'< 
SIXTEENTH CONGRESS OF THE 
) 
REPUBLIC OF THE PHILIPPINES ) 
Second Regular Session 
) 
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"14 
AUG 27 P 2 :05 
SENATE 
S. B. No. 
2\i75 
Introduced by Senator TEOFISTO "TG" GUINGONA III 
AN ACT PROVIDING FOR THE ACCREDITATION OF NON-GOVERNMENT 
ORGANIZATIONS AND PEOPLE'S ORGANIZATIONS ELIGIBLE TO ACCESS 
GOVERNMENT FUNDS AND FOR A SYSTEM OF ACCOUNTABILITY AND 
TRANSPARENCY 
FOR THE USE OF THESE FUNDS 
Explanatory Note 
Owing to the serious allegations of massive misappropriation of the Priority 
Development Assistance Fund (PDAF), which was accomplished purportedly through certain 
dubious non-government organizations (NGOs), it is imperative that a law should be passed 
creating a body that shall authenticate NGOs and People's Organizations (POs) receiving funds 
from the government. 
The law envisions the Department of Social Welfare and Development (DSWD) to serve 
as the government's central accrediting agency, which will be mandated to screen and monitor 
NGOs and POs, which wish to participate in government contracts. Such validation process 
would ensure that these entities are legitimate, committed, and competent enough to participate 
in the implementation of government programs using public funds. 
To further enhance the DSWD's role as accreditation body, it is mandated to collaborate 
with government agencies such as the Department of Budget and Management (DBM), and 
relevant private sector stakeholders such as NGOs, POs, and the Philippine Council for NGO 
Certification (PCNC). 
Ultimately, the DSWD, as the central accrediting agency of NGOS and POs, would be 
tasked to determine whether or not these entities should be given the "seal of good 
housekeeping," which would allow them to transact with the government. 
Another landmark feature of the bill is the government audit of NGOs and POs, which 
are recipients of government funds, in line with the principle, that government funds, granted to 
NGOs/POs, shall retain their character as public funds. 
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The passage of this bill will enhance transparency, accountability and good governance in 
the allocation and utilization of public funds by ensuring that only legitimate entities that have 
good reputations for integrity, established track records and proven contributions to the 
betterment of society, would be able to participate in government projects. 
In view of the foregoing, the immediate enactment of this measure is earnestly sought. 
/,),:. 
" 
,~, 
G" GUINGONA III 
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SIXTEENTH CONGRESS OF THE 
) 
REPUBLIC OF THE PHILIPPINES ) 
Second Regular Session 
) 
-Srl1ntr 
dlfh" "f 11j. ,:i>"rPtOf¥ 
'14 
AUG 27 P 2 :05 
SENATE 
S.B.No. 
2375 
RECEIVED BY:-f 
Introduced by Senator TEOFISTO "TG" GUINGONA III 
AN ACT PROVIDING FOR THE ACCREDITATION OF NON-GOVERNMENT 
ORGANIZATIONS AND PEOPLE'S ORGANIZATIONS ELIGIBLE TO ACCESS 
GOVERNMENT FUNDS AND FOR A SYSTEM OF ACCOUNTABILITY AND 
TRANSPARENCY FOR THE USE OF THESE FUNDS 
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 "NGO Accreditation for 
Government Fund Releases Act." 
SECTION 2. Declaration of Policy.-It is hereby declared a State policy to encourage 
independent non-government organizations (NGOs) and People's Organizations (POs) to involve 
themselves in undertakings, which promote the interest and welfare of the nation. As facilitators 
of the people's interests at the grassroots level, these organizations may implement programs and 
projects using public funds. Use of such funds shall, at all times, be governed by the principles of 
effectiveness, efficiency, economy, transparency, and accountability, and shall not be prejudicial 
to the public service. It is also the policy of the State to vigilantly guard against organizations 
misappropriating public funds for private ends to the detriment of the public good and of public 
service. 
