THIRTEENTH CONGRESS OF THE REPUBLIC ) 
OF THE PHILIPPINES 
1 
’mi RUL I I 
F‘ -3 ~
‘
2
 
First Regular Session 
1 
c= 71 
S.B. No. 
E N A  
3 
~~~~~~V~~ BY’. 
Introduced by Senator Miriam Defensor Santiago 
EXPLANATORY NOTE 
This bill is an adaptation of the US False Claims Act that seeks to combat financial fraud 
perpetrated against the government by individuals and companies. 
In the United States, the False Claims Act has proven to be one of the most effective tools 
in fighting all types of financial fraud perpetrated against the government. It contained qui tam 
provisions that allow private citizens to sue, on the government’s behalf, companies and 
individuals that are defrauding the government. Qui tarn is short for a Latin phrase, “qui tam pro 
domino rege quam pro se ipso in hac parte sequitur, ” which roughly means, “he who brings an 
action for the king as well as for himself.” 
The qui tam provisions have been the key to the law’s success. Many people who file qui 
tam lawsuits (called the “relators”) are employees or former employees of companies that 
commit fraud, But anyone who knows of an instance where the government has paid false claims 
can file a qui tam lawsuit. That could be, for example, a competitor, a subcontractor, or even a 
patient. 
The whistleblower does not need to have personal knowledge of the fraud to file a False 
Claims Act case. The lawsuit can be based on information the relator learned from a friend, a 
relative, a competitor, etc. As long as the individual is not publicly disclosed and the government 
has not already sued the individual or company for the fraud, the relator may bring a qui tam 
lawsuit. 
The False Claims Act has encouraged a number of individuals to step forward and report 
fraud because it gives whistleblowers pecuniary incentives. Since 1986, the US government has 
recovered more than $3.5 billion as a result of qui tam lawsuits (Department of Justice Statistics, 
as of February 24,2000). 
This bill also seeks to give whistleblowers a share of the recoveries that result from qui 
tam lawsuits to give people a strong incentive to step forward and take the personal and 
professional risks involved in pursuing a false claim lawsuit; hence, reducing fraud perpetrated 
against the government. 


THIRTEENTH CONGRESS OF THE REPUBLIC ) 
OF THE PHLPPINES 
) 
‘04 nl,i-?l :307 
First Regular Session 
) 
Introduced by Senator Miriam Defensor Santiago 
AN ACT 
TO COMBAT FINANCIAL FRAUD PERPETRATED AGAINST 
THE GOVERNMENT 
Be it enacted by the Senate and the House of Representatives of the Philippines in 
Congress assembled: 
SECTION 1. Short Title. - This Act shall be known as the “False Claims Act.” 
SECTION 2. Declaration ofPolicy. - It is hereby declared to be the policy of the State to 
give priority to the enactment and enforcement of stronger measures to combat financial fraud 
perpetrated against the government by individuals and companies. 
SECTION 3. False Claims. - (1) Liability for certain acts - Any person who - (A) 
knowingly presents, or causes to be presented, to an officer or employee of the government or a 
member of the Armed Forces of the Philippines a false or fraudulent claim for payment or 
approval; 
(B) knowingly makes, uses, or causes to be made or used, a false record or 
statement to get a false or fraudulent claim paid or approved by the government; 
(C) conspires to defraud the government by getting a false or fraudulent 
claim allowed or paid; 
(D) has possession, custody, or control of property or money used, or to be 
used, by the government and, intending to defraud the government, willfully 
conceals the property, delivers, or causes to be delivered, less property than the 
amount for which the person receives a certificate or receipt; 


(E) authorizes to make or deliver a document certifying receipt of property 
used, or to be used, by the government and, intending to defraud the government, 
makes or delivers the receipt without completely knowing that the information on 
the receipt is true; 
(F) knowingly buys, or receives as a pledge of an obligation or debt, 
public property from an officer or employee of the government, or a member of 
the Armed Forces, who may not lawfully sell or pledge the property; or 
(G) knowingly makes, uses, or causes to be made or used, a false record or 
statement to conceal, avoid, or decrease an obligation to pay or transmit money or 
property to the government, is liable to the government for a civil penalty of not 
less than Two Hundred Thousand Pesos (P200,OOO.OO) but not more than Four 
Hundred Thousand Pesos (P400,000.00), plus three times the amount of damages 
which the government sustains because of the act of that person, except that if the 
court finds that - 
(i) the person committing the violation of this Act furnished 
officials of the government responsible for investigating false claims 
violations with all information lmown to such person about the violation 
within thirty (30) days after the date on which the defendant first obtained 
the information; 
(ii) such person fully cooperated with any government 
investigation of such violation; and 
(iii) at the time such person furnished the government with the 
information about the violation, no criminal prosecution, civil action, or 
administrative action had commenced under this Act with respect to such 
violation, and the person did not have actual knowledge of the existence of 
an investigation into such violation; the court may assess not less than two 
(2) times the amount of damages which the government sustains because 
of the act of the person. A person violating this section shall also be liable 


to the government for the costs of a civil action brought to recover any 
such penalty or damages. 
