Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City, Metro Manila

FIFTEENTH CONGRESS
Third Regular Session

8526
House Bill No.__ °°

Introduced by HON. JOSEPH EMILIO AGUINALDO ABAYA

EXPLANATORY NOTE

This legislative measure seeks to give full emphasis and thrust to
the time honored principle that PUBLIC OFFICE IS A PUBLIC
TRUST, and PUBLIC MONEY MUST BE FULLY ACCOUNTED FOR
by the responsible public officer and employees. Public accountability
of all funds and properties of the government, therefore, becomes a
legal and mandated duty as it is the focal point of good governance.

To be known as the “Disclosure Act on Local Transactions", the
proposed bill amends Section 352 of Republic Act No. 7160,
otherwise known as the Local Government Code of 1991

The amendment introduced other items of expenditure and
disbursement for posting, instead of a mere statement of income and
expense being required to be posted. Thus, local transactions
mandated to be posted or published include Annual Budget, Quarterly
Statement of Cash Flows, Statement of Receipts and Expenditures,
Trust Fund (PDAF) Utilization, Special Education Fund Utilization,
20% Component of the IRA Utilization, Gender and Development
Fund Utilization, Statement of Debt Service, Annual Procurement
Plan or Procurement List, Items to Bid, Bid Results on Civil
Works, Goods and Services, and Abstract of Bids as Calculated.

The timely and regular disclosure of local fiscal matters ensures the
public that the public money is well spent on public service.
Transparency reduces unfounded and biased criticisms by skeptics,
and gradually builds and strengthens public trust and confidence


by the people to their local leaders, an essential centerpiece of good
governance.

In view of the foregoing the urgent passage of the proposed
measure is earnestly sought.



Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City, Metro Manila

FIFTEENTH CONGRESS
Second Regular Session

House Bill No. $626

Introduced by HON. JOSEPH EMILIO AGUINALDO
ABAYA

AN ACT REQUIRING FULL DISCLOSURE OF PUBLIC
DOCUMENTS FROM ALL NATIONAL GOVERNMENT
DEPARTMENTS, BUREAUS, AGENCIES AND ALL OTHER
INSTRUMENTALITIES, INCLUDING GOVERNMENT-OWNED OR
CONTROLLED CORPORATIONS, AND THEIR SUBSIDIARIES, AND
LOCAL GOVERNMENTS, AND PROVIDING PENALTIES FOR
VIOLATIONS THEREOF AND FOR OTHER PURPOSES

Be it enacted by the Senate and the House of Representatives of the
Philippines on Congress assembled:

Section 1. Short Title. This Act shall be known as “Full Disclosure Act
of 2011"

Section 2. Declaration of Policy. It is hereby declared the policy of
the State to ensure transparency and accountability in public service
among its public officers and employees. Likewise, the State
recognizes and upholds public office as a public trust. Towards this
end, the State shall maintain honesty and integrity in the public service
and take positive and effective measures against graft and corruption;
and adopt and implement a policy of full public disclosure of all its
transactions involving public interest, subject to reasonable conditions
prescribed by law

Section 3. Definition of Terms. For the purposes of this Act, the
following terms shall be defined as follows:


(a) Abstract of Bids as Calculated refers to information detail to the
level of project name, location, implementing office, approved
budget for the contract, quantity and items subject for bidding,
and bids of competing bidders, to be updated:

(b) Annual Budget refers to information detail to the level of
particulars of personal services, maintenance and other
operating expenses and capital outlay per individual offices;

(c) Annual Procurement Plan or Procurement List refers to
information detail to the level of name of project, individual item
or article and specification or description of goods and services,
procurement method, procuring office or fund source, unit price
or estimated cost or approved budget for the contract and
procurement schedule;

(d) Bid Results on Civil Works, and Goods and Services refers to
information detail to the level of project reference number, name
and location of project, name (company and proprietor) and
address of winning bidder, bid amount, approved budget for the
contract, bidding date, and contract duration, to be updated
quarterly;

(e) Conspicuous places refer to areas that are easy to notice and
are accessible to the public;

(f) Disclosure refers to the act of publishing relevant documents
pertaining to budget, finances, and bids and public offerings, for
purposes of transparency and accountability;

(g) items to Bid refers to information detail to the level of individual
Invitation to Bid, containing information as prescribed in Section
21.1 of Republic Act No. 9184 or The Government Procurement
Reform Act, to be updated quarterly;

(h) Special Education Fund Utilization refers to information detail to
the level of particulars of object expenditures;

(i) Statement of Debt Service refers to information detail to the
level of name of creditor, purpose of loan, date contracted, term,
principal amount, previous payment made on the principal and
interest, amount due for the budget year and balance of the
principal;


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() Statement of Receipts and Expenditures refers to information
detail to the level of particulars of beginning cash balance,
receipts or income on local sources (e.g., tax revenue, non-tax
revenue), external sources, and receipts from loans and
borrowings, surplus prior years, expenditures on general
services, economic services, social services and debt services,
and total expenditures;

(k) Trust Fund (PDAF) Utilization refers to information detail to the
level of particulars of object expenditures;

() 20% Component of the IRA Utilization refers to information
detail to the level of particulars of objects of expenditure on
social development, economic development and environmental
management,

(m)Local Disaster Risk Reduction Management Fund refers to the
amount not less than five percent (5%) of the estimated revenue
from regular sources,set aside to support disaster risk reduction
and management activities;

(n) Trial Balance refers to a document which shows the equality of
debit and credit balances of all general ledger accounts as of a
given period; and

(0) Financial Statements refers to the following: Balance Sheet,
Statement of Income and Expenses, and Statement of Cash
Flows.

