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

Fifteenth Congress
First Regular Session

5251

HOUSE BILL NO.

Introduced by Rep. Reynaldo V. Umali

EXPLANATORY NOTE

‘The welfare, rights and interests of government owned and
controlled corporations, their subsidiaries, other corporate offsprings,
inctuding government acquired asset corporations, government corporate
entities and government instrumentalities with corporate powers,
government financial institutions, and other government entities,
agencies, and offices (collectively called GOCC’s) have always been of
paramount importance. Their contribution to the country’s economy has
been very substantial in the last decade. The State, therefore, is
interested in protecting these GOCC’s and in promoting their welfare.

Over the years, the Office of the Government Corporate Counsel
(OGCC) has been in the forefront in protecting the legal interests of these
GOCCs. Executive Order 292 or the 1987 Administrative Code mandates
this Office to serve as the GOCCs’ statutory counsel and principal law
office. As such, the law requires the OGCC to safeguard their clients’
legal interests in a competent, speedy and adequate manner consistent
with its duty to uphold justice under the rule of law.

The steady increase in the number of these GOCCs lately has
resulted in the increase in the number of requests for legal advice and
cases for representation in courts and various tribunals being responded
to and handled by the OGCC apart from its performance of other
functions.

To efficiently and effectively address the expanding needs of these
GOCCs, there is, therefore a need to strengthen the OGCC by re-defining,
expanding, strengthening, rationalizing and further professionalizing it
as an organization and upgrading the service benefits available to its


lawyers and personnel to make them committed in providing excellent
and professional service to the country.

For these reasons, the approval of this proposed bill is earnestly
sought.

CONG. REYNALDO V, UMALI


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

FIFTEENTH CONGRESS
FIRST REGULAR SESSION

HOUSE BILL NO. _ 5251

Introduced by Rep. Reynaldo V. Umali

AN ACT TO STRENGTHEN THE OFFICE OF THE GOVERNMENT
CORPORATE COUNSEL, BY RE-DEFINING, EXPANDING
STRENGTHENING, RATIONALIZING AND FURTHER
PROFESSIONALIZING ITS ORGANIZATION, UPGRADING EMPLOYEE
BENEFITS AND APPROPRIATING FUNDS THEREFOR

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

SEC. 1. Declaration of Policy - It shall be the State’s policy to
protect and promote the welfare, rights and interests of government
owned and controlled corporations, their subsidiaries, other corporate
offsprings, including government acquired asset corporations,
government corporate entities and government instrumentalities with
corporate powers, government financial institutions, and other
government corporate entities, agencies and offices, referred here as
GOCCs.

Toward this end, the State shall require the improvement of legal
services in the government to efficiently and effectively address the
expanding needs of these GOCCs in accordance with its initiative
towards an improved fiscal management and good corporate governance.

SEC. 2. Jurisdiction and Mandate - Any law to the contrary
notwithstanding, the Office of the Government Corporate Counsel
(OGCC) shall be the legal counsel and principal law office of all GOCCs.
All GOCCs shall refer to the OGCC the following:

(a} All legal questions for opinion and advice;

(b) Before their execution, all contracts for review; and,

(c) All cases for representation before regular courts, quasi-judicial
bodies, administrative agencies and arbitral tribunals, provided
that, the Government Corporate Counsel (GCC) may thereafter



authorize the GOCCs’ legal department as collaborating counsel
to handle cases, as the urgency or expediency of circumstances
may warrant.

In addition, the OGCC shall perform the following special
functions:

(a) Conciliate, mediate, act as hearing officers or adjudicate all
disputes or controversies exclusively between GOCCs;

(b) Exercise control and supervision over the legal departments of
all GOCCs;

(©) Approve the engagement of private lawyers by the GOCCs;

(d) Be detailed or assigned to GOCCs upon their request, provided
that, the GCC approves the assignment or designation,
including attendance in meetings requested by GOCCs;

{e) Investigate and, in appropriate cases, hear administrative
disciplinary cases involving all lawyers, officials and employees
of GOCCs upon the latter’s request and recommend
appropriate administrative or disciplinary sanctions;

() Conduct periodic performance audit of the in-house lawyers or
legal departments of the GOCCs and to recommend appropriate
actions to GOCCs;

{g) Require the in-house lawyers or legal departments of GOCCs to
submit periodic reports of work performed and/or accomplished
and to supervise and control the necessary legal action;

(h) Conduct research and/or submit position papers on
novel/important questions or issues affecting GOCCs;

(i) Conduct fact-finding and preliminary investigation in
appropriately referred cases;

() Enforce the Property Insurance Law pursuant to Republic Act
656, as amended by Presidential Decree 245, in domestic or
international transactions;

(k) Act as corporate officers of GOCCs upon their request;

()) Be assigned as members of technical working groups, bids and

awards: committee, tasks force and other committees in

relation toGOCC projects;

(m)Represent the OGCC in the Board of GOCCs and management

committees; and such other additional works as may be
required by GOCCs.