(2) Knowing and Knowingly Defined - For purposes of this Act, the terms 
“knowing” and “knowingly” mean that a person, with respect to information - 
(A) has actual knowledge of the information; 
(E%) acts in deliberate ignorance of the truth or falsity of the information; or 
(C) acts in reckless disregard of the truth or falsity of the information, and 
no proof of specific intent to defraud is required. 
(3) Claim Defined - For purposes of this section, “claim” includes any request or 
demand, whether under a contract or otherwise, for money or property which is made to a 
contractor, grantee, or other recipient for any portion of the money or property which is 
requested or demanded, or if the government will reimburse such contractor, grantee, or 
other recipient for any portion of the money or property which is requested or demanded. 
(4) Exclusion - This section does not apply to claims, records, or statements made 
under the National Internal Revenue Code. 
SECTION 4. Civil actions for false claims. - 
(1) Responsibilities of the Solicitor General - The Solicitor General diligently 
shall investigate a violation under Section 3. If the Solicitor General finds that a person 
has violated or is violating Section 3, he may bring a civil action under this section 
against that person. 
(2) Actions by Private Persons - (A) A person may bring a civil action for a 
violation of section 3 for the person and for the government. The action shall be brought 
in the name of the government. The action may be dismissed only if the court and the 
Solicitor General give written consent to the dismissal and their reasons for consenting. 
(B) A copy of the complaint and written disclosure of substantially all 
material evidence and information the person possesses shall be served on the 
government pursuant to the pertinent provisions of the Rules of Court on Civil 
Procedure. The complaint shall remain under seal for at least sixty (60) days and 


shall not b e served on the defendant until the court so orders. The government 
may elect to intervene and proceed with the action within sixty (60) days after it 
receives both the complaint and the material evidence and information. 
(C) The government may, for good cause shown, move the court for 
extensions of the time during which the complaint remains under seal. Any such 
motions may be supported by affidavits. The defendant shall not be required to 
respond to any complaint filed under this section until twenty (20) days after the 
complaint is unsealed and served upon the defendant. 
@)Before the expiration of the sixty (60) day period, the government 
shall - 
(i) proceed with the action, in which case the action shall be 
conducted by the government; or 
(ii) notify the court that it declines to take over the action, in which 
case the person bringing the action shall have the right to conduct the 
action. 
(E) When a person brings an action under this s ection, no p erson o ther 
than the government may intervene or bring a related action on the facts 
underlying the pending action. 
(3) Rights of the Parties to Qui Tam Actions - (A) If the government proceeds 
with the action, it shall have the primary responsibility for prosecuting the action, and 
shall not be bound by an act of the person bringing the action. Such person shall have the 
right to continue as a party to the action, subject to the limitations set forth in paragraph 
(B). 
(B) (i) The government may dismiss the action, notwithstanding the 
objections of the person initiating the action, if the person has been notified by the 
government of the filing of the motion and the court has provided the person with 
an opportunity for a hearing on the motion. 
(ii) The government may settle the action with the defendant, 
notwithstanding the objections of the person initiating the action, if the 


court determines, after hearing, that the proposed settlement is fair, 
adequate, and reasonable under all the circumstances. 
(iii) Upon showing by the government that unrestricted 
participation during the course of the litigation by the person initiating the 
action would interfere with or unduly delay the government’s prosecution 
of the case, or would be repetitious, irrelevant, or for purposes of 
harassment, the court may, in its discretion, impose limitations on the 
person’s participation, such as - 
(a) limiting the number of witnesses the person may call; 
(b) limiting the length of the testimony of such witnesses; 
(c) limiting the person’s 
cross-examination of the 
witnesses; or 
(d) otherwise limiting the participation by the person in 
litigation. 
(iv) Upon a showing by the defendant that unrestricted 
participation during the course of the litigation by the person initiating the 
action would be for purposes of harassment or would cause the defendant 
undue burden or unnecessary expense, the court may limit the 
participation by the person in the litigation. 
(C) If the government elects not to proceed with the action, the person 
who initiated the action shall have the right to conduct the action. If the 
government so requests, it shall be served with copies of all pleadings filed in the 
action and shall be supplied with copies of all deposition transcripts (at the 
government’s expense). When a person proceeds with the action, the court, 
without limiting the status and rights of the person initiating the action, may 
nevertheless permit the government to intervene at a later date upon a showing of 
good cause. 
