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OSG Bill
House Bill No. 5233
Senate Bill 1409
Annotated
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.
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
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.
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
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
(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.
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:
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;
(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.
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.
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.
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
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)
The Solicitor General shall appoint the Associate Solicitors and all
administrative personnel.
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.
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.
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.
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
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
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)
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)
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
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
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
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
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
(d) All other income, fees and revenues earned and collected by
the Office of the Solicitor General.
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.
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)
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)
17
members from the legal division of all GOCCs; and at least 2 lawyers each from the
OSG, the OGCC, and the PCGG.51
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 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