Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City

16" CONGRE:
First Regular Session

House BLL No. 1108

Introduced by REP. EVELINA G. ESCUDERO

EXPLANATORY NOTE

Itis the policy of the State to endeavor and pursue a debt management system that shall
be made available to public scrutiny and subject to strict adherence to existing pertinent laws and
rules and regulations.

By the end of 2001, our national debt was estimated at Php 2.8 trillion. It increased to
Php 3.3 trillion by the end of 2002. This translates to an appalling increase of almost a trillion
pesos a year.

‘There is an urgent need to address the way our government handles our country's debt
management which undeniably resulted in an unprecedented and unreasonable growth, Debt
servicing has been getting the highest budgetary allocation of 25% at the average, more or less,
of our national budget since the 1980s, leaving other sectors that require funding continue to
suffer and these include education, health, science and technology, and other government
programs on social progress and human development.

This bill therefore seeks to provide an effective check and balance on the executive
power to contract and guarantee loans. Such power if left unchecked and unbridled shall
continue, as it has been, to be detrimental to the economic and social interest of our country
given its limited resources. That Congress, as an independent and a co-equal branch of
government, must effectively pursue and insist on its power and prerogative to approve,
determine and allocate the national budget of the government.

In view of the foregoing, passage of this bill is sincerely sought.

EVELINA G. ESCUDERO


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Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City

16" CONGRES:
First Regular Session

HOUSE BILL NO. _ i 108

Introduced by REP. EVELINA G. ESCUDERO

AN ACT.

CONSTITUTING A CONGRESSIONAL OVERSIGHT COMMITTEE ON
DEBT MANAGEMENT TO LOOK INTO ALL FOREIGN AND DOMESTIC
BORROWINGS NEGOTIATED, CONTRACTED OR GUARANTEED BY
THE PRESIDENT ON BEHALF O} HE PHILIPPINES AS WELL AS THOSE
BY THE GOVERNMENT OR GOVERNMENT OWNED AND
CONTROLLED CORPORATIONS AND FOR OTHER PURPOSES

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

SE

on transparency and

TION 1. Declaration of Policy. - In accordance with the constitutional prescription

ountability, the State shall endeavor and pursue a debt management
system that shall be made available to public scrutiny and subject to strict adherence to existing

pertinent laws and rules and regulations.

The State shall likewise ensure the most appropriate use of its limited resources bearing
in mind the constitutional mandate of giving priority to education, health, science and
technology, acceleration of social progress and promotion of total human liberation and

development.

SEC. 2. The Congressional Oversight Committee. - A Congressional Oversight
Committee on Debt Management, hereinafter referred to as the Committee, is hereby constituted
in accordance with the provisions of this Act. The Committee shall be composed of the
Chairpersons of the Committee on Ways and Means of the Senate and the House of
Eepresentatives and three (3) additional members from each chamber to be designated by the
Senate President and the House Speaker. respectively. One (1) of the said three (3) additional
members shall come from the minority members of each chamber. The Congressional Oversight
Committee constituted under Section 8, paragraph c) of Eepublic Act No. 8182 shall cease to

exist and is hereby replaced by the Committee.


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SEC. 3. Functions and Duties of the Committee. - The Committee shall among others, in

aid of legislation:

a) Monitor and ensure the proper implementation of all laws, implementing
rules and regulations, and executive issuances relating to foreign and domestic
borrowings such as, but not limited to, Republic Act Nos. 4860 and 8182;

b) Review all documents relating to contracts, guarantees and negotiations on
foreign and domestic borrowings.

©) Review all subsisting contracts and guarantees on foreign and domestic
borrowings; and

4) Determine that the power of the President of the Republic, the government
and government owned and controlled corporation to negotiate, contract and

guarantee foreign and domestic borrowings is reasonably and legally exercised.

‘The phrase foreign and domestic borrowings shall refer to such borrowings or loans
negotiated, contracted and/ or guaranteed by the President on behalf of the Philippines, the
government or government owned and controlled corporations.

SEC. 4. Requisite Authority of the Committee. - In furtherance of the above enumerated
functions and duties of the Committee, the Committee is empowered to require all government
agencies concemed, including the Office of the President, the submission of all pertinent
information and data on foreign and domestic borrowings. Provided, however, that information

or data that are privileged shall be furnished the Committee only in Executive Session.
SEC. 5. Separability Clause. - If any provision of this Act or the application of such
provision to any person or circumstance is declared invalid, the remainder of the Act ot the

application of such provision to other persons or circumstances shall not be affected thereby.

See. 6. Repealing Clause. - All laws, decrees and orders or parts thereof inconsistent

herewith are deemed repealed or modified accordingly.

Sec. 7. Effectiv

- This Act shall take effect after thirty (30) days following the
completion of its publication in the Official Gazette or in two (2) national newspapers of general

circulation.

Approved,