Y Vata
Retublic of the Philpsines
HOUSE OF REPRESENTATIVES

Quexon City

EIGHTEENTH CONGRESS
Second Regular Session

HOUSE BILL No.8092

Introduced by HON. LUIS RAYMUND “LRAY” F. VILLAFUERTE, JR.

AN ACT
STRENGTHENING THE CODE OF CONDUCT AND ETHICAL STANDARDS FOR
PUBLIC SERVANTS

The Philippines was given a score of 35 on a scale of 0 to 100 for 2016 in the
Corruption Perceptions Index, with 100 being the cleanest and 0 being highly
corrupt. In 2013, the Office of the Ombudsman conducted a survey that showed
corruption as a reason for poverty in the country asserting the 2001 World Bank
study that fighting corruption helps in reducing poverty.

As a position of public trust, honesty is the bare minimum that a public servant must
intend to uphold. In 1989, Republic Act 6713 was approved in order to preserve the
time-honored principle of public office being a public trust. This law exists as a
standard every public official or employee should aspire for—a clean and honest
worker whose aim is to help lift the country up, not drag it back down. However, the
law must also be able to adapt to the changing political landscape.

This bill seeks aims to combat the corruption that plagues public institutions in the
country by creating a multi-sectoral anti-corruption committee to develop and
implement policies. The bill also proposes provisions such as the institutionalization
of existing award conferred to public servants, such as the “Outstanding Public
Servants Award” and the “Lingkod Bayan Award”, as well as protection of
whistleblowers and rewarding thereof, and clearer guidelines on prohibited acts and
transactions, all in the hopes of inspiring public servants to serve with more dignity.

This bill seeks to further strengthen the standards in which public officials must
comply to through a stricter review and compliance procedure. In amending the
penalties prescribed, this piece of legislation will hopefully deter public servants to
practice corruption. In the hopes of ensuring that our government is up to standards
with international agreements, such as the United Nations Convention Against


Corruption (UNCAC), this bill aims to elevate the existing Code of Conduct that
public servants currently adhere to.

The approval of this bill is earnestly sought.

al

LUIS IUND “LI ” F. VILLAFUERTE, JR.


q la la
Reblec of he Philepines
HOUSE OF REPRESENTATIVES

Queen City

Wi,

EIGHTEENTH CONGRESS
‘Second Regular Session

HOUSE BILL No, 8992

Introduced by HON. LUIS RAYMUND “LRAY” F. VILLAFUERTE, JR.

AN ACT
STRENGTHENING THE CODE OF CONDUCT AND ETHICAL STANDARDS FOR
PUBLIC SERVANTS

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

SECTION 1. Title. — This Act shall be known as the “Enhanced Code of Conduct
and Ethical Standards for Public Servants of 2017.”

SECTION 2. Declaration of Policies. — tis the policy of the State to promote a high
standard of ethics in public service. Public servants shall at all times be accountable
to the people and shall discharge their duties with utmost responsibility, integrity,
competence, and loyalty, act with patriotism and justice, lead modest lives, and
upload public interest over personal interest

SECTION 3. Definition of Terms. — As used in this Act, the term:

(a) “Conflict of interest” arises when a public servant is a member of a board,
an officer, or a substantial stockholder of a private corporation or owner or
has a substantial interest in a business, and the interest of such
corporation or business, or his rights and duties therein, may be opposed
to or affected by the faithful performance of servant duty.

(b) “Corruption” is understood as the use of public office for personal gains
which include but is not limited to bribery, extortion, fraud, embezzlement,


nepotism, cronyism, appropriations of public assets and properties for
private use and influences peddling.

(c) ‘Divestment’ is the transfer of title or disposal of interest in property by
voluntarily, completely and actually depriving or dispossessing oneself of
his right or title to it in favor of a person or persons other than his spouse
and relatives as defined in this Act.

(d) “Family of public servants” means their spouses and children, or partners
regardless of legal status.

(e) “Gift” refers to a thing or a right to dispose of gratuitously, or any act or
liberality, in favor of another who accepts it, and shall include a simulated
sale or an ostensibly onerous disposition thereof, It shall not include an
unsolicited gift of nominal or insignificant value not given in anticipation of,
or in exchange for, a favor from a public servant.

