FIFTEENTH CONGRESS OF THE 
) 
REPUBLIC OF THE PHILIPPINES 
) 
First Regular Session 
) 
SENATE 
S. NO. 408 
" ., 
Introduced by Senator Antonio "Sonny" F. Trillanes IV 
EXPLANATORY NOTE 
Infrastructure development plays a vital role in shaping 'our country's economy. Improved 
infrastructure in the country would help us attract more investors to invest in our country 
which would then lead to a more productive and prosperous economy. Annually, the 
government allocates a substantial portion of its money to public works projects. However, 
the huge amount of money allocated for these projects are often vulnerable to anomalous acts 
such as substandard work and the use of substandard materials. 
PD 1759 was signed in 1981 to prevent construction of public facilities that are substandard, as 
well as the use of materials that have poor quality. PD 1759 also imposes sanctions on violations 
of its provisions. 
This bill seeks to strengthen PD No. 1759 by increasing the penal sanctions on the violations of 
the provision of this law from a minimum imprisonment of twelve (12) years to twenty (20) 
years. It also includes the use of premature deterioration of public works structure as prima facie 
evidence in determining the violation of the provisions of this law. 
In view of the foregoing, immediate approval of this measure is earnestly sought 
~~L -
AN~O\I~ "SO~NY~ F. TRILLANES IV 
Senator 


FIFTEENTH CONGRESS OF THE 
) 
REPUBLIC OF THE PHILIPPINES 
) 
First Regular Session 
) 
SENATE 
s.lNO. 408 
Introduced by Senator Antonio "Sonny" F. Trillanes IV 
AN ACT 
INCREASING THE PENALTIES IMPOSED AGAINST CONTRACTORS AND 
SUBCONTRACTORS 
WHO 
VIOLATE 
ANY 
MATERIAL 
PROVISION 
OF 
CONTRACTS INVOLVING PUBLIC WORKS PROJECTS OF THE GOVERNMENT, 
AND PUBLIC OFFICIALS WHO ALLOW SUCH VIOLATIONS, AMENDING ,l'OR 
THIS PURPOSE PRESIDENTIAL DECREE NO. 1759 
'y 
Be in enacted by the Senate and House of Representatives of the Philippines in Congress 
assembled: 
I 
SECTION 1. Section 1 of Presidential Decree No, 1759, is hereby amended to read 
, 
2 
as follows: 
3 
"Section 1. - Any provisions of the law contrary notwithstanding, 
4 
contractors and sub-contractors who violate any material provision[s] of 
5 
contracts involving public works projects, either as to materials, quality and 
6 
quantity of work, resulting [to the] IN prejudice [of the] TO TIE government, 
7 
shall suffer the penalty of IMPRISONMENT RANGING from [twelve (12) 
8 
TWENTY (20) years to life [imprisonment], A FINE RANGING FROM 
9 
FIFTY PERCENT (50%) TO TWO HUNDRED PERCENT (200%) OF 
10 
THE AMOUNT OF THE CONTRACT, [at the discretion of the Court,] and 
11 
shall, in addition, suffer [perpetual disqualification from participating in any 
12 
government 
contracts,] 
IPSO 
FACTO 
REVOCATION 
OF 
THEIR 
13 
CONTRACTOR'S 
LICENSES 
INCLUDING 
THE 
PROFESSIONAL 
14 
LICENSES OF EXECUTIVES IN CHARGE OF THE DESIGN AND 
15 
CONSTRUCTION OF THE PROJECT 
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: The offending contractor or sub-contractor shall further be liable for the 
2 
cost of reconstructing such public works project in accordance with the 
3 
specifications agreed upon. 
4 
5 
In case of corporations, partnerships or associations, the President, 
6 
General Manager or any responsible chief executive officerl officers shall be 
7 
liable. 
ANY 
PROPRIETORSHIP, 
CORPORATION, 
PARTNERSHIP, 
8 
ASSOCIATION, 
OR 
BUSINESS 
ORGANIZATION 
WHOSE 
9 
PROPRIETOR, STOCKHOLDER, PARTNER, MEMBER OR OFFICER IS 
10 
RELATED WITHIN THE FOURTH DEGREE OF CONSANGUINITY OR 
11 
AFFINITY TO THE PERSON CONVICTED OF VIOLATION OF ANY OF 
12 
THE ACTS PUNISHABLE UNDER THIS ACT IS PROHIBITED FROM 
13 
PARTICIPATING 
IN 
SAID 
GOVERNMENT 
CONTRACT 
THE 
14 
PREMATURE DETERIORATION OF ANY PUF3LIC WORKS PROJECT 
15 
SHALL CONSTITUTE PRIMA FACIE EVIDENCE OF VIOLATION OF 
16 
THE ACTS PUNISHABLE UNDER THE FIRST PARAGRAPH OF THIS 
17 
SECTION. THE SECRETARY OF THE DEPARTMENT OF PUBLIC 
18 
WORKS 
AND 
HIGHWAYS 
IS 
HEREBY 
MANDATED 
TO 
19 
PRON1ULGATE THE NECESSARY IMPLEMENTING RULES AND 
20 
REGULATIONS TO EFFECTIVELY CARRY OUT THE INTENT OF THE 
21 
PROVISIONS OF THIS PARAGRAPH." 
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23 
SEC. 2. - Section 2 is amended to read as follows: 
24 
25 
"Any public official who, by reason of the duties of his office, shall consent, or through 
26 
abandonment or negligence, permit the contractor or subcontractor to commit [the violations 
27 
mentioned in Section I hereof,] ANY OF THE ACTS PUNISHABLE UNDER THIS ACT shall 
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1 
suffer the penalty ofIMPRISONMENT RANGING from [twelve (12)] TWENTY (20) years to 
2 
life [imprisonment], A FINE EQUIVALENT TO THIRTY PERCENT (30%) OF THE 
3 
AMOUNT OF THE CONTRACT and perpetual disqualification [to] FROM holding any public 
4 
office. ANY PROPRIETORSHIP, CORPORATION, PARTNERSHIP, ASSOCIATION, OR 
5 
BUSINESS ORGANIZATION WHOSE PROPRIETOR, STOCKHOLDER, PARTNER, 
6 
MEMBER OR OFFICER IS RELATED WITHIN THE FOURTH DEGREE OF 
7 
CONSANGUINITY OR AFFINITY TO THE PUBLIC OFFICER IN OF OR ASSOCIATED IN 
8 
ANY MANNER WITH THE PROJECT BEING UNDERTAKEN IS PROHIBITED FROM 
9 
PARTICIPAtING IN SAID GOVERNMENT CONTRACT." 
10 
II 
SEC. 3. - Any provisions of law, degree, executive order or any issuance inconsistent 
12 
herewith are hereby repealed and/ or modified accordingly. 
13 
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SEC. 4 - This Act shall take effect fifteen (15) days following completion of its 
15 
publication in at least two (2) newspapers of general circulation. 
Approved, 
3