PEOPLE OF THE PHILIPPINES, plaintiff-appellee, At about 2:00 o'clock of the same day, the hostages were allowed

vs. to eat. The four accused also took turns eating while the others
BIENVENIDO SALVILLA, REYNALDO CANASARES, RONALDO stood guard. Then, Appellant told Severino to produce
CANASARES, and SIMPLICIO CANASARES, BIENVENIDO P100,000.00 so he and the other hostages could be released.
SALVILLA, defendant-appellant. Severino answered that he could not do so because it was a
Accused Bienvenido Salvilla alone appeals from the Decision of Saturday and the banks were closed.
the Regional Trial Court, Branch 28, Iloilo City, * dated 29 August In the meantime, police and military authorities had surrounded
1988, in Criminal Case No. 20092, finding him and his co-accused the premises of the lumber yard. Major Melquiades B. Sequio
Reynaldo, Ronaldo and Simplicio, all surnamed Canasares, guilty Station Commander of the INP of Iloilo City, negotiated with the
beyond reasonable doubt of the crime of "Robbery with Serious accused using a loud speaker and appealed to them to surrender
Physical Injuries and Serious Illegal Detention" and sentencing with the assurance that no harm would befall them as he would
them to suffer the penalty of reclusion perpetua. accompany them personally to the police station. The accused
The Information filed against them reads: refused to surrender or to release the hostages.
The undersigned City Fiscal accuses BIENVENIDO Thereafter, OIC Mayor, Rosa Caram, of Iloilo City arrived and
SALVILLA, REYNALDO CANASARES, RONALDO joined the negotiations. In her dialogue with the accused, which
CANASARES, and SIMPLICIO CANASARES, whose lasted for about four hours, Appellant demanded P100,000.00, a
maternal surnames, dated and places of birth cannot be coaster, and some raincoats. She offered them P50,000.00
ascertained of the crime of ROBBERY WITH SERIOUS instead, explaining the difficulty of raising more as it was a
PHYSICAL INJURIES AND SERIOUS ILLEGAL DETENTION Saturday. Later, the accused agreed to receive the same and to
(Art, 294, paragraph 3, in conjunction with Article 267 of release Rodita to be accompanied by Mary Choco in going out of
the Revised Penal Code), committed as follows: the office. When they were out of the door, one of the accused
That on or about the 12th day of April, 1986, in the City whose face was covered by a handkerchief, gave a key to Mayor
of Iloilo, Philippines and within the jurisdiction of this Caram. With this, Mayor Caram unlocked the padlocked door and
Court, said accused, conspiring and confederating handed to Rodita the P50,000.00, which the latter, in turn, gave
among themselves, working together and helping one to one of the accused. Rodita was later set free but Mary was
another, armed with guns and handgrenade and with herded back to the office.
the use of violence or intimidation employed on the Mayor Caram, Major Sequio and even volunteer radio newscasters
person of Severino Choco, Mary Choco, Mimie Choco and continued to appeal to the accused to surrender peacefully but
Rodita Hablero did then and there wilfully, unlawfully they refused.1âwphi1 UItimatums were given but the accused did
and criminally take and carry away, with intent of gain, not budge. Finally, the police and military authorities decided to
cash in the amount of P20,000.00, two (2) Men's wrist launch an offensive and assault the place. This resulted in injuries
watches, one (1) Lady's Seiko quartz wrist watch and to the girls, Mimie and Mary Choco as well as to the accused
one (1) Lady's Citizen wrist watch and assorted Ronaldo and Reynaldo Canasares. Mary suffered a "macerated
jewelries, all valued at P50,000.00; that on the occasion right lower extremity just below the knee" so that her right leg
and by reason of said robbery, Mary Choco suffered had to be amputated. The medical certificate described her
serious physical injuries under paragraph 2 of Article condition as "in a state of hemorrhagic shock when she was
263, Bienvenido Salvilla likewise suffered serious brought in to the hospital and had to undergo several major
physical injuries and Reynaldo Canasares also suffered operations during the course of her confinement from April 13,
physical injuries; that the said accused also illegally 1986 to May 30, 1986.
detained, at the compound of the New Iloilo Lumber "
Company, Iznart Street, Iloilo City, Severino Choco, For his part, Appellant Salvilla confirmed that at about noon time
owner/proprietor of said Lumber Company, Mary Choco, of 12 April 1986 he and his co-accused entered the lumber yard
Mimie Choco, who is a minor, being 15 years of age, and and demanded money from the owner Severino Choco He
Rodita Hablero, who is a salesgirl at said Company; that demanded P100,000.00 but was given only P5,000.00, which he
likewise on the occasion of the robbery, the accused also placed on the counter of the office of the lumber yard. He
asked and were given a ransom money of P50,000.00; admitted that he and his co-accused kept Severino, his daughters,
that the said crime was attended by aggravating and Rodita inside the office. He maintained, however, that he
circumstances of band, and illegal possession of firearms stopped his co-accused from getting the wallet and wristwatch of
and explosives; that the amount of P20,000.00, the Severino and, like the P5,000.00 were all left on the counter, and
ransom money of P50,000.00, two (2) Men's wrist were never touched by them. He claimed further that they had
watches, two (2) lady's wrist watches, one (1) .38 never fired on the military because they intended to surrender.
caliber revolver and one (1) live grenade were recovered Appellant's version also was that during the gunfire, Severino's
from the accused; to the damage and prejudice of the daughter stood up and went outside; he wanted to stop her but
New Iloilo Lumber Company in the amount of he himself was hit by a bullet and could not prevent her.
P120,000.00. Appellant also admitted the appeals directed to them to surrender
The evidence for the prosecution may be re-stated as follows: but that they gave themselves up only much later.
On 12 April 1986, a robbery was staged by the four accused at After trial, the Court a quo meted out a judgment of conviction
the New Iloilo Lumber Yard at about noon time. The plan was and sentenced each of the accused "to suffer the penalty
hatched about two days before. The accused were armed with of reclusion perpetua, with the accessory penalties provided by
homemade guns and a hand grenade. When they entered the law and to pay the costs."
establishment, they met Rodita Hablero an employee thereat who Appellant Salvilla's present appeal is predicated on the following
was on her way out for her meal break and announced to her that Assignments of Error:
it was a hold-up. She was made to go back to the office and there 1. The lower court erred in holding that the crime
Appellant Salvilla pointed his gun at the owner, Severino Choco, charged was consummated and in not holding that the
and his two daughters, Mary and Mimie the latter being a minor same was merely attempted.
15 years of age, and told the former that all they needed was 2. The lower court erred in not appreciating the
money. Hearing this, Severino told his daughter, Mary, to get a mitigating circumstance of voluntary surrender."
paper bag wherein he placed P20,000.00 cash (P5,000.00, Upon the facts and the evidence, we affirm.
according to the defense) and handed it to Appellant. The defense contends that "The complete crime of larceny
(theft/robbery) as distinguished from an attempt requires
Thereafter, Severino pleaded with the four accused to leave the asportation or carrying away, in addition to the taking, In other
premises as they already had the money but they paid no heed. words, the crime of robbery/theft has three consecutive stages:
Instead, accused Simplicio Canasares took the wallet and 1) the giving 2) the taking and 3) the carrying away or
wristwatch of Severino after which the latter, his two daughters, asportation And without asportation the crime committed is only
and Rodita, were herded to the office and kept there as hostages. attempted" (Memorandum for Appellant Salvilla, Records, p. 317).

