Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City, Manila

FIFTEENTH CONGRESS
First Regular Session

House Bill No__ 2471

Introduced by REP. MA. RACHEL J. ARENAS.

EXPLANATORY NOTE

Corruption remains to be the major hindrance in the development and
progress of our nation. More importantly, the integrity and trustworthiness of
our government will continue to be questioned until this perennial problem is
finally resolved.

‘The difficulty in combating corruption lies in its very nature of being
committed behind closed doors and well beyond the purview of the public eye.
This is where the importance of obtaining credible witnesses, with reliable
information regarding the corrupt practices of government officials or
employees comes into place.

‘This proposed legislation seeks to encourage whistleblowers to come
into the open and put an end to the corrupt acts of these government officials
and employees. At the same time, it aims to strengthen the present machinery
in ensuring the full protection and security of these brave witnesses against any
form of retaliation or ostracism. A rewards and benefits system will also be
established in order to ensure the livelihood and welfare of these
whistleblowers.

In order, however, to protect the public, a rigid procedure will also be
enforced in order to prevent any abuse of the provisions of this Act as well as
to prevent false testimonies that will only wreck more havoc into our society.

In view of the above premises, the immediate approval of this bill is

urgently sought. {, L| (_ =

MA. RACHEL J. ARENAS


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Republic of the Philippines
HOUSE OF REPRESENTATIVE
Quezon City, Manila
FIFTEENTH CONGRESS
First Regular Session

House Bill No_ 2474

Introduced by REPRESENTATIVE MA. RACHEL J. ARENAS.

AN ACT PROVIDING FOR PROTECTION, SECURITY AND
BENEFITS OF WHISTLEBLOWERS AND OTHER PURPOSES

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

SECTION 1. Title of the Act. — This Act shall be known as the
“Whistleblower Act of 2010”.

Sec. 2. Declaration of Policy. — Public office is a public trust, It is the
policy of the State to promote and ensure full accountability in the conduct of
its officers and employees, and exact full retribution from those who shall
engage in grant and corrupt practices. Towards this end, the State shall;

A. Maintain honest and high standards of integrity in the public service;

B. Safeguard the national interest through the prosecution of corrupt
and erring public officials and employces; and

c. Encourage and facilitate the disclosure of corrupt conduct and
practices in the public service by providing benefits and protection to
whistleblowers.

Nothing in this Act shall diminish or restrict the entitlement, receipt or
enjoyment by a whistleblower or an informant of more or higher benefits
provided under existing laws.

Sec. 3. Definition of Terms. — As used in this Act, the following terms
shall mean:

1. “Acts constituting graft and corruption” shall mean any conduct, act
or omission of public officers and employees solely, or in
cooperation or conspiracy with private persons, which are covered
by, or constitute as violations of the laws enumerated in Section 4 of

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this Act;

“Employee” shall mean any person who is made to suffer work by,
or who renders service for, an employer. The term shall include
public officers and employees as defined in this Act as well as any
person considered an employee under the Labor Code;

“Employer” shall mean any individual, partnership, association,
corporation or entity, including the government, or any person or
group of persons who shall directly or indirectly, for or on behalf of
said individual, partnership, association, corporation or entity,
employs an employee as defined in this Act;

“Government” includes the National Government, and any of its
subdivisions, agencies or instrumentalities, including government
owned and controlled corporations and their subsidiaries, and the
local government units;

“Whistleblower” shall refer to an informant or any person who has
privileged or personal knowledge or access to data, events or
information and who shall deliberately disclose any individual,
collective, or organized conduct of any public officer/s and
employees constituting graft and corruption as defined under this
Act;

“Public officer” shall refer to any person holding any public office in
the Government of the Republic of the Philippines by virtue of an
appointment, election or contract;

“Retaliatory actior all refer to any negative or obstructive
response, reaction or reprisal to the disclosure made under this Act
aimed at, pertaining to, or against a whistleblower or an informant or
any of the members of his/her family and relatives up to the fourth
civil degree of consanguinity or affinity. Said action shall include
criminal, civil or administrative proceedings commenced or pursued
against said whistleblower or any member of his family or relative
up to the second degree of consanguinity or affinity, as well as any
retaliatory action in the workplace;

“Retaliatory action in the workplace” shall refer to any
discriminatory conduct or policy which affects the promotion or job
assignment, including undue negative performance appraisal, close
monitoring by supervisors, unwarranted criticism or avoidance by
co-employees, blacklisting from other job opportunities, or
prejudicial transfer by reason of the disclosure made under this Act;

“Qualified Whistleblower” shall mean an informant or any person

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qualified and admitted into the Whistleblowers’ Protection Program
of the Office of the Ombudsman in accordance with this Act and its
rules and regulations.

