THIRTEENTH CONGRESS OF THE REPUBLIC 
Third Regdar Session 
OF THE PHILIPPINES 
S E N A T E  
Introduced by Senator Manuel “Lito” M. Lapid 
EXPLANATORY NOTE 
This legislative intervention is being proposed in order to give flesh to Article XVI, 
Section 7 of the 1987 Constitution which mandates that the State should provide 
immediate and adequate care, benefits and other forms of assistance to our war 
veterans and veterans of military campaigns, their surviving spouses and orphans. 
There are World War II veterans who died without being able to enjoy the 
benefits due to them. Because of this, there is a continuing clamor to give to our 
veterans their promised benefits. 
To date, the Philippine government owes our war veterans an estimated amount 
of more than P42.0 billion pesos in unpaid benefits. Unless the government adopts 
innovative mechanisms to address this escalating obligation to our war veterans, its 
obligations will continue to mount. 
In view thereof, this proposed measure seeks to provide the mechanisms so that 
we can get necessary funds to pay the arrears in the veterans and military retirees’ 
pensions and benefits. Under this measure, all proceeds from the lease, development 
or use of selected properties of the government shall be utilized to fund the pensions 
and benefits of veterans and military retirees, whether in arrears or due for payment by 
the national government. Furthermore, all proceeds and receipts from the lease, 
development or use of said properties shall be remitted directly to any government bank 
as the depository bank, managed by the PVAO for purposes of distribution of pensions 
and benefits directly to war veterans and military retirees. 
This measure seeks to make it possible for the Philippine government to pay the 
veterans the billions owed to them in health, disability, social welfare and pensions. 
Through this measure, we will give honor and recognition to the wartime sacrifices 
made by our countrymen to protect our freedom and democracy. This will also show 
good faith on the part of our government in its commitment to deliver veterans’ benefits 
and services that will improve their general welfare and perpetuate the memory of their 
heroic deeds. 
In view of the foregoing, the passage of this measure is earnestly sought. 


THIRTEENTH CONGRESS OF THE REPUBLIC 
) 
OF THE PHILIPPINES 
1 
Third Regular Session 
1 
S E N A T E  
Introduced by Senator Manuel "Lito" M. Lapid 
AN ACT 
MANDATlWGTHEUSEOFTHEPROCEEDSFROMTHEDEVELOPMENT, 
LEASE OR USE OF GOVERNMENT PROPERTIES FOR VETERANS 
PENSIONS AND BENEFITS 
Be it enacted by the Senate and House of Representatives of the Philippines in 
Congress assembled: 
SECTION 1. 
Declarafion of Policy. - Consistent with the Constitutional 
mandate to provide immediate and adequate care and benefits to war veterans, it is 
hereby declared the policy of the State to provide the necessary funds to pay the 
arrears in the veterans and military retirees' pensions and benefits. 
SEC. 2. 
Coverage. - This Act shall apply to the lease, development or use, 
The former site of the Philippine Veterans Affairs Office (PVAO) at 
Arroceros Street, Ermita, Manila; 
The Veterans Memorial Medical Center in Quezon City; 
The Veterans Center in Taguig, Metro Manila; 
The properties given by the Japanese government to the Philippine 
government under the Reparations Agreement, including the Roppongi 
and Nampeidai properties in Tokyo and the Naniwa-cho and Obanoyam 
properties in Kobe; and 
Other properties that may be identified by the Office of the President. 
as the case may be, of the following properties of the government, namely: 
(a) 
(b) 
(c) 
(d) 
(e) 
SEC. 3. 
Utilization of Proceeds for Veterans and Military Retirees' 
Pensions and Benefits. - All proceeds from the lease, development or use of the 
aforesaid properties shall be utilized to fund pensions and benefits of veterans and 


military retirees, whether in arrears or due for payment by the national government: 
Provided, That any shortfall in payment of pensions and benefits to veterans and 
military retirees shall continue to be assumed by the national government from other 
sources, and that this Act is not intended to be in full satisfaction of said pensions and 
benefits: Provided further, That all proceeds and receipts from the lease, development 
or use of said properties, except operational expenses, shall be remitted directly to any 
government bank as the depository bank, managed by the PVAO for purposes of 
distribution of pensions and benefits directly to war veterans and military retirees, and 
for no other purpose. 
SEC. 4. 
Privatization Council and Privatization Management Office as 
Implementing Agencies. - For purposes of implementing the provisions of this Act, the 
Privatization Council (PC) is hereby empowered to direct, supervise and coordinate 
private sector participation in the lease, development or other use of the above 
properties, in order to generate maximum cash recovery for the benefit of war veterans 
and military retirees. 
The Privatization and Management Office (PMO) is hereby authorized to 
implement the actual marketing for the lease, development or use of the above 
properties after securing the prior approval of the Council; to execute and deliver, on 
behalf of the national government, the deed, the contracts and other instruments as 
may be necessary or appropriate to effect the lease, development or use of said 
properties; to secure possession of and conserve the same; to engage external 
expertise as may be necessary in the fulfillment of its tasks; to submit periodic reports to 
the Council and to the PVAO on the status of private sector participation in the lease, 
development or use of said properties; and to adopt such rules and regulations as may 
be necessary to effect the provisions of this Act. 
SEC. 5. 
Implementing Rules and Regulations (IRR). - The Department of 
National Defense (DND), through the PVAO, the Department of Finance (DOF) through 
the PMO, in coordination with the Committees of National Defense and Veterans Affairs 
of the Senate and the House of Representatives, respectively, shall promulgate the 
implementing rules and regulations for this Act within six (6) months after enactment 
hereof. 
SEC. 6. 
Separability Clause. - If, for any reason, any portion or provision of 
this Act shall be declared unconstitutional, other parts or provisions hereof which are not 
affected thereby shall continue to be in full force and effect. 


SEC. 7. 
Repealing Clause. - All other laws, decrees, executive orders, 
rules and regulations and other issuances or portions thereof inconsistent with the 
provisions of this Act are hereby repealed or modified accordingly. 
SEC. 8. 
Effectivity Clause. - This Act shall take effect after (15) days 
following the completion of its publication in two (2) newspapers of general circulation. 
Approved,