Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City

Eighteenth Congress
First Regular Session

House Bill 5078

Introduced by: Hon. Jericho Jonas B. Nograles

EXPLANATORY NOTE

The Office of the Government Corporate Counsel (OGCC) acts as 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 offspring's as well as
economic zones, state universities and water districts (which shall all hereinafter be
referred as collectively as “GOCCs" for brevity) all over the country. Its 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 mandate 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, 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 entrusted with the legal concerns of
the GOCCs need to be properly equipped and be adequately compensated to effectively
fulfil their duties and responsibilities.

In line with the principle of the 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, position, 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 expeditious approval of this proposed bill is

earnestly sought.

JERICHO JONAS B. NOGRALES


Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City

Eighteenth Congress
First Regular Session

House Bill 5078

Introduced by: Hon. Jericho Jonas B. Nograles

AN ACT
STRENGTHENING THE OFFICE OF THE GOVERNMENT CORPORATE COUNSEL
BY RATIONALIZING AND FURTHER PROFESSIONALIZING ITS ORGANIZATION,
UPGRADING POSITIONS 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.”

SECTION 2. Declaration of Policy. — It shall be the policy of the State to protect and
promote the welfare, rights and interest of government-owned or controlled corporation
(GOCCs), government financial institution (GFls), 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).

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.

SECTION 3. Power, Jurisdiction and Mandate. — Any law to the contrary notwithstanding,

the Office of the Government Corporate Counsel ("OGCC’) shall be the statutory counsel
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 tribunal, 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:

d. Exercise control and supervision over the legal departments of all
government corporations and conduct periodic performance audit of the
in-house lawyers or legal departments of government corporations and
to recommend appropriate actions to them;

e. Conciliate, mediate, act as hearing officers or adjudicate all disputes on
controversies exclusively between government corporations;

f. 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;

g. Conduct fact-finding and preliminary investigation in appropriately
referred cases;

h. Act as Corporate Secretary or any other officer of government
corporations upon their request;

i. Be assigned as members of technical working groups, bids and awards
committee, task force and other committees in relation to government
corporation's projects;

j. 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;

k. Represent the OGCC in the Governing Board and management
committees of government corporations;

|. Approve the engagement of private lawyers by the government
corporations; and

m. Perform such other functions necessary in the interest of the service.

SECTION 4. Expansion and Upgrading of Positions. —

a. 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. He/She 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, DGC, or AGCC unless he/she 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.

b. 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
he/she 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;

2. The present fourteen (14) Government Corporate Attorney III
(“GCA II’) 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 he/she
is anatural-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 citizen 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 | ("GCA I")
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.


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.

SECTION 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 and
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 Secretariat
and Legal Support Service, Finance and Accounting Service, Human Resource and
Management Service, Case and Records Management Service, Library Management
and Information Technology Service, Corporate Planning Service 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 thereafter occupy
and discharge the duties and functions of the upgraded positions and receive the
corresponding salary, benefits and privileges without necessity of the new appointments.

SECTION 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 3
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 | 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 Ill; one (1) Accountant IV; four (4) Supervising Administrative
Officers; one (1) Planning Officer IV; eleven (11) Administrative Officer (AO) V; one (1)
Librarian IV; one (1) Information Technology Officer; one (1) Computer Main Technician;


one (1) Librarian III; four (4) AOs Ill; three (3) AOs Il; twelve (12) Senior Administrative
Assistant (ADAS) VI; one (1) Planning Analyst Il; twenty (20) Administrative Assistant
(ADAS) VI; one (1) Computer Operator II; twelve (12) ADAS V; twelve (12) ADAS V;
twelve (12) ADAS Ill; one (1) Bookkeeper III; three (3) Records Officer |; fourteen (14)
ADAS II; five (5) ADAS |; one (1) Chauffeur IV; one (1) Security Guard Ill; ten (10) 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.

SECTION 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:

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

Il, Accident insurance for all employees for approved travels while in the
performance of official duties;

Ill, 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

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

V. Reimbursement of registration fees and expenses for training and
seminars, Mandatory Continuing Legal Education fees and professional
fees.

SECTION 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.


SECTION 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 position from which he or she retired.

SECTION 10. Attorney's Fees and Special Assessment. - The OGCC is authorized to
receive twenty percent (20%) of the money claims collected by, or awarded/adjudged to
government corporations, in addition to the attorney's fees awarded by a court, tribunal,
or panel, including awards/judgements, stipulated under court-approved compromise
agreements. The OGCC is hereby authorized to use such awards and attorney's fees to
meet contingencies, obligations and undertakings and/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.

SECTION 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.

SECTION 12. Appropriations. - The amount needed for the employees’ salaries,
mandatory allowances and benefits under other laws, maintenance and other operating
expenses and capital outlay shall be appropriated in the budget of the OGCC under the
annual General Appropriations Act.

SECTION13. Repealing Clause. - All laws, decrees, rules and regulations inconsistent
with the provisions of this Act are hereby repealed or amended accordingly.

SECTION 14, Separability Clause. — If any of the provisions of this Act is declared invalid
or unconstitutional, the provision not affected thereby shall continue to be in full force and
effect.

SECTION 15. 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.