PRESIDENTIAL DECREE No.

969 July 24, 1976

AMENDING CERTAIN PROVISIONS OF PRESIDENTIAL DECREE NO. 960 WHICH AMENDED
ARTICLE 201 OF THE REVISED PENAL CODE AND FOR OTHER PURPOSES
I, FERDINAND E. MARCOS, President of the Philippines, by virtue of the powers in me vested by the
Constitution, do hereby decree and order:
Section 1. Sections 1 and 2 paragraph 1 of Section 4 of Presidential Decree No. 960 are hereby further
amended to read as follows:
"Sec. 1. Amendment of Article 201, Revised Penal Code. Article 201 of Act Numbered Thirty-Eight
hundred and fifteen, otherwise known as the Revised Penal Code, is amended to read as follows:
"Art. 201. Immoral doctrines, obscene publications and exhibition, and indecent shows. The penalty of
prision mayor or a fine ranging from six thousand to twelve thousand pesos, or both such imprisonment
and fine, shall be imposed upon:
"1. Those who shall publicly expound or proclaim doctrines openly contrary to public morals;
"2. a. The authors of obscene literature, published with their knowledge in any form; the editors
publishing such literature; and the owners/operators of the establishment selling the same;
"b. Those who, in theaters, fairs, cinematographs or any other place, exhibit indecent or immoral
plays, scenes, acts or shows, it being understood that the obscene literature or indecent or
immoral plays scenes, acts or shows, whether live or in film, which are prescribed by virtue
hereof, shall include those which: (1) glorify criminals or condone crimes; (2) serve no other
purpose but to satisfy the market for violence, lust or pornography; (3) offend any race religion;
(4) tend to abet traffic in and use of prohibited drugs; and (5) are contrary to law, public order,
morals, good customs, established policies, lawful orders, decrees and edicts.
"3. Those who shall sell, give away or exhibit films, prints, engravings, sculpture or literature which are
offensive to morals.
"Sec. 2. Disposition of the Prohibited Articles. The disposition of the literature, films, prints, engravings,
sculptures, painting, or other materials involved in the violation referred to in Section 1 hereof shall be
governed by the following rules:
"a. Upon conviction of the offender, to be forfeited in favor of the government to be destroyed.
"b. Where the criminal case against any violator of this decree results in acquittal, the
obscene/immoral literature, films, prints, engravings, sculpture, paintings or other materials and
articles involved in the violation referred to in Section 1 hereof shall nevertheless be forfeited in
favor of the government to be destroyed, after forfeiture proceedings conducted as the Chief of
Constabulary.
"c. The person aggrieved by the forfeiture action of the Chief of Constabulary may, within fifteen
(15) days after his receipt of a copy of the decision, appeal the matter to the Secretary of
National Defense for review. The decision of the Secretary of National Defense shall be final and
unappealable.
"Sec. 4. Additional Penalties. Additional penalties shall be imposed as follows:
"1. In case the offender is a government official or employee who allows the violations of Section 1
hereof, the penalty as provided herein shall be imposed in the maximum period and, in addition, the
accessory penalties provided for in the Revised Penal Code, as amended, shall likewise be imposed."
Section 2. To be inserted between Sections 4 and 5 of Presidential Decree No. 960 is Section 4-A to
read as follows:
"Sec. 4-A. The Chief of Constabulary shall, with the approval of the Secretary of National Defense,
promulgate the necessary rules and regulations for the implementation of this decree."
Section 3. This decree shall take effect fifteen (15) days after its publication by the Department of
Public Information in two (2) newspapers of general circulation.
Done in the City of Manila, this 24th day of July in the year of Our Lord, nineteen hundred and seventysix.
REPUBLIC ACT No. 3060
AN ACT CREATING THE BOARD OF CENSORS FOR MOTION PICTURES

Section 1. There is hereby created a board to be known as the Board of Censors for Motion Pictures,
hereinafter called the Board, which shall have its principal office in the City of Manila, and which shall be
under the Office of the President of the Philippines.
Section 2. The Board shall be composed of a Chairman and twenty-four other members to be
appointed by the President of the Philippines with the consent of the Commission on Appointments. The
Chairman of the Board shall hold office for a term of four years: Provided, That the members first
appointed to the Board shall hold office as follows: eight members for two years, eight members for
three years, and the other eight members for four years, from the date they assume office, and,
thereafter, the term of office of the Board members shall all be four years. Any person chosen to fill a
vacancy in the Board shall serve only for the unexpired term of the member he succeeds. Each member
shall receive a compensation of ten pesos per preview session payable every month and the chairman
shall receive an additional compensation of fifty pesos a month.
No person shall be appointed to the Board unless he is a native born citizen of the Philippines, not less
than thirty-five years of age, of good moral standing in the community, and not directly connected with
the motion picture or television industries: Provided, That the President shall appoint as members of the
Board at least three nominees from each of the following:
(a) Professional organizations;
(b) Religious organizations;
(c) Educational associations;
(d) Child and/or Welfare organizations;
(e) Civic associations;
(f) Cultural organizations;
(g) Associations of newspapermen.
Section 3. The Board shall have the following duties and powers:
(a) To screen, censor, examine and supervise the examination of, approve or disapprove or
delete portions from, and/or prohibit the introduction and exhibition of all motion pictures,
imported or produced in the Philippines for non-theatrical, theatrical and television distribution
which in its judgment are immoral, indecent, contrary to law, and/or good customs or injurious to
the prestige of the Republic of the Philippines or its people;
(b) To classify the motion pictures approved for exhibition into those for general patronage and
those for adults only;
(c) To screen, review, delete portion from, approve or disapprove and censor all publicity
materials in connection with any motion picture including trailers, stills, and other advertising
materials which in their judgment are immoral, indecent, contrary to law and/or good customs,
or injurious to the prestige of the Republic of the Philippines or its people;
(d) Subject to the Civil Service Rules and Law, to appoint personnel and a technical staff when
necessary for the effective execution and implementation of the provisions of this Act. The Board
shall have a permanent Secretary who shall be appointed by the President of the Philippines
upon recommendation of the Board. The Secretary shall keep the records of the Board; take
charge of its office; see to it that the orders and permits of the Board are followed and perform
such other duties as may be assigned to him by the Board. The Board shall have the power to fix
the compensation of the Secretary, technical staff and personnel of the Board; prescribe their
duties; and specify their qualifications to the end that only competent persons may be
employed;
(e) To promulgate its own rules of procedures and operation in general, including matters of
quorum and of organization and appointment of sub-committees for censoring motion pictures
and motion picture advertisements throughout the Philippines, and to keep a record of its
proceedings with reference to the motion pictures examined by it, whether passed or not, and if
passed the classification thereof; and
(f) To charge a fee to be fixed by the Board for each film and other materials presented to it for
review or examination, all such fees to be used for the operational expenses of the Board.
Section 4. The decision of the Board either approving or disapproving for exhibition in the Philippines a
motion picture, stills and other pictorial advertisements submitted to it for examination and review must
be rendered within a period of ten days which shall be counted from the date of receipt by the Board of
an application for that purpose, and actual receipt of the motion picture, stills or other pictorial
advertisements to be reviewed. A decision of the Board disapproving a motion picture for exhibition in

the Philippines must be in writing and shall state the reasons or grounds for such disapproval. No film or
motion picture intended for exhibition at movie houses or theaters or on television shall be disapproved
by reason of its topic, theme or subject-matter, but upon the merits of each picture considered in its
entirety.
Section 5. Appeal from the decision of the Board shall be made to a committee composed of the
Undersecretaries of Justice, National Defense, and Education, within fifteen days from receipt of notice
of decision appealed from.
Section 6. Except members of the Board, members of its duly appointed staff, and two representatives
each of the distributor and/or producer and exhibitor of the motion picture under examination and
review, no person shall be allowed, or authorized by the Board inside the screening room during the
examination and review of any motion picture.
Section 7. It shall be unlawful for any person or entity to exhibit or cause to be exhibited in any motion
picture theater or public place, or by television within the Philippines any motion picture, including
trailers, stills, and other pictorial advertisements in connection with motion pictures, not only passed by
the Board; or to print or cause to be printed on any motion picture to be exhibited in any theater, or
public place or by television, a label or notice showing the same to have been officially passed by the
said Board when the same has not been previously authorized, except motion pictures imprinted or
exhibited by the Philippine Government and/or its departments and agencies, and newsreels.
Section 8. The motion picture exhibitors shall post and/or display the certificate or label of approval of
the motion picture by the Board, and shall post or display, or cause to be posted or displayed the said
certificate or label at conspicuous places near the entrances to the theaters or places of exhibition, and
shall include in all their cinema advertisements announcements stating the classification as provided in
Section three (b) hereof, of the motion pictures being exhibited or advertised.
Section 9. It shall be unlawful for any person below eighteen years of age to enter, to make use of any
misrepresentation or false evidence about his or her age in order to gain admission into, a movie house
or theater or the showing of a motion picture classified `for adults only' by the Board. And it shall be
also unlawful for any employee of a movie house or theater to sell to, or receive from, another person
known to the former to be below eighteen years of age any admission ticket to the exhibition of motion
pictures classified as "for adults only". In case of doubt as to the age of the person seeking admission,
the latter shall be required to exhibit his or her residence certificate or other proof of age.
Section 10. For purposes of this Act the following terms shall mean:
(1) Motion pictures a completed composite print of any silent and sound motion film or tape,
either black and white or in color, that can form visual moving images on the projection screen
or television screen through the mechanical application of the projection equipment.
(2) Non-theatrical distribution:
(a) Public showing of long and short motion pictures through the use of mobile projection
equipment not imposing admission fee.
(b) Showing of long or short motion pictures to organizations, societies, clubs, groups, etc. such
as films for children, educational, documentary, cultural, scientific, newsreel, industrial, sales,
public relations, and instructional films.
(3) Theatrical distribution: Public showing and/or exhibition in any cinema or theater or in any
other place of motion pictures imposing admission fees to persons for entertainment, education,
information and advertising.
(4) An Adult is any person eighteen years of age or over.
(5) Preview session shall mean the examination of films by the Board, the duration of which shall
not be less than two hours.
Section 11. Any violation of Section seven of this Act shall be punished by imprisonment of not less
than six months but not more than two years, or by a fine of not less than six hundred nor more than
two thousand pesos, or both at the discretion of the court. If the offender is an alien, he shall be
deported immediately. The license to operate the movie theater or television shall also be revoked. Any
other kind of violation shall be punished by imprisonment of not less than one month nor more than
three months or a fine of not less than one hundred pesos nor more than three hundred pesos, or both,
at the discretion of the court. In case the violation is committed by a corporation, partnership or
association, the criminal liability shall devolve upon the president, manager, administrator, or any
official thereof responsible for the violation.
Section 12. In the event a motion picture, after examination and review by the Board, is declared unfit
for exhibition in the Philippines, the said motion picture shall be returned by the importer or distributor
thereof to the country of origin or to any other place outside of the Philippines within a period of thirty

days, which shall be counted from the date of receipt by the importer or distributor of the decision of
the Board banning the motion picture for exhibition in the Philippines, and all customs duties and
internal revenues taxes paid by the importer of distributor on account of the importation to and entry
into the Philippines of the said motion picture shall be automatically refunded by the government office
concerned to the said importer or distributor. A copy of the decision of the Board banning a motion
picture for exhibition in the Philippines shall be furnished to the Commissioner of Internal Revenue and
to the Collector of Customs of the port of entry of the said motion picture, and the same shall constitute
a sufficient authority to the Commissioner of Internal Revenue and the Collector of Customs concerned
to refund the internal revenue taxes and customs duties paid by the importer or distributor on account
of the importation of the banned motion picture.
Section 13. Act Numbered Thirty-five hundred eighty-two, as amended, and all other Acts or parts of
Acts inconsistent with this Act are hereby repealed.
Section 14. This Act shall take effect upon its approval.
Approved: June 17, 1961
Republic Act No. 9239

February 10, 2004

AN ACT REGULATING OPTICAL MEDIA, REORGANIZING FOR THIS PURPOSE THE VIDEOGRAM
REGULATORY BOARD, PROVIDING PENALTIES THEREFOR, AND FOR OTHER PURPOSES
Be it enacted by the Senate and House of Representatives of the Philippines in Congress assembled::
I. GENERAL PROVISIONS
Section 1. Short Title. - This Act shall be known as the "Optical Media Act of 2003".
Section 2. Policy. - It is hereby declared to be the policy of the State to ensure the protection and
promotion of intellectual property rights.
The unregulated mastering, manufacture, replication, importation and exportation of optical media in all
forms is inimical to economic growth and public interest. Towards this end, the State shall institute the
means to regulate the manufacture, mastering, replication, importation and exportation of optical
media.
Section 3. Definition of Terms. - For the Purpose of this Act, the following terms shall mean:
(a) Economic Zone - the Special Economic Zones, Industrial Estates, Export Processing Zones
and Free Trade Zones as defined in Republic Act No. 7916 or the PEZA Law including the Clark
Special Economic Zone, the Cagayan Special Economic Zone, the Zamboanga City Special
Economic Zone, the Subic Bay Freeport and other economic zones now in existence in the
Philippines or as may be established in the future;
(b) IP Code - Republic Act No. 8293 also known as the Intellectual Property Code of the
Philippines;
(c) License - the authority granted by the Optical Media Board (OMB) to establishments or
entities registered with the OMB to engage in the business of mastering, manufacture,
replication, importation or exportation of optical media;
(d) Magnetic Media - a storage medium or device characterized by a base, usually plastic, coated
with ferric oxide powder, in which visual and/or aural information, or software code, may be
recorded or stored, including, but not limited to, magnetic tape, cassettes, video tape, diskettes,
and floppy discs;
(e) Manufacture - the act or business of producing optical media or devices containing sounds
and/or images, or software code, including any work protected in Part IV of the IP Code, by
mastering and/or replication. In relation to equipment, "manufacture" shall refer to the assembly
or integration of various components into any equipment useful for the mastering, manufacture
and/or replication of optical media;
(f) Manufacturing Equipment - any and all equipment, machine or device, now known or to be
known in the future, intended or design for the production or manufacture, by mastering and/or
replication of optical media, optical media masters, or production parts thereof, including but not
limited to, those which shall be listed in the Implementing Rules and Regulations (IRR) of this Act
or as prescribed by the OMB. For the purpose of this Act, optical disc writers and such other
devices used in personal computers not for commercial purposes shall not be considered as
manufacturing equipment;

(g) Manufacturing Material - any material such as, but not limited to, optical grade polycarbonate
or polycarbonate substitutes with physical properties suitable for the manufacture of optical
media;
(h) Mastering - the act or business of producing a stamper made of glass, metal or other
material, intended for the manufacture of optical media;
(i) Optical Media - a storage medium or device in which information, including sounds and/or
images, or software code, has been stored, either by mastering and/or replication, which may be
accessed and read using a lens scanning mechanism employing a high intensity light source
such as a laser or any such other means as may be developed in the future. The term shall
include, but not be limited to, devices which shall be listed in the IRR of this Act, or as prescribed
by the OMB;
(j) OMB - the Optical Media Board;
(k) Replication - the process of manufacturing optical media by reproducing or generating copies
of the stamper in an injection molding machine or other forms of replicating equipment; and
(l) Source Identification Code or SID Code - a system of codes to identify the source of all optical
media mastered, manufactured or replicated by any establishment or entity.
II. THE OPTICAL MEDIA BOARD
Section 4. Reorganization. - To implement the policies and attain the objectives enunciated in this Act,
the Videogram Regulatory Board (VRB) created under Presidential Decree No. 1987 is hereby
reorganized into the Optical Media Board (OMB).
The OMB shall be placed under the Office of the President (OP) and shall have its principal offices in
Metropolitan Manila.
Section 5. Coverage. - The authority of the OMB shall cover the entire territory of the Republic of the
Philippines including the economic zones as defined in this Act and in Republic Act No. 7916.
Section 6. The Board - The OMB shall be composed of four (4) ex officio members and five (5) regular
members to be appointed by the President. The Chairperson shall be appointed by the President from
among the five (5) regular members.
The ex officio members of the Board shall be composed of the Secretary of the Department of Trade and
Industry (DTI) or his duly authorized representative; the Secretary of the Department of the Interior and
Local Government (DILG) or his duly authorized representative; the Secretary of the Department of
Finance (DOF) or his duly authorized representative; and the Director-General of the Intellectual
Property Office (IPO) or his duly authorized representative: Provided, That the authorized
representatives shall have a rank not lower than the Assistant Secretary.
The Five (5) regular members shall be composed of three (3) representatives from the private sector,
each of whom shall be appointed from an identified industry relying on intellectual property protection,
one (1) representative from the consumer organizations and one (1) representative from the academe.
The regular members shall be nominated by their nationally recognized associations or organizations.
The members of the Board shall elect from among themselves the Vice-Chairperson.
The Chairperson and the regular members of the Board shall hold office for a term of three (3) years,
unless sooner removed by the President for cause: Provided, That the Chairperson and the Regular
members may not serve for more than two (2) consecutive terms: Provided, further, That if any member
fails to complete his or her term, the person appointed to fill the vacancy shall serve only for the
unexpired portion of the term.
Section 7. Qualifications - The regular members of the Board shall be Filipino citizens, at least twentyone (21) years old, of good moral character and standing in the community, and with proven
competence in the industry they represent: Provided, that the Chairperson shall be at least thirty-five
(35) years old, of known probity and managerial and administrative competence: Provided, finally, That
at least two (2) members of the board must be members of the Philippine Bar.
Section 8. Compensation - The Chairperson shall receive a salary and allowances based on current
approved standardized government compensation.
The Vice-Chairperson and members of the Board shall receive honoraria and allowances based on
existing government accounting and auditing rules and regulations.
Section 9. Meetings - The Board shall meet regularly at least once a moth or as often as necessary at
the call of the Chairperson. A majority of the members of the Board shall constitute a quorum to do
business.

Section 10. Powers and Functions of the OMB. - The OMB shall have the following powers and
functions:
(a) Formulate and implement such policies and programs as are necessary for the
accomplishment of the purposes of this Act;
(b) Evaluate the qualifications of any individual, establishment or other entity to engage in the
mastering, manufacture or replication of optical media. For this purpose, the OMB shall require
such person to substantiate its capability to engage in said activities;
(c) Supervise regulate, grant, or renew licenses for specific periods, or deny, suspend, or cancel
the same, subject to such conditions as it may impose, for the activities enumerated in Section
13(a), (b) and (c);
(d) Conduct inspections, by itself or in coordination with other competence agencies of the
government, at anytime, with or without prior notice, of establishments or entities including
those within the economic zones engaged in the activities as provided in Section 13(a), (b) and
(c) of this Act, and employ reasonable force in the event that the responsible person or persons
of such establishment or entity evades, obstructs, or refuses such inspection. For this purpose,
the agents of the OMB shall be considered agents in authority;
(e) Apply for or obtain search warrants from any court of law, or take into preventive custody any
optical media and/or material or equipment, including parts, accessories and paraphernalia used
for the mastering, manufacture or replication of optical media which are found in any premises if
the OMB has reasonable ground to believe or suspect that these are evidence of violation of the
provisions of this Act;
(f) Act as complainant in the criminal prosecution of violators of this Act;
(g) Hear and resolve administrative cases against violators of this Act and impose administrative
sanctions including, but not limited to, the imposition of fines and penalties; confiscation of
optical media; and suspension, non-renewal or cancellation of the license to operate and/or
closure of establishments or entities that violate the provisions of this Act. For this purpose, the
Board shall have the power to issue subpoena or subpoena duces tecum to compel the
attendance of witnesses and production of documents and other effects;
(h) Call upon law enforcement agencies and the managing authorities in the economic zones for
assistance in the implementation and enforcement of its decisions, orders, rules and regulations;
(i) To deputize, whenever necessary, provincial governors, city and municipal mayors, and
representatives of the national government agencies, organizations representing copyright
owners, neighboring rights owners and concerned sectors to help monitor compliance with and
report to the OMB any violation of this Act;
(j) Require persons, establishments and entities engaged in the activities in Section 13 to keep
and maintain for a period of at least five (5) years true and complete records of all activities
related to the conduct of its business. For this purpose, the Board may, at any time, require the
production of such records and samples of optical media from each mastering, manufacturing or
replicating line;
(k) Levy, assess and collect, and periodically adjust and/or revise the rates of fees and charges
for the issuance of licenses granted under this Act;
(l) Establish support offices as may be necessary;
(m) Create and maintain a database, and regularly publish data containing the list and activities
of registered and/or licensed optical media and other related establishments. Any enforcement
agency, including the Bureau of Customs, may refer to this database for enforcement and/or
seizure;
(n) Prescribe the internal and operational procedures for the exercise of its powers and functions,
the performance of its duties and responsibilities and other related matters; and
(o) Exercise such other powers and functions as may be necessary or incidental to the
attainment of the purposes and objectives of this Act, and to perform other related duties and
responsibilities as may be directed by the President.
Section 11. Chief Executive Officer. - The Chairperson of the Board shall be the Chief Executive officer
(CEO). The CEO shall exercise the following powers and functions:
(a) Execute and administer the policies, decisions, orders, resolutions and the rules and
regulations issued by the Board;

(b) Establish the internal organization and administrative procedures of the OMB, and
recommend to the Board the appointment, transfer, detail, and suspension or dismissal for cause
of its administrative and subordinate personnel;
(c) Direct and supervise the operations and the internal affairs of the OMB;
(d) Submit an annual budget to the Board for its approval;
(e) Delegate his or her authority, in whole or in part, to other members of the Board, in
accordance with the rules and regulations of the OMB; and
(f) Perform such other powers and functions as may be authorized by the Board or the President.
Section 12. The OMB Secretariat. - The OMB shall have a Secretariat, herein created, headed by an
Executive Director who shall assist the Chairperson/CEO in the day-to-day operations of the OMB.
The Executive Director shall be appointed by the Chairperson subject to the approval of the Board. His
term shall be coterminous with the CEO.
III. LICENSING AND OTHER REGULATORY PROVISIONS
Section 13. Licensing and Registration. - Any person, establishment or entity shall, prior to engaging in
one or more of the business or activities enumerated hereunder, register with, and secure the
appropriate licenses from the OMB:
(a) Importation, exportation, acquisition, sale or distribution of optical media, manufacturing
equipment, parts and accessories and manufacturing materials used or intended for use in the
mastering, manufacture or replication of optical media;
(b) Possession or operation of manufacturing equipment, parts and accessories, or the
possession acquisition, sale or use of manufacturing materials for the mastering, manufacture or
replication of optical media; and
(c) The mastering, manufacture, replication, importation or exportation of optical media.
With respect to the preceding paragraph (c), the licenses issued by the OMB are conditions precedent
for securing the necessary business permits, licenses, or registration from the appropriate authorities,
and shall also be necessary requirement for the release of manufacturing equipment, parts and
accessories, and materials intended for use in mastering and/or manufacturing optical media, from
customs or economic zones exercising independent custom laws.
Those engaged or intending to engage in more than one of the above mentioned activities and/or
conduct or intend to conduct business in more than one location shall separately register with and
secure the license from the OMB for every business activity at each place of business.
No business activity registered and licensed by the OMB for a specific place of business shall be
conducted in a place and/or location other than that indicated in the license, without the prior written
approval of the OMN. The registration and license issued by the OMB shall be prominently displayed at
the designated place of business.
Section 14. Form, Term, Amendment and Renewal of License. - Every license shall be in a form
prescribed by the OMB and shall be valid for a period of three (3) years subject to conditions as the OMB
may impose. The OMB may amend or renew a license upon application made by the licensee in
accordance with this Act.
Failure to register and obtain a license from the OMB shall automatically cancel any permit, license or
registration issued by any national or local government unit, agency or office.
Section 15. Grounds for Non-issuance or Non-renewal of License. - The OMB may refuse to grant a
license, or to renew a license, upon the following grounds:
(a) The applicant has failed to comply with any requirement imposed by the Board pursuant to
this Act and its implementing rules and regulations;
(b) The applicant or, in the case of juridical persons, any of its officers, directors, managers,
shareholders, or partners, is convicted by final judgment of an offense under this Act or any law
relating to the protection of intellectual property rights;
(c) The application involves a place, location or premises where an offense has been committed
under this Act or under any law relating to the protection of intellectual property rights: Provided,
That the offenders have finally been convicted of such offense;

(d) The applicant has furnished the OMB with any false or misleading information in connection
with any application for or renewal of a license; or
(e) The applicant has been previously issued a license that has been cancelled for cause within
the preceding five (5) years from the date of the application.
The OMB shall decide whether or not to grant or renew a license within fifteen (15) working days from
the filing of the application.
Section 16. Grounds for Suspension or Cancellation of License. - The OMB may, motu proprio or upon
motion of any interested party, after notice and hearing, suspend or cancel a license on any of the
following grounds:
(a) when requested by the license holder;
(b) when the license holder has ceased to engage in the activities authorized under the license
or in the place, location or premises indicated in the license;
(c) when the license holder has been convicted of an offense under this Act or under any other
Law relating to the protection of intellectual property rights; or
(d) when the license holder is in breach of, or is unable to comply with any of the conditions
prescribed in the license.
Section 17. Registration of Present Licenses. - All existing establishments or entities in the Philippines
engaged in activities enumerated in Section 13 shall, within thirty (30) calendar days after the
effectivity of the rules and regulations implementing this Act, register with and secure the necessary
licenses from the OMB.
Section 18. Source Identification (SID) Codes. - The OMB shall determine, develop and/or adopt a
system of Source Identification (SID) codes that is of international recognition and acceptance.
The OMB shall prescribe SID codes for all persons, establishments or entities registered with and
licensed by the OMB to engage in the mastering, manufacture or replication of optical media, including
such other codes as it may determine or require. Such codes shall be applied to each and every optical
media mastered, manufactured or replicated including glass masters, stampers or other parts used for
the manufacture of optical discs.
The SID Codes shall be visible and legible and must conform to such specifications as prescribed by the
OMB.
IV. PENAL PROVISIONS
Section 19. Offenses and Penalties. (a) Imprisonment of at least three (3) years but not more than six (6) years, and a fine of not less
than Five Hundred thousand pesos (Php 500,000.00) but not exceeding One Million five hundred
thousand pesos (Php 1,500,000.00), at the discretion of the Court, shall be imposed on any
person, natural or juridical, who shall:
(1) Engage in the importation, exportation, acquisition, sale or distribution of, or possess
or operate manufacturing equipment, parts and accessories without the necessary
licenses from the OMB;
(2) Engage in the mastering, manufacture, replication, importation or exportation of
optical media without the necessary license from the OMB;
(3) By himself, or through another, cause the mastering, manufacture or replication of
any intellectual property in optical media intended for commercial profit or pecuniary gain
without authority or consent of the owner thereof;
(4) Engage in the Mastering, manufacture, or replication of optical media without affixing
or installing in the resulting products the SID Code, and/or such other codes prescribed,
assigned and authorized by the OMB. The absence of the codes prescribed, assigned and
authorized by the OMB in any optical media shall be prima facie evidence that said
optical media are in violation of this Act;
(5) Engage in the mastering, manufacture, or replication of optical media using, affixing
or installing in the resulting products false SID or other codes. The presence of false or
unauthorized codes shall be prima facie evidence that said optical media are in violation
of this act;

(6) Engage in the mastering, manufacture, or replication of optical media using, affixing
or installing in the resulting products false SID or other codes that have been assigned by
the OMB to another person, or, having been assigned and authorized said codes by the
OMB, allow or authorize another person, establishment or entity to use, affix or install
such codes in the latter's products;
(b) Imprisonment of at least one year but not more than three years and a fine not less than one
hundred thousand pesos, but not exceeding five hundred thousand pesos, at the discretion of
the court, for the following offenses:
(1) Engaging in the importation, exportation, sale or distribution of, or possess or acquire
in commercial quantities manufacturing materials used or intended for use in the
mastering, manufacture or replication of optical media without the necessary licenses
from the OMB;
(2) Knowingly performing or rendering the service of mastering, manufacture or
replication of optical media, after having been licensed by the OMB, to any person, in
respect of any intellectual property, who does not have the consent by the owner of the
intellectual property or his representatives or assigns;
For this purpose, any person, establishment or entity that is licensed by the OMB to
engage in the above mentioned activities shall be considered to have acted in good faith
in respect of any transaction entered into by him in respect to the preceding paragraph, if
he notifies the OMB of such transaction within five working days from receipt of the order,
furnishing to the OMB all material information thereof;
(3) Refusing to submit to inspection by the OMB, or surrender for preventive custody any
optical media, equipment, manufacturing materials, including parts, accessories and
paraphernalia found during inspection operations to be in violation of the provisions of
this Act;
For purposes of this subsection, violators who will employ armed resistance against agents of the OMB
shall be penalized under other applicable laws in addition to those provide in this Act; and
(a) Imprisonment of at least 30 days but not more than 90 days or a fine of not less than
25,000.00 pesos but not exceeding fifty thousand pesos at the discretion of the court:
(1) Knowingly possess items of the same content or title, produced in violation of this Act,
and used for the purpose with the intent to profit;
(2) Engaging in the sale, rental, distribution, importation, exportation of, or any other
commercial activity involving optical media that are in violation of this Act.
(b) For subsequent offenses in Section 19(a), uniform imprisonment of six (6) years but not more
than nine (9) years and a fine of not less than One Million five hundred thousand pesos (Php
1,500,000.00) but not exceeding Three million pesos (Php 3,000,000.00) at the discretion of the
Court, shall be imposed.
(c) For subsequent offenses in Section 19(b), uniform imprisonment of three (3) years but not
more than six (6) years and a fine of not less than Five hundred thousand pesos (Php
500,000.00) but not exceeding One million five hundred pesos (PHp 1,500,000.00) at the
discretion of the Court, shall be imposed.
The offenses listed under this section shall be punished without prejudice to the application of
appropriate penalties or sanctions provided under Section 216 and such other appropriate sections of
the IP Code or Republic Act No. 8792 also known as the Electronic Commerce Act, the Revised Penal
Code or other applicable laws.
Section 20. Determination of Penalties - In determining the number of years of imprisonment, or
amount of fine to be imposed, the court shall consider the size of the operations of the offender, the
value of the articles involved in the violation, and the period of violation. In imposing administrative
penalties, the OMB shall likewise consider the said circumstances.
Section 21. Persons Liable. - If the offender is an alien, the person shall immediately be deported after
serving his sentence, and shall, thereafter, be refused entry into the country.
If the offender is a government official or employee, he shall suffer perpetual disqualification from public
office and forfeiture of his right to vote and participate in any public election for ten (10) years.
Should the offense be committed by the juridical person, the stockholder, chairperson, president,
officer, director, trustee, partner or manager responsible for such violation shall be liable.

Section 22. Enforcement - The OMB may solicit the direct assistance of other agencies, the managing
authorities in the economic zones and instrumentalities of the national and local governments, and may
deputize for a limited period the heads or personnel of agencies to perform enforcement functions for
the OMB, insofar as such functions are concerned shall be subject to the direction and supervision of the
OMB.
Section 23. Disposal of Seized Materials. - Any optical media, equipment or materials found to be in
violation of the provisions of this Act, any books, records, or paraphernalia providing evidence of any
violation committed by any person, establishment or entity, shall be confiscated and forfeited in the
favor of the government and shall be disposed in accordance with pertinent laws and regulations:
Provided, That confiscated optical media may, pending consideration of the case, be immediately
destroyed upon final determination by the OMB in an administrative case, or by a court in a civil or
criminal case, that are the same are in violations of this Act: Provided, further, That a sufficient
representative sample shall be retained for evidentiary purposes.
The retained representative sample shall remain in custodia legis until the final resolution of
proceedings thereon.
Equipment and materials imported of this Act shall be subject to seizure and immediate disposal by the
Bureau of Customs.
IV. TRANSITORY PROVISIONS
Section 24. The Videogram Regulatory Board (VRB) and Secretariat - The incumbent Chairperson, ViceChairperson, members of the Board and Secretariat shall continue to perform their duties and functions
in a hold-over capacity, and shall receive their corresponding salaries and benefits until such time that
the new chairperson and at least majority of the Board shall have been appointed and qualified.
The Present officials and employees of the VRB shall be given priority, on the basis of experience, merit
and fitness, in appointments to new positions to which they may qualify under the new staffing pattern:
Provided, That those who shall be given new appointments shall be entitled to all compensation and
benefits due them under existing laws: Provided, further, that those who shall be separated from service
shall receive all separation pay and benefits due under existing laws.
The transition period shall not exceed six months after effectivity of this Act.
Section 25. Transfer of Funds, Assets, Liabilities and Records. All unexpended appropriations , real and
personal property, contracts, records, documents, and assets and liabilities of the VRB shall be
transferred to the OMB.
Section 26. Regulation of Magnetic Media. - The provisions of this Act shall apply mutates mutandis to
the regulation of magnetic media.
Section 27. Classification of Motion Pictures and Cinematographic Works. - The classification for
audience suitability of motion pictures and cinematographic works in optical media including related
publicity materials thereto shall be the function of the Movie and Television Review and Classification
Board (MTRCB).
Section 28. Prosecution of Pending Cases - for the purpose of this Act, all pending cases for violation of
presidential Decree No. 1987 shall continue to be prosecuted.
V. MISCELLANEOUS PROVISIONS
Section 29. Organization Structure - the organizational structure and staffing pattern of the OMB shall
be established in coordination with the Dept. of Budget and Management (DBM) and in accordance with
Civil Service laws, rules, and regulations.
Section 30. Period of Implementation - The OMB and the DBM shall prepare the necessary work
programs to cover the staggered implementation of this Act for a period not exceeding five (5) years.
Section 31. Appropriations. - The appropriations for the VRB under the current General Appropriations
Act shall be used to carry out the initial implementation of this Act. Thereafter, such sums as may be
necessary for its implementation shall be included in the General Appropriations Act.
Section 32. Annual Report. - The OMB shall, within ninety days after the end of every fiscal year,
submit to the President and to Congress an annual report on its accomplishments under this Act,
together with its plans and recommendations to improve and develop its capability to enforce the
provisions of this Act, and a complete accounting of transactions with respect to the use of income.
Section 33. Congressional Oversight Committee on the OMB.- The Congressional oversight committee
on the optical media board shall be composed of the chairs of the senate committees on public
information and mass media and trade and commerce and the house of representatives committees on
trade and industry and public information, and two members each from the senate and house of

10

representatives who shall be designated by the senate president and the speaker of the house of
representatives: Provided, That one of the two senators and one of the two house members shall be
nominated by the respective minority leaders of the senate and the house of representatives.
The COC-OMB is hereby mandated to oversee the implementation of this Act for a period of five years.
For this purpose, COC-OMB shall set the implementation of this act and shall adopt its internal rules of
procedure.
The Secretariat of the COC-OMB shall be drawn from the existing Secretariat personnel of the Senate
and House of Representatives Committees comprising the COC-OMB.
To carry out the powers and functions of the COC-OMB, the initial sum of five million pesos shall be
charged against the current appropriations of congress. Thereafter, the amount necessary for its
continued operations shall be included in the annual General Appropriations Act.
Section 34. Implementing Rules and Regulations. - The OMB shall within three months from the
effectivity of this Act submit to the COC-OMB, the implementing rules and regulations (IRR) governing
this Act. The COC-OMB shall approve the IRR within thirty days.
Section 35. Separability Clause. - If, for any reason, any provision of this Act is declared invalid or
unconstitutional, the other sections or provisions not so declared shall remain in full force and effect.
Section 36. Repealing Clause. - Presidential Decree No. 1987 is hereby repealed. Presidential Decree
No. 1986 or the MTRCB Law and other laws, rules, regulations, decrees, executive orders, and other
issuance or parts thereof which are inconsistent with the provisions of this Act are hereby repealed or
modified accordingly.
Section 37. Effectivity - This Act shall take effect fifteen (15) days after its publication in the Official
Gazette or in at least two (2) newspapers of general circulation.

