S E V E N T E E N T H C O N G R E S S O F T H E R E P U B L IC }

O F T H E P H IL IP P IN E S }
S econd R eg u lar S ession }
'. . ' f r oi { ;r

SENATE 17 NOV 16 P3 29
S enate B ill N o. 1 6 1 3

RLLLt. L./ i'

In tro d u ce d b y S E N A T O R P A N F I L O M . L A C S O
ONN W

AN ACT
F U R T H E R S T R E N G T H E N IN G T H E O F F IC E O F T H E S O L IC IT O R G E N E R A L B Y
IN C R E A S IN G IT S P O W E R S A N D F U N C T IO N S , A N D R E D E F I N I N G , E X P A N D IN G ,
A N D R A T IO N A L I Z I N G IT S O R G A N I Z A T I O N , R E P E A L I N G F O R T H E P U R P O S E
R E P U B L IC A C T N O . 9 4 1 7 , R E P U B L I C A C T N O . 23 2 7 , A N D E X E C U T IV E O R D E R N O S .
1 A N D 2, S. 1986, A P P R O P R I A T I N G F U N D S T H E R E F O R A N D F O R O T H E R P U R P O S E S

EX PLA NA TO RY NOTE

T h e O ffice o f th e S o lic ito r G en eral (O S G ) is an in d e p en d en t an d au to n o m o u s o ffice

attach e d to th e D e p a rtm e n t o f Ju stice th a t is m a n d ated to re p re se n t th e G o v ern m en t o f the
P h ilip p in es, its ag en c ies an d in stru m en talities, an d its o fficials and ag en ts in any litigation,
p ro cee d in g , in v e stig atio n o r m a tte r req u irin g th e serv ices o f a law y er. It is h ead e d by a S o licito r
G eneral w h o is th e p rin c ip a l law o ffic e r an d leg al d efen d e r o f th e G o v ern m en t. 1

In 1959, R ep u b lic A c t N o . 2 3 2 7 d eclared th e p o sitio n o f th e G o v e rn m e n t C o rp o rate C o u n sel

as d istin ct and sep arate fro m th a t o f th e S o lic ito r G eneral. T h e O ffice o f th e G o v ern m en t C o rp o rate
C ounsel (O G C C ) is m a n d a te d to act as th e p rin cip al law o ffice o f all g o v em m en t-o w n ed -an d -
co n tro lled co rp o ratio n s, th e ir su b sid iaries, o th e r co rp o rate o ffsp rin g , an d g o v ern m en t acquired
asset c o rp o ratio n s.2

In 1986, E x ec u tiv e O rd e r N o s. 1 an d 2 w ere issu ed crea tin g th e P resid en tial C o m m issio n

on G ood G o v ern m en t (P C G G ) fo r th e p u rp o se of, am o n g o th ers, reco v e rin g all the ill-gotten
w ealth acc u m u la ted by fo rm er P re sid e n t F erd in an d M arco s; in v e stig atin g cases o f g raft and
co rru p tio n as th e P re sid e n t m a y assig n fro m tim e to tim e; and, a d o p tin g safeg u ard s to en su re th a t
g raft and co rru p tio n p ractices sh all n o t b e rep ea ted in the new g o v ern m e n t.

H ow ever, d esp ite th e d eclaratio n th a t th e O G C C is sep arate an d d istin ct fro m the O SG ,

th e re are n u m ero u s in stan ces w h e re in G O C C s still re fe r cases to th e O S G w h ere th e serv ices o f a
la w y er are requ ired . T h e sam e is tru e w ith th e P C G G w h erein th e O S G h a s b een rep resen tin g th e
R ep u b lic o f the P h ilip p in e s in cases in v o lv in g th e reco v e ry an d p re se rv a tio n o f ill-g o tten w ealth .

1 Sec. 34, Chapter 12, Title III, Executive Order No. 292
2 Sec. 10, Chapter 3, Title III, Executive Order No. 292
eco n o m y th e re f re aChieVe effic ie- ^
co n so lid ate the legal s l i c e s in thenG O T e ^ r n e n th etoUa,sin g le thCre iS ^ ed

0 (J ^ S^ d 1th e T c G G Ca n T c o n s ^ i d a d n g t h d r fu n ctio n T w U h th at^ o ^t^^

T o ach iev e th is en d , th e B ill p ro p o se s th e fo llo w in g salien t ch an g es:

1. W hile m a in tain in g th e in d e p en d en ce an d au to n o m y o f the o ffice th e O S G s h .ll h . a

an attach ed ag e n c y o f th e O ffice o f th e P resid en t (O P ) fo r p 3,16

2 ' d w l f o Z el l T s r n r o 7 m L * t e ^ ^ ^ ^ ^ in creased to a t least fifty (50) legal

as m ay b e n ece ssary fo r th e O S G to e ffe c tiv c ly T a rry o r r f u n a l n s f 0thCr PerSOnneI

3. U pon th e e n a c tm e n t o f this b ill, th e ex istin g O G C C an d th e P r r r .n n a c ,

and its fu n ctio n s sh all be tra n sfe tre d to the O S G be ab " Shed

4. In ad d itio n to th e p o w e rs an d fu n ctio n s cu rren tly p e rfo rm e d by th e O S r n a ,n

existin g law , th e O S G shaft h h e w ise p erfo rm th e f r i l l i n g p i e r s an d U n s he

a' d isr s - C laim s' an d c o n tro v e rs*es so lely

o f th e N atio n al o l e m l l t i n X d S a8enCieS-

c. P erfo rm th e fu n ctio n s o f th e O G C C ;

d. Assume the functions o f the P C G G ;

e' I t T a r g e l S i : ' h e ServiCCS f c0 - ' ^

th e fid u ciary n atu re o f th e rela tio n sh ip b etw een th e O S G and s u l 0

8- n i S l ; m r e h 'iPnpPS r i c hee,P laW S' UdemS PrePare a" d

5. C reatio n o f a S pecial T a sk fo rce c o m p o sed o f a t le a st five (5) legal d iv isio n s o f th e O S G

W hose p rim a ry re sp o n sib ility is th e p erfo rm a n ce o f the f u n L L s 8p ro v id :d u n d er S e ^ l
 5 (m ) o f th is B ill an d w h ich shall b e resp o n sib le fo r th e p re se rv a tio n and m ain ten an ce
o f ill-g o tten w ealth , p e n d in g ju d ic ia l d eterm in a tio n o f th e ir o w n ersh ip . T h e Special T ask
F o rce sh all lik ew ise p e rfo rm research and d e v elo p m en t fu n ctio n s;

