Republic of the Phil
HOUSE OF REPRESENTATIVES
Quezon City

FIFTEENTH CONGRESS
First Regular Session

1214
House Bill No.

Introduced by Representatives
DIOSDADO MACAPAGAL ARROYO and GLORIA MACAPAGAL ARROYO

AN ACT
TO STRENGTHEN THE OFFICE OF THE GOVERNMENT CORPORATE COUNSEL
BY RE-DEFINING, EXPANDING, STRENGTHENING, RATIONALIZING AND
FURTHER PROFESSIONALIZING ITS ORGANIZATION, UPGRADING EMPLOYEE
BENEFITS AND APPROPRIATING FUNDS THEREFOR AND FOR OTHER
PURPOSES

EXPLANATORY NOTE

Since its inception during the Commonwealth Period until such time it became a
mere division under the Department of Justice, the Office of the Government Corporate
Counsel (OGCC) has evolved into an entity which plays a vital role in the country's
justice system. It has grown over the years and oversees and provides legal services to
approximately 600 government-owned and controlled corporations, government
instrumentalities with corporate powers, government financial institutions and
government corporate entities, their subsidiaries and corporate offsprings (to be referred
hereinafter as “government corporations”).

Executive Order No. 292, otherwise known as the Administrative Code of 1987,
expressly defines the mandate of the OGCC, in particular, (1) to act as the principal law
office of all government corporations and (2) exercise control and supervision over all
legal departments or divisions thereof maintained separately. Later executive
issuances further strengthened and enhanced OGCC’s mandate and responsibilities
over the legal affairs of various government corporations. And given the crucial and
important role of these corporations in the country’s economic growth and development
being the primary vehicles in the implementation of vital government projects, the


OGCC is in dire need of augmentation to provide better services its clientele
corporations.

There has been a substantial increase in the volume, complexity and the
importance of the OGCC’s mandate due to escalating demands of government activities
and transactions. Statistics show that the OGCC responds to and handles an
increasing number of requests for legal advice and cases per year, in addition to the
performance of its adjudicatory and other functions. The work in the OGCC is presently
performed by its current complement of only 57 lawyers which includes the Government
Corporate Counsel himself and augmented by administrative support personnel of 69
employees.

A timely increase in its personnel and a corresponding adjustment in their
compensation and benefits are imperative in maintaining the OGCC’s effectiveness and
to help it adapt to the continuous changing conditions of the legal service. It is therefore
clear that there is an urgent need to re-define and strengthen its mandate by
streamlining, further professionalizing and rationalizing its functions and organization. It
is of the utmost importance when the public interest is protected as a result of a more
effective and efficient OGCC

In view of the foregoing reasons, we urge our colleagues for the expeditious
approval of this measure.

DIOSDADO ‘APAGAL ARROYO. oxo ARROYO.
Second District, Camarines Sur S¢cond District, Pampanga

ie


Republic of the Philippines
HOUSE OF REPRESENTATIVES,
Quezon City

FIFTEENTH CONGRESS
First Regular Session

"i 41214

House Bill No.

Introduced by Representatives
DIOSDADO MACAPAGAL ARROYO and GLORIA MACAPAGAL ARROYO

AN ACT
TO STRENGTHEN THE OFFICE OF THE GOVERNMENT CORPORATE COUNSEL.
BY RE-DEFINING, EXPANDING, STRENGTHENING, RATIONALIZING AND
FURTHER PROFESSIONALIZING ITS ORGANIZATION, UPGRADING EMPLOYEE
BENEFITS AND APPROPRIATING FUNDS THEREFOR AND FOR OTHER
PURPOSES

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

SECTION 1. Declaration of Policy. - It shall be the policy of the State to protect
and promote the welfare, rights and interests of government-owned and controlled
corporations, their subsidiaries, other corporate offsprings, including government
acquired asset corporations, government corporate entities and government
instrumentalities with corporate powers, government financial institutions, and other
government entities, agencies and offices hereafter referred to as “government
corporations”

Toward this end, the State shall require the improvement of legal services in the
government to efficiently and effectively address the expanding needs of these
government corporations in accordance with its initiative towards an improved fiscal
management and good corporate governance.


SECTION 2. Jurisdiction and Mandate. - Any law to the contrary notwithstanding,
the Office of the Government Corporate Counsel (‘OGCC’) shall be the legal counsel
and principal law office of all government corporations. All government corporations
shall refer to the OGCC the following:

a) All legal questions for opinion and advice;

b) Prior to their execution, all contracts for review; and

c) All cases for representation before regular courts, quasi-judicial bodies,
administrative agencies and arbitral tribunals, Provided, That: the Government
Corporate Counsel ("GCC") may thereafter authorize the legal department of the
government corporation as collaborating counsel to handle cases, as the urgency
or expediency of circumstances may warrant.

