FOURTEENTH CONGRESS OF THE 
1 
First Regular Session 
1 
REPUBLIC OF THE PHIZ;IPPINES 
) 
r< 
SENATE 
Introduced by Senator Antonio “Sonny” F. Trillanes IV 
EXPLANATORY NOTE 
Proclamation No. 50, issued on 08 December 1986, launched a program for the disposition of 
non-performing assets of government financial institutions and government corporations that 
have been found unnecessary and inappropriate for the public sector to maintain. It created the 
Committee on Privatization (COP) and the Asset Privatization Trust (APT). These were 
replaced, however, by the Privatization Council (PC) and the Privatization and Management 
Office (PMO) by virtue of Executive Order No. 323 issued on 06 December 2000. 
Considering that there are still a number of government assets to be subsequently divested to the 
private sector, a specialized corporate body should therefore be organized. 
This bill seeks to create the Government Asset Management Authority (GAMA), which shall 
pursue a coordinated and efficient program for the disposition and liquidation of non-relevant 
and non-performing government assets, including surrendered assets of the Presidential 
Commission on Good Government (PCGG). Consequently, it proposes to abolish the PC, PMO 
and the Board of Liquidators, and their respective properties, assets and liabilities, fund, and 
personnel immediately transferred to the GAMA. 
The GAMA shall remit to the National Treasury any and all proceeds from the sale and 
disposition of government assets, in which 60% shall go to the special account of the Agrarian 
Reform Fund and 40% to the General Fund. 
It is therefore requested that this bill be immediately enacted into law 
ANT ON^ “SONNY” F. TRILLANES IV 
Senator 
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FOURTEENTH CONGRESS OF THE 
1 
First Regular Session 
) 
REPUBLIC OF THE PHILIPPINES 
) 
SENATE 
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Introduced by Senator Antonio “Sonny” F. Trillanes IV 
AN ACT 
CREATING THE GOVERNMENT ASSET MANAGEMENT AUTHORITY, DEFINING 
ITS POWERS AND FUNCTIONS, APPROPRIATJNG FUNDS THEREFOR, AND FOR 
OTHER PURPOSES 
Be it enacted by the Senate and the House of Representative of the Philippines in Congress 
assem bled: 
SECTION 1. Short Title. - This Act shall be known as the “Government Asset 
Management Act of 2VV8.” 
SEC. 2. Declurutlon of Policy. - It is hereby declared policy of the State to promote an 
orderly, coordinated, and efficient program for the prompt disposition and liquidation of non- 
relevant and non-performing assets of government agencies and government owned or controlled 
corporations, including surrendered assets and idle properties which have been found 
unnecessary or inappropriate for the government sector to maintain. 
SEC. 3. Definition of Terms. -As used in this Act, the following terms shall mean: 
(a) “Disposition” which shall also be known as “Privatization,” refers to the transfer of 
government corporations, activities, or assets of government or its agencies to private 
ownership. It could also include sale of shares of stock, sale of physical assets, 
leasing, concession, joint venture schemes, management or maintenance contracts, or 
securitization. 
(b) “Assets” refer to: (I) receivables and other obligations due to the Government or its 
agencies under credit, lease, indemnity, and other agreements together with all 
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collateral security and other rights (including but not limited to rights in relations to 
shares of stock in corporation such as voting rights as well as rights to appoint 
directors of a corporation or otherwise engage in the management thereof granted to 
the Government or its agencies by contract or operation of law to secure or enforce 
the right of the payment of such obligation; (2) real and personal property of any kind 
owned or held by the Government, including shares of stock in corporation, obtained 
by the Government or its agencies, whether directly or indirectly, through foreclosure 
or other means, in settlement of such obligations and surrendered assets within the 
purview of Executive Order Nos. 1 and 2, series of 1986; (3) shares of stocks and 
other investments held by the Government or its agencies; (4) government 
corporations whether as parent or subsidiary corporations; and (5) such other items as 
may be identified by law. 
(c) “Surrendered Assets ” refer to any asset, property, business enterprise, or material 
possession of persons ceded to the National Government by virtue of compromise 
agreements entered into by the Presidential Commission on Good Government 
(PCGG) pursuant to Executive Order Nos. 1 and 2, series of 1986. It shall also 
include such similar assets that may be surrendered to the National Government in the 
future. 
