· . 
FIFTEENTH CONGRESS OF THE 
REPUBLIC OF THE PHILIPPINES 
First Regular Session 
) 
) 
) 
SENATE 
H) 
."1 
I'lf:'C;;:'V'"') ", 
Introduced by Senator Antonio "Sonny" F. Trillanes IV 
Explanatory Note 
.JUL -6 III 0 :30 
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f~·" "" 
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Statistics show that 36.8% of the Philippine population subsists below the national poverty line. 1 
Worse, the incidence of child malnutrition in the Philippines stands at 30% of all children under 
5 years old? This means that around five million Filipino children are suffering from 
malnutrition. 
Our national hero Dr. Jose Protacio Rizal once said that: 
"[Tlhe youth is the hope of our Fatherland". 
With Filipino children literally dying from extreme poverty, hunger and malnutrition, the future 
of the Philippines is clearly in grave peril. 
The passage of Republic Act 84253 otherwise known as the "Social Reform and Poverty 
Alleviation Act" is a step towards the right direction. However, considering the fact that the said 
law is actually focused on social reform and long term development, the National Anti-Poverty 
Commission (NAPC), which was created as a coordinating body under the law, is apparently not 
equipped to immediately address the problem. 
The problem of extreme poverty, child malnutrition and hunger is a not a problem requiring 
strategic or long term solutions only. The problem is here and we must provide immediate 
remedies and short-term solutions now. It is time we stop paying lip service to this grave national 
problem and to put our money where our mouth is, so to speak. 
Indeed, it is not enough that we adopt a long-term strategy to combat child malnutrition and 
extreme poverty. In the long-run, many of these children will be dead! Hence, there is an 
imperative necessity for the Government to immediately act on this problem. 
This Bill aims to provide significant and continuing intervention by Government into this grave 
problem by p,roviding literally billions of pesos annually to fund school and community-based 
supplemental feeding programs and related poverty alleviation efforts using the minimum basic 
needs (M~N) approach among the poorest of the poor communities in the country. 
The Bill aims to harness the revenue-earning potential of at least two (2) controversial 
Government-Owned or Controlled Corporations (GOCCs), in particular the Philippine Games 
and Amusement Corporation (PAGCOR) and the Philippine Charity Sweepstake Office (peSO), 
1 Asian Development Bank (ADB) Database and Development 1ndicators. 
2 ADB Poverty and Inequality Indicators (Principal Source: National Statistics Coordinating Board: 1997 Philippine Poverty 
Statistics). 
3 Effective 30 June 1998. 
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among others, and using the same to fund the poverty alleviation efforts of the Government. In 
the end, this Bill will not only provide much needed funds to a worth-while cause, it will also 
serve to provide redeeming social value for these two (2) controversial GOCCs. 
The Bill is expected to generate billions of pesos to help ameliorate if not totally put a stop to the 
prevalence of child malnutrition in the country. 
The immediate passage of this Bill is, therefore, earnestly sought. 
AN~J~~. 
m,LLANES IV 
Senator 
2 


FIFTEENTH CONGRESS OF THE 
REPUBLIC OF THE PHILIPPINES 
First Regular Session 
) 
) 
) 
SENATE 
276 
s. No. ___ -=-
"10 
,1111. -6 1\11) :30 
Introduced by Senator Antonio "Sonny" F. Trillanes IV 
AN ACT 
CREATING A SPECIAL POVERTY ALLEVIATION FUND TO BE USED TO 
FINANCE SCHOOL AND 
COMMUNITY-BASED SUPPLEMENTAL FEEDING 
PROGRAMS AND RELATED POVERTY ALLEVIATION EFFORTS USING THE 
MINIMUM BASIC NEEDS (MBN) APPROACH IN THE POOREST OF THE POOR 
COMMUNITIES IN THE COUNTRY AND FOR OTHER RELATED PURPOSES 
Be it enacted by the Senate and House of Representatives of the Philippines in Congress 
assembled: 
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SECTION 1. Sltort Title. This law shall be known as the "Poverty Alleviation Fund of 
2 
2010". 
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SEC. 2. Declaration of Policy. It is the policy ofthe State to promote a just and dynamic 
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social order that will ensure the prosperity and independence of the nation and free the people 
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from poverty through policies that provide adequate social services, promote full employment, a 
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rising standard of living, and an improved quality of life for all [Section 9, Article 11, 1987 
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Philippine Constitution]. 
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Towards this . end and to help combat the growing problem of malnutrition, hunger and abject 
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poverty particularly among children, the Government shall institute a systematic and well-
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studied direct intervention program by conducting sustained supplemental feeding targeting 
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school children, out-of-school youth and children of pre-schooling age as well as related poverty-
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alleviation efforts using the basic human needs approach, particularly among those belonging to 
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the poorest ofthe poor or the lowest twenty percent (20%) of Philippine social strata in terms of 
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income and resources. 
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SEC. 3. Creation of A Special Poverty Alleviation Fund. - There is hereby created a 
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Special Poverty Alleviation Fund ("Fund") to be funded from the sources provided herein below 
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and to be managed and administered by the National Anti-Poverty Commission (NAPC) under a 
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Program to be implemented by the Department of Social Welfare and Development (DSWD). 
