FOURTEENTH CONGRESS OF THE REPUBLIC } 
OF THE PHILIPPINES 
1 
First Regular Session 
1 
S E N A T E  
S.B. NO. 
266 
, 
+A. . 
Introduced by Senator Francis N. Pangilinan 
EXPLANATORY NOTE 
The events involving Major General Carlos Garcia of the Armed Forces of the Philippines appear 
to uncover graft and corrupt acts in the highest levels of the AFP thus making it imperative for an 
independent and impartial body to initiate and undertake an investigation on the matter in order to identify 
the root causes of malpractices in the Armed Forces and recommend criminal prosecution as well as long 
term solutions and reform measures. The AFP is the fortress of national defense and as such must 
maintain integrity and stability at all times. Allegations of graft and corruption, especially where higher 
ranking AFP officials are allegedly involved, should not go unnoticed for these breed political and military 
disenchantment. To turn a blind eye is to tolerate and encourage further acts of graft and corruption, 
endangering political stability. Moreover, it is the responsibility of the State to ensure that the annual budget 
allocated to the military is properly accounted. Thus, the formidable challenge of ridding the government of 
graft and corruption may as well begin with the cleansing of one of the most powerful government 
institutions. 
The proposed bill seeks to create an independent fact-finding commission that will investigate and 
delve into the alleged anomalies permeating within the AFP bureaucracy at various levels, committed by 
uniformed personnel and AFP officers alike. The Commission, to be composed of a retired Justice of the 
Supreme Court, a retired officer of the Armed Forces with known probity and integrity and representatives 
of both Houses of Congress, is vested with powers necessary to perform its functions: inquire, without need 
of court order, into bank accounts or investments which the Commission has reasonable ground to believe 
contains proceeds of or are in any way related to acts of graft and corruption, issue summons and 
subpoena, and call upon other government agencies for assistance. Based on its findings, the proposed 
fact-finding commission is also tasked to recommend measures to prevent the commission and 
perpetuation of graft and corruption in the AFP. T 
FRANCIS N. 
GlLlNAN 


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FOURTEENTH CONGRESS OF THE REPUBLIC } 
OF THE PHILIPPINES 
1 
First Regular Session 
1 
S E N A T E  
26s; 
S.B. NO. 
Introduced by Senator Francis N. Pangilinan 
AN ACT 
INVESTIGATION OF ALLEGATIONS OF GRAFT AND CORRUPTION IN THE ARMED FORCES OF 
THE PHILIPPINES 
CREATING AN INDEPENDENT COMMISSION TO CONDUCT A THOROUGH FACT-FINDING 
Be it enacted by the Senate and the House of Representatives of the Philippines in Congress assembled: 
SECTION 1. Creation. - There is hereby created an independent Commission which shall 
investigate all the facts and circumstances of the alleged graft and corruption in the Armed Forces of the 
Philippines, and recommend measures to prevent the same. 
SEC. 2. Powers and Functions. - The Commission shall have the following powers and functions: 
(a) 
Conduct a thorough fact-finding investigation of the allegations of graft and corruption in the 
Armed Forces of !he Philippines and submit its findings and recommendations to the President, the 
Congress, and other appropriate authorities not later than three (3) months from the effectivity of this Act; 
(b) 
Receive, review and evaluate the evidence adduced and to this end, summon witnesses, 
administer oaths, take testimony or receive evidence relevant to the investigation, and to issue subpoena 
ad fesfificandum or subpoena duces tecum to produce documents, books, records and other papers; 
(c) 
Turn over to the appropriate prosecutorial authorities all evidence involving any person 
when in the course of its investigation, the Commission finds that there is reasonable ground to believe that 
such person appears to be liable for acts of graft and corruption; 
(d) 
Notwithstanding the provisions of Republic Act No. 1405, as amended, Republic Act No. 
6426, as amended, Republic Act No. 8791, and other laws, the Commission may require into or examine 
any bank deposit, trust or investment fund, or banking transaction in the name of and/or utilized by a 
person, natural or juridical, under investigation by the Commission, in any banking or non-bank financial 
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institution and their subsidiaries and affiliates, without need of court order, when the Commission has 


