, ' 
FIFTEENTH CONGRES OF THE 
) 
REPUBLIC OF THE PHILIPPINES ) 
First Regular Session 
SENATE 
1448 
S.No. __ _ 
Introduced by Senator JUAN MIGUEL F. ZUBIRI 
EXPLANATORY NOTE 
Notwithstanding the passage of a multitude of laws aimed at addressing and 
curbing corruption, the Philippines remains ever vulnerable to corruption and the 
concomitant evils that escort it. 
This, in turn, results in the pilferage of significant 
government resources. In fact, the Philippine Public Transparency Reporting Project 
boldly estimates that at least P280B of government funds is lost to corruption every year 
in the Philippines. This money could have otherwise been allocated and used for the 
country's educational, health, and other social services expenditures. 
The Philippines is often cited by various international surveys as a country where 
corruption plays a starring role in inhibiting foreign and domestic investments. 
Corruption erodes the country's competitive position, thereby impeding economic 
growth as well as SOCial well-being, 
For instance, the 2009 Corruption Perceptions 
Index of the Transparency International ranked the Philippines at 139th out of 180 
countries (rank 1 being the least corrupt country). This is an improvement from our 
141 s1 ranking in 2008, but a steady decline from our 2006 and 2007 rankings, which 
placed us at and 121 st and 131 st, respectively. 
Similarly, in a 2010 survey conducted by the Political and Economic Risk 
Consultancy on the most corrupt countries in Asia, the Philippines ranked 4th , next only 
to Indonesia, Cambodia and Vietnam. This indeed is deplorable considering that the 
• 
factor of corruption has become a critical international criterion for allocating scarce 
development aid resources, and countries will increasingly be judged by their actions in 
, combating corruption. 
Republic Act No. 1379 on asset forfeiture 'is an example of a good law that the 
Philippines has passed in its effort to curb public sector corruption, 
Indeed, asset 
forfeiture has been regarded as a potent anti-corruption tool, both locally and 
internationally, as it targets the very incentive for the commission of corrupt acts - i.e., 
the proceeds. By "following the money" and making it impossible for the perpetrator of 
corruption to avail of the benefits of his or her criminal act, the law, principally through 
the Office of the Ombudsman, hopes to disincentivize corruption. 
Unfortunately, a truly effective asset forfeiture mechanism is one that is not only 
actual and real, but is prompt. Any delay in the seizure of these target assets will 
1 


provide a window, no matter how narrow, for the same to be dissipated and placed 
beyond the reach of the law enforc~rs. At that point, the once potent tool that is asset 
forfeiture is immediately rendered inutile. 
The proposed legislation aims to aid the Office of the Ombudsman, he principal 
and constitutional anti-corruption law enforcement agency, maximize its ability to resort 
to asset forfeiture by enabling it to freeze assets in a more timely manner. The ultimate 
objective is to be able to freeze the proceeds even before they are dissipated and 
eventually lost. 
Thus, immediate approval of this Bill is earnestly requested. 
-----
~I 
UEL F. ZUBIRI 
2 


