Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City, Metro Manila

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TWENTIETH CONGRESS + TE pd
First Regular Session ‘BY
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House Bill No. 366

Introduced by Representative Richard I. Gomez, DPA

EXPLANATORY NOTE

In the 19th Congress, much effort was allocated in investigations related to confidential
and intelligence funds. In the course of these investigations, it was revealed that confidential
and intelligence funds were provided to various agencies including those that do not have clear
mandates related to national security, peace and order and intelligence gathering.

As the name suggests, confidential and intelligence funds do not undergo the standard
auditing procedures as other budget items. This therefore Icaves a wide range of activities that
could be improperly financed using such funds. To avoid such a public accountability issue,
this house bill proposes to limit the allocation of confidential and intelligence funds only to
those agencies with clear legal mandates related to national security, peace and order and
intelligence gathering.

Whereas confidential and intelligence funds are definitely required and justified, we
must have policies that safeguard the expenditure of public funds, as well

In view of the foregoing, the passage of this bill is earnestly sought.

VT~

ICHARD I. GO ZN


Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City

TWENTIETH CONGRESS
First Regular Session

House Bill No. 366

Introduced by Representative Richard I. Gomez, DPA

AN ACT
PROHIBITING THE ALLOCATION OF CONFIDENTIAL AND INTELLIGENCE
FUNDS TO AGENCIES WITHOUT MANDATES RELATED TO NATIONAL
SECURITY, PEACE AND ORDER AND INTELLIGENCE GATHERING

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

SECTION 1. Declaration of Policy. — The State recognizes the need for the allocation
and use of confidential and intelligence funds in government agencies with mandates that are
directly related to national security, law enforcement, and intelligence operations, and other
related critical functions requiring discretion. It is the policy of the State that the use of such
funds must be subject to stringent oversight, accountability, and transparency to ensure that
they are not misused, misappropriated, or diverted for unauthorized purposes. Further, it is the
policy of the State to maintain public trust in the use of public funds, protect the integrity of
government operations, and prevent corruption in the management of confidential funds.

SEC. 2. Definition of Terms. — For purposes of this Act:

a. Confidential funds- refers to the lump-sum amount released or disbursed to
civilian government agencies that are intended to support its mandate or
operations directly related to confidential programs for national security and
peace and order; and

b. Intelligence funds- refer to those related to intelligence information gathering
activities of uniformed and military personnel, and intelligence practitioners
that have direct impact to national security.


SEC. 3. Entitlement to Confidential and Intelligence Funds. ~ The allocation
Confidential and Intelligence funds shall be allocated only to agencies, departments, units with
mandates related to national security, peace and order, and intelligence gathering, namely:

a

Office of the President;

b. Office of the Vice President;

PRPORA ORS SE eH meee

Department of National Defense;

. Philippine National Police;
. Philippine Drug Enforcement Agency;

Department of the Interior and Local Government:

. Department of Justice;

Department of Finance- Bureau of Customs;
National Bureau of Investigation;
Department for Foreign Affairs;

. Civil Aviation Agency;

Department of Information and Communication Technology;

. Metro Manila Development Agency;

Department of Agriculture;
Department of Transportation;

. Philippine Coast Guard; and
|. other agencies with legal mandates related to national security.

Agencies with no such legal mandate shall not be granted Confidential and Intelligence

Funds.

SEC. 4. Separability Clause. ~ If any provision of this Act or the application thereof to.
any person or circumstance is declared invalid or unconstitutional, the remaining provisions of
this Act and the application of such provisions to other persons or circumstances shall not be
affected thereby.

SEC. 5. Repealing Clause. — All laws, decrees, orders, rules, and regulations or parts
thereof inconsistent with the provisions of this Act are hereby repealed or modified

accordingly.

SEC. 6. Effectivity. — This Act shall take effect fifteen (15) days after its publication in
the Official Gazette or in a newspaper of general circulation.

Approved,