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Introduced by Representatives

DIOSDADO MACAPAGAL ARROYO and GLORIA MACAPAGAL ARROYO

SIXTEENTH CONGRESS
First Regular Session

House Bill No._ 1385

AN ACT
TO STRENGTHEN THE OFFICE OF THE GOVERNMENT CORPORATE
COUNSEL BY RE-DEFINING, EXPANDING, STRENGTHENING,
RATIONALIZING AND FURTHER PROFESSIONALIZING Its
ORGANIZATION, UPGRADING EMPLOYEE BENEFITS AND.
APPROPRIATING FUNDS THEREFOR AND FOR OTHER PURPOSES.

EXPLANATORY NOTE

Since its inception during the Commonwealth Period until such time it
became a mere division under the Department of Justice, the Office of the
Government Corporate Counsel (OGCC) has evolved into an entity which plays a
vital role in the country's justice system. [It has grown over the years and
oversees and provides legal services to approximately 600 government-owned
and controlled corporations, government instrumentalities with corporate powers,
government financial institutions and government corporate entities, their
subsidiaries and corporate offsprings (to be referred hereinafter as “government
corporations’).

Executive Order No. 292, otherwise known as the Administrative Code of
1987, expressly defines the mandate of the OGCC, in particular, (1) to act as the
principal law office of all government corporations and (2) exercise control and
supervision over all legal departments or divisions thereof maintained separately.
Later executive issuances further strengthened and enhanced OGCC’'s mandate
and responsibilities over the legal affairs of various government corporations.
And given the crucial and important role of these corporations in the country's



economic growth and development being the primary vehicles in the
implementation of vital government projects, the OGCC is in dire need of
augmentation to provide better services its clientele corporations.

There has been a substantial increase in the volume, complexity and the
importance of the OGCC’s mandate due to escalating demands of government
activities and transactions. Statistics show that the OGCC responds to and
handles an increasing number of requests for legal advice and cases per year, in
addition to the performance of its adjudicatory and other functions. The work in
the OGCC is presently performed by its current complement of only 57 lawyers
which includes the Government Corporate Counsel himself and augmented by
administrative support personnel of 69 employees.

A timely increase in its personnel and a corresponding adjustment in their
compensation and benefits are imperative in maintaining the OGCC's
effectiveness and to help it adapt to the continuous changing conditions of the
legal service. It is therefore clear that there is an urgent need to re-define and
strengthen its mandate by streamlining, further professionalizing and rationalizing
its functions and organization. It is of the utmost importance when the public
interest is protected as a result of a more effective and efficient OGCC.

In view of the foregoing reasons, we urge our colleagues for the
expeditious approval of this measure

i
DIOSDADO'MACAPAGAL ARROYO GLORIA MACAPAGAL ARROYO

Second District, Camarines Sur Second District, Pampanga


Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City

SIXTEENTH CONGRESS
First Regular Session

House Bill No. 1385

Introduced by Representatives
DIOSDADO MACAPAGAL ARROYO and GLORIA MACAPAGAL ARROYO

AN ACT
TO STRENGTHEN THE OFFICE OF THE GOVERNMENT CORPORATE
COUNSEL BY RE-DEFINING, EXPANDING, STRENGTHENING,
RATIONALIZING AND FURTHER PROFESSIONALIZING ITs
ORGANIZATION, UPGRADING EMPLOYEE BENEFITS AND
APPROPRIATING FUNDS THEREFOR AND FOR OTHER PURPOSES

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

SECTION 1. Declaration of Policy. - It shall be the policy of the State to
protect and promote the welfare, rights and interests of government-owned and
controlled corporations, their subsidiaries, other corporate offsprings, including
government acquired asset corporations, government corporate entities and
government instrumentalities with corporate powers, government financial
institutions, and other government entities, agencies and offices hereafter
referred to as “government corporations”

Toward this end, the State shall require the improvement of legal services
in the government to efficiently and effectively address the expanding needs of
these government corporations in accordance with its initiative towards an
improved fiscal management and good corporate governance.


SECTION 2. Jurisdiction and Mandate. - Any law to the contrary
notwithstanding, the Office of the Government Corporate Counsel ("OGCC’) shall
be the legal counsel and principal law office of all government corporations. All
government corporations shall refer to the OGCC the following:

a) All legal questions for opinion and advice;
b) Prior to their execution, all contracts for review; and

©) All cases for representation before regular courts, quasi-judicial bodies,
administrative agencies and arbitral tribunals, Provided, That: the
Government Corporate Counsel ("GCC") may thereafter authorize the
legal department of the government corporation as collaborating counsel
to handle cases, as the urgency or expediency of circumstances may
warrant.

In addition, the OGCC shall:

a) Conciliate, mediate, arbitrate or adjudicate all disputes or controversies
exclusively between government corporations;

b) Exercise control and supervision over the legal departments of all
government corporations;

c) Approve the engagement of services of private lawyers by the government
corporations; and

d) Enforce the Property Insurance Law pursuant to Republic Act No, 656, as
amended by Presidential Decree No. 245, in domestic or international
transactions.

