Republic of the Philipp

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House of Representatives ote
Quezon Gity, Meteo Manila awe:_&
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SEVENTEENTH CONGRESS ¥
First Regular Session saree iATiONTON

BILLS AND iNDEX SERVICE

House Bill No,_1395

Introduced by Honorable ERLPE JOHN “PING” M. AMANTE

EXPLANATORY NOTE

This Bill seeks to prohibit all government entities including
government-owned and controlled corporations and local government units
to allocate from their respective budgets for the additional compensation,
allowances, honoraria, bonuses and other emoluments of the Commission
on Audit (COA) officials and personnel stationed in or assigned in their
respective offices.

Section 18 of Republic Act No. 6758 or the Compensation and Position
Classification Act of 1989 provided that COA officials and personnel are
prohibited from receiving salaries, honoraria, bonuses, allowances or other
emoluments from any government entity, local government unit, and
government-owned or controlled corporations, and government financial
institution, except those compensation paid directly by the COA out of its
appropriations and contributions.

However, the enactment of the Local Government Code of 1991
created confusion whether the provision of LGC particularly authorizing the
LGU’s, subject to the condition that if their local finances allow,
automatically and impliedly repeal the provision of RA 6758 on the
prohibition on the COA officials and personnel to receive additional
compensation from the LGUs.

In the case of Villarena Vs. COA, GR No. 145383-84 dated August 6,
2003, the Supreme Court decided that the apparent inconsistency with the
two (2) laws should be reconciled by regarding the prohibition stated in
Republic Act No. 6758 as an exception or limitation to the authority of local
legislative bodies under Republic Act No. 7160.

Though there are existing ruling of the High Court and memorandum
orders from the COA regarding this matter, there are still LGU’s and


resident COA Auditors who are continuing this practice. In fact, there are
still resident COA Auditors who present and defend their annual allocation
from the LGU before the Sanggunian for the inclusion in the Annual LGU
Budget. Through this, we can never discount and remove in the mind of our
people that there are possibilities that they may be influenced by their
benefactor LGU.

Through this measure, we can truly preserve the independence,
morality and integrity of the Commission on Audit and the people are
assured that there are concrete safeguards in the government spending of
public funds.

In view of the foregoing, the approval of this Bill is earnestly sought.

ae on ? M. AMANTE


Republi of the Bhilippines

House of Representatives

Quezon City, Metro Manila

SEVENTEENTH CONGRESS
First Regular Session

1395

House Bill No.

Introduced by Honorable ERLPE JOHN “PING” M. AMANTE

AN ACT
PROHIBITING GOVERNMENT ENTITIES INCLUDING GOVERNMENT-
OWNED OR CONTROLLED CORPORATIONS AND THE LOCAL
GOVERNMENT UNITS, TO ALLOCATE FUNDS FOR THE ADDITIONAL
COMPENSATION, ALLOWANCES, HONORARIA, BONUSES OR OTHER
EMOLUMENTS TO THE OFFICIALS AND PERSONNEL OF THE
COMMISSION ON AUDIT (COA) STATIONED IN OR ASSIGNED IN THEIR
RESPECTIVE OFFICES THEREBY STRENGTHENING THE
INDEPENDENCE, MORALITY AND INTEGRITY OF THE COMMISSION ON
AUDIT AND FOR OTHER PURPOSES.

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

Section 1. Short Title. This Act shall be known as the “Anti-Patronage in
State Auditing Act of 2015”

Section 2. Declaration of Policy. It shall be declared the policy of the
State that in order to carry out the constitutional mandate of the
Commission on Audit and to preserve the independence, morality and
integrity of the Commission, its officials and personnel must consciously
isolate themselves with the enticing financial temptations given to them by
other government entities including government-owned and controlled
corporations and the local government units through allocation of funds for
their additional compensation, allowances, honoraria, bonuses and other
emoluments for their services rendered in line with the performance of their
constitutional mandate.

Section 3. Prohibition on COA Officials and Personnel. It shall be
unlawful and illegal for the officials and personnel of the Commission on
Audit, especially those who are stationed in or assigned in the government
entities including government-owned or controlled corporations, government
financial institutions or local government units to receive all forms of


additional compensation, allowances, honoraria, bonuses and other
emoluments for their services rendered in performing their official functions,
except those compensations, allowances, honoraria, bonuses and other
emoluments directly paid by the Commission on Audit out of its annual
budget and appropriations.

Section 4. Prohibition on Government Entities Including Government-Owned
and Controlled Corporations and the Local Government Units. It shall
be unlawful and illegal for any government entities including government-
owned or controlled corporations and the local government units to allocate
funds from their respective office budget and appropriations, for the
additional compensation, allowances, honoraria, bonuses and other
emoluments for the services rendered by the resident COA Auditors and
their personnel in performing their official functions.

Section 5. Penalties. (a) Any official or personnel of the Commission on
Audit found to be violating the provisions of Section 8 of this Act shall, upon
conviction, be punished with imprisonment of six months and one day to
twelve years, perpetual disqualification from public office, and shall refund
all those previously received additional compensation, allowances,
honoraria, bonuses and other emoluments.

(b) Any officer of the government entities including government-owned or
controlled corporations and the local government units who caused the
release of any additional compensation, allowances, honoraria, bonuses and
other emoluments to the officials and personnel of the Commission on Audit
shall, upon conviction, be punished with imprisonment of six months and
one day to twelve years and perpetual disqualification from public office.

Section 6. Implementing Rules and Regulations. For purposes of the
implementation of this Act, the Chairman of the Commission on Audit, in
coordination with the Department of Interior and Local Government and
Governance Commission for Government-Owned or Controlled Corporations
shall issue such rules and regulations as he may deem necessary and
appropriate Department Orders for the effective implementation of this Act.

Section 7. Repealing Clause. - All laws, decrees, executive orders, rules and
regulations which are inconsistent with the provisions of this Act are hereby
repealed, amended or modified accordingly.

Section 8. Separability Clause. - If for any reason or reasons, any portion or
provision of this Act shall be held unconstitutional or invalid, all other parts
or provisions not affected shall thereby continue to remain in full force and
effect.

Section 9. Effectivity. - This act shall take effect fifteen days (15) after its
publication in at least two (2) national newspapers of general circulation.

Approved,