FIFTEENTH CONGRES OF THE 
) 
REPUBLIC OF THE PHILIPPINES } 
First Regular Session 
SENATE 
S. No. 1448 
Introduced by Senator JUAN MIGUEL F. ZUBIRI 
AN ACT 
STRENGTHENING THE FORFEITURE POWERS OF THE STATE, AMENDING FOR 
THE PURPOSE CERTAIN PROVISIONS OF REPUBLIC ACT NO. 1379, OTHERWISE 
KNOWN AS "AN ACT DECLARING FORFEITURE IN FAVOR OF THE STATE ANY 
PROPERTY FOUND TO HAVE BEEN UNLAWFULLY ACQUIRED BY ANY PUBLIC 
, 
OFFICER OR EMPLOYEE AND PROVIDING FOR THE PROCEEDINGS THEREFOR" 
Be it enacted by the Senate and House of Representatives of Philippines in Congress 
assembled: 
1 
SECTION 1. Section 2 of R.A. No.1379 is hereby amended to read as follows: 
2 
"SEC. 2. Filing of petition. - [Whenever 
any 
public 
officer 
or 
3 
employee has acquired during his incumbency an amount of property 
4 
which is manifestly out of proportion to his salary as such public officer or 
5 
employee and to his other lawful income and the income from legitimately 
6 
acquired property, said property shall be presumed prima facie to have 
7 
been unlawfully acquired.] The [Solicitor General] OFFICE OF THE 
8 
OMBUDSMAN, MOTU PROPRIO OR upon VERIFIED complaint by any 
9 
[taxpayer to the city or provincial fiscal who] PERSON shall conduct aN 
10 
[previous] inquiry similar to preliminary investigations in criminal cases TO 
11 
DETERMINE IF [and shall certify to the Solicitor General that] there is 
12 
reasonable ground to believe that there has been committed a violation of 
13 
this Act and the respondent is probably guilty thereof. IT L] shall file, in 
14 
the name and on behalf of the Republic of the Philippines, [in the Court of 
15 
First Instance of the city or province] WITH THE SANDIGANBAYAN OR 
16 
THE APPROPRIATE REGIONAL TRIAL COURT where said public 
17 
officer [or employee] resides or holds office, a petition for a writ 
18 
commanding said officer or employee to show cause why the property 
19 
aforesaid, or any part thereof, should not be declared property of the 
20 
State: Provided, That no such petition shall be filed AGAINST A 
21 
CANDIDATE within THE ELECTION PERIOD FOR WHICH HE/SHE IS 
22 
SEEKING ELECTORAL OFFICE [one year before any general election or 
23 
within three months before any special election]. 
24 
The resignation, dismissal or separation of the officer or employee 
25 
from his office or employment in the Government or in the Government-
26 
owned or controlled corporation shall not be a bar to the filing of the 
27 
petition [Provided, however, That the right to file such petition shall 
28 
prescribe after four years from the date of the resignation, dismissal or 
29 
separation or expiration of the term of the office or employee concerned, 
1 


1 
except as to those who have ceased to hold office within ten years prior to 
2 
the approval of this Act, in which case the proceedings shall prescribe 
3 
after four years from the approval hereof]." 
4 
SEC. 2. Insert new Sections 3, 4, and 5 to RA. No.1379, to read as follows: 
5 
"SEC. 3. PRESUMPTION. - FAILURE OF A PUBLIC OFFICER 
6 
OR EMPLOYEE TO 
FILE 
A STATEMENT OF 
ASSETS 
AND 
7 
LIABILITIES AND NETWORTH PURSUANT TO SECTION 8 OF R.A. 
8 
6713 WITHIN THIRTY DAYS FROM DATE OF ASSUMPTION TO 
9 
OFFICE SHALL BE PRIMA FACIE EVIDENCE THAT SAID PUBLIC 
10 
OFFICER OR EMPLOYEE HAS NO PROPERTY, ASSET OR BUSINESS 
• 
11 
INTEREST TO DECLARE AT THE BEGINNING OF HIS/HER PUBLIC 
12 
SERVICE. 
13 
14 
SEC. 4. PRIMA FACIE UNLAWFULLY ACQUIRED PROPERTY. 
15 
-
WHENEVER ANY 
PUBLIC 
OFFICER 
OR 
EMPLOYEE 
HAS 
16 
ACQUIRED DURING HIS INCUMBENCY AMOUNT OF PROPERTY 
17 
WHICH IS MANIFESTLY OUT OF PROPORTION TO HIS SALARY AS 
18 
SUCH PUBLIC OFFICER OR EMPLOYEE AND TO HIS OTHER 
19 
LAWFUL 
INCOME 
AND 
THE 
INCOME 
FROM 
LEGITIMATELY 
20 
ACQUIRED . PROPERTYSOURCES, SAID PROPERTY SHALL BE 
21 
PRESUMED 
PRIMA 
FACIE 
TO 
HAVE 
BEEN 
UNLAWFULLY 
22 
ACQUIRED. 
23 
24 
SEC. 5. FREEZE ORDER. - WHEN IT APPEARS UPON THE 
25 
FILING OF THE COMPLAINT PROVIDED FOR UNDER SECTION 2 OF 
26 
THIS ACT THAT AN UNLAWFULLY ACQUIRED PROPERTY OR 
27 
PROPERTIES EXIST AS DEFINED IN SECTION 4 HEREIN, THE 
28 
OMBUDSMAN MAY, MOTU PROPRIO OR UPON MOTION OF THE 
29 
COMPLAINANT, ISSUE A FREEZE ORDER ON THE AFORESAID 
30 
PROPERTY OR PROPER'TIES WHICH WILL BE VALID FOR NOT 
31 
MORE THAN SIX {6~ MONTHS." 
32 
SEC. 3. Section 3 of RA No. 1379 is hereby renumbered to Section 6. 
33 
SEC. 4. Section 4 of R.A. No. 1379 is hereby amended to read as follows: 
34 
"SEC.[4] 7. Period TO [for the] answer PETITION. -
The 
35 
respondent shall have a period of fifteen days FROM NOTICE within 
36 
which to present his answer." 
37 
SEC. 5. Section 5 of RA. No. 1379 is hereby renumbered to Section 8. 
38 
SEC. 6. Section 6 of RA. No. 1379 is hereby amended to read as follows: 
39 
"SEC. [6] 9. Judgment.- If the respondent is unable to show to the 
40 
satisfaction of the court that he has lawfully acquired the property in 
41 
question, then the court shall declare such property, forfeited in favor of 
42 
the State, and by virtue of such judgment the property aforesaid shall 
43 
become property of the State: Provided, That no judgment shall be 
44 
rendered within six months before any general election or within three 
45 
months before any special election. [The Court may, in addition, refer this 
2 