The OGCC shall be an independent and autonomous office
attached to the Department of Justice. All opinions and issuances of the
OGCC shall be binding on all GOCCs.

SEC. 3. Expansion and Upgrading of Positions - The GCC shall have
a cabinet rank and the same prerogatives, salary, allowances, benefits


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 benefits and privileges
of an Associate Justice of the Court of Appeals.

No person shall be appointed GCC, DGCC or AGCC unless he/she
is a natural-born citizen of the Philippines and, for at least ten (10) years,
has been engaged in the practice of law in the Philippines. The number,
rank, qualifications for appointment, salary, allowances, retirement and
other benefits and privileges of the other members of the legal staff shalt
be as follows:

{a) Twenty (20) Government Corporate Attorney IV (GCA IV) who
shall have the rank, salary, allowances, retirement benefits and
privileges of a Regional Trial Court Judge. No person shall be
appointed GCA IV unless he/she is a natural-born citizen of the
Philippines and, for at least eight (8) years, has been engaged in
the practice of law in the Philippines;

(b) Twenty (20) Government Corporate Attorney III (GCA IM) who
shall have the rank, salary, allowances, retirement benefits and
privileges of a Metropolitan Trial Court Judge. No person shall
be appointed GCA III unless he/she is a natural-born citizen of
the Philippines and, for at least five (5} years, has been engaged
in the practice of law in the Philippines;

{c) Twenty (20) Government Corporate Attorney II (GCA Il) who
shall have the rank, salary, allowances, retirement and benefits,
and privileges of a Municipal Trial Court Judge in Cities. No
person shall be appointed GCA II unless he/she is a natural-
born citizen of the Philippines and, for at least four (4) years,
has been engaged in the practice of law in the Philippines;

(d) Twelve (12) Government Corporate Attorney I (GCA I) who shall
have the rank, salary, allowances, retirement benefits and
privileges of a Municipal Trial Court Judge. No person shall be
appointed GCA I unless he/she is a natural-born citizen of the
Philippines and, for at least three (3) years, has been engaged in
the practice of law in the Philippines;

‘The GCC, DGCC and AGCC shall be appointed by the President of
the Philippines. The other members of the legal staff and administrative
personnel shall be appointed by the GCC. Appointments of the DGCC,
AGCC and other members of the legal staff shall be deemed permanent
upon compliance with the prescribed qualification standards.


The administrative structure of the OGCC shall be organized into
the Finance and Accounting Services, the Human Resource and
Management Services, the Case and Records Management Services, the
Library Management and Information Technology Services and the
Property and Supply Services. The legal and non-legal staff 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 and benefits without necessity of new appointment.

SEC. 4. Compensation - The basic monthly compensation of the
OGCC employees shall be as follows:

Position Salary Grade
From To
Government Corporate Counsel 30, 3
Deputy Government Corporate Counsel 29-30
Assistant Government Corporate Counsel 29 30
Government Corporate Attorney IV 28 «29
Government Corporate Attorney Ill 2728
Government Corporate Attorney II 2602-27
Government Corporate Attorney 1 25 26

‘The non-legal personnel shall have the same compensation as that
of their
counterparts in the Office of the Solicitor General and Court of Appeals.

The salaries and privileges of the personnel of the OGCC granted
under this Act may further be increased to match any corresponding
increase in salaries and privileges subsequently granted to their
respective counterparts in the judiciary.

SEC. 5. Personnel benefits and privileges - Provisions of other laws
to the contrary notwithstanding, the OGCC may provide its employees
the following benefits:

I. Health care services through a health maintenance
organization. Expenses for the mandatory medical annual
check-up of the GCC, the DGCC and the AGCC shall be for
the account of the office.

Il. Accident insurance for all employees to be procured by the
office at its own expense during travels while in the
performance of official duties;


Il. Without prejudice to the efficiency of the service,
scholarships for deserving employees on official time and at
the expense of the office to upgrade their knowledge and
skills; provided that, scholars under this provision shall be
selected on the basis of merit as determined by competitive
examination;

IV. A provident fund which shall consist of, but not be limited to
contributions made by the office and by its lawyers and
employees to a common fund for the payment of benefits to
such lawyers or employees or their respective
beneficiaries/heirs.

