Bitrics" R. Luistro during September 2, 2024 budget hearing of the Department of 
Education in the House Committee on Appropriations. 
While the Committee on Good Government and Public Accountability sees the 
necessity of confidential and intelligence funds in national security and peace and order 
for the effective implementation oflaw enforcement mandates for the protection of the 
Philippine society, it is nigh time that standards be put in place to regulate SDOs not 
only disbursing confidential and intelligence funds, but regular funds as well, and 
imposing sanctions for improper disbursement of these funds be it intentionally or 
through negligence. 
Hence, approval of this bill is earnestly sought. 
Rep. Aur 
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2nd Distr 
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. Romeo M. Acop 
2 District, Antipolo ity 
Rep. Crispin Die 
' mg" Remulla
7th District, Cavite 
Rep. Roberto T. Uy, Jr. 
I st District, Zamboanga del Norte 
2 


Rep. Jonat n 
Flores 
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ara 
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. Ortega V 
Rep. Char 
e C. Hernandez 
Lone District, City of Cal 
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istrict, Lanao del Sur 
Rep. Ramon R
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L. Gutierre.z
PL- I-RIDE 
Rep. J 
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S. Paduano 
Rep. Margar 
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Rep. France L. Castro 
PL - ACT TEACHERS 
ograles-Almario 
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p. Lore o S. Amante
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Rep. Rolando M. Valeriano 
2nd District, Manila 
23 
I st District, Oriental Mindoro
Rep. 
Ace S. Barbers 
rigao del Norte 
Rep. Raoul Danniel A. Manuel 
PL-KABATAAN 
Rep. 
andez 
Lone District, City of Sta. Rosa 
Rep. Arlene D. Brosas 
PL - GABRIELA 
Rep. Chee 
2nd Dis 
ID. Almario 
Oriental 
3 


Rep. 
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1st District, Cit 
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4 


Republic of the Philippines 
HOUSE OF REPRESENTATIVES 
Quezon City 
19m CONGRESS 
Third Regular Session 
House Bill No. 11193 
Introduced by REP. JOEL R. CHUA, REP. BIENVENIDO M. ABANTE, JR., 
REP. AURELIO "DONG" D. GONZALES, JR., REP. DAVID "JAY-JAY" C. 
SUAREZ, REP. FRANZ S. PUMAREN, REP. LORENZ R. DEFENSOR, REP. 
JULIENNE "JAM" BARONDA, REP. JUDE A. ACIDRE, REP. JOHNNY TY 
PIMENTEL, REP. ROMEO M. ACOP, REP. JANETTE L. GARIN, REP. 
CRISPIN DIEGO "PING" REMULLA, REP. JEFFERSON F. KHONGHUN, 
REP. ROBERTO T. UY, JR., REP. JONATHAN KEITH T. FLORES, REP. 
LORETO S. AMANTE, REP. HORACIO P. SUANSING, JR., REP. ROLANDO 
M. VALERIANO, REP. JOSEPH "JOJO" L. LARA, REP. ARNAN C.
PANALIGAN, REP. FRANCISCO PAOLO C. ORTEGA V, REP. ERNESTO M.
DIONISIO, JR., REP. CHARISSE ANNE C. HERNANDEZ, REP. ROBERT
ACE S. BARBERS, REP. ZIA ALONTO ADIONG, REP. RAOUL DANNIEL A.
MANUEL, REP. RAMON RODRIGO L. GUTIERREZ, REP. GERVILLE
"JINKY BITRICS" R. LUISTRO, REP. JOSEPH STEPHEN "CARAPS" S.
PADUANO,REP. DAN S. FERNANDEZ,REP. FRANCE L. CASTRO,RE
ARLENE D. BROSAS, REP. MARGARITA "ATTY. MIGS" B. NOGRALES­
ALMARIO, REP. CHEENO MIGUEL D. ALMARIO, REP. MIKAELA
ANGELA B. SUANSING, REP. AMPARO MARIA J. ZAMORA, REP.
LORDAN G. SUAN, REP. RAUL ANGELO "JIL" D. BONGALON
AN ACT 
REGULATING SPECIAL DISBURSING OFFICERS AND IMPOSING 
PENAL TIES FOR MISUSE AND MISAPPROPRIATION OF FUNDS 
Be it enacted by the Senate and House of Representatives qfthe Philippines in 
Congress assembled: 
1 
SECTION 1. Short Title. This Act shall be known as the "Special Disbursing 
2 
Officers Accountability Act". 
3 
SECTION 2. Declaration of State Policies. The state recognizes the need for the 
4 
allocation and use of confidential/intelligence funds in certain government agencies 
5 
with mandates that are directly related to national security. law enforcement, and 
6 
intelligence operations, and other related critical functions requiring discretion, as well 
7 
as use of regular funds in government operations through cash advances of special 
8 
disbursing officers. It is the policy of the state that the use of such funds must be subject 
9 
to stringent oversight, accountability, and transparency to ensure that they are not 
10 
misused, misappropriated, or diverted for unauthorized purposes. Further, it is the 
5 


