Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City, Metro Manila
15" CONGRESS

HOUSE BILL NO. 4250

Introduced by Representative Roman T. Romulo
Lone District of Pasig City

EXPLANATORY NOTE

The Philippines has a very poor record in curbing graft and corruption in the
government in spite of the numerous laws that have been passed to help lessen and
eventually put a stop to such problem. The corruption is so rampant that no
institution has been spared from it. In recent months, it has been shown to have
plagued even the military and the judiciary.

The deleterious effect of graft and corruption is obvious. For every amount
that goes to the pocket of corrupt government officials, a family is deprived of food,
shelter and health care, and a child is deprived of goad education. Indeed, the
present administration was swept into office on the promise that it will alleviate
poverty by curbing corruption.

One of the institutions created by the Philippine Constitution itself to ensure
transparency in government is the Commission on Audit. Its powers under the
Constitution have been designed to be so broad and extensive in order to make it an
effective and efficient mechanism against corruption. Under Section 2(2) of Article
IX-D, it is given the “exclusive authority to define the scope of its audit and
examination, establish the techniques and methods required therefore, and
promulgate accounting and auditing rules and regulations, including those for the
Prevention and disallowance of irregular, unnecessary, excessive, extravagant, or
unconscionable expenditures, or use of govemment funds and
given its broad powers, there is no reason for the Commission to fail

Unfortunately, corruption, even though institutional, is a problem of individual
moral character at its very root. It is clear that some of the individuals in the
Commission itself have been corrupted by the system instead of being steadfast in
their Constitutional roles as watchdogs in the goverment. In other words, the
watchdogs now need to be watched themselves; a classic case of what we Filipinos
call “bantay-salakay.”

Indeed, any intelligent person would easily see that it would be impossible for
corruption to happen if the resident auditors assigned by the Commission to various
government agencies would only remain faithful to their mandate and do their job
Corruption happens only because the resident auditors allowed it to.

Thus, there is a need to make the auditors themselves more accountable. To
do that, the law must exact higher standards of transparency and accountability from
them. For this purpose, RA 3019 or the “Anti-Graft and Corrupt Practices Act” has to
be amended to that effect.

For these reasons, the passage of this bill is eamestly sought.

HON. ROMAN T. ROMULO


HOUSE OF REPRESENTATIVES
Quezon City, Metro Manila

15" CONGRESS
HOUSE BILL NO. 4250

Introduced by Representative Roman T. Romulo
Lone District of Pasig City

AN ACT TO AMEND SECTION 3 OF REPUBLIC ACT NO. 3019, ENTITLED
“ANTI-GRAFT AND CORRUPT PRACTICES ACT”

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

Section 1. Section 3 of Republic Act No. 3019, entitled “Anti-Graft and Corrupt
Practices Act’, is hereby amended to include a new sub-section (|) and to read as
follows:

Section 3. Corrupt practices of public officers. — In addition to acts
or omissions of public officers already penalized by existing law, the
following shall constitute corrupt practices of any public officer and are
hereby dectared to be unlawful:

(a) Persuading, inducing or influencing another public officer to
perform an act constituting a violation of rules and regulations
duly promulgated by competent authority or an offense in
connection with the official duties of the latter, or allowing himself
to be persuaded, induced, or influenced to commit such violation
or offense.

(b) Directty or indirectly requesting or receiving any gift, present,
share, percentage, or benefit, for himself or for any other person,
in connection with any contract or transaction between the
Government and any other part, wherein the pubiic officer in his
official capacity has to intervene under the law.

(©) Directly or indirectly requesting or receiving any gift, present or
other pecuniary or material benefit, for himself or for another,
from any person for whom the public officer, in any manner or
capacity, has secured or obtained, or will secure or obtain, any
Government permit or ficense, in consideration for the help given
or to be given, without prejudice to Section thirteen of this Act.

(d) Accepting or having any member of his family accept
employment in a private enterprise which has pending official
business with him during the pendency thereof or within one year
after its termination

{e) Causing any undue injury to any party, including the
Govemment, or giving any private party any unwarranted

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benefits, advantage or preference in the discharge of his official
administrative or judicial functions through manifest partiality,
evident bad faith or gross inexcusable negligence. This provision
shail apply to officers and employees of offices or government
corporations charged with the grant of licenses or permits or
other concessions.

(f) Neglecting or refusing, after due demand or request, without

g)

(h)

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sufficient justification, to act within a reasonable time on any
matter pending before him for the purpose of obtaining, directly
or indirectly, from any person interested in the matter some
pecuniary or material benefit or advantage, or for the purpose of
favoring his own interest or giving undue advantage in favor of or
discriminating against any other interested party.

Entering, on behalf of the Government, into any contract or
transaction manifestly and grossty disadvantageous to the same,
whether or not the public officer profited or will profit thereby.

Director or indirectly having financing or pecuniary interest in any
business, contract or transaction in connection with which he
intervenes or takes part in his official capacity, or in which he is
Prohibited by the Constitution or by any law from having any
interest.

Directly or indirectly becoming interested, for personal gain, or
having a material interest in any transaction or act requiring the
approval of a board, panel or group of which he is a member,
and which exercises discretion in such approval, even if he votes
against the same or does not participate in the action of the
board, committee, panel or group.

Interest for personal gain shall be presumed against those public
officers responsible for the approval of manifestly unlawful,
inequitable, or irregular transaction or acts by the board, panel of
group to which they belong,

Knowingly approving or granting any license, permit, privilege or
benefit in favor of any person not qualified for or not legally
entitled to such license, permit, privilege or advantage, or of a
mere representative or dummy of one who is not so qualified or
entitled.

Divulging valuable information of a confidential character,
acquired by his office or by him on account of his official position
to unauthorized persons, or releasing such information in
advance of its authorized release date.

FAILURE, DUE TO GROSS NEGLIGENCE OR DELIBERATE
REFUSAL TO ACT WITHOUT ANY REASONABLE EXCUSE
OR FOR PERSONAL GAIN, TO PERFORM AN ACT
INHERENT TO HIS APPOINTED POSITION OR LAWFUL
DESIGNATION, TO DISAPPROVE, DISALLOW, AUDIT OR
REPORT MANIFESTLY IRREGULAR, UNNECESSARY,
EXCESSIVE, EXTRAVAGANT, OR UNCONSCIONABLE
EXPENDITURES, OR USE OF GOVERNMENT FUNDS AND
PROPERTIES, WHICH CONSTITUTE AND/OR AID ANY

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CORRUPT PRACTICES UNDER THIS ACT OR EXISTING
LAWS.

INTEREST FOR PERSONAL GAIN SHALL BE PRESUMED
AGAINST THOSE PUBLIC OFFICERS WHO FAIL TO
DISAPPROVE, DISALLOW, AUDIT OR REPORT MANIFESTLY
IRREGULAR, UNNECESSARY, EXCESSIVE, EXTRAVAGANT,
OR UNCONSCIONABLE EXPENDITURES, OR USE OF
GOVERNMENT FUNDS AND PROPERTIES.

The person giving the gift, present, share, percentage or benefit
referred to in subparagraphs (b) and (c); or offering or giving to the
public officer the employment mentioned in subparagraph (d); or urging
the divulging or untimely release of the confidential information referred
to in subparagraph (k) of this section shall, together with the offending
Public officer, be punished under Section nine of this Act and shall be
permanently or temporarily disqualified in the discretion of the Court,
from transacting business in any form with the Government.

Section 2. This Act shall take effect fifteen (15) days after its publication in the
Official Gazette or in at least two (2) newspapers of general circulation.

Approved.