(f) “Government” includes the National Government, the local governments,
and all other instrumentalities, agencies or branches of the Republic of the
Philippines including government-owned or controlled corporations, and
their subsidiaries.

(g) “Honorary Capacity” shall mean holding a government position or office as
an honor and without payment or compensation of any form.

(h) ‘Lavish Lifestyle” shall mean living in a manner characterized by
extravagance and profusion.

(i) “Loan” covers both simple loan and commodatum as well as guarantees,
financing arrangement or accommodations intended to ensure its
approval.

() “Person” includes natural and juridical persons unless the context
indicates otherwise.

(k) “Public Servant" includes any person holding or performing a public
function in the legislative, executive, administrative or judicial office in the
government, regardless of status of employment or engagement, and
whether or not they receive compensation, except foreign nationals
designated as honorary consuls. Provided that services rendered of those
engaged by contract of service or job order shall not be considered
government service.


(I) “Receiving any gift” includes the act of accepting directly or indirectly, a gift
from a person other than a member of his family or relative as defined in
this Act, even on the occasion of a family celebration or national festivity
like Christmas, if the value of the gift is neither nominal nor insignificant, or
the gift is given in anticipation of, or in exchange for, a favor.

(m)‘Relatives” refers to any and all persons related to a public servant within
the fourth civil degree of consanguinity or affinity, including bilas, inso, and
balae.

(n) “Retaliation” shall mean the dismissal, suspension, demotion or any other
adverse action in terms or conditions of employment by an agency, board,
public employer, head of department, appointing authority, or any superior
against a public servant for disclosing any corrupt activity or any violation
of or non-compliance with a law, rule, or regulation.

(0) “Substantial stockholder” means any person who owns, directly or
indirectly, shares of stock sufficient to elect a director of a corporation. This
term shall also apply to the parties to a voting trust.

SECTION 4. Norms of Conduct of Public Servant. —

(A) Every public servant shall observe the following as standards of personal
conduct in the discharge and execution of servant duties:

(a) Commitment to public interest. - Public servants shall always uphold the
public interest over and above personal interest. All government resources
and powers of their respective offices must be employed and used
efficiently, effectively, honestly and economically, particularly to avoid
wastage in public funds and revenues.

(b) Professionalism. — Public servants shall perform and discharge their duties
with the highest degree of excellence, professionalism, intelligence and
skill. They shall enter public service with utmost devotion and dedication to
duty. They shall endeavor to discourage wrong perceptions of their roles
as dispensers or peddlers of undue patronage.

(c) Justness and sincerity. — Public servants shall remain true to the people at
all times. They must act with justness and sincerity and shall not
discriminate against anyone, especially the poor and the underprivileged.
They shall at all times respect the rights of others, and shall refrain from
acts contrary to law, good morals, good customs, public policy, pulic order,
public safety and public interest. They shall not dispense or extend undue
favors on account of their office to their relatives whether by consanguinity


or affinity except with respect to appointments of such relatives to
positions considered strictly confidential or as members of their personal
staff whose terms are coterminous with theirs.

(d) Political neutrality. - Public servants shall provide service to everyone
without unfair discrimination and regardless of party affiliation or
preference.

(e) Responsiveness to public. — Public servants shall extend prompt,
courteous, and adequate service to the public. Unless otherwise provided
by law or when required by the public interest, public servants shall
provide information of their policies and procedures in clear and
understandable language, ensure openness of information, public
consultations and hearings whenever appropriate, encourage suggestions,
simplify and systematize policy, rules and procedures, avoid red tape and
develop an understanding and appreciation of the socio-economic
conditions prevailing in the country, especially in the depressed rural and
urban areas.

(f) Nationalism and patriotism. — Public servants shall at all times be loyal to
the Republic and to the Filipino people, promote the use of locally
produced goods, resources and technology and encourage appreciation
and pride of country and people. They shall endeavor to maintain and
defend Philippine sovereignty against foreign intrusion.

(g) Commitment to democracy. - Public servants shall commit themselves to
the democratic way of life and values, maintain the principle of public
accountability, and manifest by deeds the supremacy of civilian authority
over the military. They shall at all time uphold the Constitution and put
loyalty to country above loyalty to persons or party.

