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FOURTEENTH CONGRESS OF THE 
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REPUBLIC OF THE PHILIPPINES 
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Second Regular Session 
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Introduced by Sen. Juan Ponce Enrile 
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 grow1 
over the years into a distinct and strategic office which oversees and addresses the legal concerns 
of 
approximately 600 government-owned 
and -controlled 
corporations, government 
instrumentalities exercising corporate powers, government financial institutions and government 
corporate entities, their subsidiaries and corporate offsprings. 
Executive Order No. 292, 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 government corporations. 
In the recent case of Land Bank of the Philippines vs. Luciano-Panlilio, 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 government 
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 peifornied by its present complement of only fifty-seven (57) 
lawyers -- which includes the Government 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 fulfill 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 
earnestly sought. 


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FOURTEENTH CONGRESS OF l i 3 E  
) 
REPUBLIC OF THE l’€~ILll’l’INES 
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Second Regular Session 
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Introduced by Sen. Juan Ponce Enrile 
AN ACT 
TO STRENGTHEN THE OFFICE OF THE GOVERNMENT CORPORATE COUNSEL, 
FURTHER PROFESSIONALIZING ITS ORGANIZATION, UPGRADING EMPLOYEE 
BENEFITS AND APPROPRIATING FUNDS THEREFOR AND FOR OTHER 
PURPOSES 
BY RE-DEFINING, EXPANDING, STRENGTHENING, RATIONALIZING AND 
Be it enacted by the Senate and the 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, hereafier 
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, hereafter refcrred to as “OGCC”, shall be the legal 
counsel and principal law office of all government corporations. All government corporations 
shall refer to the OGCC the following: 
a) A11 legal questions for opinion and advice; 
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b) Prior to their execution, all contracts for review; and, 


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c) All 
cases for representation before regular courts, quasi-judicial bodies, 
administrative agencies and arbitral tribunals, Provided That: the Government 
Corporate Counsel, hereafter referred to as the “GCC”, may thereafter authorize 
the legal department of the government corporation as collaborating counsel to 
handle cases, as the urgency or expediency of circumstances may warrant. 
The OGCC shall exercise control and supervision over the legal departments of all 
government corporations without exception. No ‘government corporation shall engage the 
services of a private lawyer without the prior approval of the GCC and only in exceptional cases 
as may be determined by the GCC. 
All disputes or controversies exclusively between government corporations shall be 
brought before the OGCC for conciliation, mediation, arbitration or adjudication. 
SECTION 3. Expansion and Upgrading of Positions - The GCC shall have a cabinet 
rank and the same prerogatives, salary, allowances, benefits and privileges as the Presiding 
Justice of the Court of Appeals. Hehhe shall be assisted by a Deputy Government Corporate 
Counsel, hereafter referred to as “DGCC”, and twelve (12) Assistant Government Corporate 
Counsel, hereafter referred to as “AGCC”, who shall have the rank, salary, allowances, benefits 
and privileges of an Associate Justice of the Court of Appeals. 
No person shall be appointed GCC, DGCC or AGCC unless he/she is a natural-born 
citizen of the Philippines and, for at least ten (10) years, has been engaged in the practice of law 
in the Philippines. 
The number, rank, qualifications for appointment, salary, allowances, benefits and 
privileges of the other members of the legal staff shall be as follows: 
a) Twenty (20) Government Corporate Attorney IV, hereafter referred to as “GCA 
IV”, who shall have the rank, salary, allowances, benefits and privileges of a 
Regional Trial Court Judge. No person shall be appointed GCA IV unless he/she 
is a natural-born citizen of the Philippines and, for at least eight (8) years, has 
been engaged in the practice of law in the Philippines; 


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b) Twenty (20) Government Corporate Attorney 111, hereafter referred to as “GCA 
111”, who shall have the rank, salary, allowances, benefits and privileges of a 
Metropolitan Trial Court Judge. No person shall be appointed GCA I11 unless 
he/she is a natural-born citizen of the Philippines and, for at least five (5) years, 
has been engaged in the practice of law in the Philippines; 
c) Twenty (20) Government Corporate Attorney 11, hereafter referred to as “GCA 
11”, who shall have the rank, salary, allowances, benefits and privileges of a 
Municipal Trial Court Judge in Cities. No person shall be appointed GCA 11 
unless he/she is a natural-born citizen of the Philippines and, for at least four (4) 
years, has been engaged in the practice of law in the Philippines; 
d) Ten (1 0) Government Corporate Attorney I, hereafter referred to as “GCA I”, who 
shall have the rank, salary, allowances, benefits and privileges of a Municipal 
Trial Court Judge. No person shall be appointed GCA I unless he/she is a natural- 
born citizen of the Philippines and, for at least three (3) years, has been engaged 
in the practice of law in the Philippines; 
e) Seven (7) Associate Government Corporate Attorney I1 who must be members of 
the Philippine Bar and, for at least two (2) years, has been engaged in the practice 
of law in the Philippines; and, 
9 Five (5) Associate Government Corporate Attorney I 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 serve for a fixed term of seven (7) years reckoned from the date of hisher 
appointment. This provision will apply to appointments to the position of the GCC after the 
effectivity of this Act. 
The GCC, DGCC and AGCC shall be appointed by the President of the Philippines. The 
other members of the legal staff and administrative personnel shall be appointed by the GCC. 
Appointments of the DGCC, AGCC and other members of the legal staff shall be deemed 
permanent upon compliance with the qualification standards heretofore stated. 


