Republic of the Philippines
HOUSE 0F REPRESENTATIVHS
Quezon City, Metro Manila
Nineteenth Congress
First Regular Session
HouseBiriNo.6493
Introduced by REP. JOEY SARTE SALCEDA
AN ACT
STRENGTHENING THE OFFICE 0F THE GOVERNMENT CORPORATE
COUNSEL (OGCC), BY RATIONALIZING AND FURTHER
PROFESSI0NALIZING ITS ORGANIZATION,
AND APPROPRIATING FUNDS THEREFOR
EXPLANATORY NOTE
The  number  of  government-owned  or  controlled  corporations  (GOCCs),  government
financial institutions (GFls), government instrumentalities with corporate powers (GCIPs), and
government corporate entities (GCEs) as defined in Republic Act No.  10149, otherwise known as
the  "GOCC  Governance Act of 2011",  as  well  as their  subsidiaries  and coaporate off-springs
including  economic  zones  and  water  disthcts,  all  collectively  referred  to  as  "goverrment
coxporations", have increased through the years -from fifty three (53) in 1983 to seven hundred
thirty two (732) to date.
Executive Order No. 292 (26 July  1987), otherwise known as the "Administrative Code
of 1987",  expressly  defines the mandate of the Office of the  Government Corporate  Counsel
(OGCC), thus:  (1) to act as the principal law office of all government corporations; cz#c7, (2) to
exercise control and supervision over all legal departments or divisions thereof. Later executive
issuances further strengthened and enhanced OGCC' s mandate and responsibilities over the legal
affairs of various GOCCs.
However, the existing organizational structure and persormel complement of OGCC was
formulated way back in  1983,  and has not been anended or improved since then, despite the
substantial increase in the volume, complexity and the importance of the OGCC's mandate due
to escalating demands of government activities and transactions.
To ensure that OGCC shall be able to adapt to the changing conditions and to uphold the
principle of "eg#cz/ pq;/or eg#cr/ vcr/z" o/word ", the Eighteenth Congress (2019-2022) passed
the consolidated OGCC Bill (Senate Bill No.  2490 & House Bill No.  9088), entitled:   "4# 4c/
Strengthening the Office Of the Government Corporate Counsel (OGCC), by Rationalizing and
Further Prof essionalizing its Organization, and Appropriating Funds Therof ;or " and tr8;rysrriltted
the same to the Office of the President on June 21, 2022.
While His Excellency President Ferdinand "Bongbong" Romunldez Marcos, Jr. vetoed the
OGCC Bill on July 22, 2022, he still recognizes the need to strengthen the OGCC because of the
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growth in the number of GOCCs coupled with the complexities of their requirements brought by
the modem business situations and conditions, and thereby accord the men and women of the
OGCC the same privileges and benefits being enjoyed by their counterparts in the Judiciary and
in the Office of the Solicitor General.
This Bill, therefore, reintroduces the proposed bill on the OGCC, now entitled:  "47e 4cr
Strengthening the Office  Of the Goverrment  Corporate Counsel by Rationalizing and Further
Professionalizing  its  Organization,  and  Appropriating  Funds  Therefor" ,  sndject  to  cod;ajlrL
amendments to address the veto message of the President.
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Republic of the Philippines
HousH oF REPRESENTATIvns
Quezon City, Metro Manila
Nineteenth Congress
First Regular Session
HouseBii|-No.   6493
Introduced by REP. JOEY SARTH SALCEDA
AN ACT
STRENGTHENING THE OFFICE 0F THE GOVERNMENT CORPORATH
COUNSEL (OGCC), BY RATIONALIZING AND FURTHER
PROFESSIONALIZING ITS ORGANIZATION,
AND APPROPRIATING FUNDS THERHFOR
Be it enacted by the Senate and House Of Representatives of the Philippines in Congress
assembled:
SECTION 1. Sfrorf rjt/e. - This Act shall be known as the "OGCC Cfecrrfer of CY2022".
