Republic of the Philippines
HOUSE OF REPRESENTATIVES
Batasang Pambansa, Quezon City

FIFTEENTH CONGRESS
First Regular Session

3277
HOUSE BILL NO. ae

INTRODUCED BY REP. JOSEPH VICTOR G. EJERCITO

EXPLANATORY NOTE

Article II, Section 28 of the 1987 Philippine Constitution in no
uncertain terms declares that the State adopts and implements a
policy of full public disclosure of all its transactions involving public
interests. Article XI, Section 1 of the 1987 Philippine Constitution
further provides that public officers and employees must at all times
be accountable to the people, serve them with utmost responsibility
and lead modest lives.

Unfortunately, even as the present administration has been
charged with allegations of corruption in the form of overpricing,
disadvantageous government contracts and spurious transactions such
as that of the fertilizer fund scam and the ZTE-NBN deal, several high
ranking officials of the Philippine National Police were caught by
Russian officials carrying an undeclared amount of 106,000 Euros
allegedly for the purchase of intelligence equipment. This brought
international fame, or rather infamy, to our country highlighting the
system of corruption and extravagant use of taxpayer's money which
has become so deeply ingrained in our present government. Further,
the so-called “Euro Generals Scandal” has introduced a different
avenue of misappropriating public funds - under the guise of official
travel/contingency funds, or as intelligence and confidential funds.

It is conceded that the provision of funds for foreign or local
travel of government officials or employees is a necessary government
expense. However, the Euro Generals scandal shows that there is a
compelling need to establish safeguard measures that will ensure
transparency and accountability in disbursement, as well as
appropriate use of public funds, in relation to official travels of
government officials and employees. Thus, this proposed measure
defines the parameters of authorized travel of government officials or
employees and defines the allowable travel expenses for such trip.
Further, the disclosure of the full amount of foreign currency brought
into or out of the country in the course of the official travel is made
mandatory by this proposed measure. Moreover, a completion report
of the official business attended together with an accounting and


liquidation of the funds used for the official trip is mandated to be
completed within a period of 60 days from the time that the concerned
government official or employee reports back to work. Finally,
penalties are prescribed for failure to comply with the obligation to
disclose the amount of foreign currency carried and for non-
compliance with the reportorial and accounting and liquidation
requirements.

Unfortunately, despite the clear constitutional mandates of
upholding public trust, full fidelity in the use of public funds seems to
remain unlikely. Thus, necessary steps that will eventually reverse the
culture of corruption and inculcate accountability in public office in its
place have to be taken with utmost urgency. Such is the intention of
this proposed measure.

In view of the foregoing, early passage of this bill is earnestly
requested.

=o

JOSEPH VICTOR G. EJERCITO


Republic of the Philippines
HOUSE OF REPRESENTATIVES
Batasang Pambansa, Quezon City

FIFTEENTH CONGRESS
First Regular Session

3
HOUSE BILLNO. __~

INTRODUCED BY REP. JOSEPH VICTOR G. EJERCITO

AN ACT

REGULATING OFFICIAL LOCAL AND FOREIGN TRAVELS
OF GOVERNMENT OFFICIALS AND EMPLOYEES TO
ENSURE TRANSPARENCY AND ACCOUNTABILITY IN
THE USE OF FUNDS REQUESTED FOR THE PURPOSE,
DEFINING PENALTIES FOR NONCOMPLIANCE WITH
DISCLOSURE, ACCOUNTING, LIQUIDATION AND
REPORTING REQUIREMENTS, 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
“Government Employees Official Travel Accountability Act of
2010."

SEC. 2. Coverage. - All government officials and employees,
both national and local, including personnel of government owned
and/or controlled corporations and government financial institutions
shall be covered by the provisions of this Act.

SEC. 3. Authorized Travel. - Only local and/or foreign travel
which are urgent and extremely necessary, will involve the minimum
expenditure for the government, and are expected to bring direct gain
and immediate benefit to the agency concerned or the country shall be
authorized.

Chapter 1 - Official Local Travel of Government Personnel
SEC. 4. Approval of Travel - All travels of Officials and

employees of National Government Agencies shall be approved by the
head of office/bureau or its equivalent: Provided that travels that will


last thirty (30) days or more are subject to the approval of the
Department Secretary or his equivalent.

Approval of travel of officials and employees of government-
owned and/or controlled corporations and financial institution that will
last for not more than one (1) calendar month shall be subject to the
policies, rules and regulations adopted by their respective governing
Boards.

SEC. 5 . Allowable Travel Expenses. - The amount of
allowable local travel expenses shall be determined by the Department
head concerned, taking into consideration the daily subsistence
requirements and other reasonable expenses that may be incurred in
the course of the official travel, subject to the approval of the
Secretary of the Department of Budget and Management. Claims for
reimbursement of actual travel expenses in excess of the travel
expenses authorized by the Department head may be allowed upon
certification of the head of agency concerned that the incurred
expense is absolutely necessary in the performance of an assignment
and submission of receipts.

Chapter 2 - Official Foreign Travel of Government
Personnel

SEC. 6. Nature of Travel. - Only foreign travels and
assignments under the category of conferences, special missions and
other non-study trips shall be authorized such as those undertaken for
the following purposes:

a. To attend conferences or seminars sponsored by foreign
governments or international government organization to which the
Philippine government is committed or invited to send representatives
or participants;

b. To attend conferences or seminars sponsored by private
organizations,
whether international or not, invitations to which have been sent
through their respective governments;

c. To conduct examinations of investigations of Philippine
government agencies or affairs; and

d. To undertake any other official missions which cannot be
assigned to any other Philippine government official already abroad.

