EIGHTEENTH CONGRESS OF THE 
REPUBLIC OF THE PHILIPPINES 
First Regular Session
SENATE
S. B. No.
53
XP TIME:
BILLS
Introduced by SENATOR MANUEL “ LITO” M. LAPID
AN ACT
EXPANDING THE SCOPE OF THE CRIME OF ECONOMIC SABOTAGE
AMENDING FOR THAT PURPOSE PRESIDENTIAL DECREE NO. 1689
EXPLANATORY NOTE
The financial market is undeniably one of the major drivers of economic growth in 
the country. Through this, money flows from those who have surplus funds to those who 
have a deficit of funds and are in need of money to either start or expand a business. 
The growth of the financial market will necessarily have a trickle-down effect on virtually 
every sector of the economy but most especially to sole entrepreneurs, start-ups, and 
micro, small and medium enterprises (MSMEs) who will now have access to reasonable 
financing and investment arrangements.
However, recent events revealed several cracks in existing policies relating to the 
banking and financial sector that economic saboteurs capitalize on and engage in 
schemes calculated to plunder outrageous amounts of deposits in banks or the 
contributions by unsuspecting investors. Worse, most of the victims are depositors or 
members of rural and thrift banks and other financial institutions that belong to the 
poorer sections of society. Case in point is the recently publicized scheme of a religious 
organization where an investigation by the Securities and Exchange Commission (SEC) 
allegedly reveal that it is engaged in a Ponzi Scheme which is an investment program 
that offers impossibly high returns and pays these returns to early investors out of the 
capital contributed by later investors. By simple arithmetic, the SEC revealed how
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unsustainable and fraudulent the scheme is -  it would need a monthly in-flow of money 
In a staggering amount of Php 15 Billion in order to pay its approximately five (5) million
members.
These fraudulent schemes must end. Thus, this measure is proposing the 
revision of the law now existing to underscore the need to mete a severe punishment on 
those who prey on unsuspecting depositors/investors. Not only does this measure 
insulate the investors/depositors from these economic saboteurs but likewise it will help 
maintain the confidence and trust of the people on the nation's banking and financial
sector.
Early passage of this bill is earnestly sought.
Senator


EIGHTEENTH CONGRESS OF THE 
) 
REPUBLIC OF THE PHILIPPINES 
)
First Regular Session 
)
SENATE
s:no. 03
BILLS
Introduced by Senator Manuel “ L ito ” M. Lapid
AN ACT
EXPANDING THE SCOPE OF THE CRIME OF ECONOMIC SABOTAGE 
AMENDING FOR THAT PURPOSE PRESIDENTIAL DECREE NO. 1689
Be it enacted by the Senate and House of Representatives o f the Philippines in 
Congress assembled:
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Section 1. Section 1 of Presidential Decree No. 1689 is hereby amended to read
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as follows:
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"Section 1. Any person [or persons] who, BY HIMSELF OR IN
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CONNIVANCE WITH MEMBERS OF HIS FAMILY, RELATIVES BY
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AFFINITY 
OR CONSANGUINITY, 
BUSINESS 
ASSOCIATES,
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SUBORDINATES 
OR 
OTHER 
PERSONS, 
shall 
[commit]
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DEFRAUD 
OR MISAPPROPRIATE MONEY CONTRIBUTED BY
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STOCKHOLDERS, 
OR 
MEMBERS 
OF 
RURAL 
BANKS,
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COOPERATIVE, "SAMAHANG NAYON(S)", 
OR 
FARMERS
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ASSOCIATION, 
OR 
OF 
FUNDS 
SOLICITED 
BY
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CORPORATIONS/ASSOCIATIONS 
FROM 
THE GENERAL
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PUBLIC THROUGH AN ACT OR ACTS CONSTITUTING estafa or
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Other forms of swindling as defined in Article 315 and 316 of the
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Revised Penal Code, 
as amended, shall be punished by life
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imprisonment to death, 
[if the swindling (esfafa) is committed by a
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syndicate consisting of five or more persons formed with the intention
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of carrying out the unlawful or illegal act, transaction, enterprise or
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scheme, and the defraudation results in the misappropriation of
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money contributed by stockholders, or members of rural banks,
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cooperative, "samahang nayon(s)", or farmers 
association, 
or of
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funds solicited by corporations/associations from the general public.]


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ANY PERSON WHO PARTICIPATED IN THE COMMISSION OF 
THE 
CRIME SHALL 
LIKEWISE 
BE 
PUNISHED. 
IN THE 
IMPOSITION 
OF 
PENALTIES, 
THE 
DEGREE 
OF 
PARTICIPATION AND THE ATTENDANCE OF MITIGATING AND 
EXTENUATING CIRCUMSTANCES SHALL BE CONSIDERED BY 
THE COURT. [When 
not committed 
by a syndicate as above 
defined, 
the 
penalty imposable shall 
be 
reclusion 
temporal to 
reclusion 
perpetua 
if 
the amount of the fraud exceeds 100,000 
pesos.]"
Sec. 2. Separability Clause. - If any provision of this Act is declared 
unconstitutional or invalid, the other provisions not affected by such declaration shall 
remain in full force and effect.
Sec. 3. Repealing Clause. - Any law, decree, ordinance or administrative 
circular not consistent with any provision of this Act is hereby amended, repealed or 
modified accordingly.
Sec. 4. E ffectivity Clause. - This Act shall take effect fifteen (15) days after its 
complete publication in the Official Gazette or in two (2) newspapers of general 
circulation.
Approved,