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Civil Service Commission (CSC)

Book V, Title I, Executive Order No. 292; Instituting
the Administrative Code of 1987
The Civil Service Commission serves as the central
personnel agency of the Government.
CSC Mandate
1. establish a career service
2. adopt measures to promote morale, efficiency,
integrity, responsiveness, and courtesy in the
civil service
3. strengthen the merit and rewards system
4. integrate all human resources development
programs for all levels and ranks
5. Institutionalize a management climate
conducive to public accountability.
Declaration of Policy
The public office is a public trust and public
officers and employees must at all times be
accountable to the people
Personnel functions shall be decentralized,
delegating the corresponding authority to the
departments, offices and agencies where such
functions can be effectively performed.
Scope of the CSC
The Civil Service embraces all branches,
subdivisions, instrumentalities, and agencies of
the Government, including government-owned
or controlled corporations with original
chapters
Composition and Term of Office
1. Chairman 7 yrs., w/o reappointment
2. One Commissioner 5 yrs., w/o
reappointment
3. One Commissioner 3 yrs., w/o
reappointment
*Appointment w/ consent of the Comm. of Appointments

Qualifications for the office

Natural Born citizens of the PH
At least 35 yrs. of age
w/ proven capacity for PA
Must not been candidates for any elective
position in the elections immediately
preceding their appointment
Powers and Functions of the CSC
1. Administer and enforce the merit system for all
levels and ranks in the Civil Service;
2. Prescribe, amend and enforce rules and
regulations to carry out the provisions of the Civil
Service Law and other pertinent laws;
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3. Adopt plans and programs to promote economical,

efficient and effective personnel administration in
the government;
4. Formulate policies and regulations for the
implementation of position classification and
compensation and set standards for the
establishment, allocation and reallocation of pay
scales, classes and positions;
5. Render opinion and rulings on all personnel and
other Civil Service matters which may be brought
to the Supreme Court on certiorari (review by a
higher court);
6. Appoint and discipline its officials and employees
in accordance with law
7. Control, supervise and coordinate Civil Service
Examinations
8. Prescribe all forms for Civil Service examinations,
appointments, reports and such other forms as
may be required by law, rules and regulations.
9. Declare positions in the Civil Service as may
properly be primarily confidential, highly technical
or policy determining
10. Formulate, administer and evaluate programs
relative to the development and retention of
qualified and competent work force in the public
service;
11. Hear and decide administrative cases instituted by
or brought before it directly or on appeal, incl.
contested appointments, and review decisions and
actions of its offices and of the agencies attached
to it.
Decisions, orders, or rulings may be brought to the
Supreme Court on certiorari by the aggrieved party
w/in thirty (30) days from receipt of a copy thereof;
12. Issue Subpoena and subpoena duces tecum (Court
summons) for the production of documents and
records pertinent to investigation and inquiries
conducted by it.
13. Advise the President on all matters involving
personnel management in the government service
and submit to the President an annual report on
the personnel programs;
14. Take Appropriate action on all appointments and
other personnel matters in the Civil Service incl.
extension of Service beyond retirement age.
15. Inspect and audit the personnel actions and
programs of the departments, agencies, bureaus,
offices, local government units and other
instrumentalities of the government including
government-owned or controlled corporations;
conduct periodic review of the decisions and
actions of offices or officials to whom authority has
been delegated by the Commission as well as the
conduct of the officials and the employees in these

16.

17.

18.
19.

offices and apply appropriate sanctions when

necessary;
Delegate authority for the performance of any
function to departments, agencies and offices
where such functions may be effectively
performed;
Administer the retirement program for
government officials and employees, and accredit
government services and evaluate qualifications
for retirement;
Keep and maintain personnel records of all officials
and employees in the Civil Service; and
Perform all functions properly belonging to a
central personnel agency and such other functions
as may be provided by law.

Implementation Approaches
1. Regulatory
To ensure compliance of agencies with policies
and standards on HRD systems by the CSC
Non-compliance
with
the
procedural
requirements constitutes ground for corrective
or even punitive action
Formulation of guidelines on SALN
Adherence to RA 6713
2. Corrective
Deals with disciplinary actions against official or
employee for infractions committed in relation
to the performance of his/her functions
The Administrative Code of 1987 or Executive
Order No. 292 outlines the various acts that are
subject
to
administrative
disciplinary
proceedings.
The following shall be grounds for disciplinary
action (Sec. 46, Ch. 7, EO 292):
1. Dishonesty
2. Oppression
3. Neglect of duty
4. Misconduct
5. Disgraceful and immoral conduct
6. Being notoriously undesirable
7. Discourtesy in the course of official duties
8. Inefficiency and incompetence in the
performance of the official duties
9. Receiving for personal use of a fee, gift or other
valuable thing in the course of official duties or
in connection therewith when such fee, gift, or
other valuable thing is given by any person in the
hope or expectations of receiving a favor or
better treatment than that accorded other
persons, or committing acts punishable under
the anti-graft laws
10. Conviction of a crime involving moral turpitude
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11. Improper or unauthorized solicitation of

contributions from subordinate employees and by
teachers or school officials from school children
12. Violation of existing Civil Service Law and rules or
reasonable office regulations
13. Falsification of official document
14. Frequent unauthorized absences or tardiness in
reporting for duty, loafing or frequent
unauthorized absences from duty during regular
office hours
15. Habitual drunkenness
16. Gambling prohibited by law
17. Refusal to perform official duty or render overtime
service
18. Disgraceful, immoral or dishonest conduct prior to
entering the service
19. Physical or mental incapacity or disability due to
immoral or vicious habits
20. Borrowing money by superior officers from
subordinates or lending by subordinates to
superior officers
21. Lending money at usurious rates of interest
22. Willful failure to pay just debts or willful failure to
pay taxes due to the government
23. Contracting loans of money or other property from
persons with whom the office of the employee
concerned has business relations
24. Pursuit of private business, vocation or profession
without the permission required by Civil Service
rules and regulations
25. Insubordination
26. Engaging directly or indirectly in partisan political
activities by one holding a non-political office
27. Conduct prejudicial to the best interest of the
service
28. Lobbying for personal interest or gain in legislative
halls or offices without authority
29. Promoting the sale of tickets in behalf of private
enterprises that are not intended for charitable or
public welfare purposes and even in the latter
cases if there is no prior authority
30. Nepotism
o All appointments in the national, provincial, city
and municipal governments or in any branch or
instrumentality thereof, including governmentowned or controlled corporations, made in favor
of a relative of the appointing or recommending
authority, or of the chief of the bureau or office,
or of the persons exercising immediate
supervision over him, are hereby prohibited.
o As used in this Section, the word relative and
members of the family referred to are those
related within the third degree either of
consanguinity or of affinity (Section 59, Chapter
8, EO 292).

 Disciplinary Jurisdiction
The Commission shall decide upon appeal all
administrative disciplinary cases involving the
imposition of a penalty of suspension for more
than thirty days, or fine in an amount exceeding
thirty days salary, demotion in rank or salary or
transfer, removal or dismissal from office.
A complaint may be filed directly with the
Commission by a private citizen against a
government official or employee in which case
it may hear and decide the case or it may
deputize any department or agency or official or
group of officials to conduct the investigation.
The results of the investigation shall be
submitted
to
the
Commission
with
recommendation as to the penalty to be
imposed or other action to be taken (Section 47,
Chapter 7, EO 292).
3. Developmental
Program to Institutionalize Meritocracy and
Excellence in Human Resource Management
(PRIME-HRM)
It empowers government agencies to develop
their
human
resource
management
competencies, systems, and practices toward
HR excellence.
The Strategic Performance Management
System (SPMS)
It is a mechanism that links employee
performance with organizational performance
to enhance the performance orientation of the
compensation system.
Competency-Based
Recruitment
and
Qualifications Standards
The CSC aims to integrate competencies in
human resource systems of government
agencies starting with recruitment.
Competency-Based Learning and
Development Program
The CSC aims to integrate competencies in
human resource systems of government
agencies, not only in recruitment but also in
training and development.
Leadership and Coaching Program
4. Anti-corruption initiatives
1. RA 9485 or Anti-Red Tap Act of 2007
ARTA Watch
An initiative of the CSC to support the
implementation of Republic Act No. 9485 or the
Anti-Red Tape Act (ARTA) of 2007.
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Designed to raise awareness on ARTA and to send

the message that the CSC is serious in pushing for
quality government services.
1. CSC officials spot check agencies frontline
services.
2. After the surprise visit, CSC officials conduct a
brief talk on the salient points of ARTA, the
Report Card Survey, Citizens Satisfaction Center
Seal of Excellence, and Service Delivery
Excellence Program.
3. Teams also generate a written feedback on
observations and suggestions to improve
frontline services, a copy of which is given to the
concerned office immediately after the visit.
Report Card Survey (RCS)
A mechanism to measure client satisfaction and
get feedback on government frontline services
pursuant to Anti-Red Tape Act of 2007.

Service Delivery Excellence Program (SDEP)

Applicable to government agencies which got a
Failed Rating in the Report Card Survey.
Involves service improvement workshops and
facilitation designed to increase the efficiency
and effectiveness of the service offices
strategies, structure, staff, and systems.
1. SDEP Level 1 is given to offices which failed due to
minor infractions:
1.1 non-observance of No Noon Break policy
1.2 employees' failure to wear IDs
1.3 absence of a Public Assistance and Complaints
Desk and anti-fixing measures
2. SDEP Level 2 is given to offices whose failure in the
RCS requires improvement in the office strategies,
structure, staff and systems.
Citizens Satisfaction Center Seal of Excellence
An award given to government service offices
that have demonstrated exemplary frontline
service delivery by meeting both conditions:
Excellent rating in the ARTA Report Card
Survey
Has no valid and unresolved ARTA-related
complaint based on the Contact Center ng
Bayan Data

 The award aims to promote service delivery

excellence in the bureaucracy, to acknowledge
the hard work of civil servants in providing
responsive, efficient and customer-centric
services, and to drive competitiveness within and
between government agencies.
Prizes
Wall-mounted glass seal bearing the Seal of
Excellence logo
Cash reward amounting to PHP 100,000.00 to
be utilized to improve ARTA compliance
Contract Center ng Bayan (CCB)
Established by the Civil Service Commission and
the
Information
and
Communications
Technology Office-National Computer Center
(ICTO-NCC) to support the implementation of
Republic Act No. 9485 or the Anti-Red Tape Act
(ARTA) of 2007.
A feedback mechanism where citizens can
request for information and assistance on
government frontline service procedures, and
report
commendations,
appreciation,
complaints, and feedback.
2. Implementation of policy on Statement of Assets,
Liabilities and Net-worth (SALN)
3. Case Resolution
Commission on Audit (COA)
Established by the Civil Service Commission
and the Information and Communications
Technology Office-National Computer Center
(ICTO-NCC) to support the implementation of
Republic Act No. 9485 or the Anti-Red Tape Act
(ARTA) of 2007.
A feedback mechanism where citizens can
request for information and assistance on
government frontline service procedures, and
report
commendations,
appreciation,
complaints, and feedback.
Composition
Chairman shall serve 7 years
- Chair. Michael Aguinaldo
1 Commissioner shall serve for 5 years
- Com. Heidi L. Mendoza
1 Commissioner shall serve one for 3 years
- Com. Jose A. Fabia
Qualifications
natural-born citizens of the Philippines
at least 35 years old at the time of appointment
Certified Public Accountants with not less than
ten years of auditing experience, or members of
the Philippine Bar who have been engaged in the
practice of law for at least ten years
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Must not have been candidates for any elective

position in the elections immediately preceding
their appointment
COA Functions
Examine, audit and settle all accounts pertaining
to the revenue and receipts of, and expenditures
or uses of funds and property owned or held in
trust by, or pertaining to, the government;
Promulgate accounting and auditing rules and
regulations including those for the prevention
and disallowance of irregular, unnecessary,
excessive, extravagant or unconscionable
expenditures, or uses of government funds and
properties;
Submit annual reports to the President and the
Congress on the financial condition and
operation of the government;
Recommend measures to improve the efficiency
and effectiveness of government operations;
Keep the general accounts of government and
preserve the vouchers and supporting papers
pertaining thereto;
Decide on any case brought before it within 60
days;
Perform such other duties and functions as may
be provided by law.
The Commission also deploys resident
auditors in all national government agencies,
local government units and governmentowned and controlled corporations pursuant
to its mandate to review each agencys
financial operations in a risk-based audit
approach.
COA Reports
1. Audit Performance and Summary Reports
2. Annual Audit Reports
3. Disaster Risk and Reduction Management
Reports
4. Special Audit Reports
5. Annual Financial Reports
6. Official Development Assistance Reports
7. Reports on Salaries and Allowances
1. Audit Performance and Summary Reports
Contain the results of the audit conducted on
the financial statements submitted by agencies,
LGUs and GOCCs to COA Auditors.
The results are shown in the form of audit
opinions indicating how the agencies fared with
their financial statements at the end of each
fiscal year.
The types of audit opinions are Unqualified (U),
Qualified (Q), Adverse (A), and Disclaimer (D).