(D) Whether or not the government proceeds with the action, upon a 
showing by the government that certain actions of discovery by the person 


initiating the action would interfere with the government’s investigation or 
prosecution of a criminal or civil matter arising out of the same facts, the court 
may stay such discovery for a period of not more than sixty (60) days. The court 
may extend the 6 0-day p eriod upon a further showing that the g ovemment has 
pursued the criminal or civil investigation or proceedings with reasonable 
diligence and any proposed discovery in the civil action will interfere with 
reasonable diligence and any proposed discovery in the civil action will interfere 
with the ongoing criminal or civil investigation or proceedings. 
(4) Award to Qui Tam Plaintiff - (A) If the government proceeds with an action 
brought by a person under subsection (2), such person shall, subject to the second 
sentence of this paragraph, receive at least fifteen percent (15%) but not more than 
twenty-five percent (25%) of the proceeds of the action or settlement of the claim, 
depending upon the extent to which the person substantially contributed to the 
prosecution of the action. Where the action is one which the court finds to be based 
primarily on disclosures of specific information (other than information provided by the 
person bringing the action) relating to allegations or transactions in a criminal, civil, or 
administrative hearing, in a congressional, administrative, report, hearing, audit, or 
investigation, or from the news media, the court may award such sums as it considers 
appropriate, but in no case more than ten percent (10%) of the proceeds, taking into 
account the significance of the information and the role of the person bringing the action 
in advancing the case to litigation. Any payment to a person under the first or second 
sentence of this paragraph shall be made from the proceeds. Any such person shall also 
receive an amount for reasonable expenses which the court finds to have been necessarily 
incurred, plus reasonable attorney’s fees and costs. All such expenses, fees, and costs 
shall be awarded against the defendant. 
(B) If the government does not proceed with an action under this section, 
the person bringing the action or settling the claim shalI receive an amount which 
the court decides is reasonable for collecting the civil penalty and damages. The 
amount shall be not less than twenty-five percent (25%) and not more than thirty 


percent (30%) of the proceeds of the action or settlement and shall be paid out of 
such proceeds. Such person shall also receive an amount for reasonable expenses 
which the court finds to have been necessarily incurred, plus reasonable attorney’s 
fees and c osts. A 11 such expenses, fees, and c osts shall b e a warded against the 
defendant. 
(C) Whether or not the government proceeds with the action, if the court 
finds that the action was brought by a person who planned and initiated the 
violation of section 3 upon which the action was brought, then the court may, to 
the extent the court considers appropriate, reduce the share of the proceeds of the 
action which the person would otherwise receive under paragraph (A) or (B) of 
this section, taking into account the role of that person in advancing the case to 
litigation and any relevant circumstances pertaining to the violation. If the person 
bringing the action is convicted of criminal conduct arising from his or her role in 
the violation of section 3, that person shall be dismissed form the civil action and 
shall not receive any share of the proceeds of the action. Such dismissal shall not 
prejudice the right of the government to continue the action, represented by the 
Department of Justice. 
. 
(D) If the government does not proceed with the action and the person 
bringing the action conducts the action, the court may award to the defendant its 
reasonable attorney’s fees and expenses if the defendant prevails in the action and 
the court finds that the claim of the person bringing the action was clearly 
frivolous, clearly vexatious, or brought primarily for purposes of harassment. 
( 5 )  Certain Actions Barred - (A) No court shall have jurisdiction over an action 
brought by a former or present member of the armed forces under subsection (2) of this 
section against a member of the Armed Forces arising out of such person’s service in the 
Armed Forces. 
(B) No court shall have jurisdiction over an action brought under 
subsection (2) against a member or Congress, a member of the judiciary, or a 


senior executive branch official if the action is based on evidence or information 
known to the government when the action was brought. 
(C) In no event may a person bring an action under subsection (2) which is 
based upon allegations or transactions which are the subject of a civil suit or an 
administrative civil money penalty proceeding in which the government is already 
a party. 
(D) (i) No court shall have jurisdiction over an action under this section 
based upon the public disclosure of allegations or transactions in a criminal, civil, 
or administrative hearing, in a congressional, administrative report, hearing, audit, 
or investigation, or from the news media, unless the action is brought by the 
Solicitor General or the person bringing the action is an original source of the 
information. 
(ii) For purposes of this paragraph, “original source” means an 
individual who has direct and independent knowledge of the information 
on which the allegations are based and has voluntarily provided the 
information to the government before filing an action under this section 
which is based on the information. 
(6) Government not liable for certain expenses - The government is not liable for 
expenses which a person incurs in bringing an action under this section. 
