Office of the Solicitor General

134 Amorsolo St., Legaspi Village, Makati City

OSG Bill
House Bill No. 5233
Senate Bill 1409
Annotated

Krezza Gem Macalintal

Sarah Joy Luzon
Joss Pilapil
Christian Gerard Lee
Glyssa Camille Soriano
Grant Mesa

1
 SECTION 1. Short Title. – This act shall be known as the “OSG
Charter.” (n)

By virtue of House Bill 5223 and Senate Bill 1409, all the existing laws
relating to the Office of the Solicitor General (OSG) are consolidated. Moreover,
additional powers and functions are granted to the OSG. This Charter transfers the
powers of the Office of the Government Corporate Counsel (OGCC) and the
Presidential Commission on Good Government (PGCC) to the OSG, which will now
be under the Office of the President for budgetary purposes.

SECTION 2. Declaration of Policy. – It is the declared policy of the

State to strengthen the Office of the Solicitor General (OSG) in order to
effectively and efficiently fulfill its mandate as the law office of the
Government of the Republic of the Philippines representing the
Government, its departments, bureaus, agencies, and instrumentalities,
and its officials and agents in their official capacity, in any litigation,
proceeding, investigation or matter requiring the services of lawyers.

It is also the policy of the State to ensure efficiency and economy in

the operations of government, eliminate the overlapping functions,
consolidate the legal services in the government into one office, effectively
address the expanding needs of the government-owned and –controlled
corporations (GOCCs) towards the improvement of fiscal management and
good corporate governance, and concentrate and enhance government
efforts for the full and effective recovery of ill-gotten wealth and
properties, including the efficient investigation and prosecution of cases
related thereto. Towards this end, the Office of the Government Corporate
Counsel (OGCC) and the Presidential Commission on Good Governance
(PCGG) are hereby abolished and their respective powers and functions are
transferred to the OSG.

With the transfer of powers and functions of the OGCC and the PCGG
to the OSG, and to ensure the efficient and effective legal representation of
the Government, its departments, bureaus, agencies, and
instrumentalities, GOCCs, and its officials and agents in their official
capacity, members of the legal and administrative staff of the OSG shall be
increased and their positions upgraded to adequately meet the Republic’s
burgeoning need for legal services. The required skills of OSG lawyers shall
be improved, the benefits of employees augmented, and their welfare
enhanced. Academic growth and the honing of legal and communications
expertise shall be encouraged. (n)

The OSG is the law firm of the Republic of the Philippines. It is tasked to
represent the People of the Philippines, the Philippine Government, its agencies and
instrumentalities, officials and agents in any litigation or matter requiring the
services of a lawyer.1 Through the OSG Charter, the OSG is strengthened for the
effective and efficient fulfillment of its mandate as the largest law office of the
Government.

Apart from bolstering the powers and functions of the OSG, it is also the aim
of the Charter to address the needs of the GOCCs for efficient fiscal management
and corporate governance. Likewise, it will help in the effective recovery of the ill-
gotten wealth and properties.2 In absorbing the powers and functions of the OGCC,
the OSG will be able to achieve the said efficiency and economy.

1
Office of the President, Instituting the Administrative Code of 1987, Executive Order No. 292 [E.O. No. 292] (July
25, 1987).
2
OSG Position Paper, p. 28.

2
 Further, this Charter establishes an increase in the scope of Capacity
Development within the OSG. The administrative staff is to be provided with
training as authorized by the Solicitor General.3 Upon abolition of PCGG and OGCC,
their budget will augment whatever increase in budget the OSG Bill entails.4

SECTION 3. Definition. – For the purpose of this Act, the term –

(a) “Capacity development” shall refer to the process whereby the OSG,
as an organization, systematically stimulates and develops its capability
over time to achieve development goals while enhancing its abilities to
achieve measurable and sustainable results, through improvement of
knowledge, skills, and systems.

(b) “GOCCs” shall refer to government-owned and –controlled

corporations, their subsidiaries, other corporate offsprings, including
government-acquired asset corporations, government corporate entities
and government instrumentalities with corporate powers, government
financial institutions, and other corporate entities, agencies and offices.

(c) “Ill-gotten wealth” shall refer to any asset, property, business

enterprise or material possession of persons within the purview of
Executive Orders Nos. 1 and 2, s. 1986, acquired by them directly, or
indirectly through dummies, nominees, agents, subordinates, and/or
business associates by any of the following means or similar schemes:

(1) Through misappropriation, conversion, misuse, or

malversation of public funds or raids on the public treasury;
(2) Through the receipt, directly or indirectly, of any
commission, gift, share, percentage, kickbacks, or any other
form of pecuniary benefit from any person and/or entity in
connection with the government contract or project or by
reason of the office or position of the official concerned;
(3) By the illegal or fraudulent conveyance or disposition of
assets belonging to the government or any of its subdivisions,
agencies or instrumentalities, or GOCCs;
(4) By obtaining, receiving, or accepting directly or indirectly
any shares of stock, equity, or any other form of interests or
participation in any business enterprise or undertaking;
(5) Through the establishment of agricultural, industrial, or
commercial monopolies or other combination and/or by the
issuance, promulgation, and/or implementation of decrees and
orders intended to benefit particular persons or special
interests; and
(6) By taking undue advantage of official position, authority,
relationship, or influence for personal gain or benefit. (n)

SECTION 4. Organizational structure. – The Office of the Solicitor

General shall be independent and autonomous office attached to the Office
of the President for budgetary purposes.

