SEVENTEENTH CONGRESS
REPUBLIC OF THE PHILIPPINES }
Second Regular Session

HOUSE OF REPRESENTATIVES

Introduced by Representative Maximo B. Rodriguez, Jr.
House Bill No. 6823

EXPLANATORY NOTE

Section 7, Article XVI (General Provisions) of the 1987 Constitution states:

SEC. 7. The State shall provide immediate and adequate care,
benefits, and other forms of assistance to war veterans and veterans of
military campaigns, their surviving spouses and orphans. Funds shall
be provided therefore and due consideration shall be given them in the
disposition of agricultural lands of the public domain and, in appropriate
cases, in the utilization of natural resources.

In 1994, Republic Act No. 7696, entitled “An Act Amending Certain Sections
of Republic Act No. 6948 Otherwise Known As ‘An Act Standardizing And
Upgrading The Benefits For Military Veterans And Their Dependents’,” was enacted
to provide comprehensive benefits to war veterans, military retirees and their
surviving spouses and dependents. Through the years, however, the national
government was not able to fulfil its commitment to pay such benefits due to
inadequate budgetary appropriations.

As of December 2006, the Philippine Veterans Affairs Office (PVAO) of the
Department of National Defense (OND) has reported that the total estimated arrears
has already accumulated to P 21 billion. This amount does not include the arrears in
old-age pensions, death pensions and educational benefits amounting to P5.4 billion
which the national government has been paying since 2006 until 2008. Thus,
payables to veterans and their beneficiaries continue to escalate, making it very
difficult for the government to honor its commitment.

The national government must therefore create a mechanism to settle its
outstanding obligations to the veterans, military retirees and their dependents.
Hence, the proposed measure seeks to utilize the proceeds from the development,
lease, or other use of government properties. In the process, the national
government will accomplish its constitutional mandate of providing assistance to said
beneficiaries without affecting the national budget.

In view of the foregoing, passage of this bill is eamestly sought.

<i

MAXIMO B. RODRIGUEZ, JR.


SEVENTEENTH CONGRESS )
REPUBLIC OF THE PHILIPPINES }
Second Regular Session

HOUSE OF REPRESENTATIVES

Introduced by Representative Maximo B. Rodriguez, Jr.
House Bill No. 6823

AN ACT
PROVIDING FOR THE PAYMENT OF ARREARS IN THE VETERANS’ PENSIONS
AND BENEFITS MANDATED PURSUANT TO REPUBLIC ACT NO. 7696, AS
AMENDED, OTHERWISE KNOWN AS AN ACT STANDARDIZING AND UPGRADING
THE BENEFITS FOR MILITARY VETERANS AND THEIR DEPENDENTS AND
APPROPRIATING FUNDS THEREFOR

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

SECTION 1. Declaration of Policy. — It is hereby declared the policy of the State to
provide immediate and adequate care and benefits to war veterans by allotting the
necessary funds to pay for the arrears in the payment of pensions and other benefits of
the veterans and military retirees or their dependents.

SEC. 2. Coverage. — This Act shall apply to the lease, development or use of the
following properties of the government:

a. Former site of the Philippine Veterans Affairs Office (PVAO) at Arroceros
Street, Ermita, Manila;

b. Veterans Memorial Medical Center in Quezon City;

¢. Taguig Industrial Estates;

. Properties given by the Japanese government to the Philippine government
under the Reparations Agreement, including the Roponggi, Nampeidai and Fujimi
properties in Tokyo, and the Noniwacho and Obanoyama properties in Kobe; and

e. Other properties that may be identified by the Office of the President.

SEC. 3. Privatization and Management Office. — The Privatization and
Management Office (PMO) of the Department of Finance is hereby authorized to
implement the actual marketing for the lease, development or use of the above
properties and to perform the following:

a. Execute and deliver, on behalf of the national govemment, the deeds,
contracts and other instruments as may be necessary or appropriate to effect the lease,
development or use of said properties;

b. Engage external expertise as may be necessary in the fulfillment of its tasks;

c. Submit periodic reports to the PVAO on the status of private sector
participation in the lease, development or use of said properties; and

d. Adopt such rules and regulations as may be necessary to effect the
provisions of this Act.

SEC. 4. Funding Source. — All proceeds from the lease, development or use of the
properties mentioned in Section 2 hereof shall be utilized to fund the pension and
benefits of veterans and military retirees, whether in arrears or due for payment by the
national government: Provided, That any shortfall in payment of pensions and benefits
to veterans and military retirees shall be settled by the national government from other
sources.


All proceeds and receipts from the lease, development or use 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
automatic distribution of pensions and benefits directly to war veterans and military
retirees.

SEC. 5. Implementing Rules and Regulations. - The Secretary of National Defense
shall, in coordination with the Secretary of Finance, issue the necessary rules and
regulations for the effective implementation of this Act within six (6) months after its
effectivity.

SEC. 6. Repealing Clause. — All laws, decrees, executive orders, issuances, rules
and regulations, or parts thereof inconsistent with the provisions of this Act are
hereby repealed or modified accordingly.

SEC. 7. Effectivity. — This Act shall take effect fifteen (15) days following the
completion of its publication in at least two (2) national newspapers of general
circulation

Approved,