(7) Any employee who is discharged, demoted, suspended, threatened, harassed, 
or in any manner discriminated against in the terms and conditions of employment by his 
or her employer because of lawful acts done by the employee on behalf o f  the employee 
or others in furtherance of an action under this section, including investigation for, 
initiation of, testimony for, or assistance in an action filed or to be filed under this 
section, shall be entitled to all relief necessary to male the employee whole. Such relief 
shall include reinstatement with the same seniority status such employee would have had 
but for the discrimination, two times the amount of back pay, interest on the back pay, 
and compensation for any special damages sustained as a result of the discrimination, 
including litigation costs and reasonable attorney’s fees. 


SECTION 5. False claimsprocedure. - 
(1) A subpoena requiring the attendance of a witness at a trial or hearing 
conducted under section 4 of this Act may be served at any place in the Philippines. 
(2) A civil action under section 4 may not be brought - 
(A) more than six (6) years after the date on which the violation of section 
3 is committed, or 
(E%) more than three (3) years after the date when facts material to the right 
of action are known or reasonably should have been known by the official of the 
government charged with responsibility to act in the circumstances, but in no 
event more than ten (10) years after the date on which the violation is committed, 
whichever occurs last. 
(3) In any action brought under section 4, the government shall be required to 
prove all essential elements of the cause of action, including damages, by a 
preponderance of the evidence. 
(4) Notwithstanding any other provision of law or the Rules of Criminal 
Procedure, a final judgment rendered in favor of the government in any criminal 
proceeding charging fraud or false statements, whether upon a verdict after trial or upon a 
plea of guilty, shall stop the defendant from denying the essential elements of the offense 
in any action which involves the same transaction as in the criminal proceeding and 
which is brought under subsection (1) or (2) of section 4. 
SECTION 6. False Claims Jurisdiction. - Any action under section 4 may be brought in 
any court in which the defendant or, in the case of multiple defendants, any one defendant can be 
found, resides, transacts business, or in which any act proscribed by section 4 occurred. A 
summons as required by the Rules of Civil Procedure shall be issued by the appropriate court and 
served at any place within or outside the country. 


SECTION 7. Civil Investigative Demands. - 
(1) In General - 
(A) Issuance and service - Whenever the Solicitor General has reason to 
believe that any person may be in possession, custody, or control of any 
documentary material or information relevant to a false claims law investigation, 
the Solicitor General may, before commencing a civil proceeding under section 4 
or other false claims law, issue in writing and cause to be served upon such 
person, a civil investigative demand requiring such person - 
(i) to produce such documentary material for inspection and 
copying; 
(ii) to answer in writing written interrogatories with respect to such 
documentary material or information; 
(iii)to give oral testimony concerning such documentary material 
or information; or 
(iv)to furnish any combination of such material, answers, or 
testimony. The Solicitor General may not delegate the authority to issue 
civil investigative demands under this subsection. Whenever a civil 
investigative demand is an express demand for any product of discovery, 
the Solicitor General shall cause to be served, in any manner authorized by 
this section, a copy of such demand upon the person from whom the 
discovery was obtained and shall notify the person to whom such demand 
is issued of the date on which such copy was served. 
(B) Contents and deadlines - 
(i) Each civil investigative demand issued under paragraph (A) 
shall state the nature of the conduct constituting the alleged violation of a 
false claims law which is under investigation, and the applicable provision 
of law alleged to be violated. 
(ii) If such demand is for the production of documentary material, 
the demand shall - 


(a) describe each class of documentary material to be 
produced with such definiteness and certainty as to permit such 
material to be fairly identified; 
(b) p rescribe a r etum d ate for e ach such class which will 
provide a reasonable period of time within which the material so 
demanded may be assembled and made available for inspection 
and copying; and 
(c) identify the false claims law investigator to whom such 
material shall be made available. 
(iii) If s uch d emand is for answers to written interrogatories, the 
demand shall - 
(a) set forth with specificity the written interrogatories to 
be answered; 
(b) prescribe dates at which time answers to written 
interrogatories shall be submitted; and 
(c) identify the false claims law investigator to whom such 
answers shall be submitted. 
(iv) If such demand is for the giving of oral testimony, the demand 
shall - 
(a) prescribe a date, time, and place at which oral 
testimony shall be commenced; 
@) identify a false claims law investigator who shall 
conduct the examination and the custodian to whom the transcript 
of such examination shall be submitted; 
(c) specify that such attendance and testimony are 
necessary to the conduct of the investigation; 
(d) notify the person receiving the demand of the right to 
be accompanied by an attorney and any other representative; and 


(e) describe the general purpose for which the demand i s 
being issued and the general nature of the testimony, including the 
primary areas of inquiry, which will be taken pursuant to the 
demand. 