Unqualified O - refers to the clean opinion or the

agency reflected the results of the financial
statements fairly, which means its operations and
the financial condition in a given period of time are
based on existing government accounting
standards, and in compliance with government
laws, rules and regulations.
Qualified O - an agency reflected fairly except for
some specific transactions and/or accounts that
have been found to be problematic, either
improper, questionable or needs further
explanations.
Adverse O - The financial statements did not fairly
present its results of operations and financial
condition of the agency, and are not in compliance
with prescribed laws and applicable guidelines.
Disclaimer O - There is no sufficient basis to form
any opinion for an agency that does not keep or
submit its records of financial accounts and
transactions.
Component parts:
Audit Certificate - which shows the audit
opinion (U, Q, A, D)
Financial Statements
Major Findings and Observations - which
explains if there are defects in the
compliance of accounting and auditing rules
and policies
Recommendations to the entities which
the COA checks in next years annual audit
report to find out if the recommendations
were confirmed by the entity

2. The Consolidated Annual Financial Reports

Show the financial performance of the public
sector in general one each for NGAs, LGUs,
GOCCs Public Debt Reporting, and Judiciary
Development Fund.
Reflect the financial resources of the
government, even the off-budget accounts or
funds that are not subject to annual
appropriations.
The only source of information for funds that
are not sourced out from appropriations.
3. Disaster Risk and Reduction Management
Reports
Includes:
Assessment reports on disaster risk and
reduction management systems at the local
and national level
Report on relief operations
Citizen audit report
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4. Special Audit Reports

Special purpose investigation, in response to
a request by interested parties or by a
directive from Congress.
Example:
o special audit reports on the countrys
outstanding debt
o special purpose funds such as the AFMA and
procurement of the Department of Public
Works and Highways
Conduct of Value-For-Money audits and
related operations review activities.
Provide management consultancy services to
government agencies in such areas as:
Organization
Strategy Formulation
Financial Feasibility
Other related areas
Coordinate with all offices of the Commission
for the purpose of establishing feedback
mechanisms on implemented innovations
Formulate recommendations to the Chairman
on the adoption of the most appropriate
systems for the enhancement of operations
5. Annual Financial Report
Annual Financial Reports of NGAs, LGUs,
GOCCs
Annual Reports on Allotments, Obligations and
Disbursements
6. Reports on Salaries and Allowances
Report on Salaries and Allowances Received
by Principal Officers and Members of
Governing Boards of Government-Owned
and/or Controlled Corporations and their
Subsidiaries,
and
Secretaries,
Undersecretaries, Assistant Secretaries and
Other Officials of Equivalent Rank of National
Government Agencies
Issues and Limitations (Boncodin)
(Mandate, the accounting and auditing system)
1. Auditing is not based on the budget
The audit system looks only at the agencys
compliance with the accounting standards
and laws in the financial reports instead of
finding out if the agencies have properly
allocated their appropriated budgets
2. Reporting of GOCCs entire budget
What is reported in the government budget
documents regarding the GOCCs are the
budgetary support to government corporations
or subsidies only. Yet, COA audits the corporate

operating expenses or the entire budget of

government corporations
3. Lax in penalizing because COA is limited to
recommendatory functions only
Adverse/Disclaimer audit opinions and
recommendations by COA to government
agencies do not have the corresponding
penalties or sanctions if they are not acted upon
and followed.
An example is DPWHs audit report where it
has been given an adverse opinion for the
past 16 years.
4. Pre-audit vs. Post-audit
Post-audit is disadvantageous because it
involves final evaluation of financial
transactions that is after the funds have
already been disbursed.
Pre-audit however, ironically defeats the
overall essential purpose of auditing because
financial
transactions
are
assessed
beforehand.
In the past, COA had been operating on postaudit basis. From 1995 until 2009, selective
pre-auditing was carried out due to the rising
incidents of anomalous disbursements
pursuant to COA Circular 2009-002.
Circular 2009-003 on June 16, 2009
suspended some of the provisions in the
earlier circular to ensure uniformity and
consistency in its implementation.
COA Report Limitations
(The Philippine National Budget Monitoring)
1. Timeliness
COAs deadline on the submission of
reports is not parallel to the schedule of
budget preparation.
Audit and financial reports must be
submitted by end of September while
budget preparation time ends in July when
the Congress session opens.
The timings would thus work best if
reversed since the reports should serve as
aids in reviewing the agencies budgets in
time for budget legislation.
2. Contestability of findings
Past findings like the so-called hereditary
balance sheets that have not been
resolved. An example are the:
Ex. Disallowances of certain employees
that have not been deducted by their
respective agencies
Inconsistency of enforcement of audit
rules by resident auditors
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Unreasonable application of rules and

regulations in auditing
Inability of auditors to understand the
situation of agencies operations
3. Feasibility of recommendations
COAs recommendations are not always
followed by concerned agencies
4. Conflict of interest
COA auditors are still considered as mere
mortals that may experience bias,
influences and errors in judgement
There are often claims that some auditors
are complicit in bribery and graft
Office of the Ombudsman
Five Major Functions
1. Investigation
2. Administrative Adjudication
3. Prosecution
4. Public Assistance
5. Graft Prevention
1. Investigation
OMB has the authority to:
Conduct preliminary investigation of cases
filed before it
Initiate the conduct of fact-finding
investigation and gathering of evidence of
case building
Lifestyle check
2. Administrative Adjudication
The office has the authority to impose
administrative sanctions like suspensions and
dismissal from service erring public officers
and employees.
Distribution of Cases Resulting in the imposition of
Administrative Penalty
Maximum Penalty
# of
Imposed
Administrative
cases
Dismissal from the Service 297
Suspension
654
Fine
46
Reprimand
173
Disqualification from
2
holding Public Office
Admonition
16
3. Prosecution
Office of the Special Prosecutor to prosecute
cases filed against high ranking officials (w/
salary grade 27 and above) in the
Sandiganbayan.

 Ombudsmans
Graft
Investigation
and
Prosecution Officers and DOJs deputized
prosecutors to prosecute the cases filed against
low ranking officials (w/ salary grade 26 and
below) in the regular courts.
4. Public Assistance
As a preventive measure against corruption, the
OMB extends assistance to citizens to secure
both smooth and satisfactory delivery of
government service. It obviates the need for
grease money and influence peddling for
government action.
5. Graft Prevention
It is a pro-active approach intended to eliminate
opportunities to commit or pre-empt the
commission of graft and corruption to ensure
that the peoples money is kept safe and intact.
OMBs Policy Thrust and 8-point Priorities for 11-18
1. Disposition of grand corruption and high-profile
cases
Grand corruption cases involve:
Highest national officials in the land or
those where the alleged network of
corruption is national in scope.
Large sums of money amounting to at least
10 million pesos.
Celebrated cases being investigated by the
Senate, House of Representative or factfinding commissions created by the President.
2. Zero backlog in the investigation of criminal cases,
adjudication of administrative cases, and
disposition of all grievances and requests for
assistance.
Seeks to end a culture of delays that erodes
public trust and credibility of the Ombudsman
process.
To resolve within 30 days from the date of
submission all cases which are up for
resolution/decision, pursuant to the rules.
Cases involving retiring public officials and
employees shall be prioritized and disposed
with dispatch, pursuant to Republic Act No.
10154.
3. Improved survival rate of fact-finding
To improve evidence gathering by following
the standards of fair, impartial, and
expeditious investigation in the pursuit of
justice.
To utilize specialized techniques such as forensic
engineering, accounting, and auditing.
To prevent corruption in government by punishing
erring officials and employees.
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To ensure that cases filed in court arising from

completed fact-finding investigations shall not
be dismissed on demurrer.
To ensure conviction of administrative cases
filed against erring public officials and
employees shall ascertain their conviction.
4. Enforced monitoring of referred cases
Non-corruption complaints and cases that are
denominated are referred to the proper forum for
appropriate action.
To establish a monitoring system for referred
complaints and cases to ensure prompt resolution
of appropriate administrative proceedings
pursuant to Section 23(2) of R.A 6770.
Criminal cases referred to the National
Prosecution Service of the Department of
Justice for prosecution in the regular trial
courts.
Administrative cases indorsed to the heads of
concerned agencies for imposition of penalty.
5. Improved responsiveness of public assistance
To establish a system for active handling of
customer feedback and redress of grievance,
including integration of such feedback into the
performance evaluation of the concerned action
officer.
All front-line service units shall extend
prompt, courteous and adequate service to
the public.
Requests for assistance (RAS) and cases
referred for mediation shall be disposed
expeditiously
6. Improved anti-corruption policy and programme
coordination among sectors
The Ombudsman shall continue to adopt a
three-pronged approach in the war against
corruption: enforcement, prevention and
anti-corruption promotion.
To design a multi-sectoral strategy aimed at
mobilizing the support of all stakeholders for
a more coherent anti-corruption programme.
7. Rationalization of the functional structure of the
Office
To review the existing functional structure of
the Office of the Ombudsman to identify gaps
and overlaps in the discharge of various
functions.
To conduct a personnel accounting to
rationalize the task assignment and division of
work.
To assess the procedures, systems, rules and
administrative policies in compliance with the
Anti-Red Tape Act.

