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SIXTEENTH CONGRESS OF THE 
REPUBLIC OF THE PHlILIPPINES 
Second Regular Session 
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SENATE 
S. No __ 2~42 
Introduced by Senator Francis "Chiz" ESCUDERO 
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Explanatory Note 
In the aftermath of the extremely destructive super typhoon Yolanda (international 
codename: Haiyan) that struck our country last November 8, 2013, an outpouring of support in 
the form of cash and in-kind donations were directed to the Philippines by both local and foreign 
donors. 
In response to media reports alleging instances of corruption with respect to the 
utilization and accounting of the donated funds, Senator Miriam Defensor-Santiago introduced 
Proposed Senate Resolution No. 363 entitled: 
RESOLUTION 
DIRECTING THE 
PROPER SENATE COMMITTEE ON 
FINANCE TO 
CONDUCT AN 
INQUIRY 
IN 
AID 
OF 
LEGISLATION, ON THE NEED FOR TRANSPARENCY AND 
ACCOUNTABILTY WITH REGARD TO INCOMING FOREIGN 
AND LOCAL AID FOR THE VICTIMS OF SUPER TYPHOON 
YOLANDA. 
which was referred to the Committee on Finance. 
On February 26 and March 17, 2014, the committee conducted a hearing on the bills 
referred to the committee, including P. S. R. No. 363. In accordance with the Chairnlan's 
instructions, a Technical Working Group meeting was conducted by the committee last May 13, 
2014, to which resource per:lOns from the Department of Foreign Affairs, Department of Budget 
and Management, Department of Finance, and Commission on Audit were invited. 
From the above-mentioned hearings and TW G meeting, one of the findings was the fact 
that there was no single agency in the government that has possession and knowledge of the total 
amount of local and foreign donations for the victims of Super Typhoon Yolanda. The Foreign 
Aid Transparency Hub or FAITH, an online infOlmation portal created by the national 
government, captures only the foreign aid pledged and received by the country for the victims of 
Yolanda. It does not include the foreign or local donations that were deposited directly to the 
accounts of various departments or agencies, or the foreign or local donations received directly 
by the affected local government units. 
The above findings indicate the need to institutionalize, preferably through legislation, a 
mechanism for the monitoring and accounting of all foreign and local donations for natural and 
man-made calamities. In addition, the public clamour for transparency and accountability in the 
utilization of the monetary and non-monetary aid received from foreign and local benefactors 
calls for proactive action from the Commission on Audit. 
In view of the foregoing, the approval of the bill is earnestly sought. 
FRANCIS "Chiz" G. ESCUDERO 
Senator 


, 
, 
SIXTEENTH CONGRESS OF THE) 
REPUBLIC OF THE PHILIPPINES) 
Second Regular Session 
SENATE 
Senate Bill No, 2342 
Introduced by Senator francis "Chiz" G. Escudero 
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AN ACT 
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MANDATING THE iFULL ACCOUNTING OF ALL DISASTER-RELIEF AID 
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OR DONATIONS RECEIVED BY THE PHILIPPINE GOVERNMENT FOR 
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NATURAL AND HUMAN-INDUCED CALAMITIES 
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SECTION 1. Title. - This Act shall be known as the "Donation Transparency Act of 
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2014." 
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SECTION 2. 
Decl~lration of Policy. - It is hereby declared the policy of the State to 
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promote transparency and .accountability in the receipt and utilization of foreign and local 
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donations for natural and human-induced calamities that cause havoc and destruction in the 
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country. 
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SECTION 3. Coverage. This act shall cover all foreign and local donations directed to 
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the national government, government owned and controlled corporations (GOCCs) and local 
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govermnent units (LGUs) from all sources, such as foreign governments, bilateral or multilateral 
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organizations and institutions, and private individuals or groups. 
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SECTION 4. Definition of Terms. For purposes of this Act, the following shall refer 
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to: 
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(a) "Calamity" -
a natural or human-induced disaster causing widespread human, 
material, economic or environmental losses to a community or society. 
(b) "Donations" 
cash or non-cash aid or grants received by the govermnent for 
disaster relief, recovery, or rehabilitation. 
(c) "Donor" -
refers to foreign governments, bilateral or multilateral organizations and 
institutions, private individuals or groups who donate cash or non-cash aid or grants 
to the Philippine government for disaster relief, aid, or rehabilitation. 
(d) "Donee" -
refers to depmtments, bureaus, and offices of the national govcrmnent 
including Constitutional Offices, State Universities and Colleges, Govermnent 
Owned and Controlled Corporations (GOCCs) and Local Goverrunent Units (LGUs) 
that receive donations from various sources. 
(e) "Donations in Cash" - refer to cash assistance from donor entity/individual to the 
Philippine government through any of its agencies or instrumentalities. 
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(f) "Donations in K'll1d" - refer to assistance in kind such as but not limited to food, 
clothing, medicine, and equipment coming from the donor entity/individual to a 
specific national government agency or local government unit for the purpose of 
disaster relief, recovery and rehabilitation efforts. 
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SECTION 5. 
Donations. 
Departments, bureaus and Offices of the National 
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Government, including Constitutional Omces enjoying fiscal autonomy, and State Universities 
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and Colleges may accept donations in cash or in kind from various sources, domestic or foreign, 
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for purposes relevant to their respective functions, and which shall be used to cover aid, relief 
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and rehabilitation, repair ancl reconstruction of permanent structures affected by natural and man-
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made calamities. Such donations, whether in cash or in kind shall be deemed automatically 
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appropriated. 
