HOUSE OF REPRESENTATIVES
Quezon City, Metro Manila

SIXTEENTH CONGRESS
SECOND REGULAR SESSION

HOUSE BILL NO. _523 8

Introduced by CIBAC Party List Representatives
Sherwin N. Tugna and Cinchona Cruz-Gonzales

AN ACT AMENDING REPUBLIC ACT NO. 3019, ALSO KNOWN AS “THE ANTI-
GRAFT AND CORRUPT PRACTICES ACT”, TO CRIMINALIZE GRAFT AND
CORRUPT PRACTICES IN THE PRIVATE SECTOR, AND FOR OTHER
PURPOSES

EXPLANATORY NOTE

The evils of graft and corruption have always plagued both the public and private
sectors of our society in the Philippines, “Graft and corruption in our society weakens our
democracy and the integrity of our various institutions, leads to violations of human rights,
distorts markets, prevents the proper delivery of basic services to the people, increases
inequality and injustice in the society and allows organized crime, terrorism and other threats
to human security to flourish.”'

In order to address this problem, the United Nations adopted an instrument to addres
globally the problem of graft and corruption. The United Nations Convention Against
Corruption (UNCAC) provides the clear message that the international community is
determined to prevent and control corruption.

Article 21 of UNCAC particularly states:

Each State Party shall consider adopting such legislative and other measures
as may be necessary to establish as criminal offences, when committed
intentionally in the course of economic, financial or commercial activities:

(@ The promise, offering or giving, directly or indirectly, of an undue
advantage to any person who directs or works, in any capacity, for a private
sector entity, for the person himself or herself or for another person, in order
that he or she, in breach of his or her duties, act or refrain from acting;

(6) The solicitation or acceptance, directly or indirectly, of an undue
advantage by any person who directs or works, in any capacity, for a private
sector entity, for the person himself or herself or for another person, in order
that he or she, in breach of his or her duties, act ot refrain from acting,

'Kofi A. Annan, Foreword of UN Secretary General in the United Nations Convention Against

Corruption (UNCAC) which was signed by the Philippines in November 2006.



The Philippines currently has no laws that specifically penalize corruption in the
private sector. Corruption has always been associated with the government. People always
see that corruption is only prevalent in government offices, agencies and departments. Public
officials are the ones who abuse their power and position to gain advantage. However, it is
forgotten that graft and corruption is not limited in the government sector. Graft and
corruption occurs and thrives because of the consciousness of the people engage in it, and the
people who allow it to occur just because everyone is involved in it, Many Filipinos have
been born during times when graft and corruption has already been prevalent in the society.
When government officials are being prosecuted for committing graft and corruption, many
would say “eh sino ba ang di gumagawa?” Such remark shows that the Philippine society
recognizes the existence of graft and corruption and somehow has accepted it already. ‘Thus,
this reality results to lack of political and moral will of all Filipinos comprising our nation to
fight graft and corruption.

Graft and corruption occurs in private sector as well. It is a reality that people use
money, position, or any advantage as an inducement or reward in order to get what they want.
These activities are considered forms of graft and corruption. In line with the thrust of
UNCAC, now is the right time to amend R.A. 3019 or the “Anti-Graft and Corrupt Practices
Act” to include a provision that will penalize corruption in the private sector. In doing this, a
clear message is being sent out that graft and corruption is prohibited in any sector of the
society. All Filipinos are part of the fight against graft and corruption.

Furthermore, there is a need to increase the fines and penalties for violations of Ant-
Graft and Corrupt Practices Act in order to deter people from committing such acts. The
period before acts committed in violation of R.A. No. 3019 prescribe must be lengthened to
ensure that the violators could not escape the consequences of their illegal acts by flecing or
hiding for a long period of time. Also, a provision stating that when the violator is not within
the Philippines, the prescription of the crime committed does not run.

Lastly, there is a need for all heads of government offices, agencies, departments as
well as heads of corporations and businesses to make reports showing advantages received
which are allowed and permitted under this law and to enable the Office of the Ombudsman
to inspect, copy and reproduce such reports for reference, conduct of studies and adoption of
other measures for corruption prevention.