6. T h e S o lic ito r G en eral shall h av e th e ran k o f a C ab in et S ecretary , b u t th e q u alificatio n s

for ap p o in tm en t, salaries, allo w an ces, p riv ileg es, re tire m e n t an d o th e r b en efits, as w ell
as th e in h ib itio n s an d d isq u alifica tio n s sh all b e th e sam e as th a t o f an A sso ciate Ju stice
o f th e S u p rem e C o u rt. T h e A ssistan t S o licito r G en eral shall h av e th e sam e q u alificatio n s
for ap p o in tm en t, salary g rad e and salaries, allo w an ces, p riv ileg es, retirem e n t and other
benefits, as w ell as th e in h ib itio n s and d isq u alifica tio n s, as th a t o f an A sso ciate Ju stice
o f th e C o u rt o f A p p eals. T h e q u alificatio n s fo r ap p o in tm en t, ran k , categ o ry , salaries,
allo w an ces, re tire m e n t an d o th e r b en efits o f S o licito rs sh all b e th e sam e as Ju dges;

7. T h e S o lic ito r G en eral sh all b e en titled to th e sam e retirem e n t b en efits and p riv ileg es as
an A sso ciate Ju stic e o f th e S u p rem e C o u rt u p o n reac h in g th e ag e o f sixty (60), p ro v id ed
th a t h e /sh e h as serv ed in su ch cap acity c o n tin u o u sly fo r at least tw o (2) co n secu tiv e
years. T h e A ssista n t S o licito rs G en eral, S en io r S tate S o licito rs, S tate S olicitors II, and
State S o licito rs I sh all be en titled to th e sam e retirem e n t b en efits and p riv ileg es as th e ir
co u n terp arts in th e Ju d ic ia ry u p o n reac h in g th e ag e o f six ty (60) p ro v id e d th a t th ey h av e
serv ed in su ch c ap a cities c o n tin u o u sly fo r at least five (5) co n secu tiv e years. T hey m ay
lik ew ise o p t to serv e up to th e age o f sev en ty (70) years.

T h e B ill lik ew ise p ro v id es fo r th e au to m atic ap p licatio n to th e S o licito r G eneral,

A ssistan t S o licito rs G en eral, an d S tate S o licito rs o f any in c re ase in th e salaries,
allo w an ces o r re tire m e n t b en efits o r any u p g rad in g o f th e g rad es o r levels th e re o f o f any
or all o f th e Ju stic e s o r Ju d g es referred to in th is B ill to w h o m said em o lu m en ts are
assim ilated ;

8. E m p lo y ees o f th e O S G sh all lik ew ise enjoy th e fo llo w in g ad d itio n al ben efits;

a. H azard p ay

b. O th er b e n e fits as en jo y ed by o th er g o v e rn m e n t o ffices o r as m ay b e d eterm in ed

by th e S o lic ito r G en eral in th e ex ig en cies o f th e serv ice and in acco rd an ce w ith
law

c. P a y m e n t b y o r re im b u rse m e n t from th e O S G o f lifetim e m em b ersh ip fees to the

IB P o f th e ir law y ers, p ro v id ed th a t th e y sh all m a in tain th e ir serv ice in the O S G
fo r at least five (5) y ears

d. S u rv iv o rsh ip b en efits to th e su rv iv in g leg itim ate sp o u se an d d e p en d e n t children,

o r in th e ir ab sen ce, th e su rv iv in g p aren ts o f a S o lic ito r G en eral, A ssistan t
S o lic ito r G en eral, S en io r S tate S olicitor, S tate S o lic ito r or an A sso ciate S olicitor
o f th e O S G i f said o fficial had retired o r w as in th e serv ice at th e tim e o f death
 1
e. G ran t o f sp ecial allo w an ces in am o u n ts to be d eterm in e d b y th e S o lic ito r G eneral,
p ro v id ed th a t said sp ecial allo w an ce sh all n o t ex ce ed o n e h u n d red p erce n t (1 0 0 % )
o f th e b asic salary o f so licito rs. S uch sp ecia l allo w an ces sh all be ex em p t from
in co m e tax

9. O fficials an d em p lo y ees o f th e O G C C and th e P C G G sh all be ab so rb ed by the O S G

p ro v id ed th a t said o fficials and em p lo y ees p o sse ss th e n ece ssary elig ib ility and
q u alificatio n s fo r th e p o sitio n s as p re sc rib e d in th is B ill. It also p ro v id es for the
retirem e n t an d sep a ra tio n fro m serv ice b en efits o f th o se o fficials and em p lo yees w h o
are at least fifty (5 0 ) y ears o f age and h av e ren d ered at least fifteen (15) years o f
g o v ern m en t serv ice;

10. C reatio n o f th e O ffic e o f th e L eg al S erv ices (O L S ) w ith in th e O S G ; and.

11. In stitu tio n a liza tio n o f C ap acity D ev elo p m en t to d ev elo p th e cap ab ility o f th e O SG asan
organ izatio n .

B y ex p an d in g th e p o w e rs an d fu n ctio n s o f th e O S G , u p g rad in g th e b en efits g ran ted to its

o fficials and em p lo y ees, an d in teg ratin g th e fu n ctio n s o f o th e r ag en cies th a t o v erlap w ith its
functions, the O S G w o u ld b e b e tte r ab le to ach iev e its v isio n to c h am p io n th e ru le o f law in the
p u rsu it o f social ju s tic e as th e P e o p le s T rib u n e and as co u n sel o f th e R ep u b lic o f th e P h ilip p in es.

It is fo r th is p u rp o se th a t th e ap p ro v al o f th is b ill is earn e stly so u g h t.