SEC. 6, Seminar and other Professional Fees - Subject to
availability of funds, fees for relevant seminars, as well as professional
membership fees for lawyers, registration fees and related miscellancous
expenses incurred in completing the mandatory continuing legal
education shall be borne by the office. Professional membership,
registration fees including those for mandatory continuing professional
education, and related miscellaneous expenses of other employees
holding positions for which a professional license is required by the
office, shall also be borne by the OGCC.

SEC. 7. Transportation Benefits - Subject to availability of funds,
employees shall be provided with contracted transportation services until
such time that the office can procure additional motor vehicles for this
purpose.

SEC. 8. Other Benefits - Provisions of other laws to the contrary
notwithstanding, the legal staff of the OGCC are allowed to receive
allowances and honoraria from the GOCCs. Employees of the OGCC may
likewise be extended such benefits and privileges as are given to the
employees of their clients.

When the exigency of the service so requires, any member of the
legal staff may be designated by the GCC to act in concurrent capacity as
corporate officer of, or assigned to perform special or additional tasks in,
any of the GOCCs and by virtue of such designation or assignment,
receive such additional compensation and privileges as may be granted
them by the concerned GOCC.

SEC. 9. Attomey's fees and Special Assessment. - The OGCC is
authorized to receive twenty percent {20%} of all the money claims
collected by, or awarded/adjudged to, GOCCs in addition to the
attorney’s fees awarded by a court, tribunal or panel, including


awards/judgments, stipulated under court-approved compromise
agreements. The OGCC is hereby authorized to use such awards and
attorneys fees to meet contingencies, obligations and undertakings, or for
employee salaries, allowances, other 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
GOCCs to similarly meet such contingencies, obligations and
undertakings, or to provide for employee salaries, allowances, other
benefits and incentives, as may be warranted or proper as determined by
the GCC.

Attorney’s fees and special assessments shall be deposited in an
authorized government depository as a trust liability and shall be made
available for expenditure without the need for a Cash Disbursement
Ceiling, for purposes of upgrading facilities and equipment, granting of
employces’ incentive pay and other benefits, and defraying such other
incentive expenses not provided for in the General Appropriations Act as
may be determined by the GCC. In both cases, the usual accounting and
auditing procedures shall apply.

SEC. 10. Special Allowance - The GCC, DGCC, AGCC and other
members of the legal staff may be granted special allowances in such
amounts to be determined by the GCC to implement the salary increase.
The grant of special allowances shall be implemented uniformly in such
amounts and up to the extent only that can be supported by the funding
source specified in Section 11 hereof: Provided, That such said special
allowance shall not exceed One Hundred Percent (100%) of their basic
salary as provided under the Salary Standardization Law (Republic Act
6758).

SEC. 11. Funding - The funds required for the implementation of
this Act including employee benefits shall be taken from:

I. The Twenty percent (20%) share of the money claims
collected or awarded in judgments in favor of GOCCs and all
attorney's fees authorized to be received by the OGCC
pursuant to this Act and Executive Order 292 or the Revised
Administrative Code of 1987;

Il. Special assessments made by the GCC upon GOCCs; and

Il. Other revenues, savings, fees generated and collected and
donations received by the OGCC.


SEC. 12. 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.

SEC. 13. Appropriations - The amount needed for employces’
salaries, mandatory allowances and benefits under other laws and office
expenses and capital outlay shall be appropriated in the budget of the
OGCC under the annual General Appropriations Act.

SEC. 14, Implementing Rules and Regulations -Within sixty (60)
days from the approval of this Act, the GCC, in consultation with the
Secretary of Justice and Secretary of Budget and Management, shall
promulgate such rules and regulations as may be necessary to carry out
the provisions of this Act.

SEC. 15. Repealing Clause- Provisions of Executive Order 292 or
the Revised Administrative Code of 1987, as amended, Executive Order
878 dated March 4, 1983, Presidential Decree 1415 dated June 9, 1978,
Republic Act 6000 dated August 4, 1969 and other pertinent laws, rules
and regulations shall remain in force and effect unless otherwise
contrary or inconsistent with the provisions of this Act.

SEC, 16, Separability Clause -If any of the provisions of this Act is
declared invalid or unconstitutional, the provisions not affected thereby
shall continue to be in full force and effect.

SEC. 17. Bffectivity - This Act shall take effect after fifteen (15)
days from its publication in a national newspaper of general circulation.

Approved,