Approved,
FRANKLIN DRILON
President of the Senate

JOSE DE VENECIA JR.

Speaker of the House of
Representatives

This Act which is a consolidation of house Bill No. 5225 and Senate Bill No. 2586 was finally passed by
the House of Representatives and the Senate on December 17, 2003 and January 13, 2004, respectively.
OSCAR G. YABES
Secretary of Senate

ROBERTO P. NAZARENO
Secretary General
House of Represenatives

Approved: February 10 2004

GLORIA MACAPAGAL-ARROYO
President of the Philippines
PRESIDENTIAL DECREE No. 1987
AN ACT CREATING THE VIDEOGRAM REGULATORY BOARD
WHEREAS, the proliferation and unregulated circulation of videograms including, among others,
videotapes, discs, cassettes or any technical improvement or variation thereof, have greatly prejudiced
the operations of movie houses and theaters, and have caused a sharp decline in theatrical attendance
by at least forty percent (40%) and a tremendous drop in the collection of sales, contractor's specific,
amusement and other taxes, thereby resulting in substantial losses estimated at P450 Million annually
in government revenues;
WHEREAS, videograms establishments collectively earn around P600 Million per annum from rentals,
sales, and disposition of videograms, and such earnings have not been subjected to tax, thereby
depriving the Government of approximately P180 Million in taxes each year;
WHEREAS, the unregulated activities of videogram establishments have also affected the viability of the
movie industry, particularly the more than 1,200 movie houses and theaters throughout the country,
and occasioned industry-wide displacement and unemployment due to the shutdown of numerous
movie houses and theaters;

11

WHEREAS, in order to ensure national economic recovery, it is imperative for the Government to create
an environment conducive to the growth and development of all business industries, including the
movie industry which has an accumulated investment of about P3 Billion;
WHEREAS, proper taxation of the activities of videogram establishments will not only alleviate the dire
financial condition of the movie industry upon which more than 75,000 families and 500,000 workers
depend for their livelihood, but also provide an additional source of revenue for the Government, and at
the same time rationalize the heretofore uncontrolled distribution of videograms;
WHEREAS, the rampant and unregulated showing of obscene videogram features constitutes a clear
and present danger to the moral and spiritual well-being of the youth, and impairs the mandate of the
Constitution for the State to support the rearing of the youth for civil efficiency and the development of
moral character and promote their physical, intellectual, and social well-being;
WHEREAS, civic-minded citizens and groups have called for remedial measures to curb these blatant
malpractices which have flaunted our censorship and copyright laws;
WHEREAS, in the face of these grave emergencies corroding the moral values of the people and
betraying the national economic recovery program, bold emergency measures must be adopted with
dispatch;
NOW, THEREFORE, I, FERDINAND E. MARCOS, President of the Philippines, by virtue of the powers
vested in me by the Constitution, do hereby decree:
Section 1. Creation. - There is hereby created an office to be known as the Videogram Regulatory
Board, hereinafter referred to as the BOARD, which shall have its principal office in Metro Manila and
shall be under the Office of the President of the Philippines. The BOARD shall regulate the importation,
exportation, production, reproduction, distribution, exhibition, showing, sale, lease or disposition of
videograms including, among others, videotapes, discs, casettes or any technical improvement or
variation thereof in accordance with such rules and regulations to be adopted by the BOARD.
Section 2. Composition of the Board. - The Board shall be composed of a Chairman, a Vice-Chairman
and eighteen (18) members who shall all be appointed by the President of the Philippines to serve for a
term of one (1) year, unless sooner removed by the President for any cause; Provided, That they shall
be eligible for reappointment after the expiration of their term. If the Chairman or Vice-Chairman or any
of the members fails to complete his term, any person appointed to fill the vacancy shall serve only for
the unexpired portion of the term of the Board member whom he succeeds.
No person shall be appointed to the BOARD, unless he is a natural-born citizen of the Philippines, not
less than twenty-one years of age, and of good moral character and standing in the community;
Provided, That in the selection of the members of the BOARD due consideration shall be given to such
qualifications as would produce a multi-sectoral combination of expertise in the various areas of the
videogram industry; Provided, further, That at least five (5) members must be members of the
Philippine Bar.
The Chairman, Vice-Chairman and members of the BOARD shall be entitled to transportation,
representation and other allowances which shall in no case exceed Five Thousand Pesos (P5,000.00) per
month.
Section 3. Powers and Functions. - The BOARD shall have the following powers and functions:
1) To supervise, regulate, grant, deny, or cancel permits for the importation, exportation,
production, copying, sale, lease, exhibition or showing of videograms including, among others,
videotapes, discs, cassettes or any technical improvement or variation thereof;
2) To approve or disapprove, delete, objectionable portions from and/or prohibit the importation,
exportation, production, copying, distribution, sale, lease, exhibition or showing of videograms,
including, among others, videotapes, discs, cassettes or any technical improvement or variation
thereof, which, in the judgment of the BOARD applying contemporary Filipino cultural values as
basic standard, are objectionable for being immoral, indecent, libelous, contrary to law or good
customs, or injurious to the prestige of the Republic of the Philippines or its people, or with a
dangerous tendency to encourage or fan hatred, the commission of violence or of a wrong or
crime, such as but not limited to:
i) Those which tend to incite subversion, insurrection, rebellion, or sedition against the
State or otherwise threaten the economic and/or political stability of the State;
ii) Those which tend to undermine the faith and confidence of the people in their
government and/or the duly constituted authorities;lawphil.net
iii) Those which glorify criminals or condone crimes;

12

iv) Those which are libelous or defamatory to the good name and reputation of any
person, whether living or dead;
v) Those which serve no other purpose but to satisfy the market for excessive violence or
hard-core pornography;
vi) Those which tend to abet the traffic in and use of prohibited drugs; or
vii) Those which commit direct or indirect contempt of any court of justice or quasi-judicial
tribunal whether any litigation on the subject of the video is pending or not before such
court of tribunal.
3) To classify all videograms into categories such as "For General Patronage", "For Adults Only",
or such other categories as the BOARD may determine for the public interest;
4) To close video theaters and other similar establishments engaged in the public exhibition or
showing of videograms which violate the provisions of this Decree and the rules and regulations
promulgated by the BOARD pursuant thereto;
5) To levy, assess and collect, and periodically adjust and revise the rates of fees and charges for
the work of review and examination and for the issuance of licenses and permits which the
BOARD is authorized to grant in the exercise of its powers and functions and in the performance
of its duties and responsibilities;lawphil.net
6) To review and examine all videograms, including among others, videotapes, discs, cassettes
or any technical improvement or variation thereof, as well as publicity materials or
advertisements related thereto, with the end in view of making appropriate classification;
7) To deputize representatives from the government and from the various associations in the
videogram industry, whose main duties shall be to help and ensure compliance with all laws,
rules and regulations relative to this Decree. For this purpose, the BOARD may constitute such
Council or Councils composed of representatives from the government and the videogram
industry as may be appropriate to implement the objectives of this Decree. The BOARD may also
call upon any law enforcement agency for assistance in the implementation and enforcement of
its decisions, orders and rules and regulations;
8) To cause the prosecution, on behalf of the People of the Philippines, of violators of this Decree
and the rules and regulations promulgated or issued by the BOARD.
9) To promulgate such rules and regulations as are necessary or proper for the implementation of
this Decree and the accomplishment of its purposes and objectives. Such rules and regulations
shall take effect after fifteen (15) days following their publication in newspapers of general
circulation in the Philippines;
10) To prescribe the internal and operational systems and procedures for the exercise of its
powers and functions including the creation and vesting of authority upon sub-committees of the
BOARD for the work of review, examination or classification and other related matters; and
11) To exercise such other powers and functions as may be necessary or incidental to the
attainment of the purposes and objectives of this Decree, and to perform such other related
duties and responsibilities as may be directed by the President of the Philippines.
Section 4. Executive Officer. - The Chairman of the BOARD shall be the Chief Executive Officer. He shall
Exercise the following duties and functions:
a) Execute, implement and enforce the decisions, orders, rules and regulations promulgated or
issued by the BOARD;
b) Direct and supervise the operations and the internal affairs of the BOARD;
c) Establish the internal organization and administrative procedures of the BOARD, and
recommend to the BOARD the appointment of the necessary administrative and subordinate
personnel; and
d) Exercise such other powers and functions and perform such duties as are not specifically
lodged in the BOARD.
The Chief Executive Officer shall be assisted by an Executive Director who shall be appointed by the
President of the Philippines. The Executive Director shall hold office for a term of one (1) year, unless
sooner removed by the President of the Philippines, for any cause.

13

Unless otherwise provided by law, the Chief Executive Officer shall receive an annual salary of Seventy
Two Thousand Pesos (P72,000.00) and the Executive Director shall receive an annual salary of Sixty
Thousand Pesos (P60,000.00).
*Section 6. Registration. - No person, whether natural or juridical, may engage in the importation,
exportation, production, reproduction, exhibition, showing, sale, lease or disposition of videograms
unless such person is first registered with and permitted by the BOARD to operate as such. The
registration with and permit issued by the BOARD is a condition precedent for securing a business
permit or license from the appropriate authorities.
Section 7. Reproduction of Cinematographic Art. - No person registered and permitted to engage in the
videogram industry can copy or reproduce any cinematographic art without the written consent or
approval of the producer, importer or licensee of the cinematographic art to be copied or reproduced,
and in no case shall any cinematographic art be allowed to be copied or reproduced within a period of
six (6) months after it is first released for theatrical exhibition, unless the producer, importer or licensee
agrees to a shorter period.
Section 8. Sale, Lease or Disposition of Videograms. - No videogram including, among others,
videotapes, discs, cassettes or any technical improvement or variation thereof, shall be sold, leased or
otherwise disposed of unless first registered with the BOARD with the corresponding registration
identification or seal in such form and manner as may be provided for by the BOARD.
Section 9. Penalty. - Any person who violates any or all of the provisions of Sections 3, 6, 7, 8 and 10 of
this Decree or the rules and regulations to be promulgated pursuant thereto, either as principal,
accomplice or accessory, shall, upon conviction, suffer a mandatory penalty of three (3) months and
one (1) day to one (1) year imprisonment plus a fine of not less than Fifty Thousand Pesos (P50,000.00)
but not more than One Hundred Thousand Pesos (P100,000.00). Should the offense be committed by a
juridical person, the chairman, the president, secretary, treasurer, or the partner responsible therefor,
shall be the persons penalized.
The provisions of Presidential Decree No. 968, as amended (Probation Law), shall not apply in cases of
violations of this Decree, including its implementing rules and regulations.
Section 10. Tax on Sale, Lease or Disposition of Videograms. - Notwithstanding any provision of law to
the contrary, the province shall collect a tax of thirty percent (30%) of the purchase price or rental rate,
as the case may be, for every sale, lease or disposition of a videogram containing a reproduction of any
motion picture or audiovisual program. Fifty percent (50%) of the proceeds of the tax collected shall
accrue to the province, and the other fifty percent (50%) shall accrue to the municipality where the tax
is collected; Provided, That in Metropolitan Manila, the tax shall equally by the city/municipality and the
Metropolitan Manila Commission.
The tax herein imposed shall be due and payable within the first twenty (20) days of the month next
following that for which it is due, by the proprietor, seller or lessor concerned, and such tax shall be
determined on the basis of a true and complete return of the amount of gross receipts derived during
the preceding month. If the tax is not paid within the time fixed herein above, the taxpayer shall be
subject to such surcharges, interests and penalties prescribed by the Local Tax Code. In case ofwillfull
neglect to file the return and pay the tax within the time required, or in case a fraudulent return is filed
or a false return is willfully made, the taxpayer shall be subject to a surcharge of fifty percent (50%) of
the correct amount of the tax due in addition to the interest and penalties provided by the Local Tax
Code.
Any provision of law to the contrary notwithstanding, a city may also levy and collect, among others,
any of the taxes, fees and other impositions that the province or the municipality may levy and collect.
Section 11. Assistance in the Enforcement Functions of the BOARD. - The BOARD may solicit the direct
assistance of other agencies and units of the government, and deputize, for a fixed and limited period,
the heads or personnel of such agencies and units to perform enforcement function for the BOARD. The
government agencies and units exercising the enforcement functions for the BOARD shall, insofar as
such functions are concerned, be subject to the direction and control of the BOARD.
Section 12. Organizational Pattern; Personnel. - The BOARD shall determine its organizational structure
and its staffing pattern. It shall have the power to suspend or dismiss for cause any employee and/or
approve or disapprove the appointment, transfer or detail of employees. It shall appoint the Secretary of
the BOARD who shall be the official custodian of the records of the meetings of the BOARD and who
shall perform such other duties and functions as directed by the BOARD.
Section 13. Applicability of Civil Service Law. - The BOARD and its officers and employees shall be
subject to the Civil Service Law, rules and regulations; Provided, That technical personnel shall be
selected on the basis of merit and fitness to be determined in accordance with such policies and
guidelines as may be approved by the BOARD.
Section 14. Auditor. - The Chairman of the Commission on Audit shall be the ex officio Auditor of the
BOARD. For this purpose, he may appoint a representative who shall be the auditor of the BOARD,
together with the necessary personnel to assist said representative in the performance of his duties.

14

The number and salaries of the auditor and said personnel shall be determined by the Chairman of the
Commission on Audit, subject to the rules and regulations of the Commission on Audit. Said salaries and
all other expenses of maintaining the auditor's office shall be paid by the BOARD.
The Auditor shall, as soon as practicable, but not later than three (3) months after the accounts have
been submitted to audit, send an annual report to the BOARD. The Auditor shall also submit such
periodic or special reports as the BOARD may deem necessary or proper.
Section 15. Transitory Provision. - All videogram establishments in the Philippines are hereby given a
period of forty-five (45) days after the effectivity of this Decree within which to register with and secure
a permit form the BOARD to engage in the videogram business and to register with the BOARD all their
inventories of videograms, including videotapes, discs, cassettes or other technical improvements or
variations thereof, before they could be sold, leased, or otherwise disposed of. Thereafter any
videogram found in the possession of any person engaged in the videogram business without the
required proof of registration by the BOARD, shall be prima facie evidence of violation of this Decree,
whether the possession of such videogram be for private showing and/or for public exhibition.
Section 16. Appropriations. - The sum of Three Million Pesos out of any available funds from the
National Treasury is hereby appropriated and authorized to be released for the organization of the
BOARD and its initial operations. Henceforth, funds sufficient to fully carry out the functions and
objectives of the BOARD shall be appropriated every fiscal year in the General Appropriations Act.
All fees, revenues and receipts of the BOARD from any and all sources shall be used to augment the
funds to support the expenditures needed by the BOARD in the pursuit of its purposes and objectives
and the exercise of its powers and functions, and for such other purposes as may hereafter be directed
by the President of the Philippines.
Section 17. Annual Reports. - The BOARD shall, within three months after the end of every fiscal year,
submit its annual report to the President. The annual report shall include, among others, a statement of
the BOARD's accomplishments together with its plans and recommendations to improve and develop its
operations and the supervision and regulation of the videogram industry.
Section 18. Separability Clause. - In case any provision of this Decree shall be held or declared invalid
or unconstitutional, the validity of the other provisions shall not be affected thereby.
Section 19. Repealing Clause. - Any provision of law, decree, executive order, letter of instructions or
implementation, or other rules and regulations inconsistent with the provisions of this Decree is hereby
repealed, amended or modified accordingly.
Section 20. Effectivity. - This Decree shall take effect after fifteen (15) days following its publication in
the Official Gazette.
DONE in the City of Manila, this 5th day of October, in the year of Our Lord, nineteen hundred and
eighty-five.
Republic Act No. 6770

November 17, 1989

AN ACT PROVIDING FOR THE FUNCTIONAL AND STRUCTURAL ORGANIZATION OF THE OFFICE
OF THE OMBUDSMAN, AND FOR OTHER PURPOSES
Be it enacted by the Senate and House of Representatives of the Philippines in Congress assembled::
Section 1. Title. This Act shall be known as "The Ombudsman Act of 1989".
Section 2. Declaration of Policy. The State shall maintain honesty and integrity in the public
service and take positive and effective measures against graft and corruption.
Public office is a public trust. Public officers and employees must at all times be accountable to the
people, serve them with utmost responsibility, integrity, loyalty, efficiency, act with patriotism and
justice and lead modest lives.
Section 3. Office of the Ombudsman. The Office of the Ombudsman shall include the Office of the
Overall Deputy, the Office of the Deputy for Luzon, the Office of the Deputy for the Visayas, the Office of
the Deputy for Mindanao, the Office of the Deputy for the Armed Forces, and the Office of the Special
Prosecutor. The President may appoint other Deputies as the necessity for it may arise, as
recommended by the Ombudsman.
Section 4. Appointment. The Ombudsman and his Deputies, including the Special Prosecutor, shall
be appointed by the President from a list of at least twenty-one (21) nominees prepared by the Judicial
and Bar Council, and from a list of three (3) nominees for each vacancy thereafter, which shall be filled
within three (3) months after it occurs, each of which list shall be published in a newspaper of general
circulation.

15

In the organization of the Office of the Ombudsman for filling up of positions therein, regional, cultural
or ethnic considerations shall be taken into account to the end that the Office shall be as much as
possible representative of the regional, ethnic and cultural make-up of the Filipino nation.
Section 5. Qualifications. The Ombudsman and his Deputies, including the Special Prosecutor,
shall be natural-born citizens of the Philippines, at least forty (40) years old, of recognized probity and
independence, members of the Philippine Bar, and must not have been candidates for any elective
national or local office in the immediately preceding election whether regular or special. The
Ombudsman must have, for ten (10) years or more, been a judge or engaged in the practice of law in
the Philippines.
Section 6. Rank and Salary. The Ombudsman and his Deputies shall have the same ranks, salaries
and privileges as the Chairman and members, respectively, of a Constitutional Commission. Their
salaries shall not be decreased during their term of office.
The members of the prosecution, investigation and legal staff of the Office of the Ombudsman shall
receive salaries which shall not be less than those given to comparable positions in any office in the
Government.
Section 7. Term of Office. The Ombudsman and his Deputies, including the Special Prosecutor,
shall serve for a term of seven (7) years without reappointment.
Section 8. Removal; Filling of Vacancy.
(1) In accordance with the provisions of Article XI of the Constitution, the Ombudsman may be
removed from office on impeachment for, and conviction of, culpable violation of the
Constitution, treason, bribery, graft and corruption, other high crimes, or betrayal of public trust.
(2) A Deputy or the Special Prosecutor, may be removed from office by the President for any of
the grounds provided for the removal of the Ombudsman, and after due process.
(3) In case of vacancy in the Office of the Ombudsman due to death, resignation, removal or
permanent disability of the incumbent Ombudsman, the Overall Deputy shall serve as Acting
Ombudsman in a concurrent capacity until a new Ombudsman shall have been appointed for a
full term.n case the Overall Deputy cannot assume the role of Acting Ombudsman, the President
may designate any of the Deputies, or the Special Prosecutor, as Acting Ombudsman.
(4) In case of temporary absence or disability of the Ombudsman, the Overall Deputy shall
perform the duties of the Ombudsman until the Ombudsman returns or is able to perform his
duties.
Section 9. Prohibitions and Disqualifications. The Ombudsman, his Deputies and the Special
Prosecutor shall not, during their tenure, hold any other office or employment. They shall not, during
said tenure, directly or indirectly practice any other profession, participate in any business, or be
financially interested in any contract with, or in any franchise, or special privilege granted by the
Government or any subdivision, agency or instrumentality thereof, including government-owned or
controlled corporations or their subsidiaries. They shall strictly avoid conflict of interest in the conduct of
their office. They shall not be qualified to run for any office in the election immediately following their
cessation from office. They shall not be allowed to appear or practice before the Ombudsman for two (2)
years following their cessation from office.
No spouse or relative by consanguinity or affinity within the fourth civil degree and no law, business or
professional partner or associate of the Ombudsman, his Deputies or Special Prosecutor within one (1)
year preceding the appointment may appear as counsel or agent on any matter pending before the
Office of the Ombudsman or transact business directly or indirectly therewith.
This disqualification shall apply during the tenure of the official concerned. This disqualification likewise
extends to the law, business or professional firm for the same period.
Section 10. Disclosure of Relationship. It shall be the duty of the Ombudsman, his Deputies,
including the Special Prosecutor to make under oath, to the best of their knowledge and/or information,
a public disclosure of the identities of, and their relationship with the persons referred to in the
preceding section.
The disclosure shall be filed with the Office of the President and the Office of the Ombudsman before
the appointee assumes office and every year thereafter. The disclosures made pursuant to this section
shall form part of the public records and shall be available to any person or entity upon request.
Section 11. Structural Organization. The authority and responsibility for the exercise of the
mandate of the Office of the Ombudsman and for the discharge of its powers and functions shall be
vested in the Ombudsman, who shall have supervision and control of the said office.

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(1) The Office of the Ombudsman may organize such directorates for administration and allied
services as may be necessary for the effective discharge of its functions. Those appointed as
directors or heads shall have the rank and salary of line bureau directors.
(2) The Office of the Overall Deputy shall oversee and administer the operations of the different
offices under the Office of Ombudsman.t shall likewise perform such other functions and duties
assigned to it by the Ombudsman.
(3) The Office of the Special Prosecutor shall be composed of the Special Prosecutor and his
prosecution staff. The Office of the Special Prosecutor shall be an organic component of the
Office of the Ombudsman and shall be under the supervision and control of the Ombudsman.
(4) The Office of the Special Prosecutor shall, under the supervision and control and upon the
authority of the Ombudsman, have the following powers:
(a) To conduct preliminary investigation and prosecute criminal cases within the
jurisdiction of the Sandiganbayan;
(b) To enter into plea bargaining agreements; and
(c) To perform such other duties assigned to it by the Ombudsman.
The Special Prosecutor shall have the rank and salary of a Deputy Ombudsman.
(5) The position structure and staffing pattern of the Office of the Ombudsman, including the
Office of the Special Prosecutor, shall be approved and prescribed by the Ombudsman. The
Ombudsman shall appoint all officers and employees of the Office of the Ombudsman, including
those of the Office of the Special Prosecutor, in accordance with the Civil Service Law, rules and
regulations.
Section 12. Official Stations. The Ombudsman, the Overall Deputy, the Deputy for Luzon, and the
Deputy for the Armed Forces shall hold office in Metropolitan Manila; the Deputy for the Visayas, in Cebu
City; and the Deputy for Mindanao, in Davao City. The Ombudsman may transfer their stations within
their respective geographical regions, as public interest may require.
Section 13. Mandate. The Ombudsman and his Deputies, as protectors of the people, shall act
promptly on complaints filed in any form or manner against officers or employees of the Government, or
of any subdivision, agency or instrumentality thereof, including government-owned or controlled
corporations, and enforce their administrative, civil and criminal liability in every case where the
evidence warrants in order to promote efficient service by the Government to the people.
Section 14. Restrictions. No writ of injunction shall be issued by any court to delay an
investigation being conducted by the Ombudsman under this Act, unless there is a prima facie evidence
that the subject matter of the investigation is outside the jurisdiction of the Office of the Ombudsman.
No court shall hear any appeal or application for remedy against the decision or findings of the
Ombudsman, except the Supreme Court, on pure question of law.
Section 15. Powers, Functions and Duties. The Office of the Ombudsman shall have the
following powers, functions and duties:
(1) Investigate and prosecute on its own or on complaint by any person, any act or omission of
any public officer or employee, office or agency, when such act or omission appears to be illegal,
unjust, improper or inefficient.t has primary jurisdiction over cases cognizable by the
Sandiganbayan and, in the exercise of this primary jurisdiction, it may take over, at any stage,
from any investigatory agency of Government, the investigation of such cases;
(2) Direct, upon complaint or at its own instance, any officer or employee of the Government, or
of any subdivision, agency or instrumentality thereof, as well as any government-owned or
controlled corporations with original charter, to perform and expedite any act or duty required by
law, or to stop, prevent, and correct any abuse or impropriety in the performance of duties;
(3) Direct the officer concerned to take appropriate action against a public officer or employee at
fault or who neglect to perform an act or discharge a duty required by law, and recommend his
removal, suspension, demotion, fine, censure, or prosecution, and ensure compliance therewith;
or enforce its disciplinary authority as provided in Section 21 of this Act: provided, that the
refusal by any officer without just cause to comply with an order of the Ombudsman to remove,
suspend, demote, fine, censure, or prosecute an officer or employee who is at fault or who
neglects to perform an act or discharge a duty required by law shall be a ground for disciplinary
action against said officer;
(4) Direct the officer concerned, in any appropriate case, and subject to such limitations as it
may provide in its rules of procedure, to furnish it with copies of documents relating to contracts

17

or transactions entered into by his office involving the disbursement or use of public funds or
properties, and report any irregularity to the Commission on Audit for appropriate action;
(5) Request any government agency for assistance and information necessary in the discharge of
its responsibilities, and to examine, if necessary, pertinent records and documents;
(6) Publicize matters covered by its investigation of the matters mentioned in paragraphs (1),
(2), (3) and (4) hereof, when circumstances so warrant and with due prudence: provided, that
the Ombudsman under its rules and regulations may determine what cases may not be made
public: provided, further, that any publicity issued by the Ombudsman shall be balanced, fair and
true;
(7) Determine the causes of inefficiency, red tape, mismanagement, fraud, and corruption in the
Government, and make recommendations for their elimination and the observance of high
standards of ethics and efficiency;
(8) Administer oaths, issue subpoena and subpoena duces tecum, and take testimony in any
investigation or inquiry, including the power to examine and have access to bank accounts and
records;
(9) Punish for contempt in accordance with the Rules of Court and under the same procedure and
with the same penalties provided therein;
(10) Delegate to the Deputies, or its investigators or representatives such authority or duty as
shall ensure the effective exercise or performance of the powers, functions, and duties herein or
hereinafter provided;
(11) Investigate and initiate the proper action for the recovery of ill-gotten and/or unexplained
wealth amassed after February 25, 1986 and the prosecution of the parties involved therein.
The Ombudsman shall give priority to complaints filed against high ranking government officials and/or
those occupying supervisory positions, complaints involving grave offenses as well as complaints
involving large sums of money and/or properties.
Section 16. Applicability. The provisions of this Act shall apply to all kinds of malfeasance,
misfeasance, and non-feasance that have been committed by any officer or employee as mentioned in
Section 13 hereof, during his tenure of office.
Section 17. Immunities. In all hearings, inquiries, and proceedings of the Ombudsman, including
preliminary investigations of offenses, nor person subpoenaed to testify as a witness shall be excused
from attending and testifying or from producing books, papers, correspondence, memoranda and/or
other records on the ground that the testimony or evidence, documentary or otherwise, required of him,
may tend to incriminate him or subject him to prosecution: provided, that no person shall be prosecuted
criminally for or on account of any matter concerning which he is compelled, after having claimed the
privilege against self-incrimination, to testify and produce evidence, documentary or otherwise.
Under such terms and conditions as it may determine, taking into account the pertinent provisions of
the Rules of Court, the Ombudsman may grant immunity from criminal prosecution to any person whose
testimony or whose possession and production of documents or other evidence may be necessary to
determine the truth in any hearing, inquiry or proceeding being conducted by the Ombudsman or under
its authority, in the performance or in the furtherance of its constitutional functions and statutory
objectives. The immunity granted under this and the immediately preceding paragraph shall not exempt
the witness from criminal prosecution for perjury or false testimony nor shall he be exempt from
demotion or removal from office.
Any refusal to appear or testify pursuant to the foregoing provisions shall be subject to punishment for
contempt and removal of the immunity from criminal prosecution.
Section 18. Rules of Procedure.
(1) The Office of the Ombudsman shall promulgate its rules of procedure for the effective
exercise or performance of its powers, functions, and duties.
(2) The rules of procedure shall include a provision whereby the Rules of Court are made
suppletory.
(3) The rules shall take effect after fifteen (15) days following the completion of their publication
in the Official Gazette or in three (3) newspapers of general circulation in the Philippines, one of
which is printed in the national language.
Section 19. Administrative Complaints. The Ombudsman shall act on all complaints relating, but
not limited to acts or omissions which:

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(1) Are contrary to law or regulation;

(2) Are unreasonable, unfair, oppressive or discriminatory;
(3) Are inconsistent with the general course of an agency's functions, though in accordance with
law;
(4) Proceed from a mistake of law or an arbitrary ascertainment of facts;
(5) Are in the exercise of discretionary powers but for an improper purpose; or
(6) Are otherwise irregular, immoral or devoid of justification.
Section 20. Exceptions. The Office of the Ombudsman may not conduct the necessary
investigation of any administrative act or omission complained of if it believes that:
(1) The complainant has an adequate remedy in another judicial or quasi-judicial body;
(2) The complaint pertains to a matter outside the jurisdiction of the Office of the Ombudsman;
(3) The complaint is trivial, frivolous, vexatious or made in bad faith;
(4) The complainant has no sufficient personal interest in the subject matter of the grievance; or
(5) The complaint was filed after one (1) year from the occurrence of the act or omission
complained of.
Section 21. Official Subject to Disciplinary Authority; Exceptions. The Office of the
Ombudsman shall have disciplinary authority over all elective and appointive officials of the
Government and its subdivisions, instrumentalities and agencies, including Members of the Cabinet,
local government, government-owned or controlled corporations and their subsidiaries, except over
officials who may be removed only by impeachment or over Members of Congress, and the Judiciary.
Section 22. Investigatory Power. The Office of the Ombudsman shall have the power to
investigate any serious misconduct in office allegedly committed by officials removable by
impeachment, for the purpose of filing a verified complaint for impeachment, if warranted.
In all cases of conspiracy between an officer or employee of the government and a private person, the
Ombudsman and his Deputies shall have jurisdiction to include such private person in the investigation
and proceed against such private person as the evidence may warrant. The officer or employee and the
private person shall be tried jointly and shall be subject to the same penalties and liabilities.
Section 23. Formal Investigation.
(1) Administrative investigations conducted by the Office of the Ombudsman shall be in
accordance with its rules of procedure and consistent with due process.
(2) At its option, the Office of the Ombudsman may refer certain complaints to the proper
disciplinary authority for the institution of appropriate administrative proceedings against erring
public officers or employees, which shall be determined within the period prescribed in the civil
service law. Any delay without just cause in acting on any referral made by the Office of the
Ombudsman shall be a ground for administrative action against the officers or employees to
whom such referrals are addressed and shall constitute a graft offense punishable by a fine of
not exceeding Five thousand pesos (P5,000.00).
(3) In any investigation under this Act the Ombudsman may: (a) enter and inspect the premises
of any office, agency, commission or tribunal; (b) examine and have access to any book, record,
file, document or paper; and (c) hold private hearings with both the complaining individual and
the official concerned.
Section 24. Preventives Suspension. The Ombudsman or his Deputy may preventively suspend
any officer or employee under his authority pending an investigation, if in his judgment the evidence of
guilt is strong, and (a) the charge against such officer or employee involves dishonesty, oppression or
grave misconduct or neglect in the performance of duty; (b) the charges would warrant removal from
the service; or (c) the respondent's continued stay in office may prejudice the case filed against him.
The preventive suspension shall continue until the case is terminated by the Office of the Ombudsman
but not more than six (6) months, without pay, except when the delay in the disposition of the case by
the Office of the Ombudsman is due to the fault, negligence or petition of the respondent, in which case
the period of such delay shall not be counted in computing the period of suspension herein provided.
Section 25. Penalties.

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(1) In administrative proceedings under Presidential Decree No. 807, the penalties and rules
provided therein shall be applied.
(2) In other administrative proceedings, the penalty ranging from suspension without pay for one
(1) year to dismissal with forfeiture of benefits or a fine ranging from Five thousand pesos
(P5,000.00) to twice the amount malversed, illegally taken or lost, or both at the discretion of the
Ombudsman, taking into consideration circumstances that mitigate or aggravate the liability of
the officer or employee found guilty of the complaint or charges.
Section 26. Inquiries.
(1) The Office of the Ombudsman shall inquire into acts or omissions of a public officer,
employee, office or agency which, from the reports or complaints it has received, the
Ombudsman or his Deputies consider to be:
(a) contrary to law or regulation;
(b) unreasonable, unfair, oppressive, irregular or inconsistent with the general course of
the operations and functions of a public officer, employee, office or agency;
(c) an error in the application or interpretation of law, rules or regulations, or a gross or
palpable error in the appreciation of facts;
(d) based on improper motives or corrupt considerations;
(e) unclear or inadequately explained when reasons should have been revealed; or
(f) inefficient performed or otherwise objectionable.
(2) The Officer of the Ombudsman shall receive complaints from any source in whatever form
concerning an official act or omission.t shall act on the complaint immediately and if it finds the
same entirely baseless, it shall dismiss the same and inform the complainant of such dismissal
citing the reasons therefor.f it finds a reasonable ground to investigate further, it shall first
furnish the respondent public officer or employee with a summary of the complaint and require
him to submit a written answer within seventy-two (72) hours from receipt thereof.f the answer is
found satisfactory, it shall dismiss the case.
(3) When the complaint consists in delay or refusal to perform a duty required by law, or when
urgent action is necessary to protect or preserve the rights of the complainant, the Office of the
Ombudsman shall take steps or measures and issue such orders directing the officer, employee,
office or agency concerned to:
(a) expedite the performance of duty;
(b) cease or desist from the performance of a prejudicial act;
(c) correct the omission;
(d) explain fully the administrative act in question; or
(e) take any other steps as may be necessary under the circumstances to protect and
preserve the rights of the complainant.
(4) Any delay or refusal to comply with the referral or directive of the Ombudsman or any of his
Deputies, shall constitute a ground for administrative disciplinary action against the officer or
employee to whom it was addressed.
Section 27. Effectivity and Finality of Decisions. (1) All provisionary orders of the Office of the
Ombudsman are immediately effective and executory.
A motion for reconsideration of any order, directive or decision of the Office of the Ombudsman must be
filed within five (5) days after receipt of written notice and shall be entertained only on any of the
following grounds:
(1) New evidence has been discovered which materially affects the order, directive or decision;
(2) Errors of law or irregularities have been committed prejudicial to the interest of the movant.
The motion for reconsideration shall be resolved within three (3) days from filing: provided, that
only one motion for reconsideration shall be entertained.