Sec. 4. Coverage. — Conduct constituting graft and corruption, whether
or not commenced or consummated before the effectivity of this Act, shall
mean any conduct, act or omission of public officers and employees solely, or
in cooperation or conspiracy with private person/s, which are covered by, or
amount to violations of:

A. Presidential Decree No. 46;
B, Republic Act No. 3019;
c. Republic Act No. 6713;
D. Republic Act No, 7080; and

FE, Titles Il and VII of Book 2 of the Revised Penal Code.

Sec. 5. Admission to the Program. - Whistleblowers or informants,
whether from the public or private sector, shall be entitled to the benefits under
this Act, provided that all the following requisites concur:

A. The disclosure is voluntary, in writing and under oath;

B. The disclosure relates to conduct constituting graft and corruption
under this Act;

c. The disclosure is not yet subject of a complaint filed with the Office
of the Ombudsman or investigated by any other investigating
agency, unless in the opinion of the Ombudsman, such a disclosure is
necessary for an effective and successful investigation or
prosecution, or essential for the acquisition of material evidence not
in its possession;

ion:

b. The information given by the whistleblower can be corroborated; and

&, The information disclosed leads to the successful gathering of
evidence and/or conduct of investigation sufficient to sustain a
finding of probable cause for the filing of a criminal complaint or
information before a court of competent jurisdiction.

Sec. 6. Necessary of Testimony. - The testimony of the whistleblower in
court shall not be necessary for the entitlement or enjoyment of the benefits of
this Act. In the event that the Whistleblower’s testimony is required as found
by the Office of the Ombudsman, to be necessary and indispensable for the
successful prosecution of a case, he shall be entitled to the additional benefits
and protection under Republic Act No. 6981 otherwise known as the Witness

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Protection, Security and Benefit Act.

Sec. 7. Memorandum of Agreement with the Person to be Protected. -
Before the person is provided protection as a whistleblower or informant of the
State, he shall first execute a Memorandum of Agreement which shall set forth
his/her responsibilities including the following;

a. To provide information to and testify before all appropriate law
enforcement officials concerning any proceeding in connection with
or arising from the activities involved in the offense subject matter
thereof;

». To avoid the commission of a crime;

c, To take all necessary precautions to avoid detection by others of the
facts concerning the protection provided him under this Act;

4. To cooperate with respect to all reasonable requests of officers and
employees of the government who are providing him/her protection
under this Act; and

«. To regularly inform the appropriate program official of his current
activities and address.

Sec. 8. Breach of Memorandum of Agreement. - Substantial breach of
the Memorandum of Agreement shall be ground for the termination of the
protection provided under this Act; Provided, however, that before terminating
the same, the Ombudsman shall send notice to the whistleblower concerned,
stating therein the reason for such termination. Reasonable time shall be
afforded the informant to take appropriate and necessary measures for his/her
protection and security in view thereof.

Sec. 9. Protection Against Other Action: A whistleblower or any
person who has made a disclosure under this Act, shall not be subject to any
liability, whether administrative, civil, criminal or other proceedings for
making such disclosure or acts in relation thereto. No action, claim or demand
may be taken against a whistleblower for making such disclosure nor shall any
evidence presented be used against him in court and other admi alive or
quasi-judicial ageney/body.

This protection shall also operate as immunity in favor of a
whistleblower or informant against any action or proceeding taken against
him/her by any person subject to disclosure, by reason thereof and acts in
relation to the subject of disclosure.

See. 10. Defense of Privileged Communication. - A whistleblower or
any person who has made a disclosure under this Act shall have, as defense in
any other inquiry or proceeding, the absolute privilege with respect to the

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subject matter of his/her disclosure or information given to the proper
authorities.

