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THIRTEENTH CONGRESS OF THE REPUBLIC 
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OF THE PHILIPPINES 
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Third Regular Session 
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S E N A T E  
S. No. 
3 
Introduced by Senator S. R. OsmeAa 111 
EXPLANATORY NOTE 
Our veterans fought with gallantry and courage under the most difficult 
conditions during World War II. They fought valiantly and bravely to preserve our 
independence from intrusions by enemies of the state. It has been more than half a 
decade since they have made crucial sacrifices for this nation, yet the State continues 
to fall short in recognizing those sacrifices. 
The Constitution provides under Section 7, Article XVI that 
"The State shall provide immediate and adequate care, benefits, and 
other forms of assistance to war veterans and veterans of military 
campaigns, their surviving spouses and orphans." 
Despite the above provision, military veterans and retirees have not received 
adequate compensation for the service they gave for the country. 
As of last year, the total unpaid obligations to war veterans and military retirees 
stood at P42 billion. Appropriations for this sector from the national budget has been 
insufficient. 
As funding requirements for them is projected to continuously grow over 
the years, it is imperative that the State find ways to meet these growing 
requirements. 
This bill seeks to make use of the proceeds from the development, lease or use 
of government properties to provide the necessary funds to pay the veterans' and 
military retirees' pensions and benefits. The government properties sought to be 
covered are: a) the former site of the Philippine Veterans Affairs Office (PVAO) at 
Arroceros Street, Ermita, Manila; b) the Veterans Memorial Medical Center in Quezon 
City; c) the Veterans Center in Taguig, Metro Manila; d) 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 e) other properties that may be 
identified by the Office of the President. 


It is high time that we recognize their contribution and thereby, restore honor 
and dignity to our proud veterans. 
In view of the foregoing, approval of this bill is earnestly sought 
S ~ R G I O  
OSMENA 111 
Senator 


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THIRTEENTH CONGRESS OF THE REPUBLIC 
) 
OF THE PHILIPPINES 
1 
Third Regular Session 
) 
S E N A T E  
Introduced by Senator S. R. OsmeAa 111 
AN ACT 
MANDATING THE USE OF THE PROCEEDS FROM THE DEVELOPMENT, LEASE 
OR USE OF GOVERNMENT PROPERTIES FOR VETERANS’ PENSIONS AND 
BENEFITS 
Be it enacted by the Senate and the House of Representatives of the Republic of the 
Philippines in Congress assembled: 
SECTION 1. Declaration 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, as 
the case may be, of the following properties of the government: 
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. 


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SEC. 3. Utilization of Proceeds for Veterans and Militaiy 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 form 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, and 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 
lmplementing 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 deeds, 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. 


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SEC. 5. lmplementing Rules. - The Department of National Defense, through 
the PVAO, the Department of Finance through the F’MO, 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 months affer 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 issuance or portions thereof inconsistent with the provisions 
of this Act are hereby repealed or modified accordingly. 
SEC. 8. Effectivity. - This Act shall take effect fifteen (15) days following the 
completion of its publication in two national newspapers of general circulation.. 
Approved,