10 OCT 2012

HOUSE OF REPRESENTATIVES » PH
Quezon City, Metro Manila

FIFTEENTH CONGRESS
THIRD REGULAR SESSION

HOUSE BILL NO.__ 6629

Introduced by CIBAC Party List Representatives
Sherwin N. Tugna and Cinchona Cruz-Gonzales

AN ACT STRENGTHENING THE OFFICE OF THE OMBUDSMAN AND INCREASING
AND BROADENING THE SCOPE OF ITS POWERS, AND FOR OTHER PURPOSES

EXPLANATORY NOTE.

The report made by the Development Academy of the Philippines (DAP) mentioned the
WorldBank’s 9-point approach proposal to fight corruption which includes:

. Reducing opportunities for corruption by policy reforms and deregulation;
Reforming campaign finance;
Increasing public oversight;
Reforming budget processes;
Improving meritocracy in the civil service;
Targeting selected departments and agencies;
Enhancing sanctions against corruption;
. Developing partnerships with the private sector; and
Supporting judicial reform.

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Pursuant to WorldBank’s approach, DAP formulated an anti-corruption framework and
program strategy. The key components mentioned by DAP to jumpstart the Anti-Corruption
Program include: a) civil society watchdogs; b) report card survey; c) open public documents; d)
transactions reengineering; ¢) corruption vulnerability assessment; f) fast tracking of high profile
cases; g) lifestyle checks; h) anti-corruption vanguards; i) whistle blowers’ incentive and
protection scheme; and j) public ethics.

Some of the above-mentioned components have been addressed by laws previously
passed. The components that have not yet been included form part of the provisions of this Act.

On July 18, 2000, an anti-corruption agency was created through Executive Order No.
268. The National Anti-Corruption Commission (NACC) was patterned after Hong Kong’s
Independent Commission Against Corruption (ICAC). Even if the rationale behind the creation
of NACC was wise, NACC faced controversies because there were claims that its functions
overlapped with those of the other anti-graft bodies. Thus, NACC was never activated. Pursuant


to Executive Order No. 12, the functions of NACC were then transferred to Presidential Anti-
Graft Commission (PAGC) under the Office of the President. On November 15, 2010,
Executive Order No. 13 abolished PAGC and transferred the latter's functions to the Office of
the Deputy Executive Secretary for Legal Affairs (ODESLA), Office of the President.

The failure of the previous anti-graft and corrupt bodies to fully perform their functions
lies on the fact that the functions overlap with the functions of other anti-graft bodies, including
the Office of Ombudsman which is an independent body created under the 1987 Constitution to
fight the evils of graft and corruption.

One of the most important strategies DAP mentioned is the creation of an anti-corruption:
agency. In as much as the Constitution provided for the Office of Ombudsman which is tasked
to investigate cases relating to the violation of laws enacted to curb corruption, it is about time
that the Office of Ombudsman be strengthened and its powers increased and broadened. The
increase in the powers of the Office of Ombudsman can be patterned after those of the Hong
Kong’s Independent Commission Against Corruption (ICAC), the most successful anti-
corruption body in the world. Aside from investigation of corruption cases, the Office of
Ombudsman shall also focus on corruption prevention strategies and community relations to
ensure that people participate in the fight against graft and corruption. Also, the Office of
Ombudsman shall be given the power to freeze accounts of people whom it believes a probable
cause exists that such people commit violation of laws relating to graft and corruption. Another
mechanism to ensure that people who violated laws relating to graft and corruption is the
application for a Search Information Order which allows for procurement of information from
individuals or corporations in possession of relevant information provided that the safeguards
enshrined in the 1987 Philippine Constitution are followed and complied with.

Also, this act incorporates the various strategies proposed by DAP which include but not
limited to the following: coordination with and participation of civil society organizations,
conduct of report card surveys, corruption vulnerability assessment, and fast-tracking of high
profile cases

In view of the foregoing, immediate passage of the bill is earnestly sought.

Rep. CINCHONA \Z-GONZALES

CIBAC Party-List



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

FIFTEENTH CONGRESS
THIRD REGULAR SESSION

HOUSE BILL NO. _ 66 29

Introduced by CIBAC Party List Representatives
Sherwin N. Tugna and Cinchona Cruz-Gonzales

AN ACT STRENGTHENING THE OFFICE OF THE OMBUDSMAN AND INCREAS!
THE SCOPE OF ITS POWERS, AND FOR OTHER PURPOSES.

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

Section 1, Title, ~ This Act shall be known as "The Office of the Ombudsman Act of 2012".
Section 2. Declaration of Policy. — The State shall maintain honesty, efficiency and integrity in
the public service and take positive, attainable and effective measures against graft and
corruption existing either in government or private sectors of the society.

Public office is a public trust. Public officers and employees must at all times be accountable to
the people, serve them with utmost responsibility, integrity, loyalty, efficiency, act with
patriotism and justice and lead modest lives.

Persons in private sectors must also exhibit principles of honesty, integrity, and loyalty. They
must learn the value of fairness, truthfulness and equality in dealing with others, performing their
responsibilities, and entering into transactions and agreements.

Section 3. Definition of Terms. ~ in this law, unless the context otherwise requires-
“Constitution” means the prevailing fundamental law of the Philippines;

“CSC” means the Civil Service Commission;

“CSOs” means civil society organizations;

"Office" means the Office of the Ombudsman established under Article XI, Section 5 of the
Constitution and under Section 4 hereof,

“Ombudsman” means the head of the Office of the Ombudsman appointed by the President of
the Philippines in accordance with the Constitution and Section 5 hereof.

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Section 4. Office. — The Office shall include the Office of the Overall Deputy, the Office of the
Deputy for National Capital Region (NCR), the Office of the Deputy for Luzon, the Office of the
Deputy for Visayas, the Office of the Deputy for Mindanao, the Office of the Deputy for
Corruption Prevention, the Office of the Deputy for Community Relations, the Office of the
Deputy for the Military and Other Law Enforcement Offices, and the Office of the Special
Prosecutor. The President may appoint other Deputies as the necessity for it may arise, as
recommended by the Ombudsman.

Section 5. Appointment.— The Ombudsman and the Deputies, including the Special
Prosecutor, shall be appointed by the President from a list of three (3) nominees for each vacancy
prepared by the Judicial and Bar Council, which shall be filled within three (3) months after the
vacancy occurs, each of which list shall be published in a newspaper of general circulation.

Before the appointment of the Ombudsman and the Deputies, including the Special Prosecutor,
‘the Judicial and Bar Council shall hold a panel interview of all the nominees for the position of
Ombudsman and the Deputies which shall be made available to the public.

The officials and employees of the Office, other than the deputies, shall be appointed by the
Ombudsman according to Civil Service Law.

In the organization of the Office for filling up of positions therein, regional, cultural or ethnic
considerations shall be taken into account to the end that the Office shall be as much as possible
representative of the regional, ethnic and cultural make-up of the Filipino nation.

Section 6. Qualifications. — The Ombudsman and his Deputies, including the Special
Prosecutor, shall be natural-born citizens of the Philippines, at least forty (40) years old at the
time of their appointment, of recognized probity, competence, integrity and independence,
members of the Philippine Bar, and must not have been candidates for any elective national or
local office in the immediately preceding election whether regular or special. The Ombudsman
must have, for ten (10) years or more, been a judge or engaged in the practice of law in the
Philippines.

‘The Deputy for Corruption Prevention, aside from the requirements mentioned above, must have
previously worked in the prosecutorial or law enforcement agencies of the government for atleast
three (3) years, The Deputy for Community Relations, aside from the requirements mentioned
above, shall have a degree relating to any of the following courses such as education,
psychology, mass communications, broadcasting, or any other courses related to dealing with
different people and teaching them and shall have previously worked with an office that relates
to either education or people relations,

Section 8. Rank and Salary. — The Ombudsman and his Deputies shall have the same ranks,

salaries and privileges as the Chairman and members, respectively, of a Constitutional
Commission. Their salaries shall not be decreased during their term of office.

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The members of the prosecution, investigation, legal staff and other employees and officials of
the Office shall receive salaries which shall not be less than those given to comparable positions
in any office in the Government

Section 9. Term of Office.— The Ombudsman and his Deputies, including the Special
Prosecutor, shall serve for a term of seven (7) years without reappointment.

Section 10. Removal; Filling of Vacancy. —

(1) In accordance with the provisions of Article XI of the Constitution, the Ombudsman
may be removed from office on impeachment for, and conviction of, culpable violation
of the Constitution, treason, bribery, graft and corruption, other high crimes, or betrayal
of public trust.

(2) A Deputy or the Special Prosecutor, may be removed from office by the President for
any of the grounds provided for the removal of the Ombudsman, and after due process

(3) In case of vacancy in the Office, due to death, resignation, removal or permanent
disability of the incumbent Ombudsman, the Overall Deputy shall serve as Acting
Ombudsman in a concurrent capacity until a new Ombudsman shall have been appointed
for a full term. In case the Overall Deputy cannot assume the role of Acting Ombudsman,
the President may designate any of the Deputies, or the Special Prosecutor, as Acting
Ombudsman, taking into consideration the quantifiable criteria such as but not limited to
seniority, competence, integrity, administration capability, and independence.

(4) In case of temporary absence or disability of the Ombudsman, the Overall Deputy
shall perform the duties of the Ombudsman until the Ombudsman returns or is able to
perform his duties.

Section 11. Prohibitions and Disqualifications. — The Ombudsman, his Deputies and the
Special Prosecutor shall not, during their tenure, hold any other office or employment. They shall
not, during said tenure, directly or indirectly practice any other profession, participate in any
business, or be financially interested in any contract with, or in any franchise, or special privilege
granted by the Government or any subdivision, agency or instrumentality thereof, including
government-owned or controlled corporations or their subsidiaries. They shall strictly avoid
conflict of interest in the conduct of their office. They shall not be qualified to run for any office
in the election immediately following their cessation from office. They shall not be allowed to
appear or practice before the Ombudsman for two (2) years following their cessation from office

No spouse or relative by consanguinity or affinity within the fourth civil degree and no law,
business or professional partner or associate of the Ombudsman, his Deputies or Special
Prosecutor within one (1) year preceding the appointment, during the tenure of the official
concerned, and within one (1) year from cessation from office, may appear as counsel or agent
‘on any matter pending before the Office or transact business directly or indirectly therewith,
This disqualification likewise extends to the law, business or professional firm for the same

period.


Section 12. Disclosure of Relationship. — \t shall be the duty of the Ombudsman, his Deputies,
including the Special Prosecutor, to make under oath, to the best of their knowledge and/or
information, a public disclosure of the identities of, and their relationship with the persons
referred to in the preceding section.

The disclosure shall be filed with the Office of the President and the Office before the appointee
assumes office and every year thereafter. The disclosures made pursuant to this section shall
form part of the public records and shall be available to any person or entity upon request.

Section 13. Structural Organization. — The authority and responsibility for the exercise of the
mandate of the Office and for the discharge of its powers and functions shall be vested in the
Ombudsman, who shall have supervision and control of the said office.

(1) The Office may organize such directorates for administration and allied services as
may be necessary for the effective discharge of its functions. Those appointed as directors
or heads shall have the rank and salary of line bureau directors.

(2) The Office shall organize the composition, determine the positions that must be filled
up, and recommend the additional budget allocations.

(3) The Office of the Overall Deputy shall oversee and administer the operations of the
different offices it is assigned to under the Office. It shall likewise perform such other
functions and duties assigned to it by the Ombudsman.

(4) The Office of the Special Prosecutor shall be composed of the Special Prosecutor and
his prosecution staff. The Office of the Special Prosecutor shall be an organic component
of the Office and shall be under the supervision and control of the Ombudsman.

(4) The Office of the Special Prosecutor shall, under the supervision and control and
upon the authority of the Ombudsman, have the following powers:

(a) To conduct preliminary investigation and prosecute criminal cases within the
jurisdiction of the Sandiganbayan;

(b) To enter into plea bargaining agreements; and

(c) To perform such other duties assigned to it by the Ombudsman.

The Special Prosecutor shall have the rank and salary of'a Deputy Ombudsman.
(5) The position structure and staffing pattern of the Office, including the Office of the
Special Prosecutor, shall be approved and prescribed by the Ombudsman. The
Ombudsman shall appoint all officers and employees of the Office, including those of the

Office of the Special Prosecutor, in accordance with the Civil Service Law, rules and
regulations.

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Section 14. Official Stations. — The Ombudsman, the Overall Deputy, the Deputies for NCR,
and Luzon, the Deputy for Corruption Prevention, the Deputy for Community Relations and the
Deputy for the Armed Forces and Other Law Enforcement Offices shall hold office in
Metropolitan Manila; the Deputy for Visayas, in Cebu City; and the Deputy for Mindanao, in
Davao City. The Ombudsman may transfer their stations within their respective geographical
regions, as public interest may require.

The Ombudsman, on his/her own initiatives based on the recommendation of the Deputies, shall
institute regional offices for better execution of the powers and duties provided in this Act

Section 15. Investigations, Hearings and Adjudication of Cases. — The Ombudsman and his
Deputies, as protectors of the people, shall act promptly on complaints filed in any form or
manner against officers or employees of the Government, or of any subdivision, agency or
instrumentality thereof, including government-owned or controlled corporations, and enforce
their administrative, civil and criminal liability in every case where the evidence warrants in
order to promote efficient service by the Government to the people.

The investigation of criminal and administrative complaints falling under the jurisdiction of the
Office shall be dealt with speed but with consideration to principles of equality, fairness, truth
and competence.

(a) Criminal Cases

The fact-finding investigation of the Office with respect to criminal complaints shall be finished
not more than three (3) months from the time of the filing of the complaint, which can be
extended to another one (1) month upon showing of reasonable cause for extension.

‘The preliminary investigation shall be concluded within twenty-one (21) days from the time the
case is deemed submitted for resolution. The Office shall promulgate rules and regulations to
ensure that the filing of affidavit, counter-affidavit, and other related documents will not delay
the determination of the existence of probable cause. It shall not allow extension of time to file
pleadings or other documents, or resetting of hearing more than twice by one party to the case.

(b) Administrative Cases

The fact-finding investigation of the Office with respect to administrative complaints shall be
finished not more than three (3) months from the time of the filing of the complaint, which can
be extended to another one (1) month upon showing of reasonable cause for extension, unless the
administrative complaint is related to a criminal complaint which the period for the fact finding
investigation in paragraph (a) above shall apply.

‘The administrative complaints shall be decided upon within fourteen (14) days from the time of
termination of the fact-finding investigation, which can be extended to another fourteen (14)
days upon showing of reasonable cause for extension. The Office shall promulgate rules and
regulations to ensure that there will be no delay in deciding the administrative case.

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Section 16. Restrictions. — No writ of injunction shall be issued by any court to delay an
investigation being conducted by the Office under this Act, unless there is a prima facie evidence
that the subject matter of the investigation is outside the jurisdiction of the Office.

No court shall hear any appeal or application for remedy against the decision or findings of the
Ombudsman, except the Supreme Court, on pure questions of law.

Section 17. Powers, Functions and Duties. — The Office shall have the following powers,
functions and duties:

(a) Investigate and prosecute on its own or on complaint by any person, any act or omission of
any public officer or employee, office or agency, when such act or omission appears to be illegal,
unjust, improper or inefficient. It has primary jurisdiction to investigate criminal complaints or
complaints involving public officers, and private persons acting in consonance with the public
officer, committing possible violation of any of the following:

(1) Republic Act No. 3019 as amended, otherwise known as the "Anti-Graft and Corrupt
Practices Act;”

(2) Republic Act No. 1379 on the unlawful acquisition of property by a public officer or
employee;

(3) Republic Act No. 6713, otherwise known as the "Code of Conduct and Ethical
Standards for Public Officials and Employees;”

(4) Presidential Decree No. 46, making it punishable for public officials and employees
to receive gifts on any occasion, including Christmas:

(5) Any provision under Title Seven, Book Two of the Revised Penal Code; and

(6) Rules and regulations duly promulgated by competent authority to implement any of
the foregoing laws or issuances.

In the exercise of this primary jurisdiction, the Office may take over, at any stage, from
any investigatory agency of Government, the investigation of such cases;

(b) Investigate and prosecute on its own or on complaint by any person, any act or omission of
any private person, which constitutes a violation of the “Anti-Graft and Corrupt Practices Act” as
amended,
(c) Investigate or hear administrative cases or complaints against all of the following:

(1) Officials of the executive branch occupying the positions of regional director and

higher, otherwise classified as Grade '27' and higher, of the Compensation and Position
Classification Act of 1989 (Republic Act No. 6758), specifically including:

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(i) Provincial governors, vice-governors, members of the sangguniang
panlalawigan and provincial treasurers, assessors, engineers and other provincial
department heads;

(ii) City mayors, vice-mayors, members of the sangguniang panlungsod, city
treasurers, assessors engineers and other city department heads,

(iii) Officials of the diplomatic service occupying the position of consul and
higher;

(iv) Philippine army and air force colonels, naval captains, and all officers of
higher rank;

(v) Officers of the Philippine National Police while occupying the position of
provincial director and those holding the rank of senior superintendent or higher;

(vi) City and provincial prosecutors and their assistants, and officials and
prosecutors in the Office of the Ombudsman and special prosecutor;

(vii) Presidents, directors or trustees, or managers of government-owned or -
controlled corporations, state universities or educational institutions or
foundations;

(2) Members of Congress and officials thereof classified as Grade'27'and up under the
Compensation and Position Classification Act of 1989;

(3) Members of the judiciary without prejudice to the provisions of the Constitution;

(4) Chairmen and members of Constitutional Commissions, without prejudice to the
provisions of the Constitution; and

(5) All other national and local officials classified as Grade'27'and higher under the
Compensation and Position Classification Act of 1989.

Administrative cases or complaints involving officials of the executive, legislative,
judicial branches of the government occupying positions lower than the Grade '27'
classification of the Compensation and Position Classification Act of 1989 (Republic Act
No. 6758) shall be received by the Office and referred to CSC, with notice to parties.

(d) Freeze any monetary instrument or property alleged to be proceeds of any violation of laws
mentioned in Section 15(a) or (b) or (c), upon determination of the existence of probable cause.

(¢) File ex parte applications with the court having jurisdiction of the public officer (applies also
if private persons are charged in the complaint together with public officers) or with the court
having jurisdiction of the private persons if they are charged for violation of the Anti Graft and
Corrupt Practices Act committed by private persons for the issuance of Search of Information

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Orders (SIOs) granting authority to elicit information, documents and other evidences from
government agencies, individuals, corporations, banks, or any other organizations having in
possession information relating to violations mentioned in Section 15(a), (b), or (¢) provided that
such orders will only issue upon compliance with the safeguards enshrined in the Constitution.

‘The Office must file simultaneously with the Freeze Order its ex parte applications for SIOs with
the proper court having jurisdiction of the person involved in order to ensure that efforts to trace
the proceeds of the crime or complaint are supported.

(f) Direct, upon complaint or at its own instance, any officer or employee of the Government, or
of any subdivision, agency or instrumentality thereof, as well as any government-owned or
controlled corporations with original charter, to perform and expedite any act or duty required by
law, or to stop, prevent, and correct any abuse or impropriety in the performance of duties;

(g) Direct the officer concerned to take appropriate action against a public officer or employee at
fault or who neglect to perform an act or discharge a duty required by law, and recommend his
removal, suspension, demotion, fine, censure, or prosecution, and ensure compliance therewith:
or enforce its disciplinary authority as provided in Section 21 of this Act: provided, that the
refusal by any officer without just cause to comply with an order of the Office to remove,
suspend, demote, fine, censure, or prosecute an officer or employee who js at fault or who
neglects to perform an act or discharge a duty required by law shall be a ground for disciplinary
action against said officer;

(h) Direct the officer concemed, in any appropriate case, and subject to such limitations as it may
provide in its rules of procedure, to furnish it with copies of documents relating to contracts or
transactions entered into by his office involving the disbursement or use of public funds or
properties, and report any irregularity to the Commission on Audit for appropriate action;

(i) Request any government agency for assistance and information necessary in the discharge of
its responsibilities, and to examine, if necessary, pertinent records and documents pursuant to
SIOs as mentioned in Section 15(e) hereof:

(j) Publicize matters covered by its investigation of the matters mentioned in paragraphs (a), (b),
and (c) hereof, when circumstances so warrant and with due prudence: provided, that the
Ombudsman under its rules and regulations may determine what cases may not be made public:
provided, further, that any publicity issued by the Ombudsman shall be balanced, fair and true;
Provided finally that copies of freeze orders issued by the Anti-Money Laundering Council
furnished to the Office in relation to accounts related to any activity covered under Section 15(a)
or (b) of this Act shall be considered confidential until the Office has decided to file cases before
the proper courts after investigation;

(k) Determine the causes of inefficiency, red tape, mismanagement, fraud, and corruption in the

Government and in private sector, and make recommendations for their elimination and the
observance of high standards of ethics and efficiency;

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(1) Deputize CSOs to check possible irregularities in various agencies of the government. The
Office shall promulgate rules and regulations for deputization of various civil organizations. The
tules and regulations shall ensure that the civil organizations to be deputized are valid and
existing organizations, proven to be of good reputation and known for competence, honesty, and
integrity, knowledgeable and has a good track record in performing their advocacies:

(m) Rank agencies, government-owned and government-controlled corporations, other
instrumentalities of the government, including local government units, with respect to their
efficiency on provision of services and governance as well as the vulnerability to corruption
pursuant to a quantitative tool the Office deems best to adopt for assessment,

(n) Certify agencies, government-owned and government-controlled corporations, other
instrumentalities of the government, including local government units, that they have complied
with the integrity standards to be adopted by the Office;

(0) Publish ranking and certifications issued pursuant to paragraphs m and n respectively of this
Section on the Office’s website and in newspapers of general circulation for number of times and
for specific period as the Office deems necessary;

(p) Formulate schemes, plans, procedures to prevent corruption in government and private
sectors of the society including but not limited to conduct of surveys of different public services
and of seminars, talks, dialogue with different sectors of the society;

(q) Strengthen the Office relations with the community and various sectors of the society in order
to educate the citizenry about anti graft and corruption policies of the Office and formulate plans,
programs that will help in the fight against graft and corruption;

(1) Determine who will be qualified as state witnesses for the cases filed before the Office and
provide the witnesses protection and benefits under Republic Act No. 6981;

(s) Specify which agencies, branches or instrumentalities of the government, and local
government units, where specific policies relating to corruption prevention would be
implemented in a given year,

(1) Administer oaths, issue subpoena and subpoena duces recum, and take testimony in any
investigation or inquiry, including the power to examine and have access to bank accounts and
records upon order from court having jurisdiction over public officer concerned:

(u) Punish for contempt in accordance with the Rules of Court and under the same procedure and
with the same penalties provided therein;

(v) Delegate to the Deputies, or its investigators or representatives such authority or duty as shall

ensure the effective exercise or performance of the powers, functions, and duties herein or
hereinafter provided;

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(w) Investigate and initiate the proper action for the recovery of ill-gotten and/or unexplained
wealth amassed after February 25, 1986 and the prosecution of the parties involved therein.

The Office shall give priority to complaints filed against high ranking government officials
and/or those occupying supervisory positions, complaints involving grave offenses as well as
complaints involving large sums of money and/or properties.

Section 18. Authority to Freeze. - Upon determination that probable cause exists that any
deposit or similar account is in any way related to any violation of laws mentioned in Section
15(a) or (b) of this law, the Office shall issue a freeze order to the bank or non-bank financial
institution, which shall be effective immediately, for a period not exceeding twenty (20) days
Notice to the depositor that his account has been frozen shall be sent to him the next day after the
issuance of the freeze order. The Office shall, however, ensure that the freeze order shall be
received by the depositor concerned on the day it was sent. The depositor concerned shall have
seventy-two (72) hours upon receipt of the notice to explain why the freeze order should be
lifted, The Office shall ensure that the depositor concerned will receive the notice to explain and
will be given seventy-two hours to explain after receipt of notice before the expiration of the
twenty (20)-day freeze order. The Office of shall dispose of the concerned depositor’s
explanation within seventy-two (72) hours from receipt thereof. The twenty (20)-day freeze
order of the Office may be extended upon order of the Court of Appeals, provided that the
twenty (20)-day period shall be tolled pending the Court of Appeals’ decision to extend the
period

No court shall issue a temporary restraining order or writ of injunction against any freeze order
issued by the Office of the Ombudsman except the Supreme Court.

The Office shall ensure that if it has issued an order to freeze upon determination of probable
cause, and that upon consideration of the explanation of concerned depositor whose account/s
is/are frozen that the issuance of the freeze order is proper or that the concerned individual fails
to explain the need for the lifting of the freeze order, it shall apply with the Court of Appeals a
verified petition for the extension of the freeze order before the expiration of the twenty (20)-day
period. The Court of Appeals shall act on the petition to extend the freeze order within twenty-
four (24) hours from filing of the petition. If the application is filed a day before a nonworking
day, the computation of the twenty-four (24)-hour period shall exclude the nonworking days
The Court of Appeals shall ensure that it will decide on the extension before the expiration of the
twenty (20)-day period. The Court of Appeals may extend the freeze order only once if it deems
necessary and not exceeding thirty (30) days

A person whose account has been frozen may participate in the proceedings before the Court of
Appeals if he was able to explain before the Office. However, a person who fails to explain
before the Office upon receipt of the notice to explain forfeits his/her right to participate in the
proceedings before the Court of Appeals.

Simultaneously with the filing of the verified petition before the Court of Appeals for the

extension of the freeze order, the Office shall file a verified petition before the court having
jurisdiction of the concerned individual for the issuance of the SIOs.

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The freeze order shall state specific account/s in the possession of a bank or non-bank financial
institution and the reason why accounts are being frozen.

If the Office is found to have issued the freeze order whimsically and for the purpose of
harassment or any other unlawful act against the depositor concerned, the penalty of
imprisonment from six months and one day to six years and a fine of not less than one hundred
thousand pesos nor more than three hundred thousand pesos shall be imposed upon persons
involved in the issuance of the freeze order and the determination of the existence of probable
cause who are found to have whimsically and for the purpose of harassment or any other
unlawful act against the depositor concerned whose account/s is/are frozen.

Section 19. Authority to Apply for Search of Information Order (S1Os). ~ If the Office finds
probable cause to believe-

(a) that the public officer has committed the violations mentioned in Section 15(a) or is liable for
an administrative case under Section 15(c) or that the private person has committed the
violations mentioned in Section 15(b); and

(b) that any share account, purchase account, club account, subscription account, investment
account, trust account, mutual or trust fund account, expense account, bank account or other
account of whatsoever kind or description, and any banker's books, company books, documents
or other article of or relating to any person named or otherwise identified in writing by the Office
are likely to be relevant for the purposes of an investigation of an offense or violation, the Office
shall file ex parte application for issuance of Search of Information Orders (SIOs) with the court
having jurisdiction of the person being complained of.

‘The SIOs shall only be issued by the courts after compliance with the requisites for issuance of
search warrants or warrants of arrest as provided in the Constitution.

Upon receipt of the ex parte application for the SIOs, the person named from whom the
information shall be obtained and the person to whom the account belongs will be notified by the
proper court of at least three (3) days before the date set for hearing, which shall not be later than
seven (7) days from the receipt of the verified petition, during which the persons may contest the
issuance of the SIOs. The determination of the issuance of the SIOs shall be scheduled for two
(2) hearings only after which the proper court shall determine if an SIO can be issued. Only one
postponement of the hearing is allowed based on the absence of one party or his or her counsel
upon proof of notice otherwise the proper court shall decide whether to issue the SIO or not
based on the petition and the documents attached thereon and the reasons given by the person
from whom the information is being obtained or by the person to whom the account belongs
upon appearance during the hearing

Upon issuance of the $IOs, the Office shall be authorized to do the following:
(i) to investigate and inspect such accounts, books or documents or other article of or relating to

the person named or otherwise identified in the work place of the person from whom the
information is being obtained by the Office within seven (7) working days but not more than

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fourteen (14) working days from receipt of the order granting issuance of $IOs unless it appears
to the proper court that a shorter or longer period would be appropriate in the particular
circumstances of the application which shall not be less than five (5) working days nor more than
thirty (30) days.

(ii) to require from any person the production of such accounts, books, documents, or other
article of or relating to the person named or otherwise identified by the Office which may be
required for the purposes of such investigation and the disclosure of all or any information
relating thereto, and to take copies of such accounts, books or documents or of any relevant entry
therein and photographs of any other article; Provided that the production shall be made at the
expense of the Office and shall be reimbursed based on the receipts given to the Office for the
expenses incurred for the production of such accounts, books, documents, or other article;
Provided Further that such accounts, books, documents, or other article shall be reproduced
within seven (7) working days but not more than fourteen (14) working days from receipt of the
SIOs issued by the proper court unless it appears to the proper court that a shorter or longer
period would be appropriate in the particular circumstances of the application which shall not be
less than five (5) working days nor more than thirty (30) days.

(iii) to require from any person information as to whether or not at any bank, company or other
place there is any account, book, document or other article liable to investigation, inspection or
production under such authorization; Provided that the person from whom the information is
being obtained must provide such information within seven (7) working days but not more than
fourteen (14) working days from receipt of the SIOs issued by the proper court unless it appears
to the proper court that a shorter or longer period would be appropriate in the particular
circumstances of the application which shall not be less than five (5) working days nor more than
thirty (30) days.

Any person who, having been lawfully required under this section to disclose any information or
to produce any accounts, books, documents or other article shall comply with such requirement,
and any such person who fails or neglects, without reasonable excuse, so to do, and any person
who obstructs any officer in the execution of SIOs, shall be guilty of an offense and shall be
liable on conviction to a fine of not less than One Hundred Thousand Pesos (P 100,000) but not
more than Three Hundred Thousand Pesos (P300,000) and to imprisonment for one (1) year.

Any person who falsely represents that SIOs have been issued shall be guilty of an offense and
shall be liable on conviction to a fine of Two Hundred Thousand Pesos (P200,000) and to
imprisonment for one (1) year

Any person who wilfully delay the conduct of the hearing shall be guilty of an offense and shall
be liable on conviction to a fine of not less than Fifty Thousand Pesos (P50,000) but not more
than One Hundred Thousand Pesos (P100,000),

Information obtained through the SIOs shall only be used for the purpose of the Office as
mentioned in its ex parte application. The Office shall not make public the information obtained
through the SIOs except when such information is known to the public during the hearings which
are available to the public.

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‘The Office and its concerned official who wilfully publish the information obtained through the
$IOs not through the hearings conducted for the issuance of the SOs shall be guilty of an
offense and shall be liable on conviction to a fine of not less than Fifty Thousand Pesos
(P50,000) but not more than One Hundred Thousand Pesos (P 100,000).

Section 20, Authority to Apply for Assistance. - Any investigating officer conducting an
investigation into an offense alleged or suspected to have been committed under Section 15 (a),
(b) or (c) of this Act may apply to any public servant for assistance in the exercise of his powers
or the discharge of his duties under this Act.

‘Any public servant who when requested under this section to render assistance, without
reasonable excuse neglects or fails to render such assistance within a reasonable period of time
shall be guilty of an offence and shall be liable on conviction to a fine of not less than One
Hundred Thousand Pesos (P100,000) but not more than Three Hundred Thousand Pesos
(P300,000) and to imprisonment for one (1) year

Section 21. Deputization of Civil Society Organizations (CSOs). — The Office of Corruption
Prevention shall target during the first (1") quarter of every year at least three (3)
instrumentalities, branches or agencies of the Republic of the Philippines, including local
government units, to which deputized CSOs shall be assigned to, unless it deems best that for the
said year, a lesser number of CSOs or none at all be deputized. The Office of Corruption
Prevention shall ensure that the target instrumentalities, branches or agencies of the Republic of
the Philippines, including local government units, must conform with its over-all plan to prevent
corruption. The over-all plan to prevent corruption must be achievable, will produce quantifiable
results, and drawn up every first (1) quarter of the year, upon consultation with reputable CSOs,
NGOs, and other private entities and government offices which particularly have programs to
prevent corruption. The over-all plan of the Office of Corruption Prevention, which includes the
deputization of CSOs, must be acted upon by the Ombudsman within thirty (30) days from
submission,

The Office of Corruption Prevention may either contact CSOs which are qualified to be
deputized based on the following criteria: 1) validity of its existence: 2) proven to be of good
reputation; 3) known for competence, honesty, and integrity: 4) knowledgeable and has a good
track record in performing its advocacy, or publish on its website and/or in newspapers of
general circulation applications for CSOs to be deputized to a particular instrumentality, branch
or agency of the Republic of the Philippines, including a local government unit.

The CSOs to be deputized must be chosen by the Deputy for Corruption Prevention atleast two
(2) months before the start of the preparation of the budget of the Office. The applicants-CSOs
must provide information and proof of their existence, competence, knowledge, expertise,
projects and efforts to curtail graft and corruption in the society. Together with the information,
the CSOs must also provide an estimated budget for its activities drawn up to perform the
following tasks:

a) Monitor critical and  substantially-funded government projects and/or agencies,
instrumentalities, branches of government, including local government units;

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b) Conduct its own report card survey of the agency to which they are deputized by
adopting effective but cost efficient techniques to assess the specific agency;

c) Adopt a mechanism to designate its people to act as agents to specifically entrap erring
civil servants and or testify against civil servants on cases that the Office of Corruption
Prevention will file pursuant to the reports of the CSOs;

d) Provide researches and studies to the Office in order to assist the Office in its fight
against graft and corruption in the society.

The Office of Corruption Prevention for the first year of implementation of this Act shall
deputize the CSOs pursuant to the approved over-all plan to prevent corruption. The
deputization shall be valid for the period designated by the Office of Corruption Prevention in
the Certificate of Designation issued which must be in accordance with the approved over-all
plan to prevent corruption.

The deputized CSOs must submit periodic reports to the Office of Corruption Prevention and
recommend policies that can help in the fight against graft and corruption.

Within three (3) months after the termination of the deputization, the Office of Corruption
Prevention must have an evaluation report of the deputization which includes the findings,
results and other information obtained by the CSOs.

‘The evaluation report shall be communicated by the Ombudsman to the head of the agency,
instrumentality, branch of government, including the local government unit evaluated and
monitored by the CSOs. The Ombudsman will collate the response of the head of the agency,
instrumentality, branch of government, including the local government unit evaluated and
monitored by the CSOs, and publish it on the website of the Office. The Office of Corruption
Prevention shall make periodic consultations with the head of the agency, instrumentality, branch
of government, including the local government unit, to assess whether actions were done to
address the evaluation report of the CSOs, if necessary. Updates on the actions done shall be
published on the Office’s website and in newspapers of general circulation for number of times
and for specific period as the Office deems necessary.

Section 22. Corruption Vulnerability Assessment and Certifications. — The Office of
Corruption Prevention shall adopt a corruption vulnerability assessment program which will
identify specific aspects of governance and administration of government agencies to determine
which of these agencies are efficient and more prone to corruption. These aspects will include
but not limited to the following: broad discretion, weak sanctions for corrupt behaviour,
cumbersome procedures, lack of service standards, poorly disseminated rules, weak checks and
balances. Based on this assessment, the Office for Corruption Prevention shall rank the
government agencies in relation to the latter's vulnerability to corruption and efficiency in
performing its duties and responsibilities.

The Office of Corruption Prevention shall also certify agencies national government, the local
governments, the government-owned and government-controlled corporations, and all other
instrumentalities or agencies of the Republic of the Philippines that they have complied with the
integrity standards to be adopted by the Office

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The Office for Corruption Prevention shall publish the ranking and certifications above-
mentioned on the Office’s website and in newspapers of general circulation for number of times
and for specific period as the Office deems necessary.

Section 23, Corruption Prevention Fund. — The Office shall transmit to the Department of
Budget and Management atleast two (2) months before the start of the budget season in a given
year its approved over-all plan for corruption prevention, the specified agencies, branches,
instrumentalities of the government, and the local government units, where its policies for
corruption shall be implemented, and the target budget itemized for specified expenses for the
implementation of the policies. The Office shall see to it that the target number of specified
agencies, branches, instrumentalities of the government, and the local government units is
reasonable and effective in achieving goals of the Office and that the recommended budget for
the implementation of policies shall not exceed five percent (5%) of the total budget
appropriations for the preceding year of the specified agencies, branches, instrumentalities of the
government, and the local government units.

The Department of Budget and Management shall evaluate the recommendation of the Office.
Upon determination that the recommendation is in consonance with the approved over-all plan to
prevent corruption of the Office for the succeeding year, the Department of Budget and
Management may include the additional budgets for specified agencies, branches,
instrumentalities of the government, and the local government units, in its total recommended
budget for the government for the succeeding year

Upon the effectivity of this Act, the Office shall formulate an assessment tool which could
quantify the results of the over-all plan to prevent corruption. This assessment tool will then be
transmitted to the Department of Budget and Management, and serves as the basis of the
Department of Budget and Management whether or not to approve the recommendations of the
Office for additional budget allocations for specified agencies, branches, instrumentalities of the
government, and the local government units to prevent corruption for the next year.

Section 24. Immunities. — In all hearings, inquiries, and proceedings of the Office, including
preliminary investigations of offenses, no person subpoenaed to testify as a witness shall be
excused from attending and testifying or from producing books, papers, correspondence,
memoranda and/or other records on the ground that the testimony or evidence, documentary or
otherwise, required of him, may tend to incriminate him or subject him to prosecution: provided,
that no person shall be prosecuted criminally for or on account of any matter concerning which
he is compelled, after having claimed the privilege against self-incrimination, to testify and
produce evidence, documentary or otherwise.

Under such terms and conditions as it may determine, taking into account the pertinent
provisions of the Rules of Court, the Ombudsman may grant immunity from criminal
prosecution to any person whose testimony or whose possession and production of documents or
other evidence may be necessary to determine the truth in any hearing, inquiry or proceeding
being conducted by the Ombudsman or under its authority, in the performance or in the
furtherance of its constitutional functions and statutory objectives. The immunity granted under
this and the immediately preceding paragraph shall not exempt the witness from criminal

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prosecution for perjury or false testimony nor shall he be exempt from demotion or removal from
office

‘The Office shall be given the same authority as the Department of Justice under Republic Act
No. 6981 in relation to protection, security and benefits of witnesses the Office has for the
prosecution of the criminal cases it handles.

Any refusal to appear or testify pursuant to the foregoing provisions shall be subject to
punishment for contempt and removal of the immunity from criminal prosecution.

Section 25. Rules of Procedure.

(1) The Office shall promulgate its rules of procedure for the effective exercise or
performance of its powers, functions, and duties.

(2) The rules of procedure shall include a provision whereby the Rules of Court are made
suppletory.

(3) The rules shall take effect after fifteen (15) days following the completion of their
publication in the Official Gazette or in three (3) newspapers of general circulation in the
Philippines, one of which is printed in the national language.

Section 26. Administrative Complaints. — The Office shall act on all complaints relating, but
not limited to acts or omissions which:

(1) Are contrary to law or regulation;
(2) Are unreasonable, unfair, oppressive or discriminatory;

(3) Are inconsistent with the general course of an agency's functions, though in
accordance with law;

(4) Proceed from a mistake of law or an arbitrary ascertainment of facts;

(5) Are in the exercise of discretionary powers but for an improper purpose; or

(6) Are otherwise irregular, immoral or devoid of justification.

Provided that the Office shall only act on administrative complaints involving
administrative cases or complaints involving officials of the executive, legislative,
occupying positions of Grade '27' classification of the Compensation and Position
Classification Act of 1989 (Republic Act No. 6758) or higher, otherwise, the Office shall

refer the administrative cases or complaints to the CSC.

Section 27. Exceptions. — The Office may not conduct the necessary investigation of any
administrative act or omission complained of if it believes that:

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(1) The complainant has an adequate remedy in another judicial or quasi-judicial body;
(2) The complaint pertains to a matter outside the jurisdiction of the Office;
(3) The complaint is trivial, frivolous, vexatious or made in bad faith;

(4) The complainant has no sufficient personal interest in the subject matter of the
grievance; or

(5) The complaint was filed after one (1) year from the occurrence of the act or omission
complained of.

Section 28. Official Subject to Disciplinary Authority; Exceptions. — The Office shall have
disciplinary authority over all elective and appointive officials of the Government and its
subdivisions, instrumentalities and agencies, including Members of the Cabinet, local
government, government-owned or controlled corporations and their subsidiaries, except over
officials who may be removed only by impeachment or over Members of Congress, and the
Judiciary.

The CSC shall recommend to the Office within thirty (30) days from receipt of the
administrative complaint if the Office needs to exercise its disciplinary authority over officials
whose administrative cases have been referred by the Office to CSC.

Section 29. Investigatory Power. — The Office shall have the power to investigate any serious
misconduct in office allegedly committed by officials removable by impeachment, for the
purpose of filing a verified complaint for impeachment, if warranted.

In all cases of conspiracy between an officer or employee of the government and a private
person, the Ombudsman and his Deputies shall have jurisdiction to include such private person
in the investigation and proceed against such private person as the evidence may warrant. The
officer or employee and the private person shall be tried jointly and shall be subject to the same
penalties and liabilities

Section 30. Formal Investigation.

(1) Administrative investigations conducted by the Office shall be in accordance with its
rules of procedure and consistent with due process

(2) At its option, the Office may refer certain complaints to the proper disciplinary
authority for the institution of appropriate administrative proceedings against erring
public officers or employees, which shall be determined within the period prescribed in
the civil service law. Any delay without just cause in acting on any referral made by the
Office shall be a ground for administrative action against the officers or employees to
whom such referrals are addressed and shall constitute a graft offense punishable by a
fine of not exceeding One Hundred Thousand pesos (P100,000.00).

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(3) In any investigation under this Act, the Ombudsman may: (a) enter and inspect the
premises of any office, agency, commission or tribunal; (b) examine and have access to
any book, record, file, document or paper, and (c) hold private hearings with both the
complaining individual and the official concerned

Section 31. Preventive Suspension. — The Ombudsman or his Deputy may preventively
suspend any officer or employee under his authority pending an investigation, if in his judgment
the evidence of guilt is strong, and (a) the charge against such officer or employee involves
dishonesty, oppression or grave misconduct or neglect in the performance of duty; (b) the
charges would warrant removal from the service; or (c) the respondent's continued stay in office
may prejudice the case filed against him

The preventive suspension shall continue until the case is terminated by the Office or the CSC, if
applicable, but not more than six (6) months, without pay, except when the delay in the
disposition of the case by the Office or the CSC, if applicable, is due to the fault, negligence or
petition of the respondent, in which case the period of such delay shall not be counted in
computing the period of suspension herein provided

Section 32. Penalties, —

(1) In administrative proceedings under Presidential Decree No. 807, the penalties and
rules provided therein shall be applied.

(2) In other administrative proceedings, the penalty ranging from suspension without pay
for one (1) year to dismissal with forfeiture of benefits or a fine ranging from Five
thousand pesos (P5,000.00) to twice the amount malversed, illegally taken or lost, or both
at the discretion of the Ombudsman, taking into consideration circumstances that mitigate
or aggravate the liability of the officer or employee found guilty of the complaint or
charges.

Section 33. Inquiries. —
(1) The Office shall inquire into acts or omissions of a public officer, employee, office or
agency which, from the reports or complaints it has received, the Ombudsman or his
Deputies consider to be:
(a) contrary to law or regulation;
(b) unreasonable, unfair, oppressive, irregular or inconsistent with the general
course of the operations and functions of a public officer, employee, office or

agency;

(c) an error in the application or interpretation of law, rules or regulations, or a
gross or palpable error in the appreciation of facts;

(d) based on improper motives or corrupt considerations:

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(e) unclear or inadequately explained when reasons should have been revealed; or
(£) inefficient performed or otherwise objectionable.

(2) The Officer of the Ombudsman shall receive complaints from any source in whatever
form concerning an official act or omission. It shall act on the complaint immediately and
if it finds the same entirely baseless, it shall dismiss the same and inform the complainant
of such dismissal citing the reasons therefore. If it finds a reasonable ground to
investigate further, it shall first furnish the respondent public officer or employee with a
summary of the complaint and require him to submit a written answer within seventy-two.
(72) hours from receipt thereof. If the answer is found satisfactory, it shall dismiss the
case.

(3) When the complaint consists in delay or refusal to perform a duty required by law, or
when urgent action is necessary to protect or preserve the rights of the complainant, the
Office shall take steps or measures and issue such orders directing the officer, employee,
office or agency concerned to:

(a) expedite the performance of duty;

(b) cease or desist from the performance of a prejudicial act;

(c) correct the omission:

(d) explain fully the administrative act in question; or

(e) take any other steps as may be necessary under the circumstances to protect
and preserve the rights of the complainant.

(4) Any delay or refusal to comply with the referral or directive of the Ombudsman or
any of his Deputies shall constitute a ground for administrative disciplinary action against
the officer or employee to whom it was addressed

Section 34, Effectivity and Finality of Decisions. — (1) All provisionary orders of the Office
are immediately effective and executory.

A motion for reconsideration of any order, directive or decision of the Office must be filed
within five (5) days after receipt of written notice and shall be entertained only on any of the
following grounds:

(1) New evidence has been discovered which materially affects the order, directive or
decision;

(2) Errors of law or irregularities have been committed prejudicial to the interest of the

movant. The motion for reconsideration shall be resolved within three (3) days from
filing: provided, that only one motion for reconsideration shall be entertained.

