National Independent Commission Against Corruption Act

Din: TWENTIETH CONGRESS OF THE REPUBLIC OF THE PHILIPPINES JUL -2 P5:35 First Regular Session RICH SENATE Senate Bill No. Introduced by Senator JOEL VILLANUEVA AN ACT CREATING THE NATIONAL INDEPENDENT COMMISSION AGAINST CORRUPTION (NICAC), APPROPRIATING FUNDS THEREFOR AND FOR OTHER PURPOSES EXPLANATORY NOTE Good governance serves as the foundation for development. It ensures transparency, demands accountability, and upholds the rule of law across all levels of government. However, it cannot be denied that in the work to foster growth, there is also the perennial fight against systemic and endemic corruption which remains one of the most pervasive issues affecting the country's political, social, and economic progress, eroding public trust, and disproportionately affecting the most vulnerable sectors of our society. While the government's efforts to address corruption has made some inroads, much is still needed to be done. According to the 2024 Transparency International Corruption Perceptions Index (CPI), the Philippines ranks 114th out of 180 countries, with a score of just 33 out of 100, reflecting a serious perceived level of public sector corruption. Moreover, in the 2020 Global Corruption Barometer, it was found that 19% of Filipinos who used public services in the previous 12 months paid a bribe. 2 This underscores the challenges that the country is facing in implementing anti- corruption measures, often attributable to political interference and weak enforcement mechanisms. Indeed, the effects of corruption are far-reaching. It diverts public resources away from essential services, such as education, healthcare, and infrastructure and 1 Transparency International. Corruption Perceptions Index 2024 - Philippines. Available at https://www.transparency.org/en/cpi/2024/index/phl (Accessed on 23 June 2025). 2 Transparency International. Corruption Philippines. Available at https://www.transparency.org/en/gcb/asia/asia-2020/results/phl (Accessed on 23 June 2025).

into the pockets of unscrupulous government officials. It also discourages businesses from making substantial investments in the Philippines. Recognizing the need to strengthen the anti-corruption framework in the Philippines, this bill creates the National Independent Commission Against Corruption (NICAC) as an attached agency of the Office of the Ombudsman. The NICAC is largely patterned after Hong Kong's Independent Commission Against Corruption which successfully eradicated syndicated corruption in Hong Kong and helped transform it into one of the most transparent and well-governed regions in Asia. Under this measure, the NICAC would be the dedicated body tasked to implement and coordinate anti-corruption policies, conduct investigations, and promote transparency across all levels of government. A National Anti-Corruption Plan (NACP) would also be formulated to ensure a strategic and comprehensive approach to eliminating corruption. Ultimately, the creation of NICAC would mark a significant step towards promoting integrity in public service and fostering a culture of accountability and transparency. With enhanced public confidence in the government's commitment to fighting corruption, the Philippines could also attract more foreign investments and improve its global reputation. Most importantly, beyond being an essential tool to stop corruption, the NICAC would be a long-term investment for the country's future and for the wellbeing of all Filipinos. For these reasons, the immediate passage of this bill is earnestly sought.

TWENTIETH CONGRESS OF THE REPUBLIC OF THE PHILIPPINES JUL -2 P5:35 First Regular Session RAT. . ... SENATE Senate Bill No. Introduced by Senator JOEL VILLANUEVA AN ACT CREATING THE NATIONAL INDEPENDENT COMMISSION AGAINST CORRUPTION (NICAC), APPROPRIATING FUNDS THEREFOR AND FOR OTHER PURPOSES Be it enacted by the Senate and House of Representatives of the Philippines in Congress assembled:

SECTION 1. Short Title. - This Act shall be known as the "National

Independent Commission Against Corruption Act."

SEC. 2. Declaration of Policy, - It is the declared policy of the State to

maintain honesty and integrity in public service and to take effective and efficient measures in the battle against graft and corruption. Towards this end, the State shall continuously institute reforms to ensure that graft and corruption is eliminated in all 7 levels of the government.

SEC. 3. Organization. - There is hereby created the National Independent

9 Commission Against Corruption, hereinafter referred to as the Commission, to implement and coordinate policies for the prevention, control, and ultimately, the elimination of graft and corrupt practices as defined under relevant laws at all levels of the government. The Commission shall be attached to the Office of the Ombudsman for policy coordination.

SEC. 4. Powers and Functions of the Commission. - The Commission shall

have the following powers and functions:

Formulate and implement a National Anti-Corruption Plan (NACP) and action agenda, and reinforce program strategies in accordance with the NACP; b) Examine the bidding, negotiation, execution, and implementation of public contracts in pursuit of the objectives of the NACP; Verify if the award of public works and supply contracts are conducted properly in accordance with the law, pursuant to the goals provided for in the NACP; 7d) Undertake a comprehensive audit, which shall include, but not be limited to, lifestyle checks on any public officer/employee; e) Endorse to the Office of the Ombudsman for appropriate action findings of a prima facie case of violation of anti-corruption laws in the exercise of its powers under items (b) to (d) above, upon complaint by any person or motu proprio; f) Conduct sustained information and education drives aimed at preventing corruption and public misconduct; Organize specialized training of personnel of the government and representatives from the private sector and civil society in the prevention, investigation, and prosecution of graft and corrupt practices; and h) Perform such other functions as may be necessary to achieve the objectives of this Act.

SEC. 5. National Anti-Corruption Plan. - Within ninety (90) days from the

approval of this Act, the Commission shall submit to the Office of the Ombudsman and to Congress a five (5)-year plan and study containing detailed policy proposals for the elimination of graft and corruption in all branches, offices, agencies, and instrumentalities of the government. The NACP shall also be disseminated to all government agencies.

