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

Sixteenth Congress
First Regular Session

08
HOUSE BILL No.

Introduced by Rep. Reynaldo V. Umali

EXPLANATORY NOTE

‘The welfare, rights and interests of government owned and controlled
corporations, their subsidiaries, other corporate offsprings, including government
acquired asset corporations, government corporate entities and government
instrumentalities with corporate powers, government financial institutions, and
other government entities, agencies and offices (collectively called GOCC’s) have
always been of paramount importance. Their contribution to the country’s
economy has been very substantial in the last decade. The State, therefore is
interested in protecting these GOCC’s and in promoting their welfare.

Over the years, the Office of the Government Corporate Counsel (OGCC) has
been in the forefront in protecting the legal interests of these GOCC’s. Executive
Order 292 or the 1987 Administrative Code mandates this Office to serve as the
GOCC’s statutory counsel and principal law office. As such, the law requires the
OGCC to safeguard their client’s legal interests in a competent, speedy and
adequate manner consistent with its duty to uphold justice under the rule of law.

‘The steady increase in the number of these GOCCs lately has resulted in the
increase in the number of requests for legal advice and cases for representation in
courts and various tribunals being responded to and handled by the OGCC apart
from its performance of other functions.

To efficiently and effectively address the expanding needs of these GOCC’s,
there is, therefore a need to strengthen the OGCC by re-defining, expanding,
strengthening, rationalizing and further professionalizing it as an organization and
upgrading the service benefits available to its lawyers and personnel to make them
committed in providing excellent and professional service to the country.

For these reasons, the approval of this bill is earnestly sought.

[ALDO V. UMALI


Republic of the Philippines
HOUSE OF REPRESENTATIVES,
Quezon City

SIXTEENTH CONGRESS
First Regular Session

HOUSE BILL NO. 08

AN ACT
TO STRENGTHEN THE OFFICE OF THE GOVERNMENT CORPORATE
COUNSEL, BY RE-DEFINING, EXPANDING STRENGTHENING,
RATIONALIZING AND FURTHER PROFESSIONALIZING ITs
ORGANIZATION, UPGRADING EMPLOYEE BENEFITS AND
APPROPRIATING FUNDS THEREFOR

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

SECTION 1. Declaration of Policy. - It shall be the State’s policy to protect
and promote the welfare, rights and interests of government owned and controlled
corporations, their subsidiaries, other corporate offspring, including government
acquired asset corporations, government corporate entities and government
instrumentalities with corporate powers, government financial institutions, and
other government corporate entities, agencies and offices, referred here as GOCCs.

Toward this end, the State shall require the improvement of legal services in
the government to efficiently and effectively address the expanding needs of these
GOCCs in accordance with its initiative towards an improved fiscal management
and good corporate governance.

SEC. 2. Jurisdiction and Mandate. - (a) Any law to the contrary
notwithstanding, the office of the Government Corporate Counsel (OGCC) shall be
the legal counsel and principal law office of all GOCCs. All GOCCs shalll refer to the
OGCC the following:

(1) All legal questions for opinion and advice;


(2) Before their execution, all contracts for review; and,

(3) All cases for representation before regular courts, quasi-judicial bodies,
administrative agencies and arbitral tribunals, provided that, the Government
Corporate Counsel (“GCC”) may thereafter authorize the GOCCs' legal department
as collaborating counsel to handle cases, as the urgency or expediency of
circumstances may warrant.

(b) In addition, the OGCC shall perform the following special functions:

(1) conciliate, mediate, act as hearing officers or adjudicate all disputes or
controversies exclusively between GOCCs;

(2) Exercise control and supervision over the legal departments of all GOCCs;
(3) Approve the engagement of private lawyers by the GOCCs;

(4) Enforce the Property Insurance Law pursuant to Republic Act 656, as amended
by Presidential Decree 245, in domestic or international transactions;

(5) Be detailed or assigned to GOCCs upon their request: Provided, That the GCC
shall approve the assignment or designation, including attendance in meetings
requested by GOCCs;

(6) Investigate and, in appropriate cases, hear administrative disciplinary cases
involving all lawyers, officials and employees of GOCCs upon the latter's request
and recommend appropriate administrative or disciplinary sanctions;

(7) Conduct periodic performance audit of the in-house lawyers or legal departments
of the GOCCs and to recommend appropriate actions to GOCCs;

(8) Require the in-house lawyers or legal departments of GOCCs to submit periodic
reports of work performed and/or accomplished and to supervise and control the
necessary legal action;

(9) Conduct research and/or submit position papers on novel/important questions
or issues affecting GOCCs;

(10) Conduct fact-finding and preliminary investigation in appropriately referred
cases;

(11) Actas corporate officers of GOCCs upon their request;

(12) Be assigned as members of technical working groups, bids and awards
committee, tasks force and other committees in relation to GOCC projects;

(13) Represent the OGCC in the Board of GOCCs and management committees; and


such other additional works as may be required by GOCCs; and

The OGCC shall be an independent and autonomous office attached to the
Department of Justice for purposes of policy and program coordination. All opinions
and issuances of the OGCC shalll be binding on all GOCCs.