Section 4. Coverage. This Act shall cover all National Government
departments, bureaus, agencies and all other instrumentalities,
including government-owned or controlled corporations, and their
subsidiaries, and local governments.

Section 5. Disclosure of Public Documents.

(a) All National Government departments, bureaus, agencies and
all other instrumentalities are hereby mandated to disclosure
the following documents:

(i) Abstract of Bids as Calculated

(ii), Annual Budget

(ii) Annual Procurement Plan or Procurement List

(iv) Bid Results on Civil Works, and Goods and Services


(v) Items to Bid

(b) All Local Governments are hereby mandated to disclosure the

following documents:

(). Abstract of Bids as Calculated

(i) Annual Budget

(iii) Annual Procurement Plan or Procurement List
(iv) Bid Results on Civil Works, and Goods and Services

(v) Items to Bid

(vi) Special Education Fund Utilization
(vii) Statement of Debt Service

(viii) Statement of Receipts and Expenditures

(ix) Trust Fund (PDAF) Utilization

(x) 20% Component of the IRA Utilization

(xi) Local Disaster Risk Reduction and Management Fund

(xii) Trial Balance

(xiii) Financial Statements

(©) All Government Owned

and Controlled Corporations are

hereby mandated to disclosure all financial documents and

transactions.

Section 6. Posting of Public Documents and Financial

Transactions. All

public documents and financial transactions,

‘specified in Section 5 of this Act, shall be posted in conspicuous places
within public buildings, print media of general circulation, and in

wel

bsites.

Section 7. Frequency of Posting. All documents specified by Section
5 of this Act shall be posted on the dates hereunder.

Type of Report —

Start of Posting

Frequency
| of Posting

‘On or before January 20 of each year or
not later than 20 days after the approval
of the Local Sanggunian

‘Annual

2. Statement of Debt Service

20 days after the approval of Local Chief
Executive (LCE) of the Statement of
Debt Service Annual Report

Annual

3. Statement of Receipts and
Expenditures

20 days after the approval of the Local
Chief Executive of the Statement of
Receipts and Expenditures Annual
Report

Annual



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4, Quarterly Statement of Cash
Flow

Within 20 days affer the end of every
quarter

Quarterly

[5. Trial Balance:

‘On or before June 30 of each year_

Annual

[6 Financial Statement

‘On of before June 30 of each year

‘Annual

B. Procurement Reports _

1. Annual Procurement Plan or
Procurement List

‘On or before January 31 of each year

Annual

2. Items to Bid

Within the prescribed period under the
Government Procurement Reform Act
and its IRR, and to be updated quarterly

Quarterly

3. Bid Results on Civil Works,
Goods and Services, and
Consulting Services

Within the prescribed period under the
Government Procurement Reform Act
and its IRR, and to be updated quarterly _

Quarterly

4. Abstract of Bids
Calculated

as

Within the prescribed period under the
Government Procurement Reform Act
and its IRR, and to be updated quarterly

Quarterly

| 5.Supplemental ~ Procurement

lan, if any

Not later than 20 days after the approval
by the Head of Procuring Unit

Monthly

| C. Special Purpose Fund Reports

1. SEF Income and Expenditure
Estimates

20 days after the approval by the Local
‘School Board of the SEF Income and
Expenditure Annual Report

‘Annual

2. Report of SEF Utilization

20 days after the end of each quarter

Quarterly

3. Annual GAD Accomplishment
Report

Not later than the end of January of the
ensuing year

‘Annual

[4 Trust Fund (PDAF) Utilization

20 days after the end of each quarter

Quarterly

[5.20% Component of the IRA
| Utilization

20 days after the end of each quarter

Quarterly

6. Report of Local Disaster Risk
Reduction and Management
Fund (LDRRMF) Utilization

20 days after the end of each quarter

Quarterly

Section 8. Penalty. All heads of the departments, bureaus, agencies,

and local chief executives covered

by Section 4 of this Act shall be held

accountable. Violation of this Act shall be penalized by a fine
amounting to five hundred thousand pesos (Php 500, 000.00).

Section 9. Oversight Committee.

The oversight committee, tasked to

supervise and monitor the adherence to the provisions herein of those
covered by this Act, shall be composed of: the Executive Secretary; the
Secretary of the Department of Budget and Management (DBM); the
Secretary of the Department of Interior and Local Government (DILG);
and the Secretary of the Department of Finance (DOF).



Section 10. Implementing Rules and Regulations. Within sixty (60)
days from the effectivity of this Act, the necessary rules and
regulations, shall be formulated and promulgated by the Oversight
Committee

Section 11. Separability Clause. If any provision of this Act or the
application of such provision to any person or circumstance is declared
invalid or unconstitutional, the remainder of the Act or the application of
such provision to other persons or circumstances shall remain valid
and subsisting.

Section 12. Repealing Clause. All laws, presidential decrees or
issuances, executive orders, letters of instruction, administrative
orders, rules and regulations contrary to or inconsistent with the
provisions of this Act are hereby repealed or modified accordingly.

Section 13. Effectivity. This Act shall take effect fifteen (15) days
after its complete publication in at least two (2) newspapers of general
circulation.

Approved.