DBP “NO GIFT POLICY”

Section I. RATIONALE

The Development Bank of the Philippines (DBP) hereby adopts this “No Gift Policy”:

1. In compliance with Section 29 of the Code of Corporate
   Governance for GOCCs (GCG Memorandum Circular No. 2012-07, s. 2012)
   which mandates that: “x x x Every Governing Board shall formally adopt a
   ‘No Gift Policy’ within the GOCC and ensure its full advertisement to
   the community and its strict implementation by particular set of rules”; and

2. Pursuant to the following constitutional and legal provisions:
   1. Section 27, Article II of the 1987 Constitution which states that “The
      State shall maintain honesty and integrity in the public service and
      take positive and effective measures against graft and corruption”;
   2. Section 1, Article XI of the 1987 Constitution which provides
      that “Public office is a public trust. Public officers and employees
      must, at all times, be accountable to the people; serve them with utmost
      responsibility, integrity, competence and loyalty, act with patriotism
      and justice; and lead modest lives”;
   3. Section 1 of the Anti-Graft and Corrupt Practices Act (RA 3019) which provides that: “It
      is the policy of the Philippine Government, in line with the principle
      that a public office is a public trust, to repress certain acts of
      public officers and private persons alike which constitute graft or
      corrupt practices or which may lead thereto”;
   4. Section 3 (b) and (c) of RA 3019 which declares as a corrupt practice the acts of: “Directly
      or indirectly requesting or receiving any gift, present, share,
      percentage, or benefit, for himself or for any other person, in
      connection with any contract or transaction between the Government and
      any other party, wherein the public officer in his official capacity has
      to intervene under the law” and “Directly or indirectly requesting or
      receiving any gift, present or other pecuniary or material benefit, for
      himself or for another, from any person for whom the public officer, in
      any manner or capacity, has secured or obtained, or will secure or
      obtain, any Government permit or license, in consideration for the help
      given or to be given, x x x.”;
   5. Section 7 (d) of the Code of Conduct and Ethical Standards for Public Officials and Employees (RA 6713) which mandates that “Public
      officials and employees shall not solicit or accept, directly or
      indirectly, any gift, gratuity, favor, entertainment, loan or use
      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. x x x; and
   6. Section 1, Rule IV of the Manual on Code of Ethics of the
      Development Bank of the Philippines which prohibits acceptance or
      solicitation by its officers and employees of gifts, donations or loans
      in the course of their official duties or in connection with any
      transaction which may be affected by the functions of their office.

Section II. DEFINITION OF TERMS

The terms used in this Circular shall mean as follows:

1. Bank/DBP – refers to the Development Bank of the Philippines.
2. Board of Directors/Directors – refer to the members of the Board of Directors of DBP.
3. Employee – includes regular, temporary, coterminous,
   directly-hired and casual rank and file employees and officers of the
   Bank, unless used in a more specific context.
4. Gift – refers to a thing or a right disposed of
   gratuitously, or any act of liberality, in favor of another who accepts
   it. It shall include, but not limited to, any gratuity, favor, service,
   discount or price concession, legacy (except from a relative), fee,
   compensation, cash, securities, entertainment, simulated sale or loan,
   or use of anything of monetary value, whether real or personal property.
5. Gifts of Nominal Value – refer to gifts which value does not exceed Five Hundred Pesos (P500.00).
6. Policy – refers to the “DBP No Gift Policy”.

In this Circular, reference to the male gender includes the female and singular includes the plural.

Section III. COVERAGE

This Policy shall apply to all employees of DBP and the members of its Board of Directors.

Section IV. RULES

1. “No Gift Policy” – Except as otherwise provided in this
   Policy, all employees of DBP and members of its Board of Directors,
   shall not solicit, demand, or accept, directly or indirectly, any gift
   from any person, group, association, or juridical entity, whether from
   the public or private sector, at any time, on or off the work premises,
   where such gift is either: Given in the course of their official duties
   or in connection with any transaction which may be affected by the
   functions of their office;
   1. Illegal or in violation of laws;
   2. Part of an attempt or agreement to do anything in return;
   3. Given to influence the actions of directors or employees; or
   4. Create the appearance of a conflict of interest.
2. Allowable Gifts – The following gifts shall be exempted from the prohibition under this Policy:
   1. Certificates, plaques, cards, thank you notes, or other
      written forms of souvenir or mark of courtesy, recognition, or
      appreciation;
   2. Seminar items (e.g. pens, hand-outs, etc.) or any other materials which are uniformly given to all participants in the seminar;
   3. Books, pamphlets, publications, data and other information
      or reading materials that are directly useful to the Bank in the
      performance of its mandates, objectives, and are given by individuals or
      organizations that have no pending business with the Bank as to create
      an actual or potential conflict of interest;
   4. Gifts given on special occasions between and among DBP employees or directors;
   5. Scholarships or fellowship grants, travel grants or expenses
      for travel taking place within or outside of the Philippines (such as
      allowances, transportation, food and lodging) if appropriate and
      consistent with the interest of the government, and with prior approval
      by the proper authorities in accordance with applicable laws or
      regulations;
   6. Honoraria given as speaker or resource person in seminars
      when such honoraria are authorized under existing laws or rules and
      regulations and subject to compliance with all the requirements
      prescribed therein;
   7. Working lunches or dinners with clients or other
      stakeholders of the Bank if such lunches or dinners are inevitable in
      the course of official transaction;
   8. Product samples of nominal value given by clients or
      potential clients if giving such samples are allowed under the law or
      part of the standard procedures mandated by law or the rules (e.g. rules
      on bidding); and
   9. Unsolicited gifts of nominal or insignificant value
      provided it is not given in anticipation of or in exchange for a favor
      from the public official or employee.

3. Posting of No Gift Policy – Notices of this Policy shall
   be posted in conspicuous areas of all Departments, Regional Marketing
   Centers (RMCs) and Branches of the Bank.

4. Duty of Director or Employee if Gift is Offered or Given –
   If any gift prohibited under this Policy is offered or given to any
   director or employee, the latter shall politely decline acceptance of
   such gift and courteously inform the offeror or giver about the Bank’s
   “No Gift Policy”.

5. Duty of Director or Employee if Gift is Inevitably Received
   – In the event that, despite diligent efforts to refuse acceptance, any
   gift is inevitably received because it was sent through modes other
   than personal delivery or the offeror insisted acceptance, the recipient
   of the gift shall, within twenty-four (24) hours from receipt, report
   the acceptance thereof and turn-over the gift to the Property Services
   Management (PSM), RMC or Branch as the case may be, for proper
   documentation and handling of the gift in accordance with the provisions
   of this Policy.

6. Gift Registry – Except for Section IV (B), Nos. 1, 2, 3
   and 4, any gift received, regardless of value or kind, shall be
   registered in a Gift Registry to be maintained by the PSM and RMC or
   Branch, as the case may be. The following information about the gift
   shall be recorded in the said registry:
   1. Purpose
   2. Nature, form, or kind
   3. Amount/value (if applicable)
   4. Date and time of receipt
   5. Name, office address, and contact number of the giver
   6. Name and position of the director/employee who received the gift
   7. Date and time of delivery to the Gift Registry
   8. Such other information as the PSM, RMC, or Branch may deem necessary
7. Donation of Gifts to Charitable Institutions – All gifts
   received shall be donated to appropriate charitable or social welfare
   institutions to be chosen from a list to be provided by the Corporate
   Affairs Center (CAC) for the Head Office, and in the case of RMCs or
   Branches, to any charitable or social welfare institution in their
   respective areas. An acknowledgment letter shall be sent to the giver of
   the gift informing the latter about the donation to the said
   institution/s.

8. Adoption of “No Gift Policy” in all Contracts of the Bank
   – A provision adopting this Policy shall be incorporated in all
   contracts entered into by the Bank with its consultants, contractors,
   suppliers, service providers, vendors or other such persons and
   institutions who have business, contractual or other similar dealings or
   transactions with the Bank.

9. Policy Implementation and Monitoring – The Corporate
   Governance Office (CGO) together with Sector, Department, RMC, and
   Branch Heads shall ensure full advertisement, monitoring, and strict
   implementation of this Policy. A monthly report of the gifts received
   and donated or that no gift has been received shall be submitted by PSM,
   RMCs, and Branches to CGO within the first five (5) working days of the
   month.

Section V. PENALTIES FOR VIOLATION

A. Violation by an employee of the provisions of this Policy
shall be dealt with in accordance with the Bank’s Implementing
Guidelines of the Revised Rules on Administrative Cases, without
prejudice to any civil or criminal liability that may arise therefrom
under other special laws. B. Violation by a director of the provisions
of this Policy shall be dealt with in accordance with applicable laws.

Section VI. AMENDMENT

This Policy shall be subject to periodic review and may be
amended by the Board of Directors as often as it may deem necessary.

Section VII. EFFECTIVITY

This Circular shall take effect upon its approval by the Board of Directors.

(SGD) GIL A. BUENAVENTURA

President & Chief Executive Officer