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Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City, Metro Manila
SEVENTEENTH CONGRESS

First Regular Session

HOUSE BILL NO. 5216

Introduced by Representative Joaquin M. Chipeco, Jr.

AN ACT
FURTHER STRENGTHENING THE OFFICE OF THE SOLICITOR GENERAL,
PROVIDING FOR ITS POWERS AND FUNCTIONS, AND REDEFINING,
EXPANDING, AND  RATIONALIZING ITS ORGANIZATION, THEREBY
AMENDING REPUBLIC ACT NO. 9417 AND REPEALING REPUBLIC ACT NO. 2327,
EXECUTIVE ORDER NOS. 1 AND 2, S. 1986, AND APPROPRIATING FUNDS
THEREFOR

EXPLANATORY NOTE

‘The Office of the Solicitor General (OSG), as the law office of the Government of the
Republic of the Philippines, represents the Government, its departments, bureaus, agencies
and instrumentalities, and its officials and agents in their official capacity, in any litigation,
proceeding, investigation, or matter requiring the services of lawyers.

‘The principal law office of government-owned and controlled corporations (GOCCs)
is the Office of the Government Corporate Counsel (OGCC) pursuant to Republic Act
(R.A.) No. 2327.

‘The Presidential Commission on Good Government (PCGG), which was created
under Executive Order Nos. 1 and 2, s. 1986, is focused on the recovery and preservation of
ill-gotten wealth, as well as the proper investigation and prosecution of cases involving the
same.

In numerous instances, despite the delineation of functions between the OSG and the
OGCC, cases and matters requiring the services of a lawyer are still referred by GOCCs to
the OSG. On the other hand, in cases involving the recovery and preservation of ill-gotten
wealth, the OSG has been representing the Republic of the Philippines since the creation of
the PCGG. Hence, despite the fact that these functions are not specifically spelled out in the

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OSG's mandate, the OSG, as the primary law office of the Government, continues to render
legal services to GOCCs and the PCGG.

In order to achieve economy, eliminate overlapping of functions, efficiently and
effectively address the expanding needs of GOCCs for legal representation, and concentrate
and enhance government efforts for the full and effective recovery of ill-gotten wealth and
properties, including the efficient investigation and prosecution of cases relative thereto,
the legal services in the Government must be consolidated into one office. This requires the
abolition of the OGCC and the PCGG, and the transfer of their powers and functions to the
OSG.

The consolidation of legal services in the OSG will specifically promote the wiser
and more prudent use of public funds since this will do away with the practice of the
OGCC of billing client GOCCs for legal services rendered.

Further, given the formidable and sensitive legal duties of the OSG, there is a need to
strengthen the institution and provide its lawyers and employees benefits and privileges
already being enjoyed by their counterparts in other government offices. This will ensure
that the OSG is able to faithfully, effectively, and efficiently perform its mandate to uphold
State interest. Towards this end, Congress must amend the present OSG law, R.A. No. 9417.

For instance, this bill increases the number of legal divisions in the OSG from at least
thirty (30) to at least fifty (50), with at least ten (10) lawyers in each division. This will result
to additional plantilla positions for Solicitors in every division. ‘The present complement of
lawyers is not enough to meet the burgeoning need of the Government for legal services.
To illustrate, each Solicitor handles an average of 3000 cases, a large number of which
involve special proceedings, annulment of marriage, land titles, taxation, and criminal
cases. These numbers will further increase once the cases being handled by the OGCC are
transferred to the OSG. Hence, the present solicitors are overworked, overburdened, and
are decreasing in number as some transfer to the private sector or to other government
agencies. The additional Solicitors will ease the work of the present Solicitors, and
ultimately contribute to the more efficient discharge of OSG's functions.

Further, this bill upgrades the qualifications for appointment, rank, category,
prerogatives, salaries, allowances, emoluments, benefits, and privileges of the Solicitor
General to that of an Associate Justice of the Supreme Court. While this provision does not
change the Solicitor General's present salary grade of 31, it serves to enhance the prestige
and honor of the position.