1 
case to the corresponding Executive Department for administrative or 
2 
criminal action, or both.]" 
3 
SEC. 7. Section 7 of R.A. No. 1379 is hereby amended to read as follows: 
4 
"SEC. [7]10. Appeal. - The parties may appeal from the judgment 
5 
of the SANDIGANBAYAN OR THE REGIONAL TRIAL COURT [Court of 
6 
First Instance] as provided in the Rules of Court for appeals in civil cases." 
7 
SEC. 8. Section 9 of R.A. No. 1379 is hereby amended to read as follows: 
8 
"SEC. [9] 12. Immunity. - The [Solicitor General] OMBUDSMAN 
9 
may grant immunity from criminal prosecution to any person who testifies 
10 
to the unlawful manner in which the respondent has acquired any of the 
11 
property in question in cases where such testimony is necessary to prove 
12 
violations of this Act." 
13 
SEC. 9. Section 10 of RA 1379 is hereby amended to read as follows: 
14 
"SEC. [10] 13. Effect of record of title. - The fact that any real 
15 
property has been recorded in the Registry of Property or office of the 
16 
Register of Deeds in the name of the respondent or of any person 
17 
mentioned in paragraphs (1) and (2) of subsection (b) of section one 
18 
hereof shall not prevent the rendering of the judgment referred to in 
19 
section EIGHT [six] of this Act." 
20 
SEC. 10. Section 11 of RA 1379 is hereby renumbered to Section 14. 
21 
SEC. 11. Section 12 of RA 1379 is hereby amended to read as follows: 
22 
"SEC. [12]15. Penalties. - Any public officer or employee who shall, 
23 
after the effective date of this Act, transfer or convey any unlawfully 
24 
acquired property shall be [repressed] PENALIZED with imprisonment for 
25 
a term OF not LESS THAN SIX [exceeding five] years AND ONE DAY 
26 
BUT NOT MORE THAN FIFTEEN YEARS, [or a fine not exceeding ten 
27 
thousand pesos, or both such imprisonment and fine] PERPETUAL 
28 
DISQUALIFICATION FROM PUBLIC OFFICE, AND CONFISCATION OR " 
29 
FORFEITURE IN FAVOR OF THE GOVERNMENT OF ANY PROHIBITED 
30 
INTEREST. [The same repression shall be imposed upon any person who 
31 
shall knowingly accept such transfer or conveyance.] 
32 
THE SAME PENALTIES SHALL BE IMPOSED UPON ANY 
33 
PERSON WHO SHALL KNOWINGLY ACCEPT SUCH UNLAWFUL 
34 
TRANSFER OR CONVEYANCE. ANY SUCH CONVEYANCE SHALL BE 
35 
VOID AB INITIO." 
36 
SEC. 12. Rules and Regulation. - The Ombudsman shall issue within ninety 
37 
(90) days after the approval of this Act, the necessary rules and regulation relating to 
38 
the administrative aspects of the provisions of this Act. 
39 
SEC. 13. Separability Clause - If for any reason, any section or provision of this 
40 
Act is declared to be unconstitutionpl or invalid, the other sections or provisions hereof 
41 
which are not affected thereby shall continue to be in full force and effect. 
42 
SEC. 14. Repealing Clause. - All laws, decrees, orders or rules and regulations, 
43 
and other issuances which are inconsistent with the provisions of this Act are hereby 
44 
repealed, amended or modified accordingly. 
3 


• 
1 
SEC. 15. Effectivity. -
This Act shall take effect fifteen (15) days after its 
2 
publication in two national newspapers of general circulation. 
3 
Approved, 
4