CONGRESS OF THE PHILIPPINES 
SIXTEENTH CONGRESS 
First Regular Session 
} 
SENATE 
S" No. 468 
INTRODUCED BY SENATOR FRANKLIN M. DRILON 
EXPLANATORY NOTE 
'13 
Stl1nh? 
li)if,;. "f til' ".;i>N",I""lI 
JUL -4 A10:31 
Executive Order No. 292, otherwise known as the Administrative Code of1987, has defined the 
mandate of the Office of the Government Corporate Counsel (OGCC) as the law office of 
government-owned and controlled corporations (GOCCs), their subsidiaries, other affiliated entities 
and government-acquired asset corporations. On account of this, the OGCC has been constituted to 
protect their legal interests with the provision of a competent, swift and adequate legal service, 
fully-cognizant of its commitment to uphold jnstice under the rule oflaw. 
At the moment, a growing number of requests for legal advice and supervision of cases are handled 
by the OGCC, in addition to the performance of its adjudicatory and other functions. To efficiently 
and effectively address the expanding requirements of these government corporations, this 
proposed measure seeks t6 strengthen the OGCC by re-defining, expanding, strengthening, 
rationalizing and further professionalizing the OGCC as an organization and upgrading the 
employee benefits. 
Foregoing considered, the approval of this proposed bill is earnestly sought. 
F 


CONGRESS OF THE PHILIPPINES 
SIXTEENTH CONGRESS 
First Regular Session 
} 
SENATE 
S. No. 468 
INTRODUCED BY SENATOR FRANKLIN M. DRlLON 
j,rnll.tr 
(llH,;, ,>i lit< J'm.lnt~ 
:31 
AN ACT TO STRENGTHEN THE OFFICE OF THE GOVERNMENT CORPORATE COUNSEL, BY 
REDEFINING, 
EXPANDING, 
STRENGTHENING, 
RATIONALIZING 
AND 
FURTHER 
PROFESSIONALIZING ITS ORGANIZATION, UPGRADING EMPLOYEE BENEFITS AND 
APPR9PRIATING FUNDS THEREFOR 
Be it enacted iby the Senate' and House of Representatives of the Philippines in (';ongress assembled: 
1 
SECTION 1. Declaration of Policy. -
It shall be the policy of the State to protect and promote the 
2 
welfare, rights and interests of govermnent-owned and -controlled corporations, their subsidiaries, other 
3 
corporate offsprings, including govermnent acquired asset corporations, govermnent corporate entities and 
4 
govermnent instrumentalities with corporate powers, govermnent financial institutions, and other 
5 
government entities, including economic zones and state universities, referred to as "government 
6 
corporations". 
7 
Toward this end, the State shall require the improvement of legal services to efficiently and 
8 
effectively address the expanding needs of these government corporations in accordance with its initiative 
9 
towards an improved fiscal management and good corporate governance. 
10 
SEC. 2. Jurisdiction and Mandate. - Any law to the contr-my n()twithstanding, the Office of the 
11 
Govermnent Corporate Counsel (OGCC) shall be the legal counsel and principal law office of all 
12 
government corporations. All govermnent corporations shall refer to the OGCC the following: 
13 
(a) All legal questions for opinion and advice; 
14 
(b) Prior to their execution, all contracts for review; and 
15 
(c) All cases for representation before regular courts, quasi-judicial bodies, administrative agencies 
16 
and arbitral tribunals: Provided, That the Government Corporate Counsel (GCC) may thereafter authorize 