While R.A. No. 9417 already provides that Senior State Solicitors and State Solicitors
of the OSG shall have the same rank, salaries, and privileges of trial court judges, the
benefits provided for under R.A. No. 9946, such as additional retirement, survivorship, and

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other benefits, are enjoyed by the members of the Judiciary only. The counterparts of senior
OSG lawyers in the National Prosecution Service (NPS) and the Public Attorney's Office
(PAO) also enjoy these benefits which are not available to Senior State Solicitors. There is a
need to equalize the benefits and privileges received by Solicitors with that of their
counterparts in the Judiciary, the NPS, and the PAO. At present, the OSG merely serves as
a training ground for lawyers, as they are being lured to higher paying positions in the
private sector or in other government offices. The government must provide incentives for
lawyers to apply to and build their careers in the OSG, and reward those who choose to
climb up the ranks and devote the best years of their working life to the OSG.

More important, given the complexity and significance of the cases they handle,
Solicitors face hazards to life and limb. The brutal killing of Assistant Solicitor General
Nestor J. Ballacillo, a Civil Service Dangal ng Bayan awardee, and his son Benedict, is proof
of this.

‘The increase of the OSG’s share in monetary awards or assets granted by courts or
tribunals to client departments and assets adjudged to the government in forfeiture
proceedings will further strengthen the OSG by increasing its source of funds to carry out
the expansion and pay the mandated benefits.

Further, the grant of the authority to borrow addresses the urgent need of the OSG
to acquire and construct its own office building, improve working, conditions and capacity
development.

Finally, the provision on retroactivity of the law will clarify the ambiguities in R.A.
No. 9417 on the entitlement of Solicitors who have judicial ranks to the retirement benefits
under related laws.

In view of the foregoing reasons, the expeditious approval of this bill is earnestly

sought.

Rep. JOAQUIN M. CHIPECO, JR.
2m! District, Laguna


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Republic of the Philippines
HOUSE OF REPRESENTATAIVES.
‘Quezon City, Metro Manila

SEVENTEENTH CONGRESS
First Regular Session

5216

HOUSE BILL NO.

Introduced by Representative Joaquin M. Chipeco, Jr.

AN ACT
FURTHER STRENGTHENING THE OFFICE OF THE SOLICITOR GENERAL,
PROVIDING FOR ITS POWERS AND FUNCTIONS, AND REDEFINING,
EXPANDING, AND RATIONALIZING ITS ORGANIZATION, THEREBY
AMENDING REPUBLIC ACT NO. 9417 AND REPEALING REPUBLIC ACT NO.
2327, EXECUTIVE ORDER NOS. 1 AND 2, S. 1986, AND APPROPRIATING
FUNDS THEREFOR

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

SECTION 1. Short Title. - This Act shall be known as the “OSG Charter.” (n)

SECTION 2. Declaration of Policy. — It is the declared policy of the State to
strengthen the Office of the Solicitor General (OSG) in order to fulfill its role of
upholding the best interest of the government as the Tribune of the People, as well
as to perform its mandate as the principal law office of the Government of the
Republic of the Philippines representing the Government, its departments, bureaus,
agencies, and instrumentalities, and its officials and agents in their official capacity,
in any litigation, proceeding, investigation, or matter requiring the services of
lawyers.

It is also the policy of the State to ensure efficiency and economy in the
operations of government, eliminate the overlapping of functions, consolidate the
legal services in the government into one office, effectively address the expanding
needs of government-owned and -controlled corporations (GOCCs) towards the
improvement of fiscal management and good corporate governance, and concentrate
and enhance government efforts for the full and effective recovery of ill-gotten
wealth and properties, including the efficient investigation and prosecution of cases
relative thereto. Towards this end, the Office of the Government Corporate Counsel

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(OGCC) and the Presidential Commission on Good Government (PCGG) are hereby
abolished and their respective powers and functions are transferred to the OSG.

With the transfer of the powers and functions of the OGCC and the PCGG to
the OSG, and to ensure the efficient and effective legal representation of the
Government, its departments, bureaus, agencies, and instrumentalities, GOCCs, and
its officials and agents in their official capacity, the members of the legal and
administrative staff of the OSG shall be increased and their positions upgraded to
adequately meet the Republic’s burgeoning need for legal services. The skills of OSG
lawyers shall be further improved, and the benefits of all OSG employees
augmented. The professional growth of these employees shall be encouraged. (n)

SECTION 3. Definition. - For purposes of this Act, the term—

(a) “Capacity development” shall refer to the process whereby the OSG, as
an organization, develops its capability over time to achieve development goals
while enhancing its ability to achieve measurable and sustainable results, through
improvement of knowledge, skills, and systems.