See. 11. Confidentiality. - Except insofar as allowed by this Act, during
and after the disclosure and throughout and after any proceeding taken
thereafter, the whistleblower or an informant shall be entitled to absolute
confidentiality as to:

1. His identity;
2. The subject matter of his disclosure; and
3. The person to whom such disclosure was made.

There shall be no such confidentiality in his/her identity if a
whistleblower or an informant makes a public disclosure of a conduct
constituting graft and corruption as defined in this Act unless, notwithstanding
such public disclosure, he/she has taken means and measures obviously
intended to preserve his/her anonymity.

See. 12. No Breach of Duty of Confidentiality. - An informant who has
made a disclosure under this Act on whom provision of law, regulation,
issuance, practice or other convention, imposes upon him/her a duty to
maintain confidentiality with respect to any information disclosed, is
considered not to have committed a breach thereof.

Sec. 13. Confidential Information. - No person to whom a disclosure has
been made or referred shall disclose any information that may identify or tend
to identify a whistleblower or informant or reveal the subject matter of such
disclosure, except only as to the following circumstances:

a. ‘The whistleblower consents in writing prior to the disclosure of an
information;

». The disclosure is indispensable and essential as determined by the
Office of the Ombudsman, having regard to the necessary
proceedings to be taken after the disclosure; or

c. The disclosure or referral is made pursuant to an obligation under
this Act.

‘The prohibition on disclosure under this Section shall apply to any
person who has become privy to any confidential information, whether
officially or by other means.

Sec. 14. Protection against Disciplinary Actions or Reprisals. - A
whistleblower or a person who has made or is believed or suspected to have
made a disclosure under this Act is not liable to disciplinary action for making

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said disclosure.

Prohibited under this section include retaliatory action in the
workplace or prejudicial conduct towards the whistleblower, such as
discriminatory action behind polices and procedures, reprimand or punitive
transfer, unwarranted referral to a psychiatrist or counselor, and undue poor
performance reviews. Other prejudicial conducts include obstruction of an
investigation, withdrawal of essential’ resources, undue reports and the
attachment of unfair personnel file notes.

To this end, any employer who shall discourage and impose sanctions or
reprisals based on workplace interaction, which shall include workplace
ostracism, questions and attacks on motives, accusations of disloyalty and
dysfunction, public humiliation, and the denial of work or promotion, or who
encourages, causes or does retaliatory action or reprisal against an informant or
anyone believed or suspected to be one shall be liable for an offense defined
under this Act.

Any employee who refuses to follow orders of employers that would
cause them to violate any provision of this Act shall likewise be protected from
reprisals and retaliatory action in the workplace.

For purposes of this protection, an applicant for employment shall be
deemed an employee and entitled to such protection.

Provided however, that an employer of a whistleblower shall be notified
through a certification issued by the Office of the Ombudsman, within a period
of thirty (30) days from the date when the informant last reported for work.
Provided further that an employer shall have the option to remove such
whistleblower from employment after securing a clearance from the Office of
the Ombudsman or the Department of Labor and Employment in case of a
prolonged absence due to transfer or permanent relocation under this Act or
R.A, No, 6891.

Sec. 15. Security and Protection of a Whistleblower. - When determined
to be necessary and appropriate by the Office of the Ombudsman, a
whistleblower, even if the disclosure is made in confidence, shall be entitled to
personal security. Should, at anytime, the identity of the informant be revealed,
or his anonymity compromised, the whistleblower shall, in addition to the other
benefits under this Act, and when warranted, be entitled to the benefits of R. A
No. 6981,

ec. 16. Confidential

application and/or enjoyment of the benefits under this Act, under the Office of

of the Proceedings. - All proceedings involving

the Ombudsman, including any action taken thereon, shall be confidential in
nature. No information or documents given or submitted in support thereof
shall be released except upon written order of the Office of the Ombudsman,

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and provided such disclosure shall not endanger the life of a qualified
whistleblower.

Sec. 17. Financial Rewards for Informants. - Vhe whistleblower shall be
entitled to a corresponding monetary reward in accordance with the provisions
of this Act and its implementing rules and regulations.