The OSG shall be headed by the Solicitor General, who is the principal
law officer and legal defender of the Government. He shall have the
authority and responsibility for the exercise of the OSG’s mandate and for
the discharge of its duties and functions, and shall have supervision and
control over the OSG and its constituent units.

3
S.B. 1409, 17th Cong., 1st Reg. Sess. (2017).
4
Id. p., 14-15.

3
 The Solicitor General shall be assisted by Legal Staff composed of
Assistant Solicitors General and such number of Solicitors as may be
necessary to operate the OSG.

There shall be at least fifty (50) legal divisions in the OSG. Each
division, headed by an Assistant Solicitor General, shall consist of at least
(10) lawyers and such other personnel as may be necessary for the OSG to
effectively carry out its functions.

The administrative structure of the OSG shall be organized into

Financial Management Service, Docket Management and Administrative
Service, Case Management Service, Human Resource Management and
Administrative Service, and Budget and Planning Service, which shall be
composed of the necessary divisions and sections. Each Service shall be
headed by a Director, who shall be appointed by the President.

There shall be an Office of Legal Services (OLS) within the OSG to be

headed by a Director, who shall be appointed by the Solicitor General and
serve at the latter’s pleasure. The qualifications, salary grade, and benefits
of the Director and his/her legal staff shall be determined by the Solicitor
General. The Director shall be assisted by such other personnel as may be
necessary to effectively carry out the functions of the OLS. (n)

The OSG will be an autonomous and independent institution attached to the

Office of the President for budgetary purposes only. Thus, the OSG will still
maintain its independence from the Office of the President. Autonomy and
independence both connote self-government and self-determination which has
always been enjoyed by OSG as provided by law.5

At any rate, there will be no distortion of powers between the Secretary of

Justice and the Solicitor General. The powers of the Secretary of Justice are entirely
delineated from that of the Solicitor General by virtue of the Administrative Code of
1987.6

As to the organizational structure of the OSG, the Charter is clear that the
Solicitor General is the principal law officer and legal defender of the government.
The Solicitor General must see to it that the best interest of the government is
upheld within the limits set by law.7

Furthermore, OSG may engage the services of external or foreign counsel,

subject to the approval of the President, to assist in the discharge of his duties and
responsibilities in cases requiring highly specialized legal skills, knowledge or
expertise, including but not limited to foreign arbitrations and litigations.8

The Charter likewise provides for the increase of the OSG’s legal staff. The
OSG Charter now provides for the expansion of the office from at least thirty (30)
legal divisions to at least fifty (50).9

The Charter creates the Office of the Legal Services. The OLS is a specialized
office catering to the legal needs of OSG employees in order that they may properly

5
Id., p. 23.
6 OSG Position Paper, p. 13.
7
Orbos v. CSC, G.R. No. 92561, September 12, 1990.
8
Defining the Powers and Functions of the Office of the Solicitor General, Presidential Decree No. 478, (July 5,
1974) § 4.
9
S.B 1409 No, §5.

4
discharge their function with undivided attention.10 The OLS operates as the
service in charge of the legal concerns of the OSG as an office.

Clearly, there is a need for the creation of the OLS to cope up with the
expanding functions of the solicitors. Through the OLS, OSG lawyers will be able to
efficiently and effectively address the legal needs of GOCCs, and to improve
government efforts in the recovery of ill-gotten wealth and properties.11

SECTION 5. Powers and Functions.—The Office of the Solicitor

General shall represent the Government of the Philippines, its agencies and
instrumentalities, including GOCCs12 and its officials and agents in any
litigation, proceeding, investigation or matter requiring the services of a
lawyer. The OSG shall constitute the principal law office of the Government
and, as such, shall discharge duties requiring the services of a lawyer. It
shall have the following specific powers and functions:

(a) Represent the Government and the People of the Philippines in

the Supreme Court and the Court of Appeals in all criminal proceedings;
represent the Government and its officers in the Supreme Court, the Court
of Appeals, and all other courts or tribunals in all civil actions and special
proceedings in which the Government or any officer thereof in his official
capacity is a party.

(b) Investigate, initiate court action, or in any manner proceed

against any person, corporation or firm for the enforcement of any
contract, bond, guarantee, mortgage, pledge or other collateral executed in
favor of the Government.

(c) Appear in any court in any action involving the validity of any
treaty, law, executive order or proclamation, rule or regulation when in his
judgment his intervention is necessary or when requested by the Court.

(d) Appear in all proceedings involving the acquisition or loss of

Philippine citizenship.

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

proceedings. Institute actions for the reversion to the Government of lands
of the public domain and improvements thereon as well as lands held in
violation of the Constitution.

(f) Conciliate, mediate, settle, or adjudicate all disputes, claims and

controversies solely between or among the departments, bureaus, offices,
agencies, and instrumentalities of the National Government, including
GOCCs.

(g) Render opinion and advice on matters referred by.

(h) Prepare, upon request of the President or other proper officer of

the National Government, rules and guidelines for government entities
governing the preparation of contracts, making of investments,
undertaking of transactions, and drafting of forms or other writings
needed for official use, with the end in view of facilitating their
enforcement and insuring that they are entered into or prepared
conformably with law and for the best interests of the public.