SEC 2. Dec/crrcz/7.o# o/Po/j.ey. -It shall be the policy of the State to protect and promote
the  welfare,  rights  and  interests  of government-owned  or  controlled  corporations  (GOCCs),
government  financial  institutions  (GFls),  government instrumentalities  with  corporate  powers
(GICPs),  and  government  coaporate  entities  (GCEs)  as  defined  in  Republic  Act  No.   10149,
otherwise  known  as  the  "GOCC  Governance Act  of 2011",  as  well  as  their  subsidiaries  and
corporate off-springs, including economic zones and water districts, all collectively referred to in
this Act as "government corporations".
Toward this end, the State shall require the improvement of legal services extended by the
Office of the Government Corporate Counsel (OGCC), to efficiently address the expanding needs
of these government corporations in accordance with the initiative towards an improved fiscal
management and good corporate governance. It shall be the mandate of the OGCC to safeguard
the legal interest of all government corporations.
SEC 3. Power, /wrisdz`c/I.o# cz#cZ A4cz7!c7cz/e-The OGCC shall be the statutory counsel and
principal law offlce of all government corporations. All government corporations shall refer the
following to the OGCC:
(a) All important legal questions for opinion and advice;
(b) All contracts for review: Prow.c7ec7, That the Government Corporate Counsel (GCC)
may from time to time determine which contract shall no longer be submitted to OGCC; cz#d,
(c) All cases for representation before regular courts, quasi-judicial bodies, administrative
agencies and arbitral tribunals: Prow.c7ed, That the GCC may thereafter authorize the government
corporation's legal department or retained counsel as collaborating counsel to handle cases, as the
urgency or expediency of circumstances may warrant.
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In addition to the foregoing, the OGCC shall continue to perform all powers and functions
under existing laws.
SEC 4.  Orgrj7jzcr/z.o#cz/ Sgiv#c/2fre.  - The OGCC shall be headed by the GCC, who is the
principal law officer and legal defender of all government corporations.  She/IIe shall have the
authority and responsibility for the exercise of the OGCC's mandate and for the discharge of its
duties and functions, and shall have supervision and control over the OGCC and its constituent
units.
The  GCC  shall  be  assisted  by  the  Deputy  Government  Corporate  Counsel  (DGCC),
Assistant Government Corporate Counsels (AGCCs) and such number of Government Corporate
Attorneys (GCAs) as may be necessary to operate the OGCC. Unless otherwise determined by the
GCC, the legal staff shall be divided into teams, each to be headed by an AGCC.
The administrative structure of the OGCC shall be composed of the Secretarial and Legal
Support   Service,   Human  Resource   Development   and   Management   Service,   Finance   and
Accounting   Service,   Case   and   Records   Management   Service,   Library   Management   and
Information Technology Service, Corporate Planning Service, and Property and Supply Service:
Provj.c7ec7, That the OGCC may, as the need arises and subject to the approval of the Department
of Budget and Management and the  Civil  Service  Commission,  reorganize the administrative
structure of the OGCC.
The legal and non-legal personnel 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 rationalized positions, and receive the corresponding salary, benefits
and privileges without necessity of new appointments.
S;EC 5 . OGCC's Legal Persomel and Qualifications. -
(a) The GCC shall have the same rank, category, salary grade and salaries, allowances,
retirement and pension benefits, emoluments, prerogatives and privileges as the Presiding Justice
of the Court of Appeals. SheAle shall be assisted by a DGCC and twelve (12) AGCCs who shall
have the same rank, category, prerogatives, salary grade and salaries, allowances, retirement and
pension benefits, emoluments, prerogatives and privileges of an Associate Justice of the Court of
Appeals: Provj.c7ec7, That the number of AGCCs may be increased  as the need arises and subject
to the approval of the Department of Budget and Management and the Civil Service Commission.
No person shall be appointed GCC, DGCC or AGCC unless she/he is a natural-born citizen
of the Philippines and has been engaged in the practice of law in the Philippines for at least fifteen
( 15) years.
