AN ACT ESTA!"S#"N$ A C%&E %F C%N&'CT AN& ET#"CA! STAN&AR&S F%R ('!"C %FF"C"A!S AN& E)(!%*EES, T% '(#%!& T#E T")E+#%N%RE& (R"NC"(!E %F ('!"C %FF"CE E"N$ A ('!"C TR'ST, $RANT"N$ "NCENT",ES AN& RE-AR&S F%R E.E)(!AR* SER,"CE, EN')ERAT"N$ (R%#""TE& ACTS AN& TRANSACT"%NS AN& (R%,"&"N$ (ENA!T"ES F%R ,"%!AT"%NS T#ERE%F AN& F%R %T#ER ('R(%SES Be it enacted by the Senate and House of Representatives of the Philippines in Congress assembled:: Sectio/ 1. Title. - This Act shall be known as the "Code of Conduct and Ethical Standards for Public Officials and Employees" Sectio/ 2. Declaration of Policies. - !t is the policy of the State to promote a hi"h standard of ethics in public ser#ice Public officials and employees shall at all times be accountable to the people and shall dischar"e their duties with utmost responsibility$ inte"rity$ competence$ and loyalty$ act with patriotism and %ustice$ lead modest li#es$ and uphold public interest o#er personal interest Sectio/ 3. Definition of Terms. - As used in this Act$ the term: &a' "(o#ernment" includes the )ational (o#ernment$ the local "o#ernments$ and all other instrumentalities$ a"encies or branches of the *epublic of the Philippines includin" "o#ernment- owned or controlled corporations$ and their subsidiarieslaphi!.net &b' "Public Officials" includes electi#e and appointi#e officials and employees$ permanent or temporary$ whether in the career or non-career ser#ice$ includin" military and police personnel$ whether or not they recei#e compensation$ re"ardless of amount &c' "(ift" refers to a thin" or a ri"ht to dispose of "ratuitously$ or any act or liberality$ in fa#or of another who accepts it$ and shall include a simulated sale or an ostensibly onerous disposition thereof !t shall not include an unsolicited "ift of nominal or insi"nificant #alue not "i#en in anticipation of$ or in e+chan"e for$ a fa#or from a public official or employee &d' "*ecei#in" any "ift" includes the act of acceptin" directly or indirectly$ a "ift from a person other than a member of his family or relati#e as defined in this Act$ e#en on the occasion of a family celebration or national festi#ity like Christmas$ if the #alue of the "ift is neither nominal nor insi"nificant$ or the "ift is "i#en in anticipation of$ or in e+chan"e for$ a fa#or &e' ",oan" co#ers both simple loan and commodatum as well as "uarantees$ financin" arran"ements or accommodations intended to ensure its appro#al &f' "Substantial stockholder" means any person who owns$ directly or indirectly$ shares of stock sufficient to elect a director of a corporation This term shall also apply to the parties to a #otin" trust &"' "-amily of public officials or employees" means their spouses and unmarried children under ei"hteen &./' years of a"e &h' "Person" includes natural and %uridical persons unless the conte+t indicates otherwise &i' "Conflict of interest" arises when a public official or employee is a member of a board$ an officer$ or a substantial stockholder of a pri#ate corporation or owner or has a substantial interest in a business$ and the interest of such corporation or business$ or his ri"hts or duties therein$ may be opposed to or affected by the faithful performance of official duty &%' "0i#estment" is the transfer of title or disposal of interest in property by #oluntarily$ completely and actually depri#in" or dispossessin" oneself of his ri"ht or title to it in fa#or of a person or persons other than his spouse and relati#es as defined in this Act &k' "*elati#es" refers to any and all persons related to a public official or employee within the fourth ci#il de"ree of consan"uinity or affinity$ includin" bilas$ inso and balae Sectio/ 0. "orms of Conduct of Public #fficials and $mployees. - &A' E#ery public official and employee shall obser#e the followin" as standards of personal conduct in the dischar"e and e+ecution of official duties: &a' Commitment to public interest - Public officials and employees shall always uphold the public interest o#er and abo#e personal interest All "o#ernment resources and powers of their respecti#e offices must be employed and used efficiently$ effecti#ely$ honestly and economically$ particularly to a#oid wasta"e in public funds and re#enues &b' Professionalism - Public officials and employees shall perform and dischar"e their duties with the hi"hest de"ree of e+cellence$ professionalism$ intelli"ence and skill They shall enter public ser#ice with utmost de#otion and dedication to duty They shall endea#or to discoura"e wron" perceptions of their roles as dispensers or peddlers of undue patrona"e &c' 1ustness and sincerity - Public officials and employees shall remain true to the people at all times They must act with %ustness and sincerity and shall not discriminate a"ainst anyone$ especially the poor and the underpri#ile"ed They shall at all times respect the ri"hts of others$ and shall refrain from doin" acts contrary to law$ "ood morals$ "ood customs$ public policy$ public order$ public safety and public interest They shall not dispense or e+tend undue fa#ors on account of their office to their relati#es whether by consan"uinity or affinity e+cept with respect to appointments of such relati#es to positions considered strictly confidential or as members of their personal staff whose terms are coterminous with theirs &d' Political neutrality - Public officials and employees shall pro#ide ser#ice to e#eryone without unfair discrimination and re"ardless of party affiliation or preference &e' *esponsi#eness to the public - Public officials and employees shall e+tend prompt$ courteous$ and ade2uate ser#ice to the public 3nless otherwise pro#ided by law or when re2uired by the public interest$ public officials and employees shall pro#ide information of their policies and procedures in clear and understandable lan"ua"e$ ensure openness of information$ public consultations and hearin"s whene#er appropriate$ encoura"e su""estions$ simplify and systemati4e policy$ rules and procedures$ a#oid red tape and de#elop an understandin" and appreciation of the socio-economic conditions pre#ailin" in the country$ especially in the depressed rural and urban areas &f' )ationalism and patriotism - Public officials and employees shall at all times be loyal to the *epublic and to the -ilipino people$ promote the use of locally produced "oods$ resources and technolo"y and encoura"e appreciation and pride of country and people They shall endea#or to maintain and defend Philippine so#erei"nty a"ainst forei"n intrusion &"' Commitment to democracy - Public officials and employees shall commit themsel#es to the democratic way of life and #alues$ maintain the principle of public accountability$ and manifest by deeds the supremacy of ci#ilian authority o#er the military They shall at all times uphold the Constitution and put loyalty to country abo#e loyalty to persons or party &h' Simple li#in" - Public officials and employees and their families shall lead modest li#es appropriate to their positions and income They shall not indul"e in e+tra#a"ant or ostentatious display of wealth in any form &5' The Ci#il Ser#ice Commission shall adopt positi#e measures to promote &.' obser#ance of these standards includin" the dissemination of information pro"rams and workshops authori4in" merit increases beyond re"ular pro"ression steps$ to a limited number of employees reco"ni4ed by their office collea"ues to be outstandin" in their obser#ance of ethical standards6 and &7' continuin" research and e+perimentation on measures which pro#ide positi#e moti#ation to public officials and employees in raisin" the "eneral le#el of obser#ance of these standards Sectio/ 1. Duties of Public #fficials and $mployees. - !n the performance of their duties$ all public officials and employees are under obli"ation to:laphi!.net &a' Act promptly on letters and re2uests - All public officials and employees shall$ within fifteen &.8' workin" days from receipt thereof$ respond to letters$ tele"rams or other means of communications sent by the public The reply must contain the action taken on the re2uest &b' Submit annual performance reports - All heads or other responsible officers of offices and a"encies of the "o#ernment and of "o#ernment-owned or controlled corporations shall$ within forty-fi#e &98' workin" days from the end of the year$ render a performance report of the a"ency or office or corporation concerned Such report shall be open and a#ailable to the public within re"ular office hours &c' Process documents and papers e+peditiously - All official papers and documents must be processed and completed within a reasonable time from the preparation thereof and must contain$ as far as practicable$ not more than three &:' si"natories therein !n the absence of duly authori4ed si"natories$ the official ne+t-in-rank or officer in char"e shall si"n for and in their behalf &d' Act immediately on the public;s personal transactions - All public officials and employees must attend to anyone who wants to a#ail himself of the ser#ices of their offices and must$ at all times$ act promptly and e+peditiously &e' <ake documents accessible to the public - All public documents must be made accessible to$ and readily a#ailable for inspection by$ the public within reasonable workin" hours Sectio/ 6. System of %ncentives and Reards. - A system of annual incenti#es and rewards is hereby established in order to moti#ate and inspire public ser#ants to uphold the hi"hest standards of ethics -or this purpose$ a Committee on Awards to Outstandin" Public Officials and Employees is hereby created composed of the followin": the Ombudsman and Chairman of the Ci#il Ser#ice Commission as Co- Chairmen$ and the Chairman of the Commission on Audit$ and two "o#ernment employees to be appointed by the President$ as members !t shall be the task of this Committee to conduct a periodic$ continuin" re#iew of the performance of public officials and employees$ in all the branches