Republic of the Philippines
House of Representatives
Quezon Gity, Motes Manilx

* RECEIVED ~
PATE: Aus 17 ai
TIME:,

EIGHTEENTH CONGRESS
Second Regular Session

7402

House Bill No.

INTRODUCED BY
REP. ALFRED VARGAS

AN ACT
PENALIZING THE ILLICIT ENRICHMENT OF PUBLIC OFFICIALS AND
EMPLOYEES FOR THE ACQUISITION OF PROPERTIES THROUGH
UNLAWFUL MEANS

EXPLANATORY NOTE

‘The State has the power to recover from public officials or employees,
as well as their transferees or nominees, properties which were illegally
acquired by them. Republic Act No. 1379, otherwise known as “An Act
Declaring Forfeiture in Favor of the State Any Property Found to Have Been
Unlawfully Acquired by Any Public Officer or Employee and Providing for the
Proceedings Therefor” enforce this power.

However, while Republic Act No. 1379 provides a procedure for
forfeiture to be followed when said public officials or employees amass,
accumulate, or acquire unexplained wealth, and imposes upon them the
penalty of forfeiture of the properties unlawfully acquired, the said law does
not criminalize their acts of unlawful acquisition of said properties. Actions
brought under R.A. No. 1379 are classified as civil actions in rem directed at
the assets illegally acquired, and do not pass upon the criminal liability of
the public officer or employee who acquired them. Thus, even if economic
penalty is imposed and the further use of the properties seized is stopped,
said public officials or employees remains not guilty of any crime in the eyes
of the law and is not made to suffer any penalty.

Public servants are to be reminded of their commitment to
transparency and accountability, and are to be held with higher standards
for public service


‘This bill seeks to curb graft and corruption in public service by
penalizing and criminalizing public officials and employees proven to have
acquired ill-gotten wealth.

In view of the foregoing, the immediate passage of this bill is urgently

sought.

7,

FRED VARGAS


Republic of the Philippines
House of Representatives
Quezon City, Meteo Manila

EIGHTEENTH CONGRESS
Second Regular Session

7402

House Bill No. ____”

INTRODUCED BY
REP. ALFRED VARGAS

AN ACT

PENALIZING THE ILLICIT ENRICHMENT OF PUBLIC OFFICIALS AND
EMPLOYEES FOR THE ACQUISITION OF PROPERTIES THROUGH

UNLAWFUL MEANS

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

SECTION 1. Short Title. - This Act shall be known as the “Anti- Ill-Gotten
Wealth Act”.

SECTION 2. Declaration of Policy. - It is hereby declared the policy of the
State that public office is a public trust. Public officers and employees must,
at all times, be accountable to the people and serve them with utmost
responsibility and integrity.

SECTION 3. Definition of Terms. - As used in this Act, the following words
and phrases shall mean:

a.) Legitimately-acquired property - means any real or personal
property, money, salary, business interest or securities which
the public officer or employee has, at any time, acquired by sale,
donation, inheritance or other mode of acquisition before
becoming a public office or employee, or any property already
pertaining to him when he qualified for public office or
employment, and the income or fruits from said properties. It
shall not include:

1. Property unlawfully acquired by the public officer or
employee but its ownership is concealed or recorded in the
name of, or held by, the public officer or employee’s spouse,
ascendants, descendants, relatives, or any other person;


2. Property unlawfully acquired by the public officer or
employee but transferred by him to another person or
persons.

b.) Unlawful acquisition - shall refer to the acquisition by a public
officer or employee of funds or property which is manifestly out
of proportion to his salary as such public officer or employee
and to his other lawful income and the income from legitimately
acquired property. It shall also include those properties which
are not legitimately acquired as defined under paragraph (a) of
this Section.

SECTION 4. Unlawful Acquisition of Property. - It shall be unlawful for
any public officer or employee to directly or indirectly acquire, possess,
receive, use, benefit, or otherwise enjoy, real or personal properties, money,
assets, business interests, or securities, within or outside of the Philippines,
which amount is manifestly out of proportion to his salary as such public
officer or employee and to his other lawful income and the income from
legitimately acquired property. It shall also be unlawful to knowingly acquire
properties which are not legitimately acquired as defined under paragraph
(a) of the preceding Section. It shall also be unlawful for any public officer or
employee to transfer or convey, directly or indirectly, any interest in said
properties to another person or entity. Such transfer or conveyance shall be
void ab initio.

SECTION 5. Prohibition on Private Individuals. - It shall be unlawful for
any private individual to directly or indirectly acquire, possess, receive, use,
benefit, or otherwise enjoy, real or personal properties, money, assets, and
securities, within or outside of the Philippines, from a public officer or
employee knowing the same to have been illegally acquired by the latter.

SECTION 6. Prima Facie Presumptions. —

a.) Whenever any public officer or employee has acquired during
his incumbency fund or properties which are manifestly out of
proportion to his salary as such public officer or employee, and
to his other lawful income and the income from legitimately
acquired property, said funds or properties shall be presumed
prima facie to have been unlawfully acquired.

b.) Failures of a public officer or employee to file a Statement of
Assets, Liabilities and Net Worth within the period prescribed by
law from date of assumption to office shall be prima facie
evidence that said public officer or employee has no property,
asset or business interest to declare at the beginning of his
public service or without prejudice to the penalties that may be
impose under the law. The failure to file a Statement of Assets,
Liabilities and Net Worth for any particular year after


assumption to office shall be prima facie evidence that the
public officer or employee has no other information to declare
outside of his declaration in his prior submissions without
prejudice to any liabilities that may have been incurred under
existing laws.

SECTION 7. Penalties. - Any public officer or employee who shall illegally
enrich himself through the unlawful acquisition of the properties above-
mentioned shall be penalized with imprisonment of not less than six (6)
years and one day but not more than twelve (12) years, or a fine not
exceeding twice the amount of the property illegally acquired, or both such
imprisonment and fine, perpetual absolute disqualification from public
office, and confiscation or forfeiture in favor of the government of the
unlawfully acquired properties.

The penalty of imprisonment for not less than one year and one day to not
more than six (6) years, or a fine not exceeding twice the amount of the
property conveyed or transferred, shall be imposed upon any private
individual who shall knowingly acquire, possess, receive, use, benefit from,
or otherwise enjoy, properties unlawfully acquired by any public officer or
employee.

SECTION 8. Separability Clause. - If, for any reason, any part, section or
provision of this Act is held invalid or unconstitutional, the remaining
provisions not affected thereby shall continue to be in full force and effect.

SECTION 9. Repealing Clause. - All laws, decrees, orders, rules and
regulations, or other issuances or parts thereof inconsistent with the
provisions of this Act are hereby repealed or modified accordingly.

SECTION 10. Effectivity. This Act shall take effect after fifteen (15) days
after its publication either in the Official Gazette or in a newspaper of
general circulation.

Approved,