FIFTEENTH CONGRESS OF THE REPUBLIC) 
OF THE PHILIPPINES 
) 
First Regular Session 
) 
SENATE 
Senate Bill No. 659 
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INTRODUCED BY SEN. JINGGOY EJERCITO ESTRADA 
EXPLANATORY NOTE 
To enhance transparency and accountability in government, 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. 
The financial guidelines shall serve as tools to anticipate, prevent and/or 
minimize certain eventualities that may adversely affect the financial condition of 
the corporation. Additionally, these 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 public resources. 
In view of the foregoing, the early passage of this bill is earnestly sought. 
OY EJERCITO ESTRADA 
Senator 


FIFTEENTH CONGRESS OF THE REPUBLIC) 
OF THE PHILIPPINES 
) 
First Regular Session 
) 
SENATE 
Senate Bill No. 659 
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INTRODUCED BY SEN. JINGGOY EJERCITO ESTRADA 
" 
AN ACT 
DIREGTING 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 assembled: 
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 instrument 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 
Departm"ent 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 govern merit 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 fifteen (15) days after its 
publication in the Official Gazette or in at least two (2) newspapers of general 
circulation whichever comes earlier. 
Approved,