(h) Simple living. — Public servants and their families shall lead modest lives
appropriate to their positions and income. They shall not indulge in
extravagant or ostentations display of wealth in any form.

(B) The Civil Service Commission shall adopt positive measures to promote (1)
‘observance of these standards including the dissemination of information programs
and workshops authorizing merit increases beyond regular progression steps, to a
limited number of public servants recognized by their office colleagues to be
outstanding in their observance of ethical standards; and (2) continuing research and
experimentation on measures which provide positive motivation to public servants in
raising the general level of observance of these standards.


SECTION 5. Duties of Public Servants. — |n the performance of their duties, all
public servants are under obligation to:

(a) Act promptly on letters and requests. — All public servants shall, within

fifteen (15) working days from receipt thereof, respond to letters, telegrams
or other means of communications sent by the public. The reply must
contain the action taken on the request.

(b) Submit annual performance reports. — All heads or other responsible

officers of offices and agencies of the government and of government-
owned or controlled corporations shall, within forty-five (45) working days
from the end of the year, render a performance report of the agency or
office or corporation concemed. Such report shall be open and available to
the public within regular office hours.

(c) Process documents and papers expeditiously. — All servant papers and

documents must be processed and completed within a reasonable time
from the preparation thereof and must contain, as fas as practicable, not
more than three (3) signatories therein. In the absence of duly authorized
signatories, the servant next-in-rank or officer in charge shall sign for and
in their behalf.

(d) Act immediately on the public's personal transaction. — All public servants

must attend to anyone who wants to avail himself of the services of their
offices and must, at all times, act promptly and expeditiously.

(e) Make documents accessible to the public. — All public documents must be

made accessible to, and readily available for inspection by, the public
within reasonable working hours.

Section 6. Code of Conduct Committee (CCC). A multi-sectoral anti-corruption
committee is hereby created composed of the following: Chairman of the Civil
Service Commission (CSC) and the Ombudsman as the Committee Heads,
Chairperson of the Commission on Audit, one representative from any recognized
government employee association, and on Civil Society Organization representative
to be appointed by the President, as members.

It shall be the task of the CCC to:

1.

Develop and implement or maintain effective, coordinated anti-corruption
policies that promote the participation of society and reflect the principles
of the rule of law, proper management of public affairs and public property,
integrity, transparency and accountability.


2. Establish and promote effective practices aimed at the prevention of
corruption.

3, Evaluate periodically relevant legal instruments and administrative
measures with a view to determining their adequacy to prevent and fight
corruption.

4. To act as primary body that will collaborate with relevant international and
regional organizations in promoting and developing anti-corruption policies
and practices.

5. Promulgate rules and administer the system of incentives and rewards
established in this Act.

6. Promulgate policies, rules and regulations and perform such other actions
to carry out these functions.

Section 7. System of Incentives and Rewards. — A system of annual incentives
and rewards is hereby established in order to motivate and inspire public servants to
uphold the highest standards of ethics.

The following awards categories shall be conferred to public service exemplars with
the corresponding rewards and incentives:

(a) Awards for Outstanding Work Performance

a.1 Presidential or Lingkod Bayan Award — the awardee/s shall receive
a gold-glided medallion and a plaque containing the citation of the
President of the Republic of the Philippines, cash reward and other
forms of rewards and incentives as may be determined by the
Committee.

a.2 CSC or Pagasa Award — the awardee/s shall receive a gold-glided
medallion, a plaque containing the citation and signature of the
Chairperson of the CSC provided under Section 6 (b) of the Omnibus
Rules Implementing Book V of Executive Order No. 292, and a cash
reward as may be determined by the Committee.

(b) Award for Exemplary and Ethical Behavior

b.1 Outstanding Public Servants Award or Dangal ng Bayan Award —
the awardeels shall receive a trophy, a cash reward and other forms of
rewards and incentives provided for in the following paragraph of this
Act.


The conferment of awards shall take into account, among other things,
the following: the years of service and the quality and consistency of
performance, the obscurity of the position, the level of salary, the
unique and exemplary quality of a certain achievement, and the risks or
temptations inherent in the work.

