· .( 
SIXTEENTH CONGRESS OF THE 
REPUBLIC OF THE PHILIPPINES 
First Regular Session 
) 
) 
) 
SENATE 
S.No. 
474 
-Semltr 
ll!}f!,;, vf t~. fom.t .. v 
'13 
JUL -4 All :05 
Introduced by Sen. Antonio "Sonny" F. Trillanes IV 
Explanatory Note 
The Office of the Government Corporate Counsel (OGCC) was found on December 1, 1935 
under the DOJ. It was then known as the Government Counsel Division of the DOJ. It acts as the 
premier law office of government-owned and controlled corporations (GOCCs), their 
subsidiaries, other corPorate offspring and government acquired asset corporations. As such, the 
OGeC safeguards the legal interest of all GOCCs, their subsidiaries, other corporate offspring 
and government acquired asset corporations. 
This bill seeks to strengthen and further professionalize OGCC by re-defining, expanding, 
strengthenipg, and rationalizing its organization. This bill also seeks to provide an upgrade to the 
compensatiin as well as the benefits being received by the employees of the OGCC. 
It is hoped that thru the passage of this bill, we would have a more effective and efficient OGCC, 
and that we would retain the services of the people in the OGCC, men and women who are 
committed to providing excellent and professional service for our country. 
In view of the foregoing, immediate approval of this measure is earnestly sought. 
ONNY" F. RILLANES IV 
Senator 
1 


~--~~-~ 
SIXTEENTH CONGRESS OF THE 
REPUBLIC OF THE PHILIPPINES 
First Regular Session 
SENATE 
S.No. 
474 
) 
) 
) 
.s l?rt.uh' 
llilll,;t Ilf f~. ~Hf.t~'~ 
'13 
JUL -4 All :05 
Introduced by Sen. Antonio "Sonny" F. Trillanes IV 
AN ACT 
TO STRENGTHEN THE OFFICE OF THE GOVERNMENT CORPORATE COUNSEL, 
BY RE-DEFINING, EXPANDING, STRENGTHENING, RATIONALIZING AND 
FURTHER PROFESSIONALIZING ITS ORGANIZATION, UPGRADING EMPLOYEE 
BENEFITS AND APPROPRIATING FUNDS THEREFOR 
Be it enacted by the Senate and the House of Representatives of the Philippines in 
Congress assembled: 
1 
SECTION 1. Declaration of Policy.- It shall be the policy of the State to protect and promote 
2 
the welfare, rights and interests of government-owned and -controlled corporations, their 
3 
subsidiaries, other corporate offsprings, including government acquired asset corporations, 
4 
government corporate entities and government instrumentalities with corporate powers, 
5 
government financial institutions, and other government entities, including economic zones and 
6 
state universities, referred to as "government corporations". 
7 
Toward this end, the State shall require the improvement of legal services to etliciently 
8 
. and effectively address the expanding needs of these government corporations in accordance 
9 
with its initiative towards an improved fiscal management and good corporate governance. 
10 
11 
12 
13 
14 
15 
16 
SEC. 2. Jurisdiction and Mandate.- Any law to the contrary notwithstanding, the 
Office of the Government Corporate Counsel (OGCC) shall be the legal counsel and principal 
I 
law otlice of all government corporations. All government corporations shall refer to the OGCC 
I 
the following: 
A) All legal questions for opinion and advice; 
B) Prior to their ej(ecution, all contracts for review; and 
1 


1 
C) All cases for representation before regular courts, quasi-judicial bodies, administrative 
2 
agencies and arbitral tribunals, provided that, the Government Corporate Counsel (GCC) may 
3 
thereafter authorize the government corporation's legal department as collaborating counsel to 
4 
handle cases, as the urgency or expediency of circwnstances may warrant. 
5 
6 
Moreover, as special and additional duties, the OGCC shall: 
7 
A) Conciliate, mediate, act as hearing officers or adjudicate all disputes or controversies 
8 
exclusively between government corporations; 
9 
B) Exercise control and supervision over the legal departments of all government corporations; 
10 
C) Approve the engagement of private lawyers by the government corporations; 
11 
D) Serve as Corporate Secretary in all governing boards of government corporations; and 
12 
E) Perform such other special duties or functions as may be found necessary in the interest of the 
13 
service. 
14 
The OGCC shall be an independent and autonomous office attached to the Department 
15 
of Justice. All opinions and issuances of the OGCC shall be binding on all government 
16 
corporation$. 
17 
18 
SEC. 3. Expansion and Upgrading of Positions.- The GCC shall have a cabinet rank 
19 
and the same prerogatives, salary, allowances, benefits and privileges as the Presiding Justice of 
20 
the Court of Appeals. He/she shall be assisted by a Deputy Govennnent Corporate Counsel 
21 
(DGCC) and twelve (12) Assistant Government Corporate Counsels (AGCC) who shall all have 
22 
the rank, salary, allowances, retirement benefits, and privileges of an Associate Justice of the 
23 
Court of Appeals. 
24 
No person shall be appointed GCC, DGCC or AGCC unless he/she is a natural-born 
25 
citizen of the Philippines and has been engaged in the practice of law in the Philippines for at 
26 
least fifteen (15) years. 
27 
The number, rank, qualifications for appointment, salary, allowances, retirement and 
28 
other benefits, and privileges of the other members of the legal staff shall be as follows: 
2 


