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Compliance Map – Philippines

  Currency of information: 4 February 2015

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Primary foreign anti-bribery legislation and enforcement agencies

Enforcement Agency: Office of the Ombudsman (“Ombudsman”)

Revised Penal Code

Investigating Agency: National Bureau of Investigation (NBI) / Philippine National Police (PNP) / Department of Justice (DOJ) / Ombudsman

Prosecuting Agency: DOJ/Ombudsman

Plunder Law

Investigating Agency: DOJ/Ombudsman

Prosecuting Agency: DOJ/Ombudsman

Presidential Decree No. 46

Investigating Agency: NBI/PNP/DOJ/Ombudsman

Prosecuting Agency: DOJ/Ombudsman

Code of Conduct and Ethical Standards for Public Officials and Employees

Prohibits bribery only of domestic public officials.

Investigating Agency: NBI/PNP/DOJ/Ombudsman

Prosecuting Agency: DOJ/Ombudsman

Anti-Red Tape Act 2007

Investigating Agency: NBI/PNP/DOJ/Ombudsman

Prosecuting Agency: DOJ/Ombudsman

Anti-Graft and Corrupt Practices Act

Investigating Agency: DOJ/Ombudsman

Prosecuting Agency: DOJ/Ombudsman

Offenses

Revised Penal Code

Corruption of Public Officials (Art. 212)

This offense is committed when a private person or public officer makes promises or gives gifts to a public officer, under circumstances that will make the public officer liable for direct bribery, indirect bribery or qualified bribery.

Plunder Law

Plunder

The crime of plunder is committed by 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 the overt or criminal acts including:2

1. 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; (Sec. 1(d)(2))

2. By obtaining, receiving or accepting directly or indirectly any shares of stock, equity or any other form of interest or participation including promise of future employment in any business enterprise or undertaking; (Sec. 1(d)(4))

3. 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 in the aggregate amount or total value of at least Fifty million pesos (PHP50,000,000.00). (Sec. 1(d)(6))

Any person who participated with the said public officer in the commission of an offense contributing to the crime of plunder shall likewise be punished for such offense. (Sec. 2)

Presidential Decree No. 46

The law makes it punishable for any public officer or employee to receive directly or indirectly, and for private persons to give, or offer to give, any gift, present or other valuable thing on any occasion, including Christmas, when such gift, present or other valuable thing is given by reason of his official position, regardless of whether or not the same is for past favor or the giver hopes or expects to receive a favor or better treatment in the future from the public official or employee concerned in the discharge of his official functions. It also prohibits the throwing of parties or entertainments in honor of the official or employee or of his immediate relatives.

Code of Conduct and Ethical Standards for Public Officials and Employees

Financial and Material Interest

It prohibits public officials and employees from any having any direct or indirect financial or material interest in any transaction requiring the approval of their office. (Sec. 7[a])

Solicitation and Acceptance of Gifts

It prohibits public officials and employees from soliciting or accepting, directly or indirectly any gift, gratuity, favor, entertainment, loan or anything of monetary value from any person in the course of their official duties or in connection with any operation being regulated by, or any transaction which may be affected by the functions of their office. (Sec. 7(d))

Private individuals who participate in conspiracy as co-principals, accomplices or accessories with the public officials or employees, shall be subject to the same penal liabilities as the public officials or employees and shall be tried jointly with them. (Sec. 11(c))

The term ”gift” shall not include an unsolicited gift of nominal or insignificant value. (Sec. 3(c))

Anti-Red Tape Act 2007

Fixing / Collusion with Fixers

It prohibits a public officer or employee engaged in frontline services from fixing or colluding with fixers for consideration of gain or advantage. (Sec. 11(b)). Corresponding prohibition on “fixers” (any individual whether or not officially involved in the operation of a government office or agency who has access to people working therein, and whether or not in collusion with them, facilitates speedy completion of transactions for pecuniary gain or any other advantage or consideration; Sec. 4[g]).

Anti-Graft and Corrupt Pracitces Act

It prohibits a public officer from, among others:

  • directly or indirectly receiving a gift, present, share, percentage or benefit, for himself or another, in connection with a contract or transaction between the government and any other party; (Sec. 3(b))
  • directly or indirectly receiving a gift, present or any other pecuniary or material benefit, for himself or another, from any person for whom a government permit or license will be or is obtained; (Sec. 3(c)) and
  • accepting, or having a member of his family accept, employment in a private enterprise which has pending official business with him, during the pendency of his employment or within one year after his termination. (Sec. 3(d))

A private individual hired by a government agency on a contractual basis for a particular project and for a specific period is considered a public officer for the duration of his contract.

The private person who gives the gift, present, share, percentage or benefit shall, together with the offending public officer, be punished with imprisonment and be permanently or temporarily disqualified from transacting business in any form with the government. (Sec. 9)

By way of exception, unsolicited gifts or presents of small or insignificant value offered or given as a mere ordinary token of gratitude or friendship according to local customs or usage are not covered. (Sec. 14)

Penalties – Criminal and/or Civil liability

Revised Penal Code

For Corruption of Public Officials:

If the public officer agrees to perform an act constituting a crime: imprisonment of up to 12 years and a fine not less than three times the value of the gift, in addition to the penalty of the crime agreed upon if it has been committed

If the public officer accepts the gift and agrees to commit an act which does not constitute a crime: imprisonment of up to 12 years and a fine not less than three times the value of the gift; If the act is not accomplished: imprisonment of up to four years and two months and a fine of not less than twice the value of such gift

If the public officer shall refrain from doing what he is obliged to perform: imprisonment of up to 10 years and a fine not less than three times the value of such gift

If the public officer accepts a gift offered to him by reason of his office: imprisonment of up to six years

The private individual shall suffer the same penalties imposed upon the officer corrupted, except those of disqualification and suspension from his office.

Plunder Law

Imprisonment up to 40 years

Presidential Decree No. 46

Imprisonment of up to five years and perpetual special disqualification from public office

Code of Conduct and Ethical Standards for Public Officials and Employees

Imprisonment up to five years, disqualification to hold public office, and/or a fine not exceeding PHP5,000

Anti-Red Tape Act 2007

Fixers shall suffer the penalty of imprisonment of up to six years and/or a fine of up to PHP200,000.

Anti-Graft and Corrupt Practices Act

Imprisonment of up to 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 addition, the private person may be permanently or temporarily disqualified from transacting business in any form with the government.

1 This list is to be used as a guide only. It is intended to provide high level information regarding the primary laws in the specified countries in relation to ant-bribery and anti-corruption laws. Please refer to the relevant legislation for detailed information and to ensure that the information contained in this guide is up to date, and refer to the relevant Baker McKenzie contact for the jurisdiction for specific advice.

Other means of acquiring wealth are also recognized as constituting plunder, but those mentioned pertain particularly to bribery.

 

Contacts at Baker McKenzie
 RicardoCastroJr

Ricardo Castro Partner, Manila, Quisumbing Torres +63 2 819 4902 [email protected]

 RodrigoLopeQuimbo

Rodrigo Quimbo Partner, Manila, Quisumbing Torres +63 2 819 4910 [email protected]

 MiguelGalvez

Miguel Galvez Partner, Manila, Quisumbing Torres +63 2 819 4950 [email protected]