1 
the government corporation's legal department as collaborating counsel to handle cases, as the urgency or 
2 
expediency of circumstances may warrant. 
3 
Moreover, as special and additional duties, the OGCC shall: 
4 
(a) 
Conciliate, mediate, act as hearing officers or adjudicate all disputes or controversies 
5 
exclusively between government corporations; 
6 
7 
8 
9 
(b) 
Exercise control and supervision over the legal departments of all government corporations; 
(c) 
Approve the engagement of private lawyers by the government corporations; 
(d) 
Serve as Corporate Secretary in all boards of government corporations; and 
(e) 
Perform such other special works or functions necessary in the interest of the service. 
10 
The OGCC shall be an independent and autonomous office attached to the Department of Justice. 
11 
All opinions and issuances of the OGCC shall be binding on all government corporations. 
12 
SEC. 3. Expansion and Upgrading of Positions. - The GCC shall have a cabinet rank and the same 
13 
prerogatives, salary, allowances, benefits and privileges as the Presiding Justice of the Court of Appeals. 
14 
He/she shall be assisted by a Deputy Government Corporate Counsel (DGCC) and twelve (12) Assistant 
15 
Government Corporate Counsels (AGCC) who shall have the rank, salary, allowances, retirement benefits, 
16 
and privileges of an Associate Justice of the Court of Appeals. 
17 
No person shall be appointed GCC, DGCC or AGCC unless he/she is a natural-born citizen of the 
18 
Philippines and, for at least fifteen (15) years, has been engaged in the practice oflaw in the Philippines. The 
19 
number, rank, qualifications for appointment, salary, allowances, retirement and other benefits, and 
20 
privileges of the other members of the legal staff shall be as follows: 
21 
(a) Twenty (20) Government Corporate Attorney IV (GCA IV) who shall have the rank, salary, 
22 
allowances, retirement benefits, and privileges of a Regional Trial Court Judge. No person shall be 
23 
appointed GCA IV unless he/she is a natural-born citizen of the Philippines 'and has been engaged in the 
24 
practice oflaw in the Philippines for at least ten (10) years; 
25 
(b) Twenty (20) Government Corporate Attorney III (GCA III") who shall have the rank, salary, 
26 
allowances, retirement benefits, and privileges of a Metropolitan Trial Court Judge. No person shall be 
27 
appointed GCA III unless he/she is a natural-born citizen of the Philippines and has been engaged in the 
28 
practice of law in the Philippines for at least five (5) years; 
2 


1 
(c) Twenty (20) Government Corporate Attorney II (GCA II), who shall have the rank, salary, 
2 
allowances, retirement benefits, and privileges of a Municipal Trial COUlt Judge in Cities. No person shall be 
3 
appointed GCA II unless he/she is a natural-born citizen of the Philippines and has been engaged in the 
4 
practice oflaw in the Philippines for at least five (5) years; and 
5 
(d) Twelve (12) Government Corporate Attorney I (GCA I). No person shall be appointed GCA I 
6 
unless he/she is a natural-born citizen of the Philippines and has been admitted to the Philippine Bar. 
7 
The GCC, DGCC and AGCC shall be appointed by the President of the Philippines. The other 
8 
members of the legal staff and administrative perso1l1le1 shall be appointed by the GCC. Appointments of 
9 
the DGCC, AGCC and other members of the legal staff shall be deemed permanent upon compliance with 
10 
the prescribed qualification standards under this law. 
11 
The administrative structure of the OGCC shall be organized into the Finance and Accounting 
12 
Services, the Human Resource and Management Services, the Case and Records Management Services, the 
13 
Library Man~gement and Information Technology Services and the Property and Supply Services. 
14 
The legal and non-legal staff of the OGCC occupying the positions affected by the changes 
15 
embodied in this Act at the time of its approval shall thereafter occupy and discharge the duties and 
16 
functions of the upgraded positions and receive and receive the corresponding salary, benefits and privileges 
17 
without necessity of new appointment. 
18 
SEC. 4. Compensation. -
The basic monthly compensation of the OGCC employees shall be as 
19 
follows: 
Position 
Salary Grade 
From 
To 
Government Corporate Counsel 
30 
31 
Deputy Government Corporate Counsel 
29 
30 
Assistant Government Corporate Counsel 
29 
30 
Government Corporate Attorney IV 
28 
29 
Government Corporate Attorney III 
27 
28 
Government Corporate Attorney II 
26 
27 
Government Corporate Attorney I 
25 
26 
3 


1 
The non-legal personnel shall have the same compensation as that of their counterparts in the Office 
2 
of the Solicitor General and Court of Appeals. 
3 
The salaries, benefits and privileges of the personnel of the OGCC granted under this Act shall 
4 
further be increased to match any corresponding increase in salaries and privileges subsequently granted to 
5 
their respecti1e counterparts in the judiciary. 
6 
SEC. 5. Personnel Benefits and Privileges. -
Provisions of other laws to the contrary 
7 
notwithstanding, the OGCC may provide its employees the following benefits: 
8 
(a) Health C!ire services through a health maintenance organization (HMO). Expenses for the 
9 
mandatory medical annual check-up of the GCC, the DGCC and the AGCC shall be for the account of the 
10 
office. 
11 
(b) Accident insurance for all employees to be procured by the office at its own expense for travels 
12 
while inthe perfonnance of officiaL duties; 
13 
(c) Without prejudice to the efficiency ofthe service, scholarships for deserving employees on official 
14 
time and at the expense of the office to upgrade their knowledge and skills: Provided That, scholars under 
15 
this provision shall be selected on the basis of merit as determined by competitive examination; 
16 
(d) A provident fund which shall consist of, but not be limited to, contributions made by the office 
17 
and by its lawyers and employees to a common fund for the payment of benefits to such lawyers or 
18 
employees or their respective beneficiaries/heirs. 
19 
SEC. 6. Seminar and other Professional Fees. - Subject to availability of funds, fees for relevant 
20 
seminars, as well as professional membership fees for lawyers, registration fees and related miscellaneous 
21 
expenses incurred in completing the mandatory continuing legal education (MCLE) shall be borne by the 
22 
office. Professional membership, registration fees including those for mandatory continuing professional 
23 
education (CPE), and related miscellaneous expenses of other employees holding positions for which a 
24 
professional license is required by the office, shall also be borne by the OGCC. 
25 
SEC.17. Transportation Benefits. - Subject to availability of funds, employees shall be provided with 
26 
contracted t~ansportation services until such time that the office can procure' additional motor vehicles for 
27 
this purpose. 
4 


