FOURTEENTH CONGRESS OF THE 
REPUBLIC OF THE PHILIPPINES 
F i t  Regdar Session 
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S E N A T E  
S. B. No. 
8 JUH 11 P 3 2 !  
INTRODUCED BY HONORABLE h4AR ROXAS 
EXPLANATORY NOTE 
The Philippine 'Veterans Affairs Office (PVAO) has reported that the total arrearages 
payable to Filipino veterans is estimated to have already accumulated to P21 billion as of the 
end of 2006. This does not include arrearages in old age pension, death pensions and 
educational benefits. Taking all these in consideration, total unpaid obligations of our 
government to war veterans and military retirees will stand at P26 billion. 
While these veterans have fought valiantly and bravely to preserve our counuy's 
independence and sovereignty, our government have been remiss in honoring our obligation 
to provide them and their surviving spouses and orphans adequate care, benefits, and other 
forms of assistance as mandated by Article XVI, Section 7 of the Constitution. While these 
veterans have fought valiantly despite most difficult conditions during World War 11, our 
government continues to fall short in giving due recognition to these sacrifices. 
It is incumbent upon us not only to settle OUT unpaid obligations, but also to ensure 
that the benefits and assistance rightly due to our vetereans and military retirees are 
provided for. Thus, this bill proposes to make use of the proceeds from the development, 
lease or use of government properties to provide the necessary funds to pay the veterans' and 
military retirees' pensions and benefits. Specifically, the government properties sough to be 
covered are: a) the former site of the Philippine Veterans Affairs Office (PVAO) at Arroceros 
Street, Ermita, Manila; b) the Veterans Memorial Medical Center in Quezon City; c) the 
Veterans Center in Taguig, Metro Manila; d) the properties given by the Japanese 
government to the Philippine government under the Reparations Agreement, including the 
Roppongi and Nampeidai properties in Tokyo and the Naniwa-cho and Obanoyam properties 
in Kobe; and e) other properties that may be identified by the Office of the President. 
It is high time that we recognize the contribution of our veterans and military retirees 
to the preservation of our country's independence. It is high time that we give honor and 
recognition where one is due, especially to our proud veterans. 
In view of the foregoing, early passage of this bill is earnestly requested. 


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INTRODUCED BY HONORABLE MAR ROXAS 
AN ACT 
PROVIDING FOR THE MANDATORY USE OF PROCEEDS FROM THE DEVELOPMENT, 
LEASE OR USE OF GOVERNMENT PROPERTIES FOR THE VETERAN'S PENSIONS AND 
BENEFITS 
Be it enacted by the Senate and the House of Representatives of the Philippines in Congress 
assem bled: 
Section 1. Declaration of Policy. - Consistent with the constitutional mandate to 
provide immediate and adequate care and benefits to war veterans, it is hereby declared the 
policy of the State to provide the necessary funds to pay the arrears in the veterans and 
military retirees' pensions and benefits and to ensure that all benefits and pensions will be 
continuously enjoyed by them. 
Section 2. Coverage. - This Act shall apply to the lease, development or use, as the 
case may be, of the following properties of the government: 
a. The former site of the Philippine Veterans Affairs Office (PVAO) at Arroceros 
Street, Ermita, Manila; 
b. The Veterans Memorial Medical Center in Quezon City: 
c. The Veterans Center in Taguig, Metro Manila; 
d. The properties given by the Japanese government to the Philippine government 
under the Reparations Agreement, including the Roppongi and Nampeidai properties in 
Tokyo and the Naniwa-cho and Obanoyam properties in Kobe; and 
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e. Other properties that may be identified by the Office of the President, as 
recommended by the Secretary of National Defense. 
SECTION 3, Utilization of Proceea’s for Veterans and Militaq Retirees’ Pensions and 
Benefits. - All proceeds from the lease, development, use or sale of the aforesaid properties 
shall be utilized’to fund pensions and benefits of veterans and military retirees, whether in 
arrears or due for payment by the national government; provided rhar, any shortfall in 
payment of pensions and benefits to veterans and military retirees shall continue to be 
assumed by the national government from other sources, and that this Act is not intended to 
be in full satisfaction of said pensions and benefits: provided, furher, that all proceeds and 
receipts from the lease, development, use or sale of said properties except operational 
expenses, shall be remitted directly to any government bank as the depository bank, and 
managed by the Philippine Veterans Affairs Office for purposes of distribution of pensions 
and benefits directly to war veterans and military retirees, and for no other purpose. 
SECTION 4. ImpIementing Agencies. - For purposes of implementing the provisions 
of this Act, the Privatization Council created under Executive Order 323 is hereby 
empowered to direct, supervise and coordinate private sector participation in the lease, 
development, use or sale of the above properties, in order to generate maximum cash 
recovery for the benefit of war veterans and military retirees. 
The Privatization and Management Office under the Department of Finance is hereby 
authorized to implement the actual marketing for the lease, development, use or sale of the 
above properties after securing the prior approval of the Council; to execute and deliver, on 
behalf of the national government, the deeds, contracts and other instruments as may be 
necessary or appropriate to effect the lease, development or use of said properties; to secure 
possession of and conserve the same; to engage external expertise as may be necessary in the 
fulfillment of its tasks; to submit periodic reports to the Privatization Council and to the 


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Philippine Veterans’ Affairs Office on the status of private sector participation in the lease, 
development or use of said properties; and to adopt such rules and regulations as may be 
necessary to effect the provisions of this Act. 
SECTION 5. lmplementing Rules. - The Department of National Defense, through the 
Philippine Veterans’ Affairs Office, the Department of Finance, and the Privatization 
Council shall promulgate the implementing rules and regulations for this Act within six 
months after enactment hereof. 
SECTION 6. Separability Clause. - If, for any reason, any portion or provision of this 
Act shall be declared unconstitutional, other parts or provisions hereof which are not 
affected thereby shall continue to be in full force and effect. 
SECTION 7. Repealing Clause. - All other laws, decrees, executive orders, rules and 
regulations and other issuance or portions thereof inconsistent with the provisions of this 
Act are hereby repealed or modified accordingly. 
SECTION 8. Effictiviry. - This Act shall take effect fifteen (15) days following the 
completion of its publication in two national newspapers of general circulation. 
Approved, 
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