(v) Any civil investigative demand issued under this section which 
is an express demand for any product of discover shall not be returned or 
returnable until twenty ( 20) d ays after a c opy o f s uch demand has been 
served upon the persons from whom the directory was obtained. 
(vi) The date prescribed for the commencement of oral testimony 
pursuant to a civil investigative demand issued under this section shall be 
a date which is not less than seven (7) days after the date on which 
demand is received, unless the Solicitor General determines that 
exceptional circumstances are present which warrant the commencement 
of such testimony within a lesser period of time. 
(vii) The Solicitor General shall not authorize the issuance under 
this section of more than one (1) civil investigative demand for oral 
testimony by the same person unless the person requests otherwise or 
unless the Solicitor General, after investigation, notifies that person in 
writing that an additional demand for oral testimony is necessary. The 
Solicitor General may not authorize the performance, by any other officer, 
employee, or agency, or any function vested in the Solicitor General under 
this subparagraph. 
(C) Protected Material or Information - 
(i) In general - A civil investigative demand issued under 
subsection (1) may not require the production of any documentary 
material, the submission of any answers to written interrogatories, or the 
giving of any oral testimony if such material, answers, or testimony would 
be protected from disclosure under - 


(a) the standards applicable to subpoenas or subpoenas 
duces tecum issued by a court; or 
(b) the standards applicable to the discovery requests of the 
Rules of Civil Procedure, to the extent that the application of such 
standards to any such demand i s appropriate and consistent with 
the provisions and purposes of this section. 
(ii) Effect on other orders, rules, and laws - Any such demand 
which is an express demand for any product of discovery supersedes any 
inconsistent order, rule, or provision of law (other than this section) 
preventing or restraining disclosure o f s uch product o f d iscovery to any 
person. Disclosure of my product of discovery pursuant to any such 
express demand does not constitute a waiver of any right or privilege 
which the person making such disclosure may be entitled to invoke to 
resist discovery of trial preparation materials. 
(D) Service; Jurisdiction - 
(i) By whom served - Any civil investigative demand issued under 
subsection (1) may be served by a false claims law investigator, at any 
place within the territorial jurisdiction of any court. 
(ii) Service in foreign countries - Any such demand or any petition 
filed under paragraph (J) may be served upon any person who is not found 
within the territorial jurisdiction of any court in such manner as the Rules 
of Civil Procedure prescribe for service in a foreign country. 
(iii) Service upon legal entities and natural persons - (a) Legal 
entities - Service of any civil investigative demand issued under 
subsection (1) or of any petition filed under paragraph (J) may be made 
upon a partnership, corporation, association, or other legal entity by - 
(1) delivering an executed copy of such demand or 
petition to any partner, executive officer, managing agent, 
or general agent of the partnership, corporation, association 


or entity, or to any agent authorized by appointment or by 
law to receive service of process on behalf of such 
partnership, corporation, association, or entity. 
(2) delivering an executed copy of such demand or 
petition to the principal office or place of business of the 
partnership, corporation, association, or entity; or 
(3) depositing an executed copy of such demand or 
petition in the mails by registered or certified mail, with a 
return receipt requested, addressed to such partnership, 
corporation, association, or entity at its principal office or 
place of business. 
(b) Natural persons - Service of any such demand or 
petition may be made upon any natural person by - 
(1) delivering an executed copy of such demand or 
petition to the person; or 
(2) depositing an executed copy of such demand or 
petition in the mails by registered or certified mail, with a 
return receipt requested, addressed to the person at the 
person’s residence or principal office or place of business. 
(E) Proof of Service - A verified return by the individual serving any civil 
investigative demand issued under subsection (1) or any petition file under 
paragraph (J) setting forth the manner of such service shall be proof of such 
service. In the case of service by registered or certified mail, such return shall be 
accompanied by the return post office receipt of delivery of such demand. 
(F) D ocumentary Material - The production o f documentary material in 
response to a civil investigative demand served under this section shall be made 
under a sworn certificate, in such form as the demand designates, by - 
(i) in the case of a natural person, the person to whom the demand 
is directed; or 


control, or knowledge of the person to whom the demand is directed has 
been submitted. To the extent that any information is not furnished, the 
information shall be identified and reasons set forth with particularity 
regarding the reasons why the information was not furnished. 
(I) Oral Examinations - 
(i) Procedures - The examination of any person pursuant to a civil 
investigative demand for oral testimony served under this section shall be 
taken before an officer authorized to administer oaths and affirmations by 
law of the Philippines or of the place where the examination is held. The 
officer before whom the testimony is to be taken shall put the witness on 
oath or affirmation and shall, personally or by someone acting under the 
direction of the officer and in the officer’s presence, record the testimony 
of the witness. The testimony shall be taken stenographically and shall be 
transcribed. When the testimony is fully transcribed, the officer before 
whom the testimony is taken shall promptly transmit a copy of the 
transcript of the testimony by any means authorized by, and in a manner 
consistent with, the Rules of Civil Procedure. 