The OGCC shall be an independent and autonomous office attached to
the Department of Justice. All opinions and issuances of the OGCC shall be
binding on all government corporations.

SECTION 3. Expansion and Upgrading of Positions. - The GCC shall have
a cabinet rank and the same prerogatives, salary, allowances, benefits and
privileges as the Presiding Justice of the Court of Appeals. He/she shall be
assisted by a Deputy Government Corporate Counsel (“DGCC”) and twelve (12)


Assistant Government Corporate Counsels (‘AGCC’) who shall have the rank,
salary, allowances, retirement and benefits, and privileges of an Associate
Justice of the Court of Appeals.

No person shall be appointed GCC, DGCC or AGCC unless he/she is a
natural-born citizen of the Philippines and, for at least ten (10) years, has been
engaged in the practice of law in the Philippines.

The number, rank, qualifications for appointment, salary, allowances,
retirement and other benefits, and privileges of the other members of the legal
staff shall be as follows:

a) Twenty (20) Government Corporate Attorney IV (the “GCA IV") who shall
have the rank, salary, allowances, retirement and benefits, and privileges
of a Regional Trial Court Judge. No person shall be appointed GCA IV
unless he/she is a natural-born citizen of the Philippines and, for at least
eight (8) years, has been engaged in the practice of law in the Philippines;

b) Twenty (20) Government Corporate Attorney 111 (the GCA III") who shall
have the rank, salary, allowances, retirement and benefits, and privileges
of a Metropolitan Trial Court Judge. No person shall be appointed GCA II
unless he/she is a natural-born citizen of the Philippines and, for at least
five (5) years, has been engaged in the practice of law in the Philippines;

°)

Twenty (20) Government Corporate Attorney II (the “GCA II") who shall
have the rank, salary, allowances, retirement and benefits, and privileges
of a Municipal Trial Court Judge in Cities. No person shall be appointed
GCA Il unless he/she is a natural-born citizen of the Philippines and, for at
least four (4) years, has been engaged in the practice of law in the
Philippines;

qd

Ten (10) Government Corporate Attorney | (the “GCA I") who shall have
the rank, salary, allowances, retirement and benefits, and privileges of a
Municipal Trial Court Judge. No person shall be appointed GCA | unless
he/she is a natural-bom citizen of the Philippines and, for at least three (3)
years, has been engaged in the practice of law in the Philippines;

e)

Seven (7) Associate Government Corporate Attorney II who must be
members of the Philippine Bar and, for at least two (2) years, has been
engaged in the practice of law in the Philippines; and,


f) Five (6) Associate Government Corporate Attorney | who must be
members of the Philippine Bar and, for at least one (I) year, has been
engaged in the practice of law in the Philippines.

The GCC shall serve for a fixed term of six (6) years reckoned from the
date of his/her appointment. The fixed term of the GCC shall apply and
commence to appointments to the said position beginning July 1, 2013.

The GCC, DGCC and AGCC shall be appointed by the President of the
Philippines. The other members of the legal staff and administrative personnel
shall be appointed by the GCC. Appointments of the DGCC, AGCC and other
members of the legal staff shall be deemed permanent upon compliance with the
qualification standards heretofore stated.

The administrative structure of the OGCC shall be organized into the
Finance and Accounting Services, the Human Resource and Management
Services, the Case and Records Management Services, the Library Management
and Information Technology Services and the Property and Supply Services.

The legal and non-legal staff of the OGCC occupying the positions
affected by the changes embodied in this Act at the time of its approval shall
thereafter occupy and discharge the duties and functions of the upgraded
positions and receive the corresponding salary and benefits without necessity of
new appointment.

SECTION 4. Compensation. - The basic monthly compensation of the
legal staff shall be as follows:

Position Salary Grade
From To
Government Corporate Counsel 30 31
Deputy Government Corporate Counsel 29 30
Assistant Government Corporate Counsel 29 30
Government Corporate Attorney IV 28 29
Government Corporate Attorney III 27 28
Government Corporate Attorney II 26 27
Government Corporate Attorney | 25 26
Associate Government Corporate Attorney | 22 24


Associate Government Corporate Attorney II 18 23

The non-legal personnel shall have the same compensation as that of
their counterparts in the Office of the Solicitor General and Court of Appeals.

The salaries and privileges of the personnel of the OGCC granted under
this Act may further be increased to match any corresponding increase in
salaries and privileges subsequently granted to their respective counterparts in
the judiciary

SECTION 5. Personnel Benefits and Privileges. — Provisions of other laws
to the contrary notwithstanding, the OGCC may provide its employees the
following benefits:

|. Health care services through a health maintenance organization (HMO).
Expenses for the mandatory medical annual check-up of the GCC, the
DGCC and the AGCC shall be for the account of the office.