and a"encies of (o#ernment and establish a system of annual incenti#es and rewards to the end that due reco"nition is "i#en to public officials and employees of outstandin" merit on the basis of the standards set forth in this Act The conferment of awards shall take into account$ amon" other thin"s$ the followin": the years of ser#ice and the 2uality and consistency of performance$ the obscurity of the position$ the le#el of salary$ the uni2ue and e+emplary 2uality of a certain achie#ement$ and the risks or temptations inherent in the work !ncenti#es and rewards to "o#ernment officials and employees of the year to be announced in public ceremonies honorin" them may take the form of bonuses$ citations$ directorships in "o#ernment-owned or controlled corporations$ local and forei"n scholarship "rants$ paid #acations and the like They shall likewise be automatically promoted to the ne+t hi"her position with the commensurate salary suitable to their 2ualifications !n case there is no ne+t hi"her position or it is not #acant$ said position shall be included in the bud"et of the office in the ne+t (eneral Appropriations Act The Committee on Awards shall adopt its own rules to "o#ern the conduct of its acti#ities Sectio/ 7. Prohibited &cts and Transactions. - !n addition to acts and omissions of public officials and employees now prescribed in the Constitution and e+istin" laws$ the followin" shall constitute prohibited acts and transactions of any public official and employee and are hereby declared to be unlawful: &a' -inancial and material interest - Public officials and employees shall not$ directly or indirectly$ ha#e any financial or material interest in any transaction re2uirin" the appro#al of their office &b' Outside employment and other acti#ities related thereto - Public officials and employees durin" their incumbency shall not: &.' Own$ control$ mana"e or accept employment as officer$ employee$ consultant$ counsel$ broker$ a"ent$ trustee or nominee in any pri#ate enterprise re"ulated$ super#ised or licensed by their office unless e+pressly allowed by law6 &7' En"a"e in the pri#ate practice of their profession unless authori4ed by the Constitution or law$ pro#ided$ that such practice will not conflict or tend to conflict with their official functions6 or &:' *ecommend any person to any position in a pri#ate enterprise which has a re"ular or pendin" official transaction with their office These prohibitions shall continue to apply for a period of one &.' year after resi"nation$ retirement$ or separation from public office$ e+cept in the case of subpara"raph &b' &7' abo#e$ but the professional concerned cannot practice his profession in connection with any matter before the office he used to be with$ in which case the one-year prohibition shall likewise apply &c' 0isclosure and=or misuse of confidential information - Public officials and employees shall not use or di#ul"e$ confidential or classified information officially known to them by reason of their office and not made a#ailable to the public$ either: &.' To further their pri#ate interests$ or "i#e undue ad#anta"e to anyone6 or &7' To pre%udice the public interest &d' Solicitation or acceptance of "ifts - Public officials and employees shall not solicit or accept$ directly or indirectly$ any "ift$ "ratuity$ fa#or$ entertainment$ loan or anythin" of monetary #alue from any person in the course of their official duties or in connection with any operation bein" re"ulated by$ or any transaction which may be affected by the functions of their office As to "ifts or "rants from forei"n "o#ernments$ the Con"ress consents to: &i' The acceptance and retention by a public official or employee of a "ift of nominal #alue tendered and recei#ed as a sou#enir or mark of courtesy6 &ii' The acceptance by a public official or employee of a "ift in the nature of a scholarship or fellowship "rant or medical treatment6 or &iii' The acceptance by a public official or employee of tra#el "rants or e+penses for tra#el takin" place entirely outside the Philippine &such as allowances$ transportation$ food$ and lod"in"' of more than nominal #alue if such acceptance is appropriate or consistent with the interests of the Philippines$ and permitted by the head of office$ branch or a"ency to which he belon"s The Ombudsman shall prescribe such re"ulations as may be necessary to carry out the purpose of this subsection$ includin" pertinent reportin" and disclosure re2uirements )othin" in this Act shall be construed to restrict or prohibit any educational$ scientific or cultural e+chan"e pro"rams sub%ect to national security re2uirements Sectio/ 8. Statements and Disclosure. - Public officials and employees ha#e an obli"ation to accomplish and submit declarations under oath of$ and the public has the ri"ht to know$ their assets$ liabilities$ net worth and financial and business interests includin" those of their spouses and of unmarried children under ei"hteen &./' years of a"e