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THIRTEENTH CONGRESS OF THE 
) 
First Regular Session 
) 
Republic of the Philippines) 
Introduced by SENATOR LUISA "LOI" P. EJERCITO ESTRADA 
. 
EXPLANATORY NOTE 
It is the avowed principle of Republic Act No. 6713 
that the State shall promote a high standard of ethics in 
public service. 
Public officials and employees shall, at 
all times, be accountable to the people and shall discharge 
their 
duties 
with 
utmost 
responsibility, 
integrity, 
competence and loyalty, act with patriotism and justice, 
lead modest lives, and uphold public interest over personal 
interest (Section 2, R.A. No. 6713). 
Pursuant to this policy, this bill seeks to expand the 
prohibited acts and transactions provided in Section 7 (b) 
thereof, by providing for a specific provision exclusively 
applicable to members of the Cabinet. By virtue of the 
doctrine of qualified political agency, a member of the 
cabinet is considered as the alter ego of the President. As 
such, they 
acquire 
vital 
information 
not 
otherwise 
available to others, 
This fact makes them very attractive 
,to foreign corporations, who are all too eager to retain 
them as their consultants after their stint with the 
government. Thus, in order to dispel any doubt that they 
take advantage of information derived by virtue of their 
Cabinet position, they should be prohibited from employment 
by foreign corporations doing business in the Philippines 
for a period of five ( 5 )  years. 
By prohibiting their employment f o r  a period of five 
(5) years, there is the assurance that there will be no 
transfer of privileged information acquired by the Cabinet 
member during his stint as public servant to his new 
employer. This is in consonance with the public servant's 
mandate that utmost loyalty is required of him, because 
do otherwise is detrimental to national interest. 
In view of the foregoing, approval of this bill 
earnestly requested. 
- 
to 
is 
LUISA "LO1 \9. EJERCITO ESTMDA 
Senator 


,/' 
THIRTEENTH CONGRESS O F  THE 
1 
Republic of the Philippines) 
First Regular Session 
1 
SENATE 
" I  . , 
7 6 ; q  
, '  i 
S.B. NO. 
L-L 
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Introduced by SENATOR LUISA "LOI" P. EJERCITO ESTRADA 
AN ACT 
AMENDING SECTION 7 (b) OF REPUBLIC ACT NO. 6713, OTHERWISE 
KNOWN AS THE CODE OF CONDUCT AND 
ETHICAL STANDARDS FOR 
PUBLIC OFFICIALS AND 
EMPLOYEES, SO AS TO LENGTHEN THE 
PERIOD OF PROHIBITED EMPLOYMENT IN THE CASE OF MEMBERS O F  
THE CABINET 
Be it enacted by the Senate and the House of 
Representatives of the Philippines in Congress assembled: 
Section 1. 
Section 7, subparagraph (b) of Republic 
Act No. 6713 is hereby amended to read as follows: 
Section 7. 
Prohibited Acts and Transactions. - 
In addition to acts and omission of public officials 
and employees now prescribed in the Constitution and 
existing 
laws, 
the 
following 
shall 
constitute 
prohibited 
acts 
and 
transactions of 
any public 
official and employee and are hereby declared to be 
unlawful : 
(a) xxxxx 
(b) Outside employment and 
other activities 
related 
thereto. 
Public 
officials 
and 
employees during their incumbency shall not: 
(1) Own, 
control, 
manage 
or 
accept 
emp 1 oyment 
as 
officer, 
employee , 
consultant, counsel, broker, 
agent, 
trustee or nominee in any private 
enterprise 
regulated, supervised or 
licensed 
by 
their 
office 
unless 
expressly allowed by law; 
( 2 )  
Engage in the private practice of their 
profession unless authorized by the 


, 
Constitution or law, Provided, 
That 
such practice will not conflict or tend 
to 
conflict 
with 
their 
official 
functions; or 
(3) Recommend any person to any position in 
a private enterprise, which has a 
regular , 
or 
pending 
official 
transaction with their office. 
These prohibitions shall continue to apply for a 
period of one (1) year after resignation, retirement or 
separation from public office, except in the case of 
subparagraph (b) (2) above, but the professional concerned 
cannot practice his profession in connection with any 
matter before the office he used to be with, in which case 
the one-year prohibition shall likewise apply: PROVIDED, 
THAT IN THE CASE OF MEMBERS OF 
THE CABINET, THE 
PROHIBITION 
FOR EMPLOYMENT 
IN 
ANY 
PRIVATE 
ENTERPRISE 
SHALL 
INCLUDE EMPLOYMENT 
WITH 
FOREIGN CORPORATIONS DOING BUSINESS IN THE PHILIPPINES AND 
THE PROHIBITION SHALL BE FOR A PERIOD OF FIVE (5) YEARS 
FROM THE DATE OF RESIGNATION, RETIREMENT OR SEPARATION FROM 
SAID PUBLIC OFFICE: 
PROVIDED, FURTHER, THAT AS USED 
HEREIN, THE TERM EMPLOYMENT SHALL MEAN HIRING SUCH PERSON. 
Sec. 2. Repealing Clause. - All laws, orders, rules 
and regulations which are inconsistent with or contrary to 
the provisions of this Act are hereby amended or repealed 
accordingly. 
Sec. . 3. Effectivity Clause. - This Act shall take 
effect fifteen (15) days after its publication in two (2) 
newspapers of general circulation. 
Approved, 
C:\precy\code of conduct2123