V Scinator
 SEVENTEENTH CONGRESS OF THE REPUBLIC
OF THE PHILIPPINES
Second Regular Session iU~ -
. of Ml T s t.- H'

SENATE
Senate Bill No. 1G13 *17 NOV 16 P3 2 9

Introduced by S E N A T O R P A N F IL O M . L A G SO N

AN A C T
F U R T H E R S T R E N G T H E N IN G T H E O F F IC E O F T H E S O L IC IT O R G E N E R A L BY
IN C R E A SIN G IT S P O W E R S AND FU N C T IO N S, AND R E D E F IN IN G , EX PA N D IN G
AND R A T IO N A L IZ IN G IT S O R G A N IZ A T IO N , R E P E A L IN G F O R T H E PURPOSE*
R E P U B L IC A C T NO. 9417, R E P U B L IC A C T NO. 2327, AND E X E C U T IV E O R D E R NOS.
1 AND 2, S. 1986, A P P R O P R IA T IN G FUN D S TH EIH LFO R AND F O R O T H E R
P U R PO SE S

Be it enacted by the Senate and House o f Representatives o f Philippines in Congress assembled:

1 S E C T IO N 1. Short Title. - This Act shall be known as the ltOSG Charter."

3 S E C T IO N 2. D eclaration o f Policy. It is the declared policy o f the State to strengthen

4 the Office o f the Solicitor General (OSG) in order to fulfill its role o f upholding the best interest

o f the government as the Tribune o f the People, as well as to perform its mandate as the principal

law office o f the G overnm ent o f the Republic o f the Philippines representing the Government, its

departments, bureaus, agencies, and instrum entalities, and its officials and agents in their official

8 capacity, in any litigation, proceeding, investigation, or matter requiring the services o f lawyers.

a^so t^ e policy o f the State to ensure efficiency and econom y in the operations o f

11 government, to eliminate the overlapping o f functions, to consolidate the legal services in the

12 government into one office to effectively address the expanding needs o f government-owned and

13 -controlled corporations (GOCCs) towards the im provement o f fiscal m anagem ent and good

14 corporate governance, and to concentrate and enhance government efforts for the full and effective

15 recovery o f ill-gotten w ealth and properties, including the efficient investigation and prosecution

16 o f cases relative thereto. Towards this end, the Office o f the Governm ent Corporate Counsel
 (OGCC) and the Presidential Comm ission on Good Government (PCGG) are hereby abolished

and their respective powers and functions are transferred to the OSG.

4 With the transfer o f the powers and functions o f the OGCC and the PCGG to the OSG, and

5 to ensure the efficient and effective legal representation o f the Government, its departments,

6 bureaus, agencies, and instrum entalities, GOCCs, and its officials and agents in their official

7 capacity, the members o f the legal and administrative staff o f the OSG shall be increased and their

8 positions upgraded to adequately meet the R epublics burgeoning need for legal services. Tlie

9 skills o f OSG lawyers shall be further improved, and the benefits o f all OSG employees

10 augmented. The professional growth o f these employees shall be encouraged. ,

11

12 S E C T IO N 3. Definition o f Terms. - As used in this Act: |

13 1
(a) Capacity developm ent refers to the process whereby the OSG, as an organization,
14
develops its capability over time to achieve development goals while enhancing its ability
15
to achieve measurable and sustainable results, through improvement o f knowledge, skills,
16 and systems. \

17
(b) GOCC refers to government-owned and -controlled corporations, their
18
subsidiaries, other corporate offspring, including government-acquired asset corporations,

19
government corporate entities and government instrum entalities with corporate powers,
20
government financial institutions, and other government corporate entities, agencies and
21
I offices.

22
(c) Ill-gotten wealth" refers to any asset, property, business enterprise or material
23
possession o f the persons referred to in Executive Orders Nos. 1 and 2, s. 1986, acquired
24
by them directly, or indirectly through dummies, nominees, agents, subordinates, and/or
25
business associates by any o f the following means or sim ilar schemes: '
I

I
26 I
I

27
(1) Through misappropriation, conversion, misuse, or malversation o f public
I
28 funds or raids on the public treasury; '
 1 (2) Tlirough the receipt, directly or indirectly, o f any commission, gift, share,
2
percentage, kickbacks, or any other form o f pecuniary benefit from any person
3
and/or entity in connection with any government contract or project or by
4
reason o f the office or position o f the official concerned;

5 (3) By the illegal or fraudulent conveyance or disposition o f assets belonging to

6
the governm ent or any o f its subdivisions, agencies or instrumentalities, or
7
government-owned or controlled corporations;

8 (4) By obtaining, receiving, or accepting directly or indirectly any shares o f stock,

9
equity, or any other fonn o f interest or participation in any business enterprise
10 or undertaking;

11 (5) Through the establishment o f agricultural, industrial, or commercial

12
m onopolies or other combination and/or by the issuance, promulgation, and/or
13
im plem entation o f decrees and orders intended to benefit particular persons or
14 special interests; and

15 (6) By taking undue advantage o f official position, authority, relationship, or

16
influence for personal gain or benefit.

17

18 S E C T IO N 4. O rganizational Structure. ~ The Office o f the Solicitor General shall be an

19 indepeiideni and autonom ous office attached to the Office o f the President for budgetary purposes.
20

21 The OSO shall be headed by the Solicitor General, who is the principal law officer and

22 legal defender o f the Government. He shall have the authority and responsibility for the exercise

23 o f the O SG 's mandate and for the discharge o f its duties and functions, and shall have supervision

24 and control over the OSG and its constituent units.

25 The Solicitor General shall be assisted by a Legal S taff composed o f Assistant Solicitors

26 General and such num ber o f Solicitors ;

as may be necessary for the proper and efficient operation
27 o fth cO S G .

28
 There shall be at least fifty (50) legal divisions in the OSG. Each division, headed by
an

Assistant Solicitor General, shall consist o f at least ten (10) lawyers and such other personnel
as

may be necessary for the OSG to effectively carry out its functions.

The administrative structure o f the OSG shall be organized into the Financial M anagement

Service, Docket M anagem ent Service, Human Resources M anagem ent and Administrative

Service, and Budget and Planning Service, which shall be composed o f the necessary divisions

8 and sections. Each Sei-vice shall be headed by a Director, who shall be appointed by the President.