(ii) Persons present - The false claims law investigator conducting 
the examination shall exclude from the place where the examination is 
held all persons except the person giving the testimony, the attorney for, 
and any other representative of the person giving the testimony, the 
attorney for the government, any person who may be agreed upon by the 
attorney for the government and the person giving the testimony, the 
officer b efore w hom the testimony is to be taken, and any stenographer 
taking such testimony. 
(iii) Where testimony taken - The oral testimony of any person 
taken pursuant to a civil investigative demand served under this Section 
shall be taken in the court within which such person resides, is found, or 


transacts business, or in such other place as may be agreed upon by the 
false claims law investigator conducting the examination and such person. 
(iv) Transcript of testimony - When the testimony is fully 
transcribed, the false claims law investigator or the officer before whom 
the testimony is taken shall afford the witness, who may be accompanied 
by counsel, a reasonable opportunity to examine and read the transcript, 
unless such examination and reading are waived by the witness. Any 
changes in form or substance which the witness desires to make shall be 
entered and identified upon the transcript by the officer or the false claims 
law investigator, with a statement of the reasons given by the witness for 
making such changes. The transcript shall then be signed by the witness, 
unless the witness in writing waives the signing, is ill, cannot be found, or 
refuses to sign. If the transcript is not signed by the witness within thirty 
(30) days after being afforded a reasonable opportunity to examine it, the 
officer or the false claims law investigator shall sign it and state on the 
record the fact of the waiver, illness, absence of the witness, or the refusal 
to sign, together with the reasons, if any, given therefore. 
(v) Certification and delivery to custodian - The officer before 
whom the testimony is taken shall certify on the transcript that the witness 
was sworn by the officer and that the transcript is a true record of the 
testimony given by the witness, and the officer or false claims law 
investigator shall promptly deliver the transcript, or send the transcript by 
registered or certified mail, to the custodian. 
(vi) Furnishing or inspection of transcript by witness - Upon 
payment of reasonable charges therefore, the false claims investigator 
shall furnish a copy of the transcript to the witness only except that the 
Solicitor General may, for good cause, limit such witness to inspection of 
the official transcript of the witness’ testimony. 


(vii) Conduct of oral testimony - (a) Any person compelled to 
appear for oral testimony under a civil investigative demand issued under 
subskction (1) may be accompanied, represented, and advised by counsel. 
Cou sel may advise such person, in confidence, with respect to any 
que 1 
tion asked of such person. Such person or counsel may object on the 
reco 1 d to any question, in whole or in part, and shall briefly state for the 
record the reason for the objection. An objection made, received, and 
entered upon the record when it is claimed that such person is entitled to 
refuse to answer the question on the grounds of any constitutional or other 
legal rights of privilege, including the privilege against self-incrimination. 
Such person may not otherwise object to or refuse to answer any question, 
and may not directly or through counsel otherwise interrupt the oral 
examination. If such person refuses to answer any question, a petition may 
be filed in the court under subsection (J)(i) for an order compelling such 
person to answer such question. 
(b) If such person refuses to answer any question on the 
grounds of the privilege a gainst s elf-incrimination, the testimony 
of such person may be compelled in accordance with the 
provisions of the Rules of Court. 
(viii) Witness fees and allowances - Any person appearing for oral 
testimony under a civil investigative demand issued under subsection (1) 
shall be entitled to the same fees and allowances which are paid to 
witnesses as provided in the appropriate provisions of the Rules of Court. 
(ix)Custodians of Documents, Answers, and Transcripts - (a) 
Designation - The Solicitor General shall designate a false claims law 
investigator to serve as custodian of documentary material, answers to 
interrogatories, and transcripts of oral testimony received under this 
section, and shall designate such additional false claims law investigators 


as the Solicitor General determines from time to time to he necessary to 
serve as deputies to the custodian. 
