FOURTEENTH CONGRESS OF THE 
) 
REPUBLIC OF THE PHILIPPINES ) 
S m d  Regular Session 
) 
9 
ijhy 27 fis 50 
SENATE 
s. NO. - 
Introduced by Senator Antonio “Sonny” F. Trillanes IV 
EXPLANATORY NOTE 
Article 2, Sections 27 and 28 of theConstitution provides: 
SEC. 27. The State shall maintain honesty and integrity in the public service 
and take positive and effective measures against graft and corruption. 
SEC. 28. Subject to reasonable conditions prescribed by iaw, the State 
adopts and implements a policy of full public disclosure of all its 
transactions involving public interest. 
Issues on graf% and corruption such as the recent reveiations of the w-orid Bank regarding 
the corrupt practices in road projects by contractors at the Department of Public Works 
and Highways reinforces the need for the public to know how the taxes they paid are 
being s p t .  
The government spends millions, if not billions, of pesos a year, yet we do not have any 
idea on what the management practices of these contractors are nor what is indicated in 
their financial statements, but their vay existence depend on taxpayers money. 
This bill requires companies that are privately owned and receive vast majority of their 
revenues from taxpayers’ money to disclose the salaries of their top officers. 
Tranvrenv is a basic element of good governance, and OUT people need to know 
whether or not pubiic funds, which mostiy are sourced &om their taxes, are being used to 
unjustly enrich contractors. 
In view of the foregoing, immediate passage of this bill is eamtly sought. 
Senator 
! 
1 


1 
2 
3 
4 
5 
6 
7 
8 
9 
10 
11 
12 
13 
14 
15 
16 
17 
18 
19 
20 
21 
FOURTEENTH CONGRESS OF THE 
) 
“.Fa 
REPUBLIC OF TEE PHILIPPEVES 
) 
Sewn& Rqnkar Session 
9 
27 
A? 51 
SENATE 
Introduced by Senator Antonio “Sonny” F. TriUanes IV 
AN A€T 
REQUIRING CERTAIN RECIPIENTS OF GOVERNMENT FUNDS TO DISCLOSE 
THE NAMES AND TOTAL COMPENSATION OF THEIR MOST HIGHLY 
COMPENSATED OFFICERS AND FQR OTEER PflRPOSES 
Be it enacted by the Senate and the House of Representatives ofthe Philippines in Congress 
assembled. 
SECTION 1. ,%oft Title. -This Act may -be cited as the “Contractor Accountabiiity Act 
of2009”. 
SEC. 2. Befi~ition of T m s .  -As used in Chis Act, the term - 
(1) “Entity” - the term “entity” - 
(A) includes - 
(i) 
a corporation; 
(ii) an association; 
(iii) a partnership; 
(iv) a iimited Iiabiiity company; 
(v) a limited liability partnership; 
(vi) any other legal business entity; 
(viij any other grantee or cmtrwtor that is not included in Subparagraph f2j 
or (3); and 
(viii) Local Government Units; and 
(B) does not include - 
(i) 
(iij a Government employee; or 
(iii) a grant or contract of a nature that could be reasonably expected to cause 
damage to national security. 
an individual recipient of Government assistance; 
2 


1 
2 
3 
4 
5 
6 
7 
8 
9 
10 
11 
12 
13 
14 
15 
16 
17 
18 
19 
20 
21 
22 
23 
24 
25 
26 
27 
28 
29 
30 
31 
32 
33 
34 
35 
(2) 
“Government Funding” means Government financial assistance and 
expenditures that include grants, contracts, subgrants, subcontracts, loans, 
awards and otkr foms of financial assistance. 
SEC. 3. Disclosure of Names of Most Highly Compensated Officers of Certain Entities 
Thui iirCrived Government Fwading - Effe~tivt: ‘beginning January I, 20i0, &e names and 
total compensation of the five (5) most highiy compensated officers of the entity if-- 
(1) the entity in the preceding fiscal year received-- 
fa) eighty perCenF (80%) or more of its annual gross revenues in government funding; 
and 
(b) five hundred million pesos (Php500,000,000.00) or more in annual gross revenues 
from government funding; and 
(2) the public does not have access to information about the compensation of the senior 
executives of the entity; 
shall be disclosed in the website of the entity involved and/ or the website of the government 
agency that approved the transaction. 
(b) Regulations Required- The Secretary of the Department of Budget and Management 
shall promulgate regulations to implement the amendment made by this Act. Such regulations 
shall include a definition of ‘total compensation’ that is consistent with regulations of the 
Securities and Exchange Commission. 
SEC. 4. Agenq Zesporzsibillty. - ‘€he Secretary of the DBM shaii provide guidance to 
agency heads to ensure compliance with this section. 
SEC. 5. Appropriatiorzs. -To c a q  out the provisions of this Act, such amount as hereby 
necessaw is hereby authorized to be appropriated to the National Treasury. 
SEEC. 6. &pnrabiiity Cjame. --if any provision ofthis Act is heid invalid by a competent 
court, any other provision not affected thereby shall continue to be valid and effective. 
SZC. 7. Repeaikg Clause. -Any iaws, presidentiai decrees, executive orders and letters 
of instruction which are inconsistent with any of the provisions of this Act are hereby repealed or 
amended accordingly. 
3 


1 
2 
SEC. 8. Effectivity Clause. This Act shall take effect fifteen days following its 
publication in the Official Gazette or in any two newspapers of general circulation. 
Approved, 
4