(d) “Zdle Properties” refer to all real properties such as land, buildings, and other 
improvements located in the Philippines and abroad owned by the National 
Government through its departments, bureaus, offices, or agencies which have not 
been substantially developed, improved, or cultivated for a period of more than five 
(5) years as of the effectivity of this Act or thereafter. 
(e) “Board” refers to the Governing Board of the Government Asset Management 
Authority constituted under this Act. 
(0 “Government-owned or Controlled Corporation (GOCC) ” refers to a corporation 
which is created by special law or incorporated and organized under the Corporation 


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Code and in which the government, directly or indirectly, has ownership of the 
majority control and which is explicitly intended under that law and government 
policy for ultimate transfer to private ownership under certain specified conditions 
shall be considered a GOCC, until it is transferred to private ownership and control: 
Provided, however, That an acquired asset corporation which is either (1) under 
private ownership, the voting or outstanding shares of which (i) were conveyed to the 
government or to a government agency, instrumentality or corporation in satisfaction 
of debts whether by foreclosure or otherwise, or (ii) were duly acquired by 
government through final judgment in a sequestration proceeding; or (2) a subsidiary 
of a government corporation organized exclusively to own and manage, or lease, or 
operate specific physical assets acquired by a government financial institution in 
satisfaction of debts incurred therewith, and which in any case by law or by 
enunciated policy is required to be disposed of to private ownership within a specified 
period of time shall not be considered as GOCC or government corporation. 
SEC. 4.Creation of the Government Asset Management Authority. -For the purpose of 
carrying out the above-stated policy, there is hereby created a body corporate to be known as the 
“Government Asset Management Authority,” hereinafter referred to as the “AutWority,” which 
shall have its principal office in Metropolitan Manila. The Authority may establish such branches 
and offices as it may deem necessary for the attainment of the objectives of this Act. 
The Authority shall be attached to the Department of Finance. 
SEC. 5. Powers and Functions. - The Authority, in addition to the regular powers and 
functions provided under the Corporation Code of the Philippines, shall have the following 
powers and functions: 
(a) To develop and implement a comprehensive plan in identifying non-relevant and non- 
performing assets of government agencies and government owned or controlled 
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corporations, government corporations whether parent or subsidiary, surrendered 
assets, and idle properties for privatization; 
(b) to establish guidelines for the conversion, rehabilitation, and disposition of 
government assets and corporations; 
(c) to approve or disapprove, on behalf of the National Government, the sale or 
disposition of government assets; 
(d) to exercise on behalf of the National Government rights of ownership andfor 
administration with respect to such assets, including the right to vote, whether directly 
or through duly authorized nominees, shares of stocks held in the name of the 
National Government; 
(e) to enter into contracts, acquire, purchase, hold, lease, transfer, and dispose of property 
of any kind or nature necessary to carry out the purpose of this Act; 
(f) to establish, operate, manage, control, and supervise all activities connected with the 
efficient management and disposition of government assets and corporations; 
(g) to receive and hold by request, donation, or by any gratuitous title and to manage or 
administer or dispose any asset, grant, or property, real or personal, from foreign or 
domestic sources, subject to such limitations as are provided in existing laws and 
regulations; 
(h) to investigate and file cases in relation to conservation, rehabilitation, disposition, and 
liquidation of non-relevant and non-performing assets of the government; 
(i) to undertake the conservation, rehabilitation, and disposition of non-relevant or non- 
performing government assets: Provided, That the budget for each rehabilitation 
project shall be subject to prior approval of the Board; 
6) to seek and secure the assistance of any office, agency, or instrumentality of the 
government; 
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(k) to issue such regulations as may be necessary for the proper use by private parties of 
any or all of the Authority’s properties and to impose fees or tolls for the use of such 
properties; 
(1) to issue necessary guidelines to all government agencies to govern activities on the 
disposal of government corporate assets; 
(m)to consult, deputize, or request the assistance of appropriate government agencies or 
instrumentalities for the purpose of enforcing this Act and its implementing rules and 
regulations, as well as the orders and decisions of the Authority; 
(n) to adopt, prescribe, and promulgate such rules and regulations as may be necessary 
for the proper implementation of this Act; 
(0) to exercise the right of eminent domain as may be necessary for the purposes for 
which the Authority is created; ad 
(p) to do any and all acts and things and to exercise all powers which may be necessary 
or convenient to the accomplishment or furtherance of its purposes and objectives, or 
which a natural person can do and exercise and which may now be or hereafter be 
authorized by law. 
