THIRTEENTH CONGRESS OF THE REPUBLIC 
) 
OF THE PHILIPPINES 
1 
6 SCi” 25 - 7  :? 
Third Regular Session 
) 
S E N A T E  
Introduced by Senator Franklin M. Drilon 
EXPLANATORY NOTE 
The Constitution mandates the State to “provide immediate and adequate care, 
benefits, and other forms of assistance to war veterans and veterans of military 
campaigns, their surviving spouses and orphans. Funds shall be provided therefor and 
due consideration shall be given them in the disposition of agricultural lands of the 
public domain and, in appropriate cases, in the utilization of natural resources.” (Section 
7, Article XVI ) 
of this constitutional mandate. 
However, the war veterans have yet to see the full benefits of the implementation 
Moreover, it is alarming to note that in 2005, the total unpaid obligations of the 
government to our war veterans and military retirees has already amounted to P42 
billion. 
This bill proposes, therefore, that proceeds from the development, lease andlor 
use of certain government properties, shall be utilized for the payment of the benefits of 
war veterans and military retirees. Through such, we take a closer step to ensuring that 
pensions and other benefits of veterans and military retirees are properly funded. 
Further, this measure provides that payment of pensions and benefits to veterans 
and military retirees which could not be covered by the development, lease andlor use 
of the properties enumerated shall continue to be assumed by the national government 
from other sources. 
We wish to uphold and secure the well-being of these unsung heroes who played 
important and crucial roles in our struggle for independence of our country. Caring for 
our war veterans and military retirees is not only a legal obligation, but also a moral 
obligation of the government. They fought for the country and the least the government 
can do is to provide them enough support for their daily sustenance and for their family. 
Our veterans suffered defending this country. They should not suffer more from 
waiting for what is rightfully theirs. 
The immediate passage of this bill is earnestly sought. 


THIRTEENTH CONGRESS OF THE REPUBLlC 
) 
OF THE PHILIPPINES 
1 
6 
25 ,‘, 1 :”!; 
Third Regular Session 
1 
S E N A T E  
Introduced by Senator Franklin M. Drilon 
AN ACT 
MANDATING THE USE OF THE PROCEEDS FROM THE DEVELOPMENT, LEASE 
AND/OR USE OF GOVERNMENT PROPERTIES FOR VETERAN’S PENSIONS AND 
BENEFITS 
Be it enacted by the Senate and the House of Representatives in Congress 
assembled: 
Section 1. Declaration of Policy. - It hereby declared the policy of the State to 
provide the necessary funds to pay the arrears in the veterans and military retirees’ 
pensions and benefits pursuant to the constitutional mandate providing for immediate 
and adequate care, benefits and other forms of assistance to war veterans and veterans 
of military campaigns. 
Section 2. Coverage. - This Act shall apply to development, lease and/or use 
of the following properties of the government : 
former site of the Philippine Veterans Affairs Office (PVAO), 
Arroceros Street, Ermita, Manila; 
Veterans Memorial Medical Center, Quezon City; 
Veterans Center, Taguig, Metro Manila; 
all properties given by the Japanese government to the government 
of the Philippines under the Reparations Agreement, including the 
Roppongi and Nampeidai properties in Tokyo, Japan and the Naniwa- 
cho and Obanoyan properties in Kobe, Japan; and 
other properties that may be identified by the Office of the President. 
1. 
’ 2. 
3. 
4. 
5. 
Section 3. Utilization of the Proceeds of the Development, Lease and/or 
Use of Government Properties. - All proceeds from the development, lease and/or 
use of the properties under Section 2 of this Act , shall be utilized to fund pensions and 
other benefits of veterans and military retirees, whether in arrears or due for payment by 
the national government: Provided, That payment of pensions and benefits to veterans 
and military retirees which could not be covered by the development, lease and/or use 
of the properties under Section 2 of this Act, shall continue to be assumed by the 
national government from other sources, and that this Act is not intended to be in full 
satisfaction of said pensions and benefits; Provided, further, That proceeds and receipts 
from the development, lease and/or use of the properties under Section 2 of this Act, 
shall be remitted and/or deposited directly to any government bank as the depository 


bank, and shall be managed by the PVAO solely for purposes of distribution of pensions 
and benefits of war veterans and military retirees. 
Section 4. Implementing Agencies. - For purposes of implementing the 
provisions of this Act, the Privatization Council, composed of the Secretary of the 
Department of Finance (DOF) as Chairman and the Secretaries of the Department of 
Justice (DOJ), Department of Budget and Management (DBM), Department of Trade 
and Industry (DTI) and the Director-General of the National Economic Development 
Authority (NEDA), as members, 
is hereby empowered to direct, supervise and 
coordinate private sector participation in the development, lease and/or use of the 
properties under Section 2 of this Act, for the maximum generafion of cash recovery for 
the benefit of the war veterans and military retirees. 
The Privatization and Management Office (PMO) under the DOF is hereby 
authorized to implement the actual marketing for the development, lease and/or use of 
the properties under Section 2 of this Act, after securing the approval of the Council, 
and to perform the following additional functions: 
a. To execute and deliver, on behalf of the national government, the deeds, 
contracts and other instruments as may be necessary or appropriate to effect 
the development, lease and/or use of the properties under Section 2 of this 
Act; 
b. To secure possession of and conserve the same; 
c. To engage the services of experts as may be necessary in the fulfillment of its 
tasks: 
d. To submit periodic reports to the Council and to the PVAO on the status of 
private sector participation in the development, lease and/or use of the 
properties under Section 2 of this Act, and 
e. To adopt such rules and regulations as may be necessary to effect the 
provisions of this Act. 
Section 5. lmplementing Rules and Regulations. - Within six (6) months 
after the enactment of this Act, the Department of National Defense, through the PVAO; 
the DOF, through the PMO and in coordination with the Senate Committee on National 
Defense and Security and the House Committee on Veterans Affairs, shall promulgate 
the implementing rules and regulations of this Act. 
Section 6. 
Repealing Clause. - All laws, executive orders, letters of 
instruction, rules and regulations, or provisions thereof which are inconsistent with the 
provisions of this Act are hereby repealed, amended or modified accordingly. 
Section 7. Separability Clause. - If any portion hereof shall be held invalid or 
unconstitutional, such invalidity or unconstitutionality shall not affect the other provisions 
which shall remain in full force and effect. 
Section 8. Effectivity. - This Act shall take effect fifteen (15) days after its 
publication in at least two (2) national newspapers of general circulation. 
Approved.