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Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City, Philippines

SIXTEENTH CONGRESS
First Regular Session
_ 3444

HOUSE BILL NO.

INTRODUCED BY: HONORABLE TEODORO B. BAGUILAT, JR.

EXPLANATORY NOTE

‘The participation of Non-governmental Organizations (NGOs) and People’s Organizations
(POs) is vital and essential to nation building. No less than the Philippine Constitution recognizes
this, as Article II Section 23 thereof provides that “the State shall encourage non-governmental,
community-based or sectoral organizations that promote the welfare of the nation.” As such, Local
Government Units (LGUs), National Government Agencies (NGAs) and Government Owned or
Controlled Corporations (GOCCS), extend financial assistance to NGOs and POs to implement the
latters’ projects and assist in the their developmental efforts. The funds received by NGOs and
POs, however, remain to be and do not lose their character as public funds. Hence, it is but
imperative that the disbursement, utilization and management of such funds be vigilantly
safeguarded against corrupt and unscrupulous practices.

The primary step in safeguarding these funds is through the proper and meticulous
identification of recipient NGOs and POs. A centralized accrediting agency implementing 1
stringent selection procedure should be established to ensure that government funds are channeled
only to legitimate NGOs and POs working for the public good. A system of accountability should
also be put in place to determine responsibility over the proper utilization of funds and the
successful implementation of the projects. Finally, transparency in the disbursement, utilization and
management of the said funds ought to be guaranteed through the timely and regular posting of
relevant financial documents.

‘The Department of Social Welfare and Development (“DSWD”) is mandated by Executive
Order No. 292 or the Administrative Code of 1987 to “accredit institutions and organizations
engaged in social welfare activities and provide consultative and information services to them” and
fo “promote, support and coordinate the establishment, expansion and maintenance of non-
government social welfare facilities, projects and services”. Among its powers and functions, as set
forth in Executive Order No. 221 series of 2003, is to “set standards, accredit and provide
consultative services to public and private institutions, organizations and persons engaged in social
welfare activities, and monitor, performance and compliance to standards by institutions,
organization and persons engaged in social welfare activities, both in public and private.” ‘These,
together with DSWD’s extensive experience and competency in coordinating and engaging with


NGOs and POs make it the proper NGA to be given the specific mandate of accrediting NGOs
and POs wishing to avail of financial assistance from the government.

Immediate approval of this measure is earnestly requested.

HON. TEODORO B. BAGUILAT, JR
Representative
Ifugao Province


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Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City, Philippines

SIXTEENTH CONGRESS
___ Regular Session

vouse sino, 3444

INTRODUCED BY: HONORABLE TEODORO B. BAGUILAT, JR.

AN ACT PROVIDING FOR THE CENTRALIZED ACCREDITATION
OF NON-GOVERNMENTAL ORGANIZATIONS AND PEOPLE’S
ORGANIZATIONS ELIGIBLE TO ACCESS GOVERNMENT FUNDS AND
PROVIDING A SYSTEM OF ACCOUNTABILITY AND TRANSPARENCY FOR THE
USE OF SAID 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 Releases Act of 2013.”

SECTION 2. Declaration of Policy. ~ It is hereby declared the policy of the State to
vigilantly guard against organizations siphoning public funds for private ends to the demise of public
good and public service.

SECTION 3. Coverage. — This act shall cover all Non-Governmental Organizations and
People’s Organizations seeking to access government funds either as beneficiaries, conduits or
implementots of programs and projects supported by National Government Agencies, Local
Government Units, Government Owned or Controlled Corporations, or any other person or entity
releasing government funds.

SECTION 4. Definition of Terms. — As used in this Act:

(@) “Accreditation” shall mean the in-depth assessment of a Non-Governmental
Organization or a People’s Organization to determine whether government funds may
be entrusted to them to successfully accomplish the particular purpose, for which the
funds are to be released in a timely, cost-efficient and transparent manner.


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“Beneficiary” shall mean the community or any of its sectors, which is the intended
recipient of the results of the developmental efforts of the Non-Governmental
Organization or People’s Organization. Non-Governmental Organizations and Peopl
Organizations themselves of their members may be the direct beneficiaries of their owt
efforts.

“Conduit” shall refer to Non-Governmental Organizations and People’s Organi

who are entrusted with government funds for distribution to their intended beneficiaries.

“Funds” shall mean government funds from any National Government Agency, Local
Government Unit, Government Owned of Controlled Corporation and th
subsidiaries, or any other instrumentality, official or agent of the government.

