TWENTIETH CONGRESS 
) 
REPUBLIC OF THE PHILIPPINES ) 
First Regular Session 
) 
HOUSE OF REPRESENTATIVES 
Introduced by Representative Rufus B. Rodriguez and 
Representative Maximo B. Rodriguez, Jr. 
House Bill No.  _____ 
EXPLANATORY NOTE 
There have been a number of former officials of the government who took part in the 
negotiation for loans with our foreign and domestic creditors, who were later employed by 
these financial institutions. 
Considering the amount involved are billions of dollars and to avoid conflict of interest 
in the negotiations with our foreign creditors, it is imperative that the State shall regulate the 
right of our financial managers and negotiators to be employed with the domestic and 
international financial institutions that extended loan to our government. 
Our financial managers and debt negotiators have access to vital information, which 
these financial institutions could use against the economic and financial interest of the 
Philippine government.  The prospect of being employed by these financial institutions after 
retirement or separation from the government might also influence our incumbent officials in 
their negotiation either for new loan or debt restructuring, with our foreign and domestic 
creditors, by accommodating the interest of the creditors to the prejudice of the government. 
This bill seeks to prohibit and penalize retired and incumbent officials of the Philippine 
government from employment with our international and domestic creditors.  It also seeks to 
promote nationalist consciousness among our people and a higher sense of ethical standard 
among our economic and financial managers.  It will partly implement the constitutional 
mandate to “develop a self-reliant and independent national economy effectively controlled by 
Filipinos.” (Art. II. Sec. 19). 
In view hereof, the early passage of this proposed measure is highly recommended. 
 RUFUS B. RODRIGUEZ 
  MAXIMO B. RODRIGUEZ, JR. 
July 29, 2025
12:37 pm
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TWENTIETH CONGRESS 
) 
REPUBLIC OF THE PHILIPPINES ) 
First Regular Session 
) 
HOUSE OF REPRESENTATIVES 
Introduced by Representative Rufus B. Rodriguez and 
Representative Maximo B. Rodriguez, Jr. 
 
House Bill No.  _____
AN ACT 
PROHIBITING RETIRED AND INCUMBENT OFFICIALS OF GOVERNMENT 
FROM ACCEPTING EMPLOYMENT WITH INTERNATIONAL AND DOMESTIC 
CREDITORS 
Be it enacted by the Senate and House of Representatives of the Philippines in 
Congress assembled: 
SEC. 1.  Declaration of Policy. – The 1987 Constitution mandates for a self-reliant 
and independent national economy effectively controlled by Filipinos.  Towards this end, the 
State shall ensure that government officials who negotiated with the foreign and domestic 
creditors should not be allowed to be employed, within a prescribed period, with financial 
institutions over which they have negotiated in the past to avoid conflict of interest which is 
tantamount to economic treason.  
SEC. 2.   Prohibition on the Employment of Retired Officials with International 
and Domestic Creditors. –   Retired officials of the government who have participated or 
whose office has participated directly or indirectly in the negotiation with international and 
domestic creditors are hereby prohibited to be employed with the foreign and domestic 
creditors of the Philippine government within two (2) years from their retirement or 
separation from the government.  The prohibition on employment shall include consultancy, 
contract of services, management contract or similar agreements or schemes. 
SEC.  3.  Prohibition on the Employment of Incumbent Officials with International and 
Domestic Creditors. – Incumbent officials of the government who have participated or 
whose office has participated directly or indirectly in the negotiation with international and 
domestic creditors are hereby prohibited to be employed with the foreign and domestic 
creditors of the Philippine government while in government service and within two (2) 
years from their resignation or separation therefrom.  The prohibition on employment shall 
include consultancy, contract of services, management contract or similar agreements or 
schemes. 
SEC. 4.   Penal Provision. -  Any person violating any of the provisions of this Act shall be 
liable for imprisonment for a period of one (1) year to five (5) years at the discretion of 
the court and forfeiture of the instruments or fruits of the offense in favor of the State, 
including the salaries and all benefits received as a result of his employment with the foreign 
or domestic creditor. 
SEC. 5.  Separability Clause. -  If any provision of this Act shall be declared 
unconstitutional, no other provisions shall be affected thereby. 
SEC. 6. Repealing Clause. -  All laws, executive orders, rules and regulations or parts 
thereof which are inconsistent with this Act are hereby repealed or modified accordingly. 
SEC. 7.  Effectivity. -   This Act shall take effect fifteen (15) days from the date of its 
publication in the Official Gazette or in any newspaper of general circulation, whichever 
comes earlier. 
Approved, 
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