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REPUBLIC OF THE PHILIPPINES Dave: _Q5UL 2016
HOUSE OF REPRESENTATIVES TIVE:

Quezon City py:

SEVENTEENTH CONGRESS REGISTRATION Ui

First Regular Session

No. 1128

Introduced by MAGDALO Party-List Representative
HON. GARY C. ALEJANO

House

EXPLANATORY NOTE

In 1994, Republic Act No. 7696 entitled, "An Act Amending Certain Sections of Republic Act No.
6948, otherwise known as ‘An Act Standardizing and Upgrading the Benefits for Military
Veterans and their Dependents’,” was enacted to provide comprehensive benefits to war
veterans, military retirees and their surviving spouses and dependents. Through the years,
however, the national government was not able to fulfill its commitment to pay such benefits due
to lack of government appropriation since the law did not identify the source of funding for the
said pension.

In 2010, the government finally appropriated an amount of P170 million in the General
‘Appropriations Act to settle the arrears to the veterans. However, said amount was not enough to
cover the total government obligation which reached to P25 billion. The Department of National
Defense and the Department of Budget and Management came out with a Joint Circular
prioritizing the living/surviving World War Il veterans in the payment of the said arrears.
Therefore, a plan must be put in place in order to settle the remaining government obligations.

This bill, thus, seeks to utilize the proceeds from the development, lease, or other use of
government properties for the payment of these arrears. In the process, the national government
will accomplish its constitutional mandate of providing assistance to said beneficiaries without
affecting the national budget.

This measure was filed by the Magdalo Party-List in the 16th Congress and was subsequently
referred to the Committee on Veterans Affairs and Welfare.

In light of the foregoing, the urgent passage of this bill is earnestly requested.

(ON. GARY C. ALEJANO

BILLS AND INDEX SERVICE

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REPUBLIC OF THE PHILIPPINES
HOUSE OF REPRESENTATIVES
Quezon City

SEVENTEENTH CONGRESS
First Regular Session

House Bill No.

Introduced by MAGDALO Party-List Representative
HON. GARY C. ALEJANO

AN ACT
PROVIDING FOR THE PAYMENT OF ARREARS IN THE VETERANS' PENSIONS.
AND BENEFITS MANDATED PURSUANT TO REPUBLIC ACT NO. 7696, AS
AMENDED, OTHERWISE KNOWN AS AN ACT STANDARDIZING AND
UPGRADING THE BENEFITS FOR MILITARY VETERANS AND THEIR
DEPENDENTS AND APPROPRIATING FUNDS THEREFOR

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

SECTION 1. Declaration of Policy. It is hereby declared the policy of the State to
provide immediate and adequate care and benefits to war veterans by allotting the necessary
funds to pay for the arrears in the payment of pensions and other benefits of the veterans and

military retirees or their dependents.

SEC. 2. Coverage. This Act shall apply to the sale, lease, development or use of the
following properties of the government:

a, Former site of the Philippine Veterans Affairs Office (PVAO) at Arroceros Street,

Ermita, Manila;

b. Veterans Memorial Medical Center in Quezon City;

c. Taguig Industrial Estates;

d. Properties given by the Japanese government to the Philippines government under

the Reparations Agreement, including the Roponggi, Nampeidai and Fujimi properties in

Tokyo, and the Noniwacho and Obanoyama in Kobe; and

e. Other properties that may be identified by the Office of the President.


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SEC. 3. Privatization and Management Office. - The Privatization and Management
Office (PMO) of the Department of Finance is hereby authorized to implement the actual
marketing for the sale, lease, development or use of the above properties and to perform the
following:

a. Execute and deliver, on behalf of the national government, the deeds, contracts and
other instruments as may be necessary or appropriate to effect the lease, development or use of
said properties;

b. Engage external expertise as may be necessary in the fulfilment of its tasks;

c. Submit periodic reports to the PV AO on the status of private sector participation in the
lease, development or use of said properties; and

d. Adopt such rules and regulations as may be necessary to effect the provisions of this

Act.

SEC. 4, Funding Source. - All proceeds from the sale, lease, development or use of the
properties mentioned in Section 2 hereof shall be utilized to fund the pension and benefits of
veterans and military retirees, whether in arrears or due for payment by the national government:
Provided, That any shortfall in payment of pensions and benefits to veterans and military retirees
shall be settled by the national government from other sources.

All proceeds and receipts from the lease, development or use of said properties except
operational expenses shall be remitted directly to any government bank as the depository bank
and managed by the Philippine Veterans Affairs Office for purposes of Automatic distribution of

pensions and benefits directly to war veterans and military retirees.

SEC. 5. Implementing Rules and Regulations. - The Secretary of National Defense
shall, in coordination with the Secretary of Finance, issue the necessary rules and regulations for

the effective implementation of this Act within six (6) months after its effectivity.


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SEC. 6. Repealing Clause. - All laws, decrees, executive orders, issuances, rules and
regulations, or parts thereof inconsistent with the provisions of this Act are hereby repealed or

modified accordingly.

SEC. 7. Effectivity Clause. - This Act shall take effect fifteen (15) days after its complete

publication in aé least two (2) newspapers of general circulation.

Approved,