In view of the foregoing, immediate passage of the bill is earnestly sought.

a” (ibrreb
ep.) Sherwin N, Tugna Rep. Cinchona CruzGonzales
CIBAC Party-List CIBAC Party-List



HOUSE OF REPRESENTATIVES
Quezon City, Metro Manila

SIXTEENTH CONGRESS
COND REGULAR

Introduced

Sherwin N. Tugna and Cincl
AN ACT AMENDING REPUBLIC ACT NO. 3019, ALSO KNOWN AS THE “ANTI-
GRAFT AND CORR' PRACTICES AC
CORRUPT PRACT! IN THE PRIVAT
PURPOSE!

SECTOR, AND FOR OTHER

Be it enacted by the Senate and House of Representatives of the Philippines in Congress
assembled.

1 SECTION 1, Section 1 of R.A. No. 3019, as amended, is hereby amended to read as follows:

2 Section 1. Statement of policy. It is the policy of the Philippine Government,
3 in line with the principle that a public office is a public trust, to repress certain
4 acts of public officers and private persons alike which constitute graft or
5 corrupt practices or which may lead thereto
6 THE PHILIPPINE GOVERNMENT ALSO RECOGNIZES THAT TO
7 FIGHT THE EVILS OF GRAFT AND CORRUPTION, ALL CITIZENS
8 MUST PARTICIPATE AND TAKE PART IN IT. CONSEQUENTLY,
9 GRAFT AND CORRUPT PRACTICES OR ANY ACT WHICH MAY

10 LEAD THERETO OCCURRING IN THE PRIVATE SECTOR AND ONLY

uw BETWEEN AND AMONG PERSONS WORKING FOR AND

2 TRANSACTING WITH THE PRIVATE SECTOR MUST BE REPRESSED

B AND PENALIZED.

14 SECTION 2. Section 2 of R.A. No. 3019, as amended, is hereby amended to read as follows

15 Section 2. Definition of terms. As used in this Act, that term

16 (A) “ADVANTAGE” MEANS-

7 () ANY GIFT, LOAN, FEE, REWARD OR COMMISSION
18 CONSISTING OF MONEY OR OF ANY VALUABLE SECURITY
19 OR OF OTHER PROPERTY OR INTEREST IN PROPERTY OF
20 ANY DESCRIPTION;

21 (I) ANY OFFICE, EMPLOYMENT OR CONTRACT;

22 (lll) ANY PAYMENT, RELEASE, DISCHARGE OR
23 LIQUIDATION OF ANY LOAN, OBLIGATION OR OTHER

24 LIABILITY, WHETHER IN WHOLE OR IN PART:


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(IV) ANY OTHER SERVICE, OR FAVOUR (OTHER THAN
ENTERTAINMENT), INCLUDING PROTECTION FROM ANY
PENALTY OR DISABILITY INCURRED OR APPREHENDED OR
FROM ANY ACTION OR PROCEEDINGS OF A DISCIPLINARY,
CIVIL OR CRIMINAL NATURE, WHETHER OR NOT ALREADY
INSTITUTED;

(V) THE EXERCISE OR FORBEARANCE FROM THE EXERCISE
OF ANY RIGHT OR ANY POWER OR DUTY; AND

(VD) ANY OFFER, UNDERTAKING OR PROMISE, WHETHER
CONDITIONAL OR UNCONDITIONAL, OF ANY ADVANTAGE
WITHIN THE MEANING OF ANY OF THE PRECEDING
PARAGRAPHS (I), (ID, (II), (IV) AND (V), BUT DOES NOT
INCLUDE AN ELECTION CONTRIBUTION WITHIN THE
MEANING OF THE OMNIBUS ELECTION CODE;

(B) “AGENT” INCLUDES ANY PERSON EMPLOYED BY OR ACTING
FOR ANOTHER.

(C) "ENTERTAINMENT" MEANS THE PROVISION OF FOOD OR
DRINK, FOR CONSUMPTION ON THE OCCASION WHEN IT IS
PROVIDED, AND OF ANY OTHER ‘AINMENT CONN:
WITH, OR PROVIDED AT THE SAME TIME AS SUCH PROVISIONS

(D)(a) "Government" includes the national government, the local
governments, the government-owned and government-controlled corporations,
and all other instrumentalities or agencies of the Republic of the Philippines
and their branches.