 To adopt a metrics-based results-oriented

performance management system and
incentive mechanism for officials and
employees.
8. Enhanced transparency and credibility
To review:
Existing policy on sharing of information
regarding the cases being investigated or
prosecuted by the Ombudsman shall be
reviewed.
Regulating the disclosure of information on
recruitment, promotion, and personnel
action; procurement and use of funds and
resources; and the discharge of other
functions.
SANDIGANBAYAN: Honor, Integrity, Accountability
Overview
Sandiganbayan is a special court established
under Presidential Decree No. 1606.
A special court, of the same level as the Court
of Appeals and Court of Tax Appeals and
possessing all the inherent powers of a court of
justice.
Composed of a presiding justice and fourteen
associate justices who shall be appointed by
the President.
History
The National Assembly shall create a special
court which shall have jurisdiction over
criminal and civil cases involving graft and
corrupt practices and such other offenses
committed by public officers and employees,
including those in GOCCs, in relation to their
office as may be determined by law (Section 5,
1973 Constitution).
Presidential Decree No. 1486 issued on June
11, 1978
Created the Sandiganbayan.
Placed the Sandiganbayan on the same level
as the Court of First Instance, now the
Regional Trial Court.
Presidential Decree No. 1606 issued on
December 10, 1978
Elevated the status of Sandiganbayan to the
level of the Court of Appeals.
Republic Act 7975 issued on 30 March 1995
An act to strengthen the functional and
structural organization of the Sandiganbayan,
amending for that purpose Presidential
Decree No. 1606, as amended.
Republic Act 8249 issued on February 5, 1997
An act further defining the jurisdiction of the
Sandiganbayan, amending for the purpose
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Presidential Decree No. 1606, as amended,

providing funds therefor, and for other
purposes.
Under
RA
8249,
criteria
of
the
Sandiganbayans jurisdiction:
The nature of the offense;
The salary grade of the public official (SG 27
and up).
Jurisdiction, R.A. No., 8249
1. RA 3019 (Anti-graft and Corrupt Practices
Law);
2. RA 1379 (Forfeiture of Illegally Acquired
Wealth);
3. Crimes by public officers or employees
embraced in Ch. II, Sec.2 Title VII, Bk. II of the
RPC (Crimes Committed by Public Officers)
namely:
3.1 Direct Bribery under Art. 210 as amended
by BP 871, May 29, 1985;
3.2 Indirect Bribery under Art. 211 as amended
by BP 871, May 29, 1985;
3.3 Qualified Bribery under Art. 211-A as
amended by RA 7659, Dec. 13, 1993;
3.4 Corruption of public officials under Art. 212
4. Other offenses or felonies whether simple or
complexed with other crimes committed in
relation to their office by the public officials
and employees mentioned above;
5. Civil and Criminal Cases filed pursuant to and
in connection with EO 1, 2, 14 & 14-A issued in
1986
6. Petitions for issuance of Writ of mandamus,
prohibition, certiorari, habeas corpus,
injunction and other ancillary writs and
processes in aid of its appellate jurisdiction;
Provided, jurisdiction is not exclusive of the
Supreme Court.
7. Petitions for Quo Warranto arising or that may
arise in cases filed or that may be filed under
EO 1, 2, 14 & 14- A
8. OTHERS provided the accused belongs to SG 27
or higher
8.1 Violation of RA 6713 - Code of Conduct
and Ethical Standards

8.2 Violation of RA 7080 - THE PLUNDER LAW

8.3 Violation of RA 7659 - The Heinous Crime
Law
8.4 RA 9160 - Violation of The Anti-Money
Laundering Law when committed by a public
officer

9. PD 46 gift-giving decree which makes it

punishable for any official or employee to
receive directly or indirectly
10. PD 749 grants immunity from prosecuting to
any person who voluntarily gives info about
any violation
Officials Covered (Sec. 4 of RA 8249)
1. Officials of the executive branch occupying the
positions of regional director and higher, otherwise
classified as Grade 27 and higher.
Provincial governors, vice-governors, members
of the sangguniang panlalawigan, provincial
treasurers, assessors, engineers and other
provincial department heads;
City mayors, vice-mayors, members of the
sangguniang panglungsod, city treasurers,
assessors, engineers and other department
heads;
Officials of the diplomatic service occupying the
position of consul and higher;
Philippine Army and Air force colonels, naval
captains and all officers of higher rank;
2. Members of Congress and Officials thereof classified
as Grade 27 and up under the Compensation and
Classification Act of 1989;
3. Members of the Judiciary without prejudice to the
provision of the Constitution;
4. Chairmen and members of Constitutional
Commissions, without prejudice to the provision of the
Constitution;
5. All other national and local officials classified as
Grade 27 and higher under the Compensation and
Position Classification Act of 1989.
6. Private individuals can be sued in cases before the
Sandiganbayan if they are alleged to be in conspiracy
with the public officer.
Composition
Composed of 15 justices
1 Presiding Justice
14 Associate Justices
Divided into 5 divisions, each with 3 members
1st three divisions in Metro Manila area
4th division in Cebu City for cases coming from
the Visayas region
5th division shall be in Cagayan de Oro City for
cases coming from the Mindanao region
Hon. Amparo Cabotaje-Tang
Presiding Justice
Hon. Roland Jurado
Assoc. Justice
Hon. Efren Dela Cruz
Assoc. Justice
Hon. Teresita Diaz-Baldos
Assoc. Justice
Hon. Rodolfo Ponferrada
Assoc. Justice
Hon. Alexander Gesmundo
Assoc. Justice

Juzzys Reviewer

Who files and prosecutes cases before

Sandiganbayan?
Ombudsman receives complaints
Ombudsman conducts investigation and files
case with proper court if there is prima facie
evidence
If filed with the Sandiganbayan, the
ombudsmans special prosecutor prosecutes the
case
If Sandiganbayan finds probable cause, trial
proceeds
Sandiganbayan renders its decision
Jurisdiction for Appeal
Decisions and final orders of the Sandiganbayan
shall be appealable to the Supreme Court.
The Sandiganbayan is vested with Appellate
Jurisdiction over final judgments, resolutions or
orders of the RTC whether in the exercise of their
original or appellate jurisdiction over crimes and
civil cases falling within the original exclusive
jurisdiction of the Sandiganbayan but which
were committed by public officers below Salary
Grade 27.
Vision
We envision a judicial institution that the Filipino
people can rely on for the attainment of the
highest norms of official conduct required of
public officers and employees.
Mission
The Sandiganbayan's mission is to give life and
meaning to the constitutional precept that a
public office is a public trust and to impress upon
public officers and employees that they are at all
times accountable to the people with their duty
to serve with the highest degree of
responsibility, integrity, loyalty and efficiency.
It carries out this objective by conducting
expeditious trials of criminal and civil cases
involving offenses committed by public officers
and employees, including those employed in
government-owned or controlled corporations.

Article XI of the 1987 Constitution: Accountability of

Public Officers
Section 1. Accountability of Public Officers
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, and
efficiency; act with patriotism and justice,
and lead modest lives.
Why Public trust matter?

 Public trust encapsulates the true nature and

purpose of public office
The term public trust encapsulates the
fundamental and ultimate obligation of those
in government to serve the best interests of
the people
The term public trust encapsulates the
critical ethical foundation of the obligation of
the officeholder which in turn strengthens the
integrity of our system of government
Where public trust is forgotten or overlooked,
those holding public office are unlikely to bring
their fiduciary obligations into consideration
when they are making their decisions
How can public servants uphold public trust?
A public office is not:
a vehicle for personal aggrandizement
a means to abuse of power
a private property
Public service is a public trust
To serve the public interest with fairness
To manage public resources properly on a
daily basis
Fair and reliable public services:
Inspire public trust
Create a favorable environment for
businesses
Public service ethics are a pre-requisite to,
and underpin public trust, and are a keystone
of good governance
Section 2. Impeachable Officials
1. President
2. Vice-President
3. Members of the Supreme Court
4. Members of the Constitutional Commissions
5. Ombudsman
Grounds for Impeachment
1. culpable violation of the Constitution
2. treason
3. bribery
4. graft and corruption
5. betrayal of public trust
6. other high crimes
What is the role of the House of Representatives?
The HRep shall have the exclusive power to
initiate all cases of impeachment
What is the role of the Senate?
The Senate shall have the sole power to try and
decide all cases of impeachment

Juzzys Reviewer

Impeachment Proceedings at the HOR

Limitation:
No impeachment proceedings shall be
initiated against the same official more than
once w/in a period of one year.
Power of the Senate
Sole power to try and decide all cases of
impeachment.
When sitting for that purpose, the Senators
shall be on oath or affirmation.
When the President of the Philippines is on
trial, the Chief Justice of the Supreme Court
shall preside, but shall not vote.
No person shall be convicted without the
concurrence of two-thirds of all the Members
of the Senate.
Penalty
Removal from office
Disqualification to hold any office under the
Republic of the Philippines
The party convicted shall nevertheless be liable
and subject to prosecution, trial, and
punishment, according to law.
RA 6713: Code of Conduct and Ethical Standards for
Public Officials and Employees (02/20/89)
Declaration of Policy
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.
"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.

Norms of Conduct of Public Officials and Employees

1. Commitment to public interest
2. Professionalism
3. Justness and sincerity
4. Political neutrality
5. Responsiveness to the public
6. Nationalism and patriotism
7. Commitment to democracy
8. Simple living
1. Commitment to Public Interest
To always uphold the public interest over
personal interest
To use govt resources and power of their
respective departments, offices and agencies
efficiently,
effectively,
honestly
and
economically.
2. Professionalism
To enter public service with utmost devotion and
dedication to duty
To perform and discharge their duties with the
highest degree of excellence, professionalism,
intelligence and skills
To discourage wrong perceptions of their roles as
dispensers or peddlers of undue patronage
3. Justness and sincerity
To remain true to the people at all times
To act with justness and sincerity and shall not
discriminate against anyone, especially the poor
and the underprivileged
To refrain from doing acts contrary to law, good
morals, good customs, public policy, public
order, public safety and public interest
Not to dispense or extend undue favors to
relatives except for appointments to confidential
and coterminous positions
4. Political Neutrality
To provide service to everyone without unfair
discrimination regardless of party affiliation or
preference
5. Responsiveness to the public
To extend prompt, courteous, and adequate
service to the public
To provide information on existing policies and
procedures in clear and understandable
language
To hold public consultations and hearings
whenever appropriate
To simplify and systematize policy, rules and
procedures to avoid red tape
To develop an understanding and appreciation
of the socio-economic conditions prevailing in
the country, especially in the depressed rural
and urban areas
6. Nationalism and patriotism
Juzzys Reviewer

To be loyal to the republic and to the Filipino

People
To promote the use of locally produced goods,
resources and technology
To encourage appreciation and pride of
country and people
To maintain and defend PH sovereignty against
foreign intrusion
7. Commitment to democracy
To commit to the democratic way of life and
values
To maintain the principle of public
accountability
To manifest by deeds the supremacy of civilian
authority over the military
To uphold the Constitution and put loyalty to
country above loyalty to persons or party
8. Simple living
To lead modest lives appropriate to their
positions and income
To not indulge in extravagant or ostentatious
display of wealth in any form
To not indulge in extravagant or ostentatious
display of wealth in any form.
Duties of Public Officials and Employees
1. Act promptly on letters and requests
W/in 15 working days from receipt
The reply must contain the action taken on the
request
2. Submit annual performance reports
W/in 45 working days from the end of the year
Such report shall be open and available to the
public w/in regular office hours
3. Process documents and papers expeditiously
Processed and completed w/in a reasonable as
far as practicable
Not more than 3 signatories
If a duly authorized signatory is absent, the
official next-in-rank or officer in charge shall
sign for and in his behalf
4. Act immediately on the publics personal
transactions
Attend to anyone who wants to avail himself of
the services of their offices and must.
Act promptly and expeditiously.
5. 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.
Prohibited Acts and Transactions
1. Financial and material interest

 Not to have, directly or indirectly, any financial

or material interest in any transaction
requiring the approval of their office.
2. Prohibited Acts and Transactions
Not to use or divulge, confidential or classified
information, either to:
further their private interests
give undue advantage to anyone; or
Prejudice the public interest.
3. Solicitation or acceptance of gifts
Not to solicit or accept, directly or indirectly, any
gift, gratuity, favor, entertainment, loan or
anything of monetary value.
As to gifts or grants from foreign governments, the
Congress consents to:
a gift of nominal value tendered and received
as a souvenir or mark of courtesy;
scholarship or fellowship grant or medical
treatment;
travel grants or expenses for travel outside the
Philippines
such
as
allowances,
transportation, food, and lodging provided
that the gifts are appropriate or consistent
with the Philippine interests of the Philippines,
and permitted by the head of office