Other Incentives and rewards may also be given in the form of
bonuses, citations, directorships in government-owned or controlled
corporations, local and foreign scholarship grants, paid vacations and
the like. President Lingkod Bayan and Dangal ng Bayan awardees
shall likewise be automatically promoted to the next higher position
with the commensurate salary suitable to their qualifications. In case
there is no next higher position or it is not vacant, said position shall be
included in the budget of the office in the next General Appropriations
Act.

Section 8. Prohibited Acts and Transactions. — \n addition to acts and omissions
of public servants now prescribed in the Constitution and existing laws, the following
shall constitute prohibited acts and transactions of any public servant and are hereby
declared to be unlawful:

(a) Financial and material interest. — Public servants shall not, directly or
indirectly have any financial or material interest in any transaction requiring
the approval of their office.

(b) Outside employment and other activities related thereto. — Public servants
during their incumbency shall not:

(1) Own, control, manage or accept employment as officer, employee,
consultant, counsel, broker, agent, trustee or nominee in any
private enterprise regulated, supervised or licensed by their office
unless expressly allowed by law;

(2) Engage in the private practice of their profession unless authorized
by the Constitution or law, provided, that such practice will not
conflict or tent to conflict with their official functions; or

(3) Recommend any person to any position in a private enterprise
which has a regular or pending servant transaction with their office.

These prohibitions shall continue to apply for a period of one (1) year after
resignation, retirement, or separation from public office, except in the case of
subparagraph (b) (2) above, but the professional concemed cannot practice his


profession in connection with any matter before the office he used to be with, in
which case the one-year prohibition shall likewise apply.

The prohibition on outside employment shall not apply to those working under job
orders or contracts of service.

(c) Disclosure and/or misuse of confidential information. — Public servants
shall not use or divulge, confidential or classified information servantly
known to them by reason of their office and not made available to the
public, either:

(1) To further their private interests, or give undue advantage to
anyone; or

(2) To prejudice the public interest.

(d) Solicitation or acceptance of gifts. — Public servants shall not solicit or
accept, directly or indirectly, any gift, favor, entertainment, loan or anything
of monetary value from any person in the course of their servant duties or
in connection with any operation being regulated by, or any transaction
which may be affected by the functions of their office.

As to gifts or grants from foreign governments, the Congress consents to:

(i) The acceptance and retention by a public servant a gift of nominal
value tendered and received as a souvenir or mark of courtesy;

(ii) The acceptance by a public servant of a gift in the nature of a
scholarship or fellowship grant of medical treatment; or

(iii) The acceptance by a public servant of travel grants or expenses for
travel taking place entirely outside the Philippines (such as allowances,
transportation, food and lodging of more than nominal value if such
acceptance is appropriate or consistent with the interest of the
Philippines, and permitted by the head of office, branch or agency to
which he belongs.

The ombudsman shall prescribe such regulations as may be necessary to carry out
the purpose of this subsection, including pertinent reporting and disclosure
requirements.

Nothing in this Act shall be constructed to restrict or prohibit any educational,
scientific or cultural exchange programs subject to national security requirements.


Section 9. Statements of Assets and Liabilities and Financial Disclosure. — All
public servants, except those who serve in an honorary capacity, shall file under oath
their Statement of Assets, Liabilities and Net Worth and a Disclosure of Business
Interests and Financial Connections and those of their spouses and children or
partners, regardless of their legal status.

The SALN shall contain information on the following:

(a) Personal details including that of spouse and children;

(b) Real property, its improvements, acquisition costs, assessed value and
current fair market value;

(c) Personal property and acquisition costs;

(d) All other assets such as cash on hand or in banks, whether in local or
foreign currency, stocks, bonds and investments, and the like;

(e) Liabilities, and;

() All business interests and financial connections.

The SALN shall be filed with the Office of the Ombudsman:

(a) Within thirty (30) days after assumption of office;
(b) On or before April 30, of every year thereafter; and
(c) 30 days before the effectivity date of separation from service.

The Ombudsman, CSC, and COA is hereby empowered to obtain at any time, all
documents as may show the declarant’s assets, liabilities, net worth, and business
interests and financial connections, commencing from the time the declarant was
employed or engaged by the government, from all agencies banks, and financial
institutions, whether private or public.

Husband and wife who are both public servants may file the required statements
jointly or separately.

