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

45" Congress
First Regular Session

House Bill No.__4049

Introduced by Honorable Sergio A. F. Apostol and
Honorable Pedro P. Romualdo

EXPLANATORY NOTE

After the People Power Revolution, the Presidential Commission on Good
Government (PCGG) was created by Executive Order No. 1 issued by then
President Corazon Aquino on February 28, 1986 to recover vast resources of the
government allegedly amassed by former President Ferdinand Marcos, his
immediate family, relatives, close associates, both here and abroad.

Thereafter, President Aquino issued Proclamation No. 3 dated March 25
1986, establishing a revolutionary government, under which, authority to issue
sequestration and freeze orders were vested upon PCGG. However, Section 26,
Article 18 of the 1987 Constitution provides that the authority to issue such
sequestration or freeze orders under Proclamation No. 3 shall remain operative
only for not more than eighteen (18) months after the ratification of the
Constitution. This authority has lapsed without having been extended by the
Congress which the latter could have done under the same Section 26, in case of
national interest.

More so, more than twenty years and four administrations have passed,
PCGG has not produced significant accomplishments that would justify its
continued existence.Through these years, the worked performed by the
Commission is not commensurate to the annual expenses needed to maintain
the office. The time is ripe to abolish PCGG in line with the cost-saving efforts of
the government.

Under this bill, the powers and functions of investigations and prosecution
of criminal cases exercised by the PCGG shall be transferred to the Department
of Justice; Civil cases involving the management, administration and the
disposition of the assets, as well as the sequestration of the properties
considered to be ill-gotten vested in the PCGG shall be transferred to, and shall
be exercised by the Department's Office of the Government Corporate Counsel.


Furthermore, all sequestered real and personal assets and properties
previously under the control and management of the PCGG, as well as all
contracts, records and documents relating to the operation of the PCGG are
transferred to the Privatization Office of the Department of Finance.

In view of the foregoing, approval of this bill is earnestly sought.

HON. PEDRO P. ROMUALDO
Representative
Lone District, Camiguin



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

15" Congress
First Regular Session

4049

House Bill No.

Introduced by Honorable Sergio A. F. Apostol and
Honorable Pedro P. Romualdo

ANACT
ABOLISHING THE PRESIDENTIAL COMMISSION ON GOOD GOVERNMENT
(PCGG)
nak Senat ise of sentati\ f the vin

in Congress assembled:

SECTION 1. The Presidential Commission on Good Government (PCGG)
created under Executive Order No. 1, shall be abolished within six (6) months
after the approval of this Act.

SECTION 2. The powers and functions of investigations and prosecution
of criminal exercised by the PCGG shall be transferred to the Department of
Juisti Civil cases involving the management, administration and the
disposition of the assets, as well as the sequestration of the properties
considered to be ill-gotten vested in the PCGG shall be transferred to, and shall
be exercised by the Department's Office of the Government Corporate Counsel.
For this purpose, all records and documents relating to the investigation and
prosecution of cases under the jurisdiction of the PCGG shall be transferred to
the said offices.

SECTION 3. The management and the disposition of the assets and
properties vested in the PCGG shall be transferred to, and shall be exercised by
the Department of Finance through its Privatization Office which shall be headed
by and Assistant Secretary designated by the Secretary of Finance. For this
purpose, all sequestered real and personal assets and properties previously
under the control and management of the PCGG, as well as all contracts,
records and documents relating to the operation of the PCGG are transferred to
the Privatization Office.

In coordination with the Commission on Audit, a physical inventory and
complete accounting of the sequestered properties and assets shall be jointly


made by the Department of Justice and the Privatization Office within sixty (60)
days after the effectivity of this Act.

SECTION 4. Officials and employees of the PCGG may be absorbed by
Privatization Office or the Department of Justice on the basis of merit and fitness;
Provided, that officers and employees who shall be seperated from the service
as a result of the abolition of the PCGG shall receive separation or retirement
and other benefits to which they are entitled under existing laws.

Any PCGG officer and employee who is re-employed in the government
service for which he/she has been paid gratuity, shall refund the unearned
portion of such gratuity before his or her reemployment.

SECTION 5. All contracts and agreements entered into by the PCGG
prior to the effectivity of this Act shall remain in full force and effect unless
otherwise terminated, modified or amended for lawful cause.

SECTION 6. Every director/nominee, asset monitor or representative
assigned by the PCGG in any sequestered company/corporation, prior to the
effectivity of this Act, shall submit to the Justice Secretary and the Secretary of
the Department of Finance, a written and verified statement of his/her net worth,
assets and liabilities before his/her appointment / designation as such as well as
of his/her current net worth, assets and liabilities within thirty (30) days from the
effectivity of this Act.

SECTION 7. The unexpended appropriations of the PCGG under the
current General Appropriations Act shall be transferred to the Department of
Justice and and the Privatization Office. Thereafter, such amount as may be
necessary for the continued operation of the Department of Justice, Office of the
Government Corporate Counsel and the Privatization Office pursuant to this Act
shall be included in the annual appropriation of the said offices.

SECTION 8. Executive Order No. 1 and all other laws, executive orders,
rules and regulations or any part thereof inconsistent herewith are deemed
repealed, modified or amended accordingly.

SECTION 9. Separability Clause. In case any provision of this Act is
declared unconstitutional or invalid, the other provisions hereof which are not
affected thereby shall continue in full force and effect

SECTION 10. Effectivity. — This Act shall take effect fifteen (15) days after
its publication in two (2) national newspapers of general circulation.

Approved,