SECTION 3. Coverage. - This Act shall cover all non-government organizations 
(NGOs) and people's organizations (POs) that seek to implement programs and projects using 
public funds from any department, agency, and ins~mentality of the national government and 
local government units, including government-owned and controlled corporations, and their 
subsidiaries, either through competitive bidding or through direct releases to beneficiaries 
SECTION 4. Definition of Terms. - As used in this Act: 
(a) 
Accreditation refers to the in-depth assessment ofthe capability and capacity of 
a non-government organization or a people's organization to undertake projects 
in connection with the regular programs of government involving the provision 
of goods and services to the public and to determine whether government funds 
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may be entrusted to them to successfully accomplish the particular purpose for 
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which the funds are to be released in a· timely, cost-efficient and transparent 
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manner; 
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(b) 
Beneficiary refers to the community or any of its sectors, which is the intended 
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recipient of the results of the developmental efforts of the NGO or PO, which 
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may include, but should never be ~61eIy, the NGO and PO themselves or their 
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members; 
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(c) 
Funds refer to the government funds from any national government agency, local 
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government unit, government-owned or controlled corporation and their 
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subsidiaries, or any other instrumentality, official or agent of the government; 
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(d) 
Fund Utilization Report (FUR) refers to a document showing the summary of 
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how funds entrusted to an NGO or PO was utilized for a given period of time; 
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(e) 
Government Organization (GO) refers to departments, agencies, and 
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instrumentalities of the national government and local government units, 
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including government-owned and controlled corporations and their subsidiaries; 
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(f) 
Implementer refers to NGOs or POs, which are entrusted with government 
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funds to implement a particular program or project for the social good; 
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(g) 
Non-government organization (NGO) refers to a non-profit, voluntary 
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organization and foundation committed to the task of socio-economic 
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development and established primarily for public service; 
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(h) 
People's organization (PO) refers to a bona fide association of citizens with 
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demonstrated capacity to promote the public interest and with identifiable 
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leadership, membership and structure. This independent community and/or class-
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based association is established to protect and advance the interest of specific 
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causes or sectors of society. 
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SECTION 5. Accreditation - No NGO or PO shall be eligible to implement publicly-
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funded programs and projects without being accredited pursuant to this Act. 
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An NGO or PO, seeking eligibility to implement publicly-funded programs and projects 
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shall apply for accreditation with the Central Accrediting and Repository Agency of the 
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government, based on the criteria set forth in Section 7 of this Act: Provided, That the 
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government office, where an NGO or PO seeks to obtain funds may impose additional 
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requirements for accreditation based on specific circumstances or special needs of the program 
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and proj ect. 
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An NGO or PO seeking accreditation shall pay an accreditation fee to defray the costs 
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incurred in the accreditation processes. The accreditation given to any NGO or PO shall be valid 
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for at least three (3) years, and may, after review and assessment of the Central Accrediting and 
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Repository Agency, be renewed every three years thereafter. 
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SECTION 6. The Department of Social Welfare and Development as Central 
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Accrediting and Repository Agency. - The Department of Social Welfare and Development 
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(DSWD) shall serve as the Central Accrediting and Repository Agency of the government. 
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As Central Accrediting and Repository Agency of the government, the DSWD is tasked 
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to issue a certificate of accreditation which would certify as to the authenticity and capacity of 
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the NGO/PO to participate in the implementation of govemment programs using public funds 
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and its compliance with the criteria for accreditation. It shall also maintain a database for 
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accredited NGOs/POs. 
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In addition, the DSWD should coordinate with the Department of Budget and 
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Management (DBM), and may also engage in partnerships and consultations with the private 
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sector, such as other accreditation bodies, in the exercise of its functions as the Central 
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Accrediting and Repository Agency ofNGOs and POs. 
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SECTION 7. Criteria for Accreditation. - An applicant NGO or PO shall be required to 
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satisfactorily prove and provide evidence on the following; 
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(a) Organizational Profile - The applicant NGO/PO must provide an official organizational 
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profile, which will detail, among others, its history, vision, mission and goals, governance 
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structure, practices, affiliations, and the like. 