(b) “GOCCs” shall refer to 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 corporate entities, agencies and offices.

(0) “I-gotten wealth" shall refer to any asset, property, business
enterprise or material possession of the persons referred to in Executive Orders Nos.
1 and 2, s. 1986, acquired by them directly, or indirectly through dummies,
nominees, agents, subordinates, and/or business associates by any of the following,
means or similar schemes:

(1) Through misappropriation, conversion, misuse, or malversation
of public funds or raids on the public treasury;

(2) Through the receipt, directly or indirectly, of any commission,
gift, share, percentage, kickbacks, or any other form of
pecuniary benefit from any person and/or entity in connection
with any government contract or project or by reason of the
office or position of the official concerned;

(3) By the illegal or fraudulent conveyance or disposition of assets
belonging to the government or any of its subdivisions, agencies


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or instrumentalities, or government-owned or controlled
corporations;

(4) _ By obtaining, receiving, or accepting directly or indirectly any
shares of stock, equity, or any other form of interest or
participation in any business enterprise or undertaking;

(5) Through the establishment of agricultural, industrial, or
commercial monopolies or other combination and/or by the
issuance, promulgation, and/or implementation of decrees and
orders intended to benefit particular persons or special interests;
and

(6) By taking undue advantage of official position, authority,
relationship, or influence for personal gain or benefit. (n)

SECTION 4. Organizational Structure. - The Office of the Solicitor General
shall be an independent and autonomous office attached to the Office of the
President for budgetary purposes.

‘The OSG shall be headed by the Solicitor General, who is the principal law
officer and legal defender of the Government. He shall have the authority and
responsibility for the exercise of the OSG's mandate and for the discharge of its
duties and functions, and shall have supervision and control over the OSG and its
constituent units.

‘The Solicitor General shall be assisted by a Legal Staff composed of Assistant
Solicitors General and such number of Solicitors as may be necessary to operate the
Osc.

‘There shall be at least fifty (50) legal divisions in the OSG. Each division,
headed by an Assistant Solicitor General, shall consist of at least ten (10) lawyers and
such other personnel as may be necessary for the OSG to effectively carry out its
functions.

‘The administrative structure of the OSG shall be organized into the Financial
Management Service, Docket Management Service, Case Management Service,
Human Resources Management and Administrative Service, and Budget and
Planning Service, which shall be composed of the necessary divisions and sections.
Each Service shall be headed by a Director, who shalll be appointed by the President.

‘There shall be an Office of Legal Services (OLS) within the OSG to be headed
by a Director, who shall be appointed by the Solicitor General and serve at the
latter’s pleasure. The qualifications, salary grade, and benefits of the Director and
his/her legal staff shall be determined by the Solicitor General. The Director shall be


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assisted by such other personnel as may be necessary to effectively carry out the
functions of the OLS.

SECTION 5. Powers and Functions. - The OSG shall represent the
Government of the Philippines, its agencies and instrumentalities, including GOCCs,
and its officials and agents acting in their official capacity, in any litigation,
proceeding, investigation, or matter requiring the services of a lawyer. The OSG
shall constitute the principal law office of the Government and, as such, shall
discharge duties requiring the services of a lawyer. It shall have the following
specific powers and functions:

(a) Represent the Government and the People of the Philippines in the
Supreme Court and the Court of Appeals in all criminal proceedings; represent the
Government and its officers in the Supreme Court, the Court of Appeals, and all
other courts or tribunals in all civil actions and special proceedings in which the
Government has been impleaded as a party, or any official of the Government sued
in the lawful performance of duty.

(b) Investigate, initiate court action, or in any manner proceed against any
person, corporation, or firm for the enforcement of any contract, bond, guarantee,
mortgage, pledge, or other collateral executed in favor of the Government.

(©) Appear in any court in any action involving the validity of any treaty,
law, executive order or proclamation, or rule or regulation when in his judgment his
intervention is necessary or when requested by the Court.

(a) Appear in all proceedings involving the acquisition or loss of
Philippine citizenship.