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SECTION 6. Utilization and Treatment of Donations. 
Donations shall be utilized in 
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accordance with the purpose identified by the Donor. Donations for a specific purpose, as 
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identified by the donor, shall be treated as trust receipts, PROVIDED that in case the donor does 
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not identify a specific project or activity to be funded, such donation shall be considered as 
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calamity aid for the use of the Department of Social Welfare and Development: PROVIDED 
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further, that donations intended for program support for calamities in general shall be booked as 
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income of the National Gov(~rnment or Local Government Unit, as the case may be. 
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SECTION 7. 
C:ash Donations. All cash donations shall be deposited under the 
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account of the Bureau of Treasury (BTr), except when the donation is made directly to the 
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agencies, in which case the donee-agency shall inform the BTr of the cash donation upon receipt 
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thereof: PROVIDED, that if the donation is made directly to an LGU, the Bureau of Local 
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Government Finance (BLCiF) shall be informed upon its receipt of the cash donation for 
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purposes of consolidating the quarterly reports to be submitted to the Office of Civil Defense 
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(OCD), the secretariat of the 
National Disaster Risk Reduction and Management Council 
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(NDRRMC). An official receipt shall be issued by the concerned donee-agency or LGUfor cash 
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donations received. 
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Donations in Foreign Currency shall be converted to the Philippine Peso at the prevailing 
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rate at the time of the receipt of the donation. Donations shall be taken up in the books of the 
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BTr as income or trust receipts. 
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The amounts received by the donee-agency shall thereafter be deposited to the account of 
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the Treasurer of the Philippines, and shall be made available to the implementing agency 
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concerned through a Special Budget pursuant to Section 35, Chapter 5, Book VI of B.O. No. 
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292: PROVIDED that, if the donee-agency is an LGU, the same shall be deposited to the account 
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of the Local Treasury as a separate special account maintained in every provincial, city, or 
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municipal treasury and recorded as a Trust Fund under the Special Funds pursuant to Section 309 
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(b) Article I, Chapter II, Title V, Book II of the Local Government Code. 
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In no case shall the cash donation be used for payment of Personal Services of any 
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government unit or any other expenses not related to disaster relief, recovery and rehabilitation 
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efforts. 
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SECTION 8. Donations in Kind. For donations in kind, an acknowledgement receipt 
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shall be issued to the donor by the donee-agency. The value of donated Property, Plant and 
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Equipment (PPE) shall be based on the declared value in the Deed of Donation or the bill of 
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lading/airway bill/parcel nollice and other related documents. The fair market value/appraised 
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value shall be used in the absence of declared value. The donee-agency shall submit either in 
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printed form or by way of electronic document to the OCD, quarterly reports on the receipt of 
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donations in kind: PROVIDED that, the LGU shall submit to OeD thTU BLGP all donations in 
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kind that they have received: PROVlDED further that, the Bureau of Customs (BOC), which 
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process all foreign donation pursuant to Section 18 of R.A. 10121, otherwise known as the 
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"Philippine Disaster Risk Reduction and Management Act," shall submit a report on the 
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conditionally-free importation under this section to the OCD. 
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The head of the donee-agency or LGU shall be primarily responsible for the accounting 
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and safeguarding of all donated supplies, materials, equipment and relief goods against loss and 
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wastage. 
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SECTION 9. Foreign Donations. Foreign donations, whether in cash or in kind, from 
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foreign governments shall be subject to the prior clearance and approval of the President upon 
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the recommendation of the Department of Foreign Affairs (DFA). The DFA shall also submit to 
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OCD a report on foreign donations that it has processed. 
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SECTION 10. Consolidated Reports. The head of the donee-agency and the agency's 
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web administrator or his/her equivalent shall be responsible for ensuring that the quarterly report 
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of all donations received, whether in cash or in kind are posted on the agency's official website. 
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The BTl' shall submit to OCD a quarterly report on all amount deposited under the special 
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account it maintains for all donations received, including the amount retained by the donee-
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agency under Section 7 of this Act. 
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The Department of Foreign Affairs (DO F) shall likewise submit a report on all pledges 
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made by foreign governments, bilateral or multilateral organizations and institutions, private 
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foreign individuals or groups to the Philippine government for disaster relief, aid, or 
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rehabilitation to OCD. 
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The OCD shall submit, either in printed form or by way of electronic document, to the 
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Department of Budget and Management (DBM), the House Committee on Appropriations and 
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the Senate Committee on Finance, a consolidated quarterly report of all submissions made to 
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OCD under this Act. 
The Executive Director of the OCD and the 
NDRRMC's web 
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administrator or his/her equivalent shall be responsible for ensuring that said quarterly reports 
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are likewise posted on the official website ofNDRRMC. 
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SECTION 11. Implementation, Rules, and Regulations. 
The DBM, OCD, 
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Department of Finance, Department of the Interior and Local Government, and the Commission 
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on Audit shall promulgate the Implementing Rules and Regulations to implement this Act within 
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thirty (30) days from its approval. 
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The Implementing Rules and Regulations shall take effect five (5) days after publication 
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in a newspaper of general circulation. 
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SECTION 12. Efflectivity. This Act shall take effect fifteen (15) days following its 
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complete publication in the Official Gazette or in two (3) national newspapers of general 
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circulation. 
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Approved. 
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