CREATING THE NATIONAL ANTI-CORRUPTION COMMISSION AND ABOLISHING THE PRESIDENTIAL COMMISSION AGAINST GRAFT AND CORRUPTION CREATED UNDER EXECUTIVE ORDER 151, S. 1994, AS AMENDED

WHEREAS, it has always been the avowed policy of the State, as
enshrined in the constitutional principle that a public office is a
public trust, to promote and maintain honesty and integrity in public
service and to repress acts of public officers and private persons alike
which constitute graft and corrupt practices or which may lead thereto;

WHEREAS, corrupt practices at all levels of the government are
rooted in the past, have branched out and syndicated in the executive,
legislative, and judicial branches of the government, and have become
more serious and complicated with the involvement of several mass media
practitioners in the process;

WHEREAS, despite the existence of many laws against graft and
corruption, and the agencies legally and/or constitutionally mandated to
enforce these laws, corruption remains prevalent and at times
criminally aggressive thereby posing a very serious problem to the
country and threat to the moral fabric of the Philippine society;

WHEREAS, the present Administration seriously wants to put an end to
graft and corruption which poses a very dangerous threat to the moral
and political existence of the Philippines as a nation;

WHEREAS, new and effective administrative mechanisms designed to
eradicate corruption and implement state policy at the national level
for the prevention and control of corruption are therefore imperative
and needs to be urgently established;

NOW, THEREFORE, I, JOSEPH EJERCITO ESTRADA, President of the
Philippines, by virtue of powers vested in me by the Constitution, do
hereby order the following:

SECTION 1. Organization . — There is hereby created
a National Anti-Corruption Commission, hereinafter referred to as the
Commission, to implement and coordinate policy at the national level for
the prevention, control of and ultimately, elimination of graft and
corrupt practices at all levels in government by public officers and
private persons alike. Acts or omissions constituting graft and corrupt
practices shall be as defined by Republic Act No. 3019, as amended, or
as declared unlawful by other existing laws. The Presidential Commission
Against Graft and Corruption created and provided for under Executive
Order No. 151 dated 11 January 1994, as amended, is hereby abolished.

SEC. 2. Composition of the Commission. — The
Commission shall be headed by a full-time Chairman, who shall be
assisted by four (4) full-time Commissioners. They shall be appointed by
the President from a list of nominees, known and recognized for moral
uprightness, probity and independence, proven competence, and recognized
expertise in their fields related as much as possible to the functions
of the Commission as cited in this Executive Order. All five (5) of them
shall be drawn from the public and private sectors.

The Chairman shall have the rank, emoluments, and privileges of a
Cabinet Secretary or its equivalent. The Commissioners, on the other
hand, shall have the rank, emoluments, and privileges of an
Undersecretary or its equivalent.

In no case shall any member of the Commission appoint representatives to act on his behalf.

SEC. 3. The Secretariat . — The Commission shall be
initially assisted by an interim secretariat placed at its disposal by
the Development Academy of the Philippines (hereinafter “DAP”). DAP
interim secretariat shall serve as such until a regular organic
secretariat shall have been organized by the Commission. The
secretariat, interim and regular, shall also be composed of individuals
of known moral probity and dedication to public service.

The Secretariat shall provide technical and administrative support
to the Commission and shall be headed by an Executive Director.

The Executive Director shall be appointed by the Chairman. He or
she shall inter alia execute and administer the policies and decisions
of the Commission, attend the Commission’s deliberations, monitor the
implementation of the programs thereof, and manage the day-to-day
operations thereof.

In filing the positions for the interim secretariat of the
Commission, the employees of the abolished Presidential Commission
Against Graft and Corruption (PCAGC) may be considered provided that
they are especially qualified and have demonstrated moral probity and
dedication to public service without interruption of continued
government service.

PCAGC employees who will not be reconsidered shall be entitled to
separation and retirement benefits provided under RA 8291, otherwise
known as The GSIS Act of 1997, and other existing retirement rules and
laws.

SEC. 4. Functions of the Commission . — The Commission shall perform the following functions.

a. Formulate and implement a national anti-corruption framework
and program strategies and a corresponding action agenda of the
government in consultation with government agencies, private sector, and
civil society organizations;

b. Implement and coordinate policies aimed at preventing and
combating corruption at all levels in the government and preventing
conflicts of interest;

c. Undertake policy analysis and shepherd the passage of
appropriate legislation geared towards the prevention, control, and
elimination of corruption for submission to and consideration by the
President, who shall certify to Congress as urgent appropriate
legislative proposals that are vital to the anti-corruption program;

d. Monitor the performance of government agencies in the
implementation of the action agenda, provide policy advise thereto, and
establish a centralized database for these purposes;

e. Identify and investigate shortcomings and weaknesses in the
organization and management of public administrators and enterprises
that could facilitate the commission of acts and misconduct covered by
the existing laws against graft and corruption and advise government
departments/agencies, offices and local government units on
anti-corruption strategies and procedures for implementation;

f. Pre-screen and clear appointees to be confirmed by the Commission on Appointments upon request of the President.

g. Conduct sustained information and education drives aimed at preventing corruption and public misconduct;

h. Organize specialized training of staff members of the
Commission and representatives of private sector and civil society in
the prevention, investigation, and prosecution of graft and corrupt
practices;

i. Centralize information regarding acts and misconduct
communicated to it by the policy services and public authorities and by
persons responsible for auditing the accounts or sent to it by private
individuals;

j. Investigate or hear, motu propio or on complaint filed with
it in any form or manner, charges, reports, or information involving
the possible violation of graft and corrupt practices at all levels in
government by public officers and private persons alike;

k. Endorse to the Office of the Ombudsman or the Department of
Justice for prosecution, any matter that the Commission, after
investigation upon complaint by any person or at its own instance, shall
find to constitute graft and corrupt practices;

l. Forward to judicial authorities any records, documents or
information in its possession that the latter shall request in the
course of hearing and deciding acts that may constitute graft and
corrupt practices;

m. Render a periodic report on the progress of the
anti-corruption program to the President, Congress and the general
public, with the end in view of providing all sectors a balanced and
objective report on graft and corruption;

n. Absorb the functions and exercise the jurisdiction and
powers of the Presidential Commission Against Graft and Corruption
created and provided for under Executive Order No. 151, dated January
11, 1994, which for this purpose, is hereby abolished.

SEC. 5. Powers of the Commission . — The Commission shall have the following powers:

a. The Commission is hereby granted the powers of an
investigating body under Section 37, Chapter 9, Book I of the
Administrative Code of 1987 including the power to summon witnesses,
administer oaths, take testimony or evidence relevant to its
investigation, and to issue compulsory process to produce documents,
books, records and such other matters, in the performance of its
functions.

Any person who, without lawful excuse, fails to appear upon
summons issued under the authority of the preceding paragraph or who,
appearing before the Commission, refuses to take oaths, give testimony
or produce documents for inspection, when thereunto lawfully required,
shall be subject to discipline as in the case of contempt of court upon
application of the Commission before the proper court, in the manner
provided by law.

b. The Commission may, in coordination with the Commission on
Elections (COMELEC), verify the observance of the ceiling on electoral
expenditure and the accuracy of the election campaign accounts, assist
in the investigation of palpable and massive electoral fraud and monitor
the actions of the different boards of canvassers during elections.

c. The Commission may examine the execution of public contracts as to both tendering and results.

d. The Commission may verify that award of public works and
supply contracts and the assignment of operations by the public
authorities are conducted in a proper and honest manner.

e. The Commission may undertake a lifestyle check on any public officer/employee. In this regard, the Commission:

1. May request for copies of statement of asset and
liabilities and income tax return of any person holding public office;

2. May require a person holding public office to reveal
the source of his property, wealth, assets and interests, as well as
those of his or her spouse, departments and relatives, in accordance
with law;

3. May require submission, by the person acting as its
depository, of the register of declarations of gifts received by persons
holding public offices;

4. In case of reasonable suspicion regarding the above,
the Commission may seek to establish the reliability of such
declarations in cooperation with relevant national bodies.

f. The Commission may seek the cooperation of the private
sector, civil society, and other bodies (Local and international)
undertake anti-graft and corruption programs.

g. The Commission shall coordinate with the Inter-agency
Anti-Graft Coordinating Body for the purpose of effectively implementing
this Executive Order.

SEC. 6. Offenses Covered . — For purposes of this
Executive Order, the Commission shall have jurisdiction to investigate
possible violations of any of the following:

(a) Republic Act No. 3019, as amended, otherwise known as the “Anti-Graft and Corrupt Practices Act”;

(b) The provisions of Republic Act No. 1379 on the unlawful acquisition of property by a public officer or employee;

(c) Republic Act No. 6713, otherwise known as the “Code of
Conduct and Ethical Standards for Public Officials and Employees”;

(d) Section 46 (b) (1) to (6), Book V, Subtitle A, Chapter 6
of Executive Order No. 292, series of 1987, otherwise known as the
“Administrative Code of 1987”;   CSHDTE

(e) Any provision under Title Seven of the Revised Penal Code on Crimes Committed by Public Officers;

(f) Executive Order No. 226, series of 1995;

(g) Any other relevant law, executive orders, rules or regulations.

SEC. 7. The Commission shall promulgate or adopt its rules of procedure for the effective implementation of this Order.

SEC. 8. Total Support of Other Government Units . —
The Commission may call upon any government investigative and
prosecutorial agencies, including the National Bureau of Investigation
and the Philippine National Police, to make available their offices,
personnel and facilities to attain the objectives of this Executive
Order. The departments, bureaus, offices, agencies, or instrumentalities
including government-owned and controlled corporations are hereby
directed to extend such assistance and cooperation including detail
and/or deputization of personnel as the Commission may need in the
discharge of its functions.

SEC. 9. Referral to the Commission. — All offices,
committees, commissions, bureaus, departments, and government-owned and
controlled corporations in the Executive Department are hereby directed
to refer immediately to the Commission any complaint, charge, report,
or information of corruption against presidential appointees and
non-presidential appointees referred to under Section 4 of this
Executive Order. Such referral shall include not only the complaint,
report or information but also certified copies of all relevant and
pertinent records of the case.

SEC. 10. Organizational Units and Staffing . — The
Commission may create organizational units necessary for the performance
of its functions, subject to relevant laws, rules and regulations. Such
units shall be staffed by duly qualified personnel appointed by the
Executive Director upon approval of the Chairman.

The Commission is also authorized to engage the services of
resource persons, professionals and other personnel, known for moral
uprightness, probity and independence including a Commission Counsel,
Deputy Commission Counsel(s) or such other officials as may be required
for the effective performance of its functions and responsibilities, to
fix their duties and compensation, to organize the structure and
staffing pattern of the Commission; and to authorize the payment of
honoraria and/or allowances for deputized/detailed officers and
officials.

The Commission shall be exempted from Administrative Order No.
100, series of 1999. It may hire, at its discretion, new personnel
whether on a permanent, temporary, substitute, contractual, or casual
status.

SEC. 11. Compensation . — The Commission shall prepare its salary schedule in consultation with the Department of Budget and Management.

SEC. 12. Transitory Provisions . — The interim
secretariat referred to under Section 3 of this Executive Order shall
establish the regular secretariat and ensure the orderly transition to
the Commission within one (1) year upon approval of this Executive
Order.

All the records, facilities, equipments, property, rights, and
such other things arising from and incidental to the creation of the
Presidential Commission Against Graft and Corruption are hereby
transferred to the Commission.

SEC. 13. Appropriations . — The Commission shall have
an initial budget of FORTY MILLION PESOS (P40,000,000.00) which shall
partly be drawn from the remaining budget of the abolished Presidential
Commission Against Graft and Corruption and from the Organizational
Adjustment Fund. Appropriations for the succeeding years shall be
incorporated in the budget proposal for the Office of the President.

SEC. 14. Repealing Clause . — All orders, issuances,
rules and regulations or parts thereof inconsistent with this Executive
Order are hereby repealed or modified accordingly.

SEC. 15. Effectivity. — This Executive Order shall take effect immediately.

Adopted: 18 July 2000

By the President:

(Sgd.) RONALDO B. ZAMORA
Executive Secretary