(8) Identification and disclosure of relatives. — It shall be the duty of every public
servant to identify and disclose, to the best of one’s knowledge and information,
relatives in the Government in the form, manner and frequency prescribed by the
Civil Service Commission.

(C) Accessibility of documents. —
(1) Any and all statements filed under this Act, shall be made available

for inspection during working hours and subject only to reasonable
conditions to be determined by the Code of Conduct Committee.


(2) Such statements shall be made available for copying or
reproduction after ten (10) working days from the time they are filed
as required by law.

(3) Any person requesting a copy of a statement shall be required to
Pay a reasonable fee to cover the cost of reproduction and mailing
of such statement, as well as the cost of certification.

(4) Any statement filed under this Act shall be available to the public for
a period of ten (10) years after receipt of the statement. After such
period, the statement may be disposed unless needed in an
ongoing investigation.

In the case of the President, the Vice-President, the Members of the Cabinet, the
Congress, the Supreme Court, the Constitutional Commissions and other
constitutional offices, and officers of the armed forces with general or flag rank, the
declaration shall be disclosed to the public in the most accessible and convenient
medium (e.g. website).

(D) Prohibited acts. - It shall be unlawful for any person to obtain or use any
statement filed under this Act for:

(a) Any purpose contrary to morals or public policy; or
(b) Any commercial purpose other than by news and communications media
for dissemination to the general public.

Section 10. Divestment. — A public servant shall avoid conflicts of interest at all
times. When a conflict of interest arises, he shall resign from his position in any
private business enterprise within thirty (30) days from his assumption of office
and/or divest himself of his shareholdings or interest within sixty (60) days from such
assumption.

The same rule shall apply where the public servant is a partner in a partnership.
Section 11. Review and Compliance Procedure in the Filing and Submission of
the Statement of Assets, Liabilities and Net Worth and Disclosure of Financial
and Business Interest. —

a. All public servants shall file under oath their Statement of Assets,
Liabilities and Net Worth and Disclosure of Financial and Business Interest
with their respective Chief/Head of Personnel/Administrative Division/Unit
or Human Resource Management Office:

i. Within thirty (30) days after assumption of office;

12


ii, On or before April 30, of every year thereafter;
ili, Thirty (30) days before the effectivity date of separation from the
service.

. All public servants are strictly required to fill in all applicable information
and make a true and detailed statement in their Statement of Assets,
Liabilities and Net Worth and Disclosure of Financial and Business
Interest.

Upon receiving their Statement of Assets, Liabilities and Net Worth and
Disclosure of Financial and Business Interests, the Chief/Head of
Personnel/Administrative Division/Unit or Human Resources Management
Office shall forward the same to the Review and Compliance Committee.

|. Each officelagency shall have a Review and Compliance Committee,
which shall be composed on one (1) Chairman and two (2) members.

. The Review and Compliance Committee shall be designated and

authorized by the head of agency to receive the Statement of Assets,
Liabilities and Net Worth and Disclosure of Financial and Business Interest
and to evaluate if the same has been submitted on time, complete and in
proper form.
The Review and Compliance Committee shall prepare a list of the
following public servants, in alphabetical order, to the head of agency,
copy furnished the Civil Service Commission (Office of the Ombudsman),
on or before May 15 of every year:

i. Those who filed their SALNs with complete date;

ji, Those who filed their SALNs but with incomplete date; and

iii. Those who did not file their SALNs

|. Within five (5) days from receipt of the aforementioned lists, it shall be the
ministerial duty of the head of agency to issue an order requiring those
who have incomplete data in their SALNs to correct/supply the desired
information and those who did not file/submit their SALNs to comply within
a non-extendable period of thirty (30) days from receipt of said order.
Assets and/or properties acquired, donated or transferred in the names of
the declarant for a particular year, but were not declared on one’s SALN
for that year, as the same cam to one's knowledge only after such filing,
correction and/or submission, must be declared or reflected in the
declarant's next or succeeding SALN.