(E) “INDIVIDUAL” INCLUDES
WITH THE PUBLIC OFFICER OR THE PRIVAT
WITH VIOLATION OF SECTION 7 OF THIS ACT.

(F)(4) "Person" includes natural and juridical persons, unless the context
indicates otherwise

(G) "PRINCIPAL" INCLUDE!
(1) AN EMPLOYER;
(Il) A BENEFICIARY UNDER A TRUST;
(II) A TRUST ESTATE AS THOUGH IT WERE A PERSON;

(IV) ANY PERSON BENEFICIALLY INTERESTED IN THE
ESTATE OF A DECEASED PERSON;

(V) THE ESTATE OF A DECEASED PERSON AS THOUGH IT
WERE A PERSON; AND


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(VD IN THE CASE OF AN EMPLOYEE OF THE GOVERNMENT,
THE HEAD OF THE OFFICE, AGENCY OR DEPARTMENT

CONCERNED.
(H)() "Public officer" [ineludes—eleotive—and—appointive—officials—and
ployees-p emporary,-whether-in-the-classified-or-unelassified
xeMpl Servi evi pensation, —eve sf
gover defined: he—preeeding—subj CLUDES,

ELECTIVE AND APPOINTIVE OFFICIALS AND EMPLOYEES,
PERMANENT OR TEMPORARY, WHETHER IN THE CAREER OR
NON-CAREER SERVI INCLUDING MILITARY AND POLICE
PERSONNEL, WHETHER OR NOT THEY RECEIVE COMPENSATION,
REGARDLESS OF AMOUNT.

(Dfe) “Receiving any ADVANTAGE(gi8}" includes the act of accepting
directly or indirectly AN ADVANTAGE [a-gif} from a person other than a
member of the public officer's OR INDIVIDUALS immediate family, in
behalf of himself or of any member of his family or relative within the fourth
civil degree, either by consanguinity or affinity, even on the occasion of a
family celebration or national festivity like Christmas, if the ADVANTAGE
1S NOT ALLOWED UNDER SECTION 7 OF THIS ACT[value-of the-gH¢4s
under the eivcumstances- manifest

SECTION 3. A new section 7 must be added which reads:

SECTION 7. CORRUPTION BY PRIVATE PERSONS. THE FOLLOWING
SHALL BE LIABLE FOR AN OFFENSE

(A) ANY AGENT WHO, WITHOUT REASONABLE EXCUSE, SOLICITS
OR ACCEPTS ANY ADVANTAGE AS AN INDUCEMENT TO OR
REWARD FOR OR OTHERWISE ON ACCOUNT OF HIS-

(1) DOING OR FORBEARING TO DO, OR HAVING DONE OR
FORBORNE TO DO, ANY ACT IN RELATION TO HIS
PRINCIPAL'S AFFAIRS OR BUSINESS; OR

(Il) SHOWING OR FORBEARING TO SHOW, OR HAVING
SHOWN OR FORBORNE TO SHOW, FAVOUR OR DISFAVOUR
TO ANY PERSON IN RELATION TO HIS PRINCIPAL'S AFFAIRS.
OR BUSINESS, SHALL BE GUILTY OF AN OFFENCE.

(B) ANY PERSON WHO, WITHOUT REASONABLE EXCUSE, OFF ERS
ANY ADVANTAGE TO ANY AGENT AS AN INDUCEMENT TO OR
REWARD FOR OR OTHERWISE ON ACCOUNT OF THE AGENT'S-

(1) DOING OR FORBEARING TO DO, OR HAVING DONE OR
FORBORNE TO DO, ANY ACT IN RELATION TO HIS
PRINCIPAL'S AFFAIRS OR BUSINESS; OR


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(Il) SHOWING OR FORBEARING TO SHOW, OR HAVING
SHOWN OR FORBORNE TO SHOW, FAVOUR OR DISFAVOUR
TO ANY PERSON IN RELATION TO HIS PRINCIPAL'S AFFAIRS,
OR BUSINESS, SHALL BE GUILTY OF AN OFFENCE.