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Findings of fact by the Officer of the Ombudsman when supported by substantial evidence are
conclusive. Any order, directive or decision imposing the penalty of public censure or reprimand,
suspension of not more than one (1) month's salary shall be final and unappealable.
In all administrative disciplinary cases, orders, directives, or decisions of the Office of the Ombudsman
may be appealed to the Supreme Court by filing a petition for certiorari within ten (10) days from
receipt of the written notice of the order, directive or decision or denial of the motion for reconsideration
in accordance with Rule 45 of the Rules of Court.
The above rules may be amended or modified by the Office of the Ombudsman as the interest of justice
may require.
Section 28. Investigation in Municipalities, Cities and Provinces. The Office of the
Ombudsman may establish offices in municipalities, cities and provinces outside Metropolitan Manila,
under the immediate supervision of the Deputies for Luzon, Visayas and Mindanao, where necessary as
determined by the Ombudsman. The investigation of complaints may be assigned to the regional or
sectoral deputy concerned or to a special investigator who shall proceed in accordance with the rules or
special instructions or directives of the Office of the Ombudsman. Pending investigation the deputy or
investigator may issue orders and provisional remedies which are immediately executory subject to
review by the Ombudsman. Within three (3) days after concluding the investigation, the deputy or
investigator shall transmit, together with the entire records of the case, his report and conclusions to
the Office of the Ombudsman. Within five (5) days after receipt of said report, the Ombudsman shall
render the appropriate order, directive or decision.
Section 29. Change of Unjust Laws. If the Ombudsman believes that a law or regulation is unfair
or unjust, he shall recommend to the President and to Congress the necessary changes therein or the
repeal thereof.
Section 30. Transmittal/Publication of Decision. In every case where the Ombudsman has
reached a decision, conclusion or recommendation adverse to a public official or agency, he shall
transmit his decision, conclusion, recommendation or suggestion to the head of the department, agency
or instrumentality, or of the province, city or municipality concerned for such immediate action as may
be necessary. When transmitting his adverse decision, conclusion or recommendation, he shall, unless
excused by the agency or official affected, include the substance of any statement the public agency or
official may have made to him by way of explaining past difficulties with or present rejection of the
Ombudsman's proposals.
Section 31. Designation of Investigators and Prosecutors. The Ombudsman may utilize the
personnel of his office and/or designate or deputize any fiscal, state prosecutor or lawyer in the
government service to act as special investigator or prosecutor to assist in the investigation and
prosecution of certain cases. Those designated or deputized to assist him herein provided shall be
under his supervision and control.
The Ombudsman and his investigators and prosecutors, whether regular members of his staff or
designated by him as herein provided, shall have authority to administer oaths, to issue subpoena and
subpoena duces tecum, to summon and compel witnesses to appear and testify under oath before them
and/or bring books, documents and other things under their control, and to secure the attendance or
presence of any absent or recalcitrant witness through application before the Sandiganbayan or before
any inferior or superior court having jurisdiction of the place where the witness or evidence is found.
Section 32. Rights and Duties of Witness.
(1) A person required by the Ombudsman to provide the information shall be paid the same fees
and travel allowances as are extended to witnesses whose attendance has been required in the
trial courts. Upon request of the witness, the Ombudsman shall also furnish him such security for
his person and his family as may be warranted by the circumstances. For this purpose, the
Ombudsman may, at its expense, call upon any police or constabulary unit to provide the said
security.
(2) A person who, with or without service or compulsory process, provides oral or documentary
information requested by the Ombudsman shall be accorded the same privileges and immunities
as are extended to witnesses in the courts, and shall likewise be entitled to the assistance of
counsel while being questioned.
(3) If a person refuses to respond to the Ombudsman's or his Deputy's subpoena, or refuses to
be examined, or engages in obstructive conduct, the Ombudsman or his Deputy shall issue an
order directing the person to appear before him to show cause why he should not be punished
for contempt. The contempt proceedings shall be conducted pursuant to the provisions of the
Rules of Court.
Section 33. Duty to Render Assistance to the Office of the Ombudsman. Any officer or
employee of any department, bureau or office, subdivision, agency or instrumentality of the
Government, including government-owned or controlled corporations and local governments, when

21

required by the Ombudsman, his Deputy or the Special Prosecutor shall render assistance to the Office
of the Ombudsman.
Section 34. Annual Report. The Office of the Ombudsman shall render an annual report of its
activities and performance to the President and to Congress to be submitted within thirty (30) days from
the start of the regular session of Congress.
Section 35. Malicious Prosecution. Any person who, actuated by malice or gross bad faith, files a
completely unwarranted or false complaint against any government official or employee shall be subject
to a penalty of one (1) month and one (1) day to six (6) months imprisonment and a fine not exceeding
Five thousand pesos (P5,000.00).
Section 36. Penalties for Obstruction. Any person who willfully obstructs or hinders the proper
exercise of the functions of the Office of the Ombudsman or who willfully misleads or attempts to
mislead the Ombudsman, his Deputies and the Special Prosecutor in replying to their inquiries shall be
punished by a fine of not exceeding Five thousand pesos (P5,000.00).
Section 37. Franking Privilege. All official mail matters and telegrams of the Ombudsman
addressed for delivery within the Philippines shall be received, transmitted, and delivered free of
charge: provided, that such mail matters when addressed to private persons or nongovernment offices
shall not exceed one hundred and twenty (120) grams. All mail matters and telegrams sent through
government telegraph facilities containing complaints to the Office of the Ombudsman shall be
transmitted free of charge, provided that the telegram shall contain not more than one hundred fifty
(150) words.
Section 38. Fiscal Autonomy. The Office of the Ombudsman shall enjoy fiscal autonomy.
Appropriations for the Office of the Ombudsman may not be reduced below the amount appropriated for
the previous years and, after approval, shall be automatically and regularly released.
Section 39. Appropriations. The appropriation for the Office of the Special Prosecutor in the
current General Appropriations Act is hereby transferred to the Office of the Ombudsman. Thereafter,
such sums as may be necessary shall be included in the annual General Appropriations Act.
Section 40. Separability Clause. If any provision of this Act is held unconstitutional, other
provisions not affected thereby shall remain valid and binding.
Section 41. Repealing Clause. All laws, presidential decrees, letters of instructions, executive
orders, rules and regulations insofar as they are inconsistent with this Act, are hereby repealed or
amended as the case may be.
Section 42. Effectivity. This Act shall take effect after fifteen (15) days following its publication in
the Official Gazette or in three (3) newspapers of general circulation in the Philippines.
Approved: November 17, 1989.
Republic Act No. 7080

July 12, 1991

AN ACT DEFINING AND PENALIZING THE CRIME OF PLUNDER

Be it enacted by the Senate and House of Representatives of the Philippines in Congress assembled::
Section 1. Definition of Terms - As used in this Act, the term a) Public Officer means any person holding any public office in the Government of the Republic of
the Philippines by virtue of an appointment, election or contract.
b) Government includes the National Government, and any of its subdivisions, agencies or
instrumentalities, including government-owned or -controlled corporations and their subsidiaries.
c) Person includes any natural or juridical person, unless the context indicates otherwise.
d) Ill-gotten wealth means any asset, property, business enterprise or material possession of any
person within the purview of Section Two (2) hereof, acquired by him directly or indirectly
through dummies, nominees, agents, subordinates and/or business associates by any
combination or series of the following means or similar schemes:
1) Through misappropriation, conversion, misuse, or malversation of public funds or raids
on the public treasury;
2) By receiving, directly or indirectly, any commission, gift, share, percentage, kickbacks
or any other form of pecuniary benefit from any person and/or entity in connection with

22

any government contract or project or by reason of the office or position of the public
officer concerned;
3) By the illegal or fraudulent conveyance or disposition of assets belonging to the
National Government or any of its subdivisions, agencies or instrumentalities or
government-owned or -controlled corporations and their subsidiaries;
4) By obtaining, receiving or accepting directly or indirectly any shares of stock, equity or
any other form of interest or participation including promise of future employment in any
business enterprise or undertaking;
5) By establishing agricultural, industrial or commercial monopolies or other combinations
and/or implementation of decrees and orders intended to benefit particular persons or
special interests; or
6) By taking undue advantage of official position, authority, relationship, connection or
influence to unjustly enrich himself or themselves at the expense and to the damage and
prejudice of the Filipino people and the Republic of the Philippines.
See Section 2 As amended by Section 12 of RA No.7659
Section 2. Definition of the Crime of Plunder; Penalties - Any public officer who, by himself or in
connivance with members of his family, relatives by affinity or consanguinity, business associates,
subordinates or other persons, amasses, accumulates or acquires ill-gotten wealth through a
combination or series of overt or criminal acts as described in Section 1(d) hereof, in the aggregate
amount or total value of at least Seventy-five million pesos (P75,000,000.00), shall be guilty of the
crime of plunder and shall be punished by life imprisonment with perpetual absolute disqualification
from holding any public office. Any person who participated with said public officer in the commission of
plunder shall likewise be punished. In the imposition of penalties, the degree of participation and the
attendance of mitigating and extenuating circumstances shall be considered by the court. The court
shall declare any and all ill-gotten wealth and their interests and other incomes and assets including the
properties and shares of stock derived from the deposit or investment thereof forfeited in favor of the
State.
Section 3. Competent Court - Until otherwise provided by law, all prosecutions under this Act shall be
within the original jurisdiction of the Sandiganbayan.
Section 4. Rule of Evidence - For purposes of establishing the crime of plunder, it shall not be
necessary to prove each and every criminal act done by the accused in furtherance of the scheme or
conspiracy to amass, accumulate or acquire ill-gotten wealth, it being sufficient to establish beyond
reasonable doubt a pattern of overt or criminal acts indicative of the overall unlawful scheme or
conspiracy.
Section 5. Suspension and Loss of Benefits - Any public officer against whom any criminal
prosecution under a valid information under this Act in whatever stage of execution and mode of
participation, is pending in court, shall be suspended from office. Should he be convicted by final
judgment, he shall lose all retirement or gratuity benefits under any law, but if he is acquitted, he shall
be entitled to reinstatement and to the salaries and other benefits which he failed to receive during
suspension, unless in the meantime, administrative proceedings have been filed against him.
Section 6. Prescription of Crimes - The crime punishable under this Act shall prescribe in twenty
(20) years. However, the right of the State to recover properties unlawfully acquired by public officers
from them or from their nominees or transferees shall not be barred by prescription, laches, or estoppel.
Section 7. Separability of Provisions - If any provisions of this Act or the application thereof to any
person or circumstance is held invalid, the remaining provisions of this Act and the application of such
provisions to other persons or circumstances shall not be affected thereby.
Section 8. Scope - This Act shall not apply to or affect pending prosecutions or proceedings, or those
which may be instituted under Executive Order No. 1, issued and promulgated on February 28, 1986.
Section 9. Effectivity - This Act shall take effect after fifteen (15) days from its publication in the
Official Gazette and in a newspaper of general circulation.
Approved: July 12, 1991
REPUBLIC ACT No. 3019
ANTI-GRAFT AND CORRUPT PRACTICES ACT
Section 1. Statement of policy. It is the policy of the Philippine Government, in line with the principle
that a public office is a public trust, to repress certain acts of public officers and private persons alike
which constitute graft or corrupt practices or which may lead thereto.

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

(a) "Government" includes the national government, the local governments, the governmentowned and government-controlled corporations, and all other instrumentalities or agencies of
the Republic of the Philippines and their branches.
(b) "Public officer" includes elective and appointive officials and employees, permanent or
temporary, whether in the classified or unclassified or exempt service receiving compensation,
even nominal, from the government as defined in the preceding subparagraph.
(c) "Receiving any gift" includes the act of accepting directly or indirectly a gift from a person
other than a member of the public officer's 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 value of
the gift is under the circumstances manifestly excessive.
(d) "Person" includes natural and juridical persons, unless the context indicates otherwise.
Section 3. Corrupt practices of public officers. In addition to acts or omissions of public officers already
penalized by existing law, the following shall constitute corrupt practices of any public officer and are
hereby declared to be unlawful:
(a) Persuading, inducing or influencing another public officer to perform an act constituting a
violation of rules and regulations duly promulgated by competent authority or an offense in
connection with the official duties of the latter, or allowing himself to be persuaded, induced, or
influenced to commit such violation or offense.
(b) Directly or indirectly requesting or receiving any gift, present, share, percentage, or benefit,
for himself or for any other person, in connection with any contract or transaction between the
Government and any other part, wherein the public officer in his official capacity has to intervene
under the law.
(c) Directly or indirectly requesting or receiving any gift, present or other pecuniary or material
benefit, for himself or for another, from any person for whom the public officer, in any manner or
capacity, has secured or obtained, or will secure or obtain, any Government permit or license, in
consideration for the help given or to be given, without prejudice to Section thirteen of this Act.
(d) Accepting or having any member of his family accept employment in a private enterprise
which has pending official business with him during the pendency thereof or within one year
after its termination.
(e) Causing any undue injury to any party, including the Government, or giving any private party
any unwarranted benefits, advantage or preference in the discharge of his official administrative
or judicial functions through manifest partiality, evident bad faith or gross inexcusable
negligence. This provision shall apply to officers and employees of offices or government
corporations charged with the grant of licenses or permits or other concessions.
(f) Neglecting or refusing, after due demand or request, without sufficient justification, to act
within a reasonable time on any matter pending before him for the purpose of obtaining, directly
or indirectly, from any person interested in the matter some pecuniary or material benefit or
advantage, or for the purpose of favoring his own interest or giving undue advantage in favor of
or discriminating against any other interested party.
(g) Entering, on behalf of the Government, into any contract or transaction manifestly and
grossly disadvantageous to the same, whether or not the public officer profited or will profit
thereby.
(h) Director or indirectly having financing or pecuniary interest in any business, contract or
transaction in connection with which he intervenes or takes part in his official capacity, or in
which he is prohibited by the Constitution or by any law from having any interest.
(i) Directly or indirectly becoming interested, for personal gain, or having a material interest in
any transaction or act requiring the approval of a board, panel or group of which he is a member,
and which exercises discretion in such approval, even if he votes against the same or does not
participate in the action of the board, committee, panel or group.
Interest for personal gain shall be presumed against those public officers responsible for the
approval of manifestly unlawful, inequitable, or irregular transaction or acts by the board, panel
or group to which they belong.
(j) Knowingly approving or granting any license, permit, privilege or benefit in favor of any
person not qualified for or not legally entitled to such license, permit, privilege or advantage, or
of a mere representative or dummy of one who is not so qualified or entitled.

24

(k) Divulging valuable information of a confidential character, acquired by his office or by him on
account of his official position to unauthorized persons, or releasing such information in advance
of its authorized release date.
The person giving the gift, present, share, percentage or benefit referred to in subparagraphs (b) and
(c); or offering or giving to the public officer the employment mentioned in subparagraph (d); or urging
the divulging or untimely release of the confidential information referred to in subparagraph (k) of this
section shall, together with the offending public officer, be punished under Section nine of this Act and
shall be permanently or temporarily disqualified in the discretion of the Court, from transacting business
in any form with the Government.
Section 4. Prohibition on private individuals. (a) It shall be unlawful for any person having family or
close personal relation with any public official to capitalize or exploit or take advantage of such family or
close personal relation by directly or indirectly requesting or receiving any present, gift or material or
pecuniary advantage from any other person having some business, transaction, application, request or
contract with the government, in which such public official has to intervene. Family relation shall include
the spouse or relatives by consanguinity or affinity in the third civil degree. The word "close personal
relation" shall include close personal friendship, social and fraternal connections, and professional
employment all giving rise to intimacy which assures free access to such public officer.
(b) It shall be unlawful for any person knowingly to induce or cause any public official to commit
any of the offenses defined in Section 3 hereof.
Section 5. Prohibition on certain relatives. It shall be unlawful for the spouse or for any relative, by
consanguinity or affinity, within the third civil degree, of the President of the Philippines, the VicePresident of the Philippines, the President of the Senate, or the Speaker of the House of
Representatives, to intervene, directly or indirectly, in any business, transaction, contract or application
with the Government: Provided, That this section shall not apply to any person who, prior to the
assumption of office of any of the above officials to whom he is related, has been already dealing with
the Government along the same line of business, nor to any transaction, contract or application already
existing or pending at the time of such assumption of public office, nor to any application filed by him
the approval of which is not discretionary on the part of the official or officials concerned but depends
upon compliance with requisites provided by law, or rules or regulations issued pursuant to law, nor to
any act lawfully performed in an official capacity or in the exercise of a profession.
Section 6. Prohibition on Members of Congress. It shall be unlawful hereafter for any Member of the
Congress during the term for which he has been elected, to acquire or receive any personal pecuniary
interest in any specific business enterprise which will be directly and particularly favored or benefited by
any law or resolution authored by him previously approved or adopted by the Congress during the same
term.
The provision of this section shall apply to any other public officer who recommended the initiation in
Congress of the enactment or adoption of any law or resolution, and acquires or receives any such
interest during his incumbency.
It shall likewise be unlawful for such member of Congress or other public officer, who, having such
interest prior to the approval of such law or resolution authored or recommended by him, continues for
thirty days after such approval to retain such interest.
Section 7. Statement of assets and liabilities. Every public officer, within thirty days after the approval
of this Act or after assuming office, and within the month of January of every other year thereafter, as
well as upon the expiration of his term of office, or upon his resignation or separation from office, shall
prepare and file with the office of the corresponding Department Head, or in the case of a Head of
Department or chief of an independent office, with the Office of the President, or in the case of
members of the Congress and the officials and employees thereof, with the Office of the Secretary of
the corresponding House, a true detailed and sworn statement of assets and liabilities, including a
statement of the amounts and sources of his income, the amounts of his personal and family expenses
and the amount of income taxes paid for the next preceding calendar year: Provided, That public
officers assuming office less than two months before the end of the calendar year, may file their
statements in the following months of January.
Section 8. Dismissal due to unexplained wealth. If in accordance with the provisions of Republic Act
Numbered One thousand three hundred seventy-nine, a public official has been found to have acquired
during his incumbency, whether in his name or in the name of other persons, an amount of property
and/or money manifestly out of proportion to his salary and to his other lawful income, that fact shall be
a ground for dismissal or removal. Properties in the name of the spouse and unmarried children of such
public official may be taken into consideration, when their acquisition through legitimate means cannot
be satisfactorily shown. Bank deposits shall be taken into consideration in the enforcement of this
section, notwithstanding any provision of law to the contrary.
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 one year nor more than ten years, perpetual disqualification from public

25

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 public officer violation any of the provisions of Section 7 of this Act shall be punished by
a fine of not less than one hundred pesos nor more than one thousand pesos, or by
imprisonment not exceeding one year, or by both such fine and imprisonment, at the discretion
of the Court.
The violation of said section proven in a proper administrative proceeding shall be sufficient cause for
removal or dismissal of a public officer, even if no criminal prosecution is instituted against him.
Section 10. Competent court. Until otherwise provided by law, all prosecutions under this Act shall be
within the original jurisdiction of the proper Court of First Instance.
Section 11. Prescription of offenses. All offenses punishable under this Act shall prescribe in ten years.
Section 12. Termination of office. No public officer shall be allowed to resign or retire pending an
investigation, criminal or administrative, or pending a prosecution against him, for any offense under
this Act or under the provisions of the Revised Penal Code on bribery.
Section 13. Suspension and loss of benefits. Any public officer against whom any criminal prosecution
under a valid information under this Act or under the provisions of the Revised Penal Code on bribery is
pending in court, shall be suspended from office. Should he be convicted by final judgment, he shall
lose all retirement or gratuity benefits under any law, but if he is acquitted, he shall be entitled to
reinstatement and to the salaries and benefits which he failed to receive during suspension, unless in
the meantime administrative proceedings have been filed against him.
Section 14. Exception. Unsolicited gifts or presents of 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.
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 15. Separability clause. If any provision of this Act or the application of such provision to any
person or circumstances is declared invalid, the remainder of the Act or the application of such provision
to other persons or circumstances shall not be affected by such declaration.
Section 16. Effectivity. This Act shall take effect on its approval, but for the purpose of determining
unexplained wealth, all property acquired by a public officer since he assumed office shall be taken into
consideration.
Approved: August 17, 1960
Republic Act No. 9485

June 02, 2007

AN ACT TO IMPROVE EFFICIENCY IN THE DELIVERY OF GOVERNMENT SERVICE TO THE PUBLIC

BY REDUCING BUREAUCRATIC RED TAPE, PREVENTING GRAFT AND CORRUPTION, AND
PROVIDING PENALTIES THEREFOR
Be it enacted by the Senate and the House of Representatives of the Philippines in Congress assembled:
SECTION 1. Short Title. - This Act shall be known as the "Anti-Red Tape Act of 2007".
SEC. 2. Declaration of Policy. - It is hereby declared the policy of the State to promote integrity,
accountability, proper management of public affairs and public property as well as to establish effective
practices aimed at the prevention of graft and corruption in government. Towards this end, the State
shall maintain honesty and responsibility among its public officials and employees, and shall take
appropriate measures to promote transparency in each agency with regard to the manner of transacting
with the public, which shall encompass a program for the adoption of simplified procedures that will
reduce red tape and expedite transactions in government.
SEC. 3. Coverage. - This Act shall apply to all government offices and agencies including local
government units and government-owned or -controlled corporations that provide frontline services as

26

defined in this Act. Those performing judicial, quasi-judicial and legislative functions are excluded from
the coverage of this Act.
SEC. 4. Definition of Terms. - As used in this Act, the following terms are defined as follows:
(a) "Simple Transactions" refer to requests or applications submitted by clients of a government
office or agency which only require ministerial actions on the part of the public officer or
employee, or that which present only inconsequential issues for the resolution by an officer or
employee of said government office.
(b) "Complex Transactions" refer to requests or applications submitted by clients of a
government office which necessitate the use of discretion in the resolution of complicated issues
by an officer or employee of said government office, such transaction to be determined by the
office concerned.
(c) "Frontline Service" refers to the process or transaction between clients and government
offices or agencies involving applications for any privilege, right, permit, reward, license,
concession, or for any modification, renewal or extension of the enumerated applications and/or
requests which are acted upon in the ordinary course of business of the agency or office
concerned.
(d) "Action" refers to the written approval or disapproval made by a government office or agency
on the application or request submitted by a client for processing.
(e) "Officer or Employee" refers to a person employed in a government office or agency required
to perform specific duties and responsibilities related to the application or request submitted by
a client for processing.
(f) "Irrevelant requirement" refer to any document or performance of an act not directly material
to the resolution of the issues raised in the request or needed in the application submitted by the
client.
(g) "Fixer" refers to any individual whether or not officially involved in the operation of a
government office or agency who has access to people working therein, and whether or not in
collusion with them, facilitates speedy completion of transactions for pecuniary gain or any other
advantage or consideration.
SEC. 5 Reengineering of Systems and Procedures. - All offices and agencies which provide
frontline services are hereby mandated to regularly undertake time and motion studies, undergo
evaluation and improvement of their transaction systems and procedures and re-engineer the same if
deemed necessary to reduce bureaucratic red tape and processing time.
SEC. 6. Citizen's Charter. - All government agencies including departments, bureaus, offices,
instrumentalities, or government-owned and/or controlled corporations, or local government or district
units shall set up their respective service standards to be known as the Citizen's Charter in the form of
information billboards which should be posted at the main entrance of offices or at the most
conspicuous place, and in the form of published materials written either in English, Filipino, or in the
local dialect, that detail:
(a) The procedure to obtain a particular service;
(b) The person/s responsible for each step;
(c) The maximum time to conclude the process;
(d) The document/s to be presented by the customer, if necessary;
(e) The amount of fees, if necessary; and
(f) The procedure for filing complaints.
SEC. 7. Accountability of the Heads of Offices and Agencies. - The head of the office or agency
shall be primarily responsible for the implementation of this Act and shall be held accountable to the
public in rendering fast, efficient, convenient and reliable service. All transactions and processes are
deemed to have been made with the permission or clearance from the highest authority having
jurisdiction over the government office or agency concerned.
SEC. 8. Accessing Frontline Services. - The following shall be adopted by all government offices and
agencies:
(a) Acceptance of Applications and Request - (1) All officers or employees shall accept written
applications, requests, and/or documents being submitted by clients of the office or agencies.

27

(2) The responsible officer or employee shall acknowledge receipt of such application
and/or request by writing or printing clearly thereon his/her name, the unit where he/she
is connected with, and the time and date of receipt.
(3) The receiving officer or employee shall perform a preliminary assessment of the
request so as to promote a more expeditious action on requests.
(b) Action of Offices - (1) All applications and/or requests submitted shall be acted upon by the
assigned officer or employee during the period stated in the Citizen's Charter which shall not be
longer than five working days in the case of simple transactions and ten (10) working days in the
case of complex transactions from the date the request or application was received. Depending
on the nature of the frontline services requested or the mandate of the office or agency under
unusual circumstances, the maximum time prescribed above may be extended. For the
extension due to nature of frontline services or the mandate of the office or agency concerned
the period for the delivery of frontline services shall be indicated in the Citizen's Charter. The
office or agency concerned shall notify the requesting party in writing of the reason for the
extension and the final date of release for the extension and the final date of release of the
frontline service/s requested.
(2) No application or request shall be returned to the client without appropriate action. In
case an application or request is disapproved, the officer or employee who rendered the
decision shall send a formal notice to the client within five working days from the receipt
of the request and/or application, stating therein the reason for the disapproval including
a list of specific requirement/s which the client failed to submit.
(c) Denial of Request for Access to Government Service - Any denial of request for access to
government service shall be fully explained in writing, stating the name of the person making
the denial and the grounds upon which such denial is based. Any denial of request is deemed to
have been made with the permission or clearance from the highest authority having jurisdiction
over the government office or agency concerned.
(d) Limitation of Signatories - The number of signatories in any document shall be limited to a
maximum of five signatures which shall represent officers directly supervising the office or
agency concerned.
(e) Adoption of Working Schedules to Serve Clients - Heads of offices and agencies which render
frontline services shall adopt appropriate working schedules to ensure that all clients who are
within their premises prior to the end of official working hours are attended to and served even
during lunch break and after regular working hours.
(f) Identification Card - All employees transacting with the public shall be provided with an official
identification card which should be visibly worn during office hours.
(g) Establishment of Public Assistance/Complaints Desk - Each office or agency shall establish a
public assistance/complaints desk in all their offices.
SEC. 9. Automatic Extension of Permits and Licenses. - - If a government office or agency fails to
act on an application and/or request for renewal of a license, permit or authority subject for renewal
within the prescribed period, said permit, license or authority shall automatically be extended until a
decision or resolution is rendered on the application for renewal: Provided, That the automatic extension
shall not apply when the permit, license, or authority covers activities which pose danger to public
health, public safety, public morals or to public policy including, but not limited to, natural resource
extraction activities.
SEC. 10. Report Card Survey. - All offices and agencies providing frontline services shall be subjected
to a Report Card Survey to be initiated by the Civil Service Commission, in coordination with the
Development Academy of the Philippines, which shall be used to obtain feedback on how provisions in
the Citizen's Charter are being followed and how the agency is performing.
The Report Card Survey shall also be used to obtain information and/or estimates of hidden costs
incurred by clients to access frontline services which may include, but is not limited to, bribes and
payment to fixers.
A feedback mechanism shall be established in all agencies covered by this Act and the results thereof
shall be incorporated in their annual report.
SEC. 11. Violations. - After compliance with the substantive and procedural due process, the following
shall constitute violations of this Act together with their corresponding penalties:
(a) Light Offense - (1) Refusal to accept application and/or request within the prescribed period
or any document being submitted by a client;

28

(2) Failure to act on an application and/or request or failure to refer back to the client a
request which cannot be acted upon due to lack of requirement/s within the prescribed
period;
(3) Failure to attend to clients who are within the premises of the office or agency
concerned prior to the end of official working hours and during lunch
(4) Failure to render frontline services within the prescribed period on any application
and/or request without due cause;
(5) Failure to give the client a written notice on the disapproval of an application or
request; and
(6) Imposition of additional irrelevant requirements other than those listed in the first
notice.
Penalties for light offense shall be as follows:
First Offense - Thirty (30) days suspension without pay and mandatory attendance
in Values Orientation Program;
Second Offense - Three (3) months suspension without pay; and
Third Offense - Dismissal and perpetual disqualification from public service.
(b) Grave Offense - Fixing and/or collusion with fixers in consideration of economic and/or other
gain or advantage.
Penalty - Dismissal and perpetual disqualification from public service.
SEC. 12. Criminal Liability for Fixers. - In addition to Sec. 11 (b), fixers, as defined in this Act, shall
suffer the penalty of imprisonment not exceeding six years or a fine not less than Twenty Thousand
Pesos (P20,000.00) but not more than Two Hundred Thousand Pesos (P200,000.00) or both fine and
imprisonment at the discretion of the court.
SEC. 13. Civil and Criminal Liability, Not Barred. - The finding of administrative liability under this
Act shall not be a bar to the filing of criminal, civil or other related charges under existing laws arising
from the same act or omission as herein enumerated.
SEC. 14. Administrative Jurisdiction. - The administrative jurisdiction on any violation of the
provisions of this Act shall be vested in either the Civil Service Commission (CSC), the Presidential AntiGraft Commission (PAGC) or the Office of the Ombudsman as determined by appropriate laws and
issuances.
SEC. 15. Immunity; Discharge of Co-Respondent/Accused to be a Witness. - Any public official
or employee or any person having been charged with another under this Act and who voluntarily gives
information pertaining to an investigation or who willingly testifies therefore, shall be exempt from
prosecution in the case/s where his/her information and testimony are given. The discharge may be
granted and directed by the investigating body or court upon the application or petition of any of the
respondent/accused-informant and before the termination of the investigation: Provided, That:
(a) There is absolute necessity for the testimony of the respondent/accused-informant whose
discharge is requested;
(b) There is no other direct evidence available for the proper prosecution of the offense
committed, except the testimony of said respondent/accused-informant;
(c) The testimony of said respondent/accused-informant can be substantially corroborated in its
material points;
(d) The responden/accused-informant has not been previously convicted of a crime involving
moral turpitude; and
(e) Said responden/accused-informant does not appear to be the most guilty.
Evidence adduced in support of the discharge shall automatically form part of the records of the
investigation. Should the investigating body or court deny the motion or request for discharge as a
witness, his/her sworn statement shall be inadmissible as evidence.
SEC. 16. Implementing Rules and Regulations. - The Civil Service Commission in coordination with
the Development Academy of the Philippines (DAP), the Office of the Ombudsman and the Presidential

29

Anti-Graft Commission (PAGC), shall promulgate the necessary rules and regulations within ninety (90)
days from the effectivity of this Act.
SEC. 17. Separability Clause. - If any provision of this Act shall be declared invalid or
unconstitutional, such declaration shall not affect the validity of the remaining provisions of this Act.
SEC. 18. Repealing Clause. - All provisions of laws, presidential decrees, letters of instruction and
other presidential issuances which are incompatible or inconsistent with the provisions of this Act are
hereby deemed amended or repealed.
SEC. 19. Effectivity. - This Act shall take effect within fifteen (15) days following its publication in
the Official Gazette or in two (2) national newspapers of general circulation.
Approved,
JOSE DE VENECIA JR.
Speaker of the House of
Representatives

MANNY VILLAR
President of the Senate

This Act which is a consolidation of Senate Bill No. 2589 and House Bill No. 3776 was finally passed by
the Senate and the House of Representatives on February 8, 2007 and February 20, 2007 respectively.
ROBERTO P. NAZARENO
Secretary General
House of Representatives

OSCAR G. YABES
Secretary of Senate

Approved: JUN 02, 2007

REPUBLIC ACT NO. 9160

September 29, 2001

AN ACT DEFINING THE CRIME OF MONEY LAUNDERING, PROVIDING PENALTIES THEREFOR

AND FOR OTHER PURPOSES
Be it enacted by the Senate and House of Representatives of the Philippines in Congress assembled:
Section 1. Short Title. This Act shall be known as the "Anti-Money Laundering Act of 2001."
Section 2. Declaration of Policy. It is hereby declared the policy of the State to protect and preserve
the integrity and confidentiality of bank accounts and to ensure that the Philippines shall not be used as
a money laundering site for the proceeds of any unlawful activity. Consistent with its foreign policy, the
State shall extend cooperation in transnational investigations and prosecutions of persons involved in
money laundering activities whenever committed.
Section 3. Definitions. For purposes of this Act, the following terms are hereby defined as follows:
(a) "Covered Institution" refers to:
(1) banks, non-banks, quasi-banks, trust entities, and all other institutions and their
subsidiaries and affiliates supervised or regulated by the Bangko Sentral ng Pilipinas
(BSP);
(2) Insurance companies and all other institutions supervised or regulated by the
Insurance Commission; and
(3) (i) securities dealers, brokers, salesmen, investment houses and other similar entities
managing securities or rendering services as investment agent, advisor, or consultant, (ii)
mutual funds, close and investment companies, common trust funds, pre-need
companies and other similar entities, (iii) foreign exchange corporations, money
changers, money payment, remittance, and transfer companies and other similar entities,
and (iv) other entities administering or otherwise dealing in currency, commodities or
financial derivatives based thereon, valuable objects, cash substitutes and other similar
monetary instruments or property supervised or regulated by Securities and Exchange
Commission.
(b) "Covered transaction" is a single, series, or combination of transactions involving a total
amount in excess of Four million Philippine pesos (Php4,000,000.00) or an equivalent amount in
foreign currency based on the prevailing exchange rate within five (5) consecutive banking days
except those between a covered institution and a person who, at the time of the transaction was
a properly identified client and the amount is commensurate with the business or financial
capacity of the client; or those with an underlying legal or trade obligation, purpose, origin or
economic justification.