10 There shall be an Office o f Legal Services (OLS) within the OSG to be headed by a C hief

11 Legal Officer whose position is primarily confidential, who shall be a lawyer, appointed by the

12 Solicitor General and serve at the latters pleasure. The qualifications, salary grade, and benefits

13 o f the C hief Legal O fficer and the OLS staff shall be determined by the Solicitor General. The

14 C hief Legal Officer shall be assisted by such other personnel as may be necessary to effectively

15 carry out the functions o f the OLS.

16

17 A special task force within the OSG shall be created to be composed o f least five (5) legal

18 divisions, which shall be prim arily responsible for perform ing the powers and functions under

19 Section 5 (m) o f this Act. Pending judicial determination o f the ownership o f ill-gotten assets, the

20 task force shall be responsible for preserving and maintaining such assets. For this purpose, the

21 members o f the task force may be assigned or designated to sit in the Board o f Directors o f

22 concerned entities by the Solicitor General. The task force shall also perform research and

23 development functions.

24

25
The administrative support o f the task force shall be provided by special units within the

26
Docket M anagement Section o f the OSG, which shall have the function o f maintaining and
27
monitoring the records o f oases as well as the safe-keeping o f evidence and documents; and within

28
the Property M anagem ent Section o f the OSG in the preservation and maintenance o f sequestered
 1 assets and o f other assets that subject o f pending litigation in the ill-gotten wealth complaints filed

2 by the PCGG with tlie Sandiganbayan and related cases. '

4 S E C T IO N 5. Powers an d Functions. - The OSG shall represent the Government o f the

i
5 Philippines, its agencies and instrumentalities, including GOCCs, and its cjfficials and agents

6 acting in their official capacity, in any litigation, proceeding, investigation, or matter requiring the

7 services ol a lawyer. As the principal law office o f the Government, the OSG shall have the

8 following specific powers and functions:

9 (a) Represent the Government and the People o f the Philippines in the Supreme Court
i
10 and the Court o f Appeals in all criminal proceedings; represent the Government and its

11 officers in the Supreme Court, the Court o f Appeals, and all other courts or tribunals in all
i
12 civil actions and special proceedings in which the Government has bU n impleaded as a
i
13 party, or any official o f the Government sued in the lawful performance o f duty;

14 (b) Investigate, initiate court action, or in any manner proceed against any person,
I
15 corporation, or firm for the enforcement o f any contract, bond, guarantee, mortgage,

16 pledge, or other collateral executed in favor o f the Government; !

j
17 (c) A ppear in any court in any action involving the validity o f any treaty, law, executive

18 order or proclamation, or rule or regulation when in his judgm ent his intervention is
i
19 necessary or when requested by the Court;

20 (d) A ppear in all proceedings involving the acquisition or loss o f Philippine citizenship;

21 (e) Represent the Government in all land registration and related proceedings, and

22 institute actions for the reversion to the Government o f lands o f the public domain and

23 improvements thereon as well as lands held in violation o f the Constitution;

i
24 (f) Conciliate, mediate, settle, or adjudicate all disputes, claims[ and controversies

25 solely between or am ong the departments, bureaus, offices, agencies, and instrumentalities

26 o f the National Government, including GOCCs; j

I
27 (g) Render opinion and advice on matters referred by the departments, bureaus, offices.

28 agencies, and instrum entalities o f the National Government, including GOCCs;

 (h) Prepare, upon request o f the President or other proper officer o f the National
J'
Government, rules and guidelines for government entities governing the preparation o f

contracts, m aking o f investments, undertaking o f transactions, and drafting o f forms or

other documents needed for official use, for the purpose o f facilitating their enforcement

and ensuring that they are entered into or prepared conformably to law and for the best

6 interests o f the public;

7 (i) Deputize, w henever in the opinion o f the Solicitor General the public interest

8 requires, any provincial or city prosecutor to assist in the performance o f any function or

9 discharge o f any duty incumbent upon the Solicitor g en era l, within the jurisdiction o f the
i
10 aforesaid provincial or city prosecutor. When so deputized, the prosecutor shall be under

11 the control and supervision o f the Solicitor General with regard to the conduct o f the

12 proceedings assigned to the prosecutor, and may be required to render reports or furnish

13 infomiation regarding the assignment;

14
CD The provision o f any law to the contrary notwithstanding, act as the legal counsel

15 and serve as the principal law office o f all GOCCs. All GOCCs shall refer to the OSG all

16 contracts for review before their execution and all cases for representation before regular

17 courts, quasi-Judicial bodies, administrative agencies, and arbitral tribunals: Provided, That

18 the Solicitor General may authorize the legal department o f the concerned GOCC to appear

19 as collaborating counsel for purposes o f expediency or when the case demands urgency.

20 As legal counsel o f all GOCCs, the OSG shall also perform the following duties

21 and functions:

22 (1) Exercise control and supervision over the legal departments o f all GOCCs

23 through designated A ssistant Solicitors General and Solicitors;

24 (2) Exercise visitorial powers over GOCCs;

25
(3) Replace the OGCC as ex-ofjicio member in the Property Insurance Fund

26 and enforce the Property Insurance Law pursuant to Republic Act No. 656, as amended by

27 Piesidential Decree 245, in domestic or international transactions;

28
(4) Conduct periodic performance audits o f the in-house lawyers or legal
29 departments o f the GOCCs and to recommend appropriate actions to GOCCs;

6
 (5) Devise a system o f record-keeping, such as a centralized database for legal

opinions, to ensure that the integrity o f vital documents remain intact; and

(6) Require the in-house lawyers or legal departments o f GOCCs to submit

4 periodic reports o f work performed and accomplished and to supervise and control the

5 necessary legal action; and,

6 (7) Perfom i other functions as may be provided by law, and such additional

7 tasks as may be required by the GOCCs, including corporate secretary functions, with the

8 conformity o f the Solicitor General.

9 (k) Deputize legal officers o f government departments, bureaus, agencies, offices, and

10 GOCCs to assist the Solicitor General and appear or represent the Government in cases

11 involving their respective offices, brought before the courts, and e.xercise supervision and

12 control over said legal officers with respect to such cases;

13 (l) Call on any department, bureau, office, agency, or instrumentality o f the

14 Government, including any GOCC, for such service, assistance, and cooperation as may

15 be necessary in fulfilling its functions and responsibilities and for this purpose enlist the

16 services o f any government official or employee in the pursuit o f its tasks;

17 Departments, bureaus, agencies, offices, instrumentalities, and GOCCs to whom

18 the OSG renders legal services are authorized to disburse funds from their sundry operating

19 and other funds for the OSG. For this purpose, the Solicitor General, Assistant Solicitors

20 Geneial, Senior State Solicitors, State Solicitors, and Associate Solicitors are specifically

21 authorized to receive allowances as may be provided by the Government offices,

22 instrumentalities, and GOCCs concerned, in addition to their regular compensation.