1
There is no question that in robbery, it is required that there be a The fact, too, that Rodita was an employee of Severino would not
taking of personal property belonging to another. This is known as lessen her credibility. The defense has not proven that she was
the element of asportation the essence of which is the taking of a actuated by any improper motive in testifying against the
thing out of the possession of the owner without his privity and accused.
consent and without the  animus revertendi  (Aquino, Revised In the last analysis, the basic consideration centers around the
Penal Code, p. 97, citing 5 C.J. 607). In fact, if there is no actual credibility of witnesses in respect of which the findings of the Trial
taking, there can be no robbery. Unlawful taking of personal Court are entitled to great weight as it was in a superior position
property of another is an essential part of the crime of robbery. to assess the same in the course of the trial (see People vs.
Appellant insists that while the "giving" has been proven, the Ornoza G.R. No. L-56283, 30 June 1987, 151 SCRA 495; People
"taking" has not. And this is because neither he nor his three co- vs. Alcantara, G.R. No. L-38042, 30 June 1987, 151 SCRA 326).
accused touched the P5,000.00 given by Severino nor the latter's Anent the second assignment of error, the "surrender" of the
wallet or watch during the entire incident; proof of which is that Appellant and his co-accused cannot be considered in their favor
none of those items were recovered from their persons. to mitigate their liability. To be mitigating, a surrender must have
Those factual allegations are contradicted by the evidence. Rodita, the following requisites: (a) that the offender had not been
the lumberyard employee, testified that upon demand by actually arrested; (b) that the offender surrendered himself to a
Appellant, Severino put P20,000.00 inside a paper bag and person in authority or to his agent; and (c) that the surrender was
subsequently handed it to Appellant. In turn, accused Simplicio voluntary (People vs. Canamo, G.R. No. L-62043, 13 August
Canasares took the wallet and wristwatch of Severino. In respect 1985, 138 SCRA 141).
of the P50,000.00 from Mayor Caram, Rodita declared that the The "surrender" by the Appellant and his co-accused hardly meets
Mayor handed the amount to her after she (the Mayor) had these requirements. They were, indeed, asked to surrender by the
opened the padlocked door and that she thereafter gave the police and military authorities but they refused until only much
amount to one of the holduppers. The "taking" was, therefore, later when they could no longer do otherwise by force of
sufficiently proved (TSN, July 1, 1987, pp. 12-13, 15-16, 27-31). circumstances when they knew they were completely surrounded
The money demanded, and the wallet and wristwatch were within and there was no chance of escape. The surrender of the accused
the dominion and control of the Appellant and his co-accused and was held not to be mitigating as when he gave up only after he
completed the taking. was surrounded by the constabulary and police forces (People vs.
The State established a "taking" sufficient to support a Sigayan et al., G.R. Nos. L-18523-26, 30 April 1966, 16 SCRA
conviction of robbery even though the perpetrators were 839; People vs. Mationg G.R. No. L-33488, 29 March 1982, 113
interrupted by police and so did not pick up the money SCRA 167). Their surrender was not spontaneous as it was
offered by the victim, where the defendant and an motivated more by an intent to insure their safety. And while it is
accomplice, armed with a knife and a club respectively, claimed that they intended to surrender, the fact is that they did
had demanded the money from the female clerk of a not despite several opportunities to do so. There is no voluntary
convenience store, and the clerk had complied with their surrender to speak of (People vs. Dimdiman 106 Phil. 391
instructions and placed money from the register in a [1959]).
paper bag and then placed the bag on the counter in All told, the assigned errors remain unsubstantiated and we find
front of the two men; these actions brought the the guilt of the accused-appellant, Bienvenido Salvilla, established
money within the dominion and control of defendant and beyond reasonable doubt.
completed the taking. (Johnson vs. State, 432 So 2d Although unassigned as an error, we deem it necessary to turn
758). now to the nature of the linked offenses involved and the penalty
"Severance of the goods from the possession of the imposed by the Trial Court.
owner and absolute control of the property by the
taker,  even for an instant, constitutes asportation Appellant and his co-accused were charged in the Information
(Adams vs. Commonwealth, 154 SW 381; State vs. with "Robbery with Serious Physical Injuries and Serious Illegal
Murray, 280 SW 2d 809; Mason vs. Commonwealth, 105 Detention ("Art. 295, par. 3, in conjunction with Art. 267, RPC )
SE 2d 149) [Emphasis supplied]. and sentenced to reclusion perpetua. We agree with the Trial
It is no defense either that Appellant and his co-accused had no Court that a complex crime under Article 48 of the Revised Penal
opportunity to dispose of the personalities taken. That fact does Code has been committed such that the penalty for the more
not affect the nature of the crime, From the moment the offender serious offense of Serious Illegal Detention (Art. 267, Revised
gained possession of the thing, even if the culprit had no Penal Code), or "reclusion perpetua to death," is to be imposed
opportunity to dispose of the same, the unlawful taking is instead of the penalty prescribed for Robbery with Serious
complete (Reyes, Revised Penal Code Annotated, Book II, 1981 Physical Injuries (Art. 294 (3), which is reclusion temporal.
ed., p. 594). Under Article 48, a complex crime arises "when an offense is a
The crime is consummated when the robber acquires necessary means for committing the other." The term "necessary
possession of the property, even if for a short time, and means" does not connote indispensable means for if it did then
it is not necessary that the property be taken into the the offense as a "necessary means" to commit another would be
hands of the robber, or that he should have actually an indispensable element of the latter and would be an ingredient
carried the property away, out of the physical presence thereof. The phrase "necessary means" merely signifies that one
of the lawful possessor, or that he should have made his crime is committed to facilitate and insure the commission of the
escape with it" (People vs. Quinn, 176 P 2d 404; Woods other (Aquino, Revised Penal Code, Vol. I, 1987 ed., p.
vs. State, 220 SW 2d 644; People vs. Beal, 39 P 2d 504; 624, citing Dissent, Montemayor, J., Amado Hernandez, 99 Phil.
People vs. Clark, 160 P 2d 553). 515). In this case, the crime of Serious Illegal Detention was such
a "necessary means" as it was selected by Appellant and his co-
Contrary to Appellant's submission, therefore, a conviction for accused to facilitate and carry out more effectively their evil
consummated and not merely attempted Robbery is in order. design to stage a robbery.
It is the contention of Appellant that Rodita could not have seen
the taking because the place was dark since the doors were The facts of this case differ from those in People vs. Astor, et al.
closed and there were no windows. It will be recalled, however, (G.R. Nos. L-71765-66, 29 April 1987, 149 SCRA 325) where the
that Rodita was one of the hostages herself and could observe the accused were convicted of Robbery but acquitted in the case for
unfolding of events. Her failure to mention the taking in her sworn Serious Illegal Detention and where it was held that "the
statement would not militate against her credibility, it being detention is absorbed in the crime of robbery." For one, in Astor,
settled that an affidavit is almost always incomplete and there were two (2) separate Informations filed, one for Robbery
inaccurate and does not disclose the complete facts for want of and another for Serious Illegal Detention. In the present case,
inquiries or suggestions (People vs. Andaya, G.R. No. L-63862, 31 only one Information was filed charging the complex offense. For
July 1987, 152 SCRA 570; People vs. Tan, et al., 89 Phil. 337 another, in Astor, the robbery had already been consummated
[1951]). and the detention was merely to forestall the capture of the
robbers by the police. Not so in this case, where the detention
2
was availed of as a means of insuring the consummation of the
robbery. Further, in Astor,  the detention was only incidental to
the main crime of robbery so that it was held therein:
. . . were appellants themselves not trapped by the early
arrival of the police at the scene of the crime, they
would have not anymore detained the people inside
since they have already completed their job. Obviously,
appellants were left with no choice but to resort to
detention of these people as security, until
arrangements for their safe passage were made. This is
not the crime of illegal detention punishable under the
penal laws but an act of restraint in order to delay the
pursuit of the criminals by peace officers (People v. Sol, PEOPLE VS SALVILLA
9 Phil. 265; People v. Uday 55 Phil. 167, cited in the Facts:
Revised Penal Code, Aquino, Vol. 3, 1976 ed., p. 1337).  Petitioner: Bienvenido Salvilla
Where the victims in a robbery case were detained in  April 12, 1986, at about noon time – Petitioner, together
the course of robbery, the detention is absorbed by the with Reynaldo, Ronaldo and Simplicio (all surnamed
crime of robbery (P. v. Baysa, 92 Phil. 1008, id.). In the Canasares), staged a robbery at the New Iloilo Lumber
case at bar, the detention was only incidental to the Yard
main crime of robbery, and although in the course  They were armed with homemade guns and a hand
thereof women and children were also held, that threats grenade
to kill were made, the act should not be considered as a  On their way inside the establishment, they met Rodita
separate offense. Appellants should only be held guilty Habiero, an employee there who was on her way out for
of robbery. her meal break, and informed her that it was a hold-up.
In contract, the detention in the case at bar was not only  They went inside the office and the petitioner pointed his
incidental to the robbery but was a necessary means to commit gun at Severino Choco, the owner, and his two
the same.1âwphi1 After the amount of P20,000.00 was handed to daughters, Mary and Mimmie. They informed Severino
Appellant, the latter and his co-accused still refused to leave. The that all they needed was money.
victims were then taken as hostages and the demand to produce  Severino asked Mary to get a paper bag wherein he
an additional P100,000.00 was made as a prerequisite for their placed P20,000 cash (P5000 acc to the defense) and
release. The detention was not because the accused were trapped handed it to the petitioner.
by the police nor were the victims held as security against the  Simplicio Canasares took the wallet and wristwatch of
latter. The detention was not merely a matter of restraint to Severino after which the latter, his 2 daughters and
enable the malefactors to escape, but deliberate as a means of Rodita were kept inside the office.
extortion for an additional amount. The police and other  According to the appellant, he stopped Severino from
authorities arrived only much later after several hours of getting the wallet and watches.
detention had already passed. And, despite appeals to appellant  At about 2:00 of the same day, the appellant told
and his co-accused to surrender, they adamantly refused until the Severino to produce P100,000 so he and the other
amount of P100,000.00 they demanded could be turned over to hostages can be released. Severino told him it would be
them. They even considered P50,000.00, the amount being hard to do that since banks are closed because it was a
handed to them, as inadequate. Saturday
The foregoing features also distinguish this case from those of  The police and military authorities had surrounded the
U.S. v. Sol, 9 Phil. 265 [1907] where the restraint was for no lumber yard. Major Melquiades Sequio, Station
other purpose than to prevent the victims from reporting the Commander of the INP of Iloilo City, negotiated with the
crime to the authorities; from People v. Gamboa, 92 Phil. 1085 accused and appealed to them to surrender. The
[1953] where the victims were taken to a place one kilometer accused refused to surrender and release the hostages.
away and shot in order to liquidate the witnesses to the robbery;  Rosa Caram, OIC Mayor of Iloilo City, joined the
from People v. Baysa, 92 Phil. 1008 [1953]; People v. Manzanilla, negotiations. Appellant demanded P100,000, a coaster,
43 Phil. 167 [1922], all of which cases were cited in  Astor and and some raincoats. Caram offered P50,000 instead.
where the victims were only incidentally detained so that the Later, the accused agreed to receive the same and to
detention was deemed absorbed in robbery. release Rodita to be accompanied by Mary in going out
In other words, unlike in the above cases, the elements of the of the office. One of the accused gave a key to Mayor
offense of Serious Illegal Detention are present in this case. The Caram and with the key, Mayor Caram unlocked the
victims were illegally deprived of their liberty. Two females (Mary door and handed to Rodita P50,000, which Rodita gave
and Minnie) and a minor (Minnie), a specified circumstance in to one of the accused.
Article 267 (3), were among those detained. The continuing  Rodita was later set free but Mary was herded back to
detention was also for the purpose of extorting ransom, another the office.
listed circumstance in Article 267 (last parag.) not only from the  The police and military authorities decided to assault the
detained persons themselves but even from the authorities who place when the accused still wouldn’t budge after more
arrived to rescue them. ultimatums. This resulted to injuries to the girls, as well
It follows then that as the detention in this case was not merely as to the accused Ronaldo and Reynaldo Canasares.
incidental to the robbery but a necessary means employed to Mary’s right leg had to be amputated due to her injuries.
facilitate it, the penalty imposed by the Trial Court is proper.  The appellant maintained that the money, wallet and
WHEREFORE, the judgment appealed from is hereby AFFIRMED. watches were all left on the counter and were never
Proportionate costs. touched by them. He also claimed that they never fired
SO ORDERED. on the military because they intended to surrender.
Issues:
 WON the crime of robbery was consummated
 WON there was a mitigating circumstance of voluntary
surrender
Ratio:
 Yes. The robbery shall be deemed consummated if the
unlawful “taking” is complete.
Unlawful taking of personal property of another is an essential
part of the crime of robbery. The respondent claimed that none
of the items (money, watches and wallet) were recovered from
3
them. However, based on the evidence, the money demanded, The death sentence imposed upon Apolonio Apduhan, Jr.
the wallet and the wristwatch were within the dominion and by the court a quo is reduced to reclusion perpetua, the judgment
control of the appellant and his co-accused and thus the taking a quo is affirmed in all other respects.
was completed.
THE PEOPLE OF THE PHILIPPINES, plaintiff-appellee, vs.
It is not necessary that the property be taken into the hands of ELIAS JARANILLA,
the robber or that he should have actually carried the property One essential requisite of robbery with force upon things under
away, out of the physical presence of the lawful possessor, or that Articles 299 and 302 is that the malefactor should enter the
he should have made his escape with it. building or dependency, where the object to be taken is found. In
 No. The “surrender” of the appellant and his co-accused the instant case, the chicken coop where the six roosters were
cannot be considered in their favour to mitigate their taken cannot be considered a building within the meaning of
liability. article 302. Not being a building, it cannot be said that the
To be mitigating, a surrender must have the following requisites: accused entered the same in order to commit the robbery by
that the offender had not been actually arrested, that the offender means of any of the five circumstances enumerated in article 302.
surrendered himself to a person in authority or to his agent, and FACTS: The evidence for the prosecution shows that at around
that the surrender was voluntary. The “surrender” by the eleven o'clock in the evening of January 9, 1966, Gorriceta, who
appellant and his co-accused hardly meets these requirements. had just come from Fort San Pedro in Iloilo City, was driving a
There is no voluntary surrender to speak of. Ford pickup truck belonging to his sister, Remia G. Valencia. While
Note: The nature of the linked offenses (robbery with serious he was in front of the Elizalde Building on J. M. Basa Street, he
physical injuries and serious illegal detention) was also discussed. saw Ricardo Suyo, Elias Jaranilla and Franco Brillantes. They
The detention in the case at bar was not only incidental to the hailed Gorriceta who stopped the truck. Jaranilla requested to
robbery but was a necessary means to commit the same so the bring them to Mandurriao, a district in another part of the city.
nature of the offense was affirmed. Gorriceta demurred. He told Jaranilla that he (Gorriceta) was on
Held: his way home.
Jaranilla prevailed upon Gorriceta to take them to Mandurriao
Judgment appealed is AFFIRMED
because Jaranilla ostensibly had to get something from his uncle's
place. So, Jaranilla, Brillantes and Suyo boarded the pickup truck
PEOPLE VS APDUHAN which Gorriceta drove to Mandurriao. Upon reaching Mandurriao,
Gorriceta parked the truck at a distance of about fifty to seventy
Facts: meters from the provincial hospital. Jaranilla, Suyo and Brillantes
Respondent along with five other persons entered the alighted from the vehicle. Jaranilla instructed Gorriceta to wait for
house of the spouses Miano, shooting Geronimo Miano and them. The trio walked in the direction of the plaza. After an
Norberto Aton that killed both and took money amounting to Php interval of about ten to twenty minutes, they reappeared. Each of
322.00 belonging to Geronimo Miano. Respondent pleaded not them was carrying two fighting cocks. They ran to the truck.
guilty initially and later after advise from counsel Tirol, pleaded Jaranilla directed Gorriceta to start the truck because they were
guilty. Judge Hipolito Alo informed respondent that the penalty being chased. Gorriceta drove the truck to Jaro (another district of
imposed might be death and respondent insisted on pleading the city) on the same route that they had taken in going to
guilty with the condition that he be sentenced to life imprisonment Mandurriao.
instead of death. Respondent then desisted from his plea of guilt It is important to note the positions of Gorriceta and his three
and having made it on record, counsel Tirol conferred with him companions on the front seat of the track. Gorriceta the driver,
and later manifested that respondent will enter the plea of guilty was on the extreme left. Next to him on his right was Suyo. Next
with the trial court’s ascertainment that he was not forced into to Suyo was Brillantes. On the extreme right was Jaranilla. While
pleading guilty. The mitigating circumstances alleged by the truck was traversing the detour road near the Mandurriao
respondent were 1) intoxication that was not corroborated; 2) airport, then under construction, Gorriceta saw in the middle of
voluntary plea of guilty; and 3) Lack of intent to commit a grave the road Patrolmen Ramonito Jabatan and Benjamin Castro
so wrong that was withdrawn after prosecution withdrew the running towards them. Gorriceta slowed down the truck after
fourth aggravating circumstance abuse of superior strength. The Patrolman Jabatan had fired a warning shot and was signalling
aggravating circumstances alleged by the prosecution were 1) with his flashlight that the truck should stop. Gorriceta stopped
band; 2) dwelling; 3) nighttime; and 4) abuse of superior the truck near the policeman. Jabatan approached the right side
strength that was withdrawn. of the truck near Jaranilla and ordered all the occupants of the
truck to go down. They did not heed the injunction of the
Issue: policeman. Brillantes pulled his revolver but did not fire it. Suyo
Whether or not respondent’s voluntary plea of guilty is did nothing.
spontaneous and insistent. Jaranilla, all of a sudden, shot Patrolman Jabatan. The shooting
frightened Gorriceta. He immediately started the motor of the
Ratio Decidendi: truck and drove straight home to La Paz, another district of the
No. Respondent’s initial plea was not one of guilty and city. Jaranilla kept on firing towards Jabatan. DEAN’S CIRCLE
changed it with the condition that he be sentenced to life 2019 – UST FACULTY OF CIVIL LAW 292 Jaranilla, Suyo and
imprisonment and not death since he will plead guilty. Respondent Brillantes alighted in front of Gorriceta's house. Gorriceta parked
then desisted from the plea of guilt and stated his plea of not the truck inside the garage. Jaranilla warned Gorriceta not to tell
guilty made in record, going back to plea of guilty only after anybody about the incident. Gorriceta went up to his room. After
conferring with his counsel. The virtue of Judge Alo's efforts in a while, he heard policemen shouting his name and asking him to
ascertaining whether Apduhan pleaded guilty with full knowledge come down. Instead of doing so, he hid in the ceiling. It was only
of the significance and consequences of his act, recommends itself at about eight o'clock in the morning of the following day that he
to all trial judges who must refrain from accepting with alacrity an decided to come down. His uncle had counselled him to surrender
accused's plea of guilty, for while justice demands a speedy to the police. The policemen took Gorriceta to their headquarters.
administration, judges are duty bound to be extra solicitous in He recounted the incident to a police investigator. Gorriceta,
seeing to it that when an accused pleads guilty he understands Jaranilla, Suyo and Brillantes were charged with robbery with
fully the meaning of his plea and the import of an inevitable homicide with the aggravating circumstances of use of a motor
conviction. For failure to secure the required number of votes, the vehicle, nocturnity, band, contempt of or with insult to the public
penalty of death cannot be legally imposed. The penalty next authorities and recidivism. The fiscal utilized Gorriceta as a state
lower in degree - reclusion perpetua - should consequently be witness. Hence, the case was dismissed as to him. The judgment
imposed on the accused. of conviction was promulgated as to defendants Suyo and
Brillantes. There was no promulgation of the judgment as to
Holding: Jaranilla, who escaped from jail. However, the notice of appeal
filed by defendants' counsel de oficio erroneously included
4
Jaranilla. Inasmuch as the judgment has not been promulgated as wilfully, unlawfully and feloniously take, steal and carry away one
to Jaranilla, he could not have appealed. His appeal through (1) motorized tricycle with motor No. B100-25-648 with Chasis
counsel cannot be entertained. Only the appeals of defendants No. B120-05589 and Plate No. MCH Q4102 or with a total value of
Suyo and Brillantes will be considered. In convicting Suyo, P11,000.00, Philippine Currency belonging to Reynaldo Togorio to
Jaranilla and Brillantes of robo con homicidio, the trial court the damage and prejudice of the latter in the aforementioned
assumed that the taking of the six fighting cocks was robbery and amount of Pll,000.00. However, the motorized tricycle Zukurmi
that Patrolman Jabatan was killed "by reason or on the occasion 120, Motor No. B1OO-25-648 with Chasis No.B-120-05589 was
of the robbery" within the purview of article 294 of the Revised recovered. 1
Penal Code. On appeal, the appellants contend contend that the Pleading guilty upon arraignment, petitioners were sentenced to
taking of roosters was theft and, alternatively, that, if it was the penalty provided in Republic Act No. 6539 known as Anti-Car-
robbery, the crime could not be robbery with homicide because napping Act of 1972 which defines motor vehicle as
the robbery was already consummated when Jabatan was killed. follows: chanrobles virtual law library
Motor vehicle is any vehicle propelled by any power other than
ISSUE: 1. Was the taking of the roosters robbery or theft? muscular power using the public highways, but excepting road
(THEFT) 2. Whether or not the aggravating circumstance of rollers, trolley cars, street sweepers, sprinklers, lawn mowers,
nighttime is present in the instant case. (YES) bulldozers, graders, fork-lifts amphibian trucks, and cranes if not
used on public highways, vehicles which run only on rails or
RULING: 1. There is no evidence that in taking the six roosters tracks, and tractors, trailers and traction engines of all kinds used
from their coop or cages in the yard of Baylon's house violence exclusively for agricultural purposes. Trailers having any number
against or intimidation of persons was employed. Hence, article of wheels, when propelled or intended to be propelled by
294 of the Revised Penal Code cannot be invoked. Neither could attachment to a motor vehicle, shall be classified as separate
such taking fall under article 299 of the Revised Penal Code which motor vehicle with no power rating. 2 (Emphasis supplied).
penalizes robbery in an inhabited house (casa habitada), public Contending that the court a quo erred in imposing the penalty
building or edifice devoted to worship. The coop was not inside prescribed in the Anti-Carnapping Act of 1972 instead of that
Baylon's house. Nor was it a dependency thereof within the prescribed in the Revised Penal Code for simple robbery with
meaning of article 301 of the Revised Penal Code. DEAN’S CIRCLE violence, because the information did not allege that the
2019 – UST FACULTY OF CIVIL LAW 293 Having shown the motorized tricycle stolen was using the public highway, so as to
inapplicability of Articles 294 and 299, the next inquiry is whether make it a motor vehicle as the term is defined in the carnapping
the taking of the six roosters is covered by article 302 of the law, and therefore failed to inform them that they were being
Revised Penal Code which punishes robbery in an uninhabited charged under the cited statute, in violation of their constitutional
place or in private building. One essential requisite of robbery with right to be informed of the nature and cause of the accusation
force upon things under Articles 299 and 302 is that the against the petitioners came to this Court with the instant petition
malefactor should enter the building or dependency, where the for review.chanroblesvirtualawlibrary chanrobles virtual law library
object to be taken is found. In the instant case, the chicken coop The principal issue thus raised is whether a motorized tricycle is a
where the six roosters were taken cannot be considered a building motor vehicle within the definition given to the term by the Anti-
within the meaning of article 302. Not being a building, it cannot Carnapping Act of 1972.chanroblesvirtualawlibrary chanrobles
be said that the accused entered the same in order to commit the virtual law library
robbery by means of any of the five circumstances enumerated in As a consequence of their contention that the motorized tricycle is
article 302. Therefore, the taking of the six roosters from their not a motor vehicle under the definition of the aforecited Act,
coop should be characterized as theft and not robbery. The petitioners also claim that they are not properly informed of the
assumption is that the accused were animated by single criminal cause and nature of the accusation against them in violation of
impulse. The conduct of the accused reveals that they conspired their constitutional right.chanroblesvirtualawlibrary chanrobles
to steal the roosters. The taking is punishable as a single offense virtual law library
of theft. Thus, it was held that the taking of two roosters in the Petitioners maintain that the tricycle in question is not a "motor
same place and on the same occasion cannot give rise to two vehicle" as the anti-carnapping law defines the term because it is
crimes of theft. 2. Nocturnity and use of a motor vehicle are not licensed to operate on the "public highways." The Solicitor
aggravating. Those circumstances facilitated the commission of General contends otherwise with the following
the theft. The accused intentionally sought the cover of night and argument: chanrobles virtual law library
used a motor vehicle so as to insure the success of their nefarious The word "public" means "common to all or many; general; open
enterprise. to common use" (Black's Law Dictionary 1393 [Revised 4th Ed.].
AMADO IZON and JIMMY MILLA petitioners, vs. PEOPLE OF On the other hand, 'highway' refers to a 'free and public road
THE PHILIPPINES, Respondent. way, or street; one which every person has the right to use
(idem. at p. 862). lt is clear that a street within a town is a public
highway if it is used by the public. To limit the words "public
Petitioners were charged, together with Pedro Divino, in the
highways" to a national road connecting the various towns, as
Circuit Criminal Court, Third Judicial District, Olongapo City, with
petitioners' suggest (Reply dated January 25, 1980) would create
Robbery with Violence Against Person, under an information
a distinction which the statute itself does not make. Under
reading as follows: chanrobles virtual law library
petitioners' proposition, a distinction should be made between
That on or about the 8th day of September, 1977, in the City of
motor vehicles operating within a town like the motorized tricycle
Olongapo, Philippines, and within the jurisdiction of this Honorable
involved herein, and those using roads connecting towns. This,
Court, the above-named accused, conspiring, confederating
however, goes against the well known maxim that where the law
together and mutually helping one another and by means of
does not distinguish, no distinction should be made (Robles vs.
violence and intimidation applied upon the person of Reynaldo
Zambales Chromite Mining Co., 104 PhiL 688). It is also to be
Togorio committed by the accused Jimmy Milla y Castillo and
pointed out that to limit the application of the Act to motor
Pedro Divino y Batero who were armed with bladed weapon which
vehicles travelling between different towns, may lead to absurd
they pointed to one Reynaldo Togorio and used in stabbing him
results. For example, privately owned motorcycle used by its
and the accused Amado Izon y Bartulo who helped in mauling him
owner in travelling from one province to another would be
thereby inflicting upon said Reynaldo Togorio the following
covered by the law. Upon the other hand, a motorized tricycle
physical injuries, to wit:
(with sidecar) which is more expensive than the former but
Incised wound 2 cm. long and 2 cm. deep lateral aspect upper
operated within towns would not be protected by the law. No
third arm right. Incised wound 2 inches long between thumb and
unreasonable intendment should be read into a statute so that an
index finger left Abrasion sternoclavicular function along 6 rib left.
injustice may be worked or an absurb result produced (In re
Linear abrasion 3 cm. long level of 7th rib, anterior axillary line
Moore's Estate, N.Y.S. 2nd 281, 165 Misc. 683). It can be
right
concluded, therefore, that the motorized tricycle involves in this
which injuries shall require medical attendance for a period of less
case is a 'motor vehicle' within the ambit of section 2 of the Anti-
than nine (9) days, barring complications, did then and there
Carnapping Act of 1972. The lower court correctly imposed the
5
penalty for violation of said Act on herein petitioners. 3chanrobles A case of Carnapping with Homicide, as defined and penalized
virtual law library under Section 14 of Republic Act No. 6539, also known as the
We perceive no reason not to accord full validity of the Solicitor Anti-Carnapping Act of 1972.
General's argument, not even on the petitioner's submission that
a motorized tricycle, not having licensed to use a public highway,
There is no question that on 5 December 1984, a Ford Telstar
is not a motor, vehicle under the provision of the anti-carnapping
automobile, TX5 bearing Plate No. N-PDW-382, was carnapped,
act.chanroblesvirtualawlibrary chanrobles virtual law library
and that ANTHONY Banzon, the registered owner of said car, was
From the definition cited by the Government which petitioners
shot and killed.
admit as authoritative, highways are always public, free for the
use of every person. There is nothing in the law that requires a
license to use a public highway to make the vehicle a "motor The Trial Court decided * that the three accused, Danilo DE LA
vehicle" within the definition given the anti-carnapping law. If a CRUZ y Ruado, Romeo SALVADOR y Mendoza, and Dantes
vehicle uses the streets with or without the required license, same BELOSO y de Castro, had "conspired to steal away as they in fact
comes within the protection of the law, for the severity of the stole and carried away the TELSTAR of ANTHONY Banzon"; held
offense is not to be measured by what kind of streets or highway them "liable as principals by direct participation" for the crime of
the same is used; but by the very nature of the vehicle itself and Carnapping with Homicide; and sentenced them as follows:
the use to which it is devoted. Otherwise, cars using the streets
but still unlicensed or unregistered as when they have just beet
bought from the company, or only on test runs, may be stolen WHEREFORE, finding accused Danilo de la Cruz
without the penal sanction of the anti-carnapping statute, but only y Ruado, Romeo Salvador y Mendoza and
as simple robbery punishable under the provision of the Revised Dantes Beloso y de Castro, guilty beyond
Penal Code. This obviously, could not have been the intention of reasonable doubt of the crime of carnapping
the anti-carnapping law.chanroblesvirtualawlibrary chanrobles with homicide, penalized under section 14 of
virtual law library R.A. 6539, the Court hereby sentences each of
Going over the enumerations of excepted vehicle, it would readily them to suffer the penalty of reclusion
be noted that any vehicle which is motorized using the streets perpetua, instead of the supreme penalty of
which are public, not exclusively for private use, comes within the death, inasmuch as the latter penalty has been
concept of motor vehicle. A tricycle which is not included in the deleted under the new constitution; for each
exception, is thus deemed to be that kind of motor vehicle as accused to jointly and severally indemnify the
defined in the law the stealing of which comes within its penal heirs of the deceased Anthony Banzon in the
sanction.chanroblesvirtualawlibrary chanrobles virtual law library amount of P30,000.00; also to pay, jointly and
In any event, it is a matter of judicial notice that motorized severally, P200,000.00 for moral damages;
tricycles are running in droves along highways admittedly public, P200,000.00 for lost earnings; P6,002.50 for
as those going to the north like Baguio City. Those motorized food expenses during the wake; P8,000.00 for
tricycles certainly come within the definition of the law, even coffin and memorial services; P2,530.00 for
under the restricted construction that petitioners would want interment fees; P800.00 for transportation
given to it. If these tricycles are "motor vehicles" then, there is no expenses; and P2,947.00 for the
cogent reason to treat the tricycle in question hospitalization expenses of Dionisia Alvarez
differently.chanroblesvirtualawlibrary chanrobles virtual law Banzon, the mother of the deceased.
library
With the foregoing discussion, it would logically follow that the Challenging their conviction, the three accused interposed the
petitioners complaint of not having been informed of the nature present appeal. However, during the pendency hereof, Danilo DE
and cause of the accusation against them and for which they were LA CRUZ withdrew his appeal on 1 December 1989. This appeal is
convicted upon their plea of guilty, is unfounded, legally and thus confined to Dantes BELOSO and Romeo SALVADOR.
factually.chanroblesvirtualawlibrary chanrobles virtual law library
Again, on tills point, We find the observation of the Solicitor
General valid, We have no other course than to sustain it. Thus By piecing together the voluminous testimonial evidence and
- chanrobles virtual law library documentary exhibits, the factual background from the viewpoint
A perusal of the information (Annex 1 of respondent People's of the prosecution may be narrated thus: Danilo DE LA CRUZ,
Comment dated November 16, 1979) readily shows that Dantes BELOSO and Romeo SALVADOR were acquaintances. DE
petitioners were not thereby informed that they were being LA CRUZ, 31, claimed to be a 1st Lieutenant of the Philippine
accused for violation of the Revised Penal Code. The charge Army as well as a customs broker. BELOSO, 29, single was a
merely designated the offense as one for: "ROBBERY WITH jobless individual. SALVADOR, 36, married, was also unemployed.
VIOLENCE AGAINST PERSON." The facts alleged in the SALVADOR had known DE LA CRUZ since 16 November 1984
information make out a case of "carnapping". This offense is when they first met at Hot City Disco Restaurant. They then met
defined in section 2 of Republic Act No. 6539 as 'the taking, with again on 4 December 1984 (pp. 5-6, TSN, 5 March 1986).
intent to gain, of a motor vehicle belonging to another without the BELOSO, for his part, had known DE LA CRUZ since April of 1984
latter's consent, or by means of violence against or intimidation of and had met with him for about 4 or 5 times thereafter (p. 6,
persons, or by using force upon things The information clearly TSN, 9 October 1985). BELOSO stayed with DE LA CRUZ in the
specified that what was taken and carried away was "one (1) latter's house for several months. BELOSO also met SALVADOR
motorized tricycle." Herein petitioners cannot claim that they were once sometime in November 1984 at a night club somewhere in
misled by the information into pleading guilty. It is not necessary Roxas Boulevard. Evidence further shows that on the eve of 4
for the protection of the substantial right of the accused, nor the December 1984, DE LA CRUZ, BELOSO and SALVADOR met at the
effective preparation of his defense, that he be informed of the Kool King Restaurant along Pasong Tamo Street on Makati to
technical name of the crime of which he stands charged. He must discuss a certain "car deal" that would take place the following
look to the facts alleged (People vs. Cosare, 95 PhiL 656; U.S. vs. day — 5 December 1984 (p. 13, TSN, 6 January 1986).
Lim San 17 Phil. 275).
FOR ALL THE FOREGOING, the petition is hereby dismissed. No On 29 November 1984, BELOSO caused the placing of an
costs. 4chanrobles virtual law library advertisement in the Bulletin Today, page 29, column 3, reading:
SO ORDERED.
PEOPLE OF THE PHILIPPINES, plaintiff-appellee,
vs. Wanted to Buy Car
DANILO DE LA CRUZ y RUADO, ROMEO SALVADOR y Balikbayan 82-83 Silver
MENDOZA, DANTES BELOSO y DE CASTRO, defendants- Edition or Lancer
Call 8164865 8164866