30

It likewise refers to a single, series or combination or pattern of unusually large and complex
transactions in excess of Four million Philippine pesos (Php4,000,000.00) especially cash
deposits and investments having no credible purpose or origin, underlying trade obligation or
contract.
(c) "Monetary Instrument" refers to:
(1) coins or currency of legal tender of the Philippines, or of any other country;
(2) drafts, checks and notes;
(3) securities or negotiable instruments, bonds, commercial papers, deposit certificates,
trust certificates, custodial receipts or deposit substitute instruments, trading orders,
transaction tickets and confirmations of sale or investments and money marked
instruments; and
(4) other similar instruments where title thereto passes to another by endorsement,
assignment or delivery.
(d) "Offender" refers to any person who commits a money laundering offense.
(e) "Person" refers to any natural or juridical person.
(f) "Proceeds" refers to an amount derived or realized from an unlawful activity.
(g) "Supervising Authority" refers to the appropriate supervisory or regulatory agency,
department or office supervising or regulating the covered institutions enumerated in Section
3(a).
(h) "Transaction" refers to any act establishing any right or obligation or giving rise to any
contractual or legal relationship between the parties thereto. It also includes any movement of
funds by any means with a covered institution.
(l) "Unlawful activity" refers to any act or omission or series or combination thereof involving
or having relation to the following:
(1) Kidnapping for ransom under Article 267 of Act No. 3815, otherwise known as the
Revised Penal Code, as amended;
(2) Sections 3, 4, 5, 7, 8 and 9 of Article Two of Republic Act No. 6425, as amended,
otherwise known as the Dangerous Drugs Act of 1972;
(3) Section 3 paragraphs B, C, E, G, H and I of Republic Act No. 3019, as amended;
otherwise known as the Anti-Graft and Corrupt Practices Act;
(4) Plunder under Republic Act No. 7080, as amended;
(5) Robbery and extortion under Articles 294, 295, 296, 299, 300, 301 and 302 of the
Revised Penal Code, as amended;
(6) Jueteng and Masiao punished as illegal gambling under Presidential Decree No. 1602;
(7) Piracy on the high seas under the Revised Penal Code, as amended and Presidential
Decree No. 532;
(8) Qualified theft under, Article 310 of the Revised Penal Code, as amended;
(9) Swindling under Article 315 of the Revised Penal Code, as amended;
(10) Smuggling under Republic Act Nos. 455 and 1937;
(11) Violations under Republic Act No. 8792, otherwise known as the Electronic
Commerce Act of 2000;
(12) Hijacking and other violations under Republic Act No. 6235; destructive arson and
murder, as defined under the Revised Penal Code, as amended, including those
perpetrated by terrorists against non-combatant persons and similar targets;
(13) Fraudulent practices and other violations under Republic Act No. 8799, otherwise
known as the Securities Regulation Code of 2000;

31

(14) Felonies or offenses of a similar nature that are punishable under the penal laws of
other countries.
Section 4. Money Laundering Offense. Money laundering is a crime whereby the proceeds of an
unlawful activity are transacted, thereby making them appear to have originated from legitimate
sources. It is committed by the following:
(a) Any person knowing that any monetary instrument or property represents, involves, or
relates to the proceeds of any unlawful activity, transacts or attempts to transact said monetary
instrument or property.
(b) Any person knowing that any monetary instrument or property involves the proceeds of any
unlawful activity, performs or fails to perform any act as a result of which he facilitates the
offense of money laundering referred to in paragraph (a) above.
(c) Any person knowing that any monetary instrument or property is required under this Act to
be disclosed and filed with the Anti-Money Laundering Council (AMLC), fails to do so.
Section 5. Jurisdiction of Money Laundering Cases. The regional trial courts shall have jurisdiction to
try all cases on money laundering. Those committed by public officers and private persons who are in
conspiracy with such public officers shall be under the jurisdiction of the Sandiganbayan.
Section 6. Prosecution of Money Laundering.
(a) Any person may be charged with and convicted of both the offense of money laundering and
the unlawful activity as herein defined.
(b) Any proceeding relating to the unlawful activity shall be given precedence over the
prosecution of any offense or violation under this Act without prejudice to the freezing and other
remedies provided.
Section 7. Creation of Anti-Money Laundering Council (AMLC). The Anti-Money Laundering Council is
hereby created and shall be composed of the Governor of the Bangko Sentral ng Pilipinas as chairman,
the Commissioner of the Insurance Commission and the Chairman of the Securities and Exchange
Commission as members. The AMLC shall act unanimously in the discharge of its functions as defined
hereunder:
(1) to require and receive covered transaction reports from covered institutions;
(2) to issue orders addressed to the appropriate Supervising Authority or the covered institution
to determine the true identity of the owner of any monetary instrument or property subject of a
covered transaction report or request for assistance from a foreign State, or believed by the
Council, on the basis of substantial evidence to be in whole or in part, whenever located,
representing, involving, or related to, directly or indirectly, in any manner or by any means, the
proceeds of an unlawful activity;
(3) to institute civil forfeiture proceedings and all other remedial proceedings through the Office
of the Solicitor General;
(4) to cause the filing of complaints with the Department of Justice or the Ombudsman for the
prosecution of money laundering offenses;
(5) to initiate investigations of covered transactions, money laundering activities and other
violations of this Act;
(6) to freeze any monetary instrument or property alleged to be proceed of any unlawful activity;
(7) to implement such measures as may be necessary and justified under this Act to counteract
money laundering;
(8) to receive and take action in respect of, any request from foreign states for assistance in their
own anti-money laundering operations provided in this Act;
(9) to develop educational programs on the pernicious effects of money laundering, the methods
and techniques used in money laundering, the viable means of preventing money laundering
and the effective ways of prosecuting and punishing offenders; and
(10) to enlist the assistance of any branch, department, bureau, office, agency or instrumentality
of the government, including government-owned and controlled corporations, in undertaking
any and all anti-money laundering operations, which may include the use of its personnel,
facilities and resources for the more resolute prevention, detection and investigation of money
laundering offenses and prosecution of offenders.

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Section 8. Creation of a Secretariat. The AMLC is hereby authorized to establish a secretariat to be

headed by an Executive Director who shall be appointed by the Council for a term of five (5) years. He
must be a member of the Philippine Bar, at least thirty-five (35) years of age and of good moral
character, unquestionable integrity and known probity. All members of the Secretariat must have served
for at least five (5) years either in the Insurance Commission, the Securities and Exchange Commission
or the Bangko Sentral ng Pilipinas (BSP) and shall hold full-time permanent positions within the BSP.
Section 9. Prevention of Money Laundering; Customer Identification Requirements and Record
Keeping.
(a) Customer Identification, - Covered institutions shall establish and record the true identity
of its clients based on official documents. They shall maintain a system of verifying the true
identity of their clients and, in case of corporate clients, require a system of verifying their legal
existence and organizational structure, as well as the authority and identification of all persons
purporting to act on their behalf.
The provisions of existing laws to the contrary notwithstanding, anonymous accounts, accounts
under fictitious names, and all other similar accounts shall be absolutely prohibited. Peso and
foreign currency non-checking numbered accounts shall be allowed. The BSP may conduct
annual testing solely limited to the determination of the existence and true identity of the
owners of such accounts.
(b) Record Keeping All records of all transactions of covered institutions shall be maintained
and safely stored for five (5) years from the date of transactions. With respect to closed
accounts, the records on customer identification, account files and business correspondence,
shall be preserved and safety stored for at least five (5) years from the dates when they were
closed.
(c) Reporting of Covered Transactions. Covered institutions shall report to the AMLC all
covered transactions within five (5) working days from occurrence thereof, unless the
Supervising Authority concerned prescribes a longer period not exceeding ten (10) working days.
When reporting covered transactions to the AMLC, covered institutions and their officers, employees,
representatives, agents, advisors, consultants or associates shall not be deemed to have violated
Republic Act No. 1405, as amended; Republic Act No. 6426, as amended; Republic Act No. 8791 and
other similar laws, but are prohibited from communicating, directly or indirectly, in any manner or by
any means, to any person the fact that a covered transaction report was made, the contents thereof, or
any other information in relation thereto. In case of violation thereof, the concerned officer, employee,
representative, agent, advisor, consultant or associate of the covered institution, shall be criminally
liable. However, no administrative, criminal or civil proceedings, shall lie against any person for having
made a covered transaction report in the regular performance of his duties and in good faith, whether
or not such reporting results in any criminal prosecution under this Act or any other Philippine law.
When reporting covered transactions to the AMLC, covered institutions and their officers, employees,
representatives, agents, advisors, consultants or associates are prohibited from communicating, directly
or indirectly, in any manner or by any means, to any person, entity, the media, the fact that a covered
transaction report was made, the contents thereof, or any other information in relation thereto. Neither
may such reporting be published or aired in any manner or form by the mass media, electronic mail, or
other similar devices. In case of violation thereof, the concerned officer, employee, representative,
agent, advisor, consultant or associate of the covered institution, or media shall be held criminally
liable.
Section 10. Authority to Freeze. Upon determination that probable cause exists that any deposit or
similar account is in any way related to an unlawful activity, the AMLC may issue a freeze order, which
shall be effective immediately, on the account for a period not exceeding fifteen (15) days. Notice to the
depositor that his account has been frozen shall be issued simultaneously with the issuance of the
freeze order. The depositor shall have seventy-two (72) hours upon receipt of the notice to explain why
the freeze order should be lifted. The AMLC has seventy-two (72) hours to dispose of the depositor's
explanation. If it falls to act within seventy-two (72) hours from receipt of the depositor's explanation,
the freeze order shall automatically be dissolved. The fifteen (15)-day freeze order of the AMLC may be
extended upon order of the court, provided that the fifteen (15)-day period shall be tolled pending the
court's decision to extend the period.
No court shall issue a temporary restraining order or writ of injunction against any freeze order issued
by the AMLC except the Court of Appeals or the Supreme Court.
Section 11. Authority to inquire into Bank Deposits. Notwithstanding the provisions of Republic Act
No. 1405, as amended; Republic Act No. 6426, as amended; Republic Act No. 8791, and other laws, the
AMLC may inquire into or examine any particular deposit or investment with any banking institution or
non-bank financial institution upon order of any competent court in cases of violation of this Act when it
has been established that there is probable cause that the deposits or investments involved are in any
way related to a money laundering offense: Provided, That this provision shall not apply to deposits and
investments made prior to the effectivity of this Act.

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Section 12. Forfeiture Provisions.

(a) Civil Forfeiture. When there is a covered transaction report made, and the court has, in a
petition filed for the purpose ordered seizure of any monetary instrument or property, in whole or
in part, directly or indirectly, related to said report, the Revised Rules of Court on civil forfeiture
shall apply.
(b) Claim on Forfeited Assets. Where the court has issued an order of forfeiture of the
monetary instrument or property in a criminal prosecution for any money laundering offense
defined under Section 4 of this Act, the offender or any other person claiming an interest therein
may apply, by verified petition, for a declaration that the same legitimately belongs to him and
for segregation or exclusion of the monetary instrument or property corresponding thereto. The
verified petition shall be filed with the court which rendered the judgment of conviction and
order of forfeiture, within fifteen (15) days from the date of the order or forfeiture, in default of
which the said order shall become final and executory. This provision shall apply in both civil and
criminal forfeiture.
(c) Payment in Lieu of Forfeiture. Where the court has issued an order of forfeiture of the
monetary instrument or property subject of a money laundering offense defined under Section 4,
and said order cannot be enforced because any particular monetary instrument or property
cannot, with due diligence, be located, or it has been substantially altered, destroyed,
diminished in value or otherwise rendered worthless by any act or omission, directly or indirectly,
attributable to the offender, or it has been concealed, removed, converted or otherwise
transferred to prevent the same from being found or to avoid forfeiture thereof, or it is located
outside the Philippines or has been placed or brought outside the jurisdiction of the court, or it
has been commingled with other monetary instruments or property belonging to either the
offender himself or a third person or entity, thereby rendering the same difficult to identify or be
segregated for purposes of forfeiture, the court may, instead of enforcing the order of forfeiture
of the monetary instrument or property or part thereof or interest therein, accordingly order the
convicted offender to pay an amount equal to the value of said monetary instrument or property.
This provision shall apply in both civil and criminal forfeiture.
Section 13. Mutual Assistance among States.
(a) Request for Assistance from a Foreign State. Where a foreign State makes a request
for assistance in the investigation or prosecution of a money laundering offense, the AMLC may
execute the request or refuse to execute the same and inform the foreign State of any valid
reason for not executing the request or for delaying the execution thereof. The principles of
mutuality and reciprocity shall, for this purpose, be at all times recognized.
(b) Power of the AMLC to Act on a Request for Assistance from a Foreign State. The
AMLC may execute a request for assistance from a foreign State by: (1) tracking down, freezing,
restraining and seizing assets alleged to be proceeds of any unlawful activity under the
procedures laid down in this Act; (2) giving information needed by the foreign State within the
procedures laid down in this Act; and (3) applying for an order of forfeiture of any monetary
instrument or property in the court: Provided, That the court shall not issue such an order unless
the application is accompanied by an authenticated copy of the order of a court in the requesting
State ordering the forfeiture of said monetary instrument or properly of a person who has been
convicted of a money laundering offense in the requesting State, and a certification of an
affidavit of a competent officer of the requesting State stating that the conviction and the order
of forfeiture are final and then no further appeal lies in respect or either.
(c) Obtaining Assistance from Foreign States. The AMLC may make a request to any
foreign State for assistance in (1) tracking down, freezing, restraining and seizing assets alleged
to be proceeds of any unlawful activity; (2) obtaining information that it needs relating to any
covered transaction, money laundering offense or any other matter directly or indirectly, related
thereto; (3) to the extent allowed by the law of the Foreign State, applying with the proper court
therein for an order to enter any premises belonging to or in the possession or control of, any or
all of the persons named in said request, and/or search any or all such persons named therein
and/or remove any document, material or object named in said request:Provided, That the
documents accompanying the request in support of the application have been duly
authenticated in accordance with the applicable law or regulation of the foreign State; and (4)
applying for an order of forfeiture of any monetary instrument or property in the proper court in
the foreign State:Provided, That the request is accompanied by an authenticated copy of the
order of the regional trial court ordering the forfeiture of said monetary instrument or property of
a convicted offender and an affidavit of the clerk of court stating that the conviction and the
order of forfeiture are final and that no further appeal lies in respect of either.
(d) Limitations on Request for Mutual Assistance. The AMLC may refuse to comply with
any request for assistance where the action sought by the request contravenes any provision of
the Constitution or the execution of a request is likely to prejudice the national interest of the
Philippines unless there is a treaty between the Philippines and the requesting State relating to
the provision of assistance in relation to money laundering offenses.

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(e) Requirements for Requests for Mutual Assistance from Foreign State. A request for
mutual assistance from a foreign State must (1) confirm that an investigation or prosecution is
being conducted in respect of a money launderer named therein or that he has been convicted
of any money laundering offense; (2) state the grounds on which any person is being
investigated or prosecuted for money laundering or the details of his conviction; (3) gives
sufficient particulars as to the identity of said person; (4) give particulars sufficient to identity
any covered institution believed to have any information, document, material or object which
may be of assistance to the investigation or prosecution; (5) ask from the covered institution
concerned any information, document, material or object which may be of assistance to the
investigation or prosecution; (6) specify the manner in which and to whom said information,
document, material or object detained pursuant to said request, is to be produced; (7) give all
the particulars necessary for the issuance by the court in the requested State of the writs, orders
or processes needed by the requesting State; and (8) contain such other information as may
assist in the execution of the request.
(f) Authentication of Documents. For purposes of this Section, a document is authenticated
if the same is signed or certified by a judge, magistrate or equivalent officer in or of, the
requesting State, and authenticated by the oath or affirmation of a witness or sealed with an
official or public seal of a minister, secretary of State, or officer in or of, the government of the
requesting State, or of the person administering the government or a department of the
requesting territory, protectorate or colony. The certificate of authentication may also be made
by a secretary of the embassy or legation, consul general, consul, vice consul, consular agent or
any officer in the foreign service of the Philippines stationed in the foreign State in which the
record is kept, and authenticated by the seal of his office.
(g) Extradition. The Philippines shall negotiate for the inclusion of money laundering offenses
as herein defined among extraditable offenses in all future treaties.
Section 14. Penal Provisions.
(a) Penalties for the Crime of Money Laundering. The penalty of imprisonment ranging
from seven (7) to fourteen (14) years and a fine of not less than Three million Philippine pesos
(Php 3,000,000.00) but not more than twice the value of the monetary instrument or property
involved in the offense, shall be imposed upon a person convicted under Section 4(a) of this Act.
The penalty of imprisonment from four (4) to seven (7) years and a fine of not less than One
million five hundred thousand Philippine pesos (Php 1,500,000.00) but not more than Three
million Philippine pesos (Php 3,000,000.00), shall be imposed upon a person convicted under
Section 4(b) of this Act.
The penalty of imprisonment from six (6) months to four (4) years or a fine of not less than One
hundred thousand Philippine pesos (Php 100,000.00) but not more than Five hundred thousand
Philippine pesos (Php 500,000.00), or both, shall be imposed on a person convicted under
Section 4(c) of this Act.
(b) Penalties for Failure to Keep Records. The penalty of imprisonment from six (6) months
to one (1) year or a fine of not less than One hundred thousand Philippine pesos (Php
100,000.00) but not more than Five hundred thousand Philippine pesos (Php 500,000.00), or
both, shall be imposed on a person convicted under Section 9(b) of this Act.
(c) Malicious Reporting. Any person who, with malice, or in bad faith, report or files a
completely unwarranted or false information relative to money laundering transaction against
any person shall be subject to a penalty of six (6) months to four (4) years imprisonment and a
fine of not less than One hundred thousand Philippine pesos (Php 100,000.00) but not more than
Five hundred thousand Philippine pesos (Php 500,000.00), at the discretion of the
court: Provided, That the offender is not entitled to avail the benefits of the Probation Law.
If the offender is a corporation, association, partnership or any juridical person, the penalty shall
be imposed upon the responsible officers, as the case may be, who participated in the
commission of the crime or who shall have knowingly permitted or failed to prevent its
commission. If the offender is a juridical person, the court may suspend or revoke its license. If
the offender is an alien, he shall, in addition to the penalties herein prescribed, be deported
without further proceedings after serving the penalties herein prescribed. If the offender is a
public official or employee, he shall, in addition to the penalties prescribed herein, suffer
perpetual or temporary absolute disqualification from office, as the case may be;
Any public official or employee who is called upon to testify and refuses to do the same or
purposely fails to testify shall suffer the same penalties prescribed herein.
(d) Breach of Confidentiality. The punishment of imprisonment ranging from three (3) to eight
(8) years and a fine of not less than Five hundred thousand Philippine pesos (Php 500,000.00)
but not more than One million Philippine pesos (Php 1,000,000.00), shall be imposed on a person
convicted for a violation under Section 9(c).

35

Section 15. System of Incentives and Rewards. A system of special incentives and rewards is hereby
established to be given to the appropriate government agency and its personnel that led and initiated
an investigation, prosecution and conviction of persons involved in the offense penalized in Section 4 of
this Act.
Section 16. Prohibitions Against Political Harassment. This Act shall not be used for political
prosecution or harassment or as an instrument to hamper competition in trade and commerce.
No case for money laundering may be filed against and no assets shall be frozen, attached or forfeited
to the prejudice of a candidate for an electoral office during an election period.
Section 17. Restitution. Restitution for any aggrieved party shall be governed by the provisions of the
New Civil Code.
Section 18. Implementing Rules and Regulations. Within thirty (30) days from the effectivity of this
Act, the Bangko Sentral ng Pilipinas, the Insurance Commission and the Securities and Exchange
Commission shall promulgate the rules and regulations to implement effectivity the provisions of this
Act. Said rules and regulations shall be submitted to the Congressional Oversight Committee for
approval.
Covered institutions shall formulate their respective money laundering prevention programs in
accordance with this Act including, but not limited to, information dissemination on money laundering
activities and its prevention, detection and reporting, and the training of responsible officers and
personnel of covered institutions.
Section 19. Congressional Oversight Committee. There is hereby created a Congressional Oversight
Committee composed of seven (7) members from the Senate and seven (7) members from the House of
Representatives. The members from the Senate shall be appointed by the Senate President based on
the proportional representation of the parties or coalitions therein with at least two (2) Senators
representing the minority. The members from the House of Representatives shall be appointed by the
Speaker also based on proportional representation of the parties or coalitions therein with at least two
(2) members representing the minority.
The Oversight Committee shall have the power to promulgate its own rules, to oversee the
implementation of this Act, and to review or revise the implementing rules issued by the Anti-Money
Laundering Council within thirty (30) days from the promulgation of the said rules.
Section 20. Appropriations Clause. The AMLC shall be provided with an initial appropriation of
Twenty-five million Philippine pesos (Php 25,000,000.00) to be drawn from the national government.
Appropriations for the succeeding years shall be included in the General Appropriations Act.
Section 21. Separability Clause. If any provision or section of this Act or the application thereof to
any person or circumstance is held to be invalid, the other provisions or sections of this Act, and the
application of such provision or section to other persons or circumstances, shall not be affected thereby.
Section 22. Repealing Clause. All laws, decrees, executive orders, rules and regulations or parts
thereof, including the relevant provisions of Republic Act No. 1405, as amended; Republic Act No. 6426,
as amended; Republic Act No. 8791, as amended and other similar laws, as are inconsistent with this
Act, are hereby repealed, amended or modified accordingly.
Section 23. Effectivity. 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.
The provisions of this Act shall not apply to deposits and investments made prior to its effectivity.
Approved: September 29, 2001
REPUBLIC ACT No. 1379
AN ACT DECLARING FORFEITURE IN FAVOR OF THE STATE ANY PROPERTY FOUND TO HAVE
BEEN UNLAWFULLY ACQUIRED BY ANY PUBLIC OFFICER OR EMPLOYEE AND PROVIDING FOR
THE PROCEEDINGS THEREFOR.
Section 1. Definitions. (a) For the purposes of this Act, a "public officer or employee" means any
person holding any public office or employment by virtue of an appointment, election or contract, and
any person holding any office or employment, by appointment or contract, in any State owned or
controlled corporation or enterprise.
(b) "Other legitimately acquired property" means any real or personal property, money or
securities which the respondent has at any time acquired by inheritance and the income thereof,
or by gift inter vivos before his becoming a public officer or employee, or any property (or
income thereof) already pertaining to him when he qualified for public office or employment, or
the fruits and income of the exclusive property of the respondent's spouse. It shall not include:

36

1. Property unlawfully acquired by the respondent, but its ownership is concealed by its
being recorded in the name of, or held by, the respondent's spouse, ascendants,
descendants, relatives, or any other person.
2. Property unlawfully acquired by the respondent, but transferred by him to another
person or persons on or after the effectivity of this Act.
3. Property donated to the respondent during his incumbency, unless he can prove to the
satisfaction of the court that the donation is lawful.
Section 2. Filing of petition. Whenever any public officer or employee has acquired during his
incumbency an amount of property which is manifestly out of proportion to his salary as such public
officer or employee and to his other lawful income and the income from legitimately acquired property,
said property shall be presumed prima facie to have been unlawfully acquired. The Solicitor General,
upon complaint by any taxpayer to the city or provincial fiscal who shall conduct a previous inquiry
similar to preliminary investigations in criminal cases and shall certify to the Solicitor General that there
is reasonable ground to believe that there has been committed a violation of this Act and the
respondent is probably guilty thereof, shall file, in the name and on behalf of the Republic of the
Philippines, in the Court of First Instance of the city or province where said public officer or employee
resides or holds office, a petition for a writ commanding said officer or employee to show cause why the
property aforesaid, or any part thereof, should not be declared property of the State: Provided, That no
such petition shall be filed within one year before any general election or within three months before
any special election.
The resignation, dismissal or separation of the officer or employee from his office or employment in the
Government or in the Government-owned or controlled corporation shall not be a bar to the filing of the
petition:Provided, however, That the right to file such petition shall prescribe after four years from the
date of the resignation, dismissal or separation or expiration of the term of the office or employee
concerned, except as to those who have ceased to hold office within ten years prior to the approval of
this Act, in which case the proceedings shall prescribe after four years from the approval hereof.
Section 3. The petition. The petition shall contain the following information:
(a) The name and address of the respondent.
(b) The public officer or employment he holds and such other public offices or employment which
he has previously held.
(c) The approximate amount of property he has acquired during his incumbency in his past and
present offices and employments.
(d) A description of said property, or such thereof as has been identified by the Solicitor General.
(e) The total amount of his government salary and other proper earnings and incomes from
legitimately acquired property, and
(f) Such other information as may enable the court to determine whether or not the respondent
has unlawfully acquired property during his incumbency.
Section 4. Period for the answer. The respondent shall have a period of fifteen days within which to
present his answer.
Section 5. Hearing. The Court shall set a date for a hearing, which may be open to the public, and
during which the respondent shall be given ample opportunity to explain, to the satisfaction of the
court, how he has acquired the property in question.
Section 6. Judgment. If the respondent is unable to show to the satisfaction of the court that he has
lawfully acquired the property in question, then the court shall declare such property, forfeited in favor
of the State, and by virtue of such judgment the property aforesaid shall become property of the
State: Provided, That no judgment shall be rendered within six months before any general election or
within three months before any special election. The Court may, in addition, refer this case to the
corresponding Executive Department for administrative or criminal action, or both.
Section 7. Appeal. The parties may appeal from the judgment of the Court of First Instance as provided
in the Rules of Court for appeals in civil cases.
Section 8. Protection against self-incrimination. Neither the respondent nor any other person shall be
excused from attending and testifying or from producing books, papers, correspondence, memoranda
and other records on the ground that the testimony or evidence, documentary or otherwise, required of
him may tend to incriminate him or subject him to prosecution; but no individual shall be prosecuted
criminally for or on account of any transaction, matter or thing concerning which he is compelled, after
having claimed his privilege against self-incrimination, to testify or produce evidence, documentary or

37

otherwise, except that such individual so testifying shall not be exempt from prosecution and conviction
for perjury or false testimony committed in so testifying or from administrative proceedings.
Section 9. Immunity. The Solicitor General may grant immunity from criminal prosecution to any
person who testifies to the unlawful manner in which the respondent has acquired any of the property in
question in cases where such testimony is necessary to prove violations of this Act.
Section 10. Effect of record of title. The fact that any real property has been recorded in the Registry of
Property or office of the Register of Deeds in the name of the respondent or of any person mentioned in
paragraphs (1) and (2) of subsection (b) of section one hereof shall not prevent the rendering of the
judgment referred to in section six of this Act.
Section 11. Laws on prescription. The laws concerning acquisitive prescription and limitation of actions
cannot be invoked by, nor shall they benefit the respondent, in respect of any property unlawfully
acquired by him.
Section 12. Penalties. Any public officer or employee who shall, after the effective date of this Act,
transfer or convey any unlawfully acquired property shall be repressed with imprisonment for a term not
exceeding five years, or a fine not exceeding ten thousand pesos, or both such imprisonment and fine.
The same repression shall be imposed upon any person who shall knowingly accept such transfer or
conveyance.
Section 13. Separability of provisions. If any provision of this Act or the application thereof to any
person or circumstance, is held invalid, the remainder of the Act and the application of such provision to
other persons or circumstances shall not be affected thereby.
Section 14. Effective date. This Act shall take effect on its approval, and shall apply not only to
property thereafter unlawfully acquired but also to property unlawfully acquired before the effective
date of this Act.
Approved: June 18, 1955
Republic Act No. 6713

February 20, 1989

AN ACT ESTABLISHING A CODE OF CONDUCT AND ETHICAL STANDARDS FOR PUBLIC

OFFICIALS AND EMPLOYEES, TO UPHOLD THE TIME-HONORED PRINCIPLE OF PUBLIC OFFICE
BEING A PUBLIC TRUST, GRANTING INCENTIVES AND REWARDS FOR EXEMPLARY SERVICE,
ENUMERATING PROHIBITED ACTS AND TRANSACTIONS AND PROVIDING PENALTIES FOR
VIOLATIONS THEREOF AND FOR OTHER PURPOSES
Be it enacted by the Senate and House of Representatives of the Philippines in Congress assembled::
Section 1. Title. - This Act shall be known as the "Code of Conduct and Ethical Standards for Public
Officials and Employees."
Section 2. Declaration of Policies. - It is the policy of the State to 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 3. Definition of Terms. - As used in this Act, the term:
(a) "Government" includes the National Government, the local governments, and all other
instrumentalities, agencies or branches of the Republic of the Philippines including governmentowned or controlled corporations, and their subsidiaries.lawphi1.net
(b) "Public Officials" includes elective and appointive officials and employees, permanent or
temporary, whether in the career or non-career service, including military and police personnel,
whether or not they receive compensation, regardless of amount.
(c) "Gift" refers to a thing or a right to dispose of gratuitously, or any act or liberality, in favor of
another who accepts it, and shall include a simulated sale or an ostensibly onerous disposition
thereof. It shall not include an unsolicited gift of nominal or insignificant value not given in
anticipation of, or in exchange for, a favor from a public official or employee.
(d) "Receiving any gift" includes the act of accepting directly or indirectly, a gift from a person
other than a member of his family or relative as defined in this Act, even on the occasion of a
family celebration or national festivity like Christmas, if the value of the gift is neither nominal
nor insignificant, or the gift is given in anticipation of, or in exchange for, a favor.
(e) "Loan" covers both simple loan and commodatum as well as guarantees, financing
arrangements or accommodations intended to ensure its approval.

38

(f) "Substantial stockholder" means any person who owns, directly or indirectly, shares of stock
sufficient to elect a director of a corporation. This term shall also apply to the parties to a voting
trust.
(g) "Family of public officials or employees" means their spouses and unmarried children under
eighteen (18) years of age.
(h) "Person" includes natural and juridical persons unless the context indicates otherwise.
(i) "Conflict of interest" arises when a public official or employee is a member of a board, an
officer, or a substantial stockholder of a private corporation or owner or has a substantial interest
in a business, and the interest of such corporation or business, or his rights or duties therein,
may be opposed to or affected by the faithful performance of official duty.
(j) "Divestment" is the transfer of title or disposal of interest in property by voluntarily,
completely and actually depriving or dispossessing oneself of his right or title to it in favor of a
person or persons other than his spouse and relatives as defined in this Act.
(k) "Relatives" refers to any and all persons related to a public official or employee within the
fourth civil degree of consanguinity or affinity, including bilas, inso and balae.
Section 4. Norms of Conduct of Public Officials and Employees. - (A) Every public official and employee
shall observe the following as standards of personal conduct in the discharge and execution of official
duties:
(a) Commitment to public interest. - Public officials and employees shall always uphold
the public interest over and above personal interest. All government resources and
powers of their respective offices must be employed and used efficiently, effectively,
honestly and economically, particularly to avoid wastage in public funds and revenues.
(b) Professionalism. - Public officials and employees shall perform and discharge their
duties with the highest degree of excellence, professionalism, intelligence and skill. They
shall enter public service with utmost devotion and dedication to duty. They shall
endeavor to discourage wrong perceptions of their roles as dispensers or peddlers of
undue patronage.
(c) Justness and sincerity. - Public officials and employees shall remain true to the people
at all times. They must act with justness and sincerity and shall not discriminate against
anyone, especially the poor and the underprivileged. They shall at all times respect the
rights of others, and shall refrain from doing acts contrary to law, good morals, good
customs, public policy, public order, public safety and public interest. They shall not
dispense or extend undue favors on account of their office to their relatives whether by
consanguinity or affinity except with respect to appointments of such relatives to
positions considered strictly confidential or as members of their personal staff whose
terms are coterminous with theirs.
(d) Political neutrality. - Public officials and employees shall provide service to everyone
without unfair discrimination and regardless of party affiliation or preference.
(e) Responsiveness to the public. - Public officials and employees shall extend prompt,
courteous, and adequate service to the public. Unless otherwise provided by law or when
required by the public interest, public officials and employees shall provide information of
their policies and procedures in clear and understandable language, ensure openness of
information, public consultations and hearings whenever appropriate, encourage
suggestions, simplify and systematize policy, rules and procedures, avoid red tape and
develop an understanding and appreciation of the socio-economic conditions prevailing in
the country, especially in the depressed rural and urban areas.
(f) Nationalism and patriotism. - Public officials and employees shall at all times be loyal
to the Republic and to the Filipino people, promote the use of locally produced goods,
resources and technology and encourage appreciation and pride of country and people.
They shall endeavor to maintain and defend Philippine sovereignty against foreign
intrusion.
(g) Commitment to democracy. - Public officials and employees shall commit themselves
to the democratic way of life and values, maintain the principle of public accountability,
and manifest by deeds the supremacy of civilian authority over the military. They shall at
all times uphold the Constitution and put loyalty to country above loyalty to persons or
party.
(h) Simple living. - Public officials and employees and their families shall lead modest
lives appropriate to their positions and income. They shall not indulge in extravagant or
ostentatious display of wealth in any form.