(C) ANY AGENT WHO, WITH INTENT TO DECEIVE HIS PRINCIPAL,
USES ANY RECEIPT, ACCOUNT OR OTHER DOCUMENT-

(1) IN RESPECT OF WHICH THE PRINCIPAL IS INTERESTED;
AND

(I) WHICH CONTAINS ANY STATEMENT WHICH IS FALSE OR
ERRONEOUS OR DEFECTIVE IN ANY MATERIAL.
PARTICULAR; AND

(Il) WHICH TO HIS KNOWLEDGE IS INTENDED TO MISLEAD
THE PRINCIPAL, SHALL BE GUILTY OF AN OFFENCE.

(D) IF AN AGENT ACCEPTS AN ADVANTAGE, NEITHER HE NOR
THE PERSON WHO OFFERED THE ADVANTAGE SHALL BE GUILTY
OF AN OFFENSE UNDER SECTION 7 (A) OR (B) IF:

() THE ACT IS DONE WITH THE PERMISSION OF HIS
PRINCIPAL, BEING PERMISSION WHICH COMPLIES WITH
SECTION 7(E) BELOW;

(Wl) THE ADVANTAGE IS UNSOLICITED;

(I) THE ADVANTAGE IS OF SMALL OR INSIGNIFICANT
VALUE AND OFFERED OR GIVEN AS A MERE ORDINARY
TOKEN OF GRATITUDE OR FRIENDSHIP ACCORDING TO
LOCAL CUSTOMS OR USAGE

(E) FOR THE PURPOSES OF SECTION 7(D) PERMISSION SHALL-

(1) BE GIVEN BEFORE THE ADVANTAGE IS OFFERED OR
ACCEPTED; OR

(l) IN ANY CASE WHERE AN ADVANTAGE HAS BEEN
OFFERED OR ACCEPTED WITHOUT PRIOR PERMISSION, BE
APPLIED FOR AND GIVEN AS SOON AS REASONABLY
POSSIBLE AFTER SUCH OFFER OR ACCEPTANCE,

AND FOR SUCH PERMISSION TO BE EFFECTIVE FOR THE
PURPOSES OF SECTION 7(D), THE PRINCIPAL SHALL,
BEFORE GIVING SUCH PERMISSION, HAVE REGARD TO THE
CIRCUMSTANCES IN WHICH IT IS SOUGHT.

SECTION 4. All provisions using the term “gift” shall be accordingly amended to use the
term “advantage” instead as defined herein.


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SECTION 5. Sections 7, 8, and 9 must be renumbered as Sections 8, 9, and 10 respectively.
SECTION 6. Section 9 of R.A. No. 3019, as amended, is hereby amended to read as follows:

Section 9. Penalties for violations. (a) Any public officer or private person
committing any of the unlawful acts or omissions enumerated in Sections 3, 4,
5 and 6 of this Act shall be punished with imprisonment for not less than six
(6) years and one (1) month but not nor more than fifteen (15) years AND A
FINE OF NOT LESS THAN FIVE HUNDRED THOUSAND PESOS NOR
MORE THAN ONE MILLION PESOS, perpetual disqualification from public
office, and confiscation or forfeiture in favor of the Government of any
prohibited interest and unexplained wealth manifestly out of proportion to his
salary and other lawful income.

Any complaining party at whose complaint the criminal prosecution was
initiated shall, in case of conviction of the accused, be entitled to recover in
the criminal action with priority over the forfeiture in favor of the
Government, the amount of money or the thing he may have given to the
accused, or the value of such thing,

(B) ANY PRIVATE PERSON COMMITTING THE ACTS MENTIONED IN
SECTION 7 SHALL BE PUNISHED WITH IMPRISONMENT FOR NOT
LESS THAN SIX (6) YEARS AND ONE (1) MONTH BUT NOT MORE
THAN FIFTEEN (15) YEARS AND A FINE NOT LESS THAN FIVE
HUNDRED THOUSAND PESOS NOR MORE THAN ONE MILLION
PESOS, AND PAYMENT OF DAMAGES TO PERSONS PREJUDICED BY
THE ACTS COMMITTED.