6
 Mr. Garcia 9-5 taxi and proceeded to Hernandez (p. 13-16, TSN, 9 October
(Exhibit "DD-l" p. 673-B, Records) 1985).

The victim, ANTHONY Banzon, a 23-year ld student of SALVADOR was able to reach Hernandez' place at about 4:00 P.M.
aeronautical engineering, was among those who responded to the Rodolfo Hernandez recalled during the trial that SALVADOR
advertisement and signified his interest to sell his 1983 model introduced himself as ANTHONY Banzon and offered to sell a car,
Telstar. which was parked at a nearby Caltex station. They proceeded to
the station to look at the car. Hernandez then looked at the
certificate of registration of the car in the name of ANTHONY
On 5 December 1984, at around 9:00 A.M., Dionisia Alvarez
Banzon and the residence certificate presented to him by
Banzon, mother of ANTHONY, received a telephone call from a
SALVADOR, which was also in the name of ANTHONY Banzon.
certain Mike Garcia who informed her that he was the buyer of
Believing that SALVADOR was really ANTHONY Banzon,
her son's car. ANTHONY, arriving home a little later, was informed
Hernandez then suggested that they go to the actual buyer at the
by his mother of the telephone call. The victim, together with his
Metropolitan Pawnshop at P. Campa Street, Sampaloc, Metro
mother, then left for Garcia's office located at the Centrum
Manila, leaving BELOSO at the UERM. At the pawnshop, they met
Condominium, Makati, Metro Manila, on board the Telstar. They
Hernandez' contact, Patrolman Rosauro de la Rosa, who is the
arrived at their destination a little after 11:00 A.M. Once there, a
brother of the owner of the pawnshop. Again, SALVADOR
man just across the street where their car was parked was
introduced himself as ANTHONY Banzon, the owner of the car and
pointed to by ANTHONY as Mr. Garcia, the person interested in
offered to sell it for P130,000.00. Hernandez then left the
buying the car. In the identification made by Dionisia Alvarez
pawnshop (pp. 85-95, TSN, 1 March 1985; pp. 4-13, TSN, 8
Banzon during the trial, that man turned out to be accused
March 1985).
Dantes BELOSO. Dionisia then proceeded to Shoemart on a taxi,
leaving ANTHONY at the Centrum (pp. 53-58, TSN, 29 May 1985),
little suspecting that it would be the last time that she would see During the negotiation, Pat. de la Rosa became suspicious that
her son. the car had been stolen because of the low price of P130,000.00,
and when told that he would be paid the next day, SALVADOR
insisted that if possible, the former pay P100,000.00 in advance
Inside the Centrum office ANTHONY and BELOSO discussed the
as he was in need of money very badly. On top of that, when Pat.
price of the car, which ANTHONY fixed at P188,000.00. BELOSO
de la Rosa declined to pay immediately, SALVADOR left the car
then advised ANTHONY to wait for Danilo DE LA CRUZ to arrive as
behind. Pat. de la Rosa then reported his suspicions to Sgt.
he would be the one to decide whether or not to buy the car. After
Reynaldo Roldan of the Quezon City Police (pp. 8-19, TSN, 8
a while, DE LA CRUZ arrived and BELOSO introduced ANTHONY to
March 1985). Sgt. Roldan forthwith dispatched Pfc. Damaso
the former. At around 1:00 P.M., DE LA CRUZ and ANTHONY left
Osma, Pat. Edgardo de Leon, Pat. Anthony Name and Pat.
the office to go to the former's house. ANTHONY brought with him
Justiniano Estrella, Jr., to P. Campa Street (pp. 95-96, TSN, 27
an envelope containing the certificate of registration, official
February 1985; p. 4, TSN, 25 March 1985).
receipt, and other papers pertaining to the car (pp. 9-12, TSN, 9
October 1985). When they arrived at the house, SALVADOR was
already there. At P. Campa Street, the dispatched policemen, together with Pat.
de la Rosa, posted themselves and waited for SALVADOR to
arrive. At about 8:00 P.M., SALVADOR did arrive together with
SALVADOR recounted in his Sworn Statement (Exhibit "B ") that
BELOSO. They got inside the car with BELOSO taking the steering
DE LA CRUZ had told him to have some snacks at a nearby
wheel. The policemen approached and asked the two to alight.
"lugawan" while he and ANTHONY talked. When SALVADOR
BELOSO started shouting that he was ANTHONY Banzon, the
returned, he saw DE LA CRUZ and ANTHONY seated near the
owner of the car and showed the car registration and a residence
dining table. SALVADOR then went to the comfort room and while
certificate, all in the name of ANTHONY Banzon. This all the more
inside, he heard a shot. When he got out, he found ANTHONY
aroused Pat. de la Rosa's suspicion for earlier it was SALVADOR
sprawled on the floor, the latter's head bathed in his own blood,
who claimed to be ANTHONY. The policemen decided to take the
and saw DE LA CRUZ holding a gun (pp. 640-641, Records).
two to the Quezon City Police Headquarters for questioning (pp.
97-102, TSN, 29 February 1985; pp. 21-28, TSN, 8 March 1985;
Strangely enough, the dyphenylamine paraffin tests done on DE pp. 2631, TSN, 13 March 1985; pp. 71-76, TSN, 18 March 1985).
LA CRUZ on 6 December 1984 showed negative results (Exhibit
N") while those on BELOSO and SALVADOR proved positive
Meanwhile, at around 9:00 P.M. of the same day, Cynthia Juarez
(Exhibits "O" and P The paraffin casts on the latter two were
a boarder of the house of DE LA CRUZ, reported to Pfc. Evelio
taken on 7 December, which were then sealed and preserved until
Bactad of the Makati Police that when she arrived at the boarding
the actual testing on 11 December 1984.
house she found it unlocked but with the lights on and a dead
man in the kitchen. The house is located at Obrero Street, Makati,
Continuing with the facts — at around 3:00 P.M., Dantes BELOSO, Metro Manila. Bactad proceeded to the place to conduct an
who was at the Centrum office, received a call from DE LA CRUZ, investigation and there found a lifeless body of a man, a already
who instructed him to proceed to his (DE LA CRUZ) house at in the state of rigor mortis with a gunshot wound on the forehead,
Obrero Street, Makati, Metro Manila. On BELOSO called for DE LA and an empty super.38 caliber shell about two feet away from the
CRUZ, who came out and handed to him the key of the Telstar. left side of his body (pp. 14-21, TSN, 25 February 1985). Cynthia
DE LA CRUZ instructed BELOSO to drive for SALVADOR who did Juarez mistakenly identified the body to be that of her landlord
not know how to drive. BELOSO then boarded the car and waited Danilo DE LA CRUZ.
for SALVADOR who came out of the house some 15 to 20 minutes
later. In his Affidavit (Exhibit "C-11 "), BELOSO recounted that
At about 2:00 A.M. of 6 December 1984, a male person went to
SALVADOR related to him that he had seen a dead man in the
the same Makati police station to report that his house has been
house of DE LA CRUZ but that they were to keep it to themselves
ransacked by someone. He introduced himself as Danilo DE LA
because he (SALVADOR) was seared of DE LA CRUZ. SALVADOR
CRUZ. Pfc. Bactad, perplexed as to the identity of the dead body,
then showed to BELOSO a phone number of a certain Mr.
held DE LA CRUZ for further questioning (pp. 14-25, TSN, 25
Hernandez who was interested in buying the car. After driving a
February 1985). Pfc. Bactad then coordinated with the Quezon
short distance, BELOSO stopped at a telephone booth to call
City Police anti-carnapping unit, which had given notice that they
Hernandez to ask for the latter's address. They then started to
had apprehended two persons, Romeo SALVADOR and Dantes
look for the place but failed to locate it. Since BELOSO was
BELOSO. These two were later turned over to the Makati Police
already hungry, he parked the car at the Brunch Restaurant in
Precinct. Pfc. Bactad was subsequently able to straighten out the
front of UERM and took his snack thereat while SALVADOR took a