39

(B) The Civil Service Commission shall adopt positive measures to promote (1) observance of
these standards including the dissemination of information programs and workshops authorizing
merit increases beyond regular progression steps, to a limited number of employees recognized
by their office colleagues to be outstanding in their observance of ethical standards; and (2)
continuing research and experimentation on measures which provide positive motivation to
public officials and employees in raising the general level of observance of these standards.
Section 5. Duties of Public Officials and Employees. - In the performance of their duties, all public
officials and employees are under obligation to:lawphi1.net
(a) Act promptly on letters and requests. - All public officials and employees shall, within fifteen
(15) working days from receipt thereof, respond to letters, telegrams or other means of
communications sent by the public. The reply must contain the action taken on the request.
(b) Submit annual performance reports. - All heads or other responsible officers of offices and
agencies of the government and of government-owned or controlled corporations shall, within
forty-five (45) working days from the end of the year, render a performance report of the agency
or office or corporation concerned. Such report shall be open and available to the public within
regular office hours.
(c) Process documents and papers expeditiously. - All official papers and documents must be
processed and completed within a reasonable time from the preparation thereof and must
contain, as far as practicable, not more than three (3) signatories therein. In the absence of duly
authorized signatories, the official next-in-rank or officer in charge shall sign for and in their
behalf.
(d) Act immediately on the public's personal transactions. - All public officials and employees
must attend to anyone who wants to avail himself of the services of their offices and must, at all
times, act promptly and expeditiously.
(e) Make documents accessible to the public. - All public documents must be made accessible to,
and readily available for inspection by, the public within reasonable working hours.
Section 6. System of Incentives and Rewards. - A system of annual incentives and rewards is hereby
established in order to motivate and inspire public servants to uphold the highest standards of ethics.
For this purpose, a Committee on Awards to Outstanding Public Officials and Employees is hereby
created composed of the following: the Ombudsman and Chairman of the Civil Service Commission as
Co-Chairmen, and the Chairman of the Commission on Audit, and two government employees to be
appointed by the President, as members.
It shall be the task of this Committee to conduct a periodic, continuing review of the performance of
public officials and employees, in all the branches and agencies of Government and establish a system
of annual incentives and rewards to the end that due recognition is given to public officials and
employees of outstanding merit on the basis of the standards set forth in this Act.
The conferment of awards shall take into account, among other things, the following: the years of
service and the quality and consistency of performance, the obscurity of the position, the level of salary,
the unique and exemplary quality of a certain achievement, and the risks or temptations inherent in the
work. Incentives and rewards to government officials and employees of the year to be announced in
public ceremonies honoring them may take the form of bonuses, citations, directorships in governmentowned or controlled corporations, local and foreign scholarship grants, paid vacations and the like. They
shall likewise be automatically promoted to the next higher position with the commensurate salary
suitable to their qualifications. In case there is no next higher position or it is not vacant, said position
shall be included in the budget of the office in the next General Appropriations Act. The Committee on
Awards shall adopt its own rules to govern the conduct of its activities.
Section 7. Prohibited Acts and Transactions. - In addition to acts and omissions 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) Financial and material interest. - Public officials and employees shall not, directly or indirectly,
have any financial or material interest in any transaction requiring the approval of their office.
(b) Outside employment and other activities related thereto. - Public officials and employees
during their incumbency shall not:
(1) Own, control, manage or accept employment 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

40

(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.
(c) Disclosure and/or misuse of confidential information. - Public officials and employees shall not
use or divulge, confidential or classified information officially known to them by reason of their
office and not made available to the public, either:
(1) To further their private interests, or give undue advantage to anyone; or
(2) To prejudice the public interest.
(d) Solicitation or acceptance of gifts. - Public officials and employees shall not solicit or accept,
directly or indirectly, any gift, gratuity, favor, entertainment, loan or anything of monetary value
from any person in the course of their official duties or in connection with any operation being
regulated by, or any transaction which may be affected by the functions of their office.
As to gifts or grants from foreign governments, the Congress consents to:
(i) The acceptance and retention by a public official or employee of a gift of nominal value
tendered and received as a souvenir or mark of courtesy;
(ii) The acceptance by a public official or employee of a gift in the nature of a scholarship
or fellowship grant or medical treatment; or
(iii) The acceptance by a public official or employee of travel grants or expenses for travel
taking place entirely outside the Philippine (such as allowances, transportation, food, and
lodging) of more than nominal value if such acceptance is appropriate or consistent with
the interests of the Philippines, and permitted by the head of office, branch or agency to
which he belongs.
The Ombudsman shall prescribe such regulations as may be necessary to carry out the purpose
of this subsection, including pertinent reporting and disclosure requirements.
Nothing in this Act shall be construed to restrict or prohibit any educational, scientific or cultural
exchange programs subject to national security requirements.
Section 8. Statements and Disclosure. - Public officials and employees have an obligation to
accomplish and submit declarations under oath of, and the public has the right to know, their assets,
liabilities, net worth and financial and business interests including those of their spouses and of
unmarried children under eighteen (18) years of age living in their households.
(A) Statements of Assets and Liabilities and Financial Disclosure. - All public officials and
employees, except those who serve in an honorary capacity, laborers and casual or temporary
workers, shall file under oath their Statement of Assets, Liabilities and Net Worth and a
Disclosure of Business Interests and Financial Connections and those of their spouses and
unmarried children under eighteen (18) years of age living in their households.
The two documents shall contain information on the following:
(a) real property, its improvements, acquisition costs, assessed value and current fair
market value;
(b) personal property and acquisition cost;
(c) all other assets such as investments, cash on hand or in banks, stocks, bonds, and the
like;
(d) liabilities, and;
(e) all business interests and financial connections.
The documents must be filed:
(a) within thirty (30) days after assumption of office;
(b) on or before April 30, of every year thereafter; and

41

(c) within thirty (30) days after separation from the service.
All public officials and employees required under this section to file the aforestated documents
shall also execute, within thirty (30) days from the date of their assumption of office, the
necessary authority in favor of the Ombudsman to obtain from all appropriate government
agencies, including the Bureau of Internal Revenue, such documents as may show their assets,
liabilities, net worth, and also their business interests and financial connections in previous
years, including, if possible, the year when they first assumed any office in the Government.
Husband and wife who are both public officials or employees may file the required statements
jointly or separately.
The Statements of Assets, Liabilities and Net Worth and the Disclosure of Business Interests and
Financial Connections shall be filed by:
(1) Constitutional and national elective officials, with the national office of the
Ombudsman;
(2) Senators and Congressmen, with the Secretaries of the Senate and the House of
Representatives, respectively; Justices, with the Clerk of Court of the Supreme Court;
Judges, with the Court Administrator; and all national executive officials with the Office of
the President.
(3) Regional and local officials and employees, with the Deputy Ombudsman in their
respective regions;
(4) Officers of the armed forces from the rank of colonel or naval captain, with the Office
of the President, and those below said ranks, with the Deputy Ombudsman in their
respective regions; and
(5) All other public officials and employees, defined in Republic Act No. 3019, as
amended, with the Civil Service Commission.
(B) Identification and disclosure of relatives. - It shall be the duty of every public official or employee to
identify and disclose, to the best of his knowledge and information, his relatives in the Government in
the form, manner and frequency prescribed by the Civil Service Commission.
(C) Accessibility of documents. - (1) Any and all statements filed under this Act, shall be made available
for inspection at reasonable hours.
(2) Such statements shall be made available for copying or reproduction after ten (10) working
days from the time they are filed as required by law.
(3) Any person requesting a copy of a statement shall be required to pay a reasonable fee to
cover the cost of reproduction and mailing of such statement, as well as the cost of certification.
(4) Any statement filed under this Act shall be available to the public for a period of ten (10)
years after receipt of the statement. After such period, the statement may be destroyed unless
needed in an ongoing investigation.
(D) Prohibited acts. - It shall be unlawful for any person to obtain or use any statement filed under this
Act for:
(a) any purpose contrary to morals or public policy; or
(b) any commercial purpose other than by news and communications media for dissemination to
the general public.
Section 9. Divestment. - A public official or employee shall avoid conflicts of interest at all times. When
a conflict of interest arises, he shall resign from his position in any private business enterprise within
thirty (30) days from his assumption of office and/or divest himself of his shareholdings or interest
within sixty (60) days from such assumption.
The same rule shall apply where the public official or employee is a partner in a partnership.
The requirement of divestment shall not apply to those who serve the Government in an honorary
capacity nor to laborers and casual or temporary workers.
Section 10. Review and Compliance Procedure. - (a) The designated Committees of both Houses of the
Congress shall establish procedures for the review of statements to determine whether said statements
which have been submitted on time, are complete, and are in proper form. In the event a determination

42

is made that a statement is not so filed, the appropriate Committee shall so inform the reporting
individual and direct him to take the necessary corrective action.
(b) In order to carry out their responsibilities under this Act, the designated Committees of both
Houses of Congress shall have the power within their respective jurisdictions, to render any
opinion interpreting this Act, in writing, to persons covered by this Act, subject in each instance
to the approval by affirmative vote of the majority of the particular House concerned.
The individual to whom an opinion is rendered, and any other individual involved in a similar
factual situation, and who, after issuance of the opinion acts in good faith in accordance with it
shall not be subject to any sanction provided in this Act.
(c) The heads of other offices shall perform the duties stated in subsections (a) and (b) hereof
insofar as their respective offices are concerned, subject to the approval of the Secretary of
Justice, in the case of the Executive Department and the Chief Justice of the Supreme Court, in
the case of the Judicial Department.
Section 11. Penalties. - (a) Any public official or employee, regardless of whether or not he holds office
or employment in a casual, temporary, holdover, permanent or regular capacity, committing any
violation of this Act shall be punished with a fine not exceeding the equivalent of six (6) months' salary
or suspension not exceeding one (1) year, or removal depending on the gravity of the offense after due
notice and hearing by the appropriate body or agency. If the violation is punishable by a heavier penalty
under another law, he shall be prosecuted under the latter statute. Violations of Sections 7, 8 or 9 of
this Act shall be punishable with imprisonment not exceeding five (5) years, or a fine not exceeding five
thousand pesos (P5,000), or both, and, in the discretion of the court of competent jurisdiction,
disqualification to hold public office.
(b) Any violation hereof proven in a proper administrative proceeding shall be sufficient cause for
removal or dismissal of a public official or employee, even if no criminal prosecution is instituted
against him.
(c) Private individuals who participate in conspiracy as co-principals, accomplices or accessories,
with public officials or employees, in violation of this Act, shall be subject to the same penal
liabilities as the public officials or employees and shall be tried jointly with them.
(d) The official or employee concerned may bring an action against any person who obtains or
uses a report for any purpose prohibited by Section 8 (D) of this Act. The Court in which such
action is brought may assess against such person a penalty in any amount not to exceed twentyfive thousand pesos (P25,000). If another sanction hereunder or under any other law is heavier,
the latter shall apply.
Section 12. Promulgation of Rules and Regulations, Administration and Enforcement of this Act. - The
Civil Service Commission shall have the primary responsibility for the administration and enforcement of
this Act. It shall transmit all cases for prosecution arising from violations of this Act to the proper
authorities for appropriate action: Provided, however, That it may institute such administrative actions
and disciplinary measures as may be warranted in accordance with law. Nothing in this provision shall
be construed as a deprivation of the right of each House of Congress to discipline its Members for
disorderly behavior.
The Civil Service Commission is hereby authorized to promulgate rules and regulations necessary to
carry out the provisions of this Act, including guidelines for individuals who render free voluntary service
to the Government. The Ombudsman shall likewise take steps to protect citizens who denounce acts or
omissions of public officials and employees which are in violation of this Act.
Section 13. Provisions for More Stringent Standards. - Nothing in this Act shall be construed to
derogate from any law, or any regulation prescribed by any body or agency, which provides for more
stringent standards for its official and employees.
Section 14. Appropriations. - The sum necessary for the effective implementation of this Act shall be
taken from the appropriations of the Civil Service Commission. Thereafter, such sum as may be needed
for its continued implementation shall be included in the annual General Appropriations Act.
Section 15. Separability Clause. - If any provision of this Act or the application of such provision to any
person or circumstance is declared invalid, the remainder of the Act or the application of such provision
to other persons or circumstances shall not be affected by such declaration.
Section 16. Repealing Clause. - All laws, decrees and orders or parts thereof inconsistent herewith, are
deemed repealed or modified accordingly, unless the same provide for a heavier penalty.
Section 17. Effectivity. - This Act shall take effect after thirty (30) days following the completion of its
publication in the Official Gazette or in two (2) national newspapers of general circulation.
Approved, February 20, 1989.

43

PRESIDENTIAL DECREE No. 46 November 10, 1972

MAKING IT PUNISHABLE FOR PUBLIC OFFICIALS AND EMPLOYEES TO RECEIVE, AND FOR
PRIVATE PERSONS TO GIVE, GIFTS ON ANY OCCASION, INCLUDING CHRISTMAS
WHEREAS, under existing laws and the civil service rules, it is prohibited to receive, directly or
indirectly, any gift, present or any other form of benefit in the course of official duties;
WHEREAS, it is believed necessary to put more teeth to existing laws and regulations to wipe out all
conceivable forms of graft and corruption in the public service, the members of which should not only
be honest but above suspicion and reproach; and
WHEREAS, the stoppage of the practice of gift-giving to government men is a concrete step in the
administration's program of reforms for the development of new moral values in the social structure of
the country, one of the main objectives of the New Society;
NOW, THEREFORE, I, FERDINAND E. MARCOS, President of the Philippines, by virtue of the powers
vested in me by the Constitution as Commander-in-Chief of all the Armed Forces of the Philippines, and
pursuant to Proclamation No. 1081 dated September 21, 1972, and General Order No. 1 dated
September 22, 1972, do hereby make it punishable for any public official or employee, whether of the
national or local governments, to receive, directly or indirectly, and for private persons to give, or offer
to give, any gift, present or other valuable thing to any occasion, including Christmas, when such gift,
present or other valuable thing is given by reason of his official position, regardless of whether or not
the same is for past favor or favors or the giver hopes or expects to receive a favor or better treatment
in the future from the public official or employee concerned in the discharge of his official functions.
Included within the prohibition is the throwing of parties or entertainments in honor of the official or
employees or his immediate relatives.
For violation of this Decree, the penalty of imprisonment for not less than one (1) year nor more than
five (5) years and perpetual disqualification from public office shall be imposed. The official or employee
concerned shall likewise be subject to administrative disciplinary action and, if found guilty, shall be
meted out the penalty of suspension or removal, depending on the seriousness of the offense.
Any provision of law, executive order, rule or regulation or circular inconsistent with this Decree is
hereby repealed or modified accordingly.
This Decree shall take effect immediately after its publication.
Done in the City of Manila, this 10th day of November, in the year of Our Lord, nineteen hundred and
seventy-two.
PRESIDENTIAL DECREE No. 749 July 18, 1975
GRANTING IMMUNITY FROM PROSECUTION TO GIVERS OF BRIBES AND OTHER GIFTS AND TO
THEIR ACCOMPLICES IN BRIBERY AND OTHER GRAFT CASES AGAINST PUBLIC OFFICERS
WHEREAS, public office is a public trust: public officers are but servants of the people, whom they must
serve with utmost fidelity and integrity;
WHEREAS, it has heretofore been virtually impossible to secure the conviction and removal of dishonest
public servants owing to the lack of witnesses: the bribe or gift-givers being always reluctant to testify
against the corrupt public officials and employees concerned for fear of being indicted and convicted
themselves of bribery and corruption;
WHEREAS, it is better by far and more socially desirable, as well as just, that the bribe or gift giver be
granted immunity from prosecution so that he may freely testify as to the official corruption, than that
the official who receives the bribe or gift should be allowed to go free, insolently remaining in public
office, and continuing with his nefarious and corrupt practices, to the great detriment of the public
service and the public interest.
NOW, THEREFORE, I, FERDINAND E. MARCOS, President of the Philippines, by virtue of the powers in me
vested by the Constitution, do hereby decree and order that:
Section 1. Any person who voluntarily gives information about any violation of Articles 210, 211, and
212 of the Revised Penal Code; Republic Act Numbered Three Thousand Nineteen, as amended; Section
345 of the Internal Revenue Code and Section 3604 of the Tariff and Customs Code and other provisions
of the said Codes penalizing abuse or dishonesty on the part of the public officials concerned; and other
laws, rules and regulations punishing acts of graft, corruption and other forms of official abuse; and who
willingly testifies against any public official or employee for such violation shall be exempt from
prosecution or punishment for the offense with reference to which his information and testimony were
given, and may plead or prove the giving of such information and testimony in bar of such prosecution:
Provided; that this immunity may be enjoyed even in cases where the information and testimony are
given against a person who is not a public official but who is a principal, or accomplice, or accessory in

44

the commission of any of the above-mentioned violations: Provided, further, that this immunity may be
enjoyed by such informant or witness notwithstanding that he offered or gave the bribe or gift to the
public official or his accomplice for such gift or bribe-giving; and Provided, finally, that the following
conditions concur:
1. The information must refer to consummated violations of any of the above-mentioned
provisions of law, rules and regulations;
2. The information and testimony are necessary for the conviction of the accused public officer;
3. Such information and testimony are not yet in the possession of the State;
4. Such information and testimony can be corroborated on its material points; and
5. The informant or witness has not been previously convicted of a crime involving moral
turpitude.
Section 2. The immunity granted hereunder shall not attach should it turn out subsequently that the
information and/or testimony is false and malicious or made only for the purpose of harassing,
molesting or in any way prejudicing the public officer denounced. In such a case, the public officer so
denounced shall be entitled to any action, civil or criminal, against said informant or witness.
Section 3. All preliminary investigations conducted by a prosecuting fiscal, judge or committee, and all
proceedings undertaken in connection therewith, shall be strictly confidential or private in order to
protect the reputation of the official under investigation in the event that the report proves to be
unfounded or no prima facie case is established.
Section 4. All acts, decrees and rules and regulations inconsistent with the provisions of this decree are
hereby repealed or modified accordingly.
Section 5. This Decree shall take effect immediately.
DONE in the City of Manila, this 18th day of July, in the year of Our Lord, nineteen hundred and seventyfive.
Republic Act No. 9184

January 10, 2003

AN ACT PROVIDING FOR THE MODERNIZATION, STANDARIZATION AND REGULATION OF THE

PROCUREMENT ACTIVITIES OF THE GOVERNMENT AND FOR OTHER PURPOSES
Be it enacted by the Senate and Hose of Representatives of the Philippines in Congress assembled:
ARTICLE 1
GENERAL PROVISIONS
Section 1. Short Title.- This act shall be known as the " Government Procurement reform Act."
Section 2. Declaration of Policy.- It is the declared policy of the State to promote the ideals of good
governance in all its branches, departments, agencies, subdivisions, and instrumentalities, including
government-owned and/or -controlled corporations and local government units.
Section 3. Governing Principles on Government Procurement.
All procurement of the national government, its departments, bureaus, offices and agencies, including
state universities and colleges, government -owned and/or-controlled corporations, government
financial institutions and local government units, shall, in all cases, be governed by these principles:
(a) Transparency in the procurement process and in the implementation of procurement
contracts.
(b) Competitiveness by extending equal opportunity to enable private contracting parties who
are eligible and qualified to participate in public bidding.
(c) Streamlined procurement process that will uniformly apply to all government procurement.
The procurement process shall simple and made adaptable to advances in modern technology in
order to ensure an effective and efficient method.
(d) System of accountability where both the public officials directly or indirectly involved in the
procurement process as well as in the implementation of procurement contracts and the private
parties that deal with government are, when warranted by circumstances, investigated and held
liable for their actions relative thereto.

45

(e) Public monitoring of the procurement process and the implementation of awarded contracts
with the end in view of guaranteeing that these contracts are awarded pursuant to the provisions
of this Act and its implementing rules and regulations, and that all these contracts are performed
strictly according to specifications.
Section 4. Scope and Application.- This act shall apply to the Procurement of Infrastructure Projects,
Goods and Consulting Services, regardless of source of funds, whether local of foreign, by all branches
and instrumentalities of government, its departments, offices and agencies, including governmentowned and/or-controlled corporations and local government units, subject to the provisions of
Commonwealth Act No. 138. Any treaty or international or executive agreement affecting the subject
matter of this Act to which the Philippine government is signatory shall be observed.
Section 5. Definition of Terms.- For purposes of this Act, the following terms or words and phrases shall
mean or be understood as follows:
(a) Approved Budget for the Contract (ABC) - refers to the budget for the contract duly approved
by the Head of the Procuring Entity, as provided for in the General Appropriations Act and/or
continuing appropriations, in the National Government Agencies; the Corporate Budget for the
contract approved by the governing Boards, pursuant to E.O.No.518, series of 1979, in the case
of Government Financial Institutions and State Universities and Colleges; and the Budget for the
contract approved by the respective Sanggunian, in the case of Local Government Units.
(b) BAC - refers to the Bids and Awards Committee established in accordance with Article V of
this Act.
(c) Bidding Documents - refer to documents issued by the Procuring Entity as the basis for Bids,
furnishing all information necessary for a prospective bidder to prepare a bid for the Goods,
Infrastructure Projects, and Consulting Services to be provided.
(d) Bid - refers to signed offer or proposal submitted by a supplier, manufacturer, distributor,
contractor or consultant in response to the Bidding Documents.
(e) Competitive Bidding - refers to a method of procurement which is open to participation by
any interested party and which consist of the following processes: advertisement, pre-bid
conference, eligibility screening of bids, evaluations of bids, post - qualification, and award of
contract, the specific requirements and mechanics of which shall be defined in the IRR to be
promulgated under this Act.
(f) Consulting Services - refer to services for Infrastructure Projects and other types of projects or
activities of the Government requiring adequate external technical and professional experts that
are beyond the capability and/or capacity of the government to undertake such as, but not
limited to: (I) advisory and review services; (ii) pre investment or feasibility studies; (iii) design;
(iv) construction supervision; (v) management and related services; and (vi) other technical
services or special studies.
(g) G - EPS - refers to the Government Electronic Procurement System as provided in Section 8 of
this Act.
(h) Goods - refer to all items, supplies, materials and general support services, except consulting
services and infrastructure projects, which may be needed in the transaction of the public
businesses or in the pursuit of any government undertaking, project or activity, whether in the
nature of equipment, furniture, stationery, materials for construction, or personal property of any
kind, including non - personal or contractual services such as the repair and maintenance of
equipment and furniture, as well as trucking, hauling, janitorial, security, and related or
analogous services, as well as procurement of materials and supplies provided by the procuring
entity or such services.
(i) GPPB - refers to the Government Procurement Policy Board established in accordance with
Article X of this Act.
(j) Head of the Procuring Entity- refers to: (I) the head of the agency or his duly authorized
official, for national government agencies; (ii) the governing board or its duly authorized official,
for government-owned and/or-controlled corporations; or (iii) the local chief executive, for local
government units. Provided, That in a department, office or agency where the procurement is
decentralized, the Head of each decentralized unit shall be considered as the Head of the
Procuring Entity subject to the limitations and authority delegated by the head of the
department, office or agency.
(k) Infrastructure Projects - include the construction, improvement, rehabilitation, demolition,
repair, restoration or maintenance of roads and bridges, railways, airports, seaports,
communication faci9lities, civil works components of information technology projects, irrigation,
flood control and drainage, water supply, sanitation, sewerage and solid waste management
systems, shore protection, energy/power and electrification facilities, national buildings, school
buildings and other related construction projects of the government.

46

(l) IRR - refer to the implementing rules and regulations to be promulgated in accordance with
Section 75 of this Act.
(m) Portal - refers to a website that aggregates a wide variety of content for the purpose of
attracting a large number of users.
(n) Procurement - refers to the acquisition of Goods, Consulting Services, and the contracting for
Infrastructure Projects by the Procuring Entity. Procurement shall also include the lease of goods
and real estate. With respect to real property, its procurement shall be governed by the
provisions of Republic Act No.8974, entitled "An Act to Facilitate the Acquisition of Right-of -Way
Site or Location of National Government Infrastructure Projects and for Other Purposes" and
other applicable laws, rules and regulations.
(o) Procuring Entity - refers to any branch, department, office, agency, or instrumentality of the
government, including state universities and colleges, government-owned and/or - controlled
corporations, government financial institutions, and local government units procuring Goods,
Consulting Services and Infrastructure Projects.
Section 6. Standardization of Procurement Process and Forms.- To systematize the procurement
process, avoid confusion and ensure transparency, the procurement process, including the forms to be
used, shall be standardized insofar as practicable.
For this purpose, the GPPB shall pursue the development of generic procurement manuals and standard
bidding forms, the use of which once issued shall be mandatory upon all Procuring Entities.
ARTICLE II
PROCUREMENT PLANNING
Section 7. Procurement Planning and Budgeting Linkage- All procurement should be within the
approved budget of the Procuring Entity and should be meticulously and judiciously planned by the
Procuring Entity concerned. Consistent with government fiscal discipline measures, only those
considered crucial to the efficient discharge of governmental functions shall be included in the Annual
Procurement Plan t o be specified in the IRR.
No government Procurement shall be undertaken unless it is in accordance with the approved Annual
Procurement Plan of the Procuring Entity. The Annual Procurement Plan shall be approved by the Head
of the Procuring Entity and must be consistent with its duly approved yearly budget. The Annual
Procurement Plan shall be formulated and revised only in accordance with the guidelines set forth in the
IRR. In the case of Infrastructure Projects, the Plan shall include engineering design and acquisition of
right-of-way.
ARTICLE III
PROCUREMENT BY ELECTRONIC MEANS
Section 8. Procurement By Electronic Means.- To promote transparency and efficiency, information and
communications technology shall be utilized in the conduct of procurement procedures. Accordingly,
there shall be single portal that shall serve as the primary source of information on all government
procurement. The G-EPS shall serve as the primary and definitive source of information on government
procurement. Further, the GPPB is authorized to approve changes in the procurement process to adapt
to improvements in modern technology, provided that such modifications are consistent with provisions
of Section 3 of this Act.
To take advantage of the significant built-in-efficiencies of the G-EPS and the volume discounts inherent
in bulk purchasing, all Procuring Entities shall utilize the G-EPS for the procurement of common supplies
in accordance with the rules and procedures to be established by the GPPB. With regard to the
procurement of non-common use items, infrastructure projects and consulting services, agencies may
hire service providers to undertake their electronic procurement provided these service providers meet
the minimum requirements set by the GPPB.
Section 9. Security, Integrity and Confidentiality.- The G-EPS shall ensure the security, integrity and
confidentiality of documents submitted through the system. It shall include feature that provides for an
audit trail for on-line transactions and allow the Commission on Audit to verify the security and integrity
of the systems at any time.
ARTICLE IV
COMPETITIVE BIDDING
Section 10. Competitive Bidding.- All Procurement shall be done through Competitive Bidding, except
as provided for in Article XVI of this Act.
ARTICLE V
BIDS AND AWARDS COMMITTEE

47

Section 11. The BAC and its Composition.- Each procuring entity shall establish a single BAC for its
procurement. The BAC shall have at least five (5) members, but not more than seven (7) members. It
shall be chaired by at least a third ranking permanent official of the procuring entity other than its head,
and its composition shall be specified in the IRR. Alternatively, as may be deemed fit by the head of the
procuring entity, there may be separate BACs where the number and complexity of the items to be
procured shall so warrant. Similar BACs for decentralized and lower level offices may be formed when
deemed necessary by the head of the procuring entity. The numbers of the BAC shall be designated by
the Head of Procuring Entity. However, in no case shall the approving authority be a member of the BAC.
Unless sooner removed for cause, the members of the BAC shall have a fixed term of one (1) year
reckoned from the date of appointment, renewable at the discretion of the Head of the Procuring Entity.
In case of resignation, retirement, separation, transfer, re-assignment, removal, the replacement shall
serve only for the unexpired term: Provided, That in case of leave or suspension, the replacement shall
serve only for the duration of the leave or suspension. For justifiable causes, a member shall be
suspended or removed by the Head of the Procuring Entity.
Section 12. Functions of the BAC.- shall have the following functions: advertise and/or post the
invitation to bid, conduct pre-procurement and pre-bid conferences, determine the eligibility of
prospective bidders, receive bids, conduct the evaluation of bids, undertake post-qualification
proceedings, recommend award of contracts to the Head of the Procuring Entity of his duly authorized
representative: Provided, That in the event the Head of the Procuring shall disapprove such
recommendation, such disapproval shall be based only on valid, reasonable and justifiable grounds to
be expressed in writing, copy furnished the BAC; recommend the imposition of sanctions in accordance
with Article XXIII, and perform such other related functions as may necessary, including the creation of a
Technical Working Group from a pool of technical, financial and/or legal experts to assist in the
procurement process.
In proper cases, the BAC shall also recommend to the Head of the Procuring Entity the use of Alternative
Methods of Procurement as provided for in Article XVI hereof.
The BAC shall be responsible for ensuring that the Procuring Entity abides by the standards set forth by
this Act and the IRR, and it shall prepare a procurement monitoring report that shall be approved and
submitted by the Head of the Procuring Entity to the GPPB on a semestral basis. The contents and
coverage of this report shall be provided in the IRR.
Section 13. Observers.- To enhance the transparency of the process, the BAC shall, in all stages of the
procurement process, invite, in addition to the representative of the Commission on Audit, at least
two(2) observers to sit in its proceedings, one(1) from a duly recognized private group in a sector or
discipline relevant to the procurement at hand, and the other from a non-government organization:
Provided, however, That they do not have any direct or indirect interest in the contract to be bid out.
The observers should be duly registered with the Securities and Exchange Commission and should meet
the criteria for observers as set forth in the IRR.
Section 14. BAC Secretariat.- To assist the BAC in the conduct of its functions, the Head of the
Procuring Entity shall create a Secretariat that will serve as the main support unit of the BAC. The Head
of the Procuring Entity may also designate an existing organic office within the agency to serve as the
Secretariat.
Section 15. Honoraria of BAC Members.- The Procuring Entity may grant payment of honoraria to the
BAC members in an amount not to exceed twenty five percent (25%) of their respective basic monthly
salary subject to availability of funds. For this purpose, the Department of Budget and Management
(DBM) shall promulgate the necessary guidelines.
Section 16. Professionalization of BAC, BAC Secretariat and Technical Working Group Members.- The
GPPB shall establish a sustained training program for developing the capacity of the BAC's, BAC
Secretariats and technical Working Groups of Procuring Entities, and proffessionalize the same.
ARTICLE VI
PREPARATION OF BIDDING DOCUMENTS
Section 17. Form and Contents of Bidding Documents.- The Bidding Documents shall be prepared by
the Procuring Entity following the standard forms and manuals prescribed by the GPPB. The Bidding
Documents shall include the following:
(a) Approved Budget for the Contract;
(b) Instructions to Bidders, including criteria for eligibility, bid evaluation and post-qualification,
as well as the date, time and place of the pre-bid Conference (where applicable), submission of
bids and opening of bids;
(c) Terms of Reference;
(d) Eligibility Requirements;

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(e) Plans and Technical Specifications;

(f) Form of Bid, Price Form, and List of Goods or Bill of Quantities;
(g) Delivery Time or Completion Schedule;
(h) Form and Amount of Bid Security;
(i) Form and Amount of Performance Security and Warranty; and,
(j) Form of Contract, and General and special Conditions of Contract.
The Procuring Entity may require additional document requirements or specifications necessary to
complete the information required for the bidders to prepare and submit their respective bids.
Section 18. Reference to Brand Names.- Specifications for the Procurement of Goods shall be based on
relevant characteristics and/or performance requirements. Reference to brand names shall not be
allowed.
Section 19. Access to Information.- In all stages of the preparation of the Bidding Documents, the
Procuring entity shall ensure equal access to information. Prior to their official release, no aspect of the
Bidding Documents shall be divulged or released on any prospective bidder or having direct or indirect
interest in the project to be procured.
ARTICLE VII
INVITATION TO BID
Section 20. Pre-Procurement Conference. - Prior to the issuance of the Invitation to Bid, the BAC is
mandated to hold a pre-procurement conference on each and every procurement, except those
contracts below a certain level or amount specified in the IRR, in which case, the holding of the same is
optional.
The pre- procurement conference shall assess the readiness of the procurement in terms of confirming
the certification of availability of funds, as well as reviewing all relevant documents and the draft
Invitation to Bid, as well as consultants hired by the agency concerned and the representative of the
end -user.
Section 21. Advertising and Contents of the Invitation to Bid. - In line with the principle of transparency
and competitiveness, all Invitations to Bid contracts under competitive bidding shall be advertised by
the Procuring Entity in such manner and for such length of time as may be necessary under the
circumstances, in order to ensure the widest possible dissemination thereof, such as, but not limited to,
posting in the Procuring Entity's premises, in newspapers of general circulation, the G-EPS and the
website of the Procuring Entity, if available. The details and mechanics of implementation shall be
provided in the IRR to be promulgated under this Act.
The Invitation to Bid shall contain, among others:
(a) A brief description of the subject matter of the Procurement;
(b) A general statement on the criteria to be used by the Procuring entity for the eligibility check,
the short listing of prospective bidders, in the case of the Procurement of Consulting Services the
examination and evaluation of Bids, and post-qualification;
(c) The date, time and place of the deadlines for the submission and receipt of the eligibility
requirements, the pre-bid conference if any, the submission and receipt of bids, and the opening
of bids;
(d) The Approved Budget for the Contract to be bid;
(e) The source of funds;
(f) The period of availability of the Bidding Documents, and the place where these may be
secured and;
(g) The contract duration; and
(h) Such other necessary information deemed relevant by the Procuring Entity.
Section 22. Pre-bid Conference. - At least one pre-bid conference shall be conducted for each
procurement, unless otherwise provided in the IRR. Subject to the approval of the BAC, a pre-bid
conference may also be conducted upon the written request of any prospective bidder.