1 
A) Twenty (20) Government Corporate Attorney IV (GCA IV) who shall have the rank, salary, 
2 
allowances, retirement benefits, and privileges of a Regional Trial Court Judge. No person shall 
3 
be appointed GCA IV unless he/she is a natural-born citizen of the Philippines and has been 
4 
engaged in the practice oflaw in the Philippines for at least ten (l0) years; 
5 
B) Twenty (20) Government Corporate Attorney III (GCA III) who shall have the rank, salary, 
6 
allowances, retirement benefits, and privileges of a Metropolitan Trial Court Judge. No person 
7 
shall be appointed GCA III unless helshe is a natural-born citizen of the Philippines and has been 
I 
. 
8 
engaged in Ithe practice of law in the Philippines for at least five (5) years; 
9 
C) Twenty (20) Government Corporate Attorney II (GCA II), who shall have the rank, salary, 
10 
allowances, retirement benefits, and privileges of a Municipal Trial Court Judge in Cities. No 
11 
person shall be appointed GCA II unless he/she is a natural-born citizen of the Philippines and 
12 
has been engaged in the practice oflaw in the Philippines; for at least five (5) years. 
13 
D) Twelve (12) Government Corporate Attorney I (GCA I). No person shall be appointed GCA I 
14 
unless hel she is a natural-born citizen of the Philippines and has been admitted to the Philippine 
15 
Bar; 
16 
The GCC, DaCC and AGCC shall be appointed by the President of the Philippines. The 
17 
other members of the legal staff and administrative personnel shall be appointed by the GCC. 
18 
Appointments of the DGCC, AGCC and other members of the legal staff shall be deemed 
19 
permanent upon compliance with the prescribed qualification standards under this law. 
20 
The administrative structnre of the aGCe shaH be organized into the Finance and 
21 
Accounting Services, the Human Resonrce and Management Services, the Case and Records 
22 
Management Services, the Library Management and Information Technology Services and the 
23 
Property and Supply Services. 
24 
The legal and non-legal staff of the aGeC occupying the positions affected by the 
2S 
changes embodied in this Act at the time of its approval shall thereafter occupy and discharge the 
26 
duties and functions of the upgraded positions and receive and receive the corresponding salary, 
27 
benefits anll privileges without necessity of new appointment .. 
28 
3 


1 
SEC. 4. Compensation.- The basic monthly compensation of the OGCC employees 
2 
shall be as follows: 
Positio n 
Salary Grade 
From 
To 
Government Co orate Counsel 
30 
31 
Deputy Government Co rporate 
Counsel 
29 
30 
Assistant Government Corporate 
Counsel 
29 
30 
Government Co orate Attornev IV 
28 
29 
Government Co orate Attornev III 
27 
28 
Government Co orate Attornev II 
26 
27 
Government Co orate Attornev I 
25 
26 
3 
4 
The non-legal personnel shall have the same compensation as that of their counterparts in 
5 
the Office of the Solicitor General and Court of Appeals. 
6 
The salaries, benefits and privileges of the personnel of the OGCC granted under this Act 
7 
shall be further increased to match any corresponding increase in salaries arid privileges 
8 
subsequently granted to their respective counterparts in the judiciary. 
9 
10 
11 
12 
13 
14 
15 
16 
17 
18 
19 
20 
21 
22 
23 
SEC. S. Personnel benefits and privileges.- Provisions of other laws to the contrary 
notwithstanding, the OGCC may provide its employees the following benefits: 
I. Health care services through a health maintenance organization (HMO). Expenses for the 
mandatory Imedical annual check-up of the GCC, the DGee and the AGee shall be for the 
account odhe office. 
II. Accident insurance for all employees to be procured by the office at its own expense for 
'travels while in the perfonnance of official duties; 
III. Without prejudice to the efficiency of the service, scholarships for deserving employees on 
official time and at the expense of the offi,ce to upgrade their knowledge and skills; Provided 
that, scholars under this provision shall be selected on the basis of merit as determined by 
competitive examination; 
IV. A provident fund which shall consist of, but not limited to contributions made by the office 
and by its lawyers and employees to a common fund for the payment of benefits to such lawyers 
or employees or their respective beneficiarieslheirs. 
4 