Section 8. Statements and Disclosure

To accomplish and submit declarations under
oath of their assets, liabilities, net worth and
financial and business interests including those
of their spouses and of unmarried children
under 18 years of age living in their
households.
Who are covered?
All public officials and employees, except those
who serve in an honorary capacity, laborers
and casual or temporary workers.
What to file?
Statement of Assets, Liabilities and Net Worth
(SALN)
Disclosure of Business Interests and Financial
Connections
Incl. those of their spouses and
unmarried children under 18 yrs of age
living in their households.
What the SALN contain?
real property, its improvements, acquisition
costs, assessed value and current fair market
value;
personal property and acquisition cost;
all other assets such as investments, cash on
hand or in banks, stocks, bonds, and the like;
financial liabilities
What the Disclosure of Business Interests and Financial
Connections contain?
Juzzys Reviewer

Any existing interests in, or any existing

connections with, any business enterprises or
entities, whether as proprietor, investor,
promoter, partner, shareholder, officer,
managing director, executive, creditor, lawyer,
legal consultant, accountant, auditor, and the
like
The names and addresses of the business
enterprises or entities
The dates when such interests or connections
were established
Other related details
When to file?
New Appointee
Current Employee
Upon separation
(retirement, termination,
resignation)
Where to file SALN?
Who will file SALN?
President & VP of the
country, chairman and
commissioners of CCs
Senators
Congressmen
Judges of the RTC,
MCTC, M and SC

W/in 30 days after

assumption of office
On or before April 30, of
every year thereafter
W/in 30 days after
separation from the
service
Where to file?
Natl office of
Ombudsman

the

Sec-Gen of the Senate

Sec-Gen of HRep
SC Clerk of Court

Heads of GOCCs with original

chargers and subsidiaries and
SUCs; Offices of the AFP from
rank of colonel, or navy
captain

OP

Deputy Ombudsman

Regional offices and employees of

departments, bureaus and
agencies of the national
government, judiciary, and CCs
and GOCCs in the region.
Other officials and employees of
SUCs
Other officers of AFP below
colonel or navy captain and
civilian personnel
PNP regional officials and
employees
Provincial officials and employees
including governors, vice
governors and SP members

CSC

Municipal officials and employees

including mayors, vice mayors,
SB/P members and barangay
officials
All other officials and employees
of BGAs, judiciary, CCs/COs,
GOCCs and subsidiaries

Appointive officials and

employees of the legislature
All other central officers and
employees below colonel or naval
captain in rank, and civilian
personnel of AFP
All other U/NU central officials
and employees of PNO, BJMP, BFP

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 30 days from his assumption
of office, and/or divest himself of his
shareholdings or interest within 60 days from
such assumption.
A conflict of interest occurs when the official or
employee is:
A substantial stockholder; or
A member of the Board of Directors; or
An officer of the corporation; or
An owner or has substantial interest in a business;
or
A partner in a partnership.
A substantial stockholder is 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.
A voting trust means an agreement in writing
between one or more stockholders of a stock
corporation for the purpose of conferring upon a
trustee or trustees the right to vote and other
rights pertaining to the shares for certain periods
and subject to such other conditions provided for
in the Corporation Law.
Penalties
Who may be penalized?
Any public official or employee regardless of
the nature of employment
The Penalties
Violation of any provision of RA 6713
o Fine of up to 6 months salary, or
o 1 yr. suspension
o Removal from office, depending on the
gravity of the offense and after due
process by the appropriate body or
agency

Juzzys Reviewer

If violation is punishable by a heavier penalty

under another law, he shall be prosecuted
under the latter statute
Violations of Sections 7 (prohibited acts and
transactions), 8 (statements and disclosure) or
9 (divestment)
o up to 5 years imprisonment, or
o fine of up to P5,000, or both, and,
o Upon the discretion of competent
court, disqualification to hold public
office.
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.
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.
Systems of Incentives and Rewards
To motivate and inspire public servants to
uphold the highest standards of ethics.
The Committee on Awards for Outstanding
Public Officials and Employees shall be
organized to be composed of:
Ombudsman Co-Chairman
Chairman CSC Co-Chairman
Chairman COA Member
2 Government Members Employees to
be appointed by the President
Awards Criteria:
years of service
quality and consistency of performance
obscurity of the position
level of salary
unique and exemplary quality of a certain
achievement
risks or temptations inherent in the work
*Any similar circumstances or considerations
in favor of the particular awardee
1. Public Recognition
2. Incentives and rewards may take the form of:
bonuses, citations, directorships in GOCCs,
local and foreign scholarship grants, paid
vacations and the like.
3. Automatically promoted to the next higher
position with the commensurate salary
suitable to their qualifications.
4. 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.
Republic Act No. 1379 Forfeiture of Property
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 the
proceedings therefor.
June 18, 1955
A public officer or employee any person holding
any public office or employment, including in the
GOCCs, by virtue of an appointment, election or
contract
Legitimately acquired property any real or
personal property, money or securities which the
respondents has acquired by:
o Inheritance and the income
o Gift inter vivos before his becoming a public
officer or employee
o Any property (or income) already pertaining to him
when he qualified for public office or employment
o Fruits and income of the exclusive property of the
respondents spouse
Legitimately acquired property shall not include:
o Property unlawfully acquired by the respondent
but its ownership is:
Recorded in the name of the respondent's
spouse, ascendants, descendants, relatives,
or any other person.
Transferred by him to another person or
persons on or after the effectivity of this Act.
o Property donated to the respondent during his
incumbency but he cannot prove to the court
that the donation is lawful.
When is property presumed prima facie to have been
illegally acquired?
An amount of property and income earned
during the public officials incumbency which is
manifestly out of proportion to his salary.
Prima facie (accdg. to Free Online Dictionary)
At first sight; before closer inspection: They
had, prima facie, a legitimate complaint.
True, authentic, or adequate at first sight;
ostensible: prima facie credibility.
Evident without proof or reasoning;
obvious: a prima facie violation of the
treaty.
Judgment
Forfeiture of property in favor of the State
Conditions:
No judgment within six months before any
general election or within three months before
any special election.
Juzzys Reviewer

The Court may refer the case to the

corresponding Executive Department for
administrative or criminal action, or both.
Appeal
Decision may be appealed at the Court of First
Instance (now Regional Trial Court) as provided
in the Rules of Court for appeals in civil cases.
Penalties
Up to 5 years imprisonment, or PhP10,000
fine, or both.
The same repression shall be imposed upon
any person who shall knowingly accept such
transfer or conveyance.
The resignation, dismissal or separation of the
officer or employee from his office or
employment in the GOCC shall not be a bar to
the filing of the petition.
Republic Act No. 3019
Anti-Graft and Corrupt Practices Act
Aug. 17, 1960
Statement of policy:
in line with the principle that a public office is
a public trust, (the Act aims) to repress certain
acts of public officers and private persons alike
which constitute graft or corrupt practices.
Corruption
The illegitimate use of public power to benefit
a private interest.
The act of an official or fiduciary person
who unlawfully and wrongfully uses his station
or character to procure some benefit for
himself or for another person, contrary to duty
and the rights of others.
An action to secretly provide a good or a
service to a third party so that he or she can
influence certain actions which benefit the
giver/corrupt, the third party, or both.
Includes: bribery, extortion, cronyism,
nepotism, patronage, graft, embezzlement
Graft
A form of political corruption where a
politician unscrupulously uses his authority
for personal gain, e.g., intentionally
misdirecting public funds for private
benefits.
Embezzlement
The fraudulent conversion of another's
property by a person who is in a position of
trust, such as an agent or employee.
It may facilitate criminal enterprises such as
drug trafficking, money laundering, and human
trafficking.

Corrupt practices of Public Officers

Violation or offense against official duties of the
public officer
Requesting or receiving any gift, present, share,
percentage, or benefit in connection with any
contract or transaction with the Government
Requesting or receiving any gift, present, share,
percentage, or benefit to secure or obtain any
Government permit or license
Accepting employment for himself or a family
member in a private enterprise which has pending
official business with him
Causing any undue injury or giving any
unwarranted benefits to any private party in the
discharge of his official administrative or judicial
functions
Neglecting or refusing to act within a reasonable
time on any pending matter to obtain some
pecuniary or material benefit
Entering into any contract or transaction
manifestly and grossly disadvantageous to the
government whether or not the public officer
profited
Becoming interested in any business, contract or
transaction in which he is prohibited by the
Constitution or by any law
Becoming interested in any transaction or act
requiring the approval of a board, panel or group
of which he is a member, and which he exercises
discretion in such approval
Approving or granting any license, permit, privilege
or benefit to unqualified person
Divulging valuable information of a confidential
character to unauthorized persons, or releasing
such information in advance of its authorized
release date.
Prohibition on Private Individuals
Any person having family or close personal
relation with any public official to capitalize or
exploit it by requesting or receiving any gift from
any other person having some transaction 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.
Close personal relation" shall include close
personal friendship, social and fraternal
connections, and professional employment
which assures free access to such public officer.
Prohibition on Certain Relatives
Any relative, by consanguinity or affinity, within
the third civil degree, of the President of the
Philippines, the Vice-President of the Philippines,
Juzzys Reviewer

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.
Exceptions:
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.
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.
Prohibition on members of 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
To continue holding an interest in any business
30 days after the passage of or resolution
authored or recommended by him, continues
for thirty days after such approval to retain such
interest.
Penalty
(Based on BP 195 amending certain provisions of RA
3019 of 1989)
In violation of:
Section 3. Corrupt practices of public officers
Section 4. Prohibition on private individuals.
Section 5. Prohibition on certain relatives.
Section 6. Prohibition on Members of Congress
Penalties:
Imprisonment between 6 years and 1 month
and 15 years
Perpetual disqualification from public 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.
In Violation of:
Section 7. Statement of assets and liabilities.
Penalties:
a fine between P100-1,000
imprisonment not exceeding one year, or
By both such fine and imprisonment, at the
discretion of the Court.

 Failure to file SALN

1st offense
Suspension of 1 month and 1 day to 6 months.
2nd offense
Dismissal from service
Suspension and loss of benefits
Any public officer with pending criminal
prosecution in court under this Act or the
Revised Penal Code, shall be suspended from
office.
Convicted by final judgment, he shall lose all
retirement or gratuity benefits under any law.
If he is acquitted, he shall be entitled to
reinstatement and unpaid salaries and benefits
during suspension, unless in the meantime
administrative proceedings have been filed
against him.
Republic Act No. 7080 Plunder Law
An act defining and penalizing the crime of Plunder
July 12, 1991
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.
Government
includes
the
National
Government, and any of its subdivisions,
agencies or instrumentalities, including
government-owned
or
-controlled
corporations and their subsidiaries.
What is ill-gotten wealth?
any asset, property, business enterprise or
material possession of any person acquired by
him directly or indirectly through dummies,
nominees, agents, subordinates and/or
business associates
How ill-gotten wealth is acquired?
Through
misappropriation,
conversion,
misuse, or malversation of public funds or raids
on the public treasury;
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
any government contract or project or by
reason of the office or position of the public
officer concerned;
By the illegal or fraudulent conveyance or
disposition of assets belonging to the National
Government or any of its subdivisions,
agencies or instrumentalities or governmentowned or -controlled corporations and their
subsidiaries;
By obtaining, receiving or accepting directly or
indirectly any shares of stock, equity or any
Juzzys Reviewer

other form of interest or participation

including promise of future employment in any
business enterprise or undertaking;
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
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.
Who can be charged?
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 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.
Aggregate amount of ill-gotten wealth was
reduced to P50,000,000 by RA 7659 (AMLA);
punishable by reclusion perpetua to death (13
December 1993).
Who else can be charged? Penalty?
Any person who participated with said public
officer in the commission of plunder shall likewise
be punished according to 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.
Penalties: Suspension and Loss of Benefits
Any accused public officer whose criminal
prosecution is pending in court shall be
suspended from office.
If convicted, he shall lose all retirement or gratuity
benefits under any law.
If 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.