The whistleblower or informant shall receive an amount in accordance
with the following schedule:

Salary Grade of the Most Senior Financial Reward of Qualified
_Respondent Whistleblower
33 5,000,000
32 4,000,000.
3I 3,000,000
30. 2,500,000
29 2,000,000
28 ml 7,500,000
27 1,000,000
26 900,000
24-25 800,000
22-23 700,000
20-21 600,000
18-19 500,000
16-17 400,000
14-15 300,000
12-13 200,000
10-11 100,000.
59 75,000
4 50,000

Upon being qualified as a whistleblower and admitted to the program by
the Office of the Ombudsman, fifty percent (50%) of the reward shall be given
to the qualified whistleblower. The remaining fifty percent (50%) shall be
given prior to the filing of a case in a proper court.

For cases not susceptible to pecuniary estimation, such as plunder,
forfeiture of ill gotten wealth, bribery, malversation and damage or injury to
government, the whistleblower shall be entitled to an additional reward of ten
percent (10%) of the amount recovered by final judgment.

During the pendency of the case, however, a whistleblower shall be
advanced the amount equivalent to not less than twenty five percent (25%) of
the additional reward of the total award duc consistent with the nature of the
case and the amount involved and deemed recoverable, This shall be given in
accordance with the rules and regulations implementing this Act.

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Sec. 18. Abstract. - All government agencies, offices, bureaus and local
government units, including government-owned and -controlled corporations.
whether or not with original charters, shall conspicuously display an abstract of
this Act and the rights and protections of whistleblowers, including the
obligations of employers under this Act. Such abstract shall be provided in the
rules and regulations.

All government agencies, offices, bureaus and local government units,
including government-owned and -controlled corporations, whether or not with
original charters, are likewise required to put in place internal procedures for
dealing with whistleblowers, consistent with the provisions of this Act and its
rules and regulations. Said internal procedure shall be widely disseminated to
all employees.

Sec. 19. Credibility of Informant. - In all cases, the fact of the
entitlement of the qualified whistleblower or informant to the protection and
benefits provided in this Act shall not be admissible in evidence to diminish or
affect his credibility.

Sec. 20. Penalty For Retaliatory Acts Against A Whistleblower, - A fine
of not more than One Hundred Thousand Pesos (Php100,000.00) or
imprisonment of not less than six (6) months but not more than six (6) years or
both at the discretion of the court, and in case of a public officer or employee,
the penalty of perpetual disqualification from holding public office, shall be
imposed on any person who commits any of the retaliatory acts as defined in
this Act against a qualified whistleblower or informant and/or hinders, delays,
prevents or dissuades said whistleblower or informant, from doing the acts
enumerated hereunder:

(a) Attending, assisting or testifying before any investigating agency
or quasi-judicial body or judicial;

(b) Reporting to a law enforcement officer or judge the commission
or possible commission of an offense, or a violation of conditions
of probation, parole, or release pending judicial proceedings;

(c) Seeking the arrest of another person in connection with the
offens

(d) Causing a criminal prosecution, or a proceeding for the
revocation of a parole or probation: and

(©) Performing and enjoying the rights and benefits under this Act or
attempt to do so.

See. 21. Violation of Confidentiality. - Any person who violates the
protection of confidentiality of a protected disclosure under Sections 10, 11, 12,

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and 15 of this Act, shall suffer the penalty of not more than six (6) years but not
less than six (6) months with an accessory penalty of temporary absolute
disqualification for public office in case of a public officer or employee, and
shall be civilly liable to indemnify the informant in such amount of damages as
may be awarded and deemed reasonable by a competent court.

Sec, 22. Retaliatory Action in the Workplace. - Any person who violates
the protection of confidentiality of a protected disclosure under Section 10, 11,
12. and 15 of this Act, shall suffer the penalty of not more than six (6) months
with an accessory penalty of temporary absolute disqualification for public
office in case of a public officer or employce, and shall be civilly liable to
indemnify a whistleblower in such amount of damages as may be awarded by a
competent court.

‘Toward this end, the aggrieved whistleblower shall be entitled to the
provisional remedy of injunction against any retaliatory action in the
workplace, prejudicial conduct or discriminatory treatment by reason of the
whistleblower’s disclosure.

The proceedings herein shall be independent of any action that an
aggrieved person may take before the Civil Service Commission or the
National Labor Relations Commission, for unfair or discriminatory practices
for claims for back wages, and other labor disputes, or before other qu
judicial agencies for any action that may or may not have arisen from a
disclosure or believed or suspected disclosure.

