. 
2 
U -2 
A8:39 
THIRTEENTH CONGRESS OF THE REPUBLIC 
1 
OF THE PHILIPPINES 
) 
First Regular Session 
1 
~~~~~~~~~ 
8 
S E N A T E  
S. No. 
Introduced by Senator Biazon 
Explanatory Note 
This proposed measure is about the responsibility of the government of paying 
arrears in the pensions of our veterans. From 1994 to 1998, the government owed the 
veterans a total amount of P10.9 billion in arrears. This bill seeks to address this 
problem and at the same time demonstrate the government‘s sincerity in caring for our 
veterans through the issuance of “Certificates of Indebtedness” which can be used by 
the veterans as payments for goods and services from the government. It is hoped that 
through this measure the government will be able to fulfill its responsibility to the 
veterans in a manner that would not be too ”heavy in the pocket”, so to speak, due to its 
staggered nature. 
It is a fact that in the past when the country needed them, these veterans did not 
think twice in serving the country. They have sacrificed much in defense of the State 
and our treasured freedom - bleeding and suffering, enduring the pain and loneliness of 
being away from their families and losing lives among their ranks. 
The urgency of this measure needs no further elaboration, for the heroism, 
sacrifices, age, health and economic conditions of the veterans speak for themselves. 
The pension arrears have to be enjoyed now by the veterans, and also in the most 
convenient way possible for the government. 
In light of the foregoing, an urgent passage of this bill is earnestly requested. 
RODOLFO G. BIAZON 
Senator 


, 
THIRTEENTH CONGRESS OF THE REPUBLIC 
) 
First Regular Session 
) 
OF THE PHILIPPINES 
) 
TI4 aa -2 
A839 
S E N A T E  
AN ACT 
PROVIDING FOR THE PAYMENT THROUGH VETERANS BONDS OF ARREARS IN 
THE VETERANS PENSIONS MANDATED BY REPUBLIC ACT NO. 7696 AND FOR 
OTHERPURPOSES 
Be in acted by the Senate and House of Representatives of the Philippines in 
Congress assembled: 
SECTION ONE. Purpose. - The Treasurer of the Republic of the Philippines is 
hereby authorized to issue Certificates of Indebtedness in different series with annual 
maturity equivalent to twenty percent (20%) of the total government arrears in .the 
veterans pension as mandated by R.A. No. 7696, covering the amount to be paid every 
year during the consecutive years 1994 to 1999, respectively. The issuance of the 
certificates to individual qualified recipients shall be completed within a period of six (6) 
months and commencing thirty (30) days after the approval of this Act. 
SECTION 2. Nature. - The Certificate of Indebtedness shall earn a coupon rate 
based on the prevailing market interest rates at the time each series is issued and 
redeemable upon maturity date stipulated thereon. The Certificates of Indebtedness 
shall not be subject to impoundment by the Office of the President. 
SECTION 3. Usage. - The Certificate of Indebtedness shall be bearer-issued 
negotiable instruments to be accepted as payments for, but not limited to, the following 
goods and services such as: 
(a) Rice from the National Food Authority; 
(b) Real Estates Taxes; 
(c) Tuition and other school fees; 
(d) Amortization of housing loans; 
(e) Utility bills for power, water and telephone; 
(9 Hospital bills; 
(9) Shares of stocks in government-owned or controlled corporations under 
(h) Purchase or lease of farm lands; among others. 
privatization; and 
The Certificates of Indebtedness shall be accepted as eligible bank liquidity and 
SECTION 4. Procedures. - The Philippine Veterans Affairs Office (PVAO) is 
hereby mandated to submit immediately the list of eligible recipients for each year 
during the period $994 to 1999 to the Treasurer of the Philippines to determine the 
statutory reserves. 
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amount of the Certificate of Indebtedness to be issued to individual qualified recipient 
under each series. 
SECTION 5. Creation of the Sinking Fund. - The Philippine Veterans Bank is 
hereby designated as the agent of the Treasurer of the Philippines for the distribution 
and redemption of the Certificates of Indebtedness. For this purpose, the Treasurer of 
the Philippines shall establish annually a sinking fund equivalent to twenty percent 
(20%) of the total arrears, for the settlement or redemption of the Certificates of 
Indebtedness issued under each series upon maturity to be deposited in the said bank. 
Such sinking fund shall be managed by the Treasurer of the Philippines to earn at the 
rate necessary such that the fund shall at least equal the total face value of the 
outstanding and issued Certificates of Indebtedness. 
SECTION 6. Automatic Appropriations. - A standing annual appropriation is 
hereby made out of the General Funds in the National Treasury not otherwise 
appropriated for such sum as may be necessary to provide for the sinking fund created 
in the preceding section: Provided, that upon maturity of the Certificate of Indebtedness, 
the annual interest earned by such fund shall form part of the amount of arrears to be 
appropriated in accordance with section 4 hereof. The obligation to be entered in the 
books of accounts of the government by reason hereof shall be the face value of the 
issued and outstanding Certificates of Indebtedness. 
SECTION 7. Separability Clause. - If for any reason, any section or provision of 
this Act is declared unconstitutional or invalid, the other sections or provisions hereof 
which are not effected thereby, shall continue in full force and effect. 
SECTION 8. Repealing Clause. - All acts, decrees, orders, executive orders, 
instructions, rules, and regulations or parts thereof inconsistent with the provisions of 
this Act are repealed or modified accordingly. 
SECTION 9. Effectivity. -This Act shall take effect fifteen (15) days following its 
publication in the Official Gazette or at least two (2) national newspapers of general 
circulation. 
Approved. 
RODOLFO G. BlAZON 
Senator