~el'lidt 
SIXTEENTH CONGRESS OF THE REPUBLIC 
) 
d}ff.; •• 1 til' ,~m,bfQ 
OF THE PHILIPPINES 
) 
First Regular Session 
) 
'13 
AUG -1 P5 :00 
SENATE 
S.No. 
1205 
Introduced by Senator Miriam Defensor Santiago 
EXPLANATORY NOTE 
The Constitution, Article 2, Section 27 provides: 
SEC. 27. The State shall maintain honesty and integrity in public service 
and take positive and effective measures against graft and corruption. 
Graft and corruption has placed a heavy burden in our country throughout our history. In 
2000, the World Bank estimated that the Philippines lost $48 billion (P1.968 trillion) to 
corruption from 1977 to 1997. That amount would have addressed most of our current problems, 
not the very least of them poverty. Each administration has had its own program in fighting graft 
and corruption. Although each has resulted into certain levels of success, we have yet to 
accomplish a truly significant step in fighting corruption. According to economist Alejandro 
Lichauco, the Philippines is perennially in crisis because of "the mortal mix of corruption and 
poverty and a consequent loss of popular confidence in government and the electoral process as 
instruments of change." The fatal mix, he said, is so massive and so intense as to have 
degenerated into a problem of mass hunger and corruption 'that is as massive as the massive-
poverty.l A 2007 World Bank study said that corruption in the Philippines was perceived to be 
the worst among East Asia's leading economies.2 
This bill seeks to provide our anti-graft and corruption agencies with a better tool against 
graft and corruption by addressing the weaknesses of Republic Act No. 3019, otherwise known 
as the "Anti-Graft and Corrupt Practices Act.,,3 
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1 Cost of corruption. Philippine Daily Inquirer_ 12 February 2008. 
2 Dumlao, Doris. WB: Corruption iu RP worst in East Asia. Philippine Daily Inquirer. 25 June 2008. 
3 This bill was originally filed in the FOUiteenth Congress, Second Regular Session. 
1 


SIXTEENTH CONGRESS OF THE REPUBLIC 
) 
OF THE PHILIPPINES 
) 
First Regular Session 
) 
SENATE 
S.No. 
1205 
Introduced by Senator Miriam Defensor Santiago 
'13 
~UG -1 P5:00 
1 
AN ACT 
2 
STRENGTHENlNGREPUBLICACTNO.3019, 
3 
OTHERWISE KNOWN AS THE ANTI-GRAFT AND CORRUPT PRACTICES ACT 
Be it enacted by the Senate and the House of Representatives of the Philippines in . 
Congress assembled: 
4 
SECTION 1. Section 2 of Republic Act No. 3019, otherwise known as the Anti-Graft 
5 
and Corrupt Practices Act, is hereby amended to read as follows: 
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SEC. 2. Definition of Terms. - As used in this Act, that term-
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(a) "Government" 
includes 
the 
national 
government, 
the 
local 
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governments, the government-owned and government-controlled 
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corporations, and all other instrumentalities or agencies of the 
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Republic of the Philippines and their branches. 
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(b) "Public officer" includes elective and appointive officials and 
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employees, permanent or temporary, whether in the classified or 
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unclassified or exempt service, WHETHER OR NOT receiving 
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compensation [, even nominal,] from the government as defined in the 
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preceding subparagraph. 
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(c) "Receiving any gift" includes the act of accepting directly or indirectly 
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a gift from a person other than a member of the public officer's 
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immediate family, in behalf of himself or of any member of his family 
19 
or relative within the fourth civil degree, either by consanguinity or 
20 
affinity, even on the occasion of a family celebration or national 
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festivity like Christmas [, if the value of the gift. is under the 
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circumstances manifestly excessive]. 
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(d) "Person" includes natural and juridical persons, unless the context 
2 
indicates otherwise. 
3 
SECTION 2. Section 3 (b) of the same Act is hereby amended to read as follows: 
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(b) Directly or indirectly requesting or receiving any gift, present, share, 
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percentage, or benefit, for himself or for any other person, in 
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connection with any contract, [or) transaction, OR PROCEEDING 
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between the Government and any other part, wherein the public 
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officer in his official capacity has to intervene under the law. 
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SECTION 3. Section 3 (e) ofRA 3019 is hereby amended to read as follows: 
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(e) Causing any undue injury to any party, including the Government, or 
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giving any private party any unwarranted benefits, advantage or 
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preference in the discharge of his official administrative or judicial 
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functions through SIMPLE [manifest] partiality, [evident) bad faith 
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or gross OR inexcusable negligence. This provision shall apply to 
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officers and employees of offices or government corporations charged 
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with the grant of licenses or permits or other concessions. 