23 (m) Exercise and perform the following powers and functions o f the PCGG which are

24 hereby transferred to the OSG:

25 (1) File and prosecute all cases investigated by the PCGG under Executive

26 Order No. 1, dated February 28, 1986, Executive Order No. 2, dated March

27
12, 1986, and Executive Order No. 432, dated May 26, 2005, as may be

28 warranted by its findings;

 1
(2) Continue handling cases relative to the recovery o f ill-gotten wealth and
9
behest loans;

(3) Grant immunity from criminal prosecution to any person who provides

information or testifies in any investigation previously conducted by the

PCGG or future cases investigated by the OSG involving ill-gotten wealth,

6
to establish the unlawful manner in which any respondent, defendant or
7
accused has acquired or accumulated the property or properties in question
8
in any case where such information or testimony is necessary to ascertain
9
or prove the latter's guilt or civil liability. The immunity thereby granted
10
shall be continued to protect the witness who repeats such testimony before
11
the Sandiganbayan when required to do so; and,

12
(4) Call upon any department, bureau, otlice, agency, instrumentality or
13
corporation o f the government, or any officer or employee thereof, for such
14
assistance as it may need in the discharge o f its functions relative to
15
recovery o f ill-gotten wealth and behest loans.

16
(n) Represent, upon the instructions o f the President, the Republic o f the Philippines in
17
international litigations, negotiations, or conferences where the legal position o f the
18 Republic must be defended or presented;

19
(0 ) Subject to the approval o f the President, engage the services o f counsel to assist in
20
the discharge o f his duties and responsibilities in cases requiring highly specialized legal
21
skills, knowledge or expertise, including but not limited to foreign arbitrations and
22
litisations. The engagement o f such counsel shall be exempt from Republic Act No. 9184,
23
otherwise known as the Government Procurement Reform A ct, due to the fiduciary
24 nature o f the relationship between the OSG and such counsel;

25
(p) Represent the Republic or the people before any court, tribunal, body, or
26
commission in any matter, action, or proceeding that, in his opinion, affects the welfare o f
27 the people as the ends o f justice may require;

2S
(q) (1) Acquire, own, hold, or lease real and personal property; (2) sell or otherwise
29
dispose o f the same; (3) enter into contracts including loan agreements and joint venture

8
 agreements; and (3) do and perform any and all acts that may be necessary or proper to

carry out the purposes o f this Act;

(r) Provide a Legal Internship Program to help law students prepare and train for and

4 experience legal practice in public service; and,

5 (s) Perform such other functions as may be provided by law.

7 S E C T IO N 6. Abolilion o f the Offtce o f the Government Corporate Counsel anti the

8 Presitlenlini Commission on Good Government. - The legal representation o f the Government,

9 its agencies, and instrum entalities, including GOCCs and officials and agents acting in their

10 official capacity, and the powers and functions o f the PCGG, shall be consolidated in the OSG.

11 For this purpose, the OOCC and the PCGG are hereby abolished, and all the powers ttnd functions

12 ol said OlHces that are not inconsistent with the

provisions ot this Act are hereby translerred to
13 the OSG.

14

15
After due settlem ent o f its liabilities, if any, all budgemry appropriations, funds, properties,
16
records, equtpment, riglits, choses in action, and other assets o f the OGCC and the PCGG
are
17 hereby transferred to the OSG.

18

19
S E C T IO N 7. Appointments. - The Solicitor General shall be appointed by the President.
20

21
The Assistant Solicitors General, Senior State Solicitors, and State Solicitors shall be
OT
appointed by the President upon the recommendation o f the Solicitor General. Associate Solicitors

23
shall be appointed by the Solicitor General. The recom mendations and appointments by the

24
Solicitor General shall be subject to the qualifications provided in Section 8 o f this Act.

25

26 The Financial M anagem ent Service, Docket Mantrgement Service, Human Rcsources

27 M anagement and Adm inistrative Service, and Budget and Planning Service shall each be headed

28 by a Director to be appointed by the Solicitor General. The Seivice Heads shall possess the

29 necessary Career Executive Service eligibility and qualifications for the position prescribed under
 1 existing civil se^^ice laws, rules, and regulations: Thai if a Service Head who does not

2 possess the necessary eligibility and qualifications is occupying the position at the time o f the

3 effectivity o f ^his Act, such person shall continue to perform the functions o f the position as otTicer-
1
4
m-charge and s|iall have a maximum o f two (2) years to comply with the eligibility and

5
qualiilcationslprescribed herein: Provided, further. That if the Service Head fails or is unable to

6 meet the eligibility and qualifications for the position after the lapse o f two (2) years from the

7 cftcctivity o f this Act, such person shall be ipso ju re removed from said position.
I
8
1
9
Administrative personnel in the OSG shall be appointed by the Solicitor General
I
10 I
!

11
S L C I IO N 8. Standards, Qualifications, Salaries and Ileneftts. - The Solicitor General

12
shall have the rank o f a Cabinet Secretary and the same qualifications for appointment, rank,

13
category, prerogatives, salary grade and salaries, allowances, em oluments, privileges, retirement

14
and other benefits, and shall be subject to the same inhibitions and disqualincations, o f an

15 Associate Justice o f the Supreme Court;

16 i
I
17
An Assislant Solicitor General shall have the same qualilicaiions for appointment, rank,

18
category, prerogatives, salary grade and salaries, allowances, emoluments, privileges, retirement

19
and other benefits, and shall be subject to the same inhibitions and disqualifications, o f an

20 Associate Justice o f the Court o f Appeals.

21

22
The qualifications for appointment, rank, category, prerogatives, salaries, allowances,
23
emolumems, privileges, retirement and all other benefits o f Solicitors shall be the same as judges,
24 specified as follows:

25 (a) [Senior State Solicitor shall have the same rank, category, prerogatives, salaries,
26
aljlovvances, emoluments, privileges, retirement and all other benefits o f a Regional
I ^
27
Trial Court Judge, and shall have the following qualifications:

28 (1) A citizen o f the Philippines;

10
 (2) At least thirty-five (35) years o f age;

(3) For at least ten (10) years, has been engaged in the practice o f law in the

Philippines or has held a public office in the Philippines requiring admission

4
to the practice ot law as an indispensable requisite; and,

5
(4) Proven competence, integrity, probity, and independence.

