Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City

SIXTEENTH CONGRESS
First Regular Session

HOUSE BILLNo, _ 3404

Introduced by BAYAN MUNA
Representatives NERI J. COLMENARES and CARLOS ISAGANI T. ZARATE.

AN ACT
MANDATING THE OVERSIGHT AND AUDIT OF GOVERNMENT
INTELLIGENCE AND CONFIDENTIAL FUNDS AND FOR OTHER PURPOSES

EXPLANATORY NOTE

Billions of pesos in taxpayers’ money have been allotted to intelligence and confidential funds,
programs and activities of the government.

‘These intelligence and confidential funds are not subject to the regular auditing requirements of
the Commission on Audit (COA). This has rendered these allocations open to the misuse and
abuse of those who are charged with the utilization of these funds granted to numerous
government agencies.

Congressional oversight on intelligence and confidential funds in the 10th, 11th, 12th, 13th, 14”
and 15th Congresses was done through a Senate Select Oversight Committee on Intelligence and
Confidential funds, Programs and Activities that was created on August 1997, October 2001,
January 2005, August 2009, and September 2010, respectively.

But the Select Oversight Committee initiative does not fully address the issues concerning
transparency, accountability and other malevolent issues surrounding the use of intelligence and
confidential funds that also target Filipino citizens who are private individuals, government critics,
political activists and members of cause-oriented groups.

Iris high time that the government rectify this unconstitutional mode of allocating intelligence and
confidential funds that are free from audit, public scrutiny and official accountability.

Immediate approval of this measure is earnestly sought.

Abprovts

LOW. Waid sy Pm
Rep. J. COLME! S Rep. IS, TT. ZARATE
[Bayan Muna Party. Bayan Muna Party-list

V \


Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City

SIXTEENTH CONGRESS
First Regular Session

HOUSE BILL No. 8404

Introduced by BAYAN MUNA
Representatives NERI J. COLMENARES and CARLOS ISAGANI T. ZARATE

AN ACT
MANDATING THE OVERSIGHT AND AUDIT OF GOVERNMENT
INTELLIGENCE AND CONFIDENTIAL FUNDS AND FOR OTHER PURPOSES

SECTION 1. Title. ~ This law shall be known as the “Intelligence and Confidential Funds
Transparency Act of 2013.”

SECTION 2. Declaration of Policy. ~The principle and practice of transparency in
governance covers all branches, appendages, agencies, programs, policies and initiatives of the
State,

The 1987 Constitution emphatically states that the State shall maintain honesty and integrity in the
public service and take positive and effective measures against graft and corruption (Asticle II
Section 27) and that no law shall be passed exempting any entity of the Government or its
subsidiaties in any guise whatever, ot any investment of public funds, from the jurisdiction of the
Commission on Audit, (Article IX Section 3).

This Act shall widen the parameters of our country’s democracy by once and for all clearly
defining that all State funds are indeed subject to audit, public scrutiny and official accountability,

SECTION 3. Definition of Terms. ~ For purposes of this Act, “Intelligence funds” are funds
provided for those related to intelligence information gathering activities of uniformed and
military personnel, and intelligence practitioners that have direct impact to national security.
“Confidential funds” are funds provided for those related to surveillance activities in civilian
government agencies that are intended to support the mandate or operations of the agency.
Intelligence funds shall only be released upon approval of the President, while Confidential funds
shall only be released or disbursed upon the approval of the Department Secretary concerned.

SECTION 4. Submission of Accomplishment Reports, All departments, bureaus, offices ot
agencies, shall submit to the Senate President, Speaker of the House of Representatives, and
Chairperson of the COA, a detailed quarterly report on the disbursement of and use of intelligence
and confidential funds, copy furnished the Senate Committee on Finance and House Committee
on Appropriations.


SECTION 5. Joint Congressional Oversight Committee on Intelligence and Confidential
Funds. Pursuant to its constitational duties, Congress and the Commission on Audit shall
discharge Oversight functions to wit:

(@)There shall be a Joint Congressional Oversight Committee on Intelligence and Confidential
Funds (JCOCIF) composed of five (5) members each from the Senate and the House of
Representatives, The JCOCIF shall be co-chaired by the chairpersons of the Senate Committee on
Accountability of Public Officers and Investigation, and the House Committee on Good
Government and Public Accountability. It shall include the chairpersons of the Senate Committee
on Finance and the House Committee on Appropriations as well as two members from the Senate
and House minorities,

‘The Joint Congressional Oversight Committee shall have its own independent counsel;

(b) The Oversight Committee shall conduct a semi-annual review of the status and
implementation of all programs and activities financed by intelligence and confidential funds, its
compliance with this Act and existing laws of the Republic and report to Congress not later than
June 30 of each year;

() The Commission on Audit shall conduct a yearly special audit on all intelligence and
confidential fands and report to Congress not later than June 30 of each year.

SECTION 6. Non-Interference in Oversight and Audit Functions. In no way shall any
government agency, appendage, and its subsidiaries in any guise; ot any private entity, interfere
with the oversight functions of Congress and the constitutional mandate of the Commission on

Audit,

SECTION 7. Use of Intelligence and Confidential Funds, Confidential and intelligence
funds provided for in the budgets of departments, bureaus, offices ot agencies of the National
Government, to be used for intelligence, counter-intelligence and confidential activities, shall be
teleased only upon the expressed recommendation of Congress via Joint Resolution, and the
approval of the President of the Philippines,

SECTION 8. Penalties. The non-submission of accomplishment reports as defined in this Act
shall bar the release of any and all allocations for intelligence and confidential funds until said
agency complies with Section 4.

Any person who violates Section 4 of this Act shall result in the absolute perpetual disqualification
from holding any public office, notwithstanding applicable administrative and ctiminal penalties

SECTION 9. Separability Clause. Should any provision of this Act be declared
unconstitutional, the validity or constitutionality of the other provisions shall not be affected
thereby.

SECTION 10. Repealing Clause. All laws, decrees, letters of instruction, resolutions, orders,
ordinances, issuances ot parts thereof which are inconsistent with the provisions of this Act are
hereby repealed, amended, or modified accordingly.

SECTION 1, Eftectivity: This Act shall take effect fifteen (15) days after its publication in a
newspaper of general circulation.

Abproved,