1 3t’1 CONGRESS OF THE 
REPUBLIC OF THE PHILIPPINES 
First Regulcir Session 
INTRODUCED BY HON, MANUEL B. VILLAR JR. 
EXPLANATORY NOTE 
In the newspapers, on television and radio, our people continuously read, watch 
and hear the continuing appeals of our police agencies to their sense of patriotism and 
civic pride to report crimes and criminals. In this country of relative mass 
unemployment and soaring prices, our people have long ago discovered that patriotism 
and civic pride alone cannot keep body and soul together. This bill provides a remedy 
- a monetary incentive, a reward, a just and reasonable compensation. 
This bill seeks to provide an effective method to detect and subdue law- 
breakers. At the same time, this bill would generate the much needed funds to help 
balance a deficit-driven budget and relieve the pressures on our much beleaguered 
National Treasury; add policemen and undercover agents for our peace agencies 
without the need of a budgetary outlay; and provide temporary employment and refuge 
for an equal number of our unemployed citizens. 
Approval, therefore, of this bill is earnestly sought. 


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13"' CONGRESS OF THE 
REPUBLIC OF THE PHILIPPINES 
First Regular Session 
SENATE 
S .  No. 
INTRODUCED BY HON. MANUEL B. VILLAR JR, 
AN ACT 
PROVIDING FOR A UNIFORM ]REWARD SYSTEM IN THE CAMPAIGN 
AGAINST GRIME AND %AWLE§SNESS 
Be it enacted by the Senate and House of Representatives of the Philippines in 
Congress.assernbled: 
SECTIQN 1. Any person, a group of persons, define for purposes of this Act as 
government-informer, having knowledge of frauds upon and violations of any Paw of the 
Republic of the Philippines, may voluntarily submit, personally or by registered mail to any 
responsible government official a sworn statement or affidavit stating the time, place, manner 
and other circumstances of any act which is in his best and honest judgment is patently in 
violation of the law, or furnishing information which may lead to the arrest and apprehension 
of a fugitive or a wanted criminal. For such information, a government informer shall be 
entitled to receive compensation or reward as hereinafter provided. 
SECTION 2. The compensation from the Government of a government-informer 
shall be limited to the payment of a reward equivalent to twenty-five per centurn of the total 
revenue collection directly resulting from a sworn statement furnished by a government 
informer, The balance of the total revenue collections equivalent to seventy-five per centurn 
shall be used to augment appropriations set aside in the General Appropriations Act to 
subsidize and standardize the salaries of policemen. The revenue collections may consist of 
the proceeds from the sales of any property forfeited or confiscated, fines, indemnities, 
assessments, duties, taxes, fees, surcharges, penalties and compromises. 
SECTIQN 3. Private persons and corporations shall pay also a government-informer 
a reward equivalent to twenty-five per centurn of their collections directly resulting from a 
sworn statement furnished by a government-informer. The collections of private persons or 
corporations may consist of damages, indemnities, contributions, fees and premium refunds, 
adjustments, salaries and commissions. 
SECTION 4. The total revenue collections of the Government and the cash benefits 
due private persons and corporation directly resulting from a sworn statement furnished by a 
government-informer shall be collected by the Secretary of Finance or his authorized 
representatives only upon the order of a court of competent jurisdiction after trial and 
conviction. 
SECTION 5. The cash benefits due private persons and corporations and reward due 
government-informers shall be tax-exempt and payable promptly, through brokers of their 


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choice and confidence, by the Secretary of Finance or his authorized representatives in the 
form of registered Progress Bonds issued by the Development bank of the Philippines which 
shall not convertible into cash within five years from the date of issue: Provided, however, 
That a government-informer may in writing exercise the option to have his reward paid in 
cash subject to the payment of income tax, or to have all or any portion thereof donated to the 
government to augment the appropriations set aside in the General Appropriations Act to 
subsidize and standardize the salaries of the policemen. The broker's commission shall also 
be tax exempt if paid in the form of Progress Bonds Certificates. 
SECTION 6. Should the sworn statement later turn or be proven to be false OF have 
been made only for the purpose of harassing, molesting or any way prejudicing the person so 
denounced, the person so denounced shall be entitled to any action, criminal or civil as the 
circumstances and the facts may warrant: 
Provided, however, That the identity of the 
government-informer shall not be revealed without his consent except when the sworn 
statement is proven to be malicious of false. 
SECTION 7. 
Any person violating any provision of this Act shall suffer an 
imprisonment for not less than one year and one day to pay a fine of not less than two 
thousand pesos (P2,OOO.OO). 
SECTION 8. Republic Act Numbered Two Thousand Three Hundred and Thirty 
Eight and all other laws providing for the payment of reward to the informers of fi-auds upon 
and violations of any law of the Republic of the Philippines are hereby repealed 
SECTION 9, This Act shall take effect upon its approval. 
Approved,