6 (b) A State Solicitor II shall have the same rank, category, prerogatives, salaries,
7
allowances, em oluments, privileges, retirement and all other benefits o f a
8
M etropolitan Trial Court .Fudge, while a State Solicitor I, that o f a Municipal Trial
9
Court in Cities Judge, and shall have the following qualifications:

10 (1) A citizen o f the Philippines;

11
(2) At least thirty-five (30) years o f age;

12
(3) For at least five (5) years, has been engaged in the practice o f law in the
13
Philippines or has held a public office in the Philippines requiring admission
14
to the practice o f law as an indispensable requisite; and,

15
(4) Proven competence, integrity, probity, and independence.

16
(c) An Associate Solicitor III shall have the following qualifications:

17 (1) A citizen o f the Philippines;

18 (2) A m em ber o f the Philippine bar;

19
(3) W ith Three (3) years o f relevant experience; and,

20 (4) (4) With Sixteen (16) hours o f relevant training.

21
(d) An Associate Solicitor II shall have the following qualifications:

22 (1) A citizen o f the Philippines;

(2) A m em ber o f the Philippine bar;

24
(3) W ith One (1) years o f relevant experience; and,

25
(4) W ith Four (4) hours o f relevant training.

26
(e) An Associate Solicitor I shall have the following qualifications:

27 (1) A citizen o f the Philippines;

II
 (2) A member o f the Philippine bar; and,

(3) Such other qualifications, prerogatives and responsibilities as may be

required or determined by the Solicitor General.

5 The Solicitor General shall be entitled to the same retirement benefits and privileges as an

6 Associate Justice o f the Supreme Court upon reaching the,age ofsi.xty (60) years; Provided, That,

7 he/she shall have served in such capacity continuously for at least two (2) consecutive years.

9 Assistant Solicitors General, Senior State Solicitors, State Solicitors II, and State Solicitors

10 I shall be entitled to the same retirement benefits and privileges as their counterparts in the

11 Judiciary upon reaching the age o f sixty (60) years, provided that they have served in such

12 capacities continuously for at least five (5) consecutive years. An Assistant Solicitor General,

13 Senior State Solicitor, State Solicitor II, and State Solicitor I may opt to serve up to the age o f

14 seventy (70) years.

15

16 Any increase after the approval o f this Act in the salaries, allowances or retirement benefits

17 or any upgrading o f the grades or levels thereof o f any or all o f the Justices or Judges referred to

18 herein to whom said em oluments are assimilated shall similarly apply to the Solicitor General,

19 Assistant Solicitors General, and State Solicitors.

20

21 S E C T IO N 9. Office o f Legal Services. - The Office o f Legal Services (OLS) shall

22 perform the following duties and functions:

23 a. Drafting o f proposed legislative measures to strengthen the OSG to enable it

24
to efficiently and effectively discharge its mandate, for submission by the

25 Solicitor General to Congress and to the President o f the Philippines;

26 b. Conduct research on legal issues that may be assigned by the Solicitor General;

27
c. Assist the Solicitor General, Assistant Solicitors General, State Solicitors,

28 Associate Solicitors, and all other employees o f the OSG who are impleaded

12
 1
in their official capacity in any litigation, proceeding, investigation, or matter

2 requiring the sei-vices o f a lawyer; and,

3
d. Such other duties and functions that may be assigned by the Solicitor General,

5
S E C T IO N 10. Capacity Development. - In order to build and develop the capability o f

6 the OSG as an organization to achieve development goals, as well as enhance its abilities to

7
achieve measurable and sustainable results, the Solicitor General, in consultation with the

8
Assistant Solicitors General, shall formulate, develop, and implement plans, activities, and

9
programs towards the im provement o f knowledge, skills, and systems o f all the employees in the

10 OSG. To achieve this objective, tlie Solicitor General may by him self authorize OSG lawyers to

11
travel anywhere in the Philippines and abroad to attend seminars, fora, conferences, or lectures

12
on different areas o f law, pleadings and practice in international courts and tribunals, public-

13 private partnerships, and public corporate governance, among others. The Solicitor General may

14
also authorize the adm inistrative staff o f the OSG to undergo relevant training to improve their

15 skills.

16

17 S E C T IO N 11. Compensation. The salary grades o f the Solicitor General, Assistant

18 Solicitors General, Senior State Solicitors, State Solicitors, and Associate Solicitors shall be as

19 follows:

P O S IT IO N SA LA R Y G R A D E
Solicitor General 31
Assistant Solicitor General 30
Senior State Solicitor 29
State Solicitor II 28
[ State Solicitor I 27
Associate Solicitor III 26
Associate Solicitor II 25
Associate Solicitor I 24

13
 1
The Solicitor General, Assistant Solicitor General, and Solicitors shall be entitled to step
2
increments and longevity pay wliich shall be equivalent to those being received by their

3 counterparts in the Judiciary.

5
The positions and salaries o f non-legal personnel in the OSG shall be on the same level ras

6 their counterparts in the Court o f Appeals.

8
SK C TIO N 12. Benefits and P r iv ile g e s .- T h t OSG shall provide its employees with the
9 following benefits:

10
(1) Health care services tlirough a health maintenance organization (MMO). Expenses

11
for the mandatory annual executive check-up o f the Solicitor General, the Assistant

12 Solicitors General

13
(2) and OSG officials whose positions correspond to Salary Grade 28 and above shall

14 be for the account o f the OSG;

15
(j) Hazard pay, as well as accident insurance policies procured by the OSG at its own
16
expense to protect its officials while they are in the performance o f their official duties

17 and functions;

18
(4) W ithout prejudice to efficiency in the seiwice, scholarships to deserving employees
19
on official time and at the expense o f the OSG to enhance their academic growth and

20
upgrade their knowledge and skills. Scholarships under this provision shall be granted on

21
the basis o f competitive examination. Scholars shall be required to render service in the

22
OSG upon immediate completion o f the program, course or degree, in accordance with

23 applicable Civil Service laws, rules and regulations.

