Republic of the Philippines
HOUSE OF REPRESENTATIVES Pe 0 ka
Quezon City \ a

SIXTEENTH CONGRESS

Second Regular Session

House Bill 4690

Introduced by Representative Rodolfo C. Farifias

EXPLANATORY NOTE

The Judiciary Development Fund (JDF) was created under
Presidential Decree No. 1949 for the benefit of the members and personnel of
the Judiciary to help ensure and guarantee the independence of the
Judiciary. The Judiciary was, thus, given the authority to generate its own
funds and resources to help augment its budgetary requirements and ensure
the uplift of its members and personnel.

However, through the years, and as particularly highlighted during
the impeachment of former Chief Justice Renato C. Corona, the issue of
transparency and accountability in the administration of the JDF has been
consistently raised and emphasized, only for the Supreme Court to invoke its
fiscal autonomy on the matter.

This proposed legislation, therefore, intends to emphasize that the
constitutional grant of fiscal autonomy cannot and should not be used to
frustrate the overriding constitutional principles of transparency,
accountability and good governance.

‘This proposed legislation emphasizes that Section 1, Article XI of the
Constitution provides that public office is a public trust and that public
officers and employees that they are at all times accountable to the people
with their duty to serve with the highest degree of responsibility, integrity,
loyalty and efficiency. In the same manner, this proposed legislation
emphasizes that, subject to reasonable conditions prescribed by law, the
State adopts and implements a policy of full public disclosure of all its
transactions involving public interest, pursuant to Section 28, Article II of the
Constitution.

Page 1 of 5


The proposed legislation include the following salient provisions:

L

All fees and collections constituting the JDF shall be
immediately and regularly remitted by the Supreme Court,
through the Chief Justice, to the National Treasury;

No allocation, disbursement or expenditure of the JDF shall be
paid out except pursuant to an appropriation by the Congress as
part of the budget of the Judiciary as provided for in the General
‘Appropriations Act;

The amount of the JDF shall not be included in the computation
of the annual appropriation of the Judiciary; and

‘The JDF shall be treated as a special fund in the National
Treasury and shall be administered by the Bureau of the
Treasury.

The proposed transfer of the administration of the JDF from the

Supreme Court to the Bureau of the Treasury is neither a diminution of the
grant of fiscal autonomy nor is an attack on the independence of the Supreme
Court and the Judiciary but is done pursuant to the constitutional system of
checks and balances and the overriding principles of transparency,
accountability and good governance.

Appropriate audit and reportorial requirements are likewise proposed

in order to enhance transparency and accountability in the administration of
the JDF and prevent any abuse therein.

In view of the foregoing, the approval of this bill at the earliest

opportunity is urgently requested.

RODOLFO C. FARINAS

Representative
First District, Ilocos Norte

Page 2 of 5


Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City

SIXTEENTH CONGRESS
Second Regular Session

4690

House Bill

Introduced by Representative Rodolfo C. Farifias

AN ACT REFORMING THE ADMINISTRATION OF THE JUDICIARY
DEVELOPMENT FUND, MANDATING TRANSPARENCY AND
ACCOUNTABILITY IN THE ADMINISTRATION THEREOF,
TRANSFERRING THE ADMINISTRATION THEREOF FROM
THE SUPREME COURT TO THE BUREAU OF THE
TREASURY, ENACTING APPROPRIATE AUDIT AND
REPORTORIAL REQUIREMENTS THEREFOR, AMENDING
FOR THE PURPOSE PRESIDENTIAL DECREE NO, 1949, AND
FOR OTHER PURPOSES

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

Section 1. Short Title. — This Act shall be known as the “Judiciary
Development Fund Reform Act of 2014.”

Section 2, Declaration of Policy. — Consistent with the principles
of transparency, accountability and good governance, it is hereby declared to
be the policy of the State to give life and meaning to the constitutional
precept under Section 1, Article XI of the Constitution that public office is a
public trust and to impress upon public officers and employees that they are
at all times accountable to the people with their duty to serve with the
highest degree of responsibility, integrity, loyalty and efficiency.

In the same manner, it is hereby declared to be the policy of the State

to give live and meaning to Section 28, Article II of the Constitution, which
provides that the State adopts and implements a policy of full public

Page 3 of 5


disclosure of all its transactions involving public interest, subject to
reasonable conditions prescribed by law.

Section 3. Section 2 of Presidential Decree No. 1606 is hereby
amended to read as follows:

“Section 2. All fees and collections constituting the Fund shall
be immediately and regularly remitted by the Supreme Court, through
the Chief Justice, to the National Treasury. No allocation,
disbursement or expenditure of the Fund shall be paid out except in
pursuance of an appropriation by the Congress as part of the budget of
the Judiciary as provided for in the General Appropriations Act:
Provided, That the amount of the Fund shall not be included in the
computation of the annual appropriation of the Judiciary: Provided,
further, That the Fund shall be treated as a special fund in the
National Treasury and shall be administered by the Bureau of the
Treasury: Provided, finally, That any allocation, disbursement and
expenditure of the Fund as provided for in the General Appropriations
Act shall made exclusively for the purposes indicated in the
immediately preceding Section, in accordance with the guidelines set
in this Decree and its implementing rules and regulations.”

Section 4. Section 3 of the same Decree is hereby amended to read
as follows:

“Section 3. The Commission on Audit through the Auditor of
the Supreme Court or his duly authorized representative shall
quarterly audit the receipts, revenues, uses, disbursements and
expenditures of the Fund, and shall submit the appropriate report in
writing within thirty (30) days from the completion of said audit to the
Chief Justice of the Supreme Court, the Senate President, the Speaker
of the House of Representatives and the Chairperson of the
Commission on Audit.”

Section 5. Section 4 of the same Decree is hereby amended to read
as follows:

“Section 4. Nothing herein shall be construed to affect or
diminish the duty of local government units to provide office spaces,
equipment and facilities to the courts within their respective territorial
jurisdiction as required under existing laws: Provided, That the Chief
Justice of the Supreme Court shall submit the appropriate report in
writing, detailing the funding and support received by the Judiciary
from external sources and beyond the allocation received from the

Page 4 of 5


General Appropriations Act, during the deliberations by the Congress
on the budget of the Judiciary. Moreover, there shall be no reduction of
the compensation, allowances, benefits and privileges enjoyed by the
members and personnel of the Judiciary on the date of the effectivity of
this Decree.”

Section 6. Section 5 of the same Decree is hereby amended to read
as follows:

“Section 5. The Supreme Court, Department of Budget and
Management, Bureau of the Treasury and the Commission on Audit
shall promulgate the necessary rules and regulations for the effective
implementation of this Decree within ninety (90) days from the
approval hereof,”

Section 7. Separability Clause. - If for any reason, any provision
of this Act is declared unconstitutional or invalid, or the application of such
provision to any circumstance is held invalid, the other parts or provisions
hereof which are not affected thereby shall continue to be in full force and
effect.

Section 8. Repealing Clause. — All laws, decrees, executive orders,
rules and regulations, and other issuances or parts thereof that are
inconsistent with this Act are hereby repealed, amended or modified
accordingly.

Section 9. Effectivity. - This Act shall take effect after fifteen (15)
days following its publication in two (2) national newspapers of general
circulation.

Approved,

Page 5 of 5