Stn~'hi' 
SIXTEENTH CONGRESS OF THE 
REPUBLIC OF THE PHILIPPINES 
First Regular Session 
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'13 
JllL -8 P 5 :13 
SENATE 
S.NO. 644 
Introduced by Senator Antonio "Sonny" F. Trillanes IV 
EXPLANATORY NOTE 
Infrastructure development plays a vital role in shaping our country's economy. Improved 
infrastructure in the country would help us attract more investors to invest in our country which 
would then lead to a more productive and prosperous economy. Annually, the govemment 
allocates a substantial portion of its money to public works projects. However, the huge alllount 
of money earmarked for the Sallle are often vulnerable to anomalous acts, such as substandard 
work and the use of substandard materials. 
PO 1759 was signed in 1981 to prevent construction of public facilities that are substandard, as 
well as the use of materials that have poor quality. PO 1759 also imposes sanctions on violations 
of its provisions. 
This bill seeks to strengthen PO No. 1759 by increasing the penal sanctions on the violations of 
the provision of this law from a minimum imprisonment of twelve (12) years to twenty (20) 
years. It also includes the use of premature deterioration of public works structure as prima facie 
evidence in determining the violation of the provisions ofthis law. 
In view of the foregoing, immediate approval of this measure is earnestly sought. 
I 
'-.:::A-o-£d';;::ANES IV 
Senator 
1 


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SIXTEENTH CONGRESS OF THE 
REPUBLIC OF THE PHILIPPINES 
First Regular Session 
) 
) 
) 
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'13 
JUL -8 P5:13 
SENATE 
S.NO. 644 
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Introduced by Senator Antonio I'Sonny" F. Trillanes IV 
AN ACT 
INCREASING THE PENALTIES IMPOSED AGAINST CONTRACTORS AND 
SUBCONTRACTORS 
WHO 
VIOLATE 
ANY 
MATERIAL 
PROVISION 
OF 
CONTRACTS INVOLVING PUBLIC WORKS PROJECTS OF THE GOVERNMENT, 
AND PUBLIC OFFICIALS WHO ALLOW SUCH VIOLATIONS, AMENDING FOR 
THIS PURPOSE PRESIDENTIAL DECREE NO. 1759 
Be in enacted by the Senate and House of Representatives of the Philippines in Congress 
assembled: 
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SECTION 1. Section 1 of Presidential Decree No, 1759, is hereby amended to read as 
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follows: 
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"Section 1. - Any provisions of the law contrary notwithstanding, contractors and sub-
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contractors who violate any material provision[s] of contracts involving public works 
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projects, either as to materials, quality and quantity of work, resulting [to the] IN 
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prejudice [of the] TO TIE government, shall suffer the penalty of IMPRISONMENT 
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RANGING from [twelve (12) TWENTY (20) years to life [imprisorunent], A FINE 
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RANGING FROM FIFTY PERCENT (50%) TO TWO HUNDRED PERCENT (200%) 
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OF THE AMOUNT OF THE CONTRACT, [at the discretion of the Court,] and shall, in 
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addition, suffer [perpetual disqualification from participating in any government 
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contracts,] IPSO FACTO REVOCATION OF THEIR CONTRACTOR'S LICENSES 
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INCLUDING THE PROFESSIONAL LICENSES OF EXECUTIVES IN CHARGE OF 
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THE DESIGN AND CONSTRUCTION OF THE PROJECT 
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The offending contractor or sub-contractor shall further be liable for the cost of 
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reconstructing such public works project in accordance with the specifications agreed 
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upon, 
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In case of corporations, partnerships or associations, the President, General 
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Manager or any responsible chief executive officer/ officers shall be liable, ANY 
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PROPRIETORSHIP, 
CORPORATION, 
PARTNERSHIP, 
ASSOCIATION, 
OR 
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BUSINESS ORGANIZATION WHOSE PROPRIETOR, STOCKHOLDER, PARTNER, 
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MEMBER OR OFFICER IS RELATED WITHIN THE FOURTH DEGREE OF 
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1 
CONSANGUINITY OR AFFINITY TO THE PERSON CONVICTED OF VIOLATION 
2 
OF ANY OF THE ACTS PUNISHABLE UNDER THIS ACT IS PROHIBITED FROM 
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PARTICIPATING IN SAID GOVERNMENT CONTRACT THE PREMATURE 
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DETERIORATION OF ANY PUBLIC WORKS PROJECT SHALL CONSTITUTE 
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PRIMA FACIE EVIDENCE OF VIOLATION OF SHALL CONSTITUTE PRIMA 
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FACIE EVIDENCE OF VIOLATION OF THE ACTS PUNISHABLE UNDER THE 
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FIRST PARAGRAPH 
OF 
THIS 
SECTION, 
THE 
SECRETARY 
OF 
THE 
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DEPARTMENT OF PUBLIC WORKS AND HIGHWAYS IS HEREBY MANDATED 
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TO 
PROMULGATE 
THE 
NECESSARY 
IMPLEMENTING 
RULES 
AND 
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REGULATIONS TO EFFECTIVELY CARRY OUT THE INTENT OF THE 
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PROVISIONS OF THIS PARAGRAPH," 
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SEC. 2. - Section 2 is amended to read as follows: 
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"Any public official who, by reason of the duties of his office, shall consent, or through 
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abandonment or negligence, permit the contractor or subcontractor to commit [the violations 
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mentioned in Section I hereof,) ANY OF THE ACTS PUNISHABLE UNDER THIS ACT shall 
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suffer the penalty ofIMPRISONMENT RANGING from [twelve (12)) TWENTY (20) years to 
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life [imprisonment), A FINE EQUIVALENT TO THIRTY PERCENT (30%) OF THE 
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AMOUNT OF THE CONTRACT and perpetual disqualification [to) FROM holding any public 
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office, ANY PROPRIETORSHIP, CORPORATION, PARTNERSHIP, ASSOCIATION, OR 
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BUSINESS ORGANIZATION WHOSE PROPRIETOR, STOCKHOLDER, PARTNER, 
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MEMBER OR OFFICER IS 
RELATED WITHIN THE FOURTH DEGREE OF 
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CONSANGUINITY OR AFFINITY TO THE PUBLIC OFFICER IN OF OR ASSOCIATED IN 
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ANY MANNER WITH THE PROJECT BEING UNDERTAKEN IS PROHIBITED FROM 
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PARTICIPATING IN SAID GOVERNMENT CONTRACT," 
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SEC. 3. - Any provisions of law, degree, executive order or any issuance inconsistent 
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herewith are hereby repealed and! or modified accordingly, 
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SEC. 4 - This Act shall take effect fifteen (15) days following completion of its 
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publication in at least two (2) newspapers of general circulation, 
Approved. 
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