10
OSG Position Paper, p. 47.
11
Id., pp. 46-47.
12
Emphasis supplied.

5
 (i) Deputize, whenever in the opinion of the Solicitor General the
public interest requires, any provincial or city fiscal to assist him in the
performance of any function or discharge of any duty incumbent upon him,
within the jurisdiction of the aforesaid provincial or city fiscal. When so
deputized, the fiscal shall be under the control and supervision of the
Solicitor General with regard to the conduct of the proceedings assigned to
the fiscal, and he may be required to render reports or furnish information
regarding the assignment.

(j) Any law to the contrary notwithstanding, the OSG shall be the
legal counsel and principal law office of all GOCCs. All GOCCs shall refer to
the OSG the following:

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

(ii) All cases for representation before regular courts, quasi-
judicial bodies, administrative agencies, and arbitral
tribunals, Provided that the Solicitor General may thereafter
authorize the GOCC’s legal department as collaborating
counsel to handle cases, as the urgency or expediency of
circumstances may warrant.

In addition, the OSG shall perform the following functions:

(1) Exercise control and supervision over the legal departments of

all GOCCs;

(2) Exercise visitorial powers over GOCCs;

(3) Enforce the Property Insurance Law pursuant to Republic Act

No. 656, as amended by Presidential Decree 245, in domestic
or international transactions;

(4) Conduct periodic performance audits of the in-house lawyers or

legal departments of the GOCCs and to recommend appropriate
actions to GOCCs;

(5) Require the in-house lawyers of legal departments of GOCCs to

submit periodic reports of “work performed and/or
accomplished and to supervise and control the necessary legal
actions; and

(6) Perform such additional tasks as may be required by the

GOCCs, with the conformity of the Solicitor General.

(k) Deputize legal officers of government departments, bureaus,

agencies and offices to assist the Solicitor General and appear or represent
the Government in cases involving their respective offices, brought before
the courts, and exercise supervision and control over such legal Officers
with respect to such cases.

(l) Call on any department, bureau, office, agency or instrumentality

of the Government for such service, assistance and cooperation as may be
necessary in fulfilling its functions and responsibilities and for this purpose
enlist the services of any government official or employee in the pursuit of
his tasks.

Departments, bureaus, agencies, offices, instrumentalities and

corporations to whom the Office of the Solicitor General renders legal
services are authorized to disburse funds from their sundry operating

6
 and other funds for the latter Office. For this purpose, the Solicitor
General and his staff are specifically authorized to receive
allowances as may be provided by the Government offices,
instrumentalities and corporations concerned, in addition to their
regular compensation.

(m) The powers and functions of the PCGG are hereby transferred to
the OSG which include the following:

(1) To file and prosecute all cases investigated by the PCGG under
the Executive Order No. 1 dated, 28 February 1986, Executive
Order No.2, dated 12 March 1986, and Executive Order No. 342,
dated 26 May 2005, as may be warranted by its findings;

(2) To continue handling cases relative to the recovery of ill-gotten

wealth and behest loans;

(3) To grant immunity from criminal prosecution to any person

who provides information or testifies in any investigation
previously conducted by the PCGG or future cases investigated
by the OSG, to establish the unlawful manner in which any
respondent, defendant or accused has acquired or accumulated
the property or properties in question in any case where such
information or testimony is necessary to ascertain or prove the
latter’s guilt or his civil liability. The immunity thereby granted
shall be continued to protect the witness who repeats such
testimony before the Sandiganbayan when required to do so;
and

(4) To call upon any department, bureau, office agency,

instrumentality or corporation of the government, or any
officer or employee thereof, for such assistance as it may need
in the discharge of its functions relative to recovery of ill-
gotten wealth and behest loans.

(n) Represent, upon the instructions of the President, the Republic of

the Philippines in international litigations, negotiations, or conferences
where the legal position of the Republic must be defended or presented.

(o) Engage the services of counsel to assist in the discharge of his

duties and responsibilities. However, due to the fiduciary nature of the
relationship between the OSG and the counsel, the engagement of the
latter shall be exempt from the Republic Act No. 9184 (Government
Procurement Reform Act) and Presidential Decree 1445 (Government
Auditing Code of the Philippines).

(p) Act and represent the Republic and/or the people before any
court, tribunal, body or commission in any matter, action or proceeding
which, in his opinion, affects the welfare of the people as the ends of
justice may require;

(q) Acquire, own, hold or lease real and personal property; ell or
otherwise dispose of the same; enter into contracts including loan
agreements; and do and perform any and all acts that may be necessary or
proper to carry out the purposes of this Act.

(r) Provide its own Legal Internship Program to help law students
prepare and train for and experience legal practice in public service.

7
 (s) Perform such other functions as may be provided by law.

The abovementioned provisions are basically lifted from the Revised

Administrative Code of 1987.13 It embodies the principal function of the OSG as the
principal law office and legal defender of the Government. Generally, the OSG is the
counsel of the Republic of the Philippines in all cases, actions, proceedings and any
other matter of which the same is involved.

As the principal law office of the government, the OSG is now reverted to its
function way back in 1901 which was then to provide legal services to both the
National Government Agencies (“NGAs”) and GOCCs. In line with this, OSG will
function as the legal counsel for GOCC for the review of its contracts and in all
cases for representation before tribunals. OSG is equally mandated to exercise
control and supervision, visitorial powers, enforcement of property insurance law,
periodic performance audits, and requiring the submission of periodic reports
among GOCCs.