(c) Represent the Government in all land registration and related
proceedings. Institute actions for the reversion to the Government of lands of the
public domain and improvements thereon as well as lands held in violation of the
Constitution.

(f) — Conciliate, mediate, settle, or adjudicate all disputes, claims, and
controversies solely between or among the departments, bureaus, offices, agencies,
and instrumentalities of the National Government, including GOCCs.

(g) Render opinion and advice on matters referred by the departments,
bureaus, offices, agencies, and instrumentalities of the National Government,
including GOCCs.


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(h) Prepare, upon request of the President or other proper officer of the
National Government, rules and guidelines for government entities governing the
preparation of contracts, making of investments, undertaking, of transactions, and
drafting of forms or other documents needed for official use, for the purpose of
facilitating their enforcement and ensuring that they are entered into or prepared
conformably to law and for the best interests of the public.

(i) Deputize, whenever in the opinion of the Solicitor General the public
interest requires, any provincial or city prosecutor to assist him in the performance
of any function or discharge of any duty incumbent upon him, within the
jurisdiction of the aforesaid provincial or city prosecutor. When so deputized, the
prosecutor shall be under the control and supervision of the Solicitor General with
regard to the conduct of the proceedings assigned to the prosecutor, and he may be
required to render reports or furnish information regarding the assignment.

() Any law to the contrary notwithstanding, the OSG shalll be the legal
counsel and principal law office of all GOCCs. All GOCCs shalll refer to the OSG the
following:

(i) Before their execution, all contracts for review; and

(ii) All cases for representation before regular courts, quasi-judicial
bodies, administrative agencies, and arbitral tribunals, Provided
That the Solicitor General may thereafter authorize the GOCC’s
legal department because of urgency or expediency to appear as
collaborating counsel to handle GOCC’s cases.

As legal counsel of all GOCCs, the OSG shall also perform the following
functions:

(1) Exercise control and supervision over the legal departments of
all GOCCs through designated Assistant Solicitors General and Solicitors;

(2) Exercise visitorial powers over GOCCS;
(3) Enforce the Property Insurance Law pursuant to Republic Act

No. 656, as amended by Presidential Decree 245, in domestic or international
transactions;


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(4) Conduct periodic performance audits of the in-house lawyers or
legal departments of the GOCCs and to recommend appropriate actions to
GOCCs;

(6) Require the in-house lawyers or legal departments of GOCCs to
submit periodic reports of work performed and/or accomplished and to
supervise and control the necessary legal action; and

(6) Perform other functions as maybe provided by law and such
additional tasks as may be required by the GOCCs, with the conformity of the
Solicitor General. (n)

(kK) Deputize legal officers of government departments, bureaus, agencies,
offices, and GOCCs to assist the Solicitor General and appear or represent the
Government in cases involving their respective offices, brought before the courts,
and exercise supervision and control over such legal officers with respect to such
cases.

(). Call on any department, bureau, office, agency, or instrumentality of
the Government, including any GOCC, for such service, assistance, and cooperation
as may be necessary in fulfilling its functions and responsibilities and for this
purpose enlist the services of any government official or employee in the pursuit of
his tasks.

Departments, bureaus, agencies, offices, instrumentalities, and GOCCs to
whom the OSG renders legal services are authorized to disburse funds from their
sundry operating and other funds for the OSG. For this purpose, the Solicitor
General, Assistant Solicitors General, Senior State Solicitors, State Solicitors, and
Associate Solicitors are specifically authorized to receive allowances as may be
provided by the Government offices, instrumentalities, and GOCCs concerned, in
addition to their regular compensation. (rf. 1987 Administrative Code, Book IV, Title
IIl, Chapter 12, Sec. 35 (9))

(m) The powers and functions of the PCGG are hereby transferred to the
OSG which include the following:

(1) To file and prosecute all cases investigated by the PCGG under
Executive Order No. 1, dated 28 February 1986, Executive Order
No. 2, dated 12 March 1986, and Executive Order No. 432, dated
26 May 2005, as may be warranted by its findings;


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(2) To continue handling cases relative to the recovery of ill-gotten
wealth and behest loans;

(3) To grant immunity from criminal prosecution to any person
who provides information or testifies in any investigation
previously conducted by the PCGG or future cases investigated
by the OSG, to establish the unlawful manner in which any
respondent, defendant or accused has acquired or accumulated
the property or properties in question in any case where such
information or testimony is necessary to ascertain or prove the
latter's guilt or his civil liability. The immunity thereby granted
shall be continued to protect the witness who repeats such
testimony before the Sandiganbayan when required to do so;
and

(4) To call upon any department, bureau, office, agency,
instrumentality or corporation of the government, or any officer
or employee thereof, for such assistance as it may need in the
discharge of its functions relative to recovery of ill-gotten wealth
and behest loans.