SEC. 6. Governing Board. - The affairs and business of the Authority shall be directed 
and its properties managed and preserved by a Governing Board, hereinafter referred to as the 
“Board”, which shall be composed of the Secretary of the Department of Finance as the ex- 
@io 
Chairman, and the following as members: 
(a) the SecretaIy of the Department of Justice; 
(b) the Director General of the National Economic and Development Authority; 
(c) the Secretary of the Department of Trade and Industry; 
(d) the Secretary of the Department of Budget and Management; and 
(e) two (2) representatives from the private sector to be appointed by the President of the 
Philippines for a term of three (3) years: Provided, That the person appointed shall be 
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of good moral character, of unquestionable integrity, of known probity and 
patriotism, and with experience of at least ten (10) years in business or finance: 
Provided, further, That in the event of a vacancy, the successor appointed to fill the 
same shall serve only the unexpired portion of the term of the member he succeeds 
to. 
SEC. 7. Meetings. - The Board shall meet as frequently as is necessary to discharge its 
responsibilities: Provided, That it shall meet at least once every month. The presence of a 
majority of the members of the members present at a meeting at which a quorum exists shall be 
adequate for any decision by the Board. 
Whenever any member of the Board is unable to attend a particular meeting, he may 
designate any of his immediate subordinate with the rank of undersecretary or its equivalent to 
attend in his stead. 
SEC. 8. Per Diems. - The members of the Board shall be entitled to receive per diem for 
every meeting actually attended at rates to be approved by the President of the Philippines upon 
the recommendation of the Department of Budget and Management. 
SEC. 9. Powers and Functions of the Board. - The Board shall have the following 
powers and functions: 
(a) to adopt the by-laws of the Authority and to revise the same as may be expedient; 
(b) to direct the management, operations, and administration of the Authority; 
(c) to approve the annual budget to cover the operations of the Authority based on the 
following: (1) fees and charges imposed by the Authority; (2) payment for the 
utilization of the projects of the Authority; and (3) annual appropriations and other 
funds which Congress may approve for the Authority; 
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(d) to formulate, revise, or adjust periodically all policies, plans and programs, and to 
promulgate the necessary rules and regulations to carry out the purposes and 
objectives of this Act; 
(e) to create the organizational structure and staffing pattern necessary for the efficient 
management, operation, and administration of the Authority, subject to the Civil 
Service laws, rules and regulations 
(f) to fix the compensation, emoluments and allowances of the officers and employees of 
the Authority, subject to existing laws, rules and regulations; and 
(8) to perform such other functions as may be necessary and proper for the effective 
enforcement of this Act and to accomplish the purposes for which the Authority was 
organized. 
SEC. 10. Administrator. - The Authority shall have an Administrator to be appointed by 
the President of the Philippines for a term of five (5) years unless sooner removed for cause. He 
shall be a person of good moral character, of unquestionable integrity, of known probity and 
patriotism, and with expertise and experience of at least ten (IO) years in professional 
management with a strong background in the legal profession, business, or finance. He shall 
receive such compensation, allowances, and other emoluments as may be approved by the 
President of the Philippines upon the recommendation of the Board. 
SEC. 11. Powers and Duties of the Administrator. - The Administrator shall have the 
following powers, duties, and responsibilities: 
(a) to submit to the Board, through the Chairman, policies and measures which, in his 
judgment, are necessary to cany out the purposes and provisions of this Act; 
(b) to implement and execute the policies and measure approved by the Board; 
(c) to prepare the budget of the Authority for approval by the Board; 
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(d) to appoint all employees of the Authority, except the heads of departments and 
divisions whose appointments shall be made by the Board upon his recommendation, 
and to remove, dismiss or otherwise discipline for cause such employees in 
accordance with the Civil Service laws, rules, and regulations; 
(e) to represent the Authority in all dealings with other offices, agencies, and 
instrumentalities of thee Government and with all persons and entities, public or 
private, domestic or foreign; and 
(f) to exercise such other powers as may be granted to him by the Board. 
