;,. ~. 
FOURTEENTH CONGRESS OW THE REPUBLIC 
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OF THE PHILIPPINES 
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JuL -15 
F j  3 .7'5 
. ... 
First Regular Session 
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SENATE 
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S. No. 837 
Introduced by Senator Biazon 
EXPLANATORY NOTE 
This bill seeks to direct all government corporations to prepare their respective assets and 
liability management guidelines that will define the parameters and/or limits of their financial 
and operational capabilities for central control and monitoring by the Department of Finance. 
These guidelines shall serve as tools to anticipate, prevent and/or minimize certain eventualities 
that may adversely affect the financial condition of the corporation. The financial guidelines seek 
to limit borrowing, lending and guaranteeing any form of financial transaction while the 
operational guidelines seek to inhibit the corporation from engaging in activities outside its 
defined capabilities. 
With the passage of this bill, the parameters and limits of the operational and financial 
capabilities of government corporations will be clearly defined thus safeguarding the scarce 
resowces the Filipino people owns. 
It is in this regard that the early passage of this bill is earnestly requested. 


Introduced by Senator Rodolfo G. Biazon 
AN ACT 
DIRECTING ALL 
GOVERNMENT 
CORPORATIONS TO PREPARE THEIR 
RESPECTIVE ASSET AND LIABILITY MANAGEMENT GUIDELINES THAT WILL 
DEFINE THE PARAMETERS AND/OR LIMITS OF THEIR FINANCIAL AND 
OPERATIONAL CAPABILITIES FOR CENTRAL CONTROL AND MONITORING BY 
THE DEPARTMENT OF FINANCE 
Be it enacted by the Senate and House of Representatives of the Philippines in Congress 
assem bled: 
SECTION 1. It is hereby declared a national policy to require all government 
corporations to clearly define the parameters and/or limits of their financial and operational 
capabilities consistent with their established mandates and charters. 
SEC. 2. The definition of these limits shall be embodied in their respective Asset and 
Liability Management Guidelines, which is a universally accepted management tool whereby 
financial and operational activities are automatically confined within clearly defined limits. 
SEC. 3. Foremost among the financial guidelines are the limits on borrowing, lending 
and guaranteeing any form of financial transaction, risk and/or commitment. 
SEC. 4. Foremost among the operational guidelines are the recognition and acceptance of 
the limits of in-house talents and capabilities thereby inhibiting said corporation from engaging 
in activities outside its defined capabilities or in cases where it is necessary to engage in such 
transactions or activities, the mandatory requirement to tap outside talents preferably from other 
government agencies or institutions. 
SEC. 5. These guidelines shall be used primarily as a tool to anticipate, obviate, prevent 
and/or minimize certain eventualities that may adversely affect the financial condition of 


individual corporations. As a standard requirement, however, it is seen as a vital instnrment to 
stabilize and solidify the country's overall financial condition. 
SEC. 6. Adherence to these asset and liability guidelines shall be the responsibility of the 
Department under which these corporations belong. The Department covered shall prescribe 
their respective policies and procedures including penalties for their violations, in order to ensure 
that such guidelines are strictly complied with. 
SEC. 7. In line with the national policy of transparency and public disclosure, all 
government corporations are henceforth, required to publish their quarterly financial statements 
in any newspaper of major circulation. 
SEC. 8. The central monitoring and control of the overall financial condition of these 
government corporations shall be made by the Department of Finance which shall consolidate all 
related figures into one report. 
SEC. 9. If, for any reason, any provisions of this Act is declared unconstitutional, invalid, 
such sections or parts not affected thereby shall remain 
in force and effect. 
SEC. 10. Repealing Clause. - All laws, decrees, executive orders, rules and regulations, 
or parts hereof inconsistent with the provision of this Act are hereby repealed, amended or 
modified accordingly. 
SEC. 11. Effectivity. This Act shal1 take effect fiReen (1 5) days after its publication in 
the Official Gazette or in at least two (2) newspapers of general circulation 
whichever comes earlier. 
Approved,