“Fund Utilization Report” shall refer to a document showing the summary of how funds
entrusted to a Non-Governmental Organization or People’s Organization was utilized
fot a given period of time.

“Government Organization” shall refer to National Government Agencies, Lo
Government Units, Government Owned or Controlled Corporations and their
subsidiaries, or any other instrumentality, official or agent of the government releasing
government funds to Non-Government Organizations and People’s Organizations.

“Government Releases” shall mean the disbursement of government funds by any
Government Organization.

“Implementor” shall refer to Non-Governmental Organizations and People’s
Organizations who are entrusted with government funds to implement a particular
program or project for the social good.

“Non-Governmental Organization” shall mean a non-profit, voluntary organization
committed to the task of socio-economic development and established primarily for
public service.

“People’s Organization” shall mean an independent community and/or class-based
association established to protect and advance the interest of specific causes or sectors of
the society.

SECTION 5. Central Accrediting Agency. ~The Department of Social Welfare and

Development (DSWD) is hereby mandated to act as the Central Accrediting Agency for Non

Governmental Organizations and People’s Organizations seeking to be entrusted with governmen

funds from any Government Organization.

SECTION 6. Accreditation Mandatory for Government Releases. - No Non-

Governmental Otganization or People’s Organization shall be eligible to apply for any Government
Releases without having been accredited pursuant to this Act.


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2B SECTION 7. Criteria for Accreditation. — No Non-Governmental Organization or
74 People’s Organization shall be accredited by the Department of Social Welfare and Development
75 tobe eligible to access Government Releases, without having satisfactorily proved and gave evidence
76 of the following:

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78 (@ __Tthas been in existence and operational For at least two (2) years prior to its application
79 for accreditation. Certificate of registrations with the Securities and Exchange
80 Commission (SEC) and/or either the Cooperative Development Authority (CDA) or the
81 Department of Labor and Employment (DOLE) as the case may be, depending on the
82 nature of the service required to be rendered, shall be necessary to prove existence.
83 Photographs, receipts, employment contracts, proofs of billing and other documentary
84 evidence may be used to prove active operations.
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86 (b) Its incorporators, organizers, officers, personnel and members are natural persons
87 Necessary documents to prove the same are authenticated copy of the latest Articles of
88 Incorporation or the Articles of Cooperation as the case may be, Secretary's Certificate
89 for incumbent officers, together with the Certificate of Filing with the SEC or Certificate
90 of Approval by the CDA, two (2) government issued identification cards with
91 photograph of each of the named incorporators, organizers, officers, personnel and
92 members, employment contracts of all personnel and a Secretary's Certificate certifying
93 that said persons are the incorporators, organizers, officers, personnel or members.
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95 (© Ibis ina stable financial condition and that Government Releases shall not be its sole
96 source of funds. Financial Reports, audited by an Independent Certified Public
97 ‘Accountant, For the past two (2) years preceding the application for accreditation, shall
98 be necessary to show its financial condition.
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100 (@ _ Ithas an operational office in its registered place of business. Documents necessary for
101 this are Mayor's or Business Permit, Barangay Clearance, and photograph of the office
102 or place of business.
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104 (© It has a successful track record of providing assistance to its members and/or
105 beneficiaries. A sworn statement by its President detailing its accomplishments, projects
106 and programs undertaken, and list of actual beneficiaries with their contract details shall
107 be necessary for this purpose. Photographs and other documents that could support the
108 claims made therein shall accompany the sworn statement. If it has previously been
109 entrusted with Government Releases, a sworn statement detailing the status of the
110 project or program that availed of Government Funds shall also be mandatory.
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112 (© It is in compliance with all reportorial requirements of relevant regulating agencies.
113 Necessary documents shall include SEC annual submission of General Information
114 Sheet and Audited Financial Statements, among others.
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116 @ There is no real or apparent conflict of interest with it being entrusted with Government
117 Releases. Necessary documents for this purpose are Disclosure Statements signed by
118 each of its incorporators, organizers, officers and personnel enumerating their relatives

119 by consanguinity and affinity up to the fourth civil degree who ate officials or employees


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of Government Organizations, and a sworn statement signed its President disclosing its
related businesses, if any, and the extent of ownership therein.

(h) Iris a legitimate Non-Governmental Organization or People’s Organizations committed
to public service and working for the public good. Documentary evidence to show this
may include membership in good standing of coalitions, accreditations given by its peers
and/or other Government Organizations, accreditation and/or recognition by
international bodies, among others.

