HOUSE OF ROPRESENTATI
RECEIVED

Republic of the Philippines
HOUSE OF REPRESENTATIVE,
Quezon City

SEVENTEENTH CONGRESS.
First Regular Session

REC'STR ATION UNIT

HouSE BILL No, 3068} BiLis ave wore seavic

Introduced by Representative MARLYN L. PRIMICIAS-AGABAS

EXPLANATORY NOTE

This bill proposes the establishment of “Public Assets Management
Corporation,” principally tasked to ensure efficient managements of assets
seized or forfeited in favor of the government

At present, Republic Act No, 1379 or the “An Act Declaring Forfeiture In
Favor Of The State Any Property Found To Have Been Unlawfully Acquired By
Any Public Officer Or Employee And Providing For The Proceedings Therefor,”
provides for the process of forfeiture in cases of unlawfully acquired properties of
public officers or employees. However, there seems to be no main agency that
will handle management of recovered assets by the State. In result, absent
proper management to preserve and administer, the value of assets may
diminish resulting to the disadvantage of the State.

With the establishment of the Public Assets Management Corporation, it is
aimed that the interest of the State be well preserved and protected and that the
illegally acquired assets be brought back to the State for maximum use and
utilization,

Passage of the law is therefore earnestly sought

(Fp jy



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Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City

SEVENTEENTH CONGRESS
First Regular Session

3068

HOUSE BILL NO.

Introduced by Representative MARLYN L. PRIMICIAS-AGABAS

AN ACT
ESTABLISHING THE PUBLIC ASSETS MANAGEMENT CORPORATION OF THE
PHILIPPINES, PROVIDING FUNDS THEREFOR AND FOR OTHER PURPOSES

Be it enacted by the Senate and House of Representatives of the Philippines in
Congr embled.

SECTION 1. Short Title. - This Act shall be known as the Charter of the Public
Assets Management Corporation of the Philippines

SEC. 2. Declaration of Policy. ~ It is hereby declared the policy of the State to
ensure the efficient, economical, systematic, transparent and optimal preservation,
administration, management, liquidation and disposition of all assets seized or forfeited
in favor of the government in the course or as a consequence of criminal, administrative

and civil actions

SEC. 3. Creation of the Public Assets Management Corporation of the
Philippines. — There is hereby created an independent central public assets
management authority, which shall be a government-owned body corporate attached to
the Department of Finance (DOF) to be known as the Public Assets Management
Corporation of the Philippines (the Corporation). It shall have the primary responsibility
and objective of administering the country’s asset management regime, ensuring the

proper and prudent disposition of all assets seized or forfeited in favor of the State



SEC. 4. Corporate Governance. — The Corporation shall be governed by a
Board of Directors composed of the following

(a) The Secretary of Finance, as ex-officio Chair;

(b) The Secretary of Budget and Management as ex-officio Vice Chair;

() Three (3) members with backgrounds in banking and financial
services, insurance, real estate, property appraisal, engineering and
other technical fields, to be appointed by the President of the
Philippines and to serve for a term of five (5) years; and

(d) Two (2) members with backgrounds in general business or other
similar areas, to be appointed by the President of the Philippines and

to serve for a term of five (5) years

The operations and management of the Corporation shall be conducted by an
Executive Committee composed of the following

(a) A President;

(b) An Executive Vice President;

(c) A Senior Vice President for Operations;

(d) A Senior Vice President for Finance3

(e) A General Counsel and Corporate Secretary; and

(f) Three (3) Vice Presidents in charge of Asset Management, Asset
Valuation and Asset Liquidation/Disposition; all of whom shall be
appointed by the Chair upon endorsement by the Board of Directors

SEC. 5. Corporate Powers, — The Corporation shall have the following corporate
powers:

(a) Accept and take title to, custody over and possession of such assets and
other properties seized and/or forfeited by law enforcement, judicial and
other governmental entities in favor of the State in the course of criminal,


1 civil, administrative, anti-corruption, anti-money laundering or similar

2 proceedings, subject to the following rules:

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4 1. Assets seized by administrative agencies, In cases of
5 administrative forfeiture, the forfeiting agency has the option of
6 either:

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8 1.1 disposing of forfeited assets in accordance with the authority
9 inherent in their law enforcement mandates and pursuant to
10 their established systems and procedures, or

