SIXTEENTH CONGRESS

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REPUBLIC OF THE PHILIPPINES ) { 14 st ne

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HOUSE OF REPRESENTATIVES %,, ‘

Second Regular Session

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

A734

EXPLANATORY NOTE

House Bill No.

The State has a right to recover from public officials or employees, as well as their
transferees or nominees, properties which were not lawfully acquired by them. Republic Act
(R.A.) No. 1379 aims to enforce this right of the State.

However, while R.A. No. 1379 provides a procedure for forfeiture to be followed when said
public officials or employees amass, accumulate, or acquire unexplained wealth, and
imposes upon them the penalty of forfeiture of the properties unlawfully acquired, said law
does not criminalize their acts of unlawful acquisition of said properties. Actions brought
Under R.A. No. 1379 are classified as civil actions in rem directed at the assets illegally
‘acquired, and do not pass upon the criminal liability of the public officer or employee who
acquired them, Thus, even if an economic penalty is imposed and the further use of the
properties seized is prevented, said public official or employees remains, in the eyes of the
law, not guilty of any crime, and is not made to suffer any penalty.

With the enactment of this bill into law, an effective deterrent will be set up against the
acquisition of public officers and employees of ill-gotten wealth. The criminalization of illicit
enrichment will add more “teeth” to the law, because the threat of imprisonment and
payment of fines will dissuade public officers and employees from amassing wealth at the
expense of the public.

Considering all the foregoing, approval of this bill is earnestly sought.



SIXTEENTH CONGRESS )
REPUBLIC OF THE PHILIPPINES )
Second Regular Session )

HOUSE OF REPRESENTATIVES

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

House Bill No. _ 4734

AN ACT
PENALIZING THE ILLICIT ENRICHMENT OF PUBLIC OFFICIALS AND EMPLOYEES
FOR THEIR ACQUISITION OF PROPERTIES THROUGH UNLAWFUL MEANS

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

Section 1. Short title. This Act shall be known as the “Illicit Enrichment Act of 2014”.

Section 2. Declaration of policy. It is the declared policy of the State that public office is a
public trust. Public officers and employees must, at all times, be accountable to the people
and serve them with utmost responsibility and integrity

Section 3. Definition of terms. As used in this Act, the term:

(a) "Legitimately acquired property” means any real or personal property, money, salary,
business interest or securities which the public officer or employee has, at any time,
acquired by sale, donation, inheritance or other mode of acquisition before his becoming a
public officer or employee, or any property already pertaining to him when he qualified for
public office or employment, and the income or fruits from said properties. It shall not
include:

4. Property unlawfully acquired by the public officer or employee but its ownership is
concealed or recorded in the name of, or held by, the public officer or employee's
spouse, ascendants, descendants, relatives, or any other person.

2. Property unlawfully acquired by the public officer or employee but transferred by
him to another person or persons.

(b) “Unlawful acquisition” shall refer to the acquisition by a public officer or employee of
funds or property which is manifestly out of proportion to his salary as such public officer or
employee and tohis other lawful income and the income from legitimately acquired
property. It shall also include those properties which are not legitimately acquired as defined
under paragraph (a) of this Section.

Section 4. Unlawful acquisition of property. It shall be unlawful for any public officer or
employee to directly or indirectly acquire, possess, receive, use, benefit, or otherwise enjoy,
real or personal properties, money, assets, business interests, or securities, within or outside
of the Philippines, which amount is manifestly out of proportion to his salary as such public
officer or employee and to his other lawful income and the income from legitimately acquired
property. It shall also be unlawful to knowingly acquire properties which are not legitimately
acquired as defined under paragraph (a) of the preceding Section. It shall also be unlawful
for any public officer or employee to transfer or convey, directly or indirectly, any interest in
said properties to other person or entity. Such transfer or conveyance shall be void ab initio.


Section 5. Prohibition on private individuals. It shall be unlawful for any private individual to
directly or indirectly acquire, possess, receive, use, benefit, or otherwise enjoy, real or
personal properties, money, assets, and securities, within or outside of the Philippines, from
a public officer or employee knowing the same to have been illegally acquired by the latter.

Section 6. Prima facie presumptions. (1) Whenever any public officer or employee has
acquired during his incumbency funds or properties which are manifestly out of proportion to
his salary as such public officer or employee, and to his other lawful income and the income
from legitimately acquired property, said funds or properties shall be presumed prima facie
to have been unlawfully acquired

(2) Failure of a public officer or employee to file a Statement of Assets, Liabilities and
Net Worth within the period prescribed by law from date of assumption to office shall be
prima facie evidence that said public officer or employee has no property, asset or business
interest to declare at the beginning of his public service or without prejudice to the penalties
that may be imposed under the law. The failure to file a Statement of Assets, Liabilities and
Net Worth for any particular year after assumption to office shall be prima facie evidence that
the public officer or employee has no other information to declare outside of his declaration
in his prior submissions without prejudice to any liabilities that may have been incurred under
existing laws.

Section 7. Penalties. Any public officer or employee who shall illegally enrich himself
through the unlawful acquisition of the properties above-mentioned shall be penalized with
imprisonment of not less than six years and one day but not more than tweive years, or a
fine not exceeding twice the amount of the property illegally acquired, or both such
imprisonment and fine, perpetual absolute disqualification from public office, and
confiscation or forfeiture in favor of the government of the unlawfully acquired properties.

The penalty of imprisonment for not less than one year and one day to not more than six
years, or a fine not exceeding twice the amount of the property conveyed or transferred,
shall be imposed upon any private individual who shall knowingly acquire, possess, receive,
use, benefit from, or otherwise enjoy, properties unlawfully acquired by any public officer or
employee.

Section 8. Provisional remedy. Upon the filing of a valid information before a court of
competent jurisdiction, a writ of preliminary attachment may be issued on the grounds
provided under the Rules of Court to preserve and prevent the conveyance or dissipation of
the unlawfully acquired properties. The prosecution may likewise avail of the appropriate
remedies to inform government agencies of the pendency of the case and prevent
conveyance or dissipation.

Section 9. Separability clause. If for any reason, any section or provision of this Act is
declared to be unconstitutional or invalid, the other sections or provisions hereof which are
not affected thereby shall continue to be in full force and effect.

Section 10. Repealing clause. All laws, decrees, orders or rules and regulations and other
issuances which are inconsistent with the provisions of this Act are hereby repealed,
amended or modified accordingly.

Section 11. Effectivity. This Act shall take effect fifteen (15) days after its publication in two
(2) national newspapers of general circulation

Approved,