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SEC. 4. Sources of the Fund. - The Fund shall be constituted from the following 
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sources: 
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(a) Ten percent (10%) share from the net income of the Philippine Games and Amusement 
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Corporation (PAGCOR), to be given and delivered by PAGCOR to the NAPC on a quarterly 
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basis, no later than ninety (90) days after the end of each quarter, subject to final accounting 
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and/or adjustments at the end of each calendar year; 
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(b) Ten percent (10%) share from the net income of the Philippine Charity Sweepstakes Office 
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(PCSO), to be given and delivered by P AGCOR to the NAPC on a quarterly basis, no later than 
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ninety (90) days after the end of each quarter, subject to final accounting and/or adjusments at 
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the end of each calendar year; 
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(c) Ten percent (10%) share from the net profits ofal! Duty Free Shops (DFS) or, in case of the 
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privatization of the DFS, twenty percent (25%) of the proceeds of privatization ofDPS plus fifty 
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percent (50%) of the franchise tax collected thereon. 
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The Department of Finance, through its appropriate agencies, is hereby mandated to ensure the 
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proper collection of the shares and/or charges intended for the Fund from the sources provided 
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herein and to tum-over the same quarterly to the NAPC through the DSWD. 
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SEC. 5. Authorized Use of the Fund; The Program The Fund shall principally be used 
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to finance the National Supplemental Feeding and Poverty Alleviation Program ("Program"). 
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The Program shall provide for the generation of an annual listing of priority or target schools, 
, 
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communities, barangays and/or other localities where the Government shall undertake direct 
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feeding and/or supplemental feeding activities on a sustained basis targeting school children, out-
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of-school youth and children of pre-school ages who belong to the poorest of the poor or the 
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lowest twenty percent (20%) of the Philippine social strata in terms of income or financial 
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resources. The Program shall also incorporate other poverty-alleviation efforts using the 
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minimum basic needs (MBN) approach targeted at poor communities. 
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The Program shall be prepared by the DSWD for the approval of the NAPC. The Program shall 
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likewise be implemented by the DSWD. 
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In connection with the foregoing, subject to the approval ofNAPC, the DSWD shall: 
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(a) Devise and formulate plans, strategies and programs to carry out effectively and efficiently 
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the disposition of the Fund in accordance with declared purpose thereof; 
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(b) Direct the management, operations and administration of the Fund; 
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(c) Authorize expenditures of the Fund as are in accordance with the purpose for which it was set 
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up; and 
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(d) Exercise such other powers as may be necessary to accomplish the purpose for which the 
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Fund was created. 
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SEC. 6. Limitations. The Fund shall not be used for any purpose other than to finance the 
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feeding and/or supplemental feeding program of the Government, as prepared by the DSWD and 
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approved by the NAPC. Moreover, no more than three percent (3%) of the proceeds of the Fund 
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may be used for administrative purposes. 
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SEC. 7. Administration and Control ojthe Fund The Fund shall be under the control of 
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the DSWD, which shall administer the same in accordance with the above staled powers, 
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functions and limitations. 
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SEC. 8. Investment oj the Fund Any portion of the Fund not otherwise disposed of as 
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provided for in this Act shall be invested in government securities and such other high-yielding 
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securities as petermined by the DSWD, upon approval of the NAPC. The earnings therefrom 
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shall accrue to the Fund. 
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SEC. 9. Audit. The Chairman of the Commission on Audit (COA) shal1 act as the ex-
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officio auditor of the Fund. 
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SEC. 10. Annual Report. The Secretary of the DSWD shall submit, within fifteen (15) 
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working days from the opening of the regular session of Congress, to the President of the 
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Philippines as NAPC Chair and to the Presiding Officers of both Houses of Congress, an annual 
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report which shall include an account of the program, projects and detailed expenses undertaken 
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pursuant to this Act. 
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SEC. 11. Penal Clause. Any person who fails or refuses to tum over collections of the 
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charges or shares mentioned in this Act within the period prescribed herein, or who delays, 
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obstructs or prevents the same; or who fails or refuses to effect release from the Fund, or who 
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obstructs, or prevents the same: or who orders, causes, or effects the transfer or diversion of the 
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collections of this Fund shall be punished with a fine not exceeding one hundred thousand pesos 
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(PI 00,000.00) or imprisonment not exceeding six (6) years, or both at the discretion of the Court. 
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If the offender is a government official or employee, he shall, in addition, be dismissed from the 
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service with prejudice to reinstatement and with disqualification for election or appointment to 
, 
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any public office. If the offender is a corporation or any other juridical entity, the penalty 
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provided lierein shall be imposed on its directors or officers who may be responsible for the 
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violation. 
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SEC. 12. Rules and Regulation. The Secretary of the DSWD in consultation with the 
2 
NAPC shall promulgate the rules and regulation relating to the collection and remittance of the 
3 
revenue sources accruing to the Fund as may be necessary for the effective implementation of 
4 
this Act. 
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SEC. 13. Separability Clause. - The provisions of this Act are hereby declared to be 
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separable, and in the event that any part, section or provision of this Act is held invalid or 
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unconstitutional, no other part or section or provision thereof shall be affected thereby. 
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SEC. 14. Repealing Clause. The pertinent provisions of the National Internal Revenue 
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Code, as amended, the charters of the PAGCOR and PCSO, as amended, and any other 
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provisions of law, decree, executive order, letter of instructions, rule or regulation or parts 
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thereof that are in conflict with any provisions of this Act are hereby repealed, amended or 
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modified accordingly. 
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SEC. 15. Effectivity. This Act shall take effect fifteen (15) days following the completion 
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of its pubiication in the Official Gazette and in two newspapers of general circulation in the 
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Philippines. 
Approved, 
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