Bribery under the Revised Penal Code (RA 3815)

Bribery connotes the idea of a public officer
utilizing the power, influence or prestige of his
office for the benefit of an individual in exchange
for a consideration.
The two forms of bribery under the Revised Penal
Code (RPC)
Simple Bribery (Direct & Indirect)
Qualified Bribery
Essential elements of Direct Bribery
The offender is a public officer.
The offender accepts an offer or promise, or
receives a gift or present by himself or through
another:
with a view to committing some crime
an act does not constitute a crime but it is
unjust
to refrain from doing something which it is
his official duty to do
The act which the offender agrees to perform or
which he executes is connected with the
performance of his official duties.
Bribery exists when the gift is:
Actual receipt of the gift is not necessary. An
accepted offer or promise of a gift is sufficient.
However, if the offer is not accepted, only the
person offering the gift is liable for attempted
corruption of a public officer.
The gift must have a value or capable of
pecuniary estimation. It could be in the form of
money, property or services.
Bribery vs. Robbery
Bribery (210)
Robbery (294)
When the victim has When the victim did not
committed a crime and commit a crime and he is
gives money/gift to intimidated w/ arrest
avoid
arrest
or and/or prosecution to
prosecution
deprive him of his
personal property
Victim parts w/ his Victim is deprived of his
money or property money or property by
voluntarily
force or intimidation
Essential elements of Indirect Bribery
The offender is a public officer;
The offender accepts gifts offered to him;
The offer is made by reason of his office; and
The phrase by reason of his office means the
gift would not have been given if the receiver
were not a public officer.
The officer need not do any act as the gift is
either for past favors or to anticipate future
favors, or simply to impress or earn the good
will of the officer.
Juzzys Reviewer

The public officer has not yet done anything

not called for by the proper performance of his
official duties.

Essential elements of Qualified Bribery

The offenders are limited to officers entrusted
with law enforcement such as members of the
regular law enforcement agencies, as well as
those tasked to enforce special laws.
The offender refrains from arresting or
prosecuting an offender who has committed a
crime punishable by reclusion perpetua; and
The act is in consideration of any offer, promise
gift, or present.
Penalties of Direct Bribery
If the gift was accepted and the act was
accomplished by the public officer:
prision mayor (6 years and one day to 12 years)
a fine of not less than three times the value of
the gift
penalty corresponding to the crime agreed
special temporary disqualification.
If the gift was accepted but the act has not been
accomplished by the public officer:
prision correccional (6 months and one day to
6 years)
a fine of not less than twice the value of such
gift
special temporary disqualification.
If the gift was accepted or promised such that the
public officer shall refrain from doing his official
duty:
prision correccional to prision mayor
a fine of not less than three times the value of
such gift
special temporary disqualification.
*The penalties of direct bribery are applicable to
assessors,
arbitrators,
appraisal
and
claim
commissioners, experts or any other persons
performing public duties.
Penalties of Indirect Bribery
prision correctional (6 months and one day to 6
years)
Public censure.
Penalties of Qualified Bribery
Reclusion perpetua
Republic Act No. 9160
The Anti-Money Laundering act of 2001 (AMLA)
Salient Features of RA 9160

 It relaxes the bank deposit secrecy laws

authorizing the AMLC and the Bangko Sentral ng
Pilipinas access to deposit and investment
accounts in specific circumstances.
It requires covered institutions to report
covered and suspicious transactions and to
cooperate with the government in prosecuting
offenders.
It prohibits disclosure to the public of
confidential information contained in the
covered and suspicious transactions.
It establishes procedures for international
cooperation and assistance in the apprehension
and prosecution of money laundering suspects.
What is Money Laundering?
Money laundering is an act or series or
combination of acts whereby proceeds of an
unlawful activity, whether in cash, property or
other assets, are converted, concealed or
disguised to make them appear to have
originated from legitimate sources.
One way of laundering money is through the
financial system.
Why is Money Laundering a problem?
A threat to national security.
Allows criminals to preserve and enjoy the
proceeds of their crimes, thus providing them
with the incentives and the means to continue
their illegal activities.
Provides criminals the opportunity to appear in
public like legitimate entrepreneurs, enables
organized crime to destabilize governments
and undermine their financial systems.
14 Unlawful Activities covered by AMLA
1. Kidnapping for
8. Qualified theft
ransom
9. Swindling
2. Drug offenses
10. Smuggling
3. Graft and
11. Electronic
commerce
corrupt
crimes
practices
12. Hijacking,
destructive
4. Plunder
arson and murder,
5. Robbery and
including
those
extortion
perpetrated
against
6. Jueteng and
non-combatant persons
masiao
(terrorist acts)
7. Piracy on high
13. Securities fraud
seas
14. Felonies or offenses of a
similar
nature
punishable under penal
laws of other countries

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How is money laundered through Financial System?

1. Placement
It involves initial placement or introduction of
the illegal funds into the financial system.
Common methods of Placement:
Loan Repayment - Repayment of loans or credit
cards with illegal proceeds
Gambling - Purchase of gambling chips or placing
bets on sporting events
Currency Smuggling - The physical movement of
illegal currency or monetary instruments over
the border
Currency Exchanges - Purchasing foreign money
with illegal funds through foreign currency
exchanges
Blending Funds - Using a legitimate cash focused
business to co-mingle dirty funds with the day's
legitimate sales receipts
2. Layering
It involves a series of financial transactions
during which the dirty money is passed
through a series of procedures, putting layer
upon layer of persons and financial activities
into the laundering process.
The layering stage is the most complex and
often entails the international movement of
the funds.
The primary purpose of this stage is to
separate the illicit money from its source.
Sample layering method:
The money launderers may begin by moving
funds electronically from one country to
another, then divide them into investments
placed in advanced financial options or
overseas markets; constantly moving them to
elude detection; each time, exploiting
loopholes or discrepancies in legislation and
taking advantage of delays in judicial or police
cooperation.
3. Integration
The money is once again made available to the
criminal with the occupational and geographic
origin obscured or concealed to make it appear
that the money comes from legitimate
sources.
The laundered funds are now integrated back
into the legitimate economy through the
purchase of properties, businesses and other
investments.
Anti-Money Laundering Council (AMLC)
The AMLC is the Philippines financial
intelligence unit, which is tasked to implement
the AMLA.

 Composed of:
Chairman: Governor of BSP
Mems: Commissioner of the IC &
Chairman of SEC
Power of AMLC
Require and receive covered or suspicious
transaction reports from covered institutions.
Issue orders to determine the true identity of
the owner of any instrument or property that
is the subject of a covered or monetary
suspicious transaction report, and to request
the assistance of a foreign country if the
Council believes it is necessary.
Institute civil forfeiture and all other remedial
proceedings through the Office of the Solicitor
General.
Cause the filing of complaints with the
Department of Justice or the Ombudsman for
the prosecution of money laundering offenses.
Investigate suspicious transactions, covered
transactions deemed suspicious, money
laundering activities and other violations of the
AMLA.
Secure the order of the Court of Appeals to
freeze any monetary instrument or property
alleged to be the proceeds of unlawful activity.
Implement such measures as may be
necessary and justified to counteract money
laundering.
Receive and take action on any request from
foreign countries for assistance in their own
anti-money laundering operations.
Develop educational programs to make the
public aware of the pernicious effects of
money laundering and how they can
participate in bringing the offenders to the fold
of the law.
Enlist the assistance of any branch of
government for the prevention, detection and
investigation of money laundering offenses
and the prosecution of offenders. In this
connection, the AMLC can require intelligence
agencies of the government to divulge any
information that will facilitate the work of the
Council in going after money launderers.
Impose administrative sanctions on those who
violate the law, and the rules, regulations,
orders and resolutions issued in connection
with the enforcement of the law.
Covered Institutions
Banks, offshore banking units, quasi-banks,
trust entities, non-stock savings and loan
associations, pawnshops, and all other
institutions, including their subsidiaries and
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affiliates supervised and/or regulated by the

Bangko Sentral ng Pilipinas (BSP)
Insurance companies, holding companies and
all other institutions supervised or regulated
by the Insurance Commission (IC)
Securities
dealers,
brokers,
pre-need
companies, foreign exchange corporations,
investment houses, trading advisers, as well as
other entities supervised or regulated by the
Securities and Exchange Commission (SEC)
Customer Identification Requirements (Know your
customer rule)?
All CI Shall:
Establish and record the true identity of their
clients based on official documents.
Maintain a system of verifying the true identity
of individual clients.
Require a system of verifying the legal
existence and organizational structure, as well
as the authority and identification of corporate
clients.
Establish appropriate systems and methods
based on internationally compliant standards
Record-keeping Requirements?
All CI shall:
Maintain and safely store all records of all their
transactions for five years from the transaction
dates;
Ensure that said records/files contain the full
and true identity of the owners or holders of
the accounts involved in the covered
transactions and all other identification
documents;
Undertake the necessary adequate measures
to ensure the confidentiality of such files;
Prepare and maintain documentation, in
accordance
with
client
identification
requirements, on their customer accounts,
relationships and transactions such that any
account, relationship or transaction can be so
reconstructed as to enable the AMLC and/or
the courts to establish an audit trail for money
laundering;
Maintain and safely store all records of existing
and new accounts and of new transactions for
5 years from October 17, 2001 or from the
dates of the accounts or transactions,
whichever is later;
Anent closed accounts, preserve and safely
store the records on customer identification,
account files and business correspondence for
at least 5 years from the dates they were
closed;

