transfer of title or disposal of interest 
in a public utility by voluntarily, completely, and actually 
depriving or dispossessing oneself of his or her right or title to it 
in favor of a person or persons other than his or her immediate 
family members;
d. "Financial Interest” refers to any interest capable of monetary 
value, whether readily ascertainable or not, held by an elected 
public official, his or her immediate family members or a 
business they own, control or manage;
e. "Elected Public OfficiaF refers to any person duly elected to an 
official position in the national or local government, including 
those in special or autonomous regions;
f "Immediate Family Members" refers to the spouse, children, 
parents, brothers or sisters, or any other dependent or person 
living in the same household and related to the elected public 
official by consanguinity or affinity within the fourth civil degree;
g. "Material Interest" refers to any substantial interest, whether 
direct or indirect, in any matter, transaction or proceeding that


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may be affected by the official acts or omissions of the elected 
public official;
h. Public Utility’" refers to persons or entities engaged in supplying 
the public with goods or services of public consequence, as 
defined under Commonwealth Act No. 146 otherwise known as 
the “Public Service Act,” as amended by Republic Act No. 
11659.
SEC. 4. Prohibited Acts. - During their term of office, no elected 
public official shall directly or indirectly;
a. Own, control, manage, or derive any financial or material interest 
in any public utility;
b. Allow or cause any immediate family member to own, control, 
manage, or derive financial or material interest in any public 
utility, whether directly or indirectly;
c. Grant preferential treatment, unwarranted benefits, privileges, or 
exemptions to any public utility in which the elected public 
official, his or her immediate family member, or their business 
have any form of interest; or
d. Influence, attempt to influence, or cause any government agency 
or instrumentality, to act favorably in any matter involving a 
public utility in which the elected public official, his or her 
immediate family member, or their business have any form of 
interest;
Any scheme or arrangement intended to conceal beneficial 
ownership in a public utility, including but not limited to the use of 
intermediaries, nominees, dummies, or other similar business structure, 
shall be deemed a violation of this Act.
SEC. 5. Divestment Requirement. - Any elected public official 
and/or his or her immediate family members, who at the time of the


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official’s assumption to office, already owns, controls, manages, or 
derives financial or material interest in a public utility shall, within 
sixty (60) days from assumption of office resign from any controlling 
position in such public utility or otherwise divest such interest in 
accordance with the rules and regulations of this Act.
Failure to comply with the divestment requirement shall 
constitute prima facie evidence of intent to circumvent this Act and 
shall subject the concerned elected public official and/or immediate 
family member to the penalties prescribed herein.
SEC. 6. Penalties. -
a) Any elected public official found to have committed any 
violation of this Act shall be subject to the following penalties:
(1) 
Forfeiture of the interest in the public utility in favor of 
the State;
(2) 
Fine equivalent to at least six (6) months’ worth of 
salary; and
(3) 
Suspension from office for a period of not less than one 
(1) year but not exceeding three (3) years: Provided, That 
in cases where the violation is accompanied by manifest 
bad faith or results in undue injury to the government or 
to the public, the penalty shall be dismissal from service 
with perpetual disqualification from holding public 
office.
b) Immediate family members who knowingly aid, abet, 
conspire, or collude in the commission of any violation of this 
Act shall be subject to forfeiture of their interest, imposition of 
fine, and perpetual disqualification from holding public office, 
as may be applicable. Their liability shall be separate and 
independent from that of the elected public official.
The penalties herein shall be without prejudice to the filing of 
appropriate criminal, civil, or administrative cases under existing laws.


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SEC. 7. Implementing Rules and Regulations. - Within ninety 
(90) days from the effectivity of this Act, the Civil Service Commission 
(CSC), in consultation with the Office of the Ombudsman, shall 
promulgate the necessary rules and regulations to effectively 
implement this Act. The Securities and Exchange Commission (SECX 
the Philippine Competition Commission (PCC) and other relevant 
regulatory bodies shall assist the CSC in determining beneficial 
ownership.
SEC. 8. Separability Clause. - If any part or provision of this Act 
is held invalid or unconstitutional, the other parts or provisions thereof 
not so declared shall remain valid and effective.
SEC. 9. Repealing Clause. - All other laws, decrees, orders, 
issuances, rules, and regulations or parts thereof, which are inconsistent 
with this Act are hereby repealed or modified accordingly.
SEC. 10. Effectivity. - This Act shall take effect within fifteen 
(15) days following its complete publication in the Official Gazette or 
in two (2) newspapers of general circulation.
Approved,