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(b) Years of Existence - The applicant NGOICSO/PO must have been in exist~nce and 
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operational for at least three (3) years prior to its application for accreditation. A Certificate 
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of registration with the Securities and Exchange Commission (SEC) and/or the concerned 
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regulatory agencies, depending on the nature of the service required to be rendered, shall be 
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necessary to prove years of existence. Photographs, receipts, employment contracts, proofs of 
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billing, certificate of acceptance under oath by the chief executive officer of the applicant 
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NGO/PO, and other documentary evidence may be used to prove active operations; 
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( c) 
Legal Personalities - The incorporators, organizers, officers, personnel and 
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members of the applicant NGO/PO should be natural persons. Necessary documents to be 
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submitted as proof are the authenticated copy of its latest Articles of Incorporation or the 
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Articles of Cooperation, as the case may be, Secretary's Certificate for incumbent officers, 
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together with the Certificate of Filing with the SEC, or a Certificate of Approval by the 
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Cooperative Development Authority (CDA), two (2) government issued identification cards 
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with photograph of each of the named incorporators, organizers, officers, personnel and 
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members, employment contracts of all personnel and a Secretary's Certificate on the persons 
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who are the incorporators, organizers, officers, personnel or members; 
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(d) 
Fund Sources and Financial Condition -It is in a stable financial condition, and that 
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govemment releases shall not be its sole source of funds. Financial Reports, audited by an 
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Independent Certified Public Accountant, for the past two (2) years preceding the application 
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for accreditation, shall be necessary to show its financial condition; 
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(e) 
Place of Business -It has an operational office in its registered place of business. 
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Documents to be submitted include Mayor's or Business Pennit, Barangay Clearance, and 
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photographs of the office or place of business; 
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(f) 
Successful Track Record - It has a successful track record of providing assistance to 
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its members and/or beneficiaries. A sworn statement by its President detailing its 
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accomplishments, projects and programs undertaken and list of actual beneficiaries with 
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their contract details shall be necessary for this purpose. Photographs and other documents 
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that could support the claims made therein shall accompany the sworn statement. If it has 
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previously been entrusted with government releases, a sworn statement detailing the status 
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of the project or program that availed of Government Funds shall also be mandatory; 
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(g) 
Compliance with all Reportorial Requirements- It is in compliance with all reportorial 
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requirements of relevant regulating agencies. Necessary documents shall include SEC 
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annual submission of General Infonnation Sheet and Audited Financial Statements, among 
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others; 
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(h) Non-existence of a Conflict of Interest and Nepotism- No real or apparent conflict of 
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interest exists with it being entrusted with government releases. Necessary 
documents 
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for this purpose are Disclosure Statements signed by each of its incorporators, organizers, 
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officers and personnel enumerating their relatives by consanguinity and affinity up to the 
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fourth civil degree, who are officials or employees of Government Organizations, and a 
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sworn statement signed by President disclosing the organization's related businesses, if 
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any, and the extent of ownership therein; and 
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(i) Legitimacy and Commitment to Public Service- It is a legitimate NGOLPO committed to 
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public service and working for the public good. Evidence of this may include membership 
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in good standing of coalitions, accreditations given by its peers and/or private or 
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government organizations, field reviews to show public acceptance, accreditation and/or 
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recognition by international bodies, among others. 
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SECTION 8. Projects Eligible for Government Releases. -- The types of programs and 
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projects that may be subject of government releases shall be strictly limited to those that are 
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beyond the capability of the government organization to undertake, which include, but not 
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limited to, any undertaking that involves construction, maintenance, operations and management 
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of infrastructure projects and livelihood programs and projects. In that case, a memorandum of 
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agreement (MOA) shall be executed between the departmentl agency involved and the NGO/PO 
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to clearly define the undertaking! sharing of activities. 
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SECTION 9. Eligibility of NGOs/POs in Government Procurement.-
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accreditation, the NGO/PO shall be eligible to participate in the procurement of goods and 
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services 
as contractor, as stipulated under Republic Act No_ 9184 or the "Government 
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Procurement Reform Act." Provided, That the NGO/PO may submit unsolicited proposals, which 
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may be accepted by any government agency or local government unit on a negotiated basis. after 
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meeting the following conditions: a) the programs and projects involve a new concept of 
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technology and b) the programs and projects are beyond the capacity of the government to 
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implement: Provided further, That in the event another NGOIPO submits a proposal with a lower 
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price, the original proponent shall have the right to match that price within thirty (30) working 
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days. 