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The Pre-bid conference(s) shall be held within a reasonable period before the deadline for receipt of the
bids to allow prospective bidders to adequately prepare their bids, which shall be specified in the IRR.
ARTICLE VIII
RECEIPT AND OPENING OF BIDS
Section 23. Eligibility Requirements for the Procurement of Goods and Infrastructure Projects.- The
BAC or, under special circumstances specified in IRR, its duly designated organic office shall determine
the eligibility of prospective bidders for the procurement of Goods and Infrastructure Projects, based on
the bidders' compliance with the eligibility requirements within the period set forth in the Invitation to
Bid. The eligibility requirements shall provide for fair and equal access to all prospective bidders. The
documents submitted in satisfaction of the eligibility requirements shall be made under oath by the
prospective bidder or by his duly authorized representative certifying to the correctness of the
statements made and the completeness and authenticity of the documents submitted.
A prospective bidder may be allowed to summit his eligibility requirement s electronically. However, said
bidder shall later on certify under oath as to correctness of the statements made and the completeness
and authenticity of the documents submitted.
Section 24. Eligibility requirements and Short Listing for Consulting Services.- The Eligibility of
prospective bidders for the Procurement of Consulting Services shall be determine by their compliance
with the eligibility requirements prescribed for the competitive Bidding concerned, within the period
stated in the Invitation to bid. The eligibility requirements shall provide for fair and equal access to all
prospective bidders. The prospective bidder shall certify under oath as to the correctness of the
statements made, and the completeness and authenticity of the documents submitted.
A prospective bidder may be allowed to submit his eligibility requirements electronically. However, said
bidder shall later on certify under oath as to correctness of the statements made and the completeness
and authenticity of the documents submitted.
The eligible prospective bidders shall then be evaluated using numerical ratings on the basis of the
short listing requirements prescribed for the Competitive Bidding concerned, within the period stated in
the Invitation to Bid to determine the short list of bidders who shall be allowed to submit their
respective bids.
Section 25. Submission and Receipt of Bids.- A bid shall have two(2) components, namely the technical
and financial components which should be in separate sealed envelopes, and which shall be submitted
simultaneously. The bids shall be received by the BAC on such date, time and place specified in the
invitation to bid. The deadline for the receipt of bids shall be fixed by the BAC, giving the prospective
bidders sufficient time to study and prepare their bids. The deadline shall also consider the urgency of
the procurement involved.
Bids submitted after the deadline shall not be accepted.
Notwithstanding the provisions of this Section and Section 26 of this Act, the GPPB may prescribe
innovative procedure for the submission, receipt and opening of bids through the G-EPS.
Section 26. Modification and Withdrawal of Bids. - A bidder may modify his bid, provided that this is
done before the deadline for the receipt of bids. The modification shall be submitted in a sealed
envelope duly identified as a modification of the original bid and stamped received by the BAC.
A bidder may, through a letter, withdraw his bid or express his intention not to participate in the bidding
before the deadline for the receipt of bids. In such case, he shall no longer be allowed to submit another
Bid or the same contract either directly or indirectly.
Section 27. Bid Security. - All Bids shall be accompanied by a Bid security, which shall serve as
guarantee that, after receipt of the Notice of Award, the winning bidders shall enter into contract with
the Procuring Entity within the stipulated time and furnish the required performance security. The
specific amounts and allowable forms of the Bid security shall be prescribed in the IRR.
Section 28. Bid Validity. - Bids and Bid securities shall be valid for such reasonable period of time
indicated in the Bidding Documents. The duration for each undertaking shall take into account the time
involved in the process of Bid evaluation and award of contract.
Section 29. Bid Opening. - the BAC shall publicly open all bids at the time, date, and place specified in
the bidding documents. The minutes of the bid opening shall be made available to the public upon
written request and payment of a specified fee.
ARTICLE IX
BID EVALUATION
Section 30. Preliminary Examination of Bids. - Prior to Bid evaluation, the BAC shall examine first the
technical components of the bids using "pass/fail" criteria to determine whether all required documents

50

are present. Only bids that are determined to contain all the bid requirements of the technical
component shall be considered for opening and evaluation of their financial component.
Section 31. Ceiling for Bid Prices. - The ABC shall be the upper limit or ceiling for the Bid prices. Bid
prices that exceed this ceiling shall be disqualified outright from further participating in the bidding.
There shall be no lower limit to the amount of the award.
Section 32. Bid for the Procurement of Goods and Infrastructure Projects. - For the procurement of
Goods and Infrastructure Projects, the BAC shall evaluate the financial component of the bids. The bids
that passed the preliminary examination shall be ranked from lowest to highest in terms of their
corresponding calculated price shall be referred to as the "Lowest Calculated Bid".
Section 33. Bid Evaluation of Short Listed Bidders for Consulting Services. - For the Procurement of
Consulting Services, the Bids of the short listed bidders shall be evaluated and ranked using numerical
ratings in accordance with the evaluation criteria stated in the Bidding Documents, which shall include
factors such as, but not limited to, experience, performance, quality or personnel, price and
methodology. The Bids shall be ranked from highest to lowest in terms of their corresponding calculated
ratings. The Bid with the highest calculated rating shall be the "Highest Rated Bid." After approved by
the Head of the Procuring Entity of the Highest Rated Bid, the BAC shall invite the bidder concerned for
negotiation and/or clarification on the following item: financial proposal submitted by the bidder, terms
of reference, scope of services, methodology and work program, personnel to be assigned to job,
services/facilities/data to be provided by the Procuring Entity concerned, and provisions of the contract.
When negotiations with first-in-rank bidder fails, the financial proposal of the second rank bidder shall
opened for negotiations: Provided, that the amount indicated in the financial envelope shall be made as
the basis for negotiations and the total contract amount shall not exceed the amount indicated in the
envelope and the ABC. Whenever necessary, the same process shall be repeated until the bid awarded
to the winning bidder.
ARTICLE X
POST-QUALIFICATION
Section 34. Objective and Process of Post-qualification. - Post-qualification is the stage where the
bidder with the Lowest Calculated Bid, in the case of Goods and Infrastructure Projects, or the Highest
Rated Bid, in the case of Consulting Services, undergoes verification and validation whether he has
passed all the requirements and conditions as specified in the Bidding Documents.
If the bidder with the Lowest Calculated Bid or Highest Rated Bid passes all the criteria for postqualification, his Bid shall be considered the "Lowest Calculated Responsive Bid," in the case of Goods
and Infrastructure or the "Highest Rated Responsive Bid," in the case of Consulting Services. However, if
a bidder fails to meet any of the requirements or conditions, he shall be "post-disqualified" and the BAC
shall conduct the post-qualification on the bidder with the second Lowest Calculate Bid or Highest Rated
Bid. If the bidder with the second Lowest Calculated Bid or Highest Rated Bid is post-disqualified, the
same procedure shall be repeated until the Lowest Calculated Responsive Bid or Highest Rated
Responsive Bid is finally determined.
In all cases, the contract shall be awarded only to the bidder with the Lowest Calculated Responsive Bid
or Highest Rated Responsive Bid.
Section 35. Failure of Bidding. - there shall be a failure of bidding if:
a. No bids are received;
b. No bid qualifies as the Lowest Calculated Responsive Bid; or,
c. Whenever the bidder with the highest rated/lowest calculated responsive bid refuses, without
justifiable cause to accept the award of contract, as the case may be.
Under any of the above instances, the contract shall be re-advertised and re-bid. The BAC shall observe
the same process and set the new periods according to the same rules followed during the first bidding.
After the second failed bidding, however, the BAC may resort to negotiated procurement as provided for
in Section 53 of this Act.
Section 36. Single Calculate/Rated and Responsive Bid Submission. - A single calculated/rated and
responsive bid shall be considered for award if it falls under of the following circumstances:
a. If after advertisement, only one prospective bidder submits a Letter of Intent and/or applies
for eligibility check, and meets the eligibility requirements or criteria, after which it submits a
bide, which is found to be responsive to the bidding requirements;
b. If after the advertisement, more than one prospective bidder applies for eligibility check, but
only one bidder meets the eligibility requirements or criteria, after which in submits a bid which
is found to be responsive to the bidding requirements; or

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c. If after the eligibility check, more than one bidder meets the eligibility requirements, but only
one bidder submits a bid, and its bid is found to be responsive to the bidding requirements.
In all instances, the Procuring Entity shall ensure that the ABC reflects the most advantageous
prevailing price for the government.
ARTICLE XI
AWARD, IMPLEMENTATION AND TERMINATION OF THE CONTRACT
Section 37. Notice and Executive of Award. - Within a period not exceeding fifteen (15) calendar days
from the determination and declaration by the BAC of the Lowest Calculated Responsive Bid or Highest
Rated Responsive Bid, and the recommendation of the award, the Head of the Procuring Entity or his
duly authorized representative shall approve or disapprove the said recommendation. In case of
approval, the Head of the Procuring Entity or his duly authorized representative shall immediately issue
the Notice of Award to the bidder with the Lowest Calculated Responsive Bid or Highest Rated
Responsive Bid.
Within ten (10) calendar days from receipt of the Notice of Award, the Winning bidder shall formally
enter into contract with the Procuring Entity. When further approval of higher authority is required, the
approving authority for the contracts shall be given a maximum of twenty (20) calendar days to
approve or disapprove it.
In the case of government-owned and/or -controlled corporations, the concerned board shall take action
on the said recommendation within thirty (30) calendar days from receipt thereof.
The Procuring Entity shall issue the Notice to Proceed to the winning bidder not later than seven (7)
calendar days from the date of approval of the contract by the appropriate authority. All notices called
for by the terms of the contract shall be effective only at the time of receipt thereof by the contractor.
Section 38. Period of Action on Procurement Activities. - The procurement process from the opening of
bids up to the award of contract shall not exceed three (3) months, or a sho0rter period to be
determined by the procuring entity concerned. Without prejudice to the provisions of the preceding
section, the different procurement activities shall be completed within reasonable periods to be
specified in the IRR.
If no action on the contract is taken by the head of the procuring entity or by his duly authorized
representative, or by the concerned board, in the case of government-owned and/or -controlled
corporations, within the periods specified in the preceding paragraph, the contract concerned shall be
deemed approved.
Section 39. Performing Security. - Prior to the signing of the contract, the winning bidder shall, as a
measure of guarantee for the faithful performance of an compliance with his obligations under the
contract prepared in accordance with the Bidding Documents, be required to post a performance
security in such form and amount as specified in the Bidding Documents.
Section 40. Failure to Enter into Contract and Post Performance Security. - If, for justifiable causes, the
bidder with the Lowest Calculated Responsive Bid or Highest Rated Responsive Bid fails, refuses or is
otherwise unable to enter into contract with the Procuring Entity, or if the bidder fails to post the
required performance security within the period stipulated in the Bidding Documents, the BAC shall
disqualify the said bidder and shall undertake post-qualification for the next-ranked Lowest Calculated
Bid or Highest Rated Bid. This procedure shall be repeated until an award is made. However, if no award
is possible, the contract shall be subjected to a new bidding.
In the case of a failure to post the required performance security, the bid security shall be forfeited
without prejudice to the imposition of sanctions prescribed under Article XXIII.
Section 41. Reservation Clause. - The Head of the Agency reserves the right to reject any and all Bids,
declare a failure of bidding, or not award the contract in the following situations:
a. If there is prima facie evidence of collusion between appropriate public officers or employees
of the Procuring Entity, or between the BAC and any of the bidders, or if the collusion is between
or among the bidders themselves, or between a bidder and a third party, including any act which
restricts, suppresses or nullifies or tends to restrict, suppress or nullify competition;
b. If the BAC is found to have failed in following the prescribed bidding procedures; or
c. For any justifiable and reasonable ground where the award of the contract will not redound to
the benefit of the government as defined in the IRR.
Section 42. Contract Implementation and Termination. - The rules and guidelines for the
implementation and termination of contracts awarded pursuant to the provisions of this Act shall be
prescribed in the IRR. The rules and guidelines shall include standard general and special conditions for
contracts.

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ARTICLE XII
DOMESTIC AND FOREIGN PROCUREMENT
Section 43. Procurement of Domestic and Foreign Goods. - Consistent with the country's obligations
under international treaties or agreements, Goods may be obtained for domestic or foreign sources and
the procurement thereof shall be open to all eligible suppliers, manufacturers and distributors. However,
in the interest of availability, efficiency and timely delivery of Goods, the Procuring Entity may give
preference to the purchase of domestically-produced and manufacturer goods, supplies and materials
that meet the specified or desired quality.
ARTICLE XIII
BIDDING OF PROVINCIAL PROJECTS
Section 44. Bidding of Provincial Projects. - Priority programs and infrastructure projects funded out of
the annual General Appropriations Act which are intended for implementation within the province shall
be subject to the same public bidding and to the procurement processes prescribed under this Act. For
purposes of this Article, Engineering District civil works projects, subject to consultation with the
concerned Members of Congress, are included and subsumed in the term "provincial projects" and shall
be governed by this Section and Section 45 hereof.
Section 45. Provincial Bidders. - Within five (5) years from the effectivity of this Act, contractor who
participates in the bidding of provincial priority programs and infrastructure projects, whose principal
office is within the same province, and who submits the lowest bid among the provincial bidders which
is higher than the lowest bid made by a contractor with principal office outside the said province shall
be granted the privilege to match the bid made by the latter: Provided, however, That the release of
funds for said projects shall be published in a local newspaper with the widest circulation and the
website of the DBM, the mechanisms of which shall be spelled-out in the IRR.
ARTICLE XIV
LEASE OF COMPUTERS, COMMUNICATIONS, INFORMATION AND OTHER EQUIPMENT
Section 46. Lease Contracts. - Lease of construction and office equipment, including computers,
communication and information technology equipment are subject to the same public bidding and to
the processes prescribed under this Act.
ARTICLE XV
DISCLOSURE OF RELATIONS
Section 47. Disclosure of Relations. - In addition to the proposed contents of the Invitation to Bid as
mentioned under Section 21 of this Act, all bidding documents shall be accompanied by a sworn
affidavit of the bidder that he or she or any officer of their corporation in not related to the Head of the
Procuring Entity by consanguinity or affinity up to the third civil degree. Failure to comply with the
aforementioned provision shall be a ground for the automatic disqualification of the bid in consonance
with Section30 of this Act.
ARTICLE XVI
ALTERNATIVE METHODS OF PROCUREMENT
Section 48. Alternative Methods. - Subject to the prior approval of the Head of the Procuring Entity or
his duly authorized representative, and whenever justified by the conditions provided in this Act, the
Procuring Entity may, in order to promote economy and efficiency, resort to any of the following
alternative methods of Procurement:
a. Limited Source Bidding, otherwise known as Selective Bidding - a method of Procurement that
involves direct invitation to bid by the Procuring Entity from a set of pre-selected suppliers or
consultants with known experience and proven capability relative to the requirements of a
particular contract;
b. Direct Contracting, otherwise known as Single Source Procurement - a method of Procurement
that does not require elaborate Bidding Documents because the supplier is simply asked to
submit a price quotation or a pro-forma voice together with the conditions of sale, which offer
may be accepted immediately or after some negotiations;
c. Repeat Order. - a method of Procurement that involves a direct Procurement of Goods from the
previous winning bidder, whenever there is a need to replenish Goods procured under a contract
previously awarded through Competitive Bidding;
d. Shopping - a method of Procurement whereby the Procuring Entity simply requests for the
submission of price quotations for readily available off-the-shelf Goods or ordinary/regular
equipment to be procured directly from suppliers of known qualification; or
e. Negotiated Procurement - a method of Procurement that may be resorted under the
extraordinary circumstances provided for in Section 53 of this Act and other instances that shall

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be specified in the IRR, whereby the Procuring Entity directly negotiates a contract with a
technically, legally and financially capable supplier, contractor or consultant.
In all instances, the Procuring Entity shall ensure that the most advantageous price for the government
is obtained.
Section 49. Limited Source Bidding. - Limited Source Bidding may be resorted to only in any of the
following conditions:
a. Procurement of highly specialized types of Goods and Consulting Services which are known to
be obtainable only from a limited number of sources; or
b. Procurement of major plant components where it is deemed advantageous to limit the bidding
to known eligible bidders in order to maintain an optimum and uniform level of quality and
performance of the plant as a whole.
Section 50. Direct Contracting. - Direct Contracting may be resorted to only in any of the following
conditions:
a. Procurement of Goods of propriety nature, which can be obtained only from the propriety
source, i.e. when patents, trade secrets and copyrights prohibit others from manufacturing the
same items;
b. When the Procurement of critical components from a specific manufacturer, supplier, or
distributor is a condition precedent to hold a contractor to guarantee its project performance, in
accordance with the provisions his contract; or,
c. Those sold by an exclusive dealer or manufacturer, which does not have sub-dealers selling at
lower prices and for which no suitable substitute can be obtained at more advantageous terms to
the government.
Section 51. Repeat Order. - When provided for in the Annual Procurement Plan, Repeat Order may be
allowed wherein the Procuring Entity directly procures Goods from the previous winning bidder
whenever there arises a need to replenish goods procured under a contract previously awarded through
Competitive Bidding, subject to post-qualification process prescribed in the Bidding Documents and
provided all the following conditions are present:
a. The unit price must be equal to or lower than that provided in the original contract;
b. The repeat order does not result in splitting of requisitions or purchase orders;
c. Except in special circumstances defined in the IRR the repeat order shall be availed of only
within six (6) months from the date of the Notice to Proceed arising from the original contract;
and,
d. The repeat order shall not exceed twenty-five percent (25%) of the quantity of each item of
the original contract.
Section 52. Shopping. - shopping may be resorted to under any of the following instances:
a. When there is an unforeseen contingency requiring immediate purchase: Provided, however,
That the amount shall not exceed Fifty thousand pesos (P50,000); or
b. Procurement of ordinary or regular office supplies and equipment not available in the
Procurement Service involving an amount not exceeding Two hundred fifty thousand pesos
(P250,000): Provided, however, That the Procurement does not result in Splitting of Contracts:
Provided, further, That at least three (3) price quotations from bona fide suppliers shall be
obtained.
The above amounts shall be subject to a period review by the GPPB. For this purpose, the GPPB shall be
authorized to increase or decrease the said amount in order to reflect changes in economic conditions
and for other justifiable reasons.
Section 53. Negotiated Procurement. - Negotiated Procurement shall be allowed only in the following
instances:
a. In case of two (2) failed bidding as provided in Section 35 hereof;
b. In case of imminent danger to life or property during a state of calamity, or when time is of
the essence arising from natural or man-made calamities or other causes where immediate
action is necessary to prevent damage to or loss of life or property, or to restore vital public
services, infrastructure facilities and other public utilities;

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c. Take-over of contracts, which have been rescinded or terminated for causes provided for in the
contract and existing laws, where immediate action is necessary to prevent damage to or loss of
life or property, or to restore vital public services, infrastructure facilities and other public
utilities;
d. Where the subject contract is adjacent or contiguous to an on-going infrastructure project, as
defined in the IRR: Provided, however, That the original contract is the result of a Competitive
Bidding; the subject contract to be negotiated has similar or related scopes of work; it is within
the contracting capacity of the contractor; the contractor uses the same prices or lower unit
prices as in the original contract less mobilization cost; the amount involved does not exceed the
amount of the ongoing project; and, the contractor has no negative slippage: Provided, further,
That negotiations for the procurement are commenced before the expiry of the original contract.
Wherever applicable, the principle shall also govern consultancy contract, where the consultants
have unique experience and expertise to deliver the required service; or,
e. Subject to the guidelines specified in the IRR, purchases of Goods from another agency of the
government, such as the Procurement Service of the DBM, which is tasked with a centralized
procurement of commonly used Goods for the government in accordance with Letters of
Instruction No. 755 and Executive Order No. 359, series of 1989.
Section 54. Terms and Conditions for the use of Alternative Methods. - The specific terms and
conditions, including the limitations and restrictions, for the application of each of the alternative
methods mentioned in this Article shall be specified in the IRR.
ARTICLE XVII
PROTEST MECHANISM
Section 55. Protests on Decisions of the BAC.- Decisions of the BAC in all stages of procurement may
be protested to the head of the procuring entity and shall be in writing. Decisions of the BAC may be
protested by filing a verified position paper and paying a non-refundable protest fee. The amount of the
protest fee and the periods during which the protests may be filed and resolved shall be specified in the
IRR.
Section 56. Resolution of Protests. - The protest shall be resolved strictly on the basis of records of the
BAC. Up to a certain amount to be specified in the IRR, the decisions of the Head of the Procuring Entity
shall be final.
Section 57. Non-interruption of the Bidding Process.- In no case shall any protest taken from any
decision treated in this Article stay or delay the bidding process. Protests must first be resolved before
any award is made.
Section 58. Report to Regular Courts; Certiorari.- Court action may be resorted to only after the
protests contemplated in this Article shall have been completed. Cases that are filed in violation of the
process specified in this Article shall be dismissed for lack of jurisdiction. The regional trial court shall
have jurisdiction over final decision of the head of the procuring entity. Court actions shall be governed
by Rule 65 of the 1997 Rules of Civil Procedure.
This provision is without prejudice to any law conferring on the Supreme court the sole jurisdiction to
issue temporary restraining orders and injunctions relating to Infrastructure Projects of Government.
ARTICLE XVIII
SETTLEMENT OF DISPUTES
Section 59. Arbitration. - Any and all disputes arising from the implementation of a contract covered by
this Act shall be submitted to arbitration in the Philippines according to the provisions of Republic Act
No. 876, otherwise known as the "Arbitration Law": Provided, however, That, disputes that are within
the competence of the Construction Industry Arbitration Commission to resolve shall be referred
thereto. The process of arbitration shall be incorporated as a provision in the contract that will be
executed pursuant to the provisions of this Act: Provided, That by mutual agreement, the parties may
agree in writing to resort to alternative modes of dispute resolution.
Section 60. Appeals. - The arbitral award and any decision rendered in accordance with the foregoing
Section shall be appealable by way of a petition for review to the Court of Appeals. The petition shall
raise pure questions of law and shall be governed by the Rule of Court.
ARTICLE XIX
CONTRACT PRICES AND WARRANTIES
Section 61. Contract Prices. - For the given scope of work in the contract as awarded, all bid prices
shall be considered as fixed prices, and therefore not subject to price escalation during contract
implementation, except under extraordinary circumstances and upon prior approval of the GPPB.

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For purposes of this Section, "extraordinary circumstances" shall refer to events that may be
determined by the National Economic and Development Authority in accordance with the Civil Code of
the Philippines, and upon the recommendation of the procuring entity concerned.
Section 62. Warranty. - (a) For the procurement of Goods, in order to assure that manufacturing
defects shall be corrected by the supplier, manufacturer, or distributor, as the case maybe, for a specific
time after performance of the contract, a warranty shall be required from the contract awardee for such
period of time as may be provided in the IRR, the obligation for which shall be covered by either
retention money in the amount equivalent to a percentage of every progress payment, or a special bank
guarantee equivalent to a percentage of the total contract price, to be provided in the IRR. The said
amounts shall only be released after the lapse of the warranty period, provided that the Goods supplied
are free from defects and all the conditions imposed under the contract have been fully met.
b. For the procurement of infrastructure projects, the contractor shall assume full responsibility
for the contract work from the time project construction commenced up to a reasonable period
as defined in the IRR taking into consideration the scale and coverage of the project from its final
acceptance by the government and shall be held responsible for any damage or construction or
works except those occasioned by force majeure. The contractor shall be fully responsible for the
safety, protection, security, and convenience of his personnel, third parties, and the public large,
as well as the works, equipment, installation and the like to be affected by his construction work
and shall be required to put up a warranty security in the form of cash, bank guarantee, letter of
credit, Government Service Insurance System bond, or callable surety bond.
The contractor shall undertake the repair works, at his own expense, of any defect or damage to the
infrastructure projects on account of the use of materials of inferior quality within ninety (90) days from
the time the Head of the Procuring Entity has issued an order to undertake repair. In case of failure or
refusal to comply with this mandate, the governments shall undertake such repair works and shall be
entitle to full reimbursement of expenses incurred therein upon demand.
Any contractor who fails to comply with the preceding paragraphs shall suffer perpetual disqualification
from participating in any public bidding and his property or properties shall be subject to attachment or
garnishment proceedings to recover the costs. All payables of government in his favor shall be offset to
recover the costs.
ARTICLE XX
THE GOVERNMENT PROCUREMENT POLICY BOARD
Section 63. Organization and Functions. - A Government Procurement Policy Board (GPPB) is hereby
established to: (a.) protect national interest in all matters affecting public Procurement, having due
regard to the country's regional and international obligations; (b.) formulate and amend, whenever
necessary, the IRR and the corresponding standard forms for Procurement; (c) ensure that Procuring
Entities regularly conduct Procurement training programs and prepare a Procurement operations
manual for all offices and agencies of government; and (d) conduct an annual review of the
effectiveness of this Act and recommend any amendments thereto, as may be necessary.
The GPPB shall convene within fifteen (15) days from the effectivity of this Act formulate the IRR and for
other related purposes. The GPPB shall be supported by a technical support office.
In addition to the powers granted under this Act, the GPPB shall absorb all the powers, function and
responsibilities of the Procurement Policy Board created under Executive Order No. 359, series of 1989.
All affected functions of the Infrastructure Committee of the National Economic and Development
Authority Board are hereby transferred to the GPPB.
Section 64. Membership. - The GPPB shall be composed of the Secretary of the Department of Budget
and Management, as Chairman, the Director-General of the National Economic and Development
Authority, as Alternate Chairman, with the following as Members; the Secretaries of the Departments of
Public Works and Highways, Finance, Trade and Industry, Health, National Defense, Education, Interior
and Local Government, Science and Technology, Transportation and Communications, and Energy, or
their duly authorized representatives and a representative from the private sector to be appointed by
the President upon the recommendation of the GPPB. The GPPB may invite a representative from the
Commission on Audit to serve as a resource person.
ARTICLE XXI
PENAL CLAUSE
Section 65. Offenses and Penalties. - (a) Without prejudice to the provisions of Republic Act No. 3019,
otherwise known as the "Anti-Graft and Corrupt Practice Act" and other penal laws, public officers who
commit any of the following acts shall suffer the penalty of imprisonment of not less than six (6) years
and one (1) day, but not more than fifteen (15) years:
1. Open any sealed Bid including but not limited to Bids that may have been submitted
through the electronic system and any and all documents required to be sealed or
divulging their contents, prior to the appointed time for the public opening of Bids or
other documents.

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2. Delaying, without justifiable cause, the screening for eligibility, opening of bids,
evaluation and post evaluation of bids, and awarding of contracts beyond the prescribed
periods of Bids or other documents.
3. Unduly influencing or exerting undue pressure on any member of the BAC or any officer
or employee of the procuring entity to take a particular bidder.
4. Splitting of contracts which exceed procedural purchase limits and competitive bidding.
5. When the head of the agency abuses the exercise of his power to reject any and all
bids as mentioned under Section 41 of this Act with manifest preference to any bidder
who is closely related to him in accordance with Section 47 of this Act.
When any of the foregoing acts is done in collusion with private individuals, the private
individuals shall likewise be liable for the offense.
In addition, the public officer involved shall also suffer the penalty of temporary disqualification
from public office, while the private individual shall be permanently disqualified from transacting
business with the government.
(b) Private individuals who commit any of the following acts, including any public officer, who
conspires with them, shall suffer the penalty of imprisonment of not less than six (6) years and
one (1) day but not more than fifteen (15) years:
1. When two or more bidders agree and submit different Bids as if they were bona fide,
when they knew that one or more of them was so much higher than the other that it
could not be honestly accepted and that the contract will surely be awarded to the prearranged lowest Bid.
2. When a bidder maliciously submits different Bids through two or more persons,
corporations, partnerships or any other business entity in which he has interest of create
the appearance of competition that does not in fact exist so as to be adjudged as the
winning bidder.
3. When two or more bidders enter into an agreement which call upon one to refrain from
bidding for Procurement contracts, or which call for withdrawal of bids already submitted,
or which are otherwise intended to secure as undue advantage to any one of them.
4. When a bidder, by himself or in connivance with others, employ schemes which tend to
restrain the natural rivalry of the parties or operates to stifle or suppress competition and
thus produce a result disadvantageous to the public.
In addition, the persons involved shall also suffer the penalty of temporary or perpetual
disqualification from public office and be permanently disqualified from transacting business with
the government.
(c) Private individuals who commit any of the following acts, and any public officer conspiring
with them, shall suffer the penalty of imprisonment of not less than six (6) years and one (1) day
but more than fifteen (15) years:
1. Submit eligibility requirements of whatever kind and nature that contain false
information or falsified documents calculated to influence the outcome of the eligibility
screening process or conceal such information in the eligibility requirements when the
information will lead to a declaration of ineligibility from participating in public bidding.
2. Submit Bidding Documents of whatever kind and nature than contain false information
or falsified documents or conceal such information in the Bidding Documents, in order to
influence the outcome of the public bidding.
3. Participate in a public bidding using the name of another or allow another to use one's
name for the purpose of participating in a public bidding.
4. Withdraw a Bid, after it shall have qualified as the Lowest Calculated Bid/Highest Rated
Bid, or to accept and award, without just cause or for the purpose of forcing the Procuring
Entity to award the contract to another bidder. This shall include the non-submission of
requirements such as, but not limited to, performance security, preparatory to the final
award of the contract.
(d) When the bidder is a juridical entity, criminal liability and the accessory penalties shall be
imposed on its directors, officers or employees who actually commit any of the foregoing acts.
Section 66. Jurisdiction. - Jurisdiction over the offenses defined under this Article shall belong to the
appropriate courts, according to laws existing at the time of the commission of the offenses.

57

ARTICLE XXII
CIVIL LIABILITY
Section 67. Civil Liability in Case of Conviction. - Without prejudice to administrative sanctions that
may be imposed in proper cases, a conviction under this Act or Republic Act No. 3019 shall carry with it
civil liability, which may either consist of restitution for the damage done or the forfeiture in favor of the
government of any unwarranted benefit derived from the act or acts in question or both, at the
discretion of the courts.
Section 68. Liquidated Damages. - All contracts executed in accordance with this Act shall contain a
provision on liquidated damages which shall be payable in case of breach thereof. The amount thereof
shall be specified in the IRR.
ARTICLE XXIII
ADMINISTRATIVE SANCTIONS
Section 69. Imposition of Administrative Penalties. - (a) In addition to the provisions of Articles XXI and
XXII of this Act, the Head of the Procuring Entity, subject to the authority delegated to the BAC, if any,
shall impose on bidders or prospective bidders, the administrative penalty of suspension for one (1)
years for the first offense, and suspensions of two (2) years for the second offense from participating in
the public bidding process, for the following violations:
1. Submission of eligibility requirements containing false information or falsified
documents.
2. Submission of bids that contain false information or falsified documents, or the
concealment of such information in the Bids in order to influence the outcome of eligibility
screening or any other stage of the public bidding.
3. Allowing the use of one's name, or using the name of another for purposes of public
bidding.
4. Withdrawal of a Bid, or refusal to accept an award, or enter into contract with the
government without justifiable cause, after he had been adjudged as having submitted
the Lowest Calculated Responsive Bid or Highest Rated Responsive Bid.
5. Refusal or failure to post the require performance security within the prescribed time.
6. Termination of the contract due to the default of the bidder.
Refusal to clarify or validate in writing its Bid during post-qualification within a period of
seven (7) calendar days from receipt of the request for clarification.
Any documented unsolicited attempt by a bidder to unduly influence the outcome of the
bidding in his favor.
All other acts that tend to defeat the purpose of the Competitive bidding.
(b) In addition to the penalty of suspension, the Bid security of the performance security posted
by the concerned bidder or prospective bidder shall also be forfeited.
(c) the Head of the Procuring Entity may delegate to the BAC the authority to impose the
aforementioned administrative penalties.
Section 70. Preventive Suspension. - The head of the procuring entity may preventively suspend any
member of the Technical Working Group of the Secretariat, or the BAC if there are strong reasons or
prima facie evidence showing that the officials or employees concerned are guilty or the charges filed
against them under Articles XXI and XXII of this Act or for dishonesty as defined by the Civil Service
Laws. In all cases, procedural and substantive due process as mandated by the Constitution and Civil
Service Laws, rules and regulations, shall be strictly observed.
Section 71. Lifting of Suspension and Removal of Administrative Disabilities. - Lifting of preventive
suspension pending administrative investigation, as well as removal of administrative investigation, as
well as removal of administrative penalties and disabilities shall be in accordance with the provisions of
Sections 52 and 53, Chapter 6 (Civil Service Commission), Book V of Executive Order No. 292, the
Administrative Code of 1987.
ARTICLE XXIV
LEGAL ASSISTANCE AND INDEMNIFICATION OF BAC MEMBERS
Section 72. Private Legal Assistance. - All the members of the BAC are hereby authorized to engage
the service of private lawyers or extend counsel immediately upon receipt of Court Notice that a civil or

58

criminal action, suit or proceeding is filed against them. The lawyer's fee shall be part of the
indemnification package for the BAC members, subject to the provisions of Section 73 hereof.
Section 73. Indemnification of BAC Members. - The GPPB shall establish an equitable indemnification
package for public officials providing services in the BAC, which may be in the form of free legal
assistance, liability insurance, and other forms of protection and indemnification for all cost and
expenses reasonably incurred by such persons in connection with any civil or criminal actions, suit or
proceeding to which they may be, or have been made, a party by reason of the performance of their
functions or duties, unless they are finally adjudged in such action or proceeding to be liable for gross
negligence or misconduct or grave abuse of discretion.
In the event of settlement or compromise, indemnification shall be confined only on matters covered by
the settlement, as to which the Procuring Entity had been advised by countset that the public officials to
be indemnified have not committed gross negligence or misconduct in the performance of their
functions and duties.
The members of the BAC and the BAC Secretariat shall also be entitled to medical assistance for injuries
incurred in the performance of their functions.
ARTICLE XXV
FINAL PROVISIONS
Section 74. Oversight Committee. - There is hereby created a Joint Congressional Oversight Committee
to oversee the implementation of this Act for a period not exceeding five (5) years from the effectivity of
this Act. The Committee shall be composed of the Chairman of the Senate Committee on Constitutional
Amendments and Revision of Laws and two (2) members thereof appointed by the Senate President,
and the Chairman of the House Committee on Appropriations, and two(2) thereof to be appointed by the
Speaker of the House of Representatives.
Section 75. Implementing Rules and Regulations and Standard Forms. - Within sixty (60) days from the
promulgation of this Act, the necessary rules and regulations for the proper implementation of its
provisions shall be formulated by the GPPB, jointly with the members of the Oversight Committee
created under Section 74 hereof. The said rules and regulations shall be approved by the President of
the Philippines. For a period not later than thirty (30) days upon the approval of the implementing rules
and regulations the standard forms for Procurement shall be formulated and approved.
Section 76. Repealing Clause. - This law repeals Executive Order No. 40, series of 2001, entitled
"Consolidating Procurement Rules and Procedures for all National Government Agencies, GovernmentOwned-or-Controlled Corporations and/or Government Financial Institutions, and requiring the Use of the
Government Electronic Procurement System"; Executive Order No.262, series of 2000, entitled
"Amending Executive Order No.302, series of 1996, entitled "Providing Policies, Guidelines, Rules and
Regulations for the Procurement of Goods/Supplies by the National Government' and Section 3 of
Executive Order No.201, series of 2000, entitled "Providing Additional Policies and Guidelines and the
Procurement of Goods/Supplies by the National Government"; Executive Order No. 302, series of 1996,
entitled "Providing Policies, Guidelines, Rules and Regulations for the Procurement of Goods/Supplies by
the National Government" and Presidential Decree No. 1594 dated June 11,1978, entitled "Prescribing
Policies, Guidelines, Rule and regulations for Government Infrastructure Contracts." This law amends
Title Six, Book Two of Republic Act No. 7160, otherwise known as the "Local Government Code of 1991";
the relevant provisions of Executive Order No.164, series of 1987, entitled " An Act Providing Additional
Guidelines in the processing and Approval of Contracts of the Government"; and the relevant provisions
of Republic Act No. 7898 dated February 23, 1995, entitled "An Act Providing for the Modernization of
the Armed Forces of the Philippines and other Purposes." Any other law, presidential decree or issuance,
executive order, letter of instruction, administrative order, proclamation, charter, rule or regulation
and/or parts thereof contrary to or inconsistent with the provisions of this Act, hereby repealed,
modified or amended accordingly.
Section 77. Separability Clause. - If any provision of this Act is declared invalid or unconstitutional, the
other provisions not affected thereby shall remain valid and subsisting.
Section 78. Effectivity Clause. - This Act shall take effect fifteen (150) days following its publication in
the Officials Gazette or in two (2) newspapers of general circulation.
Approved: January 10, 2003
REPUBLIC ACT No. 10591
AN ACT PROVIDING FOR A COMPREHENSIVE LAW ON FIREARMS AND AMMUNITION AND
PROVIDING PENALTIES FOR VIOLATIONS THEREOF
Be it enacted by the Senate and House of Representatives of the Philippines in Congress assembled:
ARTICLE I
TITLE, DECLARATION OF POLICY AND DEFINITION OF TERMS

59

Section 1. Short Title. This Act shall be known as the "Comprehensive Firearms and Ammunition
Regulation Act".
Section 2. Declaration of State Policy. It is the policy of the State to maintain peace and order and
protect the people against violence. The State also recognizes the right of its qualified citizens to selfdefense through, when it is the reasonable means to repel the unlawful aggression under the
circumstances, the use of firearms. Towards this end, the State shall provide for a comprehensive law
regulating the ownership, possession, carrying, manufacture, dealing in and importation of firearms,
ammunition, or parts thereof, in order to provide legal support to law enforcement agencies in their
campaign against crime, stop the proliferation of illegal firearms or weapons and the illegal manufacture
of firearms or weapons, ammunition and parts thereof.
Section 3. Definition of Terms. As used in this Act:
(a) Accessories refer to parts of a firearm which may enhance or increase the operational
efficiency or accuracy of a firearm but will not constitute any of the major or minor internal parts
thereof such as, hut not limited to, laser scope, telescopic sight and sound suppressor or
silencer.
(b) Ammunition refers to a complete unfixed unit consisting of a bullet, gunpowder, cartridge
case and primer or loaded shell for use in any firearm.
(c) Antique firearm refers to any: (1) firearm which was manufactured at least seventy-five (75)
years prior to the current date but not including replicas; (2) firearm which is certified by the
National Museum of the Philippines to be curio or relic of museum interest; and (3) any other
firearm which derives a substantial part of its monetary value from the fact that it is novel, rare,
bizarre or because of its association with some historical figure, period or event.
(d) Arms smuggling refers to the import, export, acquisition, sale, delivery, movement or transfer
of firearms, their parts and components and ammunition, from or across the territory of one
country to that of another country which has not been authorized in accordance with domestic
law in either or both country/countries.
(e) Authority to import refers to a document issued by the Chief of the Philippine National Police
(PNP) authorizing the importation of firearms, or their parts, ammunition and other components.
(f) Authorized dealer refers to any person, legal entity, corporation, partnership or business
entity duly licensed by the Firearms and Explosive Office (FEO) of the PNP to engage in the
business of buying and selling ammunition, firearms or parte thereof, at wholesale or retail basis.
(g) Authorized importer refers to any person, legal entity, corporation, partnership or business
duly licensed by the FEO of the PNP to engage in the business of importing ammunition and
firearms, or parts thereof into the territory of the Republic of the Philippines for purposes of sale
or distribution under the provisions of this Act.
(h) Authorized manufacturer refers to any person, legal entity, corporation, or partnership duly
licensed by the FEO of the PNP to engage in the business of manufacturing firearms, and
ammunition or parts thereof for purposes of sale or distribution.1wphi1
(i) Confiscated firearm refers to a firearm that is taken into custody by the PNP, National Bureau
of Investigation (NBI), Philippine Drug Enforcement Agency (PDEA), and all other law
enforcement agencies by reason of their mandate and must be necessarily reported or turned
over to the PEO of the PNP.
(j) Demilitarized firearm refers to a firearm deliberately made incapable of performing its main
purpose of firing a projectile.
(k) Duty detail order refers to a document issued by the juridical entity or employer wherein the
details of the disposition of firearm is spelled-out, thus indicating the name of the employee, the
firearm information, the specific duration and location of posting or assignment and the
authorized bonded firearm custodian for the juridical entity to whom such firearm is turned over
after the lapse of the order.
(l) Firearm refers to any handheld or portable weapon, whether a small arm or light weapon, that
expels or is designed to expel a bullet, shot, slug, missile or any projectile, which is discharged
by means of expansive force of gases from burning gunpowder or other form of combustion or
any similar instrument or implement. For purposes of this Act, the barrel, frame or receiver is
considered a firearm.
(m) Firearms Information Management System (FIMS) refers to the compilation of all data and
information on firearms ownership and disposition for record purposes.