In addition, the OGCC shall:

a) Conciliate, mediate, arbitrate or adjudicate all disputes or controversies
exclusively between government corporations;

b)

Exercise control and supervision over the legal departments of all government
corporations;

©

Approve the engagement of services of private lawyers by the government
corporations; and

di)

Enforce the Property Insurance Law pursuant to Republic Act No. 656, as
amended by Presidential Decree No. 245, in domestic or international
transactions,

The OGCC shall be an independent and autonomous office attached to the

Department of Justice. All opinions and issuances of the OGCC shall be binding on all
government corporations.

SECTION 3. Expansion and Upgrading of Positions. - The GCC shall have a
cabinet rank and the same prerogatives, salary, allowances, benefits and privileges as
the Presiding Justice of the Court of Appeals. He/she shall be assisted by a Deputy
Government Corporate Counsel ("DGCC") and twelve (12) Assistant Government


Corporate Counsels ("AGCC") who shall have the rank, salary, allowances, retirement
and benefits, and privileges of an Associate Justice of the Court of Appeals.

No person shall be appointed GCC, DGCC or AGCC unless he/she is a natural-
bom citizen of the Philippines and, for at least ten (10) years, has been engaged in the
practice of law in the Philippines.

The number, rank, qualifications for appointment, salary, allowances, retirement
and other benefits, and privileges of the other members of the legal staff shall be as
follows:

a) Twenty (20) Government Corporate Attorney IV (the “GCA IV") who shall have
the rank, salary, allowances, retirement and benefits, and privileges of a
Regional Trial Court Judge. No person shall be appointed GCA IV unless he/she
is a natural-born citizen of the Philippines and, for at least eight (8) years, has
been engaged in the practice of law in the Philippines;

Ss

Twenty (20) Government Corporate Attorney 111 (the GCA III") who shall have
the rank, salary, allowances, retirement and benefits, and privileges of a
Metropolitan Trial Court Judge. No person shall be appointed GCA Ill unless
he/she is a natural-born citizen of the Philippines and, for at least five (5) years,
has been engaged in the practice of law in the Philippines;

°)

Twenty (20) Government Corporate Attorney |! (the “GCA II") who shall have the
tank, salary, allowances, retirement and benefits, and privileges of a Municipal
Trial Court Judge in Cities. No person shall be appointed GCA II unless he/she
is a natural-born citizen of the Philippines and, for at least four (4) years, has
been engaged in the practice of law in the Philippines;

d)

Ten (10) Government Corporate Attorney | (the "GCA |") who shall have the rank,
salary, allowances, retirement and benefits, and privileges of a Municipal Trial
Court Judge. No person shall be appointed GCA | unless he/she is a natural-
born citizen of the Philippines and, for at least three (3) years, has been engaged
in the practice of law in the Philippines;

&

Seven (7) Associate Government Corporate Attorney II who must be members of
the Philippine Bar and, for at least two (2) years, has been engaged in the
practice of law in the Philippines; and,


f) Five (5) Associate Government Corporate Attorney | who must be members of
the Philippine Bar and, for at least one (I) year, has been engaged in the practice
of law in the Philippines.

The GCC shall serve for a fixed term of six (6) years reckoned from the date of
his/her appointment. The fixed term of the GCC shall apply and commence to
appointments to the said position beginning July 1, 2010.

The GCC, DGCC and AGCC shall be appointed by the President of the
Philippines. The other members of the legal staff and administrative personnel shall be
appointed by the GCC. Appointments of the DGCC, AGCC and other members of the
legal staff shall be deemed permanent upon compliance with the qualification standards
heretofore stated.

The administrative structure of the OGCC shall be organized into the Finance
and Accounting Services, the Human Resource and Management Services, the Case
and Records Management Services, the Library Management and Information
Technology Services and the Property and Supply Services.

The legal and non-legal staff of the OGCC occupying the positions affected by
the changes embodied in this Act at the time of its approval shall thereafter occupy and
discharge the duties and functions of the upgraded positions and receive the
corresponding salary and benefits without necessity of new appointment.

SECTION 4. Compensation. - The basic monthly compensation of the legal staff
shall be as follows:

Position Salary Grade
From To
Government Corporate Counsel 30 31
Deputy Government Corporate Counsel 29 30
Assistant Government Corporate Counsel 29 30
Government Corporate Attorney IV 28 29
Government Corporate Attorney III 27 28
Government Corporate Attorney II 26 27
Government Corporate Attorney | 25 26
Associate Government Corporate Attorney | 22 24

Associate Government Corporate Attorney II 18 23


The non-legal personnel shall have the same compensation as that of their
counterparts in the Office of the Solicitor General and Court of Appeals

The salaries and privileges of the personnel of the OGCC granted under this Act
may further be increased to match any corresponding increase in salaries and privileges
subsequently granted to their respective counterparts in the judiciary.

SECTION 5. Personnel Benefits and Privileges. — Provisions of other laws to the
contrary notwithstanding, the OGCC may provide its employees the following benefits

|. Health care services through a health maintenance organization (HMO)
Expenses for the mandatory medical annual check-up of the GCC, the DGCC
and the AGCC shall be for the account of the office.