24
(5) A provident fund which shall consist o f contributions made both by the OSG and

25
by its lawyers and employees to a common fund for the payment o f benefits to such

26 lawyers or employees or their heirs;

27
(6) Other benefits as enjoyed by other government offices or as may be determined by

28
the Solicitor General in the exigencies o f the service and in accordance with law.
29

14
 1
S E C T IO N 13. Sem inar and Other Professional Fees. Subject to the availability o f

2 funds, fees for relevant seminars, as well as professional membership fees, registration fees, and

j related miscellaneous expenses incurred in completing the mandatory continuing legal education

4
(MCLE) course shall be borne by the OSG for its lawyers: Provided That lawyers whose lifetime

5
membership fees to the Integrated Bar o f the Philippines (IBP) have been paid up or reimbursed

6 by the OSG shall maintain their service in the OSG for at least live (5) years: Provided, fnrdier.

7
That should such lawyers resign or in any manner separate from the Ofllce belbre the end o f the

8 bond, they shall be required to reim burse the paid up IBP membership dues or lees p ro rata, (n)

10
Professional membership, registration fees, including those for mandatory continuing

11
professional education (CPE), and related miscellaneous expenses o f other employees holding

12
positions lor which a professional license is required by the office shall also be borne by the OSG.

13

14 S E C T IO N 14. Survivorship Benefits; Covera^je. -U p o n the death o f a Solicitor General,

15 Assistant Solicitor General, Senior State Solicitor, State Solicitor, or an Associate Solicitor o f the

16 OSG, It said official had retired or was in the service at the time o f death, the surviving legitimate

17 spouse and dependent children, or in their absence, the surviving parents o f said official shall be

18 entitled to receive on a m onthly basis all the retirement benefits that the deceased official was

19 receiving or entitled to receive at the time o f death under the provisions o f applicable retirement

20 laws. A dependent means a legitimate, illegitimate, or legally adopted child who is chielly

21 dependent with the abovem entioned officials, and who is not more than twenty-one (21) years o f

22 age, unmarried and not gainfully employed or, regardless o f age, is incapable o f self-support

23 because ol mental or physical defect. The surviving legitimate spouse shall continue to receive

24 such retirement benefits during such spouses lifetime or until such spouse remarries: Provided.

20 That, if the surviving legitimate spouse is receiving benefits under existing retirement laws, the

26 surviving legitimate spouse shall only be entitled to the difference between the amount provided

-7 for in this Act and the benefits the surviving spouse has been receiving: Provided. Further, That

28 said benefits shall be granted to all aforementioned members o f the OSG who died or retired prior

29 to the effectivity o f this Act: Provided, furthermore. That the surviving legitimate spouse

15
 1 receiving the benefit shall not appear as counsel before any court in any civil case wherein the

2 Government or any subdivision or instrumentality thereof, including GOCCs, is tlie adverse party,

3 or m any criminal case wherein an incumbent or former officer or employee o f the Government

is accused o f an offense com m itted in relation to their office, or collect any fee for the appearance

in any administrative proceeding: Provided, finally. That a'surviving legitimate spouse duly

elected to any public office shall not. upon assumption o f office and during the spouses term as

elected public official, receive the survivorship benefits under this section.

9
S L C IIO N 15. G rant o f Special Allowances. Any provision o f law to the contrary

10
notwithstanding, the Solicitor General, Assistant Solicitors General, Senior State Solicitors, State

11
Solicitors and Associate Solicitors shall be granted special allowances in amounts to be

12 determined by the Solicitor General.

13

14 The grant o f special allowances shall be implemented uniformly in such sums and amounts

15 and up to the extent only that can be supported by the funding source specified in Section 18 (a)

16 to (d) hereof: Provided. That each grant o f the said special allowance shall not exceed One

17 hundred percent (100%) o f the basic salary o f solicitors, as provided in Republic Act No. 6758,

18 otherwise known as the Salary Standardization Law: Provided, further. That said special

19 allowances shall be exem pt from income tax.

20

21
S E C T IO N 16. Ollier Benefits. The lawyers o f the OSO are nllowed to receive
22
honoraria and allowances directly from each client department, agency. GOCC, or instrumentality
23
o f the Government for the legal services rendered, including appearing in hearings, providing
24
legal advice, drafting o f contracts and legal documents, and perform ing other designated

25 functions. Such honoraria and allowances shall be exempt from income tax.

26

27 S E C T IO N 17. F rn ,M u g Privilege. - h \\ official mail matters and telegrams o flh e OSG

28 addressed for delivery within the Philippines shall be received, transrailled, and delivered free o f

16
 1
charge: Provided, that such mail matters when addressed to private persons or non-government

2 oflices shall not exceed one hundred twenty (120) grams.

4
S F X T IO N 18. Funding. The funds required for the implementcation o f this Act,
5
including those for health care services, survivorship benefits, insurance premiums, professional,

6 educational, and registration fees, transportation benefits, and other b en d lis and privilegc.s

7
mentioned in the other provisions o f this Act, shall be provided for in the General Appropriations

8 Act and augmented by funds sourced from the following:

9 (a) Twenty percent (20%) o f monetary awards or value o f assets adjudged by the
10
Courts or tribunals to client departments, agencies and instrumentalities o f the
11
Government, and GOCCs, including those under court approved compromise agreements;
12
(b) Twenty percent (20%) o f assets adjudged to the Government in forfeiture
13 proceedings;

14
(c) Fifty percent (50%) o f fees collected by the Special Committee on

15 Naturalization; and

other income, fees and revenues earned and collected by the OSG.
17

18
For this purpose, the OSG is hereby authorized to charge deputation, certification, and other
19 similar fees in the cases that it handles.

20
The amounts collected pursuant to paragraphs (a) to (d) in this section shall constitute a
21 trust fund as defined in the next section.