Represent, upon the instructions of the President, the Republic of the
Philippines in international litigations, negotiations, or conferences
where the legal position of the Republic must be defended or
presented.

Engage the services of counsel to assist in the discharge of his duties
and responsibilities. However, due to the fiduciary nature of the
relationship between the OSG and the counsel, the engagement of the
latter shall be exempt from Republic Act No, 9184 (Government
Procurement Reform Act) and Presidential Decree 1445 (Government
Auditing Code of the Philippines).

Act and represent the Republic and/or the people before any court,
tribunal, body, or commission in any matter, action, or proceeding
which, in his opinion, affects the welfare of the people as the ends of
justice may require;

Acquire, own, hold, or lease real and personal property; sell or
otherwise dispose of the same; enter into contracts including loan
agreements and joint venture agreements; and do and perform any and


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all acts that may be necessary or proper to carry out the purposes of
this Act. (n)

(0) Provide a Legal Internship Program to help law students prepare and
train for and experience legal practice in public service. (n)

(s) Perform such other functions as may be provided by law.

SECTION 6. Abolition of the Office of the Government Corporate Counsel
and the Presidential Commission on Good Government. - The legal representation
of the Government, its agencies, and instrumentalities, including GOCCs, and
officials and agents acting in their official capacity, and the powers and functions of
the PCGG shall be consolidated in the OSG, the principal law office and legal
defender of the Government. For this purpose, the OGCC and the PCGG are hereby
abolished, and all the powers and functions of said Offices which are not
inconsistent with the provisions of this Act are hereby transferred to the OSG.

After settlement of its liabilities, if any, all budgetary appropriations, funds,
properties, records, equipment, rights, choses in action, and other assets of the
OGCC and the PCGG are hereby transferred to the OSG. (n)

SECTION 7. Appointments. - The Solicitor General shall be appointed by the
President.

The Assistant Solicitors General, Senior State Solicitors, and State Solicitors
shall be appointed by the President upon recommendation of the Solicitor General
Associate Solicitors shall be appointed by the Solicitor General.

The Financial Management Service, Docket Management Service, Case
Management Service, Human Resources Management and Administrative Service,
and Budget and Planning Service shall each be headed by a Director to be appointed
by the President upon the recommendation of the Solicitor General. The Service
Heads shall possess the necessary CES eligibility and qualifications for the position
prescribed under pertinent civil service laws, rules, and regulations: Provided, that if
a Service Head who does not possess the necessary eligibility and qualifications is
occupying the position at the time of the effectivity of this Act, he or she shall
continue to perform such functions as officer-in-charge and shall have a maximum
of two (2) years to comply with the said eligibility and qualifications: Provided,
further, that if the Service Head fails or is unable to meet the eligibility and



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qualifications for the position after the lapse of two (2) years from effectivity of this
Act, he or she shalll be ipso jure removed from said position. (n)

Administrative personnel in the OSG shall be appointed by the Solicitor
General.

SECTION 8. Standards. - ‘The Solicitor General shall have the rank of a
Cabinet Secretary and the same qualifications for appointment, rank, category,
prerogatives, salaries, allowances, emoluments, privileges, retirement-and all other
benefits of an Associate Justice of the Supreme Court; an Assistant Solicitor General,
those of an Associate Justice of the Court of Appeals.

‘The qualifications for appointment, rank, category, prerogatives, salaries,
allowances, emoluments, privileges, retirement and all other benefits of Solicitors
shall be the same as judges, specified as follows:

Senior State Solicitor - Regional Trial Court Judge
State Solicitor II - Metropolitan Trial Court Judge
State Solicitor I - Municipal Trial Court in Cities Judge

‘The Solicitor General shall be entitled to the same retirement benefits and
privileges as an Associate Justice of the Supreme Court, provided he has served in
such capacity for at least two (2) years. Such retirement benefits and privileges shall
accrue to him or her upon reaching the age of sixty (60) years.