(b) The other members of the legal staff shall be as follows:
(1) Fourteen (14) Government Corporate Attorney IV (GCA IV), who shall have the
same rank, salary grade and salaries, allowances, retirement and pension benefits,
emoluments, prerogatives and privileges of a judge of a Regional Trial Court. No
person shall be appointed as GCA IV unless she/he is a natural-born citizen of the
Philippines and has been engaged in the practice of law in the Philippines for at
least ten (10) years;
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(2) Nineteen (19) Government Corporate Attorney Ill (GCA Ill) who shall have the
same rank, salary grade and salaries, allowances, retirement and pension benefits,
emoluments, prerogatives and privileges of a judge of a Metropolitan Trial Court.
No person shall be appointed GCA Ill unless she/he is a natural-born citizen of the
Philippines and has been engaged in the practice of law in the Philippines for at
least five (5) years;
(3) Twenty (20) Government Corporate Attorney 11 (GCA 11), with Salary Grade 27,
who shall be natural-born citizens of the Philippines and have been engaged in the
practice of law in the Philippines for at least three (3) years;
(4) Ten (10) Goverrment Corporate Attorney I (GCA I), with Salary Grade 26, who
shall  be  natural-born citizens  of the Philippines  and have been  engaged in the
practice of law in the Philippines for at least two (2) years;
(5) Eight (8) Associate Goverrment Coaporate Attorneys, with Salary Grade 25, who
shall  be natural-born citizens  of the Philippines  and have been  engaged  in the
practice of law in the Philippines for at least one (1) year.
The GCC, DGCC and AGCCs shall be appointed by the President of the Philippines. The
other members of the legal and administrative personnel shall be appointed by the GCC. Except
for the GCC, the appointments of the DGCC and AGCCs shall be perinanent upon compliance
with the prescribed qualification standards under this Act.
SEC 6. IVo#-/egcz/ Perso7!73e/.   - The OGCC shall be supported by such number of non-
legal personnel as necessary, commensurate to their current workload, as recommended by the
OGCC and as approved by the Department of Budget and Management and the Civil  Service
Commission.
Non-legal personnel shall have the same salaries and benefits as that of their counterparts
in the Office of the Solicitor General.
The salaries, benefits and privileges of the persormel of the OGCC granted under this Act
shall automatically be increased to keep in step with any corresponding increase in salaries and
privileges  subsequently  granted to their respective  counterparts  in the  Office  of the  Solicitor
General.
SEC  7.  /#S/ztw/e  o/ P2tb/j.c  Corporcr/e  Col;er72a72ce.  -There  is  hereby  established  the
Institute of Public Corporate Governance (IPCG) in the OGCC, for the purpose of promoting
government and public  sector accountability,  transparency,  and the pursuit  of excellence  and
efficiency in government service.
The IPCG shall be directly attached to the office of the GCC, and  shall be headed by an
Executive Director designated  by the GCC from among the GCAIVs of the OGCC.
The IPCG shall institutionalize good  corporate governance practices in and by GOCCs;
serve as a central continuing education provider for officers, members of governing boards and
lawyers of GOCCs; publish journals, newsletters and utilize other forms of media to keep all in
government infomed of the trends in the Civil Service; cz#c7, participate in and  propose relevant
legislation to promote corporate governance.
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SEC  8.  Perso#72e/ Be7ze¢fs  cJ#c7 PrJ.vJ./eggs.  -  Provisions  of other  laws  to  the  contrary
notwithstanding, and subject to availability of funds, the OGCC may provide its employees the
following benefits :
(a) Accident insurance for all employees for approved travels while in the performance of
official duties;
(b) Scholarships for the deserving employees on official time to upgrade their knowledge
and skills: Provz.c7ec7,  That scholars under this provision shall be selected on the basis of merit as
determined by competitive examination;
(c) Healthcare services through a health maintenance organization coverage;
(d) A Provident Fund which shall consist of, but not be limited to, contributions made by
the OGCC and by its employees; cz#d,
(e) Reimbursement of registration fees and expenses for tralnings and seminars, including
those for Mandatory Continuing Legal Education (MCLE) and professional license fees.
SEC 9. O/¢er Be#e¢fs. -Provisions of other laws to the contrary notwithstanding, the legal
personnel of the OGCC are authorized and shall  continue to receive allowances and honoraria
fromgovemmentcorporationswhichshallnotexceedonehundredpercent(100%)oftheirarmual
basic salary.
