Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City, Metro Manila

CENED %
wn Yue 2013
SIXTEENTH CONGRESS Ss _

First Regular Session

19

House Bill No.

Introduced by HON. MARIA LEONOR G. ROBREDO

EXPLANATORY NOTE

The Constitutionally enshrined state policy of full disclosure of all government
transactions involving public interest seeks to encourage good governance.
Good governance begins with transparency, after all.

With this, there is a need for a law that specifically identifies documents and
information that the government should disclose fully even without anyone
requesting.

The Full Disclosure Bill seeks to be this necessary law. The proposed law obliges
all government agencies—from the executive, legislative, and judicial branches—
and its instrumentalities to conspicuously disclose their budget and financial
transactions instead of merely issuing a statement of income and expenses, as
prescribed by related provisions.

It is important to know how government funds are managed, disbursed, and
used, recognizing the fact that the funds are the hard-earned money of the
people that should be spent judiciously and only for the common good.

This proposed law not only ensures transparency but, by imposing penalties for
non-compliance, also deters public officials from committing graft and corruption
and other acts unbecoming of servant leaders.

A brief history of endeavors in transparency and accountability will shed light on
the ongoing diaspora of these principles:

The effort on disclosure was imbibed in the Department of the Interior and Local
Government's (DILG) Memorandum Circular No. 2010-83 issued by then
Secretary Jesse Robredo in August 2010 ordering LGUs and DILG regional
offices to report their finances as well as bids and public offerings.



Versions of this bill were also filed by Senator Franklin Drilon and former
Representative Joseph Emilio Abaya in January 2011 and August 2012,
respectively.

Other initiatives also include National Budget Circular 542 issued by the
Department of Budget and Management (DBM) under the leadership of
Secretary Florencio Abad. The circular reiterates compliance to the provision on
the Transparency Seal where agencies are mandated to maintain the seal on
their official websites. The seal would lead to a section where the government
entities’ budgets, programs, and projects are published and updated.

Hence, the passage of this bill is an urgent call especially in light of the
intensified campaign for citizen empowerment.

This measure will augment our people’s efforts in creating a more transparent
and accountable government. Information will empower our citizenry, and their
empowerment will help bring about good governance toward a more progressive
society.

On this note, the immediate passage of this bill is sincerely sought.

MARIA ek G. ROBREDO


ONaMaAwWN

.

11
12
13

14
15
16

Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City, Manila

Sixteenth Congress
First Regular Session

House Bill No. __ As

INTRODUCED BY HON. MARIA LEONOR G. ROBREDO

AN ACT REQUIRING FULL DISCLOSURE OF ALL INFORMATION ON FISCAL
MANAGEMENT FROM ALL NATIONAL GOVERNMENT DEPARTMENTS, BUREAUS,
AGENCIES AND OTHER INSTRUMENTALITIES, INCLUDING GOVERNMENT-
OWNED OR CONTROLLED CORPORATIONS, AND THEIR SUBSIDIARIES, AND
LOCAL GOVERNMENTS, AND PROVIDING PENALTIES FOR VIOLATIONS
THEREOF AND FOR OTHER PURPOSES

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

Section 1. Short Title. This Act shall be known as “Full Disclosure Act of 2013”.

Section 2, Declaration of Policy. It is hereby declared the policy of the State to
ensure transparency and accountability in public service among its officers and
employees. Likewise, the State recognizes and upholds public office as a public trust.
Towards this end, the State shall maintain honesty and integrity in the public service
and take positive and effective measures against graft and corruption; and adopt
and implement a policy of public disclosure especially with regard to fiscal
management.

Section 3. Definition of Terms. For the purpose of this Act, the following terms
shall be defined as follows:

(a) Approved Annual Budget refers to details pertaining to personnel services,
maintenance and other operating expenses and capital outlay of the
programs and projects per individual office;

(b) Annual Budget Execution Plan refers to details including, but not limited
to, intended outputs, obligation program, performance targets and
indicators, expected income and expenditures ;


13
14
15

16
17
18
19

20
21
22
23
24
25
26
27
28

29
30
31

32
33
34
35

36
37

©

(a)

(O}

(

(g)

(hy

@

10)

(Ky

Q

Annual Financial Statements pertain to the Balance Sheet, Statement of
Income and Expenses, and Statement of Cash Flows;

Annual Procurement Plan refers to details including, but not limited to,
the name of the program/activity/project and a brief description thereof,
mode of procurement, procurement schedule, source of funds and the
estimated budget;

Budget Accountability Report refers to details, including but not limited to,
the actual accomplishments relative to performance measures
determined at the start of execution as well as income earned and
obligations incurred;

Conspicuous places refer to areas that are easy to notice and are
accessible to the public;

Disclosure refers to the act of publishing and making public relevant
information and documents pertaining to budget, finances, and bids and
public offerings, for purposes of transparency and accountability;

Gender and Development Fund refer to an allocation equivalent to 5% of
the total budget of local government units, government agencies and
instrumentalities over a given period of time to address the gender
issues and concerns in their respective sectors and constituencies.