(b) Responsibility for materials; disclosure - (1) A false 
claims investigator who receives any documentary material, 
answers to interrogatories, or transcripts of oral testimony received 
under this section shall transmit them to the custodian. The 
custodian shall take physical possession of such material, answers, 
or transcripts and shall he responsible for the use made of them and 
for the return of documentary material under paragraph (D). (2) 
The custodian may cause the preparation of such copies of s uch 
documentary material, answers to interrogatories, or transcripts of 
oral testimony as may be required for official use by any false 
claims law investigator, or other officer or employee of the 
Department of Justice, who is authorized for such use under 
regulations which the Solicitor General shall issue. Such material, 
answers, and transcripts may be used by any such authorized false 
claims law investigator or other officer or employee in connection 
with the taking of oral testimony under this section. (3) Except as 
otherwise provided in this subsection, no documentary material, 
answers to interrogatories, or transcripts of oral testimony, or 
copies thereof, while in the possession of the custodian and under 
such reasonable terms and conditions as the Solicitor General shall 
prescribe - 
(A) 
documentary material 
and 
answers to 
interrogatories shall be available for examination by the 
person who produced such material or answers, or by a 
representative of that person authorized by that person to 
examine such materials and answers; and 


(B) transcripts o f o ral testimony s hall b e available 
for examination by the person who produced such 
testimony, or by a representative of that person authorized 
by that person to examine such transcripts. 
(c) Use of materials, answers, or transcripts in other 
proceedings - Whether any attorney of the Department of Justice 
has b een designated to appear before any court or agency in any 
case or proceeding, the custodian of any documentary material, 
answers to interrogatories, or transcripts of oral testimony received 
under this section may deliver to such attorney such material, 
answers, or transcripts for official use in connection with any such 
case or proceeding as such attorney determines to be required. 
Upon the completion of any such case or proceeding, such attorney 
shall return to the custodian any such material, answers, or 
transcripts so delivered which have not passed into the control of 
such court, or agency through introduction into the record of such 
case or proceeding. 
(d) Conditions for return of material - If any documentary 
material has been produced by any person in the course of any 
false claims law investigation pursuant to a civil investigative 
demand under this section, and - 
(1) any case or proceeding before the court arising 
out of such investigation, or any proceeding before any 
agency involving such material, has been completed, or 
(2) any c ase or proceeding in which such material 
may be used has been commenced within a reasonable time 
after completion of the examination and analysis of all 
documentary material and other information a ssembled in 
the course of such investigation, the custodian shall, upon 


written request of the person who produced such mateiial, 
return to such person any such material (other than copies 
furnished to the false claims law investigator under 
subsection (F)(ii) or made for the Department of Justice 
under paragraph (2)(B) which has not passed into the 
control of any court or agency through the introduction into 
the record of such case or proceeding. 
(e) Appointment of successor custodians - In the event of 
the death, disability, or separation from service in the Department 
of Justice of the custodian of any documentary material, answers to 
interrogatories, or transcripts of oral testimony produced pursuant 
to such custodian from responsibility for the custody and control of 
such materials, answers, or transcripts, the Solicitor General shall 
promptly - 
(1) designate another false claims law investigator 
to serve as custodian of such material, answers, or 
transcripts; and 
(2) transmit in writing to the person who produced 
such material, answers, or testimony notice of the identity 
and address of the successor so designated. Any person 
who is designated to be a successor under thisparagraph 
shall have, with regard to such material, answers, or 
transcripts, the same duties and responsibilities as were 
imposed by this section upon that person’s predecessor in 
office, except that the successor shall not be held 
responsible for any default or dereliction which occurred 
before that designation. 
(J) Judicial Proceedings - 


(i) Petition for enforcement - Whenever any person fails to comply 
with any civil investigative demand issued under subsection (I), or 
whenever satisfactory copying or reproduction of any material requested 
in such demand cannot be done and such person refuses to surrender such 
material, the Solicitor General may file, in the court in which such person 
resides, is found, or transacts business, and serve upon such person a 
petition for an order of such court for the enforcement of the civil 
investigative demand. 
(ii) Petition to modify or set aside demand - (a) Any person who 
has received a civil investigative demand issued under subsection (1) may 
file, in the court within which such person resides, is found, or transacts 
business, and serve upon the false claims law investigator identified in 
such d emand a p etition for an o rder o f t he c ourt to modify o r set aside 
such demand. In the case of a petition addressed to an express demand for 
any product of discovery, a petition to modify or set aside such demand 
may be brought only in the court in which the proceeding in which such 
discovery was obtained is or was last pending. Any petition under this 
subparagraph must be filed - 
(1) within twenty (20) days after the date of service 
of the civil investigative demand, or at any time before the 
return date specified in the demand, whichever date is 
earlier; or 
(2) within such longer period as may be prescribed 
in writing by any false claims law investigator identified in 
the demand. 
(b) The petition shall specify each ground upon which the 
petitioner relies in seeking relief under subparagraph (a), and may 
be based upon any failure of tile demand to comply with the 
provisions of this section or upon any constitutional or other legal 


right or privilege of such person. During the pendency of the 
petition in the court, the c ourt m ay stay, as i t deems p roper, the 
running o f t he time allowed for compliance with the demand, in 
whole or in part, except that the person filing the petition shall 
comply with any portions of the demand not sought to be modified 
or set aside. 