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The administrative structure of the OGCC shall be organized into the Finance and 
Accounting Services, the Human Resource and Management Services, the Case and Records 
Management Services, the Library Management and Information Technology Services and the 
Property and Supply Services. 
The legal and non-legal staff of the OGCC occupying the positions affected by the 
changes embodied in this Act at the time of its approval shall thereafter occupy and discharge the 
duties and functions of the upgraded positions and receive and receive the corresponding salary 
and benefits without necessity of new appointment. 
SECTION 4. Compensation - The basic monthly compensation of the legal staff shall 
be as follows: 
Position 
Government Corporate Counsel 
Deputy Government Corporate Counsel 
Assistant Government Corporate Counsel 
Government Corporate Attorney IV 
Government Corporate Attorney 111 
Government Corporate Attorney I1 
Government Corporate Attorney I 
Associate Government Corporate Attorney I 
Associate Government Corporate Attorney I1 
* Grade 
From 
To 
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The non-legal personnel shall have the same compensation as that of their counterparts in 
the Office of the Solicitor General and Court of Appeals. 
The salaries and privileges of the personnel of the OGCC granted under this Act may 
further be increased to match any corresponding increase in salaries and privileges subsequently 
granted to their respective counterparts in the judiciary. 
SECTION 5. Personnel beneJts nnd privileges - Provisions of other laws to the 
contrary notwithstanding, the OGCC may provide its employees the following benefits: 


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a) Health care services through a health maintenance organization (HMO). 
Expenses for the mandatory medical annual check-up of the GCC, the DGCC and 
the AGCC shall be for the account of the office; 
b) Accident insurance for all employees to be procured by the office at its own 
expense during travels while in the performance of official duties; 
c) 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 provision shall be 
selected on the basis of merit as determined by competitive examination; and, 
d) A provident fund which shall consist of, but not be limited to contributions made 
by the office and by its lawyers and employees to a common fund for the 
payment of benefits to such lawyers or employees or their respective 
beneficiaries/heirs. 
SECTION 6. Seminar and other Professional Fees - Subject to 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) shall be borne by the office. 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 OGCC. 
SECTION 7. Transportation Benefits - Subject to availability of funds, employees shall be 
provided with contracted transportation services until such time as the office can procure 
additional motor vehicles for this purpose. 
SECTION 8. Other Benefits - Provisions of other laws to the contrary notwithstanding, the 
legal staff of the OGCC are allowed to receive allowances and honoraria fiom its client- 
government corporations. Employees of the OGCC may likewise be extended such benefits and 
privileges as are given to the employees of their clients. 
When the exigency of the service so 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 


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perform special or additional tasks in any o f  the client government corporations of the OGCC 
and by virtue of such designation or assignment, receive such additional compensation and 
privileges as may be granted them by the government corporation concerned. 
SECTION 9. Attorney’s fees atid Special Assessment - The OGCC is authorized to 
receive twenty percent (20%) of all the money claims collected by or awarded/adjudged to 
client-government corporations in addition to the attorney’s fees awarded by a court, tribunal or 
panel, including awarddjudgments, stipulated under court-approved compromise agreements, 
which award and attorneys fees may be used by the OGCC to meet contingencies, obligations 
and undertakings, or for employee salaries, allowances, other benefits and incentives, necessary 
or proper to promote efficiency in the service as determined by the GCC. 
The GCC is likewise authorized to make special assessments upon its client government 
corporations to similarly meet such contingencies, obligations and undertakings, or to provide for 
employee salaries, allowances, other benefits and incentives, as may be warranted or proper as 
determined by the GCC. 
SECTION 10. Special Allowance - The GCC, DGCC, AGCC and other members of 
the legal staff may be granted special allowances in such amounts to be determined by the GCC 
to implement the salary increases. The grant of special allowances shall be implemented 
uniformly in such amounts and up to extent only that can be supported by the funding source 
specified in Section 11 hereof. 
SECTION 11. 
Funding - The funds required for the implementation of this Act 
including employee benefits shall be taken from: 
a) 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; 
b) Special assessments made by the GCC upon client government corporations; and, 
c) Other revenues, savings, fees generated and collected and donations received by 
the OGCC. 


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SECTION 12. Franking Privilege - All official matters and telegrams of the OGCC 
addressed for delivery within the Philippines shall be received, transmitted and delivered free of 
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charge Provided That such mail matters when addressed to private persons or non- government 
offices shall not exceed one hundred and twenty (120) grams. 
SECTION 13. Appropriations - The amount needed for employees’ salaries, mandatory 
allowances and benefits under other laws and office expansion shall be appropriated in budget of 
the OGCC under the annual General Appropriations Act. 
SECTION 14. Implementing Rules and Regulations - Within sixty (60) days from the 
approval of this Act, the GCC in consultation with the Secretary 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 this Act. 
SECTION 15. Repealing Clause - Provisions of Executive Order No. 292 or the 
Revised Administrative Code of 1987, as amended, Executive Order No. 878 dated March 4, 
1983, Presidential Decree No. 1415 dated June 9, 1978, Republic Act No. 6000 dated August 4, 
1969 and other pertinent laws, rules and regulations shall remain in force and effect unless 
otherwise contrary or inconsistent with the provisions of this Act. 
SECTION 16. Separability Clause - If any of the provisions of this Act is declared 
invalid or unconstitutional, the provisions not affected thereby shall continue to be in full force 
and effect. 
SECTION 17. Effectivity - This Act shall take effect after fifteen (15) days from its 
publication in a national newspaper of general circulation. 
Approved 
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