. Failure of public servant to correct/submit one’s SALN in accordance with
the procedure and within the given period pursuant to the directive in
paragraph g hereof shall be ground for a disciplinary action and meted
with the following penalties.


a. First Offense — Suspension of one (1) month and one (1) day to six
(6) months
b. Second Offense — Dismissal from the service

Public servants who fail to comply within the thirty (30) day period required
under paragraph g hereof or who submit their SALNs beyond the said period
shall be considered as not having filed their SALNs, and shall be made liable
for the offense of Failure to File SALN with a penalty of suspension of one (1)
month and one (1) day to six (6) months for the first offense, and dismissal
from the service for the second offense. Heads of agencies/offices who fail to
comply with the provisions of Section 10 hereof, shall be liable for Simple
Neglect of Duty, which shall be punishable by suspension of one (1) month
and one (1) day to six (6) months for the first offense, and dismissal from the
service for the second offense.

i. The Review and Compliance Committee shall transmit all original copies
of the SALNs received on or before June 30 of every year to the Office of
the Ombudsman.

A public servant is presumed to be engaged in corrupt activities or practices if he/she
is living in a lavish lifestyle and/or there is gross disproportion of assets to income.\

Section 12. Reward and Protection to Whistleblower. — Any person who exposes
wrongdoings or corruption against another public servant, agency, board, or entity
shall: (1) be protected from any retaliation; (2) be rewarded with a reasonable portion
(maximum of 1) of the amount recovered in the exposed corrupt practice or activity.
For this purpose, the identity of the whistleblower shall not be unreasonably
disclosed.

To qualify for the protection, and reward, the whistleblower must provide truthful and
sufficient information for the commencement of an inquiry or filing of a case before
any court, body or tribunal.

Any person who is found guilty to have applied retaliation against a whistleblower
public servant shall suffer a penalty of imprisonment of six years and one day to
twelve years.

Section 13. Penalties. —

(a) Any public servant, regardless of whether or not he holds office or
employment in a casual, temporary, holdover, permanent or regular capacity,
committing any violation of this Act shall be punished with a fine or
suspension not exceeding one (1) year or removal depending on the gravity of
the offense after due notice and hearing by the appropriate body or agency. If

14


the violation is punishable by a heavier penalty under another law, he shall be
prosecuted under the latter statue. Violations of Sections 7, 8 or 9 of this Act
shall be punishable with imprisonment not exceeding twelve (12) years, or a
fine to be fixed in the rules and regulation of this Act, or both, and perpetual
disqualification to hold public office.

(b) Any violation hereof proven in a proper administrative proceeding shall be
Sufficient cause for removal or dismissal of a public servant, even if no
criminal prosecution is instituted against him.

(c) Private individuals who participate in conspiracy as co-principals,
accomplices or accessories, with public servants, in violation of this Act shall
be subject to the same penal liabilities as the public servants and shall be
tried jointly with them.

(d) The public servant concerned may bring an action against any person who
obtains or uses a report for any purpose prohibited by Section 8 (D) of this
Act. The Court in which such action is brought may assess against such
person a penalty in any amount not to exceed twenty-five thousand pesos
(P25,000). If another sanction hereunder of under any other law is heavier,
the latter shall apply.

Section 14, Promulgation of Rules and Regulations, Administration and
Enforcement of this Act. — The Civil Service Commission and the Ombudsman
shall promulgate the rules and regulations necessary to carry out the provisions of
this Act within one (1) year from date of promulgation. The CSC shall have the
primary and exclusive jurisdiction and responsibility for the administration and
enforcement of this Act. It shall transmit all cases for prosecution arising from
violations of this Act to the proper authorities for appropriate action: Provided,
however, that it may institute such administrative actions and disciplinary measures
as may be warranted in accordance with law.

Section 15. Appropriations. — The sum necessary for the effective implementation
of this Act shall be taken from the appropriations of the Civil Service Commission.
Thereafter, such sum as may be needed for its continued implementation shall be
included in the annual General Appropriations Act.

Section 16. Separability clause. — If any provision of this Act or the application
such provision to any person or circumstance is declared invalid, the remainder of
the Act or the application of such provision to other persons or circumstances shall
not be affected by such declaration.


Section 17. Repealing Clause. — All laws, decrees and orders or parts thereof
inconsistent herewith, are deemed repealed or modified accordingly, unless the
same provide for a heavier penalty.

Section 18. Effectivity. —- This Act shall take effect after thirty (30) days following the
completion of its publication in the Servant Gazette or in two (2) national newspapers
of general circulation.

Approved,