Assistant Solicitor Generals, Senior State Solicitors, State Solicitors II, and
State Solicitors I shall be entitled to the same retirement benefits and privileges as
their counterparts in the Judiciary upon reaching the age of sixty (60) years,
provided that they have served in such capacities for at least five years. An
Assistant Solicitor General, Senior State Solicitor, State Solicitor II, and State Solicitor
I may opt to serve up to the age of seventy (70) years.

The Solicitor General shall determine the qualifications, prerogatives, and

responsibilities of the Associate Solicitors.

SECTION 9. Office of Legal Services. ~ The OLS shall have the following
functions:


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(a) Represent the Solicitor General, Assistant Solicitors General, State
Solicitors, Associate Solicitors, and all other employees of the OSG who are
impleaded in their official capacity in any litigation, proceeding, investigation, or
matter requiring the services of a lawyer;

(b) Draft proposed legislative measures to strengthen the OSG and enable
it to efficiently and effectively discharge its mandate for submission by the Solicitor
General to Congress and /or to the President of the Philippines;

(©) Conduct research on legal issues that may be assigned by the Solicitor
General; and

(a) Perform such functions and duties as may be assigned by the Solicitor
General. (n)

SECTION 10. Capacity Development. ~ In order to build and develop the
capability of the OSG as an organization to achieve development goals, as well as
enhance its abilities to achieve measurable and sustainable results, the Solicitor
General, in consultation with the Assistant Solicitors General, shall formulate,
develop, and implement plans, activities, and programs towards the improvement of
knowledge, skills, and systems. To achieve this objective, the Solicitor General may
by himself authorize OSG lawyers to travel anywhere in the Philippines and abroad
to attend seminars, fora, conferences, or lectures on different areas of law, pleadings
and practice in international courts and tribunals, public-private partnerships, and
public corporate governance, among others. The Solicitor General may also
authorize the administrative staff of the OSG to undergo relevant training to
improve their skills.

SECTION 11. Compensation. — ‘The salary grades of the Solicitor General,
Assistant Solicitors General, Senior State Solicitors, State Solicitors, and Associate
Solicitors shall be as follows:

POSITION SALARY GRADE
Solicitor General 31
~__ Assistant Solicitor General 30
Senior State Solicitor 29 |
State Solicitor II 28
| ~_ State Solicitor I 27 i:
Associate Solicitor IIT 26
Associate Solicitor II 25
_ “Associate Solicitor I 24 |



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The Solicitor General, Assistant Solicitor General, and Solicitors shall be
entitled to step increments and longevity pay which shall be equivalent to those
being received by their counterparts in the judiciary.

‘The positions and salaries of non-legal personnel in the OSG shall be in the
level of their counterparts in the Court of Appeals.

SECTION 12. Benefits and Privileges. — ‘The OSG shall provide its
employees with the following benefits:

(1) Health care services through a health maintenance organization (HMO).
Expenses for the mandatory annual executive check-up of the Solicitor General, the
Assistant Solicitors General and OSG officials whose positions correspond to Salary
Grade 28 and above shalll be for the account of the OSG;

(2) Hazard pay, as well as accident insurance policies procured by the OSG at
its own expense to protect its officials while they are in the performance of their
official duties and functions;

(3) Without prejudice to efficiency in the service, scholarships to deserving
employees on official time and at the expense of the OSG to enhance their academic
growth and upgrade their knowledge and skills. Scholarships under this provision
shall be granted on the basis of competitive examination. Scholars shall be required
to render service in the OSG upon immediate completion of the program, course or
degree, in accordance with applicable Civil Service laws, rules and regulations.

(4) A provident fund which shall consist of contributions made both by the
OSG and by its lawyers and employees to a common fund for the payment of
benefits to such lawyers or employees or their heirs;

(5) Other perquisites and benefits as enjoyed by other government offices or
as may be determined by the Solicitor General in the exigencies of the service and in
accordance with law. (n)

SECTION 13.Seminar and Other Professional Fees. — Subject to the
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) course shall be borne
by the OSG: Provided, that the lawyer whose membership fees/dues to the Integrated

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Bar of the Philippines (IBP) have been paid up or reimbursed by the OSG, shall
maintain his or her service in the OSG for at least five (5) years: Provided, further, that
should the lawyer resign or in any manner sever his or her service from the Office,
he or she shall be required to reimburse the paid up IBP membership dues/fees in
pro rata. (1)

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 OSG.