 If a money laundering case based on any

record kept by the covered institution has
been filed in court, retain said files until it is
confirmed that the case has been finally
resolved or terminated by the court; and
Retain records as originals in such forms as are
admissible in court
Covered transactions?
Transaction in cash or other equivalent
monetary instruments involving a total
amount in excess of P500,000.00 within one
business day.
Suspicious Transactions
Transactions, regardless of the amount involved,
where the following circumstances exist:
There is no underlying legal or trade obligation,
purpose or economic justification;
The client is not properly identified;
The amount involved is not commensurate with
the business or financial capacity of the client;
Taking into account all known circumstances, it
may be perceived that the clients transaction is
structured in order to avoid being the subject of
reporting requirements under the Act;
Any circumstance relating to the transaction
which is observed to deviate from the profile of
the client and/or the clients past transactions
with the covered institution;
The transaction is in any way related to an
unlawful activity or offense under this Act that
is about to be, is being or has been committed;
or
Any transaction that is similar or analogous to
the foregoing.
Reporting Requirements
Covered institutions shall report to the AMLC
all covered transactions and suspicious
transactions within five working days from
occurrence thereof, unless the Supervision
Authority (the Bangko Sentral ng Pilipinas, the
Securities and Exchange Commission, or the
Insurance Commission) prescribes a longer
period not exceeding ten working days.
Should a transaction be determined to be both
a covered transaction and a suspicious
transaction, it shall be reported as suspicious
transaction.
How is reporting done?
The reports on covered and/or suspicious
transactions shall be accomplished in the
prescribed formats and submitted within five
business days from occurrence of the
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transactions in a secured manner to the AMLC

in electronic form, either via diskettes, leased
lines, or through internet facilities.
The corresponding hard copy for suspicious
transactions shall be sent to AMLC at the 5th
Floor EDPC Building, Bangko Sentral ng
Pilipinas Complex, Manila, Philippines. All
pawnshops should coordinate with the AMLC
thru tel. nos. 523-4421, 521-5662 or 302-3979
on reporting requirements, procedures and
deadlines.
Sanctions for failure to report suspicious transactions
or non-compliance
Sanctions/penalties shall be imposed on
pawnshops that will fail to comply with the
provisions of R.A. 9160, as amended.
Any person, required to report covered and
suspicious transactions failed to do so will be
subjected to penalty of 6 months to 4 years
imprisonment or a fine of not less than
P100,000.00 but not more than P500,000.00,
or both.
Confidentiality restricting on reporting of covered
transactions
Covered institutions and their officers and
employees are prohibited to communicate to
any person, entity, the media, about the
covered or suspicious transaction reports they
made.
Covered institutions shall 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, and
employee, of the covered institution, or media
shall be held criminally liable.
Offenses under AMLA
Failure to keep records
To maintain and safely store all records of
transactions for 5 years from the dates the
transactions were made or when the
accounts were closed.
Penalties
6 months to 1 year imprisonment or
fine of P100,000.00 P500,000.00 or
both
Malicious Reporting
Committed by any person who, with malice
or in bad faith, reports or files a completely
unwarranted or false information regarding
a money laundering transaction against any
person.
Penalties

6 months to 4 yearw imprisonment or

fine of P100,000.00 P500,000.00, or
both.
The offender is not entitled to the benefits of
the Probation Law.
Breach of Confidentiality
Penalties
3 to 8 yrs imprisonment
Fine of not less than 500,000.00 but not
more than P1M
In case the prohibited information is
reported by media, the responsible reporter,
writer, president, publisher, manager, and
editor-in-chief are held criminally liable.
Administrative offenses
The AMLC, after due investigation, can
impose fines from P100,000.00 to
P500,000.00 on officers and employees of
covered institutions or any person who
violates the provisions of the AMLA, as
amended, the Implementing Rules and
Regulations, and orders and resolutions
issued pursuant thereto.

Public Interest
What does the injunction serve the public
interest really mean and why is it important?
serving the public interest is at the heart
of public service, and the meaning public
managers give to public interest is a
function of their ongoing application of
democratic values and ethics, in present
and future time (Alexis Halley, 2004).
Common interest. General will.
The political science dictionary refers to it as
the aggregate of individual interest whatever
that is.
It is broad, vibrant, dynamic and ideally
inescapable and arguably vague, general,
abstract
and
inherently
ambiguous,
paradoxical, complex and compound (Catron,
2004).
The public interest may be presumed to be
what(people) would choose if they saw clearly,
thought rationally, acted disinterestedly and
benevolently (Walter Lippmann).
In an elected democratic polity, the public
interest is whatever the majority in Congress
or the president say it is.
The duty of public servants to pursue public interest
in 2 ways:

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To reflect on the different facets of public

interest through broad representation and
dialogue.
To engage genuinely the duties and values
associated with four aspects of public interest:
democracy, mutuality, sustainability and
legacy.
Public Interest
1. Democracy
2. Mutuality
3. Sustainability
4. Legacy

1.
2.
3.
4.
5.
6.
7.
8.

Focus
Theory
Method
Administrators role
Core problems
Core proscriptions
Core prescriptions
Illustrations

1. Democracy
Administration in the United States must at all
points be sensitive to public opinion
(Woodrow
Wilsons
the
Study
of
Administration, 1887).
As a public service duty, the public interest is
conceptualized more fruitfully as a process,
not as an objectively identifiable endpoint.
An elusive and sweeping obligation, it is a
never-ending process that is made more
meaningful by practice than by a product.
2. Mutuality
Mutuality in public interest is associated with
stewardship.
Stewardship:
Defined as the administrators willingness
and ability to earn the public trust by being an
effective and ethical agent in carrying out the
republics business (Kass, 1990:113).
Signifies the achievement of both
effectiveness and ethicality (Kass, 1990:129).
What distinguishes public service from other
endeavors?
The ethos of public service, so essential for the
spirit of democracy to flourish, can be realized
only if directed by a moral imperative bound to
the common good (Louis Gawthrop, 1998: xiii).
Statesman connotes a (person) whose mind
is elevated sufficiently above the conflict of
contending parties to enable (him or her) to
adopt a course of action which takes into
account a greater number of interests in the
perspective of a longer period of time
(Lippmann, 1929: 280).
1987 Preamble promote the common good
3. Sustainability

Public interest in the Future

Can public officials correctly said to have
obligations
to
future
generations?
(Frederickson, 1994).
We do not inherit the land from our ancestors,
we borrow it from our children (Native
American, Emerson).
The duty to serve the public interest also
requires us to anticipate the inescapable
tensions between current uses and future
needs and between private interests and
mutual interests.
4. Legacy
Pledge of Ancient Athens We will never bring
disgrace to this, our country, by any act of
cowardice..
Ethical Guideline for thinking about the Future
Aspects of Public Interest
1. Trustee Principle
Every generation has an obligation to protect the
interests of future generations.
2. Sustainability Principle
No generation should deprive future generations
of the opportunity for a quality of life
comparable to its own.
3. Chain of Obligation Principle
Each generations primary obligation is to
provide for the needs of the living and
succeeding generations, Near-term concrete
hazards have priority over long-term
hypothetical hazards.
4. Precautionary Principle
Actions that pose a realistic threat of
irreversible harm or catastrophic consequences
should not be pursued unless there is some
compelling, countervailing need to benefit
either current or future generations
Questions for Public Administrators
1. Which objective it is right to try to accomplish?
2. How well did you accomplish the objectives?
Answer to the second question matters but
only after the first is settled (Aaron Wildavsky,
1989: 787).
Conflict of Interest
A conflict between private and public interests
Equivalent to policy corruption, or overlap
between private and public benefits
Largely a perception issue. But perception is a
living issue; changes over time. What matters is
whether the public thinks you have done the
right thing
Sunshine Test
Onus
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It is an ethical issue. Whenever the official lacks

ethical standards there is potential risk of
conflict of interest.
It leads to corruption.
3 elements of Conflict of Interest
a private or personal interest, often a financial
interest;
official duty, or the duty one has because of
ones office or official capacity; and
interference with objective professional
judgment
Conflict of Interest: Occurs at 2 levels
1. at the policy level
Involves the state power of policymakers
2. at the operational level
Government officials seek private benefits
during performance of official duties.
Depends on opportunity and position.
Categories of Conflict of Interest
1. Self-dealing
Using ones official position to secure a private
benefit
2. Accepting benefits
Bribery
3. Influence peddling
Solicits benefits from a particular party in
exchange for using ones influence to unfairly
advance his interest.
4. Using the employers property for private advantage
5. Using confidential info
6. Outside employment or moonlighting
5 main factors that contribute to commission of
conflict of interest
1. Individual Factor
Comprises personal values, beliefs, attitudes,
and behaviour.
2. Economic Factor
Involves
the
officials
income
and
indebtedness
3. Social Factor
Societal values, moral and ethical framework,
position in society, patronage system and
nepotism, and role models among top leaders
and supervisors
4. Legal Factor
Comprising of rules and procedures,
opportunities to take advantage of conflicts of
interest would flourish in an environment with
outdated laws with legal loopholes or the

absence of the rule of law and an auditing

system.
5. Environmental Factor
Includes the organizational culture, and
expectations and traditional practices among
government officials.
Tools to manage Conflict of Interest in the Civil Service
1. A code of conduct setting out governments
commitment to ethical practices and the
managements expectations of ethical behavior of its
staff.
2. Clear guidelines with examples of what constitute
conflict of interest, and the procedures governing the
declarations.
3. Training and education to ensure the officers
understand the issues and follow the procedures.
4. The designation of an ethics or compliance officer to
ensure that staff follow the rules, and also to discuss
grey areas and dilemma situations with staff.
5. Effective disciplinary/criminal sanctions for noncompliance.
Role of Hong Kong ICAC Criminal Sanctions
1. Criminal Sanctions
Operations Department investigates all
corruption allegations
Department of Justice determines if
prosecution is warranted. The Operations
Department assists in the prosecution.
2. Ethical awareness
Community Relations Department educates
the public about the evils of corruption,
actively assists the Government in raising
ethical awareness in the civil service.
3. Transparent and accountable procedures
The Corruption Prevention Department
systematically reviews the practices and
procedures of government departments to
minimize the opportunities for corruption.
Whistleblowing as an Anti-Corruption Strategy
Weakness of Anti-corruption initiatives
weak enforcement of anti-corruption laws
weak capacity and coordination of anticorruption agencies
low social awareness of and high tolerance for
corruption
need to institutionalize government-businesscivil society collaboration
Need
to
strengthen
integrity
and
accountability
in
government-business
transactions.
Juzzys Reviewer

*To address the weaknesses in existing anti-corruption

strategies, organizational insiders or people with
credible information must be encouraged to report
corrupt practices that primarily occur in organizational
settings.
Definitions of Whistleblowing
Disclosure by former or current members of
the organization of illegal, immoral or
illegitimate practices under the control of their
employers, to persons or organizations that
may be able to effect action (Miceli and Near,
1992).
Deters misconduct by increasing the possibility
of detecting bribery and corruption and
punishing its perpetrators.
Viewed as a form of ethical informing, which is
motivated by the desire to protect and
promote the public interest.
Characteristics of Whistleblower
Whistleblowers tend to share a belief of
absolute moral standards, a strong sense of
individual responsibility, and a fierce
commitment to upholding moral principles.
(Jos1989: 558).
Their sense of moral standards overrides the
benefit-costs calculations of whether or not to
blow the whistle.
They want to correct or terminate a
wrongdoing that they
observed in
organizational settings.
Sometimes, they are lone voices of reason,
morality, and truth who speak out to protect
the public from harm.
Sometimes, they are viewed negatively,
labeled as disloyal or disgruntled
employees.