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(n) Forfeited firearm refers to a firearm that is subject to forfeiture by reason of court order as
accessory penalty or for the disposition by the FEO of the PNP of firearms considered as
abandoned, surrendered, confiscated or revoked in compliance with existing rules and
regulations.
(o) Gun club refers to an organization duly registered with and accredited in good standing by
the FEO of the PNP which is established for the purpose of propagating responsible and safe gun
ownership, proper appreciation and use of firearms by its members, for the purpose of sports
and shooting competition, self-defense and collection purposes.
(p) Gunsmith refers to any person, legal entity, corporation, partnership or business duly
licensed by the FEO of the PNP to engage in the business of repairing firearms and other
weapons or constructing or assembling firearms and weapons from finished or manufactured
parts thereof on a per order basis and not in commercial quantities or of making minor parts for
the purpose of repairing or assembling said firearms or weapons.
(q) Imitation firearm refers to a replica of a firearm, or other device that is so substantially
similar in coloration and overall appearance to an existing firearm as to lead a reasonable person
to believe that such imitation firearm is a real firearm.
(r) Licensed citizen refers to any Filipino who complies with the qualifications set forth in this Act
and duly issued with a license to possess or to carry firearms outside of the residence in
accordance with this Act.
(s) Licensed, juridical entity refers to corporations, organizations, businesses including security
agencies and local government units (LGUs) which are licensed to own and possess firearms in
accordance with this Act.
(t) Light weapons are: Class-A Light weapons which refer to self-loading pistols, rifles and
carbines, submachine guns, assault rifles and light machine guns not exceeding caliber 7.62MM
which have fully automatic mode; and Class-B Light weapons which refer to weapons designed
for use by two (2) or more persons serving as a crew, or rifles and machine guns exceeding
caliber 7.62MM such as heavy machine guns, handheld underbarrel and mounted grenade
launchers, portable anti-aircraft guns, portable anti-tank guns, recoilless rifles, portable
launchers of anti-tank missile and rocket systems, portable launchers of anti-aircraft missile
systems, and mortars of a caliber of less than 100MM.
(u) Long certificate of registration refers to licenses issued to government agencies or offices or
government-owned or -controlled corporations for firearms to be used by their officials and
employees who are qualified to possess firearms as provider in this Act, excluding security
guards.
(v) Loose firearm refers to an unregistered firearm, an obliterated or altered firearm, firearm
which has been lost or stolen, illegally manufactured firearms, registered firearms in the
possession of an individual other than the licensee and those with revoked licenses in
accordance with the rules and regulations.
(w) Major part or components of a firearm refers to the barrel, slide, frame, receiver, cylinder or
the bolt assembly. The term also includes any part or kit designed and intended for use in
converting a semi-automatic burst to a full automatic firearm.
(x) Minor parts of a firearm refers to the parts of the firearm other than the major parts which are
necessary to effect and complete the action of expelling a projectile by way of combustion,
except those classified as accessories.
(y) Permit to carry firearm outside of residence refers to a written authority issued to a licensed
citizen by the Chief of the PNP which entitles such person to carry his/her registered or lawfully
issued firearm outside of the residence for the duration and purpose specified in the authority.
(z) Permit to transport firearm refers to a written authority issued to a licensed citizen or entity
by the Chief of the PNP or by a PNP Regional Director which entitles such person or entity to
transport a particular firearm from and to a specific location within the duration and purpose in
the authority.
(aa) Residence refers to the place or places of abode of the licensed citizen as indicated in
his/her license.
(bb) Shooting range refers to a facility established for the purpose of firearms training and skills
development, firearm testing, as well as for sports and competition shooting either for the
exclusive use of its members or open to the general public, duly registered with and accredited
in good standing by the FEO of the PNP.

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(cc) Short certificate of registration refers to a certificate issued by the FEO of the PNP for a
government official or employee who was issued by his/her employer department, agency or
government-owned or -controlled corporation a firearm covered by the long certificate of
registration.
(dd) Small arms refer to firearms intended to be or primarily designed for individual use or that
which is generally considered to mean a weapon intended to be fired from the hand or shoulder,
which are not capable of fully automatic bursts of discharge, such as:
(1) Handgun which is a firearm intended to be fired from the hand, which includes:
(i) A pistol which is a hand-operated firearm having a chamber integral with or
permanently aligned with the bore which may be self-loading; and
(ii) Revolver which is a hand-operated firearm with a revolving cylinder containing
chambers for individual cartridges.
(2) Rifle which is a shoulder firearm or designed to be fired from the shoulder that can
discharge a bullet through a rifled barrel by different actions of loading, which may be
classified as lever, bolt, or self-loading; and
(3) Shotgun which is a weapon designed, made and intended to fire a number of ball
shots or a single projectile through a smooth bore by the action or energy from burning
gunpowder.
(ee) Sports shooting competition refers to a defensive, precision or practical sport shooting
competition duly authorized by the FEO of the PNP.
(ff) Tampered, obliterated or altered firearm refers to any firearm whose serial number or other
identification or ballistics characteristics have been intentionally tampered with, obliterated or
altered without authority or in order to conceal its source, identity or ownership.
(gg) Thermal weapon sight refers to a battery operated, uncooled thermal imaging device which
amplifies available thermal signatures so that the viewed scene becomes clear to the operator
which is used to locate and engage targets during daylight and from low light to total darkness
and operates in adverse conditions such as light rain, light snow, and dry smoke or in
conjunction with other optical and red dot sights.
ARTICLE II
OWNERSHIP AND POSSESSION OF FIREARMS
Section 4. Standards and Requisites for Issuance of and Obtaining a License to Own and Possess
Firearms. In order to qualify and acquire a license to own and possess a firearm or firearms and
ammunition, the applicant must be a Filipino citizen, at least twenty-one (21) years old and has gainful
work, occupation or business or has filed an Income Tax Return (ITR) for the preceding year as proof of
income, profession, business or occupation.
In addition, the applicant shall submit the following certification issued by appropriate authorities
attesting the following:
(a) The applicant has not been convicted of any crime involving moral turpitude;
(b) The applicant has passed the psychiatric test administered by a PNP-accredited psychologist
or psychiatrist;
(c) The applicant has passed the drug test conducted by an accredited and authorized drug
testing laboratory or clinic;
(d) The applicant has passed a gun safety seminar which is administered by the PNP or a
registered and authorized gun club;
(e) The applicant has filed in writing the application to possess a registered firearm which shall
state the personal circumstances of the applicant;
(f) The applicant must present a police clearance from the city or municipality police office; and
(g) The applicant has not been convicted or is currently an accused in a pending criminal case
before any court of law for a crime that is punishable with a penalty of more than two (2) years.
For purposes of this Act, an acquittal or permanent dismissal of a criminal case before the courts of law
shall qualify the accused thereof to qualify and acquire a license.

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The applicant shall pay the reasonable licensing fees as may be provided in the implementing rules and
regulations of this Act.
An applicant who intends to possess a firearm owned by a juridical entity shall submit his/her duty detail
order to the FEO of the PNP.
Section 5. Ownership of Firearms and Ammunition by a Juridical Entity. A juridical person maintaining
its own security force may be issued a regular license to own and possess firearms and ammunition
under the following conditions:
(a) It must be Filipino-owned and duly registered with the Securities and Exchange Commission
(SEC);
(b) It is current, operational and a continuing concern;
(c) It has completed and submitted all its reportorial requirements to the SEC; and
(d) It has paid all its income taxes for the year, as duly certified by the Bureau of Internal
Revenue.
The application shall be made in the name of the juridical person represented by its President or any of
its officers mentioned below as duly authorized in a board resolution to that effect: Provided, That the
officer applying for the juridical entity, shall possess all the qualifications required of a citizen applying
for a license to possess firearms.
Other corporate officers eligible to represent the juridical person are: the vice president, treasurer, and
board secretary.
Security agencies and LGUs shall be included in this category of licensed holders but shall be subject to
additional requirements as may be required by the Chief of the PNP.
Section 6. Ownership of Firearms by the National Government. All firearms owned by the National
Government shall be registered with the FEO of the PNP in the name of the Republic of the Philippines.
Such registration shall be exempt from all duties and taxes that may otherwise be levied on other
authorized owners of firearms. For reason of national security, firearms of the Armed Forces of the
Philippines (AFP), Coast Guard and other law enforcement agencies shall only be reported to the FEO of
the PNP.
Section 7. Carrying of Firearms Outside of Residence or Place of Business. A permit to carry firearms
outside of residence shall be issued by the Chief of the PNP or his/her duly authorized representative to
any qualified person whose life is under actual threat or his/her life is in imminent danger due to the
nature of his/her profession, occupation or business.
It shall be the burden of the applicant to prove that his/her life is under actual threat by submitting a
threat assessment certificate from the PNP.
For purposes of this Act, the following professionals are considered to be in imminent danger due to the
nature of their profession, occupation or business:
(a) Members of the Philippine Bar;
(b) Certified Public Accountants;
(c) Accredited Media Practitioners;
(d) Cashiers, Bank Tellers;
(e) Priests, Ministers, Rabbi, Imams;
(f) Physicians and Nurses;
(g) Engineers; and
(h) Businessmen, who by the nature of their business or undertaking, are exposed to high risk of
being targets of criminal elements.
ARTICLE III
REGISTRATION AND LICENSING
Section 8. Authority to Issue License. The Chief of the PNP, through the FEO of the PNP, shall issue
licenses to qualified individuals and to cause the registration of firearms.

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Section 9. Licenses Issued to Individuals. Subject to the requirements set forth in this Act and
payment of required fees to be determined by the Chief of the PNP, a qualified individual may be issued
the appropriate license under the following categories;
Type 1 license allows a citizen to own and possess a maximum of two (2) registered firearms;
Type 2 license allows a citizen to own and possess a maximum of five (5) registered firearms;
Type 3 license allows a citizen to own and possess a maximum of ten (10) registered firearms;
Type 4 license allows a citizen to own and possess a maximum of fifteen (15) registered
firearms; and
Type 5 license allows a citizen, who is a certified gun collector, to own and possess more than
fifteen (15) registered firearms.
For Types 1 to 5 licenses, a vault or a container secured by lock and key or other security measures for
the safekeeping of firearms shall be required.
For Types 3 to 5 licenses, the citizen must comply with the inspection and bond requirements.
Section 10. Firearms That May Be Registered. Only small arms may be registered by licensed citizens
or licensed juridical entities for ownership, possession and concealed carry. A light weapon shall be
lawfully acquired or possessed exclusively by the AFP, the PNP and other law enforcement agencies
authorized by the President in the performance of their duties: Provided, That private individuals who
already have licenses to possess Class-A light weapons upon the effectivity of this Act shall not be
deprived of the privilege to continue possessing the same and renewing the licenses therefor, for the
sole reason that these firearms are Class "A" light weapons, and shall be required to comply with other
applicable provisions of this Act.
Section 11. Registration of Firearms. The licensed citizen or licensed juridical entity shall register
his/her/its firearms so purchased with the FEO of the PNP in accordance with the type of license such
licensed citizen or licensed juridical entity possesses. A certificate of registration of the firearm shall be
issued upon payment of reasonable fees.
For purposes of this Act, registration refers to the application, approval, record-keeping and monitoring
of firearms with the FEO of the PNP in accordance with the type of license issued to any person under
Section 9 of this Act.
Section 12. License to Possess Ammunition Necessarily Included. The licenses granted to qualified
citizens or juridical entities as provided in Section 9 of this Act shall include the license to possess
ammunition with a maximum of fifty (50) rounds for each registered firearm: Provided; That the FEO of
the PNP may allow more ammunition to be possessed by licensed sports shooters.
Section 13. Issuance of License to Manufacture or Deal In Firearms and Ammunition. Any person
desiring to manufacture or deal in firearms, parts of firearms or ammunition thereof, or instruments and
implements used or intended to be used in the manufacture of firearms, parts of firearms or
ammunition, shall make an application to:
(a) The Secretary of the Department of the Interior and Local Government (DILG) in the case of
an application for a license to manufacture; and
(b) The Chief of the PNP in the case of a license to deal in firearms and firearms parts,
ammunition and gun repair.
The applicant shall state the amount of capitalization for manufacture or cost of the purchase and sale
of said articles intended to be transacted by such applicant; and the types of firms, ammunition or
implements which the applicant intends to manufacture or purchase and sell under the license applied
for; and such additional information as may be especially requested by the Secretary of the DILG or the
Chief of the PNP.
The Secretary of the DILG or the Chief of the PNP may approve or disapprove such application based on
the prescribed guidelines. In the case of approval, the Secretary of the DILG or the Chief of the PNP shall
indicate the amount of the bond to be executed by the applicant before the issuance of the license and
the period of time by which said license shall be effective, unless sooner revoked by their authority.
Upon approval of the license to manufacture or otherwise deal in firearms by the Secretary of the DILG
or the Chief of the PNP as the case may be, the same shall be transmitted to the FEO of the PNP which
shall issue the license in accordance with the approved terms and conditions, upon the execution and
delivery by the applicant of the required bond conditioned upon the faithful compliance on the part of
the licensee to the laws and regulations relative to the business licensed.

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Section 14. Scope of License to Manufacture Firearms and Ammunition. The scope of the License to
Manufacture firearms and ammunition shall also include the following:
(a) The authority to manufacture and assemble firearms, ammunition, spare parts and
accessories, ammunition components, and reloading of ammunitions, within sites, areas, and
factories stated therein. The Secretary of the DILG shall approve such license;
(b) The license to deal in or sell all the items covered by the License to Manufacture, such as
parts, firearms or ammunition and components;
(c) The authority to subcontract the manufacturing of parts and accessories necessary for the
firearms which the manufacturer is licensed to manufacture: Provided, That the subcontractor of
major parts or major components is also licensed to manufacture firearms and ammunition; and
(d) The authority to import machinery, equipment, and firearm parts and ammunition
components for the manufacture thereof. Firearm parts and ammunition components to be
imported shall, however, be limited to those authorized to be manufactured as reflected in the
approved License to Manufacture. The Import Permit shall be under the administration of the
PNP.
A licensed manufacturer of ammunition is also entitled to import various reference firearms needed to
test the ammunition manufactured under the License to Manufacture. A licensed manufacturer of
firearms, on the other hand, is entitled to import various firearms for reference, test and evaluation for
manufacture of similar, types of firearms covered by the License to Manufacture.
An export permit shall, however, be necessary to export manufactured parts or finished products of
firearms and ammunition. The Export Permit of firearms and ammunition shall be under the
administration of the PNP.
Section 15. Registration of Locally Manufactured and Imported Firearms. Local manufacturers and
importers of firearms and major parts thereof shall register the same as follows:
(a) For locally manufactured firearms and major parts thereof, the initial registration shall be
done at the manufacturing facility: Provided, That firearms intended for export shall no longer be
subjected to ballistic identification procedures; and
(b) For imported firearms and major parts thereof, the registration shall be done upon arrival at
the FEO of the PNP storage facility.
Section 16. License and Scope of License to Deal. The License to Deal authorizes the purchase, sale
and general business in handling firearms and ammunition, major and minor parts of firearms,
accessories, spare parts, components, and reloading machines, which shall be issued by the Chief of the
PNP.
Section 17. License and Scope of License for Gunsmiths. The license for gunsmiths shall allow the
grantee to repair registered firearms. The license shall include customization of firearms from finished or
manufactured parts thereof on per order basis and not in commercial quantities and making the minor
parts thereof, i.e. pins, triggers, trigger bows, sights and the like only for the purpose of repairing the
registered firearm. The license for gunsmiths shall be issued by the Chief of the PNP.
Section 18. Firearms for Use in Sports and Competitions. A qualified individual shall apply for a
permit to transport his/her registered firearm/s from his/her residence to the firing range/s and
competition sites as may be warranted.
Section 19. Renewal of Licenses and Registration. All types of licenses to possess a firearm shall be
renewed every two (2) years. Failure to renew the license on or before the date of its expiration shall
cause the revocation of the license and of the registration of the firearm/s under said licensee.
The registration of the firearm shall be renewed every four (4) years. Failure to renew the registration of
the firearm on or before the date of expiration shall cause the revocation of the license of the firearm.
The said firearm shall be confiscated or forfeited in favor of the government after due process.
The failure to renew a license or registration within the periods stated above on two (2) occasions shall
cause the holder of the firearm to be perpetually disqualified from applying for any firearm license. The
application for the renewal of the license or registration may be submitted to the FEO of the PNP, within
six (6) months before the date of the expiration of such license or registration.
Section 20. Inspection and Inventory. The Chief of the PNP or his/her authorized representative shall
require the submission of reports, inspect or examine the inventory and records of a licensed
manufacturer, dealer or importer of firearms and ammunition during reasonable hours.
ARTICLE IV
ACQUISITION, DEPOSIT OF FIREARMS, ABANDONED, DEMILITARIZED AND ANTIQUE FIREARMS

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Section 21. Acquisition or Purchase and Sale of Firearms and Ammunition. Firearms and ammunition
may only be acquired or purchased from authorized dealers, importers or local manufacturers and may
be transferred or sold only from a licensed citizen or licensed juridical entity to another licensed citizen
or licensed juridical entity:Provided, That, during election periods, the sale and registration of firearms
and ammunition and the issuance of the corresponding licenses to citizens shall be allowed on the
condition that the transport or delivery thereof shall strictly comply with the issuances, resolutions,
rules and regulations promulgated by the Commission on Elections.
Section 22. Deposit of Firearms by Persons Arriving From Abroad. A person arriving in the Philippines
who is legally in possession of any firearm or ammunition in his/her country of origin and who has
declared the existence of the firearm upon embarkation and disembarkation but whose firearm is not
registered in the Philippines in accordance with this Act shall deposit the same upon written receipt with
the Collector of Customs for delivery to the FEO of the PNP for safekeeping, or for the issuance of a
permit to transport if the person is a competitor in a sports shooting competition. If the importation of
the same is allowed and the party in question desires to obtain a domestic firearm license, the same
should be undertaken in accordance with the provisions of this Act. If no license is desired or leave to
import is not granted, the firearm or ammunition in question shall remain in the custody of the FEO of
the PNP until otherwise disposed of in-accordance with law.
Section 23. Return of Firearms to Owner upon Departure from the Philippines. Upon the departure
from the Philippines of any person whose firearm or ammunition is in the custody of the FEO of the PNP,
the same shall, upon timely request, be delivered to the person through the Collector of Customs. In the
case of a participant in a local sports shooting competition, the firearm must be presented to the
Collector of Customs before the same is allowed to be loaded on board the carrier on which the person
is to board.
Section 24. Safekeeping of Firearms and Ammunition. Any licensee may deposit a registered firearm
to the FEO of the PNP, or any Police Regional Office for safekeeping. Reasonable fees for storage shall
be imposed.
Section 25. Abandoned Firearms and Ammunition. Any firearm or ammunition deposited in the
custody of the FEO of the PNP pursuant to the provisions of this Act, shall be deemed to have been
abandoned by the owner or his/her authorized representative if he/she failed to reclaim the same within
five (5) years or failed to advise the FEO of the PNP of the disposition to be made thereof. Thereafter,
the FEO of the PNP may dispose of the same after compliance with established procedures.
Section 26. Death or Disability of Licensee. Upon the death or legal disability of the holder of a
firearm license, it shall be the duty of his/her next of kin, nearest relative, legal representative, or other
person who shall knowingly come into possession of such firearm or ammunition, to deliver the same to
the FEO of the PNP or Police Regional Office, and such firearm or ammunition shall be retained by the
police custodian pending the issuance of a license and its registration in accordance, with this Act. The
failure to deliver the firearm or ammunition within six (6) months after the death or legal disability of
the licensee shall render the possessor liable for illegal possession of the firearm.
Section 27. Antique Firearm. Any person who possesses an antique firearm shall register the same
and secure a collectors license from the FEO of the PNP. Proper storage of antique firearm shall be
strictly imposed. Noncompliance of this provision shall be considered as illegal possession of the firearm
as penalized in this Act.
ARTICLE V
PENAL PROVISIONS
Section 28. Unlawful Acquisition, or Possession of Firearms and Ammunition. The unlawful
acquisition, possession of firearms and ammunition shall be penalized as follows:
(a) The penalty of prision mayor in its medium period shall be imposed upon any person who
shall unlawfully acquire or possess a small arm;
(b) The penalty of reclusion temporal to reclusion perpetua shall be imposed if three (3) or more
small arms or Class-A light weapons are unlawfully acquired or possessed by any person;
(c) The penalty of prision mayor in its maximum period shall be imposed upon any person who
shall unlawfully acquire or possess a Class-A light weapon;
(d) The penalty of reclusion perpetua shall be imposed upon any person who shall, unlawfully
acquire or possess a Class-B light weapon;
(e) The penalty of one (1) degree higher than that provided in paragraphs (a) to (c) in this
section shall be imposed upon any person who shall unlawfully possess any firearm under any or
combination of the following conditions:
(1) Loaded with ammunition or inserted with a loaded magazine;

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(2) Fitted or mounted with laser or any gadget used to guide the shooter to hit the target
such as thermal weapon sight (TWS) and the like;
(3) Fitted or mounted with sniper scopes, firearm muffler or firearm silencer;
(4) Accompanied with an extra barrel; and
(5) Converted to be capable of firing full automatic bursts.
(f) The penalty of prision mayor in its minimum period shall be imposed upon any person who
shall unlawfully acquire or possess a major part of a small arm;
(g) The penalty of prision mayor in its minimum period shall be imposed upon any person who
shall unlawfully acquire or possess ammunition for a small arm or Class-A light weapon. If the
violation of this paragraph is committed by the same person charged with the unlawful
acquisition or possession of a small arm, the former violation shall be absorbed by the latter;
(h) The penalty of prision mayor in its medium period shall be imposed upon any person who
shall unlawfully acquire or possess a major part of a Class-A light weapon;
(i) The penalty of prision mayor in its medium period shall be imposed upon any person who
shall unlawfully acquire or possess ammunition for a Class-A light weapon. If the violation of this
paragraph is committed by the same person charged with the unlawful acquisition or possession
of a Class-A light weapon, the former violation shall be absorbed by the latter;
(j) The penalty of prision mayor in its maximum period shall be imposed upon any person who
shall unlawfully acquire or possess a major part of a Class-B light weapon; and
(k) The penalty of prision mayor in its maximum period shall be imposed upon any person who
shall unlawfully acquire or possess ammunition for a Class-B light weapon. If the violation of this
paragraph is committed by the same person charged with the unlawful acquisition or possession
of a Class-B light weapon, the former violation shall be absorbed by the latter.
Section 29. Use of Loose Firearm in the Commission of a Crime. The use of a loose firearm, when
inherent in the commission of a crime punishable under the Revised Penal Code or other special laws,
shall be considered as an aggravating circumstance: Provided, That if the crime committed with the use
of a loose firearm is penalized by the law with a maximum penalty which is lower than that prescribed in
the preceding section for illegal possession of firearm, the penalty for illegal possession of firearm shall
be imposed in lieu of the penalty for the crime charged: Provided, further, That if the crime committed
with the use of a loose firearm is penalized by the law with a maximum penalty which is equal to that
imposed under the preceding section for illegal possession of firearms, the penalty of prision mayor in
its minimum period shall be imposed in addition to the penalty for the crime punishable under the
Revised Penal Code or other special laws of which he/she is found guilty.
If the violation of this Act is in furtherance of, or incident to, or in connection with the crime of rebellion
of insurrection, or attempted coup d etat, such violation shall be absorbed as an element of the crime
of rebellion or insurrection, or attempted coup d etat.
If the crime is committed by the person without using the loose firearm, the violation of this Act shall be
considered as a distinct and separate offense.
Section 30. Liability of Juridical Person. The penalty of prision mayor in its minimum to prision
mayor in its medium period shall be imposed upon the owner, president, manager, director or other
responsible officer of/any public or private firm, company, corporation or entity who shall willfully or
knowingly allow any of the firearms owned by such firm, company, corporation or entity to be used by
any person or persons found guilty of violating the provisions of the preceding section, or willfully or
knowingly allow any of them to use unregistered firearm or firearms without any legal authority to be
carried outside of their residence in the course of their employment.
Section 31. Absence of Permit to Carry Outside of Residence. The penalty of prision correccional and
a fine of Ten thousand pesos (P10,000.00) shall be imposed upon any person who is licensed to own a
firearm but who shall carry the registered firearm outside his/her residence without any legal authority
therefor.
Section 32. Unlawful Manufacture, Importation, Sale or Disposition of Firearms or Ammunition or Parts
Thereof, Machinery, Tool or Instrument Used or Intended to be Used in the Manufacture of Firearms,
Ammunition or Parts Thereof. The penalty of reclusion temporal to reclusion perpetua shall be
imposed upon any person who shall unlawfully engage in the manufacture, importation, sale or
disposition of a firearm or ammunition, or a major part of a firearm or ammunition, or machinery, tool or
instrument used or intended to be used by the same person in the manufacture of a firearm,
ammunition, or a major part thereof.

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The possession of any machinery, tool or instrument used directly in the manufacture of firearms,
ammunition, or major parts thereof by any person whose business, employment or activity does not
lawfully deal with the possession of such article, shall be prima facie evidence that such article is
intended to be used in the unlawful or illegal manufacture of firearms, ammunition or parts thereof.
The penalty of prision mayor in its minimum period to prision mayor in its medium period shall be
imposed upon any laborer, worker or employee of a licensed firearms dealer who shall unlawfully take,
sell or otherwise dispose of parts of firearms or ammunition which the company manufactures and sells,
and other materials used by the company in the manufacture or sale of firearms or ammunition. The
buyer or possessor of such stolen part or material, who is aware that such part or material was stolen,
shall suffer the same penalty as the laborer, worker or employee.
If the violation or offense is committed by a corporation, partnership, association or other juridical
entity, the penalty provided for in this section shall be imposed upon the directors, officers, employees
or other officials or persons therein who knowingly and willingly participated in the unlawful act.
Section 33. Arms Smuggling. The penalty of reclusion perpetua shall be imposed upon any person
who shall engage or participate in arms smuggling as defined in this Act.
Section 34. Tampering, Obliteration or Alteration of Firearms Identification. The penalty of prision
correccionalto prision mayor in its minimum period shall be imposed upon any person who shall tamper,
obliterate or alter without authority the barrel, slide, frame, receiver, cylinder, or bolt assembly,
including the name of the maker, model, or serial number of any firearm, or who shall replace without
authority the barrel, slide, frame, receiver, cylinder, or bolt assembly, including its individual or peculiar
identifying characteristics essential in forensic examination of a firearm or light weapon.
The PNP shall place this information, including its individual or peculiar identifying characteristics into
the database of integrated firearms identification system of the PNP Crime Laboratory for future use and
identification of a particular firearm.
Section 35. Use of an Imitation Firearm. An imitation firearm used in the commission of a crime shall
be considered a real firearm as defined in this Act and the person who committed the crime shall be
punished in accordance with this Act: Provided, That injuries caused on the occasion of the conduct of
competitions, sports, games, or any recreation activities involving imitation firearms shall not be
punishable under this Act.
Section 36. In Custodia Legis. During the pendency of any case filed in violation of this Act, seized
firearm, ammunition, or parts thereof, machinery, tools or instruments shall remain in the custody of the
court. If the court decides that it has no adequate means to safely keep the same, the court shall issue
an order to turn over to the PNP Crime Laboratory such firearm, ammunition, or parts thereof,
machinery, tools or instruments in its custody during the pendency of the case and to produce the same
to the court when so ordered. No bond shall be admitted for the release of the firearm, ammunition or
parts thereof, machinery, tool or instrument. Any violation of this paragraph shall be punishable
by prision mayor in its minimum period to prision mayor in its medium period.
Section 37. Confiscation and Forfeiture. The imposition of penalty for any violation of this Act shall
carry with it the accessory penalty of confiscation and forfeiture of the firearm, ammunition, or parts
thereof, machinery, tool or instrument in favor of the government which shall be disposed of in
accordance with law.
Section 38. Liability for Planting Evidence. The penalty of prision mayor in its maximum period shall
be imposed upon any person who shall willfully and maliciously insert; place, and/or attach, directly or
indirectly, through any overt or covert act, any firearm, or ammunition, or parts thereof in the person,
house, effects, or in the immediate vicinity of an innocent individual for the purpose of implicating or
incriminating the person, or imputing the commission of any violation of the provisions of this Act to
said individual. If the person found guilty under this paragraph is a public officer or employee, such
person shall suffer the penalty of reclusion perpetua.
Section 39. Grounds for Revocation, Cancellation or Suspension of License or Permit. The Chief of the
PNP or his/her authorized representative may revoke, cancel or suspend a license or permit on the
following grounds:
(a) Commission of a crime or offense involving the firearm, ammunition, of major parts thereof;
(b) Conviction of a crime involving moral turpitude or any offense where the penalty carries an
imprisonment of more than six (6) years;
(c) Loss of the firearm, ammunition, or any parts thereof through negligence;
(d) Carrying of the firearm, ammunition, or major parts thereof outside of residence or workplace
without, the proper permit to carry the same;
(e) Carrying of the firearm, ammunition, or major parts thereof in prohibited places;

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(f) Dismissal for cause from the service in case of government official and employee;
(g) Commission of any of the acts penalized under Republic Act No. 9165, otherwise known as
the "Comprehensive Dangerous Drugs Act of 2002;
(h) Submission of falsified documents or misrepresentation in the application to obtain a license
or permit;
(i) Noncompliance of reportorial requirements; and
(j) By virtue of a court order.
Section 40. Failure to Notify Lost or Stolen Firearm or Light Weapon. A fine of Ten thousand pesos
(P10,000.00) shall be imposed upon any licensed firearm holder who fails to report to the FEO of the
PNP that the subject firearm has been lost or stolen within a period of thirty (30) days from the date of
discovery.
Likewise, a fine of Five thousand pesos (P5,000.00) shall be imposed upon any person holding a valid
firearm license who changes residence or office address other than that indicated in the license card
and fails within a period of thirty (30) days from said transfer to notify the FEO of the PNP of such
change of address.
Section 41. Illegal Transfer/Registration of Firearms. It shall be unlawful to transfer possession of any
firearm to any person who has not yet obtained or secured the necessary license or permit thereof.
The penalty of prision correccional shall be imposed upon any person who shall violate the provision of
the preceding paragraph. In addition, he/she shall be disqualified to apply for a license to possess other
firearms and all his/her existing firearms licenses whether for purposes of commerce or possession,
shall be revoked. If government-issued firearms, ammunition or major parts of firearms or light weapons
are unlawfully disposed, sold or transferred by any law enforcement agent or public officer to private
individuals, the penalty of reclusion temporal shall be imposed.
Any public officer or employee or any person who shall facilitate the registration of a firearm through
fraud, deceit, misrepresentation or submission of falsified documents shall suffer the penalty of prision
correccional.
ARTICLE VI
FINAL PROVISIONS
Section 42. Firearms Repository. The FEO of the PNP shall be the sole repository of all firearms
records to include imported and locally manufactured firearms and ammunition. Within one (1) year
upon approval of this Act, all military and law enforcement agencies, government agencies, LGUs and
government-owned or -controlled corporations shall submit an inventory of all their firearms and
ammunition to the PNP.
Section 43. Final Amnesty. Persons in possession of unregistered firearms and holders of expired
license or unregistered firearms shall register and renew the same through the Final General Amnesty
within six (6) months from the promulgation of the implementing rules and regulations of this Act.
During the interim period of six (6) months, no person applying for license shall be charged of any
delinquent payment accruing to the firearm subject for registration. The PNP shall conduct an intensive
nationwide campaign to ensure that the general public is properly informed of the provisions of this Act.
Section 44. Implementing Rules and Regulations. Within one hundred twenty (120) days from the
effectivity of this Act, the Chief of the PNP, after public hearings and consultation with concerned
sectors of society shall formulate the necessary rules and regulations for the effective implementation
of this Act to be published in at least two (2) national newspapers of general circulation.
Section 45. Repealing Clause. This Act repeals Sections 1, 2, 5 and 7 of Presidential Decree No. 1866,
as amended, and Section 6 of Republic Act No. 8294 and all other laws, executive orders, letters of
instruction, issuances, circulars, administrative orders, rules or regulations that are inconsistent
herewith.
Section 46. Separability Clause. If any provision of this Act or any part hereof is held invalid or
unconstitutional, the remainder of the law or the provision not otherwise affected shall remain valid and
subsisting.
Section 47. Effectivity. This Act shall take effect after fifteen (15) days from its publication in a
newspaper of nationwide circulation.
Approved: May 29, 2013
Republic Act No. 9516
December 22
Amending Section 3 and 4 of PD 1866

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AN ACT FURTHER AMENDING THE PROVISIONS OF PRESIDENTIAL DECREE NO. 1866, AS

AMENDED, ENTITLED CODIFYING THE LAWS ON ILLEGAL/UNLAWFUL POSSESSION,
MANUFACTURE, DEALING IN, ACQUISITION OR DISPOSITION OF FIREARMS, AMMUNITION OR
EXPLOSIVES OR INSTRUMENTS USED IN THE MANUFACTURE OF FIREARMS, AMMUNITION OR
EXPLOSIVES, AND IMPOSING STIFFER PENALTIES FOR CERTAIN VIOLATIONS THEREOF, AND
FOR OTHER RELEVANT PURPOSES"
Be it enacted by the Senate and House of Representatives of the Philippines in Congress assembled::
Section 1. Section 3 of Presidential Decree No. 1866, as amended, is hereby further amended to read
as follows:
"Section 3. Unlawful Manufacture, Sales, Acquisition, Disposition, Importation or Possession of an
Explosive or Incendiary Device. - The penalty of reclusion perpetua shall be imposed upon any
person who shall willfully and unlawfully manufacture, assemble, deal in, acquire, dispose,
import or possess any explosive or incendiary device, with knowledge of its existence and its
explosive or incendiary character, where the explosive or incendiary device is capable of
producing destructive effect on contiguous objects or causing injury or death to any person,
including but not limited to, hand grenade(s), rifle grenade(s), 'pillbox bomb', 'molotov cocktail
bomb', 'fire bomb', and other similar explosive and incendiary devices.
"Provided, That mere possession of any explosive or incendiary device shall be prima
facie evidence that the person had knowledge of the existence and the explosive or incendiary
character of the device.
"Provided, however, That a temporary, incidental, casual, harmless, or transient possession or
control of any explosive or incendiary device, without the knowledge of its existence or its
explosive or incendiary character, shall not be a violation of this Section.
"Provided, Further, That the temporary, incidental, casual, harmless, or transient possession or
control of any explosive or incendiary device for the sole purpose of surrendering it to the proper
authorities shall not be a violation of this Section.
"Provided, finally, That in addition to the instances provided in the two (2) immediately
preceeding paragraphs, the court may determine the absence of the intent to possess, otherwise
referred to as 'animus possidendi", in accordance with the facts and circumstances of each case
and the application of other pertinent laws, among other things, Articles 11 and 12 of the
Revised Penal Code, as amended."
Section 2. Section 4 of Presidential Decree No. 1866, as amended, is hereby further amended to read
as follows:
"SEC 3-A. Unlawful Manufacture, Sales, Acquisition, Disposition, Importation or Possession of a
Part, Ingredient, Machinery, Tool or Instrument Used or Intended to be Used for the Manufacture,
Construction, Assembly, Delivery or Detonation. - The penalty of reclusion perpetua shall be
imposed upon any person who shall willfully and unlawfully manufacture, assemble, deal in,
acquire, dispose, import or possess any part, ingredient, machinery, tool or instrument of any
explosive or incendiary device, whether chemical, mechanical, electronic, electrical or otherwise,
used or intended to be used by that person for its manufacture, construction, assembly, delivery
or detonation, where the explosive or incendiary device is capable or is intended to be made
capable of producing destructive effect on contiguous objects or causing injury or death to any
person.
"Provided, That the mere possession of any part, ingredient, machinery, tool or instrument
directly used in the manufacture, construction, assembly, delivery or detonation of any explosive
or incendiary device, by any person whose business activity, or employment does not lawfully
deal with the possession of such article shall be prima facie evidence that such article is
intended to be used by that person in the unlawful/illegal manufacture, construction, assembly,
delivery or detonation of an explosive or incendiary device.
"Provided, however, That a temporary incidental, casual, harmless or transient possession or
control of any part, machinery, tool or instrument directly used in the manufacture, construction,
assembly, delivery or detonation of any explosive or incendiary device, without the knowledge of
its existence or character as part, ingredient, machinery, tool or instrument directly used in the
manufacture, construction, assembly, delivery or detonation of any explosive or incendiary
device, shall not be a violation of this Section.
"Provided, Further, That the temporary, incidental, casual, harmless, or transient possession or
control of any part, ingredient, machinery, tool or instrument directly used in the manufacture,
construction, assembly, delivery or detonation of any explosive or incendiary device for the sole
purpose of surrendering it to the proper authorities shall not be a violation of this Section.
"Provided, finally, That in addition to the instances provided in the two (2) immediately
preceeding paragraphs, the court may determine the absence of the intent to possess, otherwise

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referred to as 'animus possidendi', in accordance with the facts and circumstances of each case
and the application of other pertinent laws, among other things, Articles 11 and 12 of the
Revised Penal Code, as amended."
Section 3. Insert a new Section 3-B, 3-C, 3-D, 4, 4-A, 4-B, 4-C, 4-D, 4-E, 4-E and 4-F in Presidential
Decree No. 1866 to read as follows:
"SEC. 3-B. Penalty for the Owner, President, Manager, Director or Other Responsible Officer of
Any Public or Private Firm, Company, Corporation or Entity. - The penalty of reclusion
perpetua shall be imposed upon the owner, president, manager, director or other responsible
officer of any public or private firm, company, corporation or entity, who shall willfully or
knowingly allow any explosive or incendiary device or parts thereof owned or controlled by such
firm, company, corporation or entity to be used by any person or persons found guilty of
violating the provisions of the preceding paragraphs.
"SEC. 3-C. Relationship of Other Crimes with a Violation of this Decree and the Penalty Therefor.
- When a violation of Section 3, 3-A or 3-B of this Decree is a necessary means for committing
any of the crimes defined in the Revised Penal Code or special laws, or is in furtherance of,
incident to, in connection with, by reason of, or on occassion of any of the crimes defined in the
Revised Penal Code or special laws, the penalty of reclusion perpetua and a fine ranging from
One hundred Thousand pesos (P100,000.00) to One million pesos (P1,000,000.00) shall be
imposed.
"SEC. 3-D. Former Conviction or Acquittal; Double Jeopardy. - Subject to the provisions of the
Rules of Court on double jeopardy, if the application thereof is more favorable to the accused,
the conviction or acquittal of the accused or the dismissal of the case for violation of this Decree
shall be a bar to another prosecution of the same accused for any offense where the violation of
this Decree was a necessary means for committing the offense or in furtherance of which,
incident to which, in connection with which, by reason of which, or on occasion of which, the
violation of this Decree was committed, and vice versa.
"SEC. 4. Responsibility and liability of Law Enforcement Agencies and Other Government
Officials and Employees in Testifying as Prosecution Witnesses. - Any member of law
enforcement agencies or any other government official and employee who, after due notice, fails
or refuses, intentionally or negligently, to appear as a witness for the prosecution of the defense
in any proceeding, involving violations of this Decree, without any valid reason, shall be punished
with reclusion temporal and a fine of Five hundred Thousand pesos (P500,000.00) in addition to
the administrative liability he/she may be meted out by his/her immediate superior and/or
appropriate body.
"The immediate superior of the member of the law enforcement agency or any other
government employee mentioned in the preceding paragraph shall be penalized with prision
correccional and a fine of not less than Ten Thousand pesos (P10,000.00) but not more than Fifty
thousand pesos (P50,000.00) and in addition, perpetual absolute disqualification from public
office if despite due notice to them and to the witness concerned, the former does not exert
reasonable effort to present the latter to the court.
"The member of the law enforcement agency or any other government employee mentioned in
the preceding paragraphs shall not be transferred or reassigned to any other government office
located in another territorial jurisdiction during the pendency of the case in court. However, the
concerned member of the law enforcement agency or government employee may be transferred
or reassigned for compelling reasons: Provided, That his/her immediate superior shall notify the
court where the case is pending of the order to transfer or reassign, within twenty-four (24)
hours from its approval: Provided, further, That his/her immediate superior shall be penalized
with prision correccional and a fine of not less than Ten thousand pesos (P10,000.00) but not
more than Fifty thousand pesos (P50,000.00) and in addition, perpetual absolute disqualification
from public office, should he/she fail to notify the court of such order to transfer or reassign.
"Prosecution and punishment under this Section shall be without prejudice to any liability for
violation of any existing law.
"SEC 4-A. Criminal Liability for Planting of Evidence. - Any person who is found guilty of 'planting'
any explosive or incendiary device or any part, ingredient, machinery, tool or instrument of any
explosive or incendiary device, whether chemical, mechanical, electronic, electrical or otherwise,
shall suffer the penalty of reclusion perpetua.
"Planting of evidence shall mean the willful act by any person of maliciously and surreptitiously
inserting, placing, adding or attaching, directly or indirectly, through any overt or covert act,
whatever quantity of any explosive or incendiary device or any part, ingredient, machinery, tool
or instrument of any explosive or incendiary device, whether chemical, mechanical, electronic,
electrical or otherwise in the person, house, effects or in the immediate vicinity of an innocent
individual for the purpose of implicating incriminating or imputing the commission of any
violation of this Decree.

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"SEC. 4-B. Continuous Trial. - In cases involving violations of this Decree, the judge shall set the
case for continuous trial on a daily basis from Monday to Friday or other short-term trial calendar
so as to ensure speedy trial. Such case shall be terminated within ninety (90) days from
arraignment of the accused.
"SEC. 4-C. Authority to Import, Sell or Possess Chemicals or Accessories for Explosives. - Only
persons or entities issued a manufacturer's license, dealer's license or purchaser's license by the
Philippine National Police (PNP)-Firearms and Explosives Division may import any of the chemical
or accessories that can be used in the manufacture of explosives or explosive ingredients from
foreign suppliers, or possess or sell them to licensed dealers or end users, as the case may be.
"SEC. 4-D. Types of Chemicals/Accessories Covered. - The chemicals and accessories mentioned
in the preceding Section shall exclusively refer to chlorates, nitrates, nitric acid and such other
chemicals and accessories that can be used for the manufacture of explosives and explosive
ingredients.
"SEC. 4-E. Record of Transactions. - Any person or entity who intends to import, sell or possess
the aforecited chemicals or accessories shall file an application with the chief of the PNP, stating
therein the purpose for which the license and/or permit is sought and such other information as
may be required by the said official. The concerned person or entity shall maintain a permanent
record of all transactions entered into in relation with the aforecited chemicals or accessories,
which documents shall be open to inspection by the appropriate authorities.
"SEC. 4-F. Cancellation of License. - Failure to comply with the provision of Section 4-C, 4-D and
4-E shall be sufficient cause for the cancellation of the license and the confiscation of all such
chemicals or accessories, whether or not lawfully imported, purchased or possessed by the
subject person or entity."
Sec. 4. Separability Clause. - If, for any reason, any provision of this Act is declared to be
unconstitutional or invalid, the other Sections or provisions thereof which are not affected thereby shall
continue to be in full force and effect.
Sec. 5. Repealing Clause. - All laws, decrees, orders, rules and regulations or parts thereof
inconsistent with the provisions of this Act are hereby repealed, amended, or modified accordingly.
Sec. 6. Effecfivity. - This Act shall take effect after fifteen (15) days following its publication in the
Official Gazette or in two (2) newspapers of general circulation.
Approved: DEC 22, 2008
PRESIDENTIAL DECREE No. 1619
PENALIZING THE USE OR POSSESSION OR THE UNAUTHORIZED SALE TO MINORS OF
VOLATILE SUBSTANCES FOR THE PURPOSE OF INDUCING INTOXICATION OR IN ANY MANNER
CHANGING, DISTORTING OR DISTURBING THE AUDITORY, VISUAL OR MENTAL PROCESS
WHEREAS, reports from law enforcement agencies reveal that certain substances which are openly sold
to the public are being availed of by drug dependents as substitutes for dangerous drugs;
WHEREAS, medical research and studies show that the use of such substitutes could cause death,
physiological damage to the liver, kidneys, heart, blood and nervous system, induce dependency, selfdestructive and anti-social acts while under the influence thereof, and lead to the use of other drugs;
WHEREAS, it is imperative to stop the use of such substances as substitutes for dangerous drugs.
NOW, THEREFORE, I, FERDINAND E. MARCOS, President of the Republic of the Philippines, by virtue of
the powers vested in me by the Constitution, do hereby decree and order as follows:
Section 1. Volatile substances as used in this Decree shall mean and include any liquid, solid or mixed
substance having the property of releasing toxic vapors or fumes containing one or more of the
following chemical compounds: methanol, ethanol, isopropanol, ethyl acetate, n-propyl acetate, n-butyl
acetate, acetone, methyl ethyl ketone, methyl butyl ketone, benzene, toluene, xylene, stryene,
naphtalene, n-pentane, n-hexane, n-heptane, methylene chloride, trichloroenthylene,
tetrachloroenthylene, nitrous oxide, dichlorodifluoromethane, chlorodifluoromethane, isoamyl nitrate,
ether or chloroform or any other chemical substance which when sniffed, smelled, inhaled, or
introduced into the physiological system of the body produces or induces a condition of intoxication,
inebriation, excitement, stupefaction, dulling of the brain or nervous system, depression, giddiness,
paralysis, or irrational behaviour or in any manner changing, distorting or disturbing the auditory, visual
or mental processes.
Section 2. The use or possession of volatile substances for the purpose of inhalation to induce or
produce intoxication or any of the conditions described in the preceding section shall be punishable by
imprisonment ranging from six months and one day to four years and a fine ranging from six hundred to

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four thousand, pesos: Provided, however, That the provisions of Article VI, entitled "Rehabilitative
Confinement and Suspension of Sentence", of Republic Act No. 6425, as amended (otherwise known as
the Dangerous Drugs Act of 1972), shall, whenever appropriate, apply to the cases arising hereunder.
Section 3. The penalty of imprisonment ranging from four years and one day to eight years and a fine
ranging from four thousand to eight thousand pesos shall be imposed upon any person who sells,
administers, delivers, or gives away to another, on any terms whatsoever, or distributes, dispatches in
transit or transports or who acts as a broker in any of such transactions, any substance or mixture of
substances containing one or more of the chemical compounds mentioned in Section one hereof for the
purpose of inhalation to induce or produce intoxication or any of the conditions described therein.
Section 4. The penalty of imprisonment ranging from four years and one month to eight years and a
fine ranging from four thousand to eight thousand pesos shall be imposed upon any person, or group of
persons who shall maintain a den, dive or resort where any substance or mixture of substances
containing one or more of the chemical compounds mentioned in Section one hereof is used for the
purpose of inhalation to induce or produce intoxication or any of the conditions described therein.
Section 5. The sale of, and offer to sell, volatile substances to minors without requiring the written
consent of their parents or guardians as a condition for such sale or offer to sell shall be punishable by
imprisonment ranging from six months and one day to four years and a fine ranging from six hundred to
four thousand pesos: Provided, That when the minor is eighteen years or over and is duly licensed to
drive a motor vehicle, such written consent shall not be necessary when the volatile substance sold or
offered for sale is gasoline or any other motive fuel for motor vehicles.
Section 6. The sale of, and offer to sell, to minors of liquors or beverages containing an alcoholic
content of thirty per centum or above (60 proof or above) is hereby prohibited and shall be punishable
by imprisonment ranging from six months and one day to four years and a fine ranging from six
hundred to four thousand pesos.
Section 7. The Dangerous Drugs Board is hereby empowered to issue rules and regulations to carry out
the purposes of this decree, including the treatment and rehabilitation of dependents on volatile
substances and their confinement in rehabilitation or commercial products containing one or more of
the chemical compounds mentioned in Section one hereof, and the publication, whenever the need
arises, in a newspaper of general circulation, a list of the mentioned industrial or commercial products
the sale of which is restricted or prohibited under the preceding sections.
Section 8. This Decree shall take effect immediately.
DONE in the City of Manila, this 23rd day of July, in the year of Our Lord, nineteen hundred and seventynine.
REPUBLIC ACT No. 10586
AN ACT PENALIZING PERSONS DRIVING UNDER THE INFLUENCE OF ALCOHOL, DANGEROUS
DRUGS, AND SIMILAR SUBSTANCES, AND FOR OTHER PURPOSES
Be it enacted by the Senate and House of Representatives of the Philippines in Congress assembled:
Section 1. Short Title. This Act shall be known as the "Anti-Drunk and Drugged Driving Act of 2013.
Section 2. Declaration of Policy. Pursuant to the Constitutional principle that recognizes the
protection of life and property and the promotion of the general welfare as essential for the enjoyment
of the blessing of democracy, it is hereby declared the policy of the State to ensure road safety through
the observance of the citizenry of responsible and ethical driving standards.
Towards this end, the State shall penalize the acts of driving under the influence of alcohol, dangerous
drugs and other intoxicating substances and shall inculcate the standards of safe driving and the
benefits that may be derived from it through institutional programs and appropriate public information
strategies.
Section 3. Definition of Terms. For purposes of this Act:
(a) Alcohol refers to alcoholic beverages classified into beer, wine and distilled spirits, the
consumption of which produces intoxication.
(b) Breath analyzer refers to the equipment which can determine the blood alcohol concentration
level of a person through testing of his breath.
(c) Chemical tests refer to breath, saliva, urine or blood tests to determine the blood alcohol
concentration level and/or positive indication of dangerous drugs and similar substances in a
persons body.

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(d) Dangerous drugs and other similar substances refer to drugs listed in the schedules annexed
to the 1961 Single Convention on Narcotics Drugs, as amended by the 1972 Protocol, and in the
schedules annexed to the 1971 Single Convention of Psychotropic Substances as enumerated in
its attachment which is an integral part of Republic Act No. 9165, otherwise known as the
"Comprehensive Dangerous Drugs Act of 2002 and those that the Board may reclassify, add to
or remove from the list of dangerous drugs.
(e) Driving under the influence of alcohol refers to the act of operating a motor vehicle while the
drivers blood alcohol concentration level has, after being subjected to a breath analyzer test,
reached the level of intoxication, as established jointly by the Department of Health (DOH), the
National Police Commission (NAPOLCOM) and the Department of Transportation and
Communications (DOTC).
(f) Driving under the influence of dangerous drugs and other similar substances refers to the act
of operating a motor vehicle while the driver, after being subjected to a confirmatory test as
mandated under Republic Act No. 9165, is found to be positive for use of any dangerous drug.
(g) Field sobriety tests refer to standardized tests to initially assess and determine intoxication,
such as the horizontal gaze nystagmus, the walk-and-turn, the one-leg stand, and other similar
tests as determined jointly by the DOH, the NAPOLCOM and the DOTC.
(h) Motor vehicle refers to any land transportation vehicle propelled by any power other than
muscular power.
(i) Motor vehicles designed to carry hazardous materials refer to those designed to carry or
transport materials which may endanger health and lives of the public.
(j) Public utility vehicles refer to motor vehicles for hire and used to carry or transport
passengers or goods.
Section 4. Drivers Education. Every applicant for a motor vehicle drivers license shall complete a
course of instruction that provides information on safe driving including, but not limited to, the effects of
the consumption of alcoholic beverages on the ability of a person to operate a motor vehicle, the
hazards of driving under the influence of alcohol, dangerous drugs and/or other similar substances, and
the penalties attached for violation thereof.
For professional drivers, every applicant for a drivers license or those applying for renewal thereof shall
undergo the drivers education herein stated.
The drivers license written examination shall include questions concerning the effects of alcohol and
drug intoxication on the ability of a person to operate a motor vehicle and the legal and pecuniary
consequences resulting from violation of the provisions of this Act.
Section 5. Punishable Act. It shall be unlawful for any person to drive a motor vehicle while under the
influence of alcohol, dangerous drugs and/or other similar substances.
Section 6. Conduct of Field Sobriety, Chemical and Confirmatory Tests. A law enforcement officer who
has probable cause to believe that a person is driving under the influence of alcohol, dangerous drugs
and/or other similar substances by apparent indications and manifestations, including overspeeding,
weaving, lane straddling, sudden stops, swerving, poor coordination or the evident smell of alcohol in a
persons breath or signs of use of dangerous drugs and other similar substances, shall conduct field
sobriety tests.
If the driver fails in the sobriety tests, it shall be the duty of the law enforcement officer to implement
the mandatory determination of the drivers blood alcohol concentration level through the use of a
breath analyzer or similar measuring instrument.
If the law enforcement officer has probable cause to believe that a person is driving under the influence
of dangerous drugs and/or other similar substances, it shall be the duty of the law enforcement officer
to bring the driver to the nearest police station to be subjected to a drug screening test and, if
necessary, a drug confirmatory test as mandated under Republic Act No. 9165.
Law enforcement officers and deputized local traffic enforcement officers shall be responsible in
implementing this section.
Section 7. Mandatory Alcohol and Chemical Testing of Drivers Involved in Motor Vehicular Accidents.
A driver of a motor vehicle involved in a vehicular accident resulting in the loss of human life or physical
injuries shall be subjected to chemical tests, including a drug screening test and, if necessary, a drug
confirmatory test as mandated under Republic Act No. 9165, to determine the presence and/or
concentration of alcohol, dangerous drugs and/or similar substances in the bloodstream or body.
Section 8. Refusal to Subject Oneself to Mandatory Tests. A driver of a motor vehicle who refuses to
undergo the mandatory field sobriety and drug tests under Sections 6, 7 and 15 of this Act shall be

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penalized by the confiscation and automatic revocation of his or her drivers license, in addition to other
penalties provided herein and/or other pertinent laws.
Section 9. Acquisition of Equipment. Within four (4) months from the effectivity of this Act, the Land
Transportation Office (LTO) and the Philippine National Police (PNP) shall acquire sufficient breath
analyzers and drug-testing kits to be utilized by law enforcement officers and deputized local traffic
enforcement officers nationwide giving priority to areas with high reported occurrences of accidents. For
purposes of acquiring these equipment and for the training seminars indicated in Section 10 hereof, the
LTO shall utilize the Special Road Safety Fund allotted for this purpose as provided under Section 7 of
Republic Act No. 8794, entitled: "An Act Imposing a Motor Vehicle Users Charge on Owners of All Types
of Motor Vehicles and for Other Purposes". Additional yearly appropriations for the purchase of breath
analyzers and drug-testing kits shall be provided annually under the General Appropriations Act.
Section 10. Deputation. The LTO may deputize traffic enforcement officers of the PNP, the
Metropolitan Manila Development Authority (MMDA) and cities and municipalities in order to enforce the
provisions of this Act.
Section 11. Law Enforcement Officer Education. The LTO and the PNP shall conduct training seminars
for their law enforcers and deputies with regard to the proper conduct of field sobriety tests and breath
analyzer tests every year. Within four (4) months from the effectivity of this Act, the LTO shall publish
the guidelines and procedures for the proper conduct of field sobriety tests, which guidelines shall be
made available to the public and made available for download through the official LTO website.
Section 12. Penalties. A driver found to have been driving a motor vehicle while under the influence
of alcohol, dangerous drugs and/or other similar substances, as provided for under Section 5 of this Act,
shall be penalized as follows:
(a) If the violation of Section 5 did not result in physical injuries or homicide, the penalty of three
(3) months imprisonment, and a fine ranging from Twenty thousand pesos (Php20,000.00) to
Eighty thousand pesos (Php80,000.00) shall be imposed;
(b) If the violation of Section 5 resulted in physical injuries, the penalty provided in Article 263 of
the Revised Penal Code or the penalty provided in the next preceding subparagraph, whichever
is higher, and a fine ranging from One hundred thousand pesos (Php100,000.00) to Two hundred
thousand pesos (Php200,000.00) shall be imposed;
(c) If the violation of Section 5 resulted in homicide, the penalty provided in Article 249 of the
Revised Penal Code and a fine ranging from Three hundred thousand pesos (Php300,000.00) to
Five hundred thousand pesos (Php500,000.00) shall be imposed; and
(d) The nonprofessional drivers license of any person found to have violated Section 5 of this Act
shall also be confiscated and suspended for a period of twelve (12) months for the first
conviction and perpetually revoked for the second conviction. The professional drivers license of
any person found to have violated Section 5 of this Act shall also be confiscated and perpetually
revoked for the first conviction. The perpetual revocation of a drivers license shall disqualify the
person from being granted any kind of drivers license thereafter.
The prosecution for any violation of this Act shall be without prejudice to criminal prosecution for
violation of the Revised Penal Code, Republic Act No. 9165 and other special laws and existing local
ordinances, whenever applicable.
Section 13. Direct Liability of Operator and/or Owner of the Offending Vehicle. The owner and/or
operator of the vehicle driven by the offender shall be directly and principally held liable together with
the offender for the fine and the award against the offender for civil damages unless he or she is able to
convincingly prove that he or she has exercised extraordinary diligence in the selection and supervision
of his or her drivers in general and the offending driver in particular.
This section shall principally apply to the owners and/or operators of public utility vehicles and
commercial vehicles such as delivery vans, cargo trucks, container trucks, school and company buses,
hotel transports, cars or vans for rent, taxi cabs, and the like.
Section 14. Nationwide Information Campaign. Within one (1) month from the promulgation of the
implementing rules and regulations as provided under Section 17 hereof, the Philippine Information
Agency (PIA), in coordination with the LTO, the local government units (LGUs) and other concerned
agencies, shall conduct information, education and communication (IEC) campaign for the attainment of
the objectives of this Act.
Section 15. Nationwide Random Terminal Inspection and Quick Random Drug Tests. The LTO shall
conduct random terminal inspections and quick random drug tests of public utility drivers. The cost of
such tests shall be defrayed by the LTO.
Section 16. Review of Penalties. The LTO shall, after five (5) years from the effectivity of this Act and
every five (5) years thereafter, review the applicability and enforcement of all foregoing pecuniary

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penalties and shall initiate amendment and/or upgrade the same as may be necessary, subject to the
approval of the Secretary of the DOTC.1wphi1
Section 17. Implementing Rules and Regulations. The DOTC, the DOH and the NAPOLCOM shall,
within three (3) months from the effectivity of this Act, jointly promulgate the necessary implementing
rules and regulations to carry out the provisions of this Act.
Section 18. Separability Clause. If, for any reason, any part or provision of this Act is declared invalid,
such declaration shall not affect the other provisions of this Act.
Section 19. Repealing Clause. Subparagraph (f), Section 56, Article 1 of Republic Act No. 4136,
otherwise known as the "Land Transportation and Traffic Code", as amended; subparagraph (f), Section
5 of Republic Act No. 7924, otherwise known as "An Act Creating the Metropolitan Manila Development
Authority, Defining its Powers and Functions, Providing Funds Therefor and for Other Purposes;"
subparagraph (a), Section 36 of Republic Act No. 9165; and all other laws, orders, issuances, circulars,
rules and regulations or parts thereof which are inconsistent with any provision of this Act are hereby
repealed or modified accordingly.
Section 20. Effectivity. This Act shall take effect after fifteen (15) days from its publication in
the Official Gazetteor in two (2) national newspapers of general circulation.
Approved: MAY 27 2013
REPUBLIC ACT No. 8049
AN ACT REGULATING HAZING AND OTHER FORMS OF INITIATION RITES IN FRATERNITIES,
SORORITIES, AND OTHER ORGANIZATIONS AND PROVIDING PENALTIES THEREFOR
Section 1. Hazing, as used in this Act, is an initiation rite or practice as a prerequisite for admission
into membership in a fraternity, sorority or organization by placing the recruit, neophyte or applicant in
some embarrassing or humiliating situations such as forcing him to do menial, silly, foolish and other
similar tasks or activities or otherwise subjecting him to physical or psychological suffering or injury.
The term "organization" shall include any club or the Armed Forces of the Philippines, Philippine National
Police, Philippine Military Academy, or officer and cadet corp of the Citizen's Military Training and
Citizen's Army Training. The physical, mental and psychological testing and training procedure and
practices to determine and enhance the physical, mental and psychological fitness of prospective
regular members of the Armed Forces of the Philippines and the Philippine National Police as approved
ny the Secretary of National Defense and the National Police Commission duly recommended by the
Chief of Staff, Armed Forces of the Philippines and the Director General of the Philippine National Police
shall not be considered as hazing for the purposes of this Act.
Section 2. No hazing or initiation rites in any form or manner by a fraternity, sorority or organization
shall be allowed without prior written notice to the school authorities or head of organization seven (7)
days before the conduct of such initiation. The written notice shall indicate the period of the initiation
activities which shall not exceed three (3) days, shall include the names of those to be subjected to
such activities, and shall further contain an undertaking that no physical violence be employed by
anybody during such initiation rites.
Section 3. The head of the school or organization or their representatives must assign at least two (2)
representatives of the school or organization, as the case may be, to be present during the initiation. It
is the duty of such representative to see to it that no physical harm of any kind shall be inflicted upon a
recruit, neophyte or applicant.
Section 4. If the person subjected to hazing or other forms of initiation rites suffers any physical injury
or dies as a result thereof, the officers and members of the fraternity, sorority or organization who
actually participated in the infliction of physical harm shall be liable as principals. The person or persons
who participated in the hazing shall suffer:
1. The penalty of reclusion perpetua (life imprisonment) if death, rape, sodomy or mutilation
results there from.
2. The penalty of reclusion temporal in its maximum period (17 years, 4 months and 1 day to 20
years) if in consequence of the hazing the victim shall become insane, imbecile, impotent or
blind.
3. The penalty of reclusion temporal in its medium period (14 years, 8 months and one day to 17
years and 4 months) if in consequence of the hazing the victim shall have lost the use of speech
or the power to hear or to smell, or shall have lost an eye, a hand, a foot, an arm or a leg or shall
have lost the use of any such member shall have become incapacitated for the activity or work
in which he was habitually engaged.

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4. The penalty of reclusion temporal in its minimum period (12 years and one day to 14 years
and 8 months) if in consequence of the hazing the victim shall become deformed or shall have
lost any other part of his body, or shall have lost the use thereof, or shall have been ill or
incapacitated for the performance on the activity or work in which he was habitually engaged for
a period of more than ninety (90) days.
5. The penalty of prison mayor in its maximum period (10 years and one day to 12 years) if in
consequence of the hazing the victim shall have been ill or incapacitated for the performance on
the activity or work in which he was habitually engaged for a period of more than thirty (30)
days.
6. The penalty of prison mayor in its medium period (8 years and one day to 10 years) if in
consequence of the hazing the victim shall have been ill or incapacitated for the performance on
the activity or work in which he was habitually engaged for a period of ten (10) days or more, or
that the injury sustained shall require medical assistance for the same period.
7. The penalty of prison mayor in its minimum period (6 years and one day to 8 years) if in
consequence of the hazing the victim shall have been ill or incapacitated for the performance on
the activity or work in which he was habitually engaged from one (1) to nine (9) days, or that the
injury sustained shall require medical assistance for the same period.
8. The penalty of prison correccional in its maximum period (4 years, 2 months and one day to 6
years) if in consequence of the hazing the victim sustained physical injuries which do not prevent
him from engaging in his habitual activity or work nor require medical attendance.
The responsible officials of the school or of the police, military or citizen's army training organization,
may impose the appropriate administrative sanctions on the person or the persons charged under this
provision even before their conviction. The maximum penalty herein provided shall be imposed in any of
the following instances:
(a) when the recruitment is accompanied by force, violence, threat, intimidation or deceit on the
person of the recruit who refuses to join;
(b) when the recruit, neophyte or applicant initially consents to join but upon learning that
hazing will be committed on his person, is prevented from quitting;
(c) when the recruit, neophyte or applicant having undergone hazing is prevented from reporting
the unlawful act to his parents or guardians, to the proper school authorities, or to the police
authorities, through force, violence, threat or intimidation;
(d) when the hazing is committed outside of the school or institution; or
(e) when the victim is below twelve (12) years of age at the time of the hazing.
The owner of the place where hazing is conducted shall be liable as an accomplice, when he has actual
knowledge of the hazing conducted therein but failed to take any action to prevent the same from
occurring. If the hazing is held in the home of one of the officers or members of the fraternity, group, or
organization, the parents shall be held liable as principals when they have actual knowledge of the
hazing conducted therein but failed to take any action to prevent the same from occurring.
The school authorities including faculty members who consent to the hazing or who have actual
knowledge thereof, but failed to take any action to prevent the same from occurring shall be punished
as accomplices for the acts of hazing committed by the perpetrators.
The officers, former officers, or alumni of the organization, group, fraternity or sorority who actually
planned the hazing although not present when the acts constituting the hazing were committed shall be
liable as principals. A fraternity or sorority's adviser who is present when the acts constituting the
hazing were committed and failed to take action to prevent the same from occurring shall be liable as
principal.
The presence of any person during the hazing is prima facie evidence of participation therein as
principal unless he prevented the commission of the acts punishable herein.
Any person charged under this provision shall not be entitled to the mitigating circumstance that there
was no intention to commit so grave a wrong.
This section shall apply to the president, manager, director or other responsible officer of a corporation
engaged in hazing as a requirement for employment in the manner provided herein.
Section 5. If any provision or part of this Act is declared invalid or unconstitutional, the other parts or
provisions thereof shall remain valid and effective.

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Section 6. All laws, orders, rules or regulations which are inconsistent with or contrary to the provisions
of this Act are hereby amended or repealed accordingly.
Section 7. This Act shall take effect fifteen (15) calendar days after its publication in at least two (2)
national newspapers of general circulation.

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