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SECTION 4. Section 3 (g) of the same Act is hereby amended to read as follows: 
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(g) Entering, on behalf of the Government, into any contract or 
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transaction [manifestly and grossly] disadvantageous to the same, 
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whether or not the public officer profited or will profit thereby. 
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SECTION 5. Section 4 (a) of the same Act is hereby amended to read as follows: 
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SEC. 4. Prohibition on private individuals. -
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(a) It shall be unlawful for any person having family or close personal 
24 
relation with any public official to capitalize or exploit or take 
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advantage of such family or close personal relation by directly or 
26 
indirectly requesting or receiving any present, gift or material or 
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II 
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pecumary advantage from any other person having some business, 
transaction, application, request or contract with the government, in 
which such public official has to intervene. Family relation shall 
include the spouse or relatives by consanguinity or affinity in the 
FOURTH [third] civil degree. The word "close personal relation" 
shall 
include close personal 
friendship, 
social 
and fraternal 
connections, and professional employment all giving rise to intimacy 
which assures free access to such public officer. 
SECTION 6. Section 5 ofRA 3019 is hereby amended to read as follows: 
SEC. 4. Prohibition on certain relatives. - It shall be unlawful for the 
spouse or for any relative, by consanguinity or affinity, within the 
FOURTH [third] civil degree, of the President of the Philippines, the 
Vice-President of the Philippines, the President of the Senate, or the 
Speaker of the House of Representatives, to intervene, directly or 
indirectly, in any business, transaction, contract or application with the 
Government: Provided, That this section shall not apply to any person 
who, prior to the assumption of office of any of the above officials to 
whom he is related, has been already dealing with the Government along 
the same line of business, nor to any transaction, contract or application 
already existing or pending at the time of such assumption of public 
office, nor to any application filed by him the approval of which is not 
discretionary on the part of the official or officials concerned but depends 
upon compliance with requisites provided by law, or rules or regulations 
issued pursuant to law, nor to ariy act lawfully performed' in an official 
capacity or in the exercise of a profession. 
SECTION 7. Section 7 of the same Act is hereby deleted. 
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. . 
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SECTION 8. Section 9 (b) of the same Act is hereby deleted. 
2 
SECTION 9. Section II of the same Act is hereby amended to read as follows: 
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SEC. II. Prescription of offenses. - All offenses punishable under this Act 
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shall prescribe in TWENTY [fifteen] years. 
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SECTION 10. Section 12 of the same Act is hereby amended to read as follows: 
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SEC. 12. Termination of office. - ANY PROVISION OF LAW TO 
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THE CONTRARY, NOTWITHSTANDING, No public officer shall be 
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allowed to RECEIVE OR CLAIM RETIREMENT BENEFITS [resign 
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or retire] pending an investigation, criminal or administrative, or pending a 
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prosecution against him, for any offense under this Act, R.A. No. 7080 
II 
"AN ACT DEFINING AND PENALIZING THE CRIME OF 
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PLUNDER" or under the provisions of the Revised Penal Code on 
13 
bribery. 
RESIGNATION 
OF 
A 
RESPONDENT 
PENDING 
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ADMINISTRATIVE INVESTIGATION ARISING FROM ANY 
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VIOLATION OF THIS ACT, R.A. NO. 7080, OR PROVISIONS OF 
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THE REVISED PENAL CODE (RPC) ON BRIBERY SHALL NOT 
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PREJUDICE THE SAID ADMINISTRATIVE CASE AND SHALL 
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PROCEED UNTIL FINALLY RESOLVED. 
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SECTION II. Section 14 of the same Act is hereby amended to read as follows: 
20 
SEC. 14. Exception. -
[Unsolicited gifts or presents of small or 
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insignificant value offered or given as a mere ordinary token of gratitude 
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or friendship according to local customs or usage, shall be excepted from 
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the provisions of this Act.] Nothing in this Act shall be interpreted to 
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prejudice or prohibit the practice of any profession, lawful trade or 
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occupation by any private person or by any public officer who under the 
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law may legitimately practice his profession, trade or occupation, during 
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1 
his incumbency, except where the practice of such profession, trade or 
2 
occupation involves conspiracy with any other person or public official to 
3 
commit any of the violations penallzed in this Act. 
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SECTION 12. Separability Clause. - If any provision or part hereof is held invalid or 
5 
unconstitutional, the remainder of the law or the provision not otherwise affected shall remain 
6 
valid and subsisting. 
7 
SECTION 13. Repealing Clause. - Any law, presidential decree or issuance, executive 
8 
order, letter of instruction, administrative order, rule, or regulation contrary to or inconsistent 
9 
with the provisions of this Act is hereby repealed, modified, or amended accordingly. 
10 
SECTION 14. Effectivity Clause. - This Act shall take effect fifteen (15) days after its 
11 
publication in at least two (2) newspapers of general circulation. 
Approved, 
6