SEC. 12. Legal Counsel. - The Office of the Government Corporate Counsel shall be 
the General Counsel of the Authority. 
SEC. 13. Utilization of Proceeds from Sale of Assets. - Any or all proceeds from the 
sale or any disposition of assets net of fees, related liabilities, and other reimbursable expenses 
related to custodianship, marketing, selling, and disposition of assets of the Authority as defined 
in the implementing rules and regulations to be issued by the Department of Finance pursuant to 
Section 24 hereof, shall be remitted immediately to the National Treasury in the following 
proportion: sixty percent (60%) to the special account to the Agrarian Reform Fund and forty 
percent (40%) to the general fund. Provided, That in the case of proceeds from sale of transferred 
assets recorded in the books of the Bureau of the Treasury, the check shall be made payable in 
the name of the Treasurer of the Philippines and shall be remitted immediately to the National 
Treasury in the same proportion as mentioned above. 
With respect to the sale or other disposition of government owned or controlled 
corporations, all government owned or controlled corporations except for the Government 
Service Insurance System and the Social Security, shall remit to the National Treasury at least 
fifty percent (50%) of the net proceeds derived from the sale or disposition of assets. For this 
purpose, net proceeds shall mean gross proceeds less related liabilities and selling expenses. 
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The preceding paragraphs, however, shall not apply to assets surrendered to or otherwise 
recovered by Presidential Commission on Good Government. Any and all proceeds from the sale 
or disposition of assets recovered by the PCGG shall be remitted to the National Treasury in a 
special account for Agrarian Reform in accordance with the Comprehensive Agrarian Reform 
Law; Provided, That recoveries relating to the coconut levy shall be deposited in a special 
account in trust for coconut farmers. 
SEC. 14. Exemption from Taxes, Fees and Other Chnrges. - The Authority, as well as 
the corporations and assets held by it, shall be exempt from all taxes, fees, charges, imposts, and 
assessments arising from or occasioned by the passing of title over such corporations or assets 
from the government institutions to the Authority and/or from the Authority to a private 
acquisitor or buyer imposed by the National Government or any subdivision thereof including 
but not limited to stock transfer taxes, capital gains tax, documentary stamps, registration fees 
and the like: Provided, That in case the said government institutions acquired the said assets by 
foreclosure, non-payment of similar taxes, fees, charges, imposts, and assessments shall not be a 
bar to the consolidation of title in the foreclosing institutions and the subsequent passing of title 
to the Authority or the corporations held by the Authority. 
SEC. 15. PubZlcation. - The sale or disposition of assets shall be published in at least 
three (3) newspapers of general circulation for three (3) consecutive days: Provided, That the last 
publication shall occur at least ten (10) days prior to the scheduled bidding or date of negotiation. 
SEC, 16. Restrnlnlng Order. - No court or administrative agency in the Philippines, 
except the Court of Appeals, shall issue any restraining order or writ of preliminary injunction 
against the Authority in connection with the acquisition, sale, or disposition of assets in 
accordance with this Act, nor shall such order or writ be issued against the purchaser of assets 
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sold or disposed of by the Authority to prevent such purchaser from taking possession of such 
assets. 
SEC. 17. Public Accountability. - To ensure public accountability, the Authority shall be 
subject to the audit of the Commission on Audit and shall comply with all accounting and 
auditing rules and regulations and those which it may hereafter promulgate of its constitutional 
mandate. 
SEC. 18. Merit System. - All officials and employees of the Authority shall be selected 
and appointed on the basis of merit and fitness. The recruitment, transfer, promotion, and 
dismissal of all its employees including temporw personnel shall be in accordance with Civil 
Service law, rules, and regulations. 
SEC. 19. Transitory Provlsions. - The Privatization Council, the Privatization and 
Management Office, and the Board of Liquidators are hereby abolished, and their powers and 
functions, including their applicable funds and appropriations, records, equipment, facilities, 
rights, other assets, and personnel shall thereafter immediately be transferred to the Authority. 