(iii) Petition to modify or set aside demand for product of 
discovery - (a) In the case of any civil investigative demand issued under 
subsection (1) which is an express demand for any product of discovery, 
the person from whom such discovery was obtained may file, in the court 
in which the proceeding in which said discovery was obtained is or was 
last pending, and serve upon any false claims law investigator identified in 
the demand and upon the recipient of the demand, a petition for an order 
of such court to modify or set aside those portions of the demand requiring 
production of any such product or discovery. Any petition under this 
subparagraph must be filed - 
(1) within twenty (20) days after the date of service 
of the civil investigative demand, or at any time before the 
return date specified in the demand, whichever date is 
earlier; or 
(2) within such longer period as may be prescribed 
in writing by any false claims law investigator identified in 
the demand. 
@) The petition shall specify each ground upon which the 
petitioner relies in seeking relief under subparagraph (a), and may 
be based upon any failure of the portions of the demand fiom 
which relief is sought to comply with the provisions of this section, 
or upon any constitutional or other legal right or privilege of the 
petitioner. During the pendency of the petition, the court may stay, 


as it deems proper, compliance with the demand and the running of 
the time allowed for compliance with the demand. 
(iv) Petition to require performance by custodian of duties - At any 
time during which any custodian is in custody or control of any 
documentary material or answers to interrogatories produced, or 
transcripts of oral testimony given, by any person in compliance with any 
civil investigative demand issued under subsection (l), such person, and in 
the case of an express demand for any product of discovery, the person 
from whom such discovery was obtained, may file, in the court within 
which the office of such custodian is situated, and serve upon such 
custodian, a petition for an order of such court to require the performance 
by the custodian of any duty imposed upon the custodian by this section. 
(v) Jurisdiction - Whenever any petition is filed in any court under 
this subsection, such court shall have jurisdiction to hear and determine 
the matter so presented, and to enter such order or orders as may be 
required to carry out the provisions of this section. Any final order so 
entered shall be subject to appeal under the appropriate provisions of the 
Rules of Procedure. Any disobedience of any final order entered under this 
section by any court shall be punished as contempt of the court. 
(vi) Applicability of rules of civil procedure - The Rules of Civil 
Procedure shall apply to any petition under this subsection, to the extent 
that such rules are not inconsistent with the provisions of this section. 
(IC) Definitions - For purposes of this section - 
(i) the term "false claims 1aw"means - 
(a) this section and sections 3 and 4; and 
(b) any Act of Congress enacted after the date of the 
enactment of this section which prohibits, or makes available to the 
court any civil remedy with respect to, any false claim against, 


bribery of, or corruption of any officer or employee of the 
government; 
(ii) the term “false claims law investigation” means any inquiry 
conducted by any false claims investigator for the purpose of ascertaining 
whether any person is or has been engaged in any violation of a false 
claims law; 
(iii) the term “false claims investigator” means any attorney or 
investigator employed by the Department of Justice who is charged with 
the duty of enforcing or carrying into effect any false claims law, or any 
officer or employee of the government acting under the direction and 
supervision of such attorney or investigator in connection with a false 
claims law investigation; 
(iv) the term “person” means any natural person, partnership, 
corporation, association, or other legal entity, including any political 
subdivision of a State; 
(v) the term “ documentary m aterial” includes the original or any 
copy of any book, record, report, memorandum, paper, communication, 
tabulation, chart, or other document, or data compilations stored in or 
accessible through computer or other information retrieval systems, 
together with instructions and all other materials necessary to use or 
interpret such date compilations, and any product of discovery; 
(vi) the term “custodian” means the custodian, or any deputy 
custodian, designated by the Solicitor General under subsection (I)(i); and 
(vii) the term “product of discovery” includes - 
(a) the original or duplicate of any deposition, 
interrogatory, document, thing, result of the inspection of land or 
other property, examination, or admission, which is obtained by 
any method of discovery in any judicial or administrative 
proceeding of an adversarial nature; 


(b) any digest, analysis, selection, compilation, or 
derivation of any item listed in subparagraph (i); and 
(c) any index or other manner of access to any item listed 
in subparagraph (i). 
SECTION 8. Separability Clause. - If any provision, or part hereof, is held invalid or 
unconstitutional, the remainder of the law or the provision not otherwise affected shall remain 
valid and subsisting. 
SECTION 9. Repealing Clause. - Any law, presidential decree or issuance, executive 
order, letter of instruction, administrative order, rule or regulation contrary to or inconsistent 
with, the provisions of this Act is hereby repealed, modified, or amended accordingly. 
SECTION 10. Effectivity Clause. - This Act shall tale effect fifteen (15) days after its 
publication in at least two (2) newspapers of general circulation. 
Approved, 
FN: 
2152