I 
policy of the state to prevent intentional and negligent dissipation of funds disbursed to 
2 
special disbursing officers appointed by and acting under the direction of Heads of 
3 
Agencies. 
4 
SECTION 3. Scope. This Act covers all special disbursing officers, handling both 
5 
regular and confidential/intelligence funds, as defined in this bill. 
6 
SECTION 4. Special Disbursing Officer. The Special Disbursing Officer (SDO) 
7 
refers to the Head of Agency (HoA) or a regular employee designated as such by the 
8 
HoA, to be in-charge of making disbursement of the amount received. The SDO shall 
9 
be accountable to the amount received for disbursement. 
IO 
SECTION 5. Qualifications of an SDO. The SDO, designated as such by the 
11 
Ho A, shall be a permanent official or employee of the agency of at least SG 24, possess 
12 
an educational background related to accounting, auditing or finance, with an approved 
13 
fidelity bond equivalent to the SDO's accountability. 
14 
SECTION 6. Limit on Accountability. The SDO shall have an approved fidelity 
15 
bond in an amount equivalent to their cash accountability and whose net worth can 
16 
cover at least fifty per centum (50%) to one hundred per centum (100%) of their cash 
17 
accountability. 
18 
The SDO shall comply with the rules and regulations on the entitlement, release, 
19 
use, reporting and audit of regular and confidential/intelligence funds, provided the 
20 
same are not contrary to the provisions of this Act. 
21 
SECTION 7. Non-delegabi/ity. The SDO designated as such by the HoA shall 
22 
not make further delegation of disbursing the funds to which the SDO is accountable. 
23 
The funds disbursed to the SDO must be liquidated by the same SDO accountable 
24 
therefor. The SDO shall ensure proper liquidation of the funds and that the purpose for 
25 
which the fund was originally intended had been attained. 
26 
In the case of confidential/intelligence funds, the SDO shall ensure and certify 
27 
that the funds have been used in relation to the mandate of the agency directly related 
28 
to national security, peace and order, or intelligence gathering for the effective 
29 
implementation of its law enforcement mandate. 
30 
Activities related to national security and peace and order includes purchase of 
31 
information necessary for the formulation and implementation of program, activities 
32 
and projects relevant to the national security and peace and order, payment of rewards, 
33 
aid and/or capability development for personnel of law enforcement agencies, and 
34 
volunteers/partners and other activities, crime prevention and law enforcement 
35 
activities, and programs for anti-illegal drug, illegal gambling, counter-insurgency 
36 
and/or counter-terrorism, illegal logging, illegal mining, illegal fishing, smuggling and 
3 7 
human trafficking. 
38 
SECTION 8. Prima facie evidence of misappropriation. There shall be prima 
39 
facie evidence of misuse and misappropriation of the funds if: 
6 


I 
(i)
There is disbursement of funds allocated to a government agency, unit
2 
or instrumentality the mandate of which is not directly related to national
3 
security or peace and order;
4 
(ii)
The SDO fails to fully liquidate the funds at the end of each year;
5 
(iii)
The SDO disburses the funds to another person who shall make further
6 
disbursement of funds;
7 
(iv)
There is disbursement of funds for activities not directly related to
8 
national security, peace and order, or intelligence gathering for effective
9 
implementation of its law enforcement mandate; or
IO 
(v)
Failure to personally comply with the documentary requirements of
11 
liquidation.
12 
SECTION 9. Liability of the SDO. The SDO and the HoA sha11 be jointly and 
13 
severally liable in case of failure to render accounts, misappropriation, or misuse of the 
14 
funds whether through negligence or intentionally. 
1 5
SECTION 10. Penalties. Without prejudice to the filing of criminal, civil and 
1 6
administrative cases, the penalty of perpetual disqualification from office sha11 be 
1 7  
imposed upon the SDO for violation of any of the provisions of this act, including loss 
18 
of benefits. 
19 
SECTION 11. Prescription of Crimes. The offenses punishable under this Act 
20 
sha11 prescribe in twenty (20) years. However, the right of the State to recover properties 
21 
unlawfu1ly misappropriated by the SDO and HoA sha11 not be barred by prescription, 
22 
laches, or estoppel. 
23 
SECTION 12. Implementing rules and regulations. The Commission on Audit, 
24 
Bureau of Treasury, Department of Interior and Local Government, Governance 
25 
Commission for Government-owned or -controlled Corporations, Department of 
26 
Budget and Management, and the Department of National Defense shall review and 
27 
revise their existing circulars and joint circulars in accordance with this Act and shall 
28 
produce Implementing Rules and Regulations within 90 calendar days from publication 
29 
of this Act. 
30 
SECTION 13. Separability of Provisions. If any provisions of this Act or the 
31 
application thereof to any person or circumstance is held invalid, the remaining 
32 
provisions of this Act and the application of such provisions to other persons or 
33 
circumstances sha11 not be affected thereby. 
34 
SECTION 14. Repealing Clause. AH laws, decrees, orders, rules, and regulations 
35 
inconsistent with the provisions of this Act are hereby repealed or modified 
36 
accordingly. 
37 
SECTION 15. Ejfectivity. This Act sha11 take effect fifteen (15) days after its 
38 
publication in the Official Gazette or in at least two (2) newspapers of general 
39 
circulation. 
40 
Approved, 
7