All contracts and liabilities, if any, are hereby also transferred to and assumed by the Authority 
and shall be acted upon in accordance with the Auditing and shall be acted upon in accordance 
with the Auditing Code and other pertinent laws, rules, and regulations: Provided, That the 
officers and employees of said agencies who will be needed for the continuity of the programs 
shall continue in a holdover capacity until such time as the new officers and employees of the 
Authority shall have been duly appointed pursuant to the provisions of this Act. 
The management and disposition of surrendered assets as well as assets already recovered 
by final judgment of the Presidential Commission on Good Government are hereby transferred to 
the Authority. 
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Upon approval of this Act, the Commission on Audit shall undertake an examination of 
all assets and liabilities remaining with the Privatization Council, the Privatization and 
Management Office, and the Board of Liquidators. The Commission on Audit shall complete 
such examination within one hundred eighty (1 80) days from the effectivity of this Act. 
Lawsuits initiated by the Privatization Council, the Privatization and Management Office, 
the Board of Liquidators, and the Presidential Commission on Good Government in so far as 
surrendered assets are concerned, which are still pending before appropriate courts upon the 
abolition of the said agencies, shall be pursued by the Office of the Government Corporate 
Counsel until their proper termination in the name of or on behalf of the Government. 
SEC. 20. Structure and Staffing Pattern. - Within thirty (30) days from the effectivity 
of this Act, the Board of Directors, pursuant to Section 9(e) hereof shall create the organizational 
structure and staffing patter of the Authority, subject to the approval by the Department of 
Budget and Management within ninety (90) days from submission thereof. 
SEC. 21. Separation and Retirement Beneflis. - The personnel of the herein abolished 
agencies who are not absorbed in the new staffing pattern of the Authority shall be deemed 
separated from the service and shall receive separation benefits in accordance with existing laws. 
Those who are eligible andor opt to retire shall be entitled to receive such benefits as authorized 
under existing laws, rules, and regulations. 
SEC. 22. Appropriations. - The amount necessary for the initial implementation of this 
Act shall be taken from the existing appropriations under the current year’s General 
Appropriations Act of Privatization Council, the Privatization and Management Office, and the 
approved budget of the Board of Liquidators for the current year by the Office of the President. 
Thereafter, such sums as may be necessary for the continued operation of the Authority shall be 
included in the annual General appropriations Act. 
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SEC. 23. Congressional RevieW. - Every three (3) years after the effectivity of this Act. 
Congress shall conduct a systematic evaluation of the Authority to determine whether or not its 
performance, impact or accomplishment with respect to its mandates merit its continued 
existence. Such evaluation shall be undertaken by the Committee on Government Corporations 
and Public Enterprises of the Senate and the Committee on Government Enterprises and 
Privatization of the House of Representatives which have legislative jurisdiction over the 
Authority. 
SEC. 24. Implementing Rules m d  Regulations. - Within sixty (60) days from the 
approval of this Act, the Authority, with the Department of Finance, shall promulgate the 
necessary rules and regulations for the efficient implementation of this Act: Provided, That the 
rules and regulations shall be published in two (2) newspapers of general circulation. 
SEC. 25. Separabiliw Clause. - If for any reason, any provision of this Act or the 
application thereof to any person or circumstances, is held invalid or unconstitutional, the 
remaining provisions not affected thereby shall continue to be in full force and effect. 
SEC. 26. Repealing Clause. - Executive Order No. 372 (s. 1950), Executive Order No. 
323 (s. 2000), Republic Act No. 8758, Executive Order No. 12 (s. 1998), Republic Act No. 7886, 
Republic Act No. 7661m Executive Order No. 37 (s. 1992), Executive Order No. 11 (s. 1992), 
Republic Act No. 7181, Administrative Order No. 14 (s. 1987), Proclamation No. 50, and 
Proclamation 50-A are hereby repealed. All other laws, decrees, orders, proclamations, rules and 
regulations, or parts thereof, inconsistent with or contrary to the provision of this Act or its 
purposes are hereby repealed, amended or modified accordingly. 
SEC. 27. Eflictivi@. - This Act shall take effect fifteen (15) days after its publication in 
the Oflciul Guzutte or in at least two (2) newspapers of general circulation. 
Approved,