The functions of the PCGG are likewise transferred to OSG. It can file and
prosecute all cases investigated by PCGG and handle cases relative to recovery of
ill-gotten wealth and behest loans. It includes the conduct investigation, sequester
or control of properties or records concerning the recovery of ill-gotten wealth and
to take over provisionally in the public interest or to prevent its disposal or
dissipation, business enterprises and properties taken over by the government of
the Marcos Administration or related to them.

To effectively administer its function and upon its exercise of the powers and
authority formerly enjoyed by PCGG, OSG can also enjoin or restrain any actual or
threatened commission of acts by any person or entity that may render moot and
academic, or frustrate, or otherwise make ineffectual the efforts of the office to
carry out its tasks under this order. It may also administer oaths, and issue
subpoena requiring the attendance and testimony of witnesses and/or the
production effects material to the investigation conducted by the office; or hold any
person in direct or indirect contempt and impose the appropriate penalties,
following the same procedures and penalties provided in the Rules of Court.14

OSG may also seek and secure the assistance of any office, agency or
instrumentality of the government and promulgate such rules and regulations as
may be necessary to carry out the purpose of this order.

As all the powers and functions of the PCGG are now transferred to the OSG,
the charter, by implication, includes the technical functions of the PCGG as now
being embraced by the OSG.

SECTION 6. Abolition of the Office of the Government Corporate

Counsel and the Presidential Commission on Good Government. – The legal
representation of the Government, its agencies, and its instrumentalities,
including GOCCs, and officials and agents acting in their official capacity,
and the powers and functions of the PCGG shall be consolidated in the
OSG, the principal law office and legal defender of the Government. For
this purpose, the OGCC and the PCGG are herby abolished, and all the
powers and functions of said Offices which are not inconsistent with the
provisions of this Acts are hereby transferred to the OSG.

13
E.O. No. 292 (1987), Book IV, Title III, Chapter 12.
14
Section 3, Executive Order No. 1, Creating The Presidential Commission On Good Government, February 28,
1986

8
 After settlement of its liabilities, if any, all budgetary appropriations,
funds, properties, records, equipment, rights, choses in action, and other
assets of the OGCC and the PCGG are hereby transferred to the OSG. (n)

This provision seeks to abolish the OGCC and the PCGG and transfer their
powers and functions to OSG. By the expansion and strengthening of the OSG
through this bill, the same embraces the responsibilities and tasks currently
expected from OGCC and PCGG.

The OSG as the legal counsel of the Philippine Government, its agencies and
instrumentalities, is likewise mandated to act as the “tribune of the people”. The
law therefore confers on the Solicitor General not only the duty and authority to
provide legal services to the government, but also the discretion to determine
which proceedings affect the welfare of the Filipino people so much so that, in his
opinion, it is incumbent upon him to participate in said proceedings to protect public
interest and promote justice.15

OSG will function as the general arbitrator of all government agencies and
GOCCs.16 Pursuant to this, the OSG may perform the management of corporations,
its assets and other related matter.

The OSG may conduct Alternative Dispute Resolution mechanisms such as

conciliation and mediation to settle controversies and claims between and among
NGAs and GOCCs, to prevent any conflict of interest.17 This power will enable the
OSG to call the conflicting parties together, discuss their opposing views and
differences and come up with a resolution that will address the cause of said
parties. These ADR mechanisms are more cost-efficient and expedient in resolving
conflicting issues.

GOCCs may be represented by their legal department in case the OSG will
have a different stand without prejudice to the role of the OSG as the principal
overseer of these legal departments.18

SECTION 7. Appointments. The Solicitor General shall be appointed

by the President.

The Assistant Solicitors General, Senior State Solicitors, and State

Solicitors shall be appointed by the President upon recommendation of the
Solicitor General. Associate Solicitors shall be appointed by the Solicitor
General.

The Financial Management Service, Docket Management Service,

Case Management Service, Human Resources Management and
Administrative Service, and Budget and Planning Service shall each be
headed by a Director to be appointed by the President upon the
recommendation of the Solicitor General. The Service Heads shall possess
the necessary CES eligibility and qualifications for the position prescribed
under pertinent civil service laws, rules, and regulations: Provided, that if a
Service Head who does not possess the necessary eligibility and
qualifications is occupying the position at the time of the effectivity of this
Act, he or she shall continue to perform such functions as officer-in-charge
and shall have a maximum of two (2) years to comply with the said
eligibility and qualifications: Provided further, that if the Service Head fails

15 OSG Position Paper, p.29.

16 Id, p.3.
17
House Bill No. 5233
18
OSG Position Paper, pp. 4-5.

9
or is unable to meet the eligibility and qualifications for the position after
the lapse of two (2) years from effectivity of this Act, he or she shall be
ipso jure removed from said position. (n)

Administrative personnel in the OSG shall be appointed by the

Solicitor General. (rf Section 36 of EO No. 292)

Appointment of the heads and personnel of the OSG is originally provided in

the Revised Administrative Code of 1987.19 The President appoints the Solicitor
General. Upon recommendation of the Solicitor General, the President also appoints
the Assistant Solicitor General, Senior State Solicitors, and State Solicitors.