Il. Accident insurance for all employees to be procured by the office at its
‘own expense during travels while in the performance of official duties;

lll. Without prejudice to the efficiency of the service, scholarships for
deserving employees on official time and at the expense of the office
to upgrade their knowledge and skills; Provided That, scholars under
this provision shall be selected on the basis of merit as determined by
competitive examination;

IV. A provident fund which shall consist of, but not be limited to contributions
made by the office and by its lawyers and employees to a common
fund for the payment of benefits to such lawyers or employees or their
respective beneficiaries/heirs.

SECTION 6. Seminar and other Professional Fees. - Subject to availability
of funds, fees for relevant seminars, as well as professional membership fees for
lawyers, registration fees and related miscellaneous expenses incurred in
completing the mandatory continuing legal education (MCLE) shall be borne by
the office. Professional membership, registration fees including those for
mandatory continuing professional education (CPE), and related miscellaneous
expenses of other employees holding positions for which a professional license is
required by the office, shall also be borne by the OGCC.


SECTION 7. Transportation Benefits. — Subject to the availability of funds,
employees shall be provided with contracted transportation services until such
time as the office can procure additional motor vehicles for this purpose

SECTION 8. Other Benefits. - Provisions of other laws to the contrary
notwithstanding, the legal staff of the OGCC are allowed to receive allowances
and honoraria from its client-government corporations. Employees of the OGCC
may likewise be extended such benefits and privileges as are given to the
employees of their clients.

When the exigency of the service so require, any member of the legal staff
may be designated by the GCC to act in concurrent capacity as corporate officer
of, or assigned to perform special or additional tasks in any of the client
government corporations of the OGCC and by virtue of such designation or
assignment, receive such additional compensation and privileges as may be
granted them by the government corporation concerned.

SECTION 9. Atfomey’s fees and Special Assessment. — The OGCC is
authorized to receive twenty percent (20%) of all the money claims collected by
or awarded/adjudged to client-government corporations in addition to the
attorney's fees awarded by a court, tribunal or panel, including
awards/judgments, stipulated under court-approved compromise agreements.
The OGCC is hereby utilized to use such awards and attorneys fees to meet
contingencies, obligations and undertakings, or for employee salaries,
allowances, other benefits and incentives, necessary or proper to promote
efficiency in the service as determined by the GCC subject to the rules and
regulations of the Commission on Audit and the Department of Budget and
Management may authorize

The GCC is likewise authorized to make special assessments upon its
client government corporations to similarly meet such contingencies, obligations
and undertakings, or to provide for employee salaries, allowances, other benefits
and incentives, as may be warranted or proper as determined by the GCC.

SECTION 10. Special Allowance. - The GCC, DGCC, AGCC and other
members of the legal staff may be granted special allowances in such amounts
to be determined by the GCC to implement the salary increases. The grant of
special allowances shall be implemented uniformly in such amounts and up to


extent only that can be supported by the funding source specified in Section 11
hereof.

SECTION 11. Funding. — The funds required for the implementation of this
Act including employee benefits shall be taken from:

I. The Twenty percent (20%) share of the money claims collected or
awarded in judgments in favor of government corporations and all
Attorney's fees authorized to be received by the OGCC pursuant to this
Act and Executive Order No. 292 or the Revised Administrative Code
of 1987;

Il. Special assessments made by the GCC upon client government
corporations; and

Ill. Other revenues, savings, fees generated and collected and donations
received by the OGCC.

SECTION 12. Franking Privilege. - All official matters and telegrams of the
OGCC addressed for delivery within the Philippines shall be received,
transmitted and delivered free of charge Provided, That such mail matters when
addressed to private persons or non-government offices shall not exceed one
hundred and twenty (120) grams

SECTION 13. Appropriations. - The amount needed for employees’
salaries, mandatory allowances and benefits under other laws and office
expansion shall be appropriated in the budget of the OGCC under the annual
General Appropriations Act.

SECTION 14. Implementing Rules and Regulations. - Within sixty (60)
days from the approval of this Act, the GCC in consultation with the Secretary of
the Justice and Secretary of Budget and Management, shall promulgate such
rules and regulations as may be necessary to carry out the provisions of this Act

SECTION 15. Repealing Clause. - Provisions of Executive Order No. 292
or the Revised Administrative Code of 1987, as amended, Executive Order No.
878 dated March 4, 1983, Presidential Decree No. 1415 dated June 9, 1978,
Republic Act No. 6000 dated August 4, 1969 and other pertinent laws, rules and
regulations shall remain in force and effect unless otherwise contrary or
inconsistent with the provisions of this Act.


SECTION 16. Separability Clause. - If any of the provisions of this Act is
declared invalid or unconstitutional, the provisions not affected thereby shall
continue to be in full force and effect.

SECTION 17. Effectivity. - This Act shall take effect after fifteen (15) days
from its publication in a national newspaper of general circulation.

Approved,