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12 1.2 turing over the same to the Corporation, especially in cases
13 where the optimal management or disposition of assets
14 require technical expertise and competence;

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16 2. Assets forfeited in favor of the State. In cases where assets have
v7 been forfeited in favor of the State by virtue of a final and executory
18 order of a court, the Corporation shall automatically take custody
19 over the same for proper administration and/or disposition; and

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21 3. Assets seized and subject of ongoing litigation. In cases where
22 assets are seized in connection with an ongoing criminal or
23 forfeiture litigation, said assets shall be considered in custodia legis
24 and may be placed under the physical custody of the Corporation
25 the agency which seized the same, or such other person or office
26 as the court may designate, in which case, the designated
27 custodian is deemed constituted as an agent of the court

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29 3.1, Prior to an official designation of a custodian by the
30 court, seized assets are deemed jpso jure under the

31 accountability and fiduciary responsibility of the agency


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which seized the same, or the agency with the duty to take
possession thereof in accordance with existing laws and

rule,

3.2. Upon motion by any interested party, including the
Corporation, the court shall conduct a summary hearing, to
be concluded within twenty (20) days from the filing of such
motion, to determine whether seized assets should be sold
or disposed of, if doing so would best serve the interests of
justice, The court must render a ruling on the motion no
later than ten (10) days from the conclusion of the summary
hearing

3.3. In the event that the seized assets are liable to
progressive wasting, dissipation, devaluation, depreciation or
deterioration, or cannot reasonably be conserved in a cost-
efficient manner, the court shall order a disposition pendente
lite unless itis established by competent evidence during the
summary hearing that such disposition will cause undue
injury or will adversely affect the substantive rights of the
parties or any third party, provided, than an order of the court
to sell or dispose of seized assets pendente lite shall not
affect the trial of the case or be construed as an adjudication
of the merits of the parties’ claims and defenses

3.4, The proceeds of the sale of seized assets disposed of
pendente lite shall be kept in a separate account and turned
over to the custody of the court for eventual release to the
prevailing party or to whoever may be adjudged as lawfully
entitled thereto.


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(b) Enter into contracts and/or execute any deed or act in furtherance of its
mandate to efficiently, economically and prudently manage, administer,
preserve, apprise, liquidate and/or dispose of assets under its custody;

(0) Execute and deliver, on behalf of the Government, the deeds of sale,
contracts and other instruments as may be necessary or appropriate to
convey title to such assets;

(d) Sell or dispose of seized or forfeited assets, subject to the rules provided
in paragraph (a) of this Section, without need of securing prior clearances
from other governmental entities, provided, that all such transactions shall
be subject to subsequent review under existing audit rules and
regulations, and shall be guided by principles of fairness, prudence,

accountability and transparency;

{e) Construct, own, lease, operate and maintain various forms of properties

as well as infrastructure facilities:

(f) Receive donations, grants, bequests and assistance of all kinds from local
and foreign governments and private sectors and utilize the same;

(g) Hire and retain such personnel complement as may be necessary for the
execution of its mandate; engage external services as the exigencies of
particular cases may require, including, but not limited to, technical
consultants, accountants, auditors, counsels, appraisers, risk managers,
curators, conservationists and others;

(h) Adopt, amend, or change its by-laws; to adopt, alter and use a seal: to
sue; and to exercise the general powers of a corporation mentioned in the
Corporation Code of the Philippines, insofar as such powers are not
inconsistent or incompatible with the provisions of this Charter; and


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(i) Conduct any such act, consistent with law, for the preservation of any
seized or forfeited asset, consistent with the professional and economic
management of the same

SEC. 6. Personnel, — The Board of Directors shall provide for an organization
and staff of officers and employees of the Corporation and, upon recommendation of
the President fix their remunerations and other emoluments. All positions in the
Corporation, including consultancies, shall be governed by the compensation, position
classification system and qualification standards approved by the Board of Directors
based on a comprehensive job analysis of actual duties and responsibilities. The
compensation plan shall be comparable to the prevailing compensation plans in the
private sector and shall be subject to periodic review by the Board of Directors once
every two (2) years, without prejudice to yearly merit reviews or increases based on the
Corporation's productivity and profitability. ‘The Corporation shall, therefore, be exempt
from existing laws, rules and regulations on compensation, position classification and
qualification standards. The Corporation shall, however, endeavor to make its system
conform as possible to the principles under the Compensation and Position
Classification Act of 1989

