SIXTEENTH CONGRESS OF THE REPUBLIC 
OF THE PHILIPPINES 
First Regular Session 
SENATE 
Senate Bill No, 139 7 
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) 
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INTRODUCED BY SEN. JINGGOY EJERCITO ESTRADA 
EXPLANATORY NOTe 
'13 
AUG 29 
;19 :~7 
The Constitution provides that ':4 public officer or emp}oY8e, shall, upon 
assumption of office and as often thereafter as may be required by law, submit a 
declaration under oath of his assets, liabilities and net worth. 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 
disclosedtb the public in the manner provided by law. " 
In complying with this constitutional provision under the enabling law 
Republic Act No. 6713, many public::,.officials complacently submit statements of 
assets, liabilities and net worth which do not reflect their actual wealth or lifestyle. 
Often times this act is intended to hide iIIcgotten wealth. The common practice is 
to place an asset in the name of a dummy, who is usually a close relative of the 
public official. 
This bill seeks to remedy this prevalent corrupt practice by imposing the 
penalty of removal from public office on a public official who places any of his/her 
assets in the name of dummies. A.public official who does so shall forfeit all his 
rights to the property in favor of the dummy. Public officials shall also be 
prohibited from acquiring any property from a relative within the tenth (10th) civil 
degree of consanguinity or affinity, 'bile holding public office and within twenty 
(20) years from the time he/she Ie :~~~e civil service. This may be an effective 
way of punishing the public official f r,;ijis deviousness. 
-Tl l-1:-
Immediate approval of this bil is earnestly sought. 
Senator 


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SIXTEENTH CONGRESS OF THE REPUBLIC 
OF THE PHILIPPINES 
) 
) 
) 
~ih;f llf Hltl->rn"bf\l 
First Regular Session 
'13 
AUG 29 A 9 :47 
SENATE 
Senate Bill No.' 13 9 '7 
REcrr\·'FO BY:. Y 
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V- ' 
INTRODUCED BY SEN. JINGGOY EJERCITO ESTRADA 
AN ACT 
AMENDING REPUBLIC ACT NO. 6713, AtSO KNOWN AS AN ACT 
ESTABLISHING A CODE OF CONDUCT AND ETHICAL STANDARDS FOR 
PUBLIC OFFICIALS AND EMPLOYEES, TO UPHOLD THE TIME-HONORED 
Pl{INCIPLE OF POsue OFFICE BEING A P-UBUC TRUST, GRANTING 
INCENTIVES AND REWARDS FOR EXEMPLARY SERVICE, ENUMERATING 
PROHIBITED ACTS AND TRANSACTIONS, PROVIDING PENAL TIES FOR 
VIOLATIONS THEREOF AND FOR OTHER PURPOSES 
Be it enacted by the Senate and House of Representatives of the Philippines in 
Congress assembled: 
SECTION 1. Republic Act No. 6713 is, hereby amended by the addition of 
the following provisions: 
"SECTION 11-A. ASSETS IN THE NAME OF DUMMIES. 
"(A) THE PENALTY OF REMOVAL FROM PUBLIC OFFICE 
SHALL BE IMPOSED UPON A PUBLIC OFFICIAL WHO PLACES 
ANY OF HIS OR HER ASSETS IN THE NAME OF A DUMMY. 
"(B) A PUBLIC OFFICIAL WHO PLACES AN ASSET IN 
THE NAME OF A DUMMY SHALL BE ESTOPPED FROM 
CLAIMING ANY INTEREST AND ASSERTING ANY RIGHT OF 
OWNERSHIP OVER SUCH ASSET. SUCH ASSET SHALL BE 
FORFEITED IN FAVOR OF THE DUMMY WHO SHALL BE 
RECOGNIZED BY LAW AS THE ACTUAL AND REAL OWNER OF 
THE PROPERTY. 
"SEC. 11-B. DISQUALIFICATION OF PUBLIC OFFICIAL FROM 
ACQUIRING 
PROPERTY 
FROM 
RELATIVES. 
-
PUBLIC 
OFFICIALS 
ARE 
PROHIBITED 
FROM 
ACQUIRING 
ANY 
PROPERTY FROM A RELATIVE WITHIN THE TENTH (10TH) 
CIVIL DEGREE OF CONSANGUINITY OR AFFINITY, WHILE 
HOLDING PUBLIC OFFICE AND WITHIN TWENTY (20) YEARS 
FROM THE TIME HE OR SHE lEFT THE CIVIL SERVICE. 
PROPERTY ACQUIRED IN VIOLATION OF THIS SECTION 
SHALL NOT VEST OWNERSHIP UPON THE PUBLIC OFFICIAL 
AND ALL HIS SUBSEQUENT TRANSACTIONS AND DEALINGS 
ON THE SAID PROPERTY SHALL BE VOID AB INITIO. THE 
RELATIVE FROM WHOM THE PROPERTY COMES SHALL 


RETAIN ALL RIGHTS OF OWNERSHIP WITH RESPECT TO THE 
PROPERTY." 
SEC. 2. Separability Clause. - If any provision, or part hereof, is held 
invalid or unconstitutional, the remainder of the law or the provision not otherwise 
affected shall remain valid and subsisting. 
SEC. 3. Repealing Clause. - Any law, presidential decree or issuance, 
executive order, letter of instruction, administrative order, rule or regulation 
contrary to or inconsistent with the provisions of this Act is hereby repealed, 
modifje'd·tw~men'<:ledaCCO'rdjnY'ly: 
SEC. 4~ EffectiVity Clause. - This Act shalrtake effect fifteen (15) days 
after its publication in at least two (2) newspapers of general circulation. 
Approved,