The Solicitor General shall appoint the Associate Solicitors and all
administrative personnel.

The Financial Management Service, Docket Management Service, Case

Management Service, Human Resources Management and Administrative Service,
and Budget and Planning Service of the OSG will have its respective Director upon
the appointment of the President from the Solicitor General’s recommendation.

Directors will be required to possess Civil Executive Service (CES) eligibility

as presidential appointees within the third level position of Career Service.20 Said
directors should have successfully completed the four-stage eligibility examination,
namely, CES written examination, Assessment Center, Performance Validation and
Panel Interview.21

Pending acquisition of eligibility or qualifications, incumbent service heads

hold the position in office-in-charge capacity for a period of only two years from the
effectivity of this charter, otherwise they shall be automatically disqualified and
removed from the said office.

SECTION 8. STANDARDS. – The Solicitor General shall have the rank

of a Cabinet Secretary and the same qualifications for appointment, rank,
category, prerogatives, salaries, allowances, emoluments, privileges, and
all other benefits of an Associate Justice of the Supreme Court; an
Assistant Solicitor General, those of an Associate Justice of the Court of
Appeals.

The qualifications for appointment, rank, category, prerogatives,

salaries, allowances, emoluments, privileges, and all other benefits of
Solicitors shall be the same as judges, specified as follows:

Senior State Solicitor- Regional Trial Court Judge

State Solicitor II- Metropolitan Trial Court Judge

State Solicitor I- Municipal Trial Court in Cities Judge

The Solicitor General shall be entitled to the same retirement

19
Section 36. Appoinments-The Solicitor General shall be appointed by the President and shall have the same
qualification for appointment, rank, prerogatives, and privileges as those of the Presiding Justice of the Court of
Appeals.
The Assistant Solicitors General and the Solicitors shall be appointed by the President upon
recommendation of the Solicitor General. The Trial Attorneys and administrative personnel in the Office of the
Solicitor General shall be appointed by the Solicitor General.
20
PCSO vs CSC, GR. No. 185766, November 23, 2010
21
CESB Resolution No. 791, February 10, 2009.

10
benefits and privileges as an Associate Justice of the Supreme Court,
provided he has served in such capacity for at least three (3) years. Such
retirement benefits and privileges shall accrue to him or her upon reaching
the age of sixty (60) years.

Assistant Solicitor Generals, Senior State Solicitors, State Solicitors

II and State Solicitors I shall be entitled to the same retirement benefits
and privileges as their counterpart in the Judiciary upon reaching the age
of sixty (60) years.

The Solicitor General shall determine the qualifications, prerogatives,

and responsibilities of the Associate Solicitors. (rf from Section 3 of RA
9417)

The Solicitor General is in co-equal rank with a Cabinet Secretary and the
same qualifications of an Associate Justice of the Supreme Court.

The ranks and qualifications of Assistant Solicitor General and the Solicitors
have been set forth in the law. However, those of the Associate Solicitor maybe
determined by the Solicitor General.

To be entitled with the retirement benefits and privileges of the Associate

Justice of Supreme court, a Solicitor General should have served as such for three
(3) years which will accrue to him/her only upon reaching the age of sixty (60). The
Senate Bill No. 1409 provides a more relaxed limitation as it shortens the required
years of service of the Solicitor General to two (2) years.

Assistant Solicitor General and Solicitors will only be entitled to the same
retirement benefits and privileges like their counterpart in the Judiciary upon
reaching the age of sixty (60) years. Additional requirement is imposed by Senate
Bill No. 1409 for Assistant Solicitor General, Senior State Solicitor, State Solicitor I
and State Solicitor II to serve in such capacities for at least five (5) years.
However, in the same bill, they may opt to serve up to the age of seventy (70)
years. The option is at the exclusive disposition of the employee.

SECTION 9. Office of Legal Services – The OLS shall have the

following functions:
(a) Represent the Solicitor General, Assistant Solicitors General,
State Solicitors, Associate Solicitors, and all other employees of the
OSG who are impleaded in their official capacity in any litigation,
proceeding, investigation, or matter requiring the services of a
lawyer;
(b) Draft proposed legislative measures to strengthen the OSG and
enable it to efficiently and effectively discharge its mandate for
submission by the Solicitor General to Congress and/or to the
President of the Philippines;
(c) Conduct research on legal issues that may be assigned by the
Solicitor General; and
(d) Perform such functions and duties as may be assigned by the
Solicitor General. (n)

The purpose of the OLS is to defend all the employees of the OSG impleaded
in their official capacity in any form of proceeding.22 It seeks to promote the
efficiency of the OSG by giving peace of mind to impleaded employees in order for

22
H.B. 5233, 17th Cong., 1st Reg. Sess. (2016) and H.B. 5216, 17th Cong., 1st Reg. Sess. (2017).

11
them to execute their jobs well.23 It also has a mandate to propose relevant
legislation, conduct legal research and perform other duties that may be assigned
by the Solicitor General.