SECTION 14. Survivorship Benefits; Coverage. -Upon the death of a Solicitor
General, Assistant Solicitor General, Senior State Solicitor, State Solicitor, or an
Associate Solicitor of the OSG, if said official had retired or was in the service at the
time of death, the surviving legitimate spouse and dependent children, or in their
absence, the surviving parents of said official shall be entitled to receive on a
monthly basis all the retirement benefits that the deceased official was receiving or
entitled to receive at the time of death under the provisions of the applicable
retirement laws. A “dependent” means a legitimate, illegitimate, or legally adopted
child who is chiefly dependent with the above-enumerated deceased officials if such
dependent is not more than twenty-one (21) years of age, unmarried and not
gainfully employed or if such dependent, regardless of age, is incapable of self-
support because of mental or physical defect. The surviving legitimate spouse shall
continue to receive such retirement benefits during his or her lifetime or until he or
she remarries: Provided, that if the surviving legitimate spouse is receiving benefits
under existing retirement laws, the surviving legitimate spouse shall only be entitled
to the difference between the amount provided for in this Act and the benefits the
surviving spouse has been receiving: Provided, further, that said benefits shall be
granted to all aforementioned members of the OSG who died or retired prior to the
effectivity of this Act: Provided, furthermore, that the surviving legitimate spouse
receiving the benefit shall not, if he or she is a member of the Bar, appear as counsel
before any court in any civil case wherein the Government or any subdivision or
instrumentality thereof, including GOCCs, is the adverse party, or in any criminal
case wherein an incumbent or former officer or employee of the Government is
accused of an offense committed in relation to his or her office, or collect any fee for
his or her appearance in any administrative proceeding; and when the surviving
legitimate spouse shall assume an elective public office, he or she shall not, upon
assumption of office and during his or her term, receive the said survivorship
benefits. (n)


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SECTION 15. Grant of Special Allowances. — Any law to the contrary,
notwithstanding, the Solicitor General, Assistant Solicitors General, Senior State
Solicitors, State Solicitors and Associate Solicitors shall be granted special allowances
in amounts to be determined by the Solicitor General.

The grant of special allowances shall be implemented uniformly in such sums
and amounts and up to the extent only that can be supported by the funding source
specified in Section 18 (a) to (d) hereof: Provided, that each grant of the said special
allowance shall not exceed One hundred percent (100%) of the basic salary of
solicitors as provided in Republic Act No. 6758, otherwise known as the Salary
Standardization Law: Provided, further, that said special allowances shall be exempt
from income tax.

SECTION 16. Other Benefits. — Notwithstanding any law, or administrative
rule or regulation, the lawyers of the OSG are allowed to receive honoraria and
allowances directly from each client department, agency, and instrumentality of the
Government, as well as from each client GOCC for the legal services that said
lawyers render, which may include attendance in hearings, providing legal advice,
drafting of contracts and legal documents, and performing designated functions;
Provided, that said honoraria and allowances shall be exempt from income tax.

SECTION 17. Franking Privilege. — Alll official mail matters and telegrams of
the OSG 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 twenty
(120) grams.

SECTION 18. Funding. — The funds required for the implementation of this
Act, including those for health care services, survivorship benefits; insurance
premiums, professional, educational, and registration fees; transportation benefits;
and other benefits and privileges mentioned in the other provisions of this Act, shall
be provided for in the General Appropriations Act and augmented by funds sourced
from the following:

(a) Twenty percent (20%) of monetary awards or value of assets adjudged
by the Courts or tribunals to client departments, agencies and instrumentalities of
the Government, and GOCCs, including those under court-approved compromise
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(b) Twenty per
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nt (20%) of assets adjudged to the Government in

(©) _ Fifty percent (50%) of fees collected by the Special Committee on
Naturalization; and

(d) All other income, fees and revenues earned and collected by the Office
of the Solicitor General.