li#in" in their households &A' Statements of Assets and ,iabilities and -inancial 0isclosure - All public officials and employees$ e+cept those who ser#e in an honorary capacity$ laborers and casual or temporary workers$ shall file under oath their Statement of Assets$ ,iabilities and )et >orth and a 0isclosure of 5usiness !nterests and -inancial Connections and those of their spouses and unmarried children under ei"hteen &./' years of a"e li#in" in their households The two documents shall contain information on the followin": &a' real property$ its impro#ements$ ac2uisition costs$ assessed #alue and current fair market #alue6 &b' personal property and ac2uisition cost6 &c' all other assets such as in#estments$ cash on hand or in banks$ stocks$ bonds$ and the like6 &d' liabilities$ and6 &e' all business interests and financial connections The documents must be filed: &a' within thirty &:?' days after assumption of office6 &b' on or before April :?$ of e#ery year thereafter6 and &c' within thirty &:?' days after separation from the ser#ice All public officials and employees re2uired under this section to file the aforestated documents shall also e+ecute$ within thirty &:?' days from the date of their assumption of office$ the necessary authority in fa#or of the Ombudsman to obtain from all appropriate "o#ernment a"encies$ includin" the 5ureau of !nternal *e#enue$ such documents as may show their assets$ liabilities$ net worth$ and also their business interests and financial connections in pre#ious years$ includin"$ if possible$ the year when they first assumed any office in the (o#ernment @usband and wife who are both public officials or employees may file the re2uired statements %ointly or separately The Statements of Assets$ ,iabilities and )et >orth and the 0isclosure of 5usiness !nterests and -inancial Connections shall be filed by: &.' Constitutional and national electi#e officials$ with the national office of the Ombudsman6 &7' Senators and Con"ressmen$ with the Secretaries of the Senate and the @ouse of *epresentati#es$ respecti#ely6 1ustices$ with the Clerk of Court of the Supreme Court6 1ud"es$ with the Court Administrator6 and all national e+ecuti#e officials with the Office of the President &:' *e"ional and local officials and employees$ with the 0eputy Ombudsman in their respecti#e re"ions6 &9' Officers of the armed forces from the rank of colonel or na#al captain$ with the Office of the President$ and those below said ranks$ with the 0eputy Ombudsman in their respecti#e re"ions6 and &8' All other public officials and employees$ defined in *epublic Act )o :?.A$ as amended$ with the Ci#il Ser#ice Commission &5' !dentification and disclosure of relati#es - !t shall be the duty of e#ery public official or employee to identify and disclose$ to the best of his knowled"e and information$ his relati#es in the (o#ernment in the form$ manner and fre2uency prescribed by the Ci#il Ser#ice Commission &C' Accessibility of documents - &.' Any and all statements filed under this Act$ shall be made a#ailable for inspection at reasonable hours &7' Such statements shall be made a#ailable for copyin" or reproduction after ten &.?' workin" days from the time they are filed as re2uired by law &:' Any person re2uestin" a copy of a statement shall be re2uired to pay a reasonable fee to co#er the cost of reproduction and mailin" of such statement$ as well as the cost of certification &9' Any statement filed under this Act shall be a#ailable to the public for a period of ten &.?' years after receipt of the statement After such period$ the statement may be destroyed unless needed in an on"oin" in#esti"ation &0' Prohibited acts - !t shall be unlawful for any person to obtain or use any statement filed under this Act for: &a' any purpose contrary to morals or public policy6 or &b' any commercial purpose other than by news and communications media for dissemination to the "eneral public Sectio/ 9. Divestment. - A public official or employee shall a#oid conflicts of interest at all times >hen a conflict of interest arises$ he shall resi"n from his position in any pri#ate business enterprise within thirty &:?' days from his assumption of office and=or di#est himself of his shareholdin"s or interest within si+ty &B?' days from such assumption The same rule shall apply where the public official or employee is a partner in a partnership The re2uirement of di#estment shall not apply to those who ser#e the (o#ernment in an honorary capacity nor to laborers and casual or temporary workers Sectio/ 10. Revie and Compliance Procedure. - &a' The desi"nated Committees of both @ouses of the Con"ress shall establish procedures for the re#iew of statements to determine whether said statements which ha#e been submitted on time$ are complete$ and are in proper form !n the e#ent a determination is made that a statement is not so filed$ the appropriate Committee shall so inform the reportin" indi#idual and direct him to take the necessary correcti#e action &b' !n order to carry out their responsibilities under this Act$ the desi"nated Committees of both @ouses of Con"ress shall ha#e the power within their respecti#e %urisdictions$ to render any opinion interpretin" this Act$ in writin"$ to persons co#ered by this Act$ sub%ect in each instance to the appro#al by affirmati#e #ote of the ma%ority of the particular @ouse concerned The indi#idual to whom an opinion is rendered$ and any other indi#idual in#ol#ed in a similar factual situation$ and who$ after issuance of the opinion acts in "ood faith in accordance with it shall not be sub%ect to any sanction pro#ided in this Act &c' The heads of other offices shall perform the duties stated in subsections &a' and &b' hereof insofar as their respecti#e offices are concerned$ sub%ect to the appro#al of the Secretary of 1ustice$ in the case of the E+ecuti#e 0epartment and the Chief 1ustice of the Supreme Court$ in the case of the 1udicial 0epartment Sectio/ 11. Penalties. - &a' Any public official or employee$ re"ardless of whether or not he holds office or employment in a casual$ temporary$ holdo#er$ permanent or re"ular capacity$ committin" any #iolation of this Act shall be punished with a fine not e+ceedin" the e2ui#alent of si+ &B' months; salary or suspension not e+ceedin" one &.' year$ or remo#al dependin" on the "ra#ity of the offense after due notice and hearin" by the appropriate body or a"ency !f the #iolation is punishable by a hea#ier penalty under another law$ he shall be prosecuted under the latter statute Ciolations of Sections D$ / or A of this Act shall be punishable with imprisonment not e+ceedin" fi#e &8' years$ or a fine not e+ceedin" fi#e thousand pesos &P8$???'$ or both$ and$ in the discretion of the court of competent %urisdiction$ dis2ualification to hold public office &b' Any #iolation hereof pro#en in a proper administrati#e proceedin" shall be sufficient cause for remo#al or dismissal of a public official or employee$ e#en if no criminal prosecution is instituted a"ainst him &c' Pri#ate indi#iduals who participate in conspiracy as co-principals$ accomplices or accessories$ with public officials or employees$ in #iolation of this Act$ shall be sub%ect to the same penal liabilities as the public officials or employees and shall be tried %ointly with them &d' The official or employee concerned may brin" an action a"ainst any person who obtains or uses a report for any purpose prohibited by Section / &0' of this Act The Court in which such action is brou"ht may assess a"ainst such person a penalty in any amount not to e+ceed twenty- fi#e thousand pesos &P78$???' !f another sanction hereunder or under any other law is hea#ier$ the latter shall apply Sectio/ 12. Promulgation of Rules and Regulations' &dministration and $nforcement of this &ct. - The Ci#il Ser#ice Commission shall ha#e the primary responsibility for the administration and enforcement of this Act !t shall transmit all cases for prosecution arisin" from #iolations of this Act to the proper authorities for appropriate action: Pro#ided$ howe#er$ That it may institute such administrati#e actions and disciplinary measures as may be warranted in accordance with law )othin" in this pro#ision shall be construed as a depri#ation of the ri"ht of each @ouse of Con"ress to discipline its <embers for disorderly beha#ior The Ci#il Ser#ice Commission is hereby authori4ed to promul"ate rules and re"ulations necessary to carry out the pro#isions of this Act$ includin" "uidelines for indi#iduals who render free #oluntary ser#ice to the (o#ernment The Ombudsman shall likewise take steps to protect citi4ens who denounce acts or omissions of public officials and employees which are in #iolation of this Act Sectio/ 13. Provisions for (ore Stringent Standards. - )othin" in this Act shall be construed to dero"ate from any law$ or any re"ulation prescribed by any body or a"ency$ which pro#ides for more strin"ent standards for its official and employees Sectio/ 10. &ppropriations. - The sum necessary for the effecti#e implementation of this Act shall be taken from the appropriations of the Ci#il Ser#ice Commission Thereafter$ such sum as may be needed for its continued implementation shall be included in the annual (eneral Appropriations Act Sectio/ 11. Separability Clause. - !f any pro#ision of this Act or the application of such pro#ision to any person or circumstance is declared in#alid$ the remainder of the Act or the application of such pro#ision to other persons or circumstances shall not be affected by such declaration Sectio/ 16. Repealing Clause. - All laws$ decrees and orders or parts thereof inconsistent herewith$ are deemed repealed or modified accordin"ly$ unless the same pro#ide for a hea#ier penalty Sectio/ 17. $ffectivity. - This Act shall take effect after thirty &:?' days followin" the completion of its publication in the Official (a4ette or in two &7' national newspapers of "eneral circulation Appro#ed$ February 20, 1989.