SECTION 8. Period of Validity of the Acereditai Accreditation given to a Non
Governmental Organization or People’s Organization by the Department of Social Welfare and
Development pursuant to this Act shall be valid for only one (1) year and may be renewed yearly
thereafter.

SECTION 9. Projects Eligible for Government Releases. ~'Uhe types of programs and
projects that may be subject of Government Releases shall be strictly limited to those that arc
beyond the capability of the Government Organization to undertake.

SECTION 10. No Government Releases for Infrastructure, - ‘Une preceding section
notwithstanding, no government fund shall be released to any Non-Governmental Organization or
People’s Organization, whether as a conduit or as an implementor, for the construction,
maintenance, operations and management of any and all hard infrastructure pro}

SECTION 11. No Government Releases for Livelibood. — Section 9, nothwithstanding,
no government fund shall be released to any Non-Governmental Organization or People’s
Organization, whether as a conduit or as an implementor, of any and all livelihood programs or
projects.

SECTION 12. Procurement. — Bidding for the procurement of goods, supplies and
equipments by Non-Governmental Organizations and People’s Organizations using government
funds shall be coursed through the Procurement Service of the Department of Budget Management
or through the Bids and Awards Committee of the Government Organization from which the fund
was released.

SECTION 13. Anti-Nepotism. — Any Non-Governmental Organization or People’s
Organization, which has an incorporator, organizer, officer or personnel related within the fourth
degree of consanguinity or affinity to any government official whose approval, whether discretionary
or ministerial, is necessary in effecting the Government Release from any Government
Organization, shall be ineligible to access the said Government Release.


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SECTION 14. Probibition on Pending Multiple Projects. — Non-Governmental
Organization or People’s Organization who have previously been entrusted with government funds
shall be ineligible to access Government Releases until the completion of their previous program or
project and have properly liquidated their use of goverment funds to the Government
Organization, which released said funds. The concemed Goverment Organization shall issue 2
certification of completion for this purpose.

SECTION 15. Posting and Publication of Government Releases. — Government Releases
amounting to One Million Pesos (PhP1,000,000.00) or more entrusted to a Non-Governmental
Organization or People’s Organization shall be published twice for two (2) consecutive weeks in a
newspaper of general circulation prior to the actual disbursement of the government fund. All
Government Releases shall be posted in three (3) conspicuous public places for one (1) month, such
as in the physical Public Information Boards and websites of the Office of the Government
Organization concerned, Barangay /Municipal /City/Provincial Halls and Public Markets.

SECTION 16. Submission and Posting of Fund Utilization Report. — One (1) month
after the actual disbursement of government funds and every month thereafter until the completion
of the program or project, the Non-Governmental Organization or People’s Organization shall
submit to the releasing Government Organization and the Department of Social Welfare anc
Development a Fund Utilization Report. ‘The Fund Utilization Report shall be posted physically in
the public information boards and in the website of the concerned Government Organization,
well as in the website of the Non-Governmental Organization or People’s Organization, if available.

SECTION 17. Daty of Government Organizations. — It shall be the duty of Government
Organizations authorizing the Government Release to monitor the proper usage of governme
funds entrusted to Non-Governmental Organizations and People's Organizations, the proper
implementation of the subject programs and projects, the proper distribution to intended
beneficiaries, and compliance with time schedules for the completion of programs and projects.

SECTION 18. Presumption of Malversation of Government Funds. — \ presumption of
malversation of government funds attaches whenever a Non-Government Organization ot People’s
Organization fails to account for Government Releases entrusted to them within fifteen (15)
from receipt of Notice of Accounting issued by the Government Organization, which author
the Government Release.

SECTION 19. Implementing Rules and Regulations. — ‘The Department of Social Welfare
and Development shall issue Rules and Regulations implementing this Act within thirty (30) days
from the effectivity hereof.

SECTION 20. Appropriations. - ‘The amount necessaty to catty out the provisions of this
‘Act shall be charged against the Department of Social Welfare and Development's current budget
and shall thereafter be included in the annual General Appropriations Act.


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SECTION 21. Separability Clause. — If any section or part of this Act is held
unconstitutional or invalid, the other sections or provisions shall remain in full force and effect.

SECTION 22. Repealing Clause, — All laws, decrees, executive orders, rules and
regulations, issuances or any part thereof, insofar as they are inconsistent with the provisions of this
‘Act, are deemed repealed.

SECTION 23. Hffectivity. ~’This Act shall take effect fifteen (15) days after its publication
in at least two (2) newspapers of general circulation.