No officer or employee of the Corporation subject to Civil Service Law shall be

dismissed except for cause as provided by law

SEC. 7. Proceeds of Operations, ~ Proceeds derived from the management or
disposition of seized or forfeited assets shall be remitted by the Corporation to the
National Treasury or to the proper governmental office or agency as may be required by
law, provided, the Corporation shall be entitled to deduct therefrom the following: (1)
actual expenses incurred in the conservation, administration and disposition of said
assets, and (2) an amount equivalent to ten percent (10%) of the net proceeds as
management fees. Management fees may be adjusted based on relevant industry and
market standards and considerations, provided, that any adjustment must be subject to


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a detailed study and approved by the Board of Directors. All earings retained by the
Corporation shall be properly and prudently administered with a view to preserving its
viability

SEC. 8. Reimbursements for Expenses, ~ The Corporation shall be entitled to
reimbursement of actual and necessary costs for the maintenance, preservation and
conservation of seized assets in the event that a court of law adjudicates the same
against the State, provided, such costs shall be reimbursed by the prevailing party in an
amount to be equitably fixed by the court, provided further, the Corporation shall render
periodic reports to the proper courts regarding the status of assets under its custody
and the costs incurred for their maintenance, preservation and conservation, the same
to be considered by the said courts for purposes of fixing the amount of reimbursement
due the Corporation at the conclusion of trial

SEC. 9. Relations with Forfeiting Agencies. ~ The Corporation may enter into
Memoranda of Agreement with relevant forfeiting agencies to define their respective
roles, functions and financial responsibilities relative to the management, administration,
liquidation and disposition of seized or forfeited assets, and the transfer and payment of
the proceeds of disposition

SEC. 10. Immunity from Suit. - The Corporation shall not be subject to criminal
civil or administrative suits in connection with any act done or omitted by it in the regular
exercise of its functions and powers, provided, it acts in good faith and in consonance

with the State policy herein set forth

SEC. 11. Third Party Claims. — Any and all third party claims arising from any
seized or forfeited asset under the Corporation's custody shall be directed, to and
resolved by, such agency, tribunal or court hearing the case

SEC. 12. Capitalization and Initial Funding. - The capital of the Corporation shall
be five hundred million pesos (PhP 500,000,000.00), to be fully subscribed by the


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Government of the Republic of the Philippines, one hundred million pesos (PhP
100,000,000.00) of which shall be fully paid for by the Government within three (3)
years upon the effectivity of this Charter and the balance to be paid for within a period of
three (3) years thereafter, in such manner and form as the Government, through the
Secretary of Finance and Secretary of Budget and Management, may thereafter
determine, The initial funding for the operations of the Corporation for the first year
following the effectivity of this Charter shall be advanced by the DOF. Thereafter, the
capitalization of the Corporation shall be paid for by the Government by way of
appropriations from Congress

SEC. 13. By-Laws and Rules. — The Corporation shall adopt its by-laws, rules of
procedure and other regulatory issuances within ninety (90) days from the effectivity of
this Charter, and as often thereafter as exigencies may require

SEC. 14. Transitory Provision. ~ Upon the enactment of this Charter, the
Privatization and Management Office (PMO) shall wind up its affairs and be dissolved
pursuant to applicable laws and rules. The existing staff of the PMO, however, shall be
absorbed by the Corporation and converted ipso jure as its core unit, provided, all PMO
officers and employees who transition into the Corporation's staff shall not suffer any
diminution of benefits or disturbance of tenure, provided further, all PMO officers and
employees who choo:

not to be part of the Corporation shall be entitled to separation
benefits as provided by law. For the purpose of this Section, the Corporation shall not
be regarded as a continuation of the corporate personality of the PMO

SEC. 15. Separability Clause. — If any provision of this Charter shall be declared
unconstitutional, any other provision not affected thereby shall remain in full force and
effect,

SEC. 16. Repealing Clause, - All laws, decrees, orders, rules and regulations or
parts thereof inconsistent with this Charter are hereby repealed or modified accordingly


SEC. 17. Effectivity, - This Charter shall take effect within fifteen (15) days after

its publication in at least two (2) newspapers of general circulation

Approved