As a specialized office, it will not only create but also develop a specific group
of people adept at representing OSG employees.24 The solicitors working under the
OLS will avoid redundancy of function by precisely having a specialization with the
OSG.25

SECTION 10. Capacity Development. – In order to build and develop

the capability of the OSG as an organization to achieve development goals,
as well as enhance its abilities to achieve measurable and sustainable
results, the Solicitor General, in consultation with the Assistant Solicitors
General, shall formulate, develop, and implement plans, activities, and
program towards the improvement of knowledge, skills, and systems. Such
plans, activities, and programs shall include, but not be limited to, the
conduct of or attendance in seminars, fora, conferences, or lectures on
different areas of law, pleadings and practice in international courts and
tribunals, public-private partnerships, and public corporate governance,
among others. (rf Section 2 of RA 9417)

A continuing system of professional development and capacity improvement

of OSG employees is mandated to insure the competence of the office in the future.

The Senate version of the bill distinctly increases the scope of Capacity
Development within the OSG by proposing that even the administrative staff must
undergo training as authorized by the Solicitor General.26

SECTION 11. Compensation. - The salary grades of the Solicitor

General, Assistant Solicitors General, Senior State Solicitors, State
Solicitors, and Associate Solicitors shall be as follows:

Position Salary Grade

Solicitor General 31
Assistant Solicitor General 30
Senior State Solicitor 29
State Solicitor II 28
State Solicitor I 27
Associate Solicitor III 26
Associate Solicitor II 25
Associate Solicitor 24

The positions and salaries of non-legal personnel in the OSG shall be in the
level of their counterparts in the Court of Appeals. (rf Section 4, RA 9417)

This provision enumerates the respective salary grades of the different

officials under the OSG. Officials not part of the enumeration have the same salary
grades as those of their counterpart in the Court of Appeals.

The bill likewise adds that the Solicitor General, Assistant Solicitor General
and Solicitors will avail the “step increments” and “longevity pay” received by their
equivalents in the judiciary.27

23
Id.
24
Id.
25
OSG Position Paper, page 46.
26
S.B. No. 1409, §10.
27
Id., §11.

12
 SECTION 12. Benefits and Privileges – The OSG shall provide its
employees with the following benefits:
(1) Health care services through a health maintenance
organization (HMO). Expenses for the mandatory annual executive
check-up of the Solicitor General and Assistant Solicitors General
shall be for the account of the OSG;
(2) Accident insurance policies procured by the OSG at its own
expense while in the performance of their official duties and
functions;
(3) Without prejudice to efficiency in the service, scholarships to
deserving employees on official time and at the expense of the OSG
to enhance their academic growth and upgrade their knowledge and
skills. Scholarships under this provision shall be granted on the basis
of competitive examination. Scholars shall be required to render
service in the OSG upon immediate completion of the program,
course or degree, in accordance with applicable Civil Service laws,
rules and regulations.
(4) A provident fund which shall consist of contributions made both
by the OSG and by its lawyers and employees to a common fund for
the payment of benefits to such lawyers or employees or their heirs.
(5) Other perquisites and benefits enjoyed by other government
offices or as may be determined by the Solicitor General in the
exigencies of the service in accordance with law. (n)

Certain mandatory benefits will be accorded to OSG employees. These

mandatory benefits include Health Care Services, Accident Insurance Policies, and
Scholarships as received by employees of other government offices, and as
determined by the Solicitor General in the exigencies of service in accordance with
law.

The Solicitor General may also provide for benefits or privileges in the
exigencies of service in accordance with law.

On the other hand, the Senate version of the bill defines the group of
employees that will be able to avail this provision on Benefits and Privileges to OSG
employees whose positions are Salary Grade 28 or higher.28

SECTION 13. Seminar and Other Professional Fees. - Subject to the

availability of funds, fees for relevant seminars, as well as professional
membership fees for lawyers, registration fees, and related miscellaneous
expenses incurred in completing the mandatory continuing legal education
(MCLE) course shall be borne by the OSG: Provided, that the lawyer whose
membership fees/dues to the Integrated Bar of the Philippines (IBP) have
been paid up or reimbursed by the OSG, shall maintain his or her service in
OSG for at least five (5) years: Provided further, that should the lawyer
resign or in any manner sever his or her service from the Office, he or she
shall be required to reimburse the paid up IBP membership dues/fees in
pro rata. (n)

28
Senate Bill 1409, §12.

13
 The OSG shall primarily bear the expenses incurred by its lawyers in the
completion of their mandatory continuing legal education (MCLE) course. 29

If the membership fees/dues owed to the Integrated bar of the Philippines

(IBP) are paid for by the OSG, it will now be mandatory for such lawyer to maintain
his or her service in the OSG for at least 5 years. 30

As to the resignation or severance of service from office, there will be a

required proportional reimbursement on the part of such lawyer with regard to the
paid up IBP membership dues/ fees covered by the OSG. 31

