FOURTEENTH CONGRESS OF THE REPUBLIC’ . ’  ) 
First Regular Session 
OF THE PHILIPPINES 
S E N A T E  
S. No. 
................................................................................................ 
Introduced by Senator Biazon 
Explanatory Note 
The Constitution provides under Section 7, Art. XVI, that: 
“The State shall immediate and adequate care, benefits, and other 
forms of assistance to war veterans and veterans of military campaigns, 
fheir surviving spouses and orphans. x x x” 
But despite said mandate, the government has miserably failed to provide the 
veterans and military retirees with adequate compensation and assistance. 
The veterans risked their lives defending our country during World War II. 
Military retirees on the other hand struggled to uphold democracy by battling the 
enemies of the State. Their commitment to the nation is a value that the State 
must recognize and cherish, yet it is unconscionable that the State regularly fails 
to recognize these sacrifices by the simple gesture of ensuring adequate care, 
assistance and benefits. 
The national government over the past 15 $ears owes war veterans and 
military retirees around P42 Billion in pension and other benefits. The Philippine 
Veterans Affairs Office (PVAO) under the Department of National Defense 
reported that for the year 2005 alone, there is about four to five billion peso 
inadequacy in its appropriations. 
The act of appropriating funds through the national budget for this purpose 
is obviously insufficient. The funding requirements for the veterans and military 
retirees will continuously grow over the years. As such, it is necessary to find 
creative ways to utilize government assets to address these needs. 
This bill, through the utilization of proceeds coming from the development, 
lease or use of certain government properties, would enable the government to 
respond to its obligation to veterans and military retirees without putting 
additional pressure to the chronic budgetary deficit. 
In view thereof, passage of this bill is earnestly sought. 
RODOLFO &IAZON 
Senator 


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FOURTEENTH CONGRESS OF THE REPUBLIC 
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OF THE PHILIPPINES 
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First Regular Session 
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S E N A T E  
S. No. 
Introduced by Senator Biazon 
I 
AN ACT 
MANDATING THE USE OF THE PROCEEDS FROM THE DEVELOPMENT, 
LEASE OR USE OF CERTAIN GOVERNMENT PROPERTIES FOR PAYMENT 
OF PENSIONS AND OTHER BENEFITS OF THE VETERANS AND FOR 
OTHER PURPOSES. 
Be it enacted by the Senate and House of Representatives of the 
Philippines in Congress assembled: 
Section One. Coverage. - This Act shall apply to the lease, development 
or use, as the case may be, of the following government properties: 
a. 
The former site of the Philippine Veterans Affairs Office (PVAO) at 
Arroceros St, Ermita, Manila; 
b. 
c. 
The Taguig Industrial Estate. 
Sec. 2. Utilization of Proceeds for Veterans and Military Retirees' Pension 
and Benefits. -All proceeds from the lease, development or use of the aforesaid 
properties 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 the payment of said pension and 
benefit shall continue to be assumed by the national government from other 
sources; Provided further, that all proceeds and receipts under this Act, excluding 
operational expenses, shall be remitted directly to the Philippine Veterans Bank 
as the depository bank and managed by the PVAO as administrator. 
The Veterans Memorial Medical Center in Quezon City; and 
Sec. 3. Duties of the PVAO. - The PVAO Administrator is hereby 
authorized to direct, supervise and coordinate private sector participation in the 
lease, development or use of the aforesaid properties; to secure possession of 


and the preservation of the same; to engage external expertise as may be 
necessary; and, to submit periodic reports thereon to the Department of National 
Defense (DND). 
Sec. 4. Rules and Regulations. - The Secretary of National Defense, the 
Secretary of Budget and Management and the Secretary of Finance shall 
formulate the rules and regulations necessary to implement the provisions of this 
Act. 
Sec. 5. Separability Clause. - If for any reason, any section or provision 
of this Act is declared invalid or unconstitutional, the other sections or provisions 
hereof, unaffected thereby, shall continue to be in full force and effect. 
Sec. 6. Repealing Clause. - All laws, executive issuances or parts 
thereof inconsistent with this Act are hereby repealed or amended accordingly. 
Sec. 7. €ffecfivify. - This Act shall take effect fifteen (15) days after its 
complete publication in the Official Gazette or in at least two (2) newspaper of 
general circulation. 
Approved,