7
identity of the victim to be ANTHONY Banzon (pp. 22-27 and 95, that they were not in the house of DE LA CRUZ in the early
TSN, ibid.). afternoon of 5 December 1984 when ANTHONY was killed; that
they were unaware of the killing, of ANTHONY which, according to
SALVADOR was DE LA CRUZ' own doing.
The medical examination conducted by a medicolegal officer of
the NBI on the cadaver of the victim on 6 December 1984
revealed the cause of death to be "hemorrhage, intracranial Both BELOSO and SALVADOR are in unison in claiming that their
severe, secondary to gunshot wound." The bullet used was statements, marked as Exhibits "B" for SALVADOR, and "C" and
identified as a .38 caliber gun, fired at short distance from the "K" for BELOSO, are inadmissible in evidence as the same were
victim, entered the back of the head and exited through his extracted by force and without the presence of counsel.
forehead. The same physician placed the time of death at about
four (4) hours, more or less, after he had taken his last meal (pp.
The Trial Court gave no credence to the exculpatory allegations of
57-59, TSN, 27 February 1985).
BELOSO and SALVADOR and convicted them, as well as DE LA
CRUZ, of Carnapping with Homicide. Hence, this appeal, filed
Sgt. Reynaldo Roldan, a Quezon City policeman, who was called originally by all three accused.
by Pat. de la Rosa to report the latter's suspicion about a
carnapped vehicle, interrogated BELOSO and SALVADOR and
Appellants BELOSO and SALVADOR ascribe the following errors to
elicited their modus operandi as follows: 1) blank residence
the Trial Court:
certificates were secured and kept by the three accused; 2) their
"business" of buying of cars was advertised in the newspapers; 3)
the ads yielding fruitful results, prospective sellers would be asked By Dantes BELOSO:
about their respective certificates of registration and other
documents; 4) when the portion for the signature of the owner is
found to be blank, the accused would pretend to test the car, I. The Trial Judge who had no occasion to observe demeanors of
demand the certificate of registration, and fill in the signature witnesses as he merely prepared the decision in this case as the
space with their own signature; 5) present the same certificate of trial was entirely heard by Justice Elbinas erred in concluding that
registration bearing their own signature, along with the residence at around 9:00 A.M. of December 5, 1984 the late Anthony
certificate supplied by DE LA CRUZ which is made to coincide with Banzon was called by Belso.
the name and signature appearing in the certificate of
registration, to the prospective buyers; and 6) pretend to test the II. The Lower Court, with due respect, gravely erred in holding
car although, in fact, just waiting for the opportunity to leave the that the three (3) accused conspired in stealing the car subject of
owner of the car behind so that the accused could dispose of the this case
same in the meantime.

III. The Lower Court again, with due respect, gravely erred in
All accused, on the other hand, profess innocence. BELOSO claims applying the case of People vs. Mangulabnan, et al. in concluding
that he was merely hired to man the office at Centrum that the three (3) accused are liable in the death of Anthony
Condominium; that he had nothing to do with the carnapping of Banzon and that Beloso could have been present at the time the
ANTHONY'S vehicle; that he went to the house of DE LA CRUZ at victim was shot.
about 3:00 P.M. of 5 December 1984, but was not allowed to
enter the same; and that while he was by the gate, he was given
the key of ANTHONY's car by DE LA CRUZ to drive for SALVADOR IV. The Court a quo gravely erred in ruling that all the accused
who did not know how to drive; that, in turn, the registration conspired in the killing of Anthony Banzon and Beloso 'could have
papers of the car and other documents were handed to been inside the house and was present at the time Banzon was
SALVADOR with specific instructions to bring the vehicle to the shot' because if he were not present, 'he could have been found
prospective buyer, Hernandez. negative of gun powder nitrates.

For his part, SALVADOR claims that he was merely called by DE V. All in all, the Lower Court, as far as Beloso is concerned, as
LA CRUZ to go to the latter's house to assist BELOSO in the sale shown by indubitable facts heretofore and/or hereinafter
of the car. He denies having been a long acquaintance of either discussed and as facts and evidence on records will show,
DE LA CRUZ or BELOSO. He claims that on 5 December 1984 DE committed grave error in convicting Beloso of the crime charged.
LA CRUZ instructed him to go to the Royal Beauty Parlor between
10:00 and 11:00 A.M., which he did. After waiting for some ten By Romeo SALVADOR:
(10) to fifteen (15) minutes, DE LA CRUZ arrived on board a taxi
cab. They proceeded to DE LA CRUZ's house. Arriving thereat and
finding it closed, they went to Lugawan sa Makati for a snack. The Court a quo erred:
After eating, they returned to DE LA CRUZ's house around 12:00
noon. A few minutes later, Elmer Mabunga, driver of DE LA CRUZ I. Gravely in admitting Salvador's alleged
arrived (pp. 14-15, TSN, March 5, 1986). At 12:30 P.M., the three extrajudicial confession (Exibit 'B') taken by
of them left the house. Elmer rode in a jeepney while they took a police officers during custodial investigation
taxi. DE LA CRUZ dropped him off at the Royal Beauty Parlor while without assistance of counsel.
DE LA CRUZ proceeded to Centrum Condominium. He was
instructed by DE LA CRUZ to wait from 2:00 to 2:30 P.M. after
which he should go back to the house. At around 3:00 P.M., he II. In giving equal weight and effect on the
went back and after calling DE LA CRUZ'name, the latter came out prosecution's evidence presented during the
of the house, opened the first door, and told him to wait for joint trial which are not applicable to appellant
BELOSO. At around 3:20 to 3:30 P.M., BELOSO arrived. From Salvador.
here on, the testimonies of BELOSO and SALVADOR are
substantially similar in that they were given the keys of the car III. In finding Salvador a co-conspirator of the
and some documents and told to go to a certain Hernandez, a crime charged although his admitted
prospective buyer. participation was only to assist in the aborted
sale of the car without knowledge that it was a
In a nutshell, it is BELOSO and SALVADOR's position that they 'carnapped' vehicle and without knowledge that
were unaware of any carnapping; that they were in a regular the registered owner was earlier-killed.
business transaction to sell a car with promise of a commission;

8
 IV. In convicting Salvador in the absence of Registration, to Pat. Rosauro de la Rosa, brother of the pawnshop
proof beyond reasonable doubt. owner who was the real buyer of the car. SALVADOR even showed
the Registration Certificate and a Residence Certificate,
purportedly ANTHONY'S, as proof thereof. SALVADOR then asked
It may, indeed, be that Judge Phinney C. Araquil, who penned the
for P130,000.00 as selling price. Pat. de la Rosa agreed but asked
Trial Court Decision, had not heard the case at all, the trial having
that payment be made the following day as banks were already
been conducted by then Judge Jesus M. Elbinias, who was
closed. SALVADOR, however, insisted on payment that evening as
elevated to the Court of Appeals. Nonetheless, the transcripts of
he was badly in need of money. This made Pat. de la Rosa
stenographic notes taken during the trial were extant and
suspicious that the car had been stolen, and reported t6 the
complete and there was no impediment for Judge Araquil to have
Quezon City police. Pat. de la Rosa then instructed SALVADOR to
decided the case. It is not unusual for a Judge who did not try a
return to the pawnshop the next day. As SALVADOR did not know
case to decide it on the basis of the record (People vs. Escalante,
how to drive he left the Telstar at the pawnshop, went to the
L-37147, 22 August 1984, 131 SCRA 237). The fact that the
Brunch Restaurant near UERM, picked up BELOSO so the latter
Judge who heard the evidence is not the one who rendered the
could drive the car back to DE LA CRUZ. When they returned that
judgment and that for that reason the latter did not have the
night and boarded the car, elements of the Quezon City police
opportunity to observe the demeanor of the witnesses during the
approached them and asked them questions. BELOSO got down
trial but merely relied on the records of the case does not render
from the car and started shouting that he was ANTHONY, the
the judgment erroneous (Co Tao vs. Court of Appeals, 101 Phil.
owner of the car (p. 23, TSN, March 8, 1985). Notwithstanding,
188 [1957]).
the police brought them to the Quezon City police headquarters.
Here, the investigators recovered some documents inside
The rest of the assigned errors center on the findings of BELOSO's clutch bag, among them, a residence certificate in
conspiracy and guilt by the Trial Court and may be considered ANTHONY's name (Exhibit "H-1"). In BELOSO's possession were
jointly. also found a motor registration certificate in ANTHONY's name,
two (2) blank residence certificates and one residence certificate
in the name of Mark Garcia (p. 120, TSN, 27 February 1985).
The evidence sustains those findings.

BELOSO's and SALVADOR's protestations of innocence do not

The three accused had known one another some time before inspire belief. Both of them posed as ANTHONY at one time or
December 1984 at relatively different periods. Before Pfc. Bactad another during the "negotiations." When SALVADOR offered to sell
at the police station, BELOSO and SALVADOR identified DE LA the car to Rodolfo Hernandez, he introduced himself as ANTHONY
CRUZ as an "associate" although the latter denied it (p.29, TSN, Banzon. He even presented to Hernandez a car registration
25 February 1985,). BELOSO had been hired through DE LA CRUZ certificate and a residence certificate all in the name of ANTHONY
to man the office at Centrum Condominium, Perez Street, Legazpi Banzon. Later, when Hernandez introduced SALVADOR to Pat. de
Village, Makati. On 4 December 1984, they had gotten together at la Rosa, the former's contact, SALVADOR again introduced himself
the Kool King Restaurant at Pasong Tamo, Makati, to discuss a as ANTHONY Banzon (pp. 85-95, TSN, 1 March 1985; pp. 4-13,
"car deal" to be consummated the next day. Dantes BELOSO, TSN, 8 March 1985). These misrepresentations are indication that
masquerading for Mike Garcia, had caused an advertisement to be he knew the car was stolen. at further bolsters the conclusion that
published in the 28 and 29 November issues of the Bulletin Today. he had a hand in the commission of the crime was the fact that
On the same dates, BELOSO had rented an office space at the when he and BELOSO were arrested by the Quezon City anti-
Centrum Condominium under the name of said Garcia for the two carnapping unit, it was now BELOSO claiming to be ANTHONY
days mentioned, and again on 5 December 1984 at P50.00 per Banzon (pp. 97-102, TSN, 29 February 1985; pp. 21-28, TSN, 8
hour, complete with staff facilities. BELOSO held himself out as in March 1985; pp. 26-31, TSN, 13 March 1985; pp. 71-76, TSN, 18
the business of buying cars. The victim, ANTHONY, responded to March 1985). BELOSO's claim that he was ANTHONY Banzon and
the ad, went to said office and offered to sell his Telstar, Model SALVADOR's silence in the face of such claim, despite the fact that
'83. Posing again as Mike Garcia, BELOSO called ANTHONY's he had earlier misrepresented himself as ANTHONY, all the more
house at around 9:00 A.M. on 5 December 1984 and informed the reveal that the two of them were one in keeping secret the true
latter's mother that he was the buyer of the car. When ANTHONY ownership of the car.
went to the Centrum office, BELOSO told ANTHONY to wait for DE
LA CRUZ. Upon the latter's arrival, he had a talk with ANTHONY.
DE LA ORTIZ made sure that ANTHONY's certificate of A more perfect example of a conspiracy cannot be contrived
registration, official receipt and other pertinent papers of the BELOSO and SALVADOR shared the same purpose with DE LA
Telstar were in order (pp. 9-12, TSN, October 9, 1985). ANTHONY CRUZ in carnapping the vehicle with a view to selling it at a low
and DE LA CRUZ then proceeded to the latter's house at Barrio price and making money which they badly needed. They were
Obrero, Makati. united in its execution as may be inferred from the facts and
circumstances established by the evidence. Conspiracy need not
be established by direct evidence of the acts charged, but may
Meanwhile, SALVADOR was instructed by DE LA CRUZ also to wait and generally must be proved by a number of indefinite acts,
at the latter's house. When DE LA CRUZ and ANTHONY arrived, condition and circumstances which vary according to the purpose
the former told SALVADOR to take a snack somewhere while he to be accomplished (People vs. Colman, et al., G.R. Nos. L-6652-
(DE LA CRUZ) and ANTHONY talked. It was after SALVADOR 54, 28 February 1958, 103 Phil. 6). The existence of conspiracy
returned to the house that the killing of ANTHONY transpired may be inferred from acts tending to show a community of design
between 12:00 noon and 2:00 P.M. Later, at about 3:00 P.M., DE or purpose (People vs. Mada-I Santalani, G.R. No. L-29979, 28
LA CRUZ then allegedly called for BELOSO at the Centrum office. September 1979, 93 SCRA 315).
When BELOSO arrived, DE LA CRUZ handed him the keys to the
car, which was parked nearby. DE LA CRUZ also handed to
SALVADOR a brown envelope containing papers of the Telstar What of the killing of ANTHONY? There is no question that he was
with the instruction to bring the car to a certain Hernandez, who killed "in the commission of the carnapping" (Sec. 14, RA 6539).
was buying the car. Following that bidding, the two left and It is clear from the evidence as well that he was killed in the
looked for Hernandez. But unable to locate him, SALVADOR went house of DE LA CRUZ between 1:30 and 2:00 P.M. on 5 December
on his own in a taxi. BELOSO was left with the car at the Brunch 1984 (Brief, Danilo de la Cruz, p. 19). It was at that house where
Restaurant near UERM. After having located Hernandez, ANTHONY was found dead by a boarder by the name of Cynthia
SALVADOR, Hernandez, and a driver went back to where BELOSO Juarez at around 9:00 P.M. of the same date. DE LA CRUZ tried to
was, took the car and proceeded to the Metropolitan Pawnshop camouflage the killing by ostensibly reporting to the police that
leaving BELOSO behind. At this place, the three alighted. his place had been ransacked and that a person had been killed.
SALVADOR introduced himself as ANTHONY Banzon, the owner of As Pat. Bactad testified, however, when he and a police team
the car and the name appearing in the car's Certificate of

9
went to the house, belongings therein were found wrapped and State Counsel Norberto C. Ponce who certified "I have personally
ready to be transferred. examined the affiant and that I am satisfied that he voluntarily
executed and understood his affidavit." Signing as witness was
Atty. Florito S. Macalino of CLAO (Exhibit "B-5"). Similarly,
BELOSO claims that he was sent for by DE LA CRUZ from the
BELOSO subscribed and swore to his Affidavit before 2nd Asst.
Centrum office only at 3:00 P.M. on 5 December 1984 and was
Fiscal Dennis M. Villa Ignacio, with Atty. William T. Uy of CLAO,
not, therefore, at the DE LA CRUZ residence at the time the killing
Makati, as witness (Exhibit "C-4"). Of record also is the fact that
was perpetrated in the nearly afternoon of that date. Similarly
during the execution of the extrajudicial confessions, Tim
SALVADOR claims that he went to the DE LA CRUZ house only at
Olivares, a police reporter of the newspaper "Tempo" was present.
3:00 P.M. and when he did he was merely at the gate and did not
This would further negate the alleged maltreatment suffered by
enter the house. Consequently they conclude that neither of them
BELOSO and SALVADOR at the hands of police authorities. That
can be held culpable for ANTHONY'S death.
reporter would surely have pounced upon any sign or report of
maltreatment (People vs. Ladrera, G.R. No. 55539, 21 May 1987,
Those denial, however, cannot prevail over the physical evidence 150 SCRA 113). Further, in BELOSO's Affidavit, Exhibit "'C",
that BELOSO and SALVADOR were found positive for nitrates, erasures appear, duly countersigned by him, which clearly negate
which means that they were within the vicinity when the gun was his claim that his confession was made involuntarily (People vs.
fired. Tanchico, G.R. No. L-23690, 23 October 1979, 93 SCRA 575).