SECTION 14. Survivorship Benefits; Coverage.—

Upon the death of a Solicitor General, Assistant Solicitor General, Senior
State Solicitor, State Solicitor, or an Associate Solicitor of the OSG, if said
official had retired or was in the service at the time of death, the surviving
legitimate spouse and dependent children of the said official shall be
entitled to receive on a monthly basis all retirement benefits that the
deceased official was receiving or entitled to receive at the time of death
under the provisions of the applicable retirement laws then in force. A
“dependent” means a legitimate, illegitimate, or legally adopted child who
is chiefly dependent with the above-enumerated deceased officials if such
dependent is not more than twenty-one (21) years of age, unmarried and
not gainfully employed or if such dependent, regardless of age, is
incapable of self support because of mental or physical defect. The
surviving legitimate spouse shall continue to receive such retirement
benefits during his or her lifetime or until she remarries; Provided, that if
the surviving legitimate spouse is receiving benefits under existing
retirement laws, the surviving legitimate spouse shall only be entitled to
the difference between the amount provided for in this Act and the
benefits one is receiving; Provided, further, that said benefits shall be
granted to all aforementioned members of the OSG who died or retired
prior to the effectivity of this Act; Provided, furthermore, that the surviving
legitimate spouse receiving the benefit shall not, if he or she is a member
of the Bar, appear as counsel before any court in any civil case wherein the
Government or any subdivision or instrumentality thereof, including
GOCCs, is the adverse party, or in any criminal case wherein an incumbent
or former officer or employee of the Government is accused of an offense
committed in relation to his office, or collect any fee for his or her
appearance in any administrative proceeding; and when the surviving
legitimate spouse shall assume an elective public office, he or she shall
not, upon assumption of office and during his or her term, receive the said
survivorship benefits. (n)

The Survivorship Benefits will cover the deceased Solicitor General, Assistant
Solicitor General, Senior State Solicitor, State Solicitor, or an Associate Solicitor of
the OSG. 32 The deceased official’s surviving legitimate spouse and dependent
children are entitled to receive all retirement benefits, on a monthly basis, that the
deceased official was receiving or is entitled to receive at the time of his or her
death subject to the provisions of the applicable retirement laws then in force.

29
Senate Bill 1409, §13.
30
Id.
31
Id.
32
Senate Bill 1409, §14.

14
 The surviving legitimate spouse shall continue to receive such retirement
benefits during his or her lifetime or until she remarries. If the surviving legitimate
spouse is already a beneficiary under existing retirement laws, the surviving
legitimate spouse shall only be entitled to the difference between the amounts
provided for in this Act and the benefits one is receiving. 33

The surviving legitimate spouse who is elected and assumed public office
shall not, during his term, receive the said survivorship benefits. Such survivorship
benefits are currently suspended until he or she abdicates from his or her office. 34

SECTION 15. Grant of Special Allowances. — The Solicitor General,

Assistant Solicitor General, Senior State Solicitors and Associate Solicitors
shall be granted special allowances in amounts to be determined by the
Solicitor General.

The grant of special allowances shall be implemented uniformly in

such sums and amounts and up to the extent only that can be supported by
the funding source specified in Section 18 hereof: Provided, that the said
special allowance shall not exceed One hundred percent (100%) of the
basic salary of solicitors as provided in Republic Act No. 6758, otherwise
known as the Salary Standardization Law; Provided, further, that said
special allowances shall be exempt from income tax. (rf Section 10, RA
9417).

The Solicitor General, Assistant Solicitor General, Senior State Solicitors and
Associate Solicitors are granted special allowances which amount is to be
determined by the Solicitor General. 35 Proper implementation of uniform amounts
in the special allowances received by such officers must be observed and must also
conform to the funding source specified in Section 18. 36

Subject to Republic Act No. 6758, otherwise known as the Salary

Standardization Law, such special allowances granted shall not exceed One
Hundred Percent (100%) of the basic salary of the solicitors and shall also be
exempt from the payment of income tax.37

SECTION 16. Other Benefits. — Notwithstanding any law, the legal

staff of the OSG are allowed to receive honoraria and allowances from
client departments, agencies, and instrumentalities of the Government,
including GOCCs: Provided, that said honoraria and allowances shall be
exempt from income tax. (rf Sec. 35, EO 292)

SECTION 17. Franking Privilege. – All official mail matters and

telegrams of the OSG addressed for delivery within the Philippines shall be
received, transmitted, and delivered free of charge: Provided, that such
mail matters when addressed to private persons or non-government
offices shall no exceed one hundred (120) grams. (rf Sec. 9, RA 9417)

33
Id.
34
Id.
35
Senate Bill 1409, §15.
36
Id.
37
An Act Prescribing A Revised Compensation and Position Classification System in the Government and For
Other Purposes [COMPENSATION AND POSITION CLASSIFICATION ACT OF 1989], Republic Act No. 6758, § 18 (1989).

15
 This provision is lifted from Section 9 of RA 9417. Franking privilege is the
privilege of sending a certain matter through the public mails without payment of
postage, in pursuance of a personal or official privilege.38

Franking privileges apply to all official mail matters and telegrams of the OSG
addressed for delivery within the Philippines.39

However, there are certain limitations to the franking privilege of the OSG. It
only applies to all official mail matters and telegrams of the OSG for delivery which
are within the Philippines; and which shall not exceed one hundred twenty (120)
grams.40

SECTION 18. Funding. – The funds required for the implementation of

this Act, including those for health care services, insurance premiums,
professional, educational, registration fees, transportation benefits and
other benefits above, shall be taken from:

(a) Twenty percent (20%) of monetary awards or value of assets

adjudged by the Courts or tribunals to client departments,
agencies, instrumentalities of the Government, and GOCCs,
including those under court-approved compromise agreements;

(b) Twenty percent (20%) of assets adjudged to the Government

in forfeiture proceedings;

(c) Fifty percent (50%) of fees collected by the Special Committee

on Naturalization;

(d) All other income, fees and revenues earned and collected by
the Office of the Solicitor General.

For this purpose, the OSG is hereby authorized to charge deputation,

certification, and other fees in the cases that it handles.