Invitation to Bid refers, but is not limited, to a brief description of the
subject matter of Procurement, a general statement on the criteria to be
used for the eligibility check, the shortlist of prospective bidders, the
examination, evaluation and post-qualification of bids, the date, time,
and place of the deadline for the submission & receipt of the eligibility
requirements, the pre-bid conference if any, the opening of bids,
approved budget for the contract, the source of funds, period of
availability of the documents, the place where these may be secured, as
well as the contract duration.

Local Development Fund refers to the amount equivalent to 20% of the
local government unit's internal revenue allocation intended for
development projects.

Local Disaster Risk Reduction Management Fund refers to the amount not
less than five percent (5%) of the estimated revenue from regular
sources set aside to support disaster risk reduction and management
activities;

Special Education Fund pertains to funds constituted from the proceeds
of additional estate taxes and certain portion of the taxes on Virginia-


*

w

Nan

10
11
12
13
4
15
16
17
18
19
20
21
22
23

24

26
27
28
29
30
31
32
33

type cigarettes and duties on imported leaf tobacco to be appropriated
for education activities as provided for under R.A. No. 5447;

(m) Trust Fund refers to funds administered separately from other funds for
specified purposes;

Section 4. Coverage. This Act shall cover all National Government departments,
bureaus, agencies and other instrumentalities, including government-owned or
controlled corporations, and their subsidiaries, and local governments.

Section 5. Disclosure of Public Documents.

(a) All National Government departments, bureaus, agencies and all other
instrumentalities are hereby mandated to disclose the following documents
and information:

@

‘The mandates and functions of the agencies, offices and
instrumentalities covered by this Act.

Approved annual budget

Budget Execution Documents

Budget Accountability Reports

Annual Procurement Plan

Invitation to Bid

Annual Financial Statements

Consolidated bi-annual financial and narrative accomplishment
reports

All other documents and information required to be made available
to the public by law, agency issuances and local ordinances.

(b) All Local Governments are hereby mandated to disclose the following
documents and information:

@
Gi)
(iii)
(iv)
(vy)
(vi)
(vii)

(viii)

Approved Annual Budget
Utilization of the Special Education Fund

Utilization of the Local Disaster Risk Reduction Management Fund
Utilization of the Local Development Fund

Utilization of the Gender and Development Fund

Utilization of the Trust Fund

Annual Financial Statements

Bi-annual financial and narrative accomplishment reports


14
15
16

17
18
19
20

21
22
23
24

25
26

27

this Act, shall be posted in conspicuous places within public buildings, print media
of general circulation, and in the official websites of the agencies, offices and
instrumentalities covered by this Act.

Section 7. Penalty. All heads of the departments, bureaus, agencies, and local chief
executives covered by Section 4 of this Act shall be held accountable for non-
compliance. Violation of this Act shall be penalized by a fine amounting to five
hundred thousand pesos (Php 500,000.00).

Section 8. Oversight Committee. The oversight committee, tasked to supervise and
monitor the adherence to the provisions herein of those covered by this Act, shall be
composed of: the Secretary of the Department of Budget and Management (DBM);
the Secretary of the Department of Interior and Local Government (DILG); and the
Secretary of the Department of Finance (DOF).

Section 9. Implementing Rules and Regulations. Within sixty (60) days from the
effectivity of this Act, the necessary rules and regulations, shall be formulated and
promulgated by the Oversight Committee.

Section 10. Separability Clause. If any provision of this Act or the application of
such provision to any person or circumstance is declared invalid or unconstitutional,
the remainder of the Act or the application of such provision to other persons or
circumstances shall remain valid and subsisting,

Section 11. Repealing Clause. All laws, presidential decrees or issuances, executive
orders, letters of instruction, administrative orders, rules and regulations contrary
to or inconsistent with the provisions of this Act are hereby repealed or modified
accordingly.

Section 12. Effectivity. This Act shall take effect fifteen (15) days after its complete
publication in at least two (2) newspapers of general circulation.

Approved.