For this purpose, the OSG is hereby authorized to charge deputation,
certification, and other similar fees in the cases that it handles.

‘The amounts collected pursuant to this section shall constitute a trust fund in
the name of the OSG to be managed and used by the Solicitor General to carry out
the provisions of this Act.

SECTION 19. Transfer of Cases. - All cases being handled by the OGCC shall
be transferred to the OSG: Provided, however, that the handling OGCC lawyer shall
submit a status report of all cases he or she is handling to the Solicitor General:
Provided, further, that a certification under oath that the records of the case
transmitted to the OSG are complete shall be made by the handling OGCC lawyer as
a pre-condition for receiving the separation or retirement benefits under this Act. (n)

SECTION 20. Case Migration. - Upon the effectivity of this Act, a transition
“Case Migration Committee” (CMC) shall be created composed of: three (3)
members from each of the respective records and docket divisions of the OSG, the
OGCC, and the PCGG, at least two (2) members from the legal divisions of all
GOCCs, and at least two lawyers each from the OSG, the OGCC, and the PCGG.

‘The CMC shall ensure the smooth turnover of all cases and legal concerns of
the OGCC and the PCGG to the OSG, with corresponding status reports, complete
records, and other relevant documents, taking care that no case or legal concern shall
be prejudiced in the process of turnover.

‘The CMC shall have the responsibility of determining which cases and legal
concerns need immediate attention or are extremely urgent. These cases and legal
concerns shall immediately be transferred and/or referred to the OSG.

‘The CMC shall complete its work within thirty (30) days from its constitution.
‘The CMC shalll submit a comprehensive report to the Solicitor General. (n)

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SECTION 21. Retirement or Separation from Service. - Consequent to the
abolition of the OGCC and the PCGG, OGCC and PCGG officials and employees
who have attained fifty (50) years of age and have rendered at least fifteen (15) years
in government service, the last five (5) years of which shall have been continuously
rendered in the OGCC or the PCGG, shall be qualified for retirement with full
retirement gratuity and pension pursuant to applicable laws. ‘Those who lack any
one of the above qualifications shall receive a separation pay equivalent to one and a
half (11/2) months for every year of service in government, which will be provided
for in the General Appropriations Act. (n)

SECTION 22. Implementing Rules and Regulations. — Within thirty (30)
days from the approval of this Act, the Solicitor General, in coordination with the
Secretary of Budget and Management, shall promulgate such rules and regulations
as may be necessary to carry out the provisions of this Act. Until such time that the
rules and regulations are promulgated and Section 21 of this law is implemented, the
officials and administrative personnel of the OGCC and PCGG shall remain in their
positions in a holdover capacity.

SECTION 23. Retroactivity. - ‘The retirement benefits provided for in Section
8 and the survivorship benefits provided for under Section 14 of this Act shall have
retroactive effect as of the date of effectivity of Republic Act No. 9417. (n)

SECTION 24. Appropriations. — The amount necessary for the initial
implementation of this Act shall be taken from the current appropriations of the
OSG and/or its savings. Thereafter, such sums as may be necessary for the
continued implementation of this Act shall be included in the annual General
Appropriations Act.

SECTION 25. Repealing Clause. — Pertinent provisions of Executive Order
No. 292, otherwise known as the Revised Administrative Code of 1987, as amended,
Republic Act No. 9417, and all laws, decrees, orders, rules and regulations or parts
thereof which are contrary to or inconsistent with the provisions of this Act are
hereby repealed or amended accordingly.

Republic Act No. 2327 entitled “An Act To Declare The Position Of
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General, Provide For His Appointment And Salary And Appropriate The Necessary
Funds Therefor, And For Other Purposes”, and Executive Orders No. 1 entitled
“Creating The Presidential Commission On Good Government” and No. 2 entitled
“Regarding The Funds, Moneys, Assets And Properties Ilegally Acquired Or
Misappropriated By Former President Ferdinand Marcos ...” , s. 1986, are hereby
expressly repealed.

SECTION 26. Separability Clause. — If any provision of this Act is declared

invalid or unconstitutional, the provisions not affected thereby shall continue to be
in full force and effect.

SECTION 27. Effectivity. — This Act shall take effect after fifteen (15) days
from its publication in the Official Gazette or in at least two (2) national newspapers
of general circulation.

Approved,

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