Sec. 23. Discriminatory Hiring. - Any person, firm, corporation, offi
or employer who shall deny a qualified applicant for employment, or who shall
reject his application for employment due to knowledge, belief or suspicion
that the applicant is a whistleblower or informant for the State, shall be guilty
of an offense and shall suffer the penalty of not more than six (6) months
imprisonment with the accessory penalty of suspension of the right to hold
public office in case of a public officer or employee, and shall be civilly liable
to indemnify the informant of damages as may be awarded by a competent
court.

Sec. 24. Failure of an Employer to Post Abstract. - The failure to post
an Abstract required under Section 18 of this Act shall constitute an offense
and shall be penalized with a fine in the amount of One Hundred Thousand
Pesos (Php100,000.00) for the first offense. The amount shall be doubled for
every succeeding offense, and shall suffer an imprisonment of not more than
six (6) months at the discretion of the court with the accessory penalty of
suspension of the right to hold public office in case of a public officer or
employee. For this purpose, the president, manager, or head of office, bureau or
agency shall be held responsible for such violation.

Sec. 25. Failure to Act or Report to the Office of the Ombudsman. - Any
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person under obligation to report a disclosure under this Act to the Office of the
Ombudsman, who fails to do so within the period of two (2) months, or who
fails to act thereon or cause an investigation thereof, shall be guilly of an
offense and shall suffer the penalty of not more than one (1) month
imprisonment, and/or a fine amounting to not more than Fifty Thousand Pesos
(Php 50,000.00).

Sec. 26. False and Misleading Disclosures. - Any person who
deliberately and voluntarily gives false or misleading information in connection
with conduct constituting graft and corruption under this Act shall, in addition
to penalties under other laws, be guilty of an offense and shall suffer the
penalty of imprisonment of not more than twelve (12) years and shall also
suffer the penalty of perpetual absolute disqualification from holding public
office in case of public officer or employee, in addition to other criminal and
civil liability he may incur under existing laws.

Sec. 27. Powers and Functions of the Ombudsman. - In addition to its
powers and functions under existing laws, the Office of the Ombudsman shall
have the following powers and functions:

(a) Supervise, monitor and coordinate all efforts relative to the
implementation and enforcement of the provisions of this Act;

(b) Investigate all disclosures made under this Act and prosecute the
same when warranted;

(c) Evaluate the qualification of whistleblowers or informants for
coverage within this Act, and make the appropriate decision on
their entitlement to the benefits extended herein;

(d) Undertake, in coordination and cooperation with the private and
public sectors, an information campaign to educate the public on
the provisions and benefits of this Act;

(©) Develop plans and implement programs to further encourage
whistleblowers or informants on graft and corrupt activities with
a view to effective deterrence and/or prosecution;

() Control and administer, consistent with the provisions and
purpose of this Act, the protection and benefits of whistleblowers
in connection with the cases within the coverage of Section 4 of
this Act;

(9) Call upon, or deputize any department, bureau, office or any
other government agency or public official to assist in the
effective implementation and enforcement of this Act; and

(h) Grant immunity in accordance with the provisions of this Act and
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its implementing rules and regulations.

Sec. 28. Implementing Rules and Regulations. - The Office of the
Ombudsman, in coordination with concerned agencies, shall promulgate such
Rules and Regulations as maybe necessary to implement the intent and
purposes of this Act. Said Rules and Regulations shall be published in two (2)
newspapers of general circulation,

See. 29. Appropriations. - The amount of One Hundred Million Pesos
(Php100,000,000.00) is hereby authorized to be appropriated out of any funds
in the National Treasury not otherwise appropriated to carry into effect the
purposes of this Act.

Other funding schemes or sources, subject to the limitation, shall be
allowed in furtherance hereof.

Sec, 30. Repealing Clause. - All laws, decrees, executive issuances,
rules and regulations inconsistent with this Act are hereby repealed or modified
rdingly.

See. 31. Separability Clause. - The declaration of unconstitutionality or
invalidity of any provision of this Act shall not affect the other provisions
hereof.

Sec. 32. Effectivity Date. - This Act shall take effect afte
days following. its publication in two (2) newspapers of general

fifteen (15)
ulation.

Approved,