I, Accident insurance for all employees to be procured by the office at its own
expense during travels while in the performance of official duties;

Ill. Without prejudice to the efficiency of the service, scholarships for deserving
employees on official time and at the expense of the office to upgrade their
knowledge and skills; Provided That, scholars under this provision shall be
selected on the basis of merit as determined by competitive examination;

IV. A provident fund which shall consist of, but not be limited to contributions made
by the office and by its lawyers and employees to a common fund for the
payment of benefits to such lawyers or employees or their respective
beneficiaries/heirs.

SECTION 6. Seminar and other Professional Fees. - Subject to availability of
funds, fees for relevant seminars, as well as professional membership fees for lawyers,
registration fees and related miscellaneous expenses incurred in completing the
mandatory continuing legal education (MCLE) shall be borne by the office. Professional
membership, registration fees including those for mandatory continuing professional
education (CPE), and related miscellaneous expenses of other employees holding
positions for which a professional license is required by the office, shall also be borne
by the OGCC.

SECTION 7. Transportation Benefits. — Subject to the availability of funds,
employees shall be provided with contracted transportation services until such time as
the office can procure additional motor vehicles for this purpose.


SECTION 8. Other Benefits. - Provisions of other laws to the contrary
notwithstanding, the legal staff of the OGCC are allowed to receive allowances and
honoraria from its client-govemment corporations. Employees of the OGCC may
likewise be extended such benefits and privileges as are given to the employees of their
clients.

When the exigency of the service so require, any member of the legal staff may
be designated by the GCC to act in concurrent capacity as corporate officer of, or
assigned to perform special or additional tasks in any of the client government
corporations of the OGCC and by virtue of such designation or assignment, receive
such additional compensation and privileges as may be granted them by the
government corporation concerned.

SECTION 9. Attorney's fees and Special Assessment. - The OGCC is
authorized to receive twenty percent (20%) of all the money claims collected by or
awarded/adjudged to client-government corporations in addition to the attorney's fees
awarded by a court, tribunal or panel, including awards/judgments, stipulated under
court-approved compromise agreements. The OGCC is hereby utilized to use such
awards and attorneys fees to meet contingencies, obligations and undertakings, or for
employee salaries, allowances, other benefits and incentives, necessary or proper to
promote efficiency in the service as determined by the GCC subject to the rules and
regulations of the Commission on Audit and the Department of Budget and
Management may authorize.

The GCC is likewise authorized to make special assessments upon its client
government corporations to similarly meet such contingencies, obligations and
undertakings, or to provide for employee salaries, allowances, other benefits and
incentives, as may be warranted or proper as determined by the GCC.

SECTION 10. Special Allowance. - The GCC, DGCC, AGCC and other
members of the legal staff may be granted special allowances in such amounts to be
determined by the GCC to implement the salary increases. The grant of special
allowances shall be implemented uniformly in such amounts and up to extent only that
can be supported by the funding source specified in Section 11 hereof.

SECTION 11. Funding. - The funds required for the implementation of this Act
including employee benefits shall be taken from:

|. The Twenty percent (20%) share of the money claims collected or awarded in
judgments in favor of government corporations and all Attomey's fees


authorized to be received by the OGCC pursuant to this Act and Executive
Order No. 292 or the Revised Administrative Code of 1987;

ll. Special assessments made by the GCC upon client government corporations;
and

Ill, Other revenues, savings, fees generated and collected and donations received
by the OGCC.

SECTION 12. Franking Privilege. - All official matters and telegrams of the
OGCC addressed for delivery within the Philippines shall be received, transmitted and
delivered free of charge Provided, That such mail matters when addressed to private
persons or non-government offices shall not exceed one hundred and twenty (120)
grams.

SECTION 13. Appropriations. — The amount needed for employees’ salaries,
mandatory allowances and benefits under other laws and office expansion shall be
appropriated in the budget of the OGCC under the annual General Appropriations Act.

SECTION 14. Implementing Rules and Regulations. - Within sixty (60) days from
the approval of this Act, the GCC in consultation with the Secretary of the Justice and
Secretary of Budget and Management, shall promulgate such rules and regulations as
may be necessary to carry out the provisions of this Act.

SECTION 15. Repealing Clause. - Provisions of Executive Order No. 292 or the
Revised Administrative Code of 1987, as amended, Executive Order No. 878 dated
March 4, 1983, Presidential Decree No. 1415 dated June 9, 1978, Republic Act No.
6000 dated August 4, 1969 and other pertinent laws, rules and regulations shall remain
in force and effect unless otherwise contrary or inconsistent with the provisions of this
Act.

SECTION 16. Separability Clause. - \f any of the provisions of this Act is declared
invalid or unconstitutional, the provisions not affected thereby shall continue to be in full
force and effect.

SECTION 17. Effectivity. - This Act shall take effect after fifteen (15) days from its
publication in a national newspaper of general circulation.

Approved,