FIFTEENTH CONGRESS_ ) = a
REPUBLIC OF THE PHILIPPINES —)
FIRST REGULAR SESSION )

HOUSE OF REPRESENTATIVES

Introduced by Representative Rufus B. Rodriguez and
Representative Maximo B. Rodriguez, Jr.

House Bill No., 2269
EXPLANATORY NOTE

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

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

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

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

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

RUFUS B. RODRIGUEZ

some EZ, JR.


FIFTEENTH CONGRESS =
REPUBLIC OF THE PHILIPPINES )
FIRST REGULAR SESSION )

HOUSE OF REPRESENTATIVES

Introduced by Representative Rufus B. Rodriguez and
Representative Maximo B. Rodriguez, Jr.

House Bill No,__2269

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

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

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

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

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


shall include consultancy, contract of services, management contract or similar
agreements or schemes.

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

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

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

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

Approved