The amounts collected pursuant to this section shall constitute a

trust fund in the name of the OSG to be managed and used by the Solicitor
General to carry out the provisions of this act. (rf Section 11 of RA 9417)

Section 18 of Senate Bill 1409 further provides that such funds required for
the implementation of this Act “shall be provided for in the General Appropriations
Act and augmented by funds sourced…”41

The present law entitles the OSG with only 5% of monetary awards or value
of assets adjudged42 while the proposed bill entitles the OSG with 20% of such
monetary awards.

The proposed increase rate in the entitlement to the monetary awards due to
the insufficiency of the current 5% rate covers the needs of the OSG, resulting in
the employees not getting all the benefits provided for in the present law43. The
rate of 20% is taken from the present rate of success fees recovered by private law
firms.44 Another 20% will be taken from forfeiture proceedings.45

38
BLACK’S LAW DICTIONARY (9th ed. 2009)
39
H.B. 5233, §17.
40
Id.
41
S.B. 1409, §18.
42
R.A. 9417, §11.
43
OSG Position Paper, p. 40.
44
Ibid.
45
H.B. 5233, § 18.

16
 The OSG is currently entitled to 5% of monetary awards from its client
agencies and 50% from Naturalization proceedings. In Commissioner of Internal
Revenue v. Secretary of Justice Philippine Amusement and Gaming Corporation46
where PAGCOR was directed to pay its tax deficiencies to the Bureau of Internal
Revenue, BIR was directed by the court to remit 5% of the payment of such tax
deficiencies to OSG as monetary award as its representative pursuant to RA 9417.

Logically, the OSG being the statutory counsel of the Government in

forfeiture proceedings under RA No. 9160, as amended by RA No. 9194, should also
be entitled to a portion from such amounts forfeited47.

Section 19. Transfer of Cases. – All cases being handled by the OGCC
shall be transferred to the OSG. Provided, however, that the handling OGCC
lawyer shall submit a status report of all cases he or she is handling to the
Solicitor General. Provided, further, that a certification under oath that the
records of the case transmitted to the OSG are complete shall be made by
the handling OGCC lawyer as a pre-condition for receiving the separation
or retirement benefits under this Act. (n)

Separation or retirements benefits provided under Section 21 of the OSG

Bill48 may only be received by the handling OGCC lawyer referred to in this Section
if such handling OGCC lawyer submits a status report of all cases he or she is
handling to the Solicitor General and certifies under oath that the records of the
case transmitted to the OSG are complete49.

Section 20. Case Migration. – Upon the effectivity of this Act, a

transition “Case Migration Committee” (CMC) shall be created composed
of: three (3) members from each of the respective records and docket
divisions of the OSG, the OGCC, and the PCGG, at least two (2) members
from the legal division of all GOCCs, and at least two lawyers each from the
OSG, the OGCC, and the PCGG.

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

The CMC shall have the responsibility of determining which cases and
legal concerns need immediate attention and are extremely urgent. These
cases and legal concerns shall immediately be transferred and/or referred
to the OSG.

The CMC shall complete its work within thirty (30) days from its
constitution. The CMC shall submit a comprehensive report to the Solicitor
General. (n)

There shall be a Case Migration Committee for the primary purpose of

ensuring the smooth turnover of all cases and legal concerns of the OGCC and the
PCGG to the OSG, to be completed within 30 days from its constitution.50 The
composition of the CMC shall include 3 members from each of the respective
records and docket divisions of the OSG, the OGCC, and the PCGG; at least 2

46 G.R. No. 177387, November 09, 2016

47
OSG Position Paper, p. 40.
48
H.B. 5233, § 21.
49
Id. § 19.
50
Id. § 20.

17
members from the legal division of all GOCCs; and at least 2 lawyers each from the
OSG, the OGCC, and the PCGG.51

SECTION 25. Repealing Clause.—Pertinent provisions of Executive

Order No. 292, otherwise known as the Revised Administration Code of
1987, as amended Republic Act No. 9417, Executive Orders No. 1 and 2 , s.
1986, and all laws, decrees, orders, rules and regulations or parts thereof
which are contrary to or inconsistent with the provisions of this Act are
hereby repealed or amended accordingly.

Republic Act No. 2327 entitled, “An Act to declare the position of the
Government Corporate Counsel distinct and separate from that of the Solicitor
General, provide for his appointment and salary and appropriate the necessary
funds therefor, and for other purposes,” and other related laws are expressly
repealed by this Act.

The OSG Bill version from Senate includes the express repeal of Executive
Orders No. 1 and 2, s. 1986.52

SECTION 26. Separability Clause.—If any provision of this Act is

declared invalid or unconstitutional, the provisions not affected thereby
shall continue to be in full force and effect.

SECTION 27. Effectivity.—This Act shall take effect after fifteen (15)
days from its publication in two national newspapers of general circulation.

51
Id.
52
Office of the President, Creating the Presidential Commission on Good Government, Executive Order No. 1 [E.O.
NO. 1] (February 28, 1986) and Office of the President, Regarding the Funds, Moneys, Assets, and Properties
Illegally Acquired or Misappropriated by Former President Ferdinand Marcos, Mrs. Imelda Romualdez Marcos,
Their Close Relatives, Subordinates Business Associates, Dummies, Agents, Or Nominees Executive Order No. 1
[E.O. NO. 2] (March 12, 1986)

18