When a paraffin or nitrate test is applied, there appears The crime committed is Camapping with Homicide, with
gunpowders nitrate which are dark blue collor. These spects are carnapping defined as "the taking, with intent to gain, of a motor
nothing more or less than minutes particles of nitrate which have vehicle belonging to another without the latter's consent, or by
blown into the skin by what might be termed the invisible backfire means of violence against or intimidation of persons, or by using
of the pistol, but they do not appear unless a hand has been force upon things" (Sec. 2, RA No. 6539). The penalty prescribed
instrumental in pulling the trigger, (Rbinson, Science Cathes the by the same law reads:
Criminal, pp. 99-100).
Sec. 14. Penalty for Carnapping. — Any person
The fact that DE LA CRUZ was negative for powder burns, who is found guilty of carnapping, as this term
although he was tagged by SALVADOR as the triggerman, can is defined in Section two of this Act, shall,
only mean that he knew hoe to sufficiently protect himself, a irrespective of the value of motor vehicle
knowledge that must have been derived form his stint as an taken, be punished by imprisonment for not
officer of the Philippine Army. less than fourteen years and eight months and
not more than seventeen years and four
months, when the carnapping is committed
The identical claims of BELOSO and SALVADOR that they were without violence or intimidation of persons, or
heavy smokers, of about 3 packs of Marlboro cigarretes a day, force upon things; and by imprisonment for not
which accounts for the pressent of nitrate in both their right and less than seventeen years and four months and
left hands, is contradicted by the testimony of the forensic not more than thirty years, when the
chemist that nitrates produced by cigarrete smoking have carnapping is committed by means of violence
different characteristics form those caused by powder burns. against or intimidation of any person, or force
upon things; and the penalty of life
BELOSO's and SALVADOR's complicity in the kiling is, therefore, imprisonment to death shall be imposed when
established not by any of the extradujicial confesions (Exhibits the owner, driver or occupant of the carnapped
"B", "C" and "K") but by the physical evidence on record. So that, motor vehicle is killed in the commission of the
even if those sworns statements are declared inadmissible for carnapping (Sec. 14, ibid.).
having been given without the presence of the counsel, their
culpability is borne out by the evidence indefendent of the same. In this case, the owner of the carnapped vehicle was killed in the
commission of the carnapping obviously to gain possession of the
That the respective participations of BELOSO and SALVADOR in car, its registration certificate and other pertinent papers, get the
the kiling is not claercut is of no moment: owner out of the way, and thus facilitate its sale to a third party,
in keeping with the modus operandi  of the perpetrators.

In order to determine the existence of the crime of robbery with

homicide, it is enough that a homicide would result by reason or WHEREFORE, the judgment appealed from is hereby AFFIRMED,
on the occasion of the robbery and it is immaterial that the death with proportionate costs against accused-appellants Dantes
would supervene by mere accident provided that the homicide be Beloso and Romeo Salvador.
produced by reason or on occasion of the robbery inasmuch as it
is only the result obtained, without reference or distinction as to SO ORDERED.
the circumstances, causes, modes or persons intervening in the
commission of the crime that has to be taken into consideration."
(People vs. Mangulabnan, et al., 99 Phil. 992 [1956]). PEOPLE OF THE PHILIPPINES, Plaintiff -Appellee,
vs.
JOEL AQUINO y CENDANA @ "AKONG," Accused-Appellant.
Moreover, conspiracy having been adequately proven, all the
conspirators are liable as co-principals regardless of the extent
and character of their participation because in contemplation of Before this Court is an appeal from a Decision 1 dated July 29,
law, the act of one is the act of all. The degree of actual 2011 of the Court of Appeals in CA-G.R. CR.-H.C. No. 04265,
participation by each of the conspirators is immaterial (People vs. entitled People of the Philippines v. Joel Aquino y Cendana alias
Loreno, G.R. No. 54414, 9 July 1984, 130 SCRA 311). As Akong, which affirmed with modifications the Decision2 dated
conspirators, each is equally responsible for the acts of their co- September 18 2009 of the Regional Trial Court of Malolos,
conspirators. Bulacan, Branch 12 which convicted appellant Joel Aquino y
Cendana alias Akong for the felony of Murder under Article 248 of
the Revised Penal Code in Criminal Case No. 483-M-2003 and for
At this juncture, we find it apropos to state that earmarks of the the crime of violation of Republic Act No. 6539 otherwise known
voluntariness of the extrajudicial confessions exist. For one, there as the Anti-Camapping Act of 1972 in Criminal Case No. 484-M-
is no convincing evidence of maltreatment. For another, 2003.
SALVADOR subscribed and swore to his Statement before Sr.
10
The pertinent portion of the lnformation 3 dated December 9, 2002 The next day, Jefferson was brought to the jeepney terminal
charging appellant with Murder in Criminal Case No. 483-M-2003 where he rode a jeepney to get home. Jefferson told his mother,
is reproduced here: Ma. Theresa Calitisan-Lita, about the death of his father.

That on or about the 6th day of September, 2002, in San Jose del In the meantime, SPO3 Servillano Lactao Cabading received a call
Monte City, province of Bulacan, Philippines, and within the from Barangay Captain Danilo Rogelio of Barangay San Rafael IV,
jurisdiction of this Honorable Court, the above-named accused, San Jose Del Monte City, Bulacan thru the two (2) way radio, that
armed with an ice pick and with intent to kill one Jesus O. Lita, the body of a male person with several stab wounds was found
with evident premeditation, treachery and abuse of superior dead on a grassy area beside the road of the said barangay.
strength, conspiring, confederating and mutually helping one Immediately, SPO3 Cabading together with a police aide
another, did then and there willfully, unlawfully and feloniously proceeded to the area. Thereat, they found the dead body whom
attack, assault and stab with the said ice pick the said Jesus O. they identified thru his Driver’s License in his wallet as Jesus Lita,
Lita, hitting him on the different parts of his body, thereby the victim. Also recovered were a big stainless ice pick about 18
inflicting upon him mortal wounds which directly caused his death. inches long including the handle and a tricycle key. The police
officers brought the body of the victim to the Sapang Palay
District Hospital. Thereafter, they proceeded to the address of the
On the other hand, the accusatory portion of the Information 4 also
victim.
dated December 9, 2002 accusing appellant with violating
Republic Act No. 6539 in Criminal Case No. 484-M-2003 reads:
Ma. Theresa Calitisan-Lita and Jefferson were about to leave for
the morgue when they met SPO3 Cabading outside their
That on or about the 6th day of September, 2002, in San Jose del
residence. SPO3 Cabading informed Ma. Theresa that the body of
Monte City, province of Bulacan, Philippines, and within the
the victim was found in Barangay San Rafael IV. Jefferson told
jurisdiction of this Honorable Court, the above-named accused,
SPO3 Cabading that he was with his father at the time of his
armed with an ice pick and by means of force, violence and
death and he brought the police officers to the place where his
intimidation, conspiring, confederating and mutually helping one
father was stabbed and to the hut owned by appellant. Thereat,
another, did then and there willfully, unlawfully and feloniously,
the police officers recovered a maroon colored knife case and the
with intent [to] gain and without the knowledge and consent of
sandals of the victim. Appellant was invited to the police station
the owner thereof, take, steal and carry away with them one (1)
for questioning but he refused alleging that he does not know
tricycle with Plate No. TP-9198 valued at ₱120,500.00, belonging
anything about the incident. The police officers were able to
to Jesus Lita and Sisinio Contridas, to the damage and prejudice
obtain a picture of appellant which was shown to Jefferson and he
of the said owners in the said amount of ₱120,500.00; and that
positively identified the same as "Akong" one of those who
on the occasion or by reason of said carnapping, the said accused,
stabbed his father. Likewise, a video footage of Noynoy
pursuant to their conspiracy and with intent to kill, attack, assault
Almoguera alias "Negro" was shown to Jefferson and he likewise
and stab Jesus Lita, owner and driver of the said tricycle, hitting
identified the person in the video footage as the same "Negro"
him on the different parts of his body which directly caused his
who also stabbed his father.
death.

Dr. Richard Ivan Viray, medico-legal, who conducted an autopsy

Arraignment for the two criminal cases was jointly held on
on the victim, concluded that cause of death is Hemorrhagic
February 13, 2004 wherein appellant pleaded "NOT GUILTY" to
Shock due to multiple stab wounds.6
both charges.5

However, appellant held a different version of the events of this

As indicated in the Appellee’s Brief, the following narration
case. In his Appellant’s Brief, the succeeding account is entered:
constitutes the prosecution’s summation of this case:

[Appellant] denied the accusations against him. On September 6,

On September 5, 2005, at around 8:30 in the evening, the victim
2002, he was working as a laborer/mason in the construction of
Jesus Lita, accompanied by his ten-year old son, Jefferson, went
his uncle’s (Rene Cendana) house located at Area C, Acacia
out aboard the former’s black Kawasaki tricycle. Upon reaching
Homes, Cavite, together with Paul Maglaque, Eman Lozada, Raul
San Jose del Monte Elementary School, appellant Joel Aquino
Lozada and Lorenzo Cendana. They worked from 7:30 x x x in the
together with Noynoy Almoguera a.k.a. Negro, Rodnal, Bing, John
morning until 4:30 x x x in the afternoon, with lunch and
Doe and Peter Doe boarded the tricycle. Noynoy Almoguera
"merienda" breaks from 11:30 x x x to 12:00 o’clock noon and
instructed the victim to proceed to the nipa hut owned by
3:00 o’clock to 3:15 x x x in the afternoon, respectively. After
appellant.
work, they just stayed in their barracks located within their
workplace. They would prepare their food and take supper at
Upon reaching the said nipa hut, Jesus Lita, appellant and his around 7:00 o’clock to 7:30 x x x in the evening, after which,
companions had a shabu session while Jefferson was watching TV. they would smoke cigarettes. They would go to bed at around
After using shabu, Noynoy Almoguera demanded from the victim 8:00 o’clock to 9:00 o’clock in the evening.
to pay Five Hundred Pesos (₱500.00), but the victim said that he
had no money. Appellant shouted at the victim demanding him to
He goes home to Sapang Palay, San Jose Del Monte City, Bulacan
pay. Bing suggested to her companions that they leave the nipa
every Saturday. During Mondays, he would leave their house at
hut. Thus, the victim mounted his tricycle and started the engine.
around 4:00 o’clock to 5:00 o’clock in the morning and would
Noynoy Almoguera and John Doe rode in the tricycle behind the
arrive at his workplace at around 8:00 o’clock or 9:00 o’clock in
victim while appellant and Rodnal rode in the sidecar with
the morning.
Jefferson [sitting] at the toolbox of the tricycle. Inside the tricycle,
appellant pointed a knife at Jefferson while Noynoy Almoguera
stabbed the victim’s side. After the victim was stabbed, he was [Appellant] does not know either Ma. Theresa Lita, his son
transferred inside the tricycle while appellant drove the tricycle to Jefferson, or the victim Jesus Lita. Also, he does not know a
his friend’s house where they again stabbed the victim using the certain Noynoy Almoguera and alias Rodnal. Likewise, he denied
latter’s own knife. Then they loaded the victim to the tricycle and using illegal drugs (i.e., shabu).
drove to a grassy area where appellant and his companions
dumped the body of the victim. Thereafter, they returned to
[Appellant] knew SPO3 Cabading because the former had served
appellant’s residence. Jefferson told the sister of appellant about
as a police aide to him since he was seventeen (17) years old. He
the death of his father but the sister of appellant only told him to
had no misunderstanding with the police officer. He cannot think
sleep.

11
of any reason why Ma. Theresa Lita and Jefferson pointed to him b) In Criminal Case No. 484-M-2003, appellant is
as one of the perpetrators of the subject crimes. sentenced to suffer the penalty of imprisonment of
Fourteen (14) years and Eight (8) months, as minimum,
to Seventeen (17) years and Four (4) months, as
Paul Maglague (Paul) corroborated [appellant’s] testimony. On
maximum and to pay the sum of ₱65,875.00
September 6, 2002, a Friday, [appellant] was working with him,
representing the total installment payments of the
together with Roldan Lozada and Oweng Cendana, at Area C,
motorcycle.9
Dasmariñas, Cavite, in the construction of Boy Cendana’s house,
Paul’s brother-in-law. Paul was the cement mixer while
[appellant], being his partner, carries it to wherever it is needed. Hence, appellant seeks the Court’s favorable action on the instant
Their work ends at 5:00 o’clock in the afternoon. After their work, appeal. In his Brief, appellant reiterated the following errors
they just stayed in their barracks located within their workplace. allegedly committed by the trial court when it adjudged him guilty
[Appellant] was their cook. They usually sleep at around 8:00 of the charges leveled against him:
o’clock to 9:00 o’clock in the evening. They get their pay only
during Saturdays. Hence, they would go home to Bulacan every
I
Saturday.

THE TRIAL COURT GRAVELY ERRED IN FINDING THE ACCUSED-

At around 6:00 o’clock to 7:00 o’clock in the evening of
APPELLANT GUILTY BEYOND REASONABLE DOUBT OF THE
September 7, 2002, they left Cavite and went to their respective
CRIMES CHARGED.
homes in Bulacan.

II
On the night of September 5, 2002, [appellant] slept together
with Paul and their other co-workers inside their barracks. Paul
woke up in the middle of the night to urinate and was not able to THE TRIAL COURT GRAVELY ERRED IN FINDING THAT THE
see whether the accused was there, as there were no lights in the ALLEGED LONE EYEWITNESS POSITIVELY IDENTIFIED THE
place where they were sleeping. The following morning, ACCUSED-APPELLANT AS ONE OF THE PERPETRATORS OF THE
[appellant] was the one who cooked their food.7 (Citations CRIMES.
omitted.)
III
At the conclusion of trial, a guilty verdict was handed down by the
trial court on both criminal charges. The dispositive portion of the
assailed September 18, 2009 Decision states: THE TRIAL COURT GRAVELY ERRED IN FINDING THAT
TREACHERY ATTENDED THE KILLING.10

WHEREFORE, in Criminal Case No. 483-M-2003, the Court finds

the Accused JOEL AQUINO alias "Akong" guilty beyond reasonable Appellant challenges his conviction by arguing that the trial court
doubt of the crime of Murder and hereby sentences him to suffer was not able to prove his guilt beyond reasonable doubt because
the penalty of Reclusion Perpetua. The Court hereby orders the it only relied on the incredible and inconsistent testimony of
accused JOEL AQUINO to pay the heirs of Jesus Lita, the expenses Jefferson Lita – the sole eyewitness presented by the prosecution.
incurred in his burial and funeral services in the total amount of He contends that if Jefferson was indeed present during the
Sixty Thousand One Hundred (₱60,100.00) Pesos as actual murder of his father, Jesus Lita, then it would be highly
damages, the sum of Fifty Thousand (₱50,000.00) Pesos as moral inconceivable that Jefferson would have lived to tell that tale since
damages, and ₱30,000.00 as exemplary damages. he would most likely be also killed by the perpetrators being an
eyewitness to the crime. Furthermore, appellant maintains that he
cannot possibly have committed the crimes attributed to him
In Criminal Case No. 484-M-2003, the Court likewise finds the because, on the night that Jesus was murdered, he was asleep in
accused JOEL AQUINO alias "Akong" guilty beyond reasonable the barracks of a construction site somewhere in Dasmariñas City,
doubt of violating R.A. 6539, otherwise known as the Anti- Cavite.
Carnapping Law, and hereby sentences him to suffer the penalty
of Life Imprisonment pursuant to Section 14 of the said R.A.
6539. The said accused is also ordered to pay the amount of We are not persuaded.
Sixty-Five Thousand Eight Hundred Seventy-Five (₱65,875.00)
Pesos representing the total installment payments of the It is settled in jurisprudence that, absent any showing that the
Motorcycle. lower court overlooked circumstances which would overturn the
final outcome of the case, due respect must be made to its
The accused is also ordered to pay costs of this suit.8 assessment and factual findings, moreover, such findings, when
affirmed by the Court of Appeals, are generally binding and
conclusive upon this Court.11 After a thorough examination of the
Insisting on his innocence, appellant filed an appeal with the records of this case, we find no compelling reason to doubt the
Court of Appeals. However, the appellate court upheld the veracity of the findings and conclusions made by the trial court.
judgment of the trial court along with some modifications. The
dispositive portion of the assailed July 29, 2011 Decision of the
Court of Appeals, in turn, reads: With regard to appellant’s inquiry into the credibility of the lone
eyewitness of the prosecution, we depend upon the principle that
the trial court is in a better position to adjudge the credibility of a
WHEREFORE, the appealed Decision is hereby MODIFIED, as witness. In People v. Vergara,12 we elaborated on this premise in
follows: this wise:

a) In Criminal Case No. 483-M-2003, appellant is When it comes to the matter of credibility of a witness, settled are
sentenced to suffer the penalty of reclusion perpetua the guiding rules some of which are that (1) the appellate court
without eligibility for parole. Appellant is ordered to pay will not disturb the factual findings of the lower court, unless
the heirs of the victim actual damages in the sum of there is a showing that it had overlooked, misunderstood or
₱60,100.00, duly proven during the trial, ₱75,000.00 misapplied some fact or circumstance of weight and substance
civil indemnity, ₱75,000.00 moral damages and that would have affected the result of the case, which showing is
₱30,000.00 exemplary damages. absent herein; (2) the findings of the trial court pertaining to the
credibility of a witness is entitled to great respect since it had the
12
opportunity to examine his demeanor as he testified on the Q Who else?
witness stand, and, therefore, can discern if such witness is telling
the truth or not; and (3) a witness who testifies in a categorical, A The others are not here.
straightforward, spontaneous and frank manner and remains
consistent on cross-examination is a credible witness. 13 Q Now, prior to the stabbing incident and you were able to
recognize the three, one of them you identified here inside the
courtroom. What was Joel Aquino doing when you first saw him?
Jurisprudence also tells us that when a testimony is given in a
candid and straightforward manner, there is no room for doubt A He was inside our tricycle sitting.
that the witness is telling the truth. 14 A perusal of the testimony of
Jefferson indicates that he testified in a manner that satisfies the Q You are referring to the sidecar of your tricycle?
aforementioned test of credibility. More importantly, during his
time at the witness stand, Jefferson positively and categorically A Yes, sir.
identified appellant as one of the individuals who stabbed his
father. Q You said a while ago that you and your father were only the
one[s] on board the tricycle. Why was he, that Joel, now inside
the tricycle?
We quote the relevant portions of Jefferson’s detailed testimony:
A They rode in our tricycle.
[PROSECUTOR CARAIG]
Q You are referring to Aquino together with his two (2)
companions?
Q Why do you know that your father died on the early morning of
September 6, 2002, in Sapang Palay, San Jose del Monte?
A Yes, sir.
xxxx
Q Where in particular did these three (3) persons ride in your
tricycle?
A Because we left the house together at 8:30 in the evening, and
my father looked at the calendar.
A Joel Aquino was inside the sidecar of our tricycle while the other
two (2) rode at the back of my father.
Q You said you were with your father. Do you know where were
you going at that time?
Q At that precise moment, where were you seated?
A To the house of Akong.
A Also inside the sidecar, sir.
Q And what mode of transportation did you take, as you said, you
Q You are sitting side by side with Aquino? Is that what you
were going to the house of Akong?
mean?
A Our tricycle, sir.
A No, sir.
Q Do you know the trade mark of that tricycle of your father?
Q While inside the tricycle, what did Aquino do, if any?
A Kawasaki, sir.
A He pointed his knife at me.
Q Do you know the color of that tricycle?
Q What else?
A Black, sir.
A Nothing else.
Q While on your way to the residence of Akong, could you please
Q What about the two (2) companions, what did they do, if any?
tell us if there was any unusual incident that took place?
A Inunahan nila agad ang Tatay ko sa tagiliran.
A Yes, sir, there was.
Q What do you mean by "inunahan"?
Q What was that?
A They stabbed my father on his side.
A My father was being stabbed. x x x x
Q Did you see what part of the body of your father was stabbed?
Q Did you see who stabbed your father?
COURT:
A Yes, sir.
Witness pointing to the right side of his stomach.
Q How many?
[PROSECUTOR CARAIG]
A There were three (3) of them.
Q What happened to your father when he was stabbed?
Q If you will see those three (3) persons again, can you still
identify them? A He appeared dizzy and he was placed inside the sidecar.
A Yes, sir. Q And who brought your father inside the sidecar?
Q Are they inside the courtroom? A The two (2) other persons previously at the back of my father.
A Yes, sir. Q And at that time, what did Joel do?
Q Will you please look around and point to them. A He started driving the tricycle.
INTERPRETER Q Did Aquino drive the tricycle after he started it?
Witness pointed to accused Joel Aquino inside the courtroom. A Yes, sir.
[PROSECUTOR CARAIG]
13
xxxx A Yes, sir.

Q And did you come to know where did Joel Aquino proceed? Q And what did the three (3) persons do after your father was
already inside the tricycle?
A To their house, sir.
A They started the tricycle.
Q How far was that house of Aquino from the place where your
father was stabbed? Q And then what happened next?

A Quite far, sir. A After they started the motorcycle, they drove the tricycle and
threw away my father.
Q Were you able to reach the house of Joel Aquino?
Q Did you see the act of these three (3) persons throwing your
A Yes, sir. father away from the tricycle?

Q What did Aquino and these two (2) persons do to your father A Yes, sir.
when you reached his house?
Q How far were you from them when they threw your father?
A They brought him down from the tricycle.
A More or less about 5 to 6 meters, sir.
Q Where did these three (3) persons bring your father?
Q Describe the place where your father was thrown.
A They brought my father to their friend.
A It was a grassy area.
Q Did you come to know who was that friend where your father
was brought? Q The grass are tall?

A I do not know the name of their friend. A Short grass, sir.

Q What happened to your father when he was brought to their Q And after your father was thrown away, what did the three (3)
friend? persons do?

A My father was already dying and they went back to him and A They started our tricycle and left my father.15
stabbed him several times.
In the face of this serious accusation, appellant puts forward the
Q How many times was your father stabbed at that time? defense of alibi. We have held that for the defense of alibi to
prosper, the accused must prove not only that he was at some
A I do not know, sir. other place at the time of the commission of the crime, but also
that it was physically impossible for him to be at the locus delicti
Q Did you see who stabbed him again? or within its immediate vicinity.16 These requirements of time and
place must be strictly met. A review of the evidence presented by
A Yes, sir. appellant reveals that it falls short of the standard set by
jurisprudence. Appellant failed to establish by clear and
Q Who?
convincing evidence that it was physically impossible for him to be
A The three (3) of them. at San Jose Del Monte City, Bulacan when Jesus was murdered.
His own testimony revealed that the distance between the locus
Q Do you mean to say that Aquino at that time stabbed your delicti and Dasmariñas City, Cavite is only a four to five hour
father? regular commute.17 Thus, it would not be physically impossible for
him to make the round trip between those two points from dusk
A Yes, sir. till dawn of September 5-6, 2002 and still have more than enough
time to participate in the events surrounding the murder of Jesus.
Q Did you see what kind of weapon did these three (3) persons
use in stabbing your father? A My father’s own knife.
Furthermore, the only person that could corroborate appellant’s
Q Who among the three (3) used your father’s knife? alibi is his friend and former co-worker, Paul Maglaque. However,
we have consistently assigned less probative weight to a defense
A Akong po. of alibi when it is corroborated by friends and relatives since we
have established in jurisprudence that, in order for corroboration
Q That Akong was the friend of the three (3) persons to where to be credible, the same must be offered preferably by
these three (3) persons brought your father? disinterested witnesses.18 Clearly, due to his friendship with
appellant, Maglaque cannot be considered as a disinterested
A No, sir. witness.

Q You are referring to one of the two (2) companions of Joel?

Nevertheless, it is jurisprudentially settled that positive
A Yes, sir. identification prevails over alibi since the latter can easily be
fabricated and is inherently unreliable.19 It is likewise settled that
Q And after that what else transpired next? where there is nothing to indicate that a witness for the
prosecution was actuated by improper motive, the presumption is
A They boarded my father to the tricycle. that he was not so actuated and his testimony is entitled to full
faith and credit.20 In the case at bar, no allegation was made nor
Q How about you? proven to show that Jefferson had any ill motive to falsely testify
against appellant.
A While they were boarding my father to the tricycle, Akong
pointed his knife at my stomach.
With regard to appellant’s argument that Jefferson would surely
Q Were the three (3) persons able to board your father inside have also been killed by his father’s murderers had he indeed
your tricycle? witnessed the crime, we can only surmise and speculate on this
point. Whatever may be the killers’ motivation to spare Jefferson’s

14
life remains a mystery. Nonetheless, it does not adversely affect victim’s death was already fait accompli. Thus, appellant is guilty
what has been clearly established in this case and that is the cold- only of simple carnapping.
blooded murder of Jesus by a group of assailants which includes
herein appellant.
It is enshrined in jurisprudence that when death occurs due to a
crime, the following damages may be awarded: (1) civil indemnity
According to jurisprudence, to be convicted of murder, the ex delicto for the death of the victim; (2) actual or compensatory
following must be established: (1) a person was killed; (2) the damages; (3) moral damages; (4) exemplary damages; and (5)
accused killed him; the killing was with the attendance of any of temperate damages.27
the qualifying circumstances under Article 248 of the Revised
Penal Code; and (4) the killing neither constitutes parricide nor
There being no aggravating circumstance since, as discussed
infanticide.21
earlier, abuse of superior strength is absorbed in the qualifying
circumstance of treachery, the award of ₱75,000.00 as moral
Contrary to appellant’s assertion, the qualifying circumstance of damages should be decreased to ₱50,000.00. Such an amount is
treachery did attend the killing of Jesus.1âwphi1 We have granted even in the absence of proof of mental and emotional
consistently held that treachery is present when the offender suffering of the victim’s heirs.28
commits any of the crimes against persons, employing means,
methods, or forms in the execution, which tend directly and
Pursuant to current jurisprudence, the award of civil indemnity in
specially to insure its execution, without risk to the offender
the amount of ₱75,000.0029 and exemplary damages in the
arising from the defense which the offended party might
amount of ₱30,000.00 30 is correct. The amount of actual damages
make.22 On this point, we quote with approval the Court of
duly proven in court in the sum of ₱60,100.00 is likewise upheld.
Appeals’ discussion of this aspect of the case, to wit:
Finally, we impose interest at the rate of 6% per annum on all
damages from the date of finality of this ruling until fully paid.31
The essence of treachery is the sudden and unexpected attack by
the aggressor on an unsuspecting victim, depriving him of any
With regard to appellant’s conviction for simple carnapping, we
real chance to defend himself. Even when the victim was
affirm the penalty of imprisonment imposed by the Court of
forewarned of the danger to his person, treachery may still be
Appeals which is fourteen (14) years and eight (8) months, as
appreciated since what is decisive is that the execution of the
minimum, to seventeen (17) years and four (4) months, as
attack made it impossible for the victim to defend himself or to
maximum. Likewise, we uphold the order upon appellant to pay
retaliate. Records disclose that Jesus was stabbed by the group on
the sum of ₱65,875.00 representing the total amount of the
the lateral part of his body while he was under the impression
installment payments made on the motorcycle.
that they were simply leaving the place where they had [a] shabu
session. Judicial notice can be taken that when the tricycle driver
is seated on the motorcycle, his head is usually higher or at the WHEREFORE, premises considered, the Decision dated July 29,
level of the roof of the side car which leaves his torso exposed to 2011 of the Court of Appeals in CA-G.R. CR.-H.C. No. 04265,
the passengers who are seated in the side car. Hence, there was affirming the conviction of appellant Joel Aquino Cendana alias
no way for Jesus to even be forewarned of the intended stabbing "Akong" in Criminal Cases No. 483-M-2003 and 484-M-2003, is
of his body both from the people seated in the side car and those hereby AFFIRMED with the MODIFICATIONS that:
seated behind him. Thus, the trial court’s finding of treachery
should be affirmed. There is treachery when the means, methods,
and forms of execution gave the person attacked no opportunity (1) The amount of moral damages to be paid by
to defend himself or to retaliate; and such means, methods, and appellant Joel Aquino Cendana alias "Akong" in Criminal
forms of execution were deliberately and consciously adopted by Case No. 483-M-2003, is decreased from Seventy-Five
the accused without danger to his person. What is decisive in an Thousand Pesos (₱75,000.00) to Fifty Thousand Pesos
appreciation of treachery is that the execution of the attack made (PS0,000.00); and
it impossible for the victim to defend himself. 23 (Citations
omitted.) (2) Appellant Joel Aquino Cendana alias Akong is
ordered to pay interest on all damages at the legal rate
However, in contrast to the pronouncements of both the trial of six percent ( 6%) per annum from the date of finality
court and the Court of Appeals, we cannot consider abuse of of this judgment.SO ORDERED.
superior strength as an aggravating circumstance in this case. As
per jurisprudence, when the circumstance of abuse of superior
strength concurs with treachery, the former is absorbed in the
latter.24 Since there is no aggravating or mitigating circumstance
present, the proper penalty is reclusion perpetua, in accordance
with Article 63 paragraph 2 of the Revised Penal Code, 25 it being
the lesser penalty between the two indivisible penalties for the CONSTANCIO ORDONIO, petitioner,
felony of murder which is reclusion perpetua to death. vs.
THE HON. COURT OF APPEALS and PEOPLE OF THE
However, we concur with the modification made by the Court of PHILIPPINES, respondents.
Appeals with respect to the penalty of life imprisonment for
carnapping originally imposed by the trial court. Life imprisonment In an information dated July 12, 1982 before the Court of First
has long been replaced with the penalty of reclusion perpetua to Instance of Negros Oriental, Constancio Ordonio was indicted of
death by virtue of Republic Act No. 7659. Furthermore, the said the crime of cattle rustling committed as follows:
penalty is applicable only to the special complex crime of
carnapping with homicide which is not obtaining in this case.
Jurisprudence tells us that to prove the special complex crime of That sometimes in the evening of Tuesday, January 5,
carnapping with homicide, there must be proof not only of the 1982, at Bgy. Omanod, Sta. Catalina, Negros Oriental,
essential elements of carnapping, but also that it was the original and within the preliminary jurisdiction of this Honorable
criminal design of the culprit and the killing was perpetrated in the Court, the above-named accused, with the intent of
course of the commission of the carnapping or on the occasion gain, did then and there willfully, unlawfully and
thereof.26 The appellate court correctly observed that the killing of feloniously took, steal, and carry away one (1) male
Jesus cannot qualify the carnapping into a special complex crime cow, color red and white (cabang) highbreed, more or
because the carnapping was merely an afterthought when the less eleven months old, without the knowledge and
consent of the owner Mr. Anastacio Pajunar.
15
 That as a result thereof, the victim Anastacio Pajunar In a decision dated January 26, 1988, the trial court* rendered
was damaged and prejudiced in the amount of SEVEN this judgment of conviction:
HUNDRED PESOS (P700.00), Philippine Currency, as the
estimated cost and value of the stolen cow.
IN VIEW OF THE FOREGOING, it is the opinion of this
Court and so holds that the prosecution has proved
With damages. beyond the shadow and doubt the guilt of accused and
finds said accused guilty of the clime of Violation of
Presidential Decree No. 533, otherwise known as the
Contrary to law.1
Anti-Cattle Rustling Law of 1974. There being no
mitigating nor aggravating circumstances and applying
As found by the trial court and affirmed by the Court of Appeals, the Indeterminate Sentence Law, accused Constancio
the attendant circumstances which precipitated this petition for Ordonio should be punished with a penalty next lower by
review on certiorari are clear. one (1) degree than that provided for the crime
committed and therefore accused Constancio Ordonio
should be sentenced to suffer the penalty of
A study of this case showed that on January 6, 1982, imprisonment ranging from four (4) years, two (2)
Anastacio Pajunar discovered the loss of his eleven months and one (1) day as minimum to six (6) years as
month old cow (which he pastured 100 meters from as maximum of  prision correccional.
house on January 5, 1982). He searched for it and asked
his not too distant neighbor, Constancio Ordonio,
whether he had seen it. Ordonio allegedly denied having SO ORDERED.4
seen it, and when Pajunar heard the mooing of a cow,
Ordonio was quick to say that was the cow he was
Upon motion of the accused on the ground of newly discovered
tending. However, Pajunar followed the direction of the
evidence, and against the vigorous objection of the prosecution,
sound and discovered that it was his own cow. Ordonio
the trial court conducted a new trial. This time, the defense
insisted that it was his brother's cow which was
presented Pastor Banquerigo, an 81-year-old barrio entertainer,
entrusted to him. So Pajunar tied it near Ordonio's
who substantially corroborated the account of Constancio Ordonio.
house and left to report the matter to the authorities.
Pastor swore that on January 6, 1982, he saw Constancio take
possession of a cow and tie it near his house where it could be
Pajunar went to Barangay Captain Leopoldo easily seen by passers-by.
Enumerabellon who gave him a note for the PC. Two PC
soldiers accompanied him and went with him to the
Unconvinced, the trial court in the Order dated August 11,
house of Barrio Councilman Leonardo Pajaron, and
19855 maintained its judgment of conviction, reasoning that upon
together they went to Ordonio's place. He also took with
consideration of the testimony of Pastor Banquerigo, it found no
him his milking cow and upon arrival at Ordonio's place,
urgent reason to disturb its decision dated January 26, 1988. The
the calf ran and approached its mother. The PC soldiers
accused took exception to the judgment of the trial court and
told the wife that since Ordonio was not around, the calf
interposed an appeal to the Court of Appeals, imputing the
had to be entrusted to the barrio official and the wife
following errors:6
consented. The following day, the 7th of January, 1982,
they met with sub-barangay captain Enumerabellon.
When asked why he, Ordonio was claiming the cow, his a) The lower court erred in presuming that the elements
answer was that it was his brother's cow entrusted to of the crime are obtaining in the case at bar;
him But Ordonio's wife told her husband thus, "Ne, let's
just give the cow to the real owner and we will pay the
b) The Court a quo erred to bank merely on the
damages.2
weakness of the evidence of the accused, while it failed,
of its own evidence, to prove the guilt of the accused
In his defense, the accused, Constancio Ordonio, presented a beyond reasonable doubt;
different version.
c) The lower court overlooked certain facts of substance
. . . Ordonio declared that on January 6, 1982, at about and value that, if considered, would affect the outcome
6:00 o'clock A.M., Santiago Oyhoc reported to him that of the case, and the decision is based on
he saw a cow in his mongo and corn farm. Ordonio just misapprehension of facts.
wanted to drive the cow out of his farm but Oyhoc
suggested it be caught so that it would not return So,
Unimpressed, the Court of Appeals** affirmed in toto the decision
with a rope he caught the cow and tied it near his
of the trial court,7 and subsequently denied the accused's motion
house. He claimed that he recognized the cow to be
for reconsideration through a Resolution dated November 13,
Pajunar's and even left instructions to his wife to return
1989.
it to Pajunar should he come for it. In the meantime, he
went to Calanian about 9 kilometers from his house to
sell corn. When he returned in the evening, he learned The accused now comes before this Court, reiterating all the three
from his wife that they were accused of stealing the cow errors he assigned to the trial court and the Court of Appeals.
and that the two PC soldiers who came together with
Pajunar and Pajaron took the cow to place it in the
custody of Enumerabellon. That very evening too, he got The accused faults the decision of the respondent court for its
a letter from Enumerabellon instructing him to go to his misapprehension of facts.1âwphi1 The actual raking of the calf
place. So that on the 7th, he and as wife went to see was not proven by the prosecution, he points out. That the
Enumerabellon. At Enumerabellon's house were also the complainant found the calf tied in the appellant's upland property
complainant, Anastacio Pajunar, barrio councilman does not make him a cattle rustler. Nor does his supposed failure
Pajaron and Pajunar's son. An investigation was and/or refusal to tell the complainant where the cow was even if
conducted with Ordonio and his wife saying that Pajunar he (the accused) knew where it was. Actually, the accused claims,
owned the cow, so it was given back to Pajunar who he was at that time in Calanian — nine kilometers from Sta.
brought it home.3 Catalina — how could the complainant have asked him about his
calf? And the mere stepping on the rope (granting this is true) to
which the calf was tied when complainant towed it does not