1 
SEC. 6. Seminar and other Professional Fees.- Subject to availability of funds, fees for 
2 
relevant seminars, as well as professional membership fees for lawyers, registration fees and 
3 
related miscellaneous expenses incurred in completing the mandatory continuing legal education 
4 
(MCLE) shall be borne by the office. Professional membership, registration fees including those 
5 
for mandatory continuing professional education (CPE), and related miscellaneous expenses of 
6 
other employees holding positions for which a professional license is required by the office, shall 
7 
also be borne by the OGCE. 
8 
9 
SEC. 7. Transportation Benefits.- Subject to availability of funds, employees shall be 
10 
provided with contracted transportation services until such time that the office can procure 
I 
11 
additional ~otor vehicles for this purpose. 
12 
13 
SEC. 8. Other Benefits.- Provisions of other laws to the contrary notwithstanding, the 
14 
legal staff of the ~OGCC are allowed to receive allowances, honoraria and reimbursement of 
15 
reasonable expenses from the government corporations. Employees of the OGCC may likewise 
16 
be extended such benefits and privileges as are given to the employees of their clients. Provided, 
17 
that such allowances or honoraria shall not exceed one hundred percent (100%) of their basic 
18 
salary as provided under the Salary Standardization Law (Republic Act 6758). 
19 
In addition, any member of the legal staff may be designated by the GCC to act in a 
20 
concurrent capacity as corporate secretary of, or assigned to perfonn special or additional tasks 
21 
in, any of the government corporations and by virtue of such designation or assignment, receive 
22 
such additional compensation and privileges as maybe granted them by the concerned 
23 
government corporation. 
24 
25 
SEC. 9. Attorney's fees and Special Assessment.- The OGCC is authorized to receive 
26 
twenty percent (20%) of all the money claims collected by, or awarded/adjudged to government 
27 
corporations in addition to the attorney's fees awarded by a court, tribunal or panel, including 
28 
awards/judgments, stipulated under court-approved compromises. 
5 


1 
The OGCC is hereby authorized to use such awards and attorneys fees to meet 
2 
contingencies, obligations and undertakings, or for employee salaries, allowances, other benefits 
3 
and incenti~es in Section 5 hereof, necessary or proper to promote efficiency in the service as 
4 
determined by the GCC. 
5 
The GCC is likewise authorized to make special assessments upon GOCCs to similarly 
-
6 
meet such contingencies, obligations and undertakings, or to provide for employee salaries, 
7 
allowances, other benefits and incentives, as may be warranted or proper as determined by the 
8 
GCC. 
9 
Attorney's fees and special assessments shall be deposited in an authorized government 
10 
depository as a trust liability and shall be made available for expenditure without the need for a 
11 
Cash Disbursement Ceiling, for purposes of upgrading facilities and equipment, granting of 
12 
employees' incentive pay and other benefits, and defraying such other incentive expenses not 
13 
provided for in the General Appropriations Act as may be determined by the GCC. In both cases, 
14 
the usual accounting and auditing procedures shall apply. 
15 
16 
SEC. 10. Franking Privilege.- All official matters and telegrams of the OGCC addressed 
17 
for delivery within the Philippines shall be received, transmitted and delivered free of charge. 
18 
19 
SEC. 11. Appropriations.- The amount needed for employees' salaries, mandatory 
20 
allowances and benefits under other laws, maintenance and other operating expenses and capital 
21 
outlay shall be appropriated in the budget of the OGCC under the annual General Appropriations 
I 
22 
Act. 
23 
24 
SEC. 12. Implementing Rules and Regulations.- Within sixty (60) days from the 
25 
approval of this Act, the GCC, in consultation with the Secretary of the Justice and Secretary of 
26 
Budget and Management, shall promulgate such rules and regnlations as may be necessary to 
27 
carry out the provisions ofthis Act. 
6 


1 
SEC. 13. Repealing Clause.- Provisions of Presidential Decree No. 1415 dated June 9, 
2 
1978 Other provisions of Presidential Decree 1415, Executive Order 292 or the Revised 
3 
Administrative Code of 1987, as amended, Executive Order 878 dated March 4,1983, Republic 
4 
Act 6000 dated August 4,1969 and other pertinent laws rules and regulations shall remain in 
5 
force and effect unless otherwise contrary or inconsistent with the provisions of this Act. 
6 
7 
SEC. 14. Separability Clause.- If any of the provisions of this Act is declared invalid or 
8 
unconstitutional, the provisions not affected thereby shall continue to be in full force and effect. 
9 
10 
SEC. 15. Effectivity.- This Act shall take effect after fifteen (15) days from its 
11 
publication in the Official Gazette or in a national newspaper of general, circulation. 
Approved, 
7