SEC. 3. Expansion, upgrading and creation of positions. - The GCC shall have
a cabinet rank and the same prerogatives, salary, allowances, benefits and privileges
as the Presiding Justice of the Court of Appeals. He/ She shall be assisted by a
Deputy Government Corporate Counsel (DGCC) and twelve (12) Assistant
Government Corporate Counsel (AGCC) who shall have the rank, salary,
allowances, retirement benefits and privileges of an Associate Justice of the Court of
Appeals.

No person shall be appointed GCC, DGCC or AGCC unless he/she is a
natural-born citizen of the Pilippines and, for at least fifteen (15) years, has been
engaged in the practice of law in the Philippines. The number, rank, qualifications
for appointment, salary, allowances, retirement and other benefits and privileges of
other members of the legal staff shall be as follows:

(a) Twenty (20) Government Corporate Attorney IV (GCA IV) who shall have the
rank, salary, allowances, retirement benefits and privileges of a Regional Trial Court
Judge. No person shall appointed GCA IV unless he/she is a natural-born citizen of
the Philippines and, for at least ten (10) years, has been engaged in the practice of
law in the Philippines;

(b) Twenty (20) Government Corporate Attorney III (GCA Ill) who shall have the
rank, salary, allowances, retirement benefits and privileges of a Metropolitan Trial
Court Judge. No person shall be appointed GCA III unless he/she is a natural-born
citizen of the Philippines and, for at least five (5) years, has been engaged in the
practice of law in the Philippines;

() Twenty (20) Government Corporate Attorney II (GCA II) who shall have the rank,
salary, allowances, retirement benefits and privileges of a Municipal Trial Court
Judge in Cities. No person shall be appointed GCA II unless he/she is a natural-born
citizen of the Philippines and, for at least five (5) years, has been engaged in the
practice of law in the Philippines;

(a) Twelve (12) Government Corporate Attorney I (GCA 1). No person shall be
appointed GCA I unless he/she is a natural-born citizen of the Philippines and, for
at least two (2) years, has been engaged in the practice of law in the Philippines;

(ce) Twelve (12) Legal Research Associate who must be law graduates;

The GCC, DGCC and AGCC shall be appointed by the President of the
Philippines. The other members of the legal staff and administrative personnel shall


be appointed by the GCC.

Appointments of the DGCC, AGCC and other members of the legal staff shall
be deemed permanent upon compliance with the prescribed qualification standards.

The administrative structure of the OGCC shalll be organized into the Finance
and Accounting Services, the Human Resources and Management Services, the Case
and Records Management Services, the Library Management and Information
Technology Services and the Property and Supply Services.

The legal and non-legal staff of the OGCC occupying the positions affected by
the changes embodied in this Act at the time of its approval shall thereafter occupy
and discharge the duties and functions of the upgraded positions and receive the
corresponding salary and benefits without necessity of new appointment.

SEC. 4. Compensation. - The basic monthly compensation of the OGCC
officials and employees shalll be as 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 II 7 28
Government Corporate Attorney I 26 7
Government Corporate Attorney I 25 26
Legal Research Associate 2 24

Except for the Legal Research Associate positions created under the foregoing
Section, all the other non-legal personnel shall have the same compensation as that of
their counterparts in the Office of the Solicitor General and Court of Appeals.

The salaries and privileges of the personnel of the OGCC granted under this
Act may further be increased to match any corresponding increase in salaries and
privileges subsequently granted to their respective counterparts in the Judiciary.

SEC. 5. Personnel benefits and privileges. - Provisions of other laws to the
contrary notwithstanding, the OGCC may provide its officials and employees the
following benefits:

1. Health care services through a health maintenance organization. Expenses for
the mandatory medical annual check-up of the GCC, the DGCC and the
AGCC shall be for the account of the OGCC;

2. Accident insurance for all officials and employees to be procured by the
OGCC at its own expense during travels while in the performance of the


official duties;

3. Without prejudice to the efficiency of the service, scholarships for the
deserving employees on official time and at the expense of the OGCC to
upgrade their knowledge and skills: Provided, That scholars under this
provision shall be selected on the basis of merit as determined by competitive
examination; and

4. A provident fund which shall consist of, but not be limited to contributions
made by the OGCC and by its lawyers and employees to a common fund for
the payment of benefits to such lawyers or employees or their respective
beneficiaries/heirs.

SEC. 6. Seminar and other Professional Fees. - Subject to availability of funds,
fees for relevant seminars, as well as professional membership fees for lawyers,
registration fees and related miscellaneous expenses incurred in completing the
mandatory continuing legal education shall be borne by the OGCC.

Professional membership, registration fees including those for mandatory
continuing professional education, and related miscellaneous expenses of other
employees holding positions for which a professional license is required by the
office, shall also be borne by the OGCC.

SEC. 7. Transportation Benefits. - Subject to availability of funds, employees
shall be provided with contracted transportation services until such time that the
OGCC can procure additional motor vehicles for this purpose.

SEC. 8. Other benefits. - Provisions of other laws to the contrary
notwithstanding, the legal staff of the OGCC are allowed to receive allowances and
honoraria from the GOCCs. Employees of the OGCC may likewise be extended such
benefits and privileges as are given to the employees of their clients.

When the exigency of the service so requires, any member of the legal staff
may be designated by the GCC to act in concurrent capacity as corporate officer of,
or assigned to perform special or additional tasks in, any of the GOCCs and by
virtue of such designation or assignment, receive such additional compensation and
privileges as may be granted them by the concerned GOCC.

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 GOCCs, in addition to the attorney's fees awarded by a court,
tribunal or panel, including awards/judgments, stipulated under court-approved
compromise agreements. The OGCC is hereby authorized to use such awards and
attorney's fees to meet contingencies, obligations and undertakings, or for employee


salaries, allowances, other benefits and incentives, necessary or proper to promote
efficiency in the service as determined by the GCC.

‘The GCC 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 GCC. In both cases, the
usual accounting and auditing procedures shall apply.

SEC. 10. Special Allowance. ~ The GCC, DGCC, AGCC and other members
of the legal staff may be granted special allowances in such amounts to be
determined by the GCC to implement the salary increase. The grant of special
allowances shall be implemented uniformly in such amounts and up to the extent
only that can be supported by the funding source specified in Section 11 hereof:
Provided, That such said special allowances shall not exceed One Hundred Percent
(100%) of their basic salary as provided under the Salary Standardization Law
(Republic Act 6758).

SEC. 11. Funding. - The funds required for the implementation of this Act
including additional employee benefits under Section 5 shall be taken from:

1. The twenty percent (20%) share of the money claims collected or awarded in
judgments in favor of GOCCs and all attorney’s fees authorized to be received
by the OGCC pursuant to this Act and Executive Order 292 or the Revised
Administrative Code of 1987;

2. Special Assessments made by the GCC upon GOCCs; and

3. Other revenues, savings, fees generated and collected and donations received
by the OGCC.

SEC. 12. Franking Privilege. - The OGCC may transmit through ordinary
mail and/or registered mail with return card, free of charge, all official
communications and papers directly connected with the conduct of its duties,
functions and /or its exercise of administrative supervision over its personnel.

‘The envelope or wrapper of the privileged mail matter shall bear on the left
upper corner “Office of Government Corporate Counsel” together with its address


and on the right upper corner, the word “Private or unauthorized use to avoid
payment of postage is penalized by fine or imprisonment or both.”

SEC. 13. Appropriations. - The amount needed for employees’ salaries,
mandatory allowances and benefits under other laws and office expenses and capital
outlay shall be appropriated in the budget of the OGCC under the annual General
Appropriations Act.

SEC. 14. Implementing Rules and Regulations. - Within sixty (60) days from
the approval of this Act, the GCC, in consultation with the Secretary of Justice and
Secretary of Budget and Management, shall promulgate such rules and regulations
as may be necessary to carry out the provisions of this Act.

SEC. 15. Repealing Clause. - Provisions of Executive Order 292 or the
Revised administrative Code of 1987, as amended, Executive Order 878 dated March
4, 1983, Presidential Decree 1415 dated June 9, 1978, Republic Act No. 6000 dated
August 4, 1969 and other pertinent laws, rules and regulations shall remain in force
and effect unless otherwise contrary or inconsistent with the provisions of this Act.

SEC. 16. Separability Clause. - If any of the Provisions of this Act is declared
invalid or unconstitutional, the provisions not affected thereby shall continue to be
in full force and effect.

SEC. 17. Effectivity. - This Act shall take effect after fifteen (15) days from its
publication in a national newspaper of general circulation.

Approved,