16
constitute theft of the calf either. Because if the accused had conduct of the calf manifests all the signs of the young whether
intended to steal it why would he tie it near his house? human or not, on finding a lost mother.15

The accused asserts that the animal had gone astray and Section 2(c) of P.D. 533, defines cattle rustling as follows:
consequently destroyed his plants. To prevent further damage to
the plants he caught it and tied it near his house. He thought it
Sec. 2(c). Cattle rustling is taking away by any means,
burdensome to report the matter to the Barangay Captain or
methods or schemes, without the consent of the
bring the calf to him. The complainant should not kick up a storm
owner/raiser, of any of the above mentioned animals
over the matter as he was able to recover his calf anyway.
whether or not for profit or gain, or whether committed
with or without violence against or intimidation of any
Besides, the accused alleges that the complainant pressed person or force upon things. It includes the killing of
charges against him out of spite as he and the complainant were large cattle, or taking its meat or hide without the
litigants in a land dispute. The complainant tried to "blackmail" consent of the owner/raiser.
him into abandoning the civil case in exchange for his dropping of
this case. But he (the accused) refused, so the complainant
Note the phraseology of the provision — "taking away by any
proceeded to file this case in the trial court.
means, methods or schemes." Thus, intent to gain may be
inferred from the deliberate failure to deliver the lost property to
The petition must fail. the proper person, the finder knowing that the property does not
belong to him.16 In this case, the several circumstances
enumerated earlier constitute an unbroken chain of events which
We note at the outset that in petitions under Rule 45 of the Rules
leads to one fair and reasonable conclusion — which is that the
of Court like this case, review is limited only to errors of law
accused indeed took the calf with the intent to appropriate it. 17 To
committed by the Court of Appeals. Factual findings of the trial
recapitulate, the stubborn insistence of the accused that the
court which are especially confirmed by the Court of Appeals are
missing calf belonged to his brother, Agustin, knowing fully well
conclusive and can no longer be reviewed. 8 Of course, there are
that it belonged to the complainant (as he later admitted in his
well-defined exceptions, for instance, misapprehension of
answers to questions of the trial court), in essence, is cattle
facts9 which the accused now posits.
rustling.

The records however show that the respondent court, as well as

In discrediting the evidence of the defense, we quote with
the trial court, committed no such misapprehension of facts.
approval the decision of the Court of Appeals.

Significantly, the lower courts did not anchor the conviction of the
The evidence is clear that appellant twice denied
appellant on what he alleges to have resulted in a
knowledge of the calf when private complainant asked
misapprehension of facts. The lower courts did not convict the
him if he has seen the missing calf. And when the calf
appellant on the basis of the missing calf s having been found tied
was finally located by the private complainant, the
in the accused's premises nor on his failure and/or refusal to tell
appellant stopped the private complainant from bringing
the owner the whereabouts of the calf, nor on the accused's
the calf home alleging that the calf belongs to his
stepping on the rope to which the "lost" calf was tied when the
brother Agustin which was entrusted to his care.
complainant was towing it. Rather, the lower courts convicted him
However, after realizing that his claim can no longer
on the basis of his actuations when the lost calf was found in his
hold water because private complainant has proved his
possession. The lower courts noted the following:
ownership of the calf in question, appellant now avers in
as testimony that he caught the calf because it was
1. When complainant discovered the loss of his calf, he eating and destroying his plants and it was his intention
inquired from petitioner whether he has seen the calf to return the calf to the owner. Appellant reasoned out
but the latter denied having seen it.10 further that he was not in his house when private
complainant went there but that it was only his wife who
was at home and with whom the private complainant
2. When complainant queried the whereabouts of the talked. We are not the least convinced of appellant's
calf for the second time, accused anew denied having stand. To US, such a posture now being taken by the
seen it.11 appellant is nothing but a last and desperate attempt to
exculpate himself from liability.18
3. When complainant eventually located the calf in
accused estate the latter refused to give the calf x x x           x x x          x x x
claiming it belonged to his brother, Agustin.12

[And] if it is true likewise that it was appellant's wife

4. Complainant needed the assistance of a barangay only with whom private complainant talked on that day
official and two PC soldiers to dispossess accused of that of January 6, 1982 when the latter was looking for his
calf and eventually placed it in the custody of the missing calf because the appellant was allegedly not at
Barangay Captain.13 home, how come that appellant's wife was not even
presented by appellant as a witness to rebut at least the
5. At the Barangay Captain's residence accused still clear testimony of private complainant that it was the
insisted that the calf belonged to his brother, Agustin. 14 appellant he talked with that day?19

The accused-petitioner had the temerity to act thus even if the Our thorough review of the case convinces us of the guilt of the
calf did not belong to him, but to the complainant as he admitted appellant beyond reasonable doubt, hence the respondent court
before the trial court. But independent of the admission by the did not commit any reversible error in affirming the decision of
accused, complainant ownership of the calf is further forfeited the trial court.
with this one important circumstance. When complainant went to
accused's house, accompanied by barangay councilman, Pajunar, WHEREFORE, the decision of the respondent Court of Appeals,
and two PC soldiers, the milking cow was brought along. Upon dated August 9, 1989, and its Resolution, dated November 13,
arrival, the PC soldiers let loose the calf and the latter 1989, are AFFIRMED. No costs.
immediately ran to the milking cow to suck on its milk. Such
17
VALENZUELA VS PEOPLE City. The applications alleged that petitioners were conducting
illegal toll bypass operations, which amounted to theft and
violation of Presidential Decree No. 401 (Penalizing the
FACTS:
Unauthorized Installation of Water, Electrical or Telephone
Petitioner and Jovy Calderon were sighted outside the Super Sale Connections, the Use of Tampered Water or Electrical Meters and
Club, a supermarket within the ShoeMart (SM) complex along Other Acts), to the damage and prejudice of the Philippine Long
North EDSA, by Lorenzo Lago (Lago), a security guard who was Distance Telephone Company (PLDT).6
then manning his post at the open parking area of the
supermarket.  Lago saw petitioner, who was wearing an On 25 September 2001, the trial court conducted a hearing on the
identification card with the mark Receiving Dispatching Unit applications for search warrants. The applicant and Jose Enrico
(RDU), hauling a pushcart with cases of detergent of the well- Rivera (Rivera) and Raymund Gali (Gali) of the Alternative Calling
known Tide brand. Petitioner unloaded these cases in an open Pattern Detection Division of PLDT testified as witnesses.
parking space, where Calderon was waiting. Petitioner then
returned inside the supermarket, and after five (5) minutes,
emerged with more cartons of Tide Ultramatic and again unloaded According to Rivera, a legitimate international long distance call
these boxes to the same area in the open parking space. When should pass through the local exchange or public switch telephone
Lago asked petitioner for a receipt of the merchandise, petitioner network (PSTN) on to the toll center of one of the international
and Calderon reacted by fleeing on foot, but Lago fired a warning gateway facilities (IGFs)7 in the Philippines.8 The call is then
shot to alert his fellow security guards of the incident. Petitioner transmitted to the other country through voice circuits, either via
and Calderon were apprehended at the scene, and the stolen fiber optic submarine cable or microwave radio using satellite
merchandise recovered. Before the Court of Appeals, petitioner facilities, and passes the toll center of one of the IGFs in the
argued that he should only be convicted of frustrated theft since destination country. The toll center would then meter the call,
at the time he was apprehended, he was never placed in a which will pass through the PSTN of the called number to
position to freely dispose of the articles stolen. complete the circuit. In contrast, petitioners were able to provide
international long distance call services to any part of the world
by using PLDT’s telephone lines, but bypassing its IGF. This
ISSUE:
scheme constitutes toll bypass, a "method of routing and
Is the crime committed frustrated or consummated theft? completing international long distance calls using lines, cables,
antenna and/or wave or frequency which connects directly to the
local or domestic exchange facilities of the originating country or
HELD:
the country where the call is originated."9
The crime is consummated. The following elements of theft as
provided for in Article 308 of the Revised Penal Code, namely: (1) On the other hand, Gali claimed that a phone number serviced by
that there be taking of personal property; (2) that said property PLDT and registered to WWC was used to provide a service called
belongs to another; (3) that the taking be done with intent to GlobalTalk, "an internet-based international call service, which
gain; (4) that the taking be done without the consent of the can be availed of via prepaid or billed/post-paid
owner; and (5) that the taking be accomplished without the use of accounts."10 During a test call using GlobalTalk, Gali dialed the
violence against or intimidation of persons or force upon things. local PLDT telephone number 6891135, the given access line.
There was no need of an intent to permanently deprive the owner After a voice prompt required him to enter the user code and
of his property to constitute an unlawful taking. personal identification number (PIN) provided under a GlobalTalk
pre-paid account, he was then requested to enter the destination
So long as the descriptive circumstances that qualify the taking number, which included the country code, phone number and a
are present, including animo lucrandi and apoderamiento, the pound (#) sign. The call was completed to a phone number in
completion of the operative act that is the taking of personal Taiwan. However, when he checked the records, it showed that
property of another establishes, at least, that the transgression the call was only directed to the local number 6891135. This
went beyond the attempted stage. Insofar as we consider the indicated that the international test call using GlobalTalk bypassed
present question, unlawful taking is most material in this respect. PLDT’s IGF.
Unlawful taking, which is the deprivation of one’s personal
property, is the element which produces the felony in its
Based on the records of PLDT, telephone number 6891135 is
consummated stage. At the same time, without unlawful taking as
registered to WWC with address at UN 2103, 21/F Orient Square
an act of execution, the offense could only be attempted theft, if
Building, Emerald Avenue, Barangay San Antonio, Pasig
at all. With these considerations, we can only conclude that under
City.11 However, upon an ocular inspection conducted by Rivera at
Article 308 of the Revised Penal Code, theft cannot have a
this address, it was found that the occupant of the unit is Planet
frustrated stage. Theft can only be attempted or consummated.
Internet, which also uses the telephone lines registered to
WWC.12 These telephone lines are interconnected to a server and
used as dial-up access lines/numbers of WWC.

WORLD WIDE WEB VS PEOPLE

Gali further alleged that because PLDT lines and equipment had
been illegally connected by petitioners to a piece of equipment
Petitioners filed the present Petitions under Rule 45 of the Rules that routed the international calls and bypassed PLDT’s IGF, they
of Court to set aside the Decision 1 dated 20 August 2003 and the violated Presidential Decree (P.D.) No. 401 as amended,13 on
Resolution2 dated 27 November 2003 of the Court of Appeals (CA) unauthorized installation of telephone connections. Petitioners
reversing the quashal of the search warrants previously issued by also committed theft, because through their misuse of PLDT
the Regional Trial Court (RTC). phone lines/numbers and equipment and with clear intent to gain,
they illegally stole business and revenues that rightly belong to
PLDT. Moreover, they acted contrary to the letter and intent of
Police Chief Inspector Napoleon Villegas of the Regional
Republic Act (R.A.) No. 7925, because in bypassing the IGF of
Intelligence Special Operations Office (RISOO) of the Philippine
PLDT, they evaded the payment of access and bypass charges in
National Police filed applications for warrants 3 before the RTC of
its favor while "piggy-backing" on its multi-million dollar facilities
Quezon City, Branch 78, to search the office premises of
and infrastructure, thus stealing its business revenues from
petitioner Worldwide Web Corporation (WWC) 4 located at the 11th
international long distance calls. Further, petitioners acted in
floor, IBM Plaza Building, No. 188 Eastwood City, Libis, Quezon
gross violation of Memorandum Circular No. 6-2-92 of the
City, as well as the office premises of petitioner Planet Internet
National Telecommunications Commission (NTC) prohibiting the
Corporation (Planet Internet)5 located at UN 2103, 21/F Orient
Square Building, Emerald Avenue, Barangay San Antonio, Pasig
18
use of customs premises equipment (CPE) without first securing e) PABX or Switching Equipment, Tapes or
type approval license from the latter. equipment or device capable of connecting
telephone lines;
Based on a five-day sampling of the phone line of petitioners,
PLDT computed a monthly revenue loss of ₱764,718.09. PLDT f) Software, Diskettes, Tapes or equipment or
likewise alleged that petitioners deprived it of foreign exchange device used for recording or storing
revenues, and evaded the payment of taxes, license fees, and information; and
charges, to the prejudice of the government.
g) Manuals, application forms, access codes,
During the hearing, the trial court required the identification of billing statement, receipts, contracts, checks,
the office premises/units to be searched, as well as their floor orders, communications and documents, lease
plans showing the location of particular computers and servers and/or subscription agreements or contracts,
that would be taken.14 communications and documents relating to
securing and using telephone lines and/or
equipment.
On 26 September 2001, the RTC granted the application for
search warrants.15 Accordingly, the following warrants were issued
against the office premises of petitioners, authorizing police 3. Search Warrant No. Q-01-3858,18 issued for violation
officers to seize various items: of paragraph one (1) of Article 308 (theft) in relation to
Article 309 of the Revised Penal Code against Planet
Internet Corporation/Mercury One, Robertson S. Chiang,
1. Search Warrant No. Q-01-3856,16 issued for violation
Nikki S. Chiang, Maria Sy Be Chiang, Ben C. Javellana,
of paragraph one (1) of Article 308 (theft) in relation to
Carmelita Tuason with business address at UN 2103,
Article 309 of the Revised Penal Code against WWC,
21/F Orient Square Building, Emerald Avenue, Barangay
Adriel S. Mirto, Kevin L. Tan, Cherryll L. Yu, Carmelo J.
San Antonio, Pasig City:
Canto, III, Ferdinand B. Masi, Message One International
Corporation, Adriel S. Mirto, Nova Christine L. Dela Cruz,
Robertson S. Chiang, and Nolan B. Sison with business a) Modems or Routers or any equipment or
address at 11/F IBM Plaza Building, No. 188 Eastwood device that enables data terminal equipment
City, Cyberpark Libis, Quezon City: such as computers to communicate with other
data terminal equipment via a telephone line;
a) Computers or any equipment or device
capable of accepting information, applying the b) Computers or any equipment or device
process of the information and supplying the capable of accepting information applying the
results of this process; prescribed process of the information and
supplying the results of this process;
b) Software, Diskettes, Tapes or equipment or
device used for recording or storing c) Lines, Cables and Antennas or equipment or
information; and c) Manuals, application forms, device capable of transmitting air waves or
access codes, billing statements, receipts, frequency, such as an IPL and telephone lines
contracts, communications and documents and equipment;
relating to securing and using telephone lines
and/or equipment.
d) Multiplexers or any equipment or device
that enables two or more signals from different
2. Search Warrant No. Q-01-3857,17 issued for violation sources to pass through a common cable or
of P.D. 401 against Planet Internet Corporation/Mercury transmission line;
One, Robertson S. Chiang, Nikki S. Chiang, Maria Sy Be
Chiang, Ben C. Javellana, Carmelita Tuason with
e) PABX or Switching Equipment, Tapes or
business address at UN 2103, 21/F Orient Square
equipment or device capable of connecting
Building, Emerald Avenue, Barangay San Antonio, Pasig
telephone lines;
City:

f) Software, Diskettes, Tapes or equipment or

a) Modems or Routers or any equipment or
device used for recording or storing
device that enables data terminal equipment
information; and
such as computers to communicate with other
data terminal equipment via a telephone line;
g) Manuals, application forms, access codes,
billing statement, receipts, contracts, checks,
b) Computers or any equipment or device
orders, communications and documents, lease
capable of accepting information applying the
and/or subscription agreements or contracts,
prescribed process of the information and
communications and documents relating to
supplying the results of this process;
securing and using telephone lines and/or
equipment.
c) Lines, Cables and Antennas or equipment or
device capable of transmitting air waves or
The warrants were implemented on the same day by RISOO
frequency, such as an IPL and telephone lines
operatives of the National Capital Region Police Office.
and equipment;