Element
Descriptor
Elaboration
Action
A disclosure
Deliberate,
non-obligatory
Actor
A person who Present
or
privileged access to former
an organizations member of the
data or information organization
Target
About illegality or Non-trivial,
wrongdoing
actual. Suspect,
potential,
under
organizational
control
Subject
Implicated the org
Recipient
To an External Having
authority
potential
to

remedy
wrong
Outcome

the

On public record

Important wrongdoing is diff from a trivia one by the:

# of people affected
The amount of money involved
The seriousness of the consequences
Voluntary and role-prescribed whistleblowing
Voluntary whistleblowing involves the
individuals voluntary reporting of an observed
wrongdoing.
Role-prescribed whistleblowing is exercised by
adhering to the professional codes or specified
duties of employees to report a wrongdoing.
Whether
prescribed
or
voluntary,
whistleblowing ultimately depends on the
individuals willingness to report a
wrongdoing.
Whistleblowers Cross
JOB HARASSMENT
demotion and
suspension
prejudicial reassignment
close monitoring by
supervisors
negative performance
appraisals
undue disciplinary
actions
adverse decisions
concerning
promotion, pay, benefits

UNEMPLOYMENT
blacklisting from
other jobs
determination that an
employee or applicant
is unfit for duty
Termination from
employment

OSTRACISM
undue criticism by
coworkers
undue avoidance by
coworkers
other adverse actions
that
affect work
performance

THREAT TO SECURITY
civil, administrative,
criminal cases
death threats to
whistleblower and his
or her family and
immediate relatives
revocation of
security clearance

Internal and External Whistleblowing

Internal Channels
Organizationally sanctioned mechanisms that
receive and act on disclosures of wrongdoing.
employee grievance committees
compliance and governance officers
internal auditors, supervisors
resident Ombudsmen
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External Channels
Can either be persons or offices which are
given formal authority to act and respond to
whistleblowers disclosures or not.
Consist of public authorities like the Securities
and Exchange Commission, Office of the
Ombudsman, and Civil Service Commission,
etc.
Also include the media, private sector, and
civil society organizations.
Whistleblowing generally follows a hierarchy
of appropriateness where employees would
prefer to blow the whistle first to internal
channels, then to public authorities, and
lastly, to media.
A model of the Whistleblowing Process

A model of Reporting Questionable Acts

Individual Variables that affect the Outcome of

Whistleblowing

Situational Variables that affect the outcome of

Whistleblowing

Frameworks on Whistleblowing Effectiveness

Procedural Justice
Members of the organization will perceive that
there is procedural justice when the
whistleblower follows fair reporting
procedures, probably reporting the wrongdoing
through internal channels than making it public
knowledge by reporting it to some outside
agency or the media.
Distributive Justice
The whistleblower will be satisfied with the
outcome of his/her whistleblowing when the
organization corrected or terminated a
wrongdoing and did not retaliate against him or
her.
Power-relations framework
Views whistleblowing as an influence process
that affects the balance of power within an
organization.
The whistleblower tries to convince the
members of the organization or its dominant
coalition to change an existing practice
because it constitutes a wrongdoing.
The organization can either terminate or
continue with the challenged practice,
depending on how powerful or influential the
whistleblower is in the organization.
Organizational Benefits of Whistleblowing
early identification of conduct needing
correction;
early identification of weak or flawed systems
which make the organization vulnerable to
loss, criticism, or legal action;
avoidance of substantial financial losses;
maintenance of a positive corporate
reputation;
Juzzys Reviewer

elimination of a risk to the health and safety

of the employees or the community;
maintenance of a positive record on
environmental protect;
Improved focus on accountability of managers
and staff.
Societal Benefits of Whistleblowing
stopping wrongdoings;
stopping other people from being disadvantaged
by the wrongdoing;
preventing danger to the health and safety of the
people;
preventing serious damage to the environment;
creating an opportunity to put better work
procedures into practice which can prevent
wrongdoing in the future;
Bringing to justice the people responsible for
wrongdoing.
Legislative proposal on Whistleblowing
(13th Congress)
Rewards system for informants and witnesses
(HB 326 authored by Rep. Imee Marcos)
Philippine Informants Act (HB 2388 authored by
Rep. Mikee Macapagal-Arroyo)
Whistleblower Protection Act of the Philippines
(HB 3948 authored by Rep. Raul Gonzalez Jr.)
Informers and Anti-Corruption Witnesses
Protection Act (HB 4248 authored by Rep.
Henedina Abad)
Whistleblower Act (HB 4448 authored by Rep.
Teodoro Casio)
Watchdog Act (SB 38 authored by Senator Juan
Flavier)
Whistleblower Protection Act (SB 1685 authored
by Senator Miriam Defensor-Santiago)
False Claims Act (SB 1713 authored by Senator
Miriam Defensor-Santiago)
Informers and Anti-Corruption Witnesses
Protection Act (SB 1761 authored by Senator
Mar Roxas)
The bills shared common approaches to encourage
whistleblowing as follows:
defining the types of disclosures that deserve
legal protection
establishing mechanisms to protect
whistleblowers from reprisals
providing incentives for reporting wrongdoing
prescribing procedures for disclosures of
wrongdoing
specifying the entities for receiving and acting
on disclosures
establishing support structures and programs
for policy implementation

penalizing violations of the rights and

obligations of parties to whistleblowing

Recommendation to Enhance Whistleblowing

Achieve overall system satisfaction.
Improve legal standards on protected
whistleblowing.
Reduce the costs of whistleblowing.
Create effective societal and organizational
structures.
Promote role-prescribed whistleblowing.
Enhance whistleblowing skills.
Corruption
(Negative Bureaucratic Behavior)
The Philippines does not need a foreign invader to
destroy it. The officials in government are already
doing a good job in causing the nations our heroes
fought for so dearly to ultimately perish.
Corruption Defined
Defining corruption can be a challenge.
Corruption is the misuse of public power for
private gain (Pope, 2000:2).
C = M + D A (Klitgaard, 1998)
Where:

M Monopoly
D Discretion
A Accountability

C = M + D A (Klitgaard, 1998)
Monopoly of power by agents over clients (e.g.
customs officers over traders/taxpayers);
Discretionary decision power over provision of
services from the side of the agents
Low level of accountability of agents in front of
principals.
C = M + D A I - T (UNDP modification)M = monopoly
D = discretion
A = accountability
I = integrity
T = transparency
Corruption refers to the misuse of public power,
office or authority for private benefit through
bribery, extortion, influence-peddling, nepotism,
fraud, speed money or embezzlement (UNDP,
1999: 7).
Corruption is applicable in both the public and
private sectors.
Political Corruption
Public officials act in a corrupt manner for a very
simple reason: they perceive that the potential
benefits of corruption exceed the potential costs
(Rose-Ackerman, 1978).
An individual will rationally choose being corrupt if
the benefits of corruption minus the probability of
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being caught times the penalties of being caught

are greater than the benefits of not being corrupt
(Klitgaard, 1988: 70).
C = (BENEFITcorrupt PROBABILITYcaught) x
PENALTYcaught > BENEFITnotcorrupt
3 Types of Political Corruption (Heidenheimer)
Public office centered definition
Market centered definition
Public interest centered definition
1. Public office centered definitions
Consider corruption as deviation from legal
and public duty norms for the purpose of
private gain.
Violation of existing laws, e.g., RA 3019, RA
6713, RA 3815, RA 7080, etc.
2. The Market Centered View
Characterizes corruption as part of the rational
utility maximizing behavior of public officials.
Corruption reduces the uncertainty in the
investment climate by making government
response predictable.
Corruption also serves as important source of
capital formation to the extent that ill-gotten
wealth will be channeled into the investment
market by the officials receiving it.
Scarcity of supply vs. high demand for service
Bribes are paid for two reasons:
to obtain government benefits, e.g., special
or speedy service
to avoid costs
3. Public interest definitions
View corruption as betrayal of some broad
public interest.
Types of Corruption According to the United Nations
Convention against Corruption (UNCAC)
1. Bribery takes place when a person with authority
accepts or solicits a bribe to exercise a function in a
particular way.
2. Kickback is similar to a bribe but usually refers to a
payment given in return for receiving a contract, which
is kicked back to someone involved in awarding the
contract.
3. Trading in influence or influence peddling which is
a form of bribery.
Typically perpetrated by persons in prominent
positions or with political power or connections in
exchange for money or an undue advantage.
Types of Corruption According to the United Nations
Convention against Corruption (UNCAC)
4. Illicit enrichment refers to a situation in which
officials cannot explain their wealth in relation to the
income they lawfully earn. The unexplained wealth

may
come
from
bribery,
embezzlement,
misappropriation, concealment of property, money
laundering or false accounting.
Eight Types of Corruption in the Philippines
(Philippine Center on Transnational Crime)
1. tax evasion
2. ghost projects and payrolls
3. evasion of public bidding in awarding of
contracts
4. passing of contracts
5. nepotism and favoritism
6. extortion
7. protection money
8. bribery
Levels of Corruption
1. Grand corruption
Refers to the misuse of public power by heads
of state, ministers and top officials for private,
pecuniary profit (Moody-Stuart, 2997: 2).
Typically takes place at the top levels of the
public institutions involving top/senior officials
where policies and rules are formulated and
executive decisions are made.
Often involves large sums of money.
Also known as political corruption to refer
generally or specifically to the negative
influence of money in political campaigns and
political parties.
2. Petty corruption
Practiced by underpaid junior or civil servants
who demand bribes from the public to
expedite transactions or perform other favors.
Small
scale,
administrative,
everyday
corruption that takes place at the
implementation end of politics, where public
officials meet the public.
Most commonly found as bribery in
connection with the implementation of
existing laws, rules and regulations, or in abuse
of power in daily situations.
It usually involves modest sums of money in
any given exchange.
Endemic petty corruption
When corruption results in great costs and
places serious stress on the functioning of
state systems, in a way comparable to grand
corruption.
There is not a clear division between where
petty corruption ends and grand corruption
begins.
Historical Roots of Corruption
A. Pre-Spanish Colonial Period: Before 1520s
Juzzys Reviewer

Filipinos traded with Chinese traders honestly

and fairly.
Datus selected more on the basis of common
acceptance by all rather by wealth and power
through consultations and pacts.
Non-performing leaders were replaced.
B. Spanish Colonial Period: 16th-19th Centuries
Spanish king considered public office as his
personal property which could be disposed of
through award, sale, and bid; income thereof
was transmitted to the colonial coffers.
C. American Period
Widespread corrupt practices during the
American period were not noted
Civil Service Commission established in 1900
through Act No. 5
D. Japanese Occupation
Meritocracy was not in effect during the
Japanese period.
Time, force, coercion and death encourage
treason and loyalty to the Japanese army such
that notions of loyalty and service became
corrupted.
Loyalty, nationalism and truthfulness meant
punishment while treason and betrayal would
bring rewards by the Japanese colonizers.
E. Post-Colonial Period
Widespread corruption contributed to the
spread of the Huk insurgency in the 1940s and
1950s.
Public office had been a self-serving
opportunity rather than an honorable position
of service undertaken by those possessing
merit and qualifications.
After WW II, the bureaucracy in the Philippines
suffered from low prestige, incompetence,
meager resources, and a large measure of
cynical corruption (Corpuz, 1957)
During the administration of President Elpidio
Quirino, corruption was perceived to have
permeated the entire gamut of the Philippine
bureaucracy, extending from the lowest level of
the civil service to the top, excepting the
President himself (Alfiler, 1979: 323).
1969 Phil Ethnic Group Attitude Surveys
conducted among 1,381 respondents showed
that:
o 66% believed graft and corruption were
prevalent and constituted a major problem
o Which officials are corrupt?
politicians 38% of the respondents
government employees 36% of the
respondents
local politicians 22% of the respondents
F. Marcos regime

 Administration was marred by allegations of

corruption, sequestration of privately owned
businesses.
State monopolies
Cronyism
Corruption was not only endemic to the
Philippine politics, but the more serious
problem was the widespread assumption that
corruption is unavoidable (Timberman, 1991:
25).
US congressman Stephen Solarz described the
level of corruption in the Philippines as
kleptocracy (Timberman, 1991: 25).
Grand corruption under the Marcos regime
ranged from theft of foreign and military aid to
the domestic system of crony capitalism and
required an extensive use of money laundering
devices (Chaikin and Sharman, 2009)
Causes of Corruption
1. Low salaries (starvation wages Quah, 2010)
2. Excessive red tape and inefficiency of the civil
service
In 2009, the WB reported that:
Starting a business 15 procedures, 52
days, ranked 155/181 countries
Construction permit 24 procedures, 203
days, ranked 105/181 countries
Registering property 8 procedures, 33
days, ranked 97/181 countries
Some Improvements in the World Economic
Forum (WEF)s Global Competitiveness Index
Ranked 47th among 140 economies in 20152016
52nd among 144 countries in 2014-2015
59th in 2013-2014
The WEF competitiveness ranking is measured
based on how institutions, policies and other
factors affect the level of productivity of a
country.
Got the highest ranking in terms of
macroeconomic environment, market size and
business sophistication.
Lagged in terms of infrastructure, labor market
efficiency and goods market efficiency.
3. Low risk of detection of corrupt offenses and the low
probability of punishment for corrupt offenders
Corruption thrives in a country where it is
perceived to be a low risk, high reward activity.
Sanctions were inconsistently imposed in the
Philippines with draconian punishment being
meted out for relatively minor infractions and
major crimes receiving lenient treatment
particularly when they are committed by the rich,
the powerful and the politically well-connected.
Juzzys Reviewer