(Cb) Any public officer in violation of any of the provisions of Section 8[7} of
this Act shall be punished by a fine of not less than THIRTY PERCENT NOR
MORE THAN SIXTY PERCENT OF HIS ANNUAL INCOME [one-hundred
pesos-ner-more-than-one-thousand-pesos}, or by imprisonment not exceeding,
‘one year and six months, or by both such fine and imprisonment, at the
discretion of the Court.

The violation of said section proven in a proper admir
shall be sufficient cause for removal or dismissal of a publ
criminal prosecution is instituted against him,

trative proceeding
officer, even if no

SECTION 7. Sections 10, 11, 12, 13 and 14 must be renumbered as Sections 11, 12, 13, 14
and 15 respectively.

SECTION 8. Section 14 of R.A. No. 3019, as amended, is hereby amended to read as
follows:

Section 14. Exception. Unsolicited ADVANTAGE {gif} oof small or
insignificant value offered or given as a mere ordinary token of gratitude or
friendship according to local customs or usage, shall be excepted from the
provisions of this Act PROVIDED THAT THE ADVANTAGE IS GIVEN
OR RECEIVED UNDER CONDITIONS MENTIONED IN SECTION 7(D)


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AND THE PERMISSION OF THE PRINCIPAL IS OBTAINED UNDER
THE FOLLOWING CIRCUMSTANCES MENTIONED IN SECTION 7 (E).

Nothing in this Act shall be interpreted to prejudice or prohibit the practice of
any profession, lawful trade or occupation by any private person or by any
public officer who under the law may legitimately practice his profession,
trade or occupation, during his incumbency, except where the practice of such
profession, trade or occupation involves conspiracy with any other person or
public official to commit any of the violations penalized in this Act.

SECTION 9. A new section 15 must be added which reads:

SECTION 15. ALL HEADS OF GOVERNMENT OFFICES, AGENCIES,
DEPARTMENTS AS WELL AS HEADS OF CORPORATIONS AND
BUSINESSES, OR OF THEIR APPLICABLE DEPARTMENTS OR
OFFICES MUST MAKE AVAILABLE REPORTS OF ADVANTAGES
RECEIVED AND PERMITTED UNDER THIS LAW. THE REPORTS
MUST PROVIDE THE PARTICULAR DETAILS OF THE ADVANTAGE
RECEIVED INCLUDING BUT NOT LIMITED TO WHO ARE THE
PERSONS WHO GAVE THE ADVANTAGE, WHAT IS THE PECUNIARY
AMOUNT OF THE ADVANTAGES RECEIVED, REASON FOR THE
RECEIPT OF THE ADVANTAGES. THE REPORTS MUST BE
REDUCED IN TABULAR FORMS EVERY QUARTER FOR EASY
REFERENCE. THE INFORMATION OBTAINED BY HEADS OF
GOVERNMENT OFFICES, AGENCIES, DEPARTMENTS AS WELL AS
HEADS OF CORPORATIONS AND BUSINESSES, OR OF THEIR
APPLICABLE DEPARTMENTS OR OFFICES MUST BE KEPT FOR FIVE
(5) YEARS.

THE REPORTS SHALL BE MADE AVAILABLE FOR INSPECTION,
COPYING, REPRODUCTION BY THE OFFICE OF OMBUDSMAN AT
REGULAR WORKING HOURS ON REGULAR BUSINESS DAYS.

SECTION 10. Separability Clause. - If any provision of this Act is declared invalid, the other
provisions not affected thereby shall remain valid.

Section 11, Repealing Clause. - All laws, proclamations, executive orders, rules and
regulations or parts thereof inconsistent with this Act are hereby repealed, modified or
amended accordingly: Provided, That no person shall be deemed to be vested with any
property or other right by virtue of the enactment or operation of this Act.

Section 12. Effectivity Clause. - This Act shall take effect fifteen (15) days after its complete
publication in the Official Gazette or in at least two (2) national newspapers of general
circulation whichever comes eatlier.

Approved,