Over a hundred items were seized,19 including 15 central

d) Multiplexers or any equipment or device
processing units (CPUs), 10 monitors, numerous wires, cables,
that enables two or more signals from different
diskettes and files, and a laptop computer.20 Planet Internet notes
sources to pass through a common cable or
that even personal diskettes of its employees were confiscated;
transmission line;
and areas not devoted to the transmission of international calls,
such as the President’s Office and the Information Desk, were
19
searched. Voltage regulators, as well as reserve and broken III. Whether the CA seriously erred in holding that the
computers, were also seized. Petitioners WWC and Cherryll assailed search warrants were not general warrants.
Yu,21 and Planet Internet22 filed their respective motions to quash
the search warrants, citing basically the same grounds: (1) the
OUR RULING
search warrants were issued without probable cause, since the
acts complained of did not constitute theft; (2) toll bypass, the act
complained of, was not a crime; (3) the search warrants were I.
general warrants; and (4) the objects seized pursuant thereto
were "fruits of the poisonous tree."
1. An application for a search warrant is not a criminal
action; conformity of the public prosecutor is not necessary to
PLDT filed a Consolidated Opposition23 to the motions to quash. give the aggrieved party personality to question an order
quashing search warrants.
In the hearing of the motions to quash on 19 October 2001, the
test calls alluded to by Gali in his Affidavit were shown to have Petitioners contend that PLDT had no personality to question the
passed the IGF of Eastern Telecommunications (Philippines) Inc. quashal of the search warrants without the conformity of the
(Eastern) and of Capital Wireless (Capwire). 24 Planet Internet public prosecutor. They argue that it violated Section 5, Rule 110
explained that Eastern and Capwire both provided international of the Rules of Criminal Procedure, to wit:
direct dialing services, which Planet Internet marketed by virtue
of a "Reseller Agreement." Planet Internet used PLDT lines for the
first phase of the call; but for the second phase, it used the IGF of SEC. 5. Who must prosecute criminal actions. — All criminal
either Eastern or Capwire. Planet Internet religiously paid PLDT actions commenced by a complaint or information shall be
for its domestic phone bills and Eastern and Capwire for its IGF prosecuted under the direction and control of the prosecutor.
usage. None of these contentions were refuted by PLDT.
The above provision states the general rule that the public
The RTC granted the motions to quash on the ground that the prosecutor has direction and control of the prosecution of "(a)ll
warrants issued were in the nature of general warrants. 25 Thus, criminal actions commenced by a complaint or information."
the properties seized under the said warrants were ordered However, a search warrant is obtained, not by the filing of a
released to petitioners. complaint or an information, but by the filing of an application
therefor.34

PLDT moved for reconsideration, 26 but its motion was denied 27 on
the ground that it had failed to get the conformity of the City Furthermore, as we held in Malaloan v. Court of Appeals, 35 an
Prosecutor prior to filing the motion, as required under Section 5, application for a search warrant is a "special criminal process,"
Rule 110 of the Rules on Criminal Procedure. rather than a criminal action:

THE CA RULING The basic flaw in this reasoning is in erroneously equating the
application for and the obtention of a search warrant with the
institution and prosecution of a criminal action in a trial court. It
PLDT appealed to the CA, where the case was docketed as CA- would thus categorize what is only a special criminal process, the
G.R. No. 26190. The CA reversed and set aside the assailed RTC power to issue which is inherent in all courts, as equivalent to a
Resolutions and declared the search warrants valid and effective.28 criminal action, jurisdiction over which is reposed in specific
courts of indicated competence. It ignores the fact that the
requisites, procedure and purpose for the issuance of a search
Petitioners separately moved for reconsideration of the CA
warrant are completely different from those for the institution of a
ruling.29 Among the points raised was that PLDT should have filed
criminal action.
a petition for certiorari rather than an appeal when it questioned
the RTC Resolution before the CA. The appellate court denied the
Motions for Reconsideration.30 For, indeed, a warrant, such as a warrant of arrest or a search
warrant, merely constitutes process. A search warrant is defined
in our jurisdiction as an order in writing issued in the name of the
Rule 45 Petitions were separately filed by petitioners WWC and
People of the Philippines signed by a judge and directed to a
Cherryll Yu,31 and Planet Internet32 to assail the CA Decision and
peace officer, commanding him to search for personal property
Resolution. The Court consolidated the two Petitions. 33
and bring it before the court. A search warrant is in the nature of
a criminal process akin to a writ of discovery. It is a special and
ISSUES peculiar remedy, drastic in its nature, and made necessary
because of a public necessity.
I. Whether the CA erred in giving due course to PLDT’s
appeal despite the following procedural infirmities: In American jurisdictions, from which we have taken our jural
concept and provisions on search warrants, such warrant is
definitively considered merely as a process, generally issued by a
1. PLDT, without the conformity of the public
court in the exercise of its ancillary jurisdiction, and not a criminal
prosecutor, had no personality to question the
action to be entertained by a court pursuant to its original
quashal of the search warrants;
jurisdiction. We emphasize this fact for purposes of both issues as
formulated in this opinion, with the catalogue of authorities
2. PLDT assailed the quashal orders via an herein.36 (Emphasis supplied)
appeal rather than a petition for certiorari
under Rule 65 of the Rules of Court.
Clearly then, an application for a search warrant is not a criminal
action. Meanwhile, we have consistently recognized the right of
II. Whether the assailed search warrants were issued parties to question orders quashing those warrants. 37 Accordingly,
upon probable cause, considering that the acts we sustain the CA’s ruling that the conformity of the public
complained of allegedly do not constitute theft. prosecutor is not necessary before an aggrieved party moves for
reconsideration of an order granting a motion to quash search
warrants.

20
2. An order quashing a search warrant, which was issued for the issuance of a search warrant is accorded respect by
independently prior to the filing of a criminal action, partakes reviewing courts when the finding has substantial basis.
of a final order that can be the proper subject of an appeal.
Petitioners claim that no probable cause existed to justify the
Petitioners also claim that since the RTC ruling on the motions to issuance of the search warrants.
quash was interlocutory, it cannot be appealed under Rule 41 of
the Rules of Court. PLDT should have filed a Rule 65 petition
The rules pertaining to the issuance of search warrants are
instead. Petitioners cite, as authority for their position, Marcelo v.
enshrined in Section 2, Article III of the 1987 Constitution:
de Guzman.38 The Court held therein as follows:

Section 2. The right of the people to be secure in their persons,

But is the order of Judge de Guzman denying the motion to quash
houses, papers, and effects against unreasonable searches and
the search warrant and to return the properties seized thereunder
seizures of whatever nature and for any purpose shall be
final in character, or is it merely interlocutory? In Cruz vs.
inviolable, and no search warrant or warrant of arrest shall issue
Dinglasan, this Court, citing American jurisprudence, resolved this
except upon probable cause to be determined personally by the
issue thus:
judge after examination under oath or affirmation of the
complainant and the witnesses he may produce, and particularly
Where accused in criminal proceeding has petitioned for the describing the place to be searched and the persons or things to
return of goods seized, the order of restoration by an inferior be seized. (Emphasis supplied)
court is interlocutory and hence, not appealable; likewise, a
denial, by the US District Court, of defendant's petition for the
In the issuance of a search warrant, probable cause requires
return of the articles seized under a warrant is such an
"such facts and circumstances that would lead a reasonably
interlocutory order. (56 C.J. 1253).
prudent man to believe that an offense has been committed and
the objects sought in connection with that offense are in the place
A final order is defined as one which disposes of the whole subject to be searched."42
matter or terminates a particular proceeding or action, leaving
nothing to be done but to enforce by execution what has been
There is no exact test for the determination of probable cause 43 in
determined; on the other hand an order is interlocutory if it does
the issuance of search warrants. It is a matter wholly dependent
not dispose of a case completely, but leaves something more to
on the finding of trial judges in the process of exercising their
be done upon its merits. Tested against this criterion, the search
judicial function.44 They determine probable cause based on
warrant issued in Criminal Case No. 558 is indisputably of
"evidence showing that, more likely than not, a crime has been
interlocutory character because it leaves something more to be
committed and that it was committed" by the offender.45
done in the said criminal case, i.e., the determination of the guilt
of the accused therein.39
When a finding of probable cause for the issuance of a search
warrant is made by a trial judge, the finding is accorded respect
Petitioners’ reliance upon Marcelo is misplaced.
by reviewing courts:

An application for a search warrant is a judicial process conducted

x x x. It is presumed that a judicial function has been regularly
either as an incident in a main criminal case already filed in court
performed, absent a showing to the contrary. A magistrate’s
or in anticipation of one yet to be filed. 40 Whether the criminal
determination of probable cause for the issuance of a search
case (of which the search warrant is an incident) has already been
warrant is paid great deference by a reviewing court, as long as
filed before the trial court is significant for the purpose of
there was substantial basis for that determination. Substantial
determining the proper remedy from a grant or denial of a motion
basis means that the questions of the examining judge brought
to quash a search warrant.
out such facts and circumstances as would lead a reasonably
discreet and prudent man to believe that an offense has been
Where the search warrant is issued as an incident in a pending committed, and the objects in connection with the offense sought
criminal case, as it was in Marcelo, the quashal of a search to be seized are in the place sought to be searched. 46
warrant is merely interlocutory. There is still "something more to
be done in the said criminal case, i.e., the determination of the
The transcript of stenographic notes during the hearing for the
guilt of the accused therein." 41
application for search warrants on 25 September 2001 shows that
Judge Percival Mandap Lopez asked searching questions to the
In contrast, where a search warrant is applied for and issued in witnesses and particularly sought clarification on the alleged
anticipation of a criminal case yet to be filed, the order quashing illegal toll bypass operations of petitioners, as well as the pieces
the warrant (and denial of a motion for reconsideration of the of evidence presented. Thus, the Court will no longer disturb the
grant) ends the judicial process. There is nothing more to be done finding of probable cause by the trial judge during the hearing for
thereafter. the application for the search warrants.

Thus, the CA correctly ruled that Marcelo does not apply to this However, petitioners insist that the determination of the existence
case. Here, the applications for search warrants were instituted as of probable cause necessitates the prior determination of whether
principal proceedings and not as incidents to pending criminal a crime or an offense was committed in the first place. In support
actions. When the search warrants issued were subsequently of their contention that there was no probable cause for the
quashed by the RTC, there was nothing left to be done by the trial issuance of the search warrants, petitioners put forward the
court. Thus, the quashal of the search warrants were final orders, adage nullum crimen, nulla poena sine lege – there is no crime
not interlocutory, and an appeal may be properly taken when there is no law punishing it. Petitioners argue that there is
therefrom. no law punishing toll bypass, the act complained of by PLDT.
Thus, no offense was committed that would justify the issuance of
the search warrants.
II.

According to PLDT, toll bypass enables international calls to

Trial judges determine probable cause in the exercise of their
appear as local calls and not overseas calls, thus effectively
judicial functions. A trial judge’s finding of probable cause
evading payment to the PLDT of access, termination or bypass
charges, and accounting rates; payment to the government of
21
taxes; and compliance with NTC regulatory requirements. PLDT "anything susceptible of appropriation." 50 It includes ownership of
concludes that toll bypass is prohibited, because it deprives telephone services, which are protected by the penal provisions
"legitimate telephone operators, like PLDT… of the compensation on theft. We therein upheld the Amended Information charging
which it is entitled to had the call been properly routed through its the petitioner with the crime of theft against PLDT inasmuch as
network."47 As such, toll bypass operations constitute theft, the allegation was that the former was engaged in international
because all of the elements of the crime are present therein. simple resale (ISR) or "the unauthorized routing and completing
of international long distance calls using lines, cables, antennae,
and/or air wave frequency and connecting these calls directly to
On the other hand, petitioners WWC and Cherryll Yu argue that
the local or domestic exchange facilities of the country where
there is no theft to speak of, because the properties allegedly
destined."51 We reasoned that since PLDT encodes, augments,
taken from PLDT partake of the nature of "future earnings and
enhances, decodes and transmits telephone calls using its
lost business opportunities" and, as such, are uncertain,
complex communications infrastructure and facilities, the use of
anticipative, speculative, contingent, and conditional. PLDT cannot
these communications facilities without its consent constitutes
be deprived of such unrealized earnings and opportunities
theft, which is the unlawful taking of telephone services and
because these do not belong to it in the first place.
business. We then concluded that the business of providing
telecommunications and telephone services is personal property
Upon a review of the records of the case, we understand that the under Article 308 of the Revised Penal Code, and that the act of
Affidavits of Rivera and Gali that accompanied the applications for engaging in ISR is an act of "subtraction" penalized under said
the search warrants charge petitioners with the crime, not of toll article.
bypass perse, but of theft of PLDT’s international long distance
call business committed by means of the alleged toll bypass
Furthermore, toll bypass operations could not have been
operations.
accomplished without the installation of telecommunications
equipment to the PLDT telephone lines. Thus, petitioners may also
For theft to be committed in this case, the following elements be held liable for violation of P.D. 401, to wit:
must be shown to exist: (1) the taking by petitioners (2) of
PLDT’s personal property (3) with intent to gain (4) without the
Section 1. Any person who installs any water, electrical, telephone
consent of PLDT (5) accomplished without the use of violence
or piped gas connection without previous authority from the
against or intimidation of persons or the use of force upon
Metropolitan Waterworks and Sewerage System, the Manila
things.48
Electric Company, the Philippine Long Distance Telephone
Company , or the Manila Gas Corporation, as the case may be,
Petitioners WWC and Cherryll Yu only take issue with categorizing tampers and/or uses tampered water, electrical or gas meters,
the earnings and business as personal properties of PLDT. jumpers or other devices whereby water, electricity or piped gas
However, in Laurel v. Abrogar, 49 we have already held that the is stolen; steals or pilfers water, electric or piped gas meters, or
use of PLDT’s communications facilities without its consent water, electric and/or telephone wires, or piped gas pipes or
constitutes theft of its telephone services and business: conduits; knowingly possesses stolen or pilfered water, electrical
or gas meters as well as stolen or pilfered water, electrical and/or
telephone wires, or piped gas pipes and conduits, shall, upon
x x x "[I]nternational long distance calls," the matter alleged to be conviction, be punished with prision correccional in its minimum
stolen in the instant case, take the form of electrical energy, it period or a fine ranging from two thousand to six thousand pesos,
cannot be said that such international long distance calls were or both . (Emphasis supplied)
personal properties belonging to PLDT since the latter could not
have acquired ownership over such calls. PLDT merely encodes,
augments, enhances, decodes and transmits said calls using its The peculiar circumstances attending the situation compel us to
complex communications infrastