Eighteenth Congress
First Regular Session

HOUSE BILL No. 4745

Introduced by Representative Henry S. Oaminal

EXPLANATORY NOTE

The Office of the Government Corporate Counsel (OGCC) acts as the
principal and the statutory counsel of about 714 government-owned or controlled
corporations, government instrumentalities exercising corporate powers,
government financial institutions and government corporate entities, their
subsidiaries and corporate offsprings as well as economic zones, state universities
and water districts (which shall all hereinafter be referred collectively as “GOCCs”
for brevity) all over the country. The OGCC’s responsibilities cover all the legal
affairs of all the GOCCs and it handles special tasks for them including the
exercise of control and supervision over all their legal departments. Its mandate has
been further reinforced in subsequent executive issuances to effectively provide
legal counsel to the GOCCs in their operations.

The strengthening of the OGCC is long overdue. The existing
organizational structure and personnel complement of OGCC was formulated way
back in 1978 and has not been amended and improved since then despite the
increasing work performed by the OGCC in discharging its mandate. To ensure
that OGCC shall be able to adapt to the changing conditions, the increase in the
number of its personnel and corresponding adjustment in their compensation and
benefits is inevitable.

For decades, the legal guidance and assistance provided by the OGCC by
way of legal representations, legal opinions, drafting and review of contracts,
performance of special tasks the exercise of control and supervision over its legal
departments, enabled the GOCCs to more efficiently perform their respective
mandates within the bounds of the law.


With OGCC as statutory counsel, GOCCs do not need to engage private
lawyers to address their legal requirements. The GOCCs are able to generate
savings and utilize its much needed funds for its core purposes, which would
otherwise be allocated for legal fees of private lawyers if OGCC has not existed.

With the growth in the number of GOCCs coupled with the complexities of
their requirements brought by the modern business situations and conditions, the
increase in the request for the legal services of OGCC, not only in terms of
volume, but also the nature of the services required, call for specialization and
expertise in specific fields of law.

The Officials and employees of OGCC who are entrusted with the legal
concems of the GOCCs need to be properly equipped and be adequately
compensated to effectively fulfill their duties and responsibilities.

In line with the principle of National Government's thrust to standardize and
rationalize the current compensation framework in the bureaucracy, the positions,
salaries and benefits of the lawyers and administrative staff of the OGCC should
be at par with the salary grades, positions, salaries and benefits of its counterparts
in the Department of justice performing similar functions and providing similar
legal services. It is for this reason that the OGCC needs a new Charter upgrading
the positions, salaries and benefits of its employees and increasing the number of
its legal personnel and administrative staff.

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



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Eighteenth Congress
First Regular Session

HOUSE BILL NO. 4745

Introduced by Representative Henry S. Oaminal

AN ACT
STRENGTHENING THE OFFICE OF THE GOVERNMENT
CORPORATE COUNSEL AND APPROPRIATING FUNDS THEREFOR

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

SECTION 1. Short Title — This act shall be known as the “OGCC
Charter.”

SEC. 2. Declaration of Policy — It shall be the policy of the State to
protect and promote the welfare, rights and interests of government-owned or
controlled corporations (GOCCs), government financial institutions (GFIs),
government instrumentalities with corporate powers (GCIPs), government
corporate entities (GCEs) as defined in Republic Act 10149 as well as their
subsidiaries and corporate offsprings including economic zones, state
universities and water districts, all collectively referred to in this Act as

government corporations (GOCCs).


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Toward this end, the State shall require the improvement of legal services
to efficiently address the expanding needs of these government corporations in
accordance with its initiative towards an improved fiscal management and good
corporate governance. It shall be the mandate of the OGCC to safeguard the
legal interest of the government corporations.

SEC. 3. Power, Jurisdiction and Mandate — Any law to the contrary
notwithstanding, the Office of the Government Corporate Counsel (“OGCC”)
shall be the statutory counsel and principal law office of all government
corporations. All government corporations shall refer to the OGCC the
following:

(a) All important legal questions for opinion and advice;

(b) All contracts for review, provided that the GCC may from time to
time determine which contract shall no longer be submitted to OGCC; and

(c) All cases for representation before regular courts, quasi-judicial
bodies, administrative agencies and arbitral tribunals, provided that, the
Government Corporate Counsel (GCC) may thereafter authorize the
government corporation’s legal department or retained counsel as collaborating
counsel to handle cases, as the urgency or expediency of circumstances may
warrant.

The OGCC shall:

(a) Exercise control and supervision over the legal departments of all

government corporations and conduct periodic performance audit of the in-


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house lawyers or legal departments of government corporations and to
recommend appropriate actions to them;

(6) Conciliate, mediate, act as hearing officers or adjudicate all disputes
on controversies exclusively between government corporations;

(c) Investigate and, in appropriate cases, hear administrative disciplinary
cases involving all lawyers, officials and employees of government corporations
upon the latter’s request and recommend appropriate administrative or
disciplinary sanctions;

(d) Conduct fact-finding and preliminary investigation in appropriately
referred cases;

(e) Act as Corporate Secretary or any other officer of government
corporations upon their request;

(f) Be assigned as members of technical working groups, bids and awards
committee, task force and other committees in relation to government
corporations’ projects;

(g) Be detailed or assigned to government corporations upon their request
provided, that the GCC approves the assignment or designation, including
attendance in meetings requested by government corporations;

(h) Represent the OGCC in the Governing Board and management
committees of government corporations;

(i) Approve the engagement of private lawyers by the government

corporations; and


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(j) Perform such other functions necessary in the interest of the service.

SEC. 4. Expansion and Upgrading of Positions —

(1) The Government Corporate Counsel (“GCC”) shall have the rank,
salary, allowances, retirement and pension benefits, emoluments, prerogatives
and privileges as the Presiding Justice of the Court of Appeals. The GCC shall
be assisted by a Deputy Government Corporate Counsel (“DGCC”) and twelve
(12) Assistant Government Corporate Counsels (*AGCC”) who shall have the
rank, salary, allowances, retirement and pension benefits, emoluments,
prerogatives and privileges of an Associate Justice of the Court of Appeals.

No person shall be appointed GCC, DGCC or AGCC the person is a
natural-born citizen of the Philippines and, for at least fifteen (15) years, has
been engaged in the practice of law in the Philippines.

(2) The number, rank, salary, allowances, retirement and pension
benefits, emoluments, prerogatives and privileges of the other members of the
legal staff shall be as follows:

(1) The present ten (10) Government Corporate Attorney IV

(“GCA IV”) shall be increased to sixteen (16) and they shall have the

rank, salary, allowances, retirement and pension benefits, emoluments,

prerogatives and privileges of a Regional Trial Court Judge. No person
shall be appointed as GCA IV unless the person is a natural-born citizen
in the Philippines and, for at least ten (10) years, has been engaged in the

practice of law in the Philippines;


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(2) The present fourteen (14) Government Corporate Attorney III

(“GCA III”) shall be increased to nineteen (19) and they shall have the

rank, salary, allowances, retirement and pension benefits, emoluments,

prerogatives and privileges of a Metropolitan Trial Court Judge. No
person shall be appointed GCA III unless the person is a natural-born
citizen of the Philippines and, for at least five (5) years, has been engaged
in the practice of law in the Philippines.

(3) The present seventeen (17) Government Corporate Attorney II

(“GCA II”) shall be increased to twenty (20) who shall be natural-born

citizens of the Philippines and have been engaged in the practice of law in

the Philippines for at least three (3) years;
(4) The present four (4) Government Corporate Attorney I (“GCA

1”) shall be increased to twelve (12) who shall be natural-born citizens of

the Philippines and have been engaged in the practice of law in the

Philippines for at least one (1) year.

The GCC, DGCC and AGCCs shall be appointed by the President of the
Philippines. The other members of the legal and administrative personnel shall
be appointed by the GCC. Except for the GCC, the appointments of the DGCC
and AGCCs shall be permanent upon compliance with the prescribed

qualification standards under this law.


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The GCC may appoint in coterminous capacity two (2) lawyers with the
same rank, salary, allowances and other benefits of an AGCC and two (2)
lawyers with the same rank, salary, allowances and other benefits of a GCA IV,
who shall form part of his confidential staff.

SEC. 5. Organizational Structure — The OGCC shall be headed by the
GCC, who is the principal law officer and legal defender of all the government
corporations. He shall have the authority and responsibility for the exercise of
the OGCC’s mandate and for the discharge of its duties and functions, and shall
have supervision and control over the OGCC and its constituent units. The GCC
shall promulgate necessary rules & regulations for the implementation of the
provisions of this law.

The GCC shall be assisted by the DGCC, AGCCs and such number of
GCAs as may be necessary to operate the OGCC.

Unless otherwise determined by the GCC, the legal staff shall be divided
into teams, each to be headed by an AGCC.

The administrative structure of the OGCC shall be composed of the
Secretarial and Legal Support Services, Finance and Accounting Services,
Human Resource and Management Services, Case and Records Management
Services, Library Management and Information Technology Services,
Corporate Planning Services and Property and Supply Services.

The legal and non-legal personnel of the OGCC occupying the positions

affected by the changes embodied in this Act at the time of its approval shall


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thereafter occupy and discharge the duties and functions of the upgraded
positions and receive the corresponding salary, benefits and privileges without
necessity of new appointments.

SEC. 6. Compensation — The salary grades for the basic monthly

compensation of the OGCC legal personnel shall be as follows:

Position Salary Grade
Government Corporate Counsel 31
Deputy Government Corporate Counsel 30
Assistant Government Corporate Counsel 30
Government Corporate Attorney IV 29
Government Corporate Attorney III 28
Government Corporate Attorney II 27
Government Corporate Attorney I 26

The 150 non-legal personnel shall be composed of the following: two (2)
Chief Administrative Officers; one (1) Budget Officer V; one (1) Executive
Assistant (EA) V; two (2) EA IV; one (1) EA III; one (1) Accountant IV; four
(4) Supervising Administrative Officers; one (1) Planning Officer IV; eleven
(11) Administrative Officers (AO) V; one (1) Librarian IV; one (1) Information
Technology Officer; one (1) Computer Main Technician; one (1) Librarian III;
four (4) AOs III; three (3) AOs II; twelve (12) Senior Administrative Assistant
III; one (1) Planning Analyst II; twenty (20) Administrative Assistant (ADAS)
VI; one (1) Computer Operator III; twelve (12) ADAS V;_ twelve (12) ADAS
III; one (1) Bookkeeper III; three (3) Records Officer I; fourteen (14) ADAS II;

five (5) ADAS I; one (1) Chauffeur IV; one (1) Security Guard III; ten (10)


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ADA VI; one (1) Driver IV; one (1) Buyer II; fourteen (14) ADA IV; and six
(6) ADA III.

The non-legal personnel shall have the same salaries and benefits as that
of their counterparts in the Office of the Solicitor General.

The salaries, benefits and privileges of the personnel of the OGCC
granted under this Act shall automatically be increased to keep in step with any
corresponding increase in salaries and privileges subsequently granted to their
respective counterparts in the judiciary, the Office of the Solicitor General and
the Court of Appeals.

SEC. 7. Personnel benefits and privileges — Provisions of other laws to
the contrary notwithstanding, and subject to availability of funds, the OGCC
may provide its employees the following benefits:

(a) Health care services through a health maintenance organization
(HMO).

(b) Accident insurance for all employees for approved travels while in the
performance of official duties;

(c) Provided the efficiency of the service is not prejudiced, scholarships
for the deserving employees on official time to upgrade their knowledge and
skills: Provided further, That scholars under this provision shall be selected on

the basis of merit as determined by competitive examination; and


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(d) A Provident Fund which shall consist of, but not be limited to
contributions made by the OGCC and by its employees;

(ec) Reimbursement of registration fees and expenses for trainings and
seminars, Mandatory Continuing Legal Education fees and professional license
fees.

SEC. 8. Other Benefits — Provisions of other laws to the contrary
notwithstanding, the legal personnel of the OGCC are authorized and shall
continue to receive allowances and honoraria from government corporations
which shall not exceed One Hundred Percent (100%) of their annual basic
salary. The employees of the OGCC may likewise be extended such benefits
and privileges as are given to the employees of government corporations.

SEC. 9. Retirement Benefits — Any law to the contrary notwithstanding,
and consistent with Section 4 of this Act granting them the same retirement
benefits and privileges of their counterparts in the judiciary, the retirement
benefits of the GCC, DGCC, AGCC, GCA IV and GCA III shall be
automatically increased whenever there is an increase in the salaries and
allowances of the same positions from which he or she retired.

SEC. 10. Attorney’s Fees and Special Assessment — The OGCC is
authorized to receive twenty percent (20%) of the money claims collected by, or
awarded or adjudged to government corporations, in addition to the attorney’s
fees awarded by a court, tribunal, or panel, including awards or judgments,

stipulated under court-approved compromise agreements. The OGCC is hereby


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authorized to use such awards and attorney’s fees to meet contingencies,
obligations and undertakings or for employee benefits and incentives, necessary
or proper to promote efficiency in the service as determined by the GCC.

The GCC is likewise authorized to make special assessments upon
government corporations and to disburse and use the same for such
contingencies, obligations and undertakings, and to provide for employees’
benefits and incentives allowed under the law.

Attorney’s fees and special assessments shall be deposited in an
authorized government depository and shall be made available for expenditure
without the need for a cash disbursement ceiling for purposes of meeting
obligations and contingencies, upgrading facilities and equipment, granting of
employees’ benefits and incentives and defraying such other expenses not
provided for in the General Appropriations Act subject to accounting and
auditing procedures.

SEC. 11. Franking Privilege — All official matters and telegrams of the
OGCC addressed for delivery within the Philippines shall be received,
transmitted and delivered free of charge.

SEC. 12. Appropriations — For the initial operating expenses of the
Office of the Government Corporate Counsel to carry out the mandate of this
Act, so amount is hereby appropriated from the Organizational Adjustment

Fund on the year this Act is approved. Thereafter, OGCC shall submit to the

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Department of Budget and Management its proposed budget for inclusion in the
annual General Appropriations Act.

SEC. 13. Implementing Rules and Regulations ~ Within ninety (90) days
from the approval of this Act, the Secretary of Justice and the Government
Corporate Counsel, in consultation with the Secretary of the Budget and
Management, or their respective authorized representatives, shall promulgate
the necessary rules and regulations for the effective implementation of this Act.

SEC. 14. Repealing Clause — All laws, decrees, rules and regulations
inconsistent with the provisions of this Act are hereby repealed or amended
accordingly.

SEC. 15. Separability Clause — If any of the provisions of this Act is
declared invalid or unconstitutional, the provisions not affected thereby shall
continue to be in full force and effect.

SEC. 16. Effectivity — This Act shall take effect after fifteen (15) days
from its publication in the Official Gazette or in a national newspaper of general
circulation.

Approved,

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