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To enhance the transparency of the process, the Bids and Awards Committee (BAC) 
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shall, in all stages of the procurement process, invite, in addition to the representatives of COA, 
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some observers to sit in its proceedings. 
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SECTION 10. Government Audit of NGOs and POs which are recipients of public 
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funds. - In addition to accreditation, NGOs/POs that are public fund recipients, shall be subject 
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to audit. The Commission on Audit shall audit NGOs/POs that implement programs and projects 
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using public funds received from any government organization, in accordance with the 
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Commission's pertinent rules and regulations. 
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SECTION 11. Anti-Nepotism. - Any NGO/PO, which has an incorporator, organizer, 
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officer or personnel related within the fourth degree of consanguinity or affinity to any 
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government official whose approval, whether discretionary or ministerial, is necessary in 
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effecting the fund release from any government organization, shall be ineligible to participate in 
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publicly-funded programs and projects. 
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SECTION 12. - Public Disclosure.- All programs and projects implemented by an 
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NGO/PO using public funds, including the status of implementation thereof, and a fund status 
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report summarizing all funds received by the NGO/PO per program or project with the 
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corresponding expenses incurred, and fund balances, shall be posted in the websites of the 
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government organization, the Philippine Government Electronic Procurement 
System 
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(PhilGEPS) and the NGOIPO, if available. 
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The information shall also be posted in three (3) conspicuous public places for one (1) 
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month, such as on public information boards of the government organization, public markets, 
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and other points of human convergence. 
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SECTION 13. Submission and Posting of Fund Utilization Report.- One (1) month 
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after the actual disbursement of government funds and every month thereafter until the 
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completion of the program or project, the NGOIPO shall submit to the releasing government 
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organization and the DWSD a Fund Utilization Report (FUR). The FUR shall be posted 
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physically in the public information boards and in the web sites of the concerned government 
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organization as well as of the NGO/PO, if available. 
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The concerned NGO/PO, shall also submit to the DSWD, a declaration that government 
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funds had been actually disbursed to it by the concerned government organization, within 15 
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days from disbursement, for purposes of monitoring the pending projects. 
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SECTION 14. Monitoring and Evaluation. - In addition to the DSWD, the respective 
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government agencies shall, in coordination with the NGOfPO representatives, monitor the proper 
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usage of government funds entrusted to the organizations, the proper implementation of the 
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subject programs and projects, the proper distribution to intended beneficiaries, and compliance 
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with time schedules for the completion of programs and projects, and the like. 
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The government organization shall validate the reports through on-site assessment and 
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field interviews. The result of monitoring shall be used to evaluate the problems and,issues and 
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to provide the framework of intervention by the government organization. 
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SECTION 15. Penalties. -Any NGOfPO that fails to complete the program and project, 
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or fails to liquidate the funds upon demand by the government organization, shall suffer a 
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penalty ranging from suspension of accreditation, revocation of accreditation, or disqualification 
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from obtaining programs and projects from any government organization, without prejudice to 
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further civil or criminal liabilities of its incorporators, organizers or officers. 
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Any government organization that releases public funds to unaccredited NGOfPO shall 
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incur administrative, civil or criminal liabilities, under relevant laws. 
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SECTION 16. Implementing Rules and Regulations . . - The DSWD, DBM, and relevant 
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stakeholders such as NGOs, POs, accreditation bodies and the like shall formulate the Rules 
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and Regulations implementing the provisions of 
this Act within thirty (30) days from the 
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effectivity hereof 
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SECTION 17. Separability Clause. - If any section or part of this Act is held 
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unconstitutional or invalid, the other sections or provisions shall remain in full force and effect. 
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SECTION 18. Repealing Clause. - All laws, decrees, executive orders, rules and 
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regulations, issuances or any part thereof, insofar as they are inconsistent with the provisions of 
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this Act, are deemed repealed. 
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SECTION 19. Effectivity. -
This Act shall take effect fifteen (J 5) days after its 
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publication in the Official Gazette or in a newspaper of general circulation. 
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Approved, 
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