EIGHTEENTH CONGRESS
REPUBLIC OF THE PHILIPPINES )

First Regular Session )
HOUSE OF REPRESENTATIVES
oe Introduced by Representative Rufus B. Rodriguez
House Bill No. 2742
EXPLANATORY NOTE

There have been a number of former officials of the government who took part in the
negotiation for loans with our foreign and domestic creditors, who were later employed by
these financial institutions,

Considering the amount involved are billions of dollars and to avoid conflict of interest
in the negotiations with our foreign creditors, it is imperative that the State shall regulate the
right of our financial managers and negotiators to be employed with the domestic and
international financial institutions that extended loan to our government.

Our financial managers and debt negotiators have access to vital information, which
these financial institutions could use against the economic and financial interest of the
Philippine government. The prospect of being employed by these financial institutions after
retirement or separation from the government might also influence our incumbent officials in
their negotiation either for new loan or debt restructuring, with our foreign and domestic
creditors, by accommodating the interest of the creditors to the prejudice of the government.

This bill seeks to prohibit and penalize retired and incumbent officials of the
Philippine government from employment with our intemational and domestic creditors. It
also seeks to promote nationalist consciousness among our people and a higher sense of
ethical standard among our economic and financial managers. It will partly implement the
constitutional mandate to “develop a self-reliant and independent national economy
effectively controlled by Filipinos.” (Art. II. Sec. 19).

In view hereof, the early passage of this proposed measure is highly recommended.

Tid

RUFUS B. RODRIGHEZ

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EIGHTEENTH CONGRESS
REPUBLIC OF THE PHILIPPINES )
First Regular Session )

HOUSE OF REPRESENTATIVES,

_Introduced by Representative Rufus B. Rodriguez a

House Bill No. 2742

AN ACT
PROHIBITING RETIRED AND INCUMBENT OFFICIALS OF GOVERNMENT FROM
ACCEPTING EMPLOYMENT WITH INTERNATIONAL AND DOMESTIC CREDITORS.

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

SEC. 1. Declaration of Policy. - The 1987 Constitution mandates for a self-reliant
and independent national economy effectively controlled by Filipinos. Towards this end, the
State shall ensure that government officials who negotiated with the foreign and domestic
creditors should not be allowed to be employed, within a prescribed period, with financial
institutions over which they have negotiated in the past to avoid conflict of interest which is
tantamount to economic treason.

SEC. 2. Prohibition on the Employment of Retired Officials with International
and Domestic Creditors. — Retired officials of the government who have participated or
whose office has participated directly or indirectly in the negotiation with international and
domestic creditors are hereby prohibited to be employed with the foreign and domestic
creditors of the Philippine government within two (2) years from their retirement or
separation from the government. The prohibition on employment shall include consultancy,
contract of services, management contract or similar agreements or schemes.

SEC. 3. Prohibition on the Employment of Incumbent Officials with
International and Domestic Creditors. — incumbent officials of the government who have
participated or whose office has participated directly or indirectly in the negotiation with
international and domestic creditors are hereby prohibited to be employed with the foreign
and domestic creditors of the Philippine government while in government service and within
two (2) years from their resignation or separation therefrom. The prohibition on employment
shall include consultancy, contract of services, management contract or similar agreements
or schemes.

SEC. 4. Penal Provision. - Any person violating any of the provisions of this Act
shall be liable for imprisonment for a period of one (1) year to five (5) years at the discretion
of the court and forfeiture of the instruments or fruits of the offense in favor of the State,
including the salaries and all benefits received as a result of his employment with the foreign
cor domestic creditor.


SEC. 5. Separability Clause. - If any provision of this Act shall be declared
unconstitutional, no other provisions shall be affected thereby.

SEC. 6. Repealing Clause. - All laws, executive orders, rules and regulations or
parts thereof which are inconsistent with this Act are hereby repealed or modified
accordingly.

SEC. 7. Effectivity.- This Act shall take effect fifteen (15) days from the date of its
Publication in the Official Gazette or in any newspaper of general circulation, whichever
comes earlier.

Approved,