SEC  10. Refjreme#f Be#e¢ts. -Any law to the contrary notwithstanding, and consistent
with  Section 4  of this Act  granting them the  same retirement benefits  and privileges  of their
counteaparts in the Judiciary, the retirement benefits of the GCC, DGCC, AGCC, GCA IV and
GCA  Ill  shall  be  automatically  increased  whenever  there  is  an  increase  in  the  salaries  and
allowances of the same positions from which he or she retired.
SEC 11. 4f/or#ey'£ Fees. -Consistent with the provisions of the  Administrative Code of
1987, the OGCC is authorized to receive attomey's fees awarded by a court, tribunal, or panel,
including awards and judgments stipulated under court-approved compromise agreements.  The
OGCC  is  hereby  authorized  to  use  such  awards  and  attomey's  fees  to  meet  contingencies,
obligations and undertakings and/or for employee benefits and incentives, necessary or proper to
promote efficiency in the service as deterlnined by the GCC.
SEC 12. Specj.cz/ 4sscssmeJcts. -  The GCC is authorized to make special assessments upon
government corporations and to disburse and use the sane for purposes of meeting obligations
and  contingencies,  upgrading  facilities  and  equipment,  capacity  building  of employees  and
resource  development,  defraying  such other expenses not provided  for  in the  annual  General
Appropriations Act, subject to accounting and auditing procedures.
SEC  13.  Frcr7z4j.ng Prz.vj./egg.  -  All  official  mail  matters  of the  OGCC  addressed  for
delivery  within  the  Philippines  shall  be  received,  transmitted  and  delivered  free  of charge:
P7.ovz.c7ec7,  That such mail matters when addressed to private persons or non-government offices
shall not exceed one hundred and twenty (120) grams.
SEC  14. Faf#c7z.ng. -The funds required for insurance premiums; employer's contribution
to the Provident Fund; professional, educational, registration fees, and contracted transportation;
anc7, all other benefits above shall be taken from:
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(a)  Five  percent  (5°/o)  attomey's  fees  awarded  by  the  courts  to  client  government
coaporations, including those under court-approved compromise agreements, actually assisted by
the OGCC and not delegated to private lawyers: Provj.dec7, That in cases where both OGCC and
private lawyers jointly worked on the resolution of a case or compromise agreement, the OGCC
shall be entitled to as much attomey's fees on a gzjcr#/zf77z merzw.r basis;
(b) Special assessments collected from goverrment corporations; cz#c7,
(c) All other income, fees and revenues earned and collected by the OGCC.
SEC 15. .4pp7.aprz.cz/j.o7zS. -The amount necessary for the initial implementation of this Act
shall be taken from the current year's appropriations for the Offlce of the Goverrment Corporate
Counsel.  Thereafter, such sums as may be necessary for its continued implementation shall be
included in the annual General Appropriations Act and/or supplemental appropriations.
SEC  16. J"p/e"e#fz.ng R2f/es o7€cZ Regzt/czJz.o#s.-The GCC shall promulgate the necessary
rules and regulations for the  implementation of the provisions of this Act: Provjdec7,  That the
Reorganization Plan implementing the provisions of this Act shall be submitted to the Department
of Budget and Management and the Civil Service Commission within thirty (30) days from the
effectivity hereof.
SEC  17. j3epecz/j.72g C/cz#s'e.  -All other laws, acts, presidential decrees, executive orders,
presidential proclamations, issuances, rules and regulations, or parts thereof which are contrary to
or inconsistent with any of the provisions of this Act are hereby repealed, amended, or modified
accordingly.
SEC  18.  Sepc}rczbJ./J.fy  C/cz#se.  -If any  portion or provision of this  Act  is  subsequently
declared invalid or unconstitutional, other provisions hereof which are not affected thereby shall
remain in full force and effect.
SEC 19. E#ec/J.vz.fy. -This Act shall take effect fifteen ( 15) days after its publication in the
Oj7j7}c;cJ/ Gczze//e or in a newspaper of general circulation.
Approved,
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