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reasonable ground to believe that such funds contain proceeds of or are in any way related to the alleged 
acts of graft and corruption: and 
(e) 
objectives of this Act. 
Exercise such other acts incident to or are appropriate and necessary in connection with the 
SEC. 3. Bar Against Court Injunction; Exception, Supreme Court. - No court, except the Supreme 
Court, shall issue any restraining order or preliminary injunction on any matter involving the official acts of 
the Commission pursuant to this Act and of the Monetary board under paragraph (d) of Section 2 hereof. 
SEC. 4. Composition, Qualification, and Salary. - The Commission shall be composed of five (5) 
members. of whom: 
Members. - The Commission shall be composed of seven (7) members: 
a Chairman, who shall be a retired Justice of the Supreme Court and shall be appointed 
by the President: 
two (2) members, who shall be designated by the Senate President, one of whom shall 
be a member of the majority party and one of whom shall be a member of the minority 
party: and 
two (2) members, who shall be designated v h e  Speaker of the House, one of whom 
shall be a member of the majority party and one whom shall be a member of the 
minority party. 
Qualifications. - The Chairman and members shall be citizens of the Philippines, at least forty 
(40) years of age, and have an established reputation for integrity, honesty, probity and 
professional competence. 
Salary. - The Chairman and members shall be entitled to receive reasonable compensation. 
SEC. 5. Tenure and Turn Over of Records. - The Commission is hereby given six (6) months 
from the effectivity of this Act to attain the objectives set forth herein. The Commission shall be functus 
officio upon the lapse of such period and upon submission of its report, and shall turn over all its records, 
assets and properties to the Department of Justice. 
SEC. 6. Orderly Conduct of Proceedings. - The Commission shall adopt rules and procedures for 
orderly conduct of its investigation, proceeding and hearing, including the presentation of evidence. The 
rules of evidence under the Revised Rules of Court shall have suppletory application. 


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SEC. 7. Conduct of Hearings. - Proceedings and hearings of the Commission, sitting en banc, 
shall be open to the public. The Commission may, motu propio or upon request of the person testifying, 
hold an executive or closed-door hearing where matters of national security or public safety are involved or 
the personal safety of the witness warrants the holding of such executive or closed-door hearing. The 
Commission shall prescribe the rules to govern such executive or closed-door hearings. 
Any person called to testify before the Commission shall have the right to counsel at any stage of 
the proceedings. 
SEC. 8. Rght Against Self-hcrimination; Protecfion of Witness. - No person shall be excused 
from attending and testifying or from producing documents, books, records, correspondence, or other 
evidence in obedience to a subpoena issued by the Commission on the ground that his testimony or other 
evidence required of him may tend to incriminate him or subject him to penalty or forfeiture. After having 
invoked his right against self-incrimination, his testimony or any evidence produced by him shall not be 
used against him in any proceedings, except for perjury committed in so testifying. 
The Commission shall protect any person called to testify by providing the necessary and 
reasonable security arrangements with the assistance and cooperation of the Armed Forces of the 
Philippines and other appropriate government agencies. 
SEC. 9. Direct and Indirect Contempt. - The Commission may file a petition to cite in direct or 
indirect contempt any person guilty of misbehavior in the presence of or so near the Commission as to 
obstruct or interrupt the proceedings before the same, including disrespect towards its officials, offensive 
personalities towards other, or refusal to be sworn or to answer as a witness, or to subscribe to an affidavit 
or deposition, or produce documents, when lawfully required to do so. 
SEC. 10. Personnel of the Commission. - The Chairman shall have the power to engage the 
services of such persons or personnel including a Commission Counsel, Deputy Commission Counsel(s) or 
such other officials as may be required for the effective performance of its functions and responsibilities, to 
fix their duties and compensation, to organize the structure and staffing pattern of the Commission: and to 
authorize the payment of honoraria andlor allowance for deputized officers and officials subject to the 
pertinent accounting and auditing rules and procedures, The persons appointed, designated, deputized or 
contracted by the Commission shall be subject to the Civil Service Law, rules and regulations. 


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SEC. 11. Promulgation of Rules and Regulations; Publicafion of Rules and Reporfs. - The 
Commission shall have the power to promulgate its rules and regulations, enter into contracts, and perform 
any and all other acts necessary or incidental to the attainment of the objectives of this Act. 
Commission rules and regulations shall be published in at least two (2) national newspapers of 
general circulation and shall take effect two (2) days after its publication. The final report submitted to the 
President and to Congress shall be published. 
SEC. 12. Role of Other Government Agencies. - The Commission may call upon any 
government investigative and prosecutorial agency, including the National Bureau of Investigation and the 
Philippine National Police, to make available their offices, personnel and facilities to attain the objectives of 
this Act. 
SEC. 13. Appropriations. - The sum of Three million pesos (P 3,000,000.00) is hereby provided 
to the Commission, chargeable against the Contingent Fund. The said amount shall automatically be 
released to the Commission for disbursement in accordance with the auditing rules and regulations. 
SEC. 14. Repealing Clause. - All laws, decrees, executive orders, rules and regulations or parts 
thereof, including the relevant provisions of Republic Act No. 1405, as amended, Republic Act No. 6426, as 
amended, Republic Act No. 8791, and other similar laws, as are inconsistent with this Act are hereby 
repealed, amended, or modified accordingly. 
SEC. 15. Separabilify Clause. - If any provision of this Act is declared unconstitutional, the same 
shall not affect the validity and effectivity of the other provisions hereof. 
SEC. 16. €ecfivity. - This Act shall take effect two (2) days following its publication in at least 
two (2) national newspapers of general circulation. 
Approved.