A person found committing a corrupt offense in

Hongkong is 33 times more likely to be detected
and punished than his counterpart in the
Philippines.
Hongkongs ICAC (Independent Commission
Against Corruption) successfully prosecuted 8.34
cases per 10,000 civil servants compared with
0.25 per 10,000 in the Philippines in 1997.
4. Importance of family and cultural value of utang na
loob (debt of gratitude)
5. Lack of political will
Political will is the use of power one has to
effect changes desired by society (Carino,
1994: 115-118).
6. Limitations in administrative capacity
6 Reasons for lack of political will in curbing
corruption
1. The decentralization of power was not
accompanied by regular monitoring and
evaluation of subordinates performance.
2. The inability of the political elite and senior
civil servants to distinguish between public
needs and private interests resulted in many
conflicts of interest.
3. Officials were not punished for their failure to
perform their duties.
4. Political will was lacking as there was unequal
or selective enforcement of the laws.
5. Political will did not exist as pronouncements
were not followed by actions.
6. Political will was absent as adequate
manpower and funds were not provided for
the implementation of anti-corruption
measures.
Administrative Causes of Corruption (Tony Kwok)
1. Opportunity lack of system control
2. Attitude low ethical value
3. Pressure low salary, peer pressure
4. Low risk or lack of deterrence
Effects on Individual
1. Low salary provides an excuse for engaging in
corruption.
But corruption occurs both at the low and high
levels of the government.
2. Corruption finances selfish urges of an individual
beyond his legitimate means.
Effects on the Organization
1. On Personnel Satisfaction and Morale
Nepotism and spoils for employees who know
and are loyal to the appointing authority.
If corruption is systemic, it serves as a salary
augmentation scheme, except those who do

not belong, who feel distrusted and ostracized

by many.
2. On Fiscal and Material Resources
Increases the cost of administration
Mismanagement through abuse of powers,
awarding of contracts without tenders,
unvouchered payments, audit suspicion on
irregular purchases of stocks, etc.
But corruption can sometimes produce
augmentation of organizational resources.
3. On Structure of Authority and Rules
The presence of a corruption syndicate may
create two parallel lines of authority, one for
the legal transactions, the other for the
corruption ventures.
4. On Organizational Performance
help an organization reach its goals. Corruption
does not
Displaces goals as employees pursue their own
pecuniary interests rather than the objectives
of the organization.
Staff spend more time pursuing their corrupt
business interests.
5. On efficiency
Employees receiving money will work
efficiently.
Speed and efficiency will not be received by all
customers.
Speed money spells the difference between
getting the service or not.
6. On Organizational Rationality
Imperils organizational rationality as defined
by Max Weber
Effects on Society
1. On revenues and other funds for government
expenditures
Loss of government revenues
Resorting to foreign sources of funds
Policy distortion
Corruption and a better economy
None of the case studies shows that the money
raised through corruption was directly and
productively invested economic development
and growth have been possible mainly because
the majority of the officials were judiciously and
faithfully implementing the development goals of
the government without pursuing private gains
and aggrandizement
2. Consequences for Political Development
Corruption stabilizes the system as it provides an
alternative to violence.
Ex. Hongkong Chinese whose dissatisfaction with
the English-run system was alleviated by bribery
to escape jail
Juzzys Reviewer

Corruption is a type of people-directed

exploitation that cannot contribute to the stability
of the nation.
Citizens citing corruption as a source of national
shame and growing lack of confidence in their
countries.
Corruption is a potent cry of opposition leaders
and coup plotters.
Legal Measures to Control Corruption (PCTC)
1. Article XI of the 1987 Philippine Constitution,
titled Accountability of Public Officers.
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 and efficiency, act with
patriotism and justice, and lead modest lives
President, Vice-President, members of the
Constitutional Commissions and the Ombudsman
may be removed from office on impeachment for
bribery and graft and corruption.
2. Republic Act No. 3019 also known as the Anti-Graft
and Corrupt Practices Act of 1960
Enumerates all corrupt practices of any public
officer, declares them unlawful and provides the
corresponding penalties of:
imprisonment (between 6-15 years)
perpetual disqualification from public office,
and
Confiscation or forfeiture of unexplained
wealth in favor of the government.
3. Executive Order No. 292 or the Administrative Code
of 1987
This order reiterates the provisions embodied in
Section 1, Article XI of the 1987 Constitution.
It also gives the President the power to institute
proceedings to recover properties unlawfully
acquired by public officials and employees.
4. Republic Act No. 6713 also known as the Code of
Conduct and Ethical Standards for Public Officials and
Employees of 1989.
It promotes a high standard of ethics.
It requires all government personnel to make an
accurate statement of assets and liabilities,
disclose net worth and financial connections.
It also requires new public officials to divest
ownership in any private enterprise within 30 days
from assumption of office to avoid conflict of
interest.
Norms of Conduct of Public Officials and Employees
1. Commitment to public interest
2. Professionalism
3. Justness and sincerity
4. Political neutrality

5.
6.
7.
8.

Responsiveness to the public

Nationalism and patriotism
Commitment to democracy
Simple living

5. Republic Act No. 6770 also known as the

Ombudsman Act of 1989
6. Republic Act No. 7055 also known as An Act
Strengthening Civilian Supremacy over the Military
This law creates two avenues for trying erring
members of the Armed Forces of the Philippines
and other members subject to military laws.
Crimes penalized by the Revised Penal Code and
other special penal laws and local government
ordinances shall be tried in civil courts.
Military courts shall take cognizance of serviceoriented crimes only.
7. Republic Act No. 7080 also known as the Act Defining
and Penalizing the Crime of Plunder
This act penalizes any public officer who by
himself or in connivance with members of his
family, relatives by affinity or consanguinity,
business associates, accumulates or acquires illgotten wealth, through a combination of series of
event criminal acts, an aggregate amount to total
value of at least fifty million pesos (P50,000,000).
8. Republic Act No. 8249 also known as the Act Further
Defining the Jurisdiction of the Sandiganbayan
9. Revised Penal Code (Title 7, Chapter 2, Section 2, and
Articles 210-212). Bribery.
10. Republic Act No. 9485. Anti-Red Tape Act of 2007.
11. Republic Act No. 10365. Anti-Money Laundering
Act.
Presidential Anti-Corruption Agencies in the
Philippines (1950-2009)
Integrity Board
Quirino
1950
Presidential
Magsaysay
1953-1985
Complaints and
Action Committee
Presidential
Garcia
1960-1961
Comm.
On
Administrative
Performance
Efficiency
Presidential Anti- D. Macapagal 1962-1966
Graft Committee
Institutional Measures to Control Corruption (PCTC)
1. The Office of the Ombudsman (OMB)
The Office of the Ombudsman investigates
and acts on complaints filed against public
officials and employees, and serves as the
peoples watchdog of the government.
Juzzys Reviewer

Five major functions:

Investigation
Administrative adjudication
Prosecution
Public assistance
Graft prevention

List of Government Agencies with Most Number of

Cases Filed in the OMB in 2013
1. Local government units (2,104)
2. Philippine National Police (1,312)
3. Armed Forces of the Philippines (246)
4. Department of Environment and Natural
Resources (156)
5. Department of Education (117)
6. Department
of
Agriculture
(108)
Department of Agrarian Reform (108)
Bureau of Fire Protection (108)
7. Bureau of Customs (76)
8. Department of Finance (74)
9. State Universities and Colleges (56)
10. Bureau of Jail Management and Penology (53)
Lifestyle Check
Introduced by the Arroyo administration in
October 2002 on all government officials,
military and police.
Focused on four areas:
Behavioral leisure habits
Asset value
Check on relative checking of relatives who
could have gained employment through the
officials influence
Conflict of interest
Lifestyle Check: Tell-Tale Signs of a Corrupt
Bureaucrat in the Philippines
How to tell if a public official or bureaucrat bas
amassed wealth disproportionate to his declared
sources of income:
Has multiple families or mistresses
Frequently gambles in casinos and cock-fighting
pits
Maintains high-cost vices such as taking illegal
drugs
Goes on frequent foreign trips
Owns country club shares
Patronizes expensive restaurants and nightclubs
Sends children to exclusive schools with expensive
tuition
Buys additional houses or other real estate
Owns a large number of stocks
Has huge bank deposits
Has a big collection of jewellery, antiques or
paintings

2. CSC
The CSC is the central personnel agency of the
government which is mandated to establish a
career service and promote moral, efficiency,
integrity, responsiveness, progressiveness, and
courtesy in the civil service.
It shall also strengthen the merit and rewards
system, human resource development, and public
accountability.
It has jurisdiction over administrative cases
including graft and corruption brought before it on
appeal.
3. COA
The COA is the watchdog of the financial
operations of the government.
It is empowered to examine, audit, and settle all
accounts pertaining to the revenue and receipts of,
and expenditures or uses of funds and property
under the custody of government agencies and
instrumentalities.
It shall promulgate accounting and auditing rules
and regulations for the prevention and
disallowance of irregular, unnecessary, excessive,
extravagant, or unconscionable expenditures, or
use of government funds and properties.
4. The Sandiganbayan
The Sandiganbayan is the anti-graft court of the
Philippines.
It has jurisdiction over civil and criminal cases
involving graft and corrupt practices and such
other offenses committed by public officers and
employees.
It is in charge of maintaining morality, integrity
and efficiency in the public service.
5. DOJ
The DOJ conducts preliminary investigations on
complaints of a criminal nature against public
officials that are filed with the Department,
subject to the approval of the OMB if the offense
investigated was committed by the public official
in relation to his office.
The DOJ also prosecutes in these cases if the
public officials involved belong to ranks lower
than salary grade 27.
6. NBI and PNP
These law enforcement agencies conduct factfinding investigations on graft cases.
They conduct entrapment operations which, if
successful, results in the arrest and filing of
criminal complaint against the perpetrators in the
courts.
Juzzys Reviewer

It may issue subpoena and serve warrants of

arrest issued by the courts.
The NBI agent or policeman who conducted the
investigation also acts as witness for the
prosecution
during
journal
preliminary
investigation and the prosecution of the case by
the Ombudsman.
Nine-Point Approach to Fighting Corruption in the
Philippines (WB, 2000)
1. Reduce opportunities for corruption by policy
reforms and deregulation
2. Reform campaign finance
3. Increase public oversight
4. Reform budget process
5. Improve meritocracy in civil services
6. Target selected departments and agencies
7. Enhance sanctions against corruption
8. Develop partnerships with private sector
9. Support judicial reform
10.
Seven Recommendations for Implementing an
Anticorruption Program
1. Appoint strong leadership and management
2. Set up multisectoral advisory group
3. Develop a sequenced action program of
priorities chosen from the nine-point
anticorruption strategy
4. Launch programs immediately in priority
agencies
5. Upgrade capacity in anticorruption institutions
6. Launch joint intergovernmental and interinstitutional efforts
7. Seek donor assistance for the government's
anticorruption program
Reform Framework for Anti-Corruption