1 
2 
3 
4 
5 
6 
7 
8 
9 
10 
11 
12 
13 
14 
15 
16 
17 
18 
19 
20 
21 
22 
23 
24 
25 
26 
27 
SEC. 8. Other Benefits. - Provisions of other laws to the contrary notwithstanding, the legal staff of 
the OGee are allowed to receive allowances, honoraria and reimbursement of reasonable expenses from the 
government corporations. Employees of the OGCC may likewise be extended such benefits and privileges as 
are given to the employees of their clients: Provided, That such allowances or honoraria shall not exceed 
one hundred percent (100%) of their basic salary as provided under the Salary Standardization Law 
(Republic Act No. 6758). 
In addition, any member of the legal staff may be designated by the GCC to act in a concurrent 
capacity as Corporate Secretary of, or assigned to perform special or additional tasks in, any of the 
government corporations and by virtue of such designation or assignment, receive such additional 
compensation and privileges as maybe granted them by the concerned government corporation. 
SEC. 9. Attorney's fees and Special Assessment. - The OGCC is authorized to receive twenty 
percent (20%) of all the money claims collected by, or awarded/adjudged to government corporations in 
addition to the attorney's fees awarded by a court, tribunal or panel, including awards/judgments, stipulated 
under court-approved compromises. 
The OGCC is hereby authorized to use such awards and attorneys fees to meet contingencies, 
obligations aJild undertakings, or for employee salaries, allowances, other benefits and incentives in Section 5 
hereof, neces~ary or proper to promote efficiency in the service as determined by the GCC. 
I 
The GeC is likewise authorized to make special assessments upon GOCCs to similarly meet such 
contingencies, obligations and undertakings, or to provide for employee salaries, allowances, other benefits 
and incentives, as may be warranted or proper as determined by the GCC. 
Attorney's fees and special assessments shall be deposited in an authorized government depository 
as a trust liability and shall be made available for expenditure without the need for a Cash Disbursement 
Ceiling, for purposes of upgrading facilities and equipment, granting of employees' incentive pay and other 
benefits, and defraying such other incentive expenses not provided for in the General Appropriations Act as 
may be determined by the Gee. In both cases, the usual accounting and auditing procedures shall apply. 
SEC. 10. Franking Privilege. - All official matters and telegrams of the OGeC addressed for 
delivery within the Philippines shall be received, transmitted and delivered free of charge. 
5 


, , 
'. ' 
1 
SEC. 11. Appropriations. - The amount needed for employees' salaries, mandatory allowances and 
2 
benefits under other laws, maintenance and other operating expenses and capital outlay shall be appropriated 
3 
in the budget of the OGCC under the annual General Appropriations Act. 
4 
SEC. 12. Implementing Rules and Regulations. - Within sixty (60) days from the approval of this 
5 
Act, the GCC, in consultation with the Secretary of the Justice and Secretary of Budget and Management, 
6 
shall promulgate such rules and regulations as may be necessary to carry out the provisions of this Act. 
7 
SEC. n. Repealing Clause. - Provisions of Presidential Decree No. 1415 dated June 9,1978, other 
8 
provisions of!Presidential Decree 1415, Executive Order 292 or the Revised Administrative Code of 1987, 
9 
as amended, Executive Order 878 dated March 4, 1983, Republic Act No. 6000 dated August 4, 1969, and 
10 
other pertinent laws, rules and regulations shall remain in force and effect unless otherwise contrary or 
11 
inconsistent with the .provisions of this Act. 
12 
SEC. 14. Separability Clause. 
- If any of the provisions of this Act is declared invalid or 
13 
unconstitutional, the provisions not affected thereby shall continue to be in full force and effect. 
14 
SEC. 15. Effectivity. - This Act shall take effect after fifteen (15) days from its publication in the 
15 
Official Gazette or in a national newspaper of general circulation. 
16 
Approved, 
6