SEC. 6. Composition of the Commission. - The Commission shall be headed

by the Ombudsman as its Chairperson. He/she shall be assisted by two (2) Commissioners who shall serve on a full-time basis. a) The Commissioners shall include at least one (1) lawyer, accountant, or member of the academe who is in the field of public administration. Each Commissioner shall be selected and appointed by the President, without the requirement of confirmation, from a pool of candidates to be nominated by peak professional organizations of accountants or lawyers or by the university or college

administration if the nominee is a member of the academe. A "peak professional organization" refers to an organization duly recognized by members as representative of, and having the largest active membership in their profession, and has been in existence for at least ten (10) years. The mechanics of the nomination process shall be provided for in the implementing rules and regulations of this Act. b) The Commissioners shall be citizens of the Philippines, at least thirty-five (35) years of age, known, and recognized for moral uprightness and patriotism, of unquestionable integrity, and recognized experts in any of the fields of law, accounting, or public administration. They must not have been candidates for any elective national or local office in the immediately preceding election, whether regular or special. The Commissioners shall serve for three (3) years and may be reappointed as such for another term of three (3) years; Provided, That the reappointment of a Commissioner shall follow the nomination process outlined in this Section. d) The President of the Philippines may remove any member of the Commission, upon compliance with due process, for any of the following reasons: (1) The member suffers from physical or mental incapacity that renders him or her incapable of properly discharging the duties and responsibilities of the Commission, and such incapacity has lasted for more than six (6) months; (2) The member has committed acts that are shown prima facie to be fraudulent or illegal or manifestly opposed to the aims and interests of the Commission and/or the government; or (3) The member ceases to possess the qualifications required under this Act or its implementing rules and regulations. e) The Commissioners shall not hold any public office or employment during their tenure. Except as otherwise provided by law, in no case shall any member of the Commission appoint representatives to act on his/her behalf. f) The Commissioners shall have the same rank and emoluments as that of a Deputy Ombudsman.

SEC. 7. The Secretariat. - The Commission shall be assisted by a Secretariat

to be headed by an Executive Director.

The Secretariat shall be composed of individuals of known moral probity and dedication to public service. It shall provide technical and administrative support to the Commission and shall oversee all its operational activities. The Secretariat's Executive Director shall be appointed by the Chairperson with the concurrence of the Commissioners. The Executive Director shall attend the 6 Commission's deliberations, monitor the implementation of the programs of the 7 Commission, and manage its day-to-day operations.

SEC. 8. Organizational Structure. - The Commission shall be composed of

three departments: 10 a) The Operations Department, which shall carry out the investigation and endorsement to the proper agency of cases investigated for the prosecution of offenses; The Corruption Prevention Department, which shall carry out assessment of areas in government offices where corruption would be most likely and make recommendations on how opportunities for corruption can be eliminated or reduced; and The Community Relations Department, which shall gather support and information from the public and work towards changing the public attitude regarding corruption.

SEC. 9. Transparency and Availability of Records. - The Commission shall

maintain and preserve its records, documents, and papers, and shall make the same available to the public, except when disclosure will pose serious damage to the Commission's case or when a party would be deprived of his/her right to a fair and impartial trial.

SEC. 10. Malicious Prosecution. - Any complaint found to have been initiated

with malice shall be dealt with in accordance with relevant laws.

SEC. 11. Restrictions. - No writ of injunction shall be issued by any court to

delay an investigation being conducted by the Commission.

SEC. 12. Franking Privilege. - All official mail letters and telegrams of the

Commission addressed for delivery within the Philippines shall be received, transmitted, and delivered free of charge: Provided, That such mail matters when

1 addressed to private persons or non-government offices shall not exceed one hundred twenty (120) grams.

SEC. 13. Support of Other Government Units. - The Commission may

require any government agency to make available their personnel and facilities to attain the objectives of this Act. SEC, 14. Annual Report. - The Commission shall, on or before June 30 of each 7 year, submit to the President and to Congress a report on its performance in combatting grait and corruption. The Commission shall furnish a copy of such report to the Office of the Ombudsman and shall also make available a copy of the report to 10 the general public.

SEC. 15. Appropriations. - For the first year of the implementation of this Act,

an initial amount of Fifty Million Pesos (P50,000,000.00) is hereby appropriated for the implementation of this Act. Thereafter, the amount necessary to carry out the provisions of this Act shall be included in the General Appropriations Act.

SEC. 16. Implementing Rules and Regulations. - Within ninety (90) days

from the effectivity of this Act, the Commission shall, in consultation with the head of 17 the Development Academy of the Philippines, the chairperson of the Civil Service 18 Commission, the chairperson of the Commission on Audit, the Ombudsman, a representative from the Sandiganbayan, and other relevant government agencies and stakeholders, promulgate the implementing rules and regulations for the proper implementation of this Act.

SEC. 17. Separability Clause. - If any portion or provision of this Act is

declared unconstitutional, the remainder hereof or any provisions not affected thereby shall remain in force and effect.

SEC. 18. Repealing Clause. - Any law, presidential decree or issuance,

executive order, letter of instruction, rule, or regulation inconsistent with the provisions of this Act is hereby repealed or modified accordingly.

SEC. 19. Effectivity. - This Act shall take effect fifteen (15) days after its

complete publication in the Official Gazette or in a newspaper of general circulation. Approved,