SEC.7. Approving Authority - All government officials and
employees seeking authority to travel to a foreign country shall secure
Prior approval from their respective heads of departments or agencies
or their equivalent, regardless of the duration of their travel, and the
number of delegates concerned; Provided that all official travels
abroad of Department Secretaries, Undersecretaries, Assistant
Secretaries, heads, senior assistant heads and assistant heads of
government owned and/or controlled corporations and_ financial


institutions, and heads of local government units and other officials of
equivalent rank shall be subject to the prior approval of the President.

SEC.8 . Allowable Travel Expenses. - Government officers or
employees duly authorized to travel abroad shall be entitled to the
Daily Subsistence Allowance (DSA) as provided under the United
National Development Program Index, which shall be apportioned as
follows unless otherwise stated in the UNDP Index: (a) fifty percent
(50%) for hotel/lodging; (b) thirty percent (30%) for meals; and (c)
twenty percent (20%) for incidental expenses, When the country of
destination is not listed in the said Index, the DSA for the nearest
country shall be adopted. Claims for reimbursement of actual travel
expenses in excess of the DSA may be allowed upon certification by
the head of the agency as absolutely necessary in the performance of
an assignment and presentation of receipts, subject to the approval of
the President.

SEC.9 . Restrictions on Foreign Travel. - No government
official or employee who is due to retire within one (1) year from the
commencement of the official trip for which authority to travel is
requested shall be authorized to travel to a foreign country as an
official representative to attend trainings, conferences or other
international commitments.

In the event that there are several qualified prospective
participants to international trainings, conferences or study trips, the
approving authority shall give priority to those who are forty-five (45)
years old and younger.

SEC. 10. Mandatory Disclosure. - Any government official or
employee authorized to travel to a foreign country who brings into or
out of the Philippines foreign currency as well as other foreign
exchange-denominated bearer monetary instruments in excess of
US$10,000 or its equivalent regardless of source is required to
declare the same in writing and to furnish information on the source
and purpose of carrying and transporting such amount of foreign
currency.

For purposes of this Act, “other foreign exchange-denominated
bearer instruments” shall refer to the following foreign exchange-
denominated instruments in bearer form whereby title thereto passes
to another by endorsement, assignment or delivery: traveler's checks,
drafts, notes, money orders, bonds, deposit certificates, securities,
commercial papers, trust certificates, custodial receipts, deposit
substitute instruments, trading orders, transaction tickets and
confirmation of sale/investment.

Chapter 3 - Common Provisions

SEC. 11. Supporting Documents. - All requests for cash
advances and the corresponding cash advance vouchers for local and
foreign travel shall be supported by the following: (a) travel order


properly approved; (b) itinerary of travel; and (c) details of
transportation and travel expenses to be incurred.

SEC. 12 . Accounting and Liquidation of Cash Advances. -
The cash advance for the official travel shall be duly liquidated and
accounted for by the official or employee concerned strictly in
accordance with the rules and regulations promulgated by the
Commission on Audit for the purpose within sixty (60) days after his
return to the Philippines, in case of official travel abroad, or within
thirty (30) days of his return to his official station in case of official
local travel. Non-compliance with the mandatory period for liquidation
and accounting shall be a cause for suspension of other benefits and
emoluments received by such official or employee until such time as
he complies therewith.

SEC. 13. Reportorial Requirements. - Every official or
employee assigned or authorized to travel in accordance with the
provisions of this Act shall, within sixty (60) days after his return to his
permanent official station, submit a report with his recommendations,
if any, on the conference or seminar attended, examination or
investigation conducted, or mission undertaken, to the head of his
office. In case the participation is in an international conference or
convention abroad in which the Philippines is represented by a
delegation, a report of the delegation shall be submitted to the
Secretary of the Department or the Office of the President, in the
event that the Department Secretary is himself authorized to travel
not later than thirty (30) days after the closing of the conference or
convention.

All national government agencies and government-owned and
controlled
corporations and government financial institutions shall submit, on or
before the last day of February of the year, a financial and
accomplishment report of all the authorized local and foreign travel
undertaken by any of its personnel the previous fiscal year, to the
Senate Committee on Finance and House of Representatives
Committee on Appropriations. Congress may further require the
submission of additional data, documents and information as it may
deem necessary to clarify and/or justify the expenses incurred by any
government
official or employee in the course of an authorized local or foreign
travel.

SEC. 14. Penalties. - Failure to comply with the foreign
currency disclosure requirement under Section 10 of this Act shall be
punishable with imprisonment of six (6) years and one (1) day to
twelve (12) years and a fine ranging from Three Hundred Thousand
Pesos (Php 300,000.00) to Five Hundred Thousand Pesos.(Php
500,000.00), without prejudice to the application of other criminal,
civil and/or administrative sanctions provided for under other existing
laws, rules and regulations.

Violation of the provisions of Sections 12 and 13 of this Act shall
be punishable with imprisonment of one (1) year and one (1) day to


five (5) years and a fine ranging from One Hundred Thousand Pesos
(P100,000.00) to Three Hundred Thousand Pesos (P300,000.00)
without prejudice to the application of other criminal, civil and/or
administrative sanctions provided for under existing laws, rules and
regulations.

SEC. 15. Separability Clause. -If, for any reason, any part or
provision of this Act is held unconstitutional or invalid, other parts or
provisions thereof, which are not affected, shall continue to remain in
full force and effect.

SEC. 16. Repealing Clause. - All laws, decrees, executive
orders, proclamations and administrative regulations, or parts thereof
inconsistent herewith are hereby repealed or modified accordingly.

SEC. 17. Effectivity Clause. - This Act shall take effect

immediately after its publication in at least two national newspapers of
general circulation.

Approved,