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Findings of fact by the Officer of the Ombudsman when supported by substantial evidence are
conclusive. Any order, directive or decision imposing the penalty of public censure or reprimand,
suspension of not more than one (1) month's salary shall be final and unappealable

In all administrative disciplinary cases, orders, directives, or decisions of the Office may be
appealed to the Supreme Court by filing a petition for certiorari within ten (10) days from receipt
of the written notice of the order, directive or decision or denial of the motion for reconsideration
in accordance with Rule 45 of the Rules of Court.

The above rules may be amended or modified by the Office as the interest of justice may require.

Section 35. Investigation in Municipalities, Cities and Provinces. — The Office may establish
offices in municipalities, cities and provinces outside Metropolitan Manila, under the immediate
supervision of the Deputies for Luzon, Visayas and Mindanao, where necessary as determined
by the Ombudsman. The investigation of complaints may be assigned to the regional or sectoral
deputy concerned or to a special investigator who shall proceed in accordance with the rules or
special instructions or directives of the Office. Pending investigation the deputy or investigator
may issue orders and provisional remedies which are immediately executory subject to review by
the Ombudsman. Within three (3) days after concluding the investigation, the deputy or
investigator shall transmit, together with the entire records of the case, his report and conclusions
to the Office. Within five (5) days after receipt of said report, the Ombudsman shall render the
appropriate order, directive or decision

Section 36. Change of Unjust Laws. — If the Ombudsman believes that a law or regulation is
unfair or unjust, he shall recommend to the President and to Congress the necessary changes
therein or the repeal thereof.

Section 37. Transmittal/Publication of Decision. — In every case where the Ombudsman has
reached a decision, conclusion or recommendation adverse to a public official or agency, he shall
transmit his decision, conclusion, recommendation or suggestion to the head of the department,
agency or instrumentality, or of the province, city or municipality concerned for such immediate
action as may be necessary. When transmitting his adverse decision, conclusion or
recommendation, he shall, unless excused by the agency or official affected, include the
substance of any statement the public agency or official may have made to him by way of
explaining past difficulties with or present rejection of the Ombudsman's proposals

Section 38. Designation of Investigators and Prosecutors. — The Ombudsman may utilize the
personnel of his office and/or designate or deputize any fiscal, state prosecutor or lawyer in the
government service to act as special investigator or prosecutor to assist in the investigation and
prosecution of certain cases. Those designated or deputized to assist him herein provided shall be
under his supervision and control

The Ombudsman and his investigators and prosecutors, whether regular members of his staff or
designated by him as herein provided, shall have authority to administer oaths, to issue subpoena
and subpoena duces fecum, to summon and compel witnesses to appear and testify under oath
before them and/or bring books, documents and other things under their control, and to secure

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the attendance or presence of any absent or recalcitrant witness through application before the
Sandiganbayan or before any inferior or superior court having jurisdiction of the place where the
witness or evidence is found.

Section 39. Rights and Duties of Witness. —

(1) A person required by the Ombudsman to provide the information shall be paid the
same fees and travel allowances as are extended to witnesses whose attendance has been
required in the trial courts. Upon request of the witness, the Ombudsman shall also
furnish him such security for his person and his family as may be warranted by the
circumstances, For this purpose, the Ombudsman may, at its expense, call upon any
police or constabulary unit to provide the said security,

(2) A person who, with or without service or compulsory process, provides oral or
documentary information requested by the Ombudsman shall be accorded the same
privileges and immunities as are extended to witnesses in the courts, and shall likewise be
entitled to the assistance of counsel while being questioned.

(3) If a person refuses to respond to the Ombudsman's or his Deputy's subpoena, or
Tefuses to be examined, or engages in obstructive conduct, the Ombudsman or his Deputy
shall issue an order directing the person to appear before him to show cause why he
should not be punished for contempt. The contempt proceedings shall be conducted
pursuant to the provisions of the Rules of Court.

Section 40. Duty to Render Assistance to the Office. — Any officer or employee of any
department, bureau or office, subdivision, agency or instrumentality of the Government,
including government-owned or controlled corporations and local governments, when required
by the Ombudsman, his Deputy or the Special Prosecutor shall render assistance to the Office.

Section 41, Annual Report. — The Office shall render an annual report of its activities and
performance to the President and to Congress to be submitted within thirty (30) days from the
start of the regular session of Congress.

Section 42. Malicious Prosecution. — Any person who, actuated by malice or gross bad faith,
files a completely unwarranted or false complaint against any government official or employee
shall be subject to a penalty of one (1) month and one (1) day to six (6) months imprisonment
and a fine not exceeding Five thousand pesos (P5,000.00).

Section 43. Penalties for Obstruction. — Any person who willfully obstructs or hinders the
proper exercise of the functions of the Office or who willfully misleads or attempts to mislead
the Ombudsman, his Deputies and the Special Prosecutor in replying to their inquiries shall be
punished by a fine of not exceeding Five thousand pesos (P5,000.00),

Section 44. Franking Privilege. — All official mail matters and telegrams of the Ombudsman
addressed for delivery within the Philippines shall be received, transmitted, and delivered free of
charge: provided, that such mail matters when addressed to private persons or nongovernment

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offices shall not exceed one hundred and twenty (120) grams. All mail matters and telegrams
sent through government telegraph facilities containing complaints to the Office shall be
transmitted free of charge, provided that the telegram shall contain not more than one hundred
fifty (150) words.

Section 45, Fiscal Autonomy. — The Office shall enjoy fiscal autonomy. Appropriations for the
Office of the Ombudsman may not be reduced below the amount appropriated for the previous
years and, after approval, shall be automatically and regularly released.

Section 46. Appropriations. — The appropriation for the Office of the Special Prosecutor in the
current General Appropriations Act is hereby transferred to the Office of the Ombudsman
Thereafter, such sums as may be necessary shall be included in the annual General
Appropriations Act

Section 47. Separability Clause. — \f any provision of this Act is declared invalid, the other
provisions not affected thereby shall remain valid.

Section 48. Repealing Clause. — All laws, proclamations, executive orders, rules and
regulations or parts thereof inconsistent with this Act are hereby repealed, modified or amended
accordingly: Provided, That no person shall be deemed to be vested with any property or other
right by virtue of the enactment or operation of this Act.

Section 49. Effectivity Clause. — This Act shall take effect fifteen (15) days after its complete
publication in the Official Gazette or in at least two (2) national newspapers of general
circulation whichever comes earlier.

Approved,