~J S E C T IO N 19. Trns/ Fund. - There is hereby created an OSG Trust Fund (OTF) sourced

24 Irom the amounts collected pursuant to Section 18(a) to (d) o f this Act. The OTF shall be

25 administered by the Solicitor General in accordance with existing government auditing rules and

26 regulations, and shall be used exclusively for the provision o f the benefits and privileges provided

27 in this Act and for the effective im plem entation o f the powers and functions o f the OSG. All

28 interest income, dividends and earnings accrued from the OTF shall also form part o f the Trust

17
 1 Fund. No portion o f tlie OTF shall revert to the general fund o f the National Government, except

2 when the Trust Fund is no longer necessary for the purposes for which it was established.

4 S F C n O N 20. Transfer o f Cases. - All cases being handled by the OGCC shall be

5 transfeiTcd to the OSG: Provided, hoM-ever. that the handling OGCC law)'er shall submit a status

6 report o f all cases he or she is handling to the Solicitor General: Provided, further, that a

7 certification under oath that the records o f the case transmitted to the OSG are complete shall be

8 made by the handling OGCC lawyer as a pre-condition for receiving the separation or retirement

0 benefits under this Act.

10

11 SI-C TIO N 21. Case Migration. - Upon the effectivity o f this Act, a transition Ca.se

12 Migration Comm ittee (CM C) shall be created, composed o f three (3) members Irom each o f the

13 rc.spective records and docket divisions o f the OSG, the OGCC, and the PCGG, at least two (2)

14 members from the legal divisions o f all GOCCs, and at least two (2) lawyers each from the OSG,

15 the OGCC, and the PCGG.

16

17
The CMC shall ensure the smooth turnover o f all cases and legal concerns o f the OGCC
18
and the PCGG to the OSG, with corresponding status reports, complete records, and other relevant
19
documents, taking care that no case or legal concern shall be prejudiced in the process o f turnover.

20

21
The CMC shall have the responsibility o f determining which ca.ses and legal concern.s
22
need immediate attention or are extremely urgent. These cases and legal concerns shall be

23 immediately transferred or referred to the OSG.

24

25
The CMC shall complete its w ork within thirty (30) days from its constitution. The CMC

26 shall submit a com prehensive report to the Solicitor General.

27

28
S E C T IO N 22. Absorption o f P e rso n n e l.-T h e officials and employees o f the OGCC and

29 the 1*CGG affected by the abolition o f their respective offices shall be absorbed in the OSG:

18
 n - m M . That said officials or em ployees possess the necessary eligibility and qiialillcations for '

the position as prescribed in this Act: Provided, f r ,l,er. That such absorbed personnel shall not

be entitled to the retirement or separation benefits provided in the next section. The abso
ption o f
4
such officials and em ployees in the OSO shall retroact to the date o f the effectivity o fth i i Act, or

5 to such date that would prevent a gap in die service o f such absorbed personnel.

7 S E C T IO N 23. Retirement or Separation fro m Service. - Consequent to the abcjl

ition o f

8 the OGCC and the PCGG. OGCC and PCGG officials and employees who are at least f
fty (50)
9 years o f age and have served at least fifteen (15) years in the government service, the las^
five (5)

10 yeais o f which shall have been continuously rendered in the OGCC or the PCGG,
shall be

11 qualified for retirement with full retirement gratuity and pension pursuant to applicab)
e laws,

12 Tliose who lack any one o f the above qualifications shall receive a separation pay equix
alent to
13 one and a half (1 & 1/2) months for every year o f service in government, which will be
provided
14 for in the General A ppropriations Act.

If)
SK C TIO N 24. Implementing Rules and Regulations. - Within sixty (60) days rom the

17 approval of this Act, the Solicitor General, in coordination with the Secretary o f Budgi
^et and

18 Management, shall promulgate such rules and regulations as may be necessary to elTectivdl
y carry
19 out the provisions o f this Act. Until such time that the rules and regulations arc promulgrj
ted and

20 Section 21 o f this law is implemented, the officials and adm inistrative personnel o f the
OGCC
21 and PCGG shall remain in their positions in a holdover capacity.

22

23
S E C T IO N 25. Retroactivity. - The retirement benefits provided for in Section
and the
24
survivorship benefits provided for under Section 14 o f this Act shall have retroactive elTel
t as o f
25 the date o f effectivity o f Republic Act No. 9417.

26

27 S E C T IO N 26. A pproprialiom . - Tlie amount necessary for the inilial implemen

ation o f

28 this Act shall be taken from the cu nent appropriations o f the OSG and its savings. Tliereaf
er, such

19
 sums as may be necessary for the continued implementation o f this Act shall be included in the

annual General A ppropriations Act.

4
S E C T IO N 27. Repealing Clause. This Act e.xpressly repeals Republic Act No. 2327

5 entitled An Act To Declare The Position O f Government Corporate Counsel Distinct Ami

6 Separate From That O f The Solicitor General. Provide For His Appointment And Salary And

7
Appropriate The Necessary Funds Therefor. And For Other Purposes ", Executive Order No. 1,
8 s. 1986 entitled (lCreating the Presidential Commission on Good GovernmenC, Executive Order

9
No. 2, s. 1986 entitled "Regarding the Funds. Moneys. Assets and Properties Illegally Acquired

10
or Misappropriated by Form er President Ferdinand Marcos Mrs. Imelda Romualdez Marcos.

11
Their Clo.se Relatives. Subordinates Business Associates. Dummie.s. Agent.s. Or Nominees", and
12
Republic Act No. 9417, entitled "An Act To Strengthen The Office O f The Solicitor General By

13
Expanding And Streamlining Its Bureaucracy. Upgrading Employee Skills And Augmenting
14 Benefits, And Appropriating Funds Therefor And For Other P urpo.se.s".

15
Pertinent provisions o f Executive Order No. 292, otherwise known as the Revised
16
Administrative Code o f 1987, as amended, and all laws, decrees, orders, rules and regulations or

17
parts thereof which are contrary to or inconsistent with the provisions o f this Act are hereby

18 amended, lepealed or m odified accordingly.

19

20
SE C 1 IO N 28. Separability Clause. If any provision o f this Act is declared invalid or
21
unconstitutional, the provisions not affected thereby shall continue to be in full force and effect.

22

23
S E C T IO N 29. Effectivity. This Act shall take effect after fifteen (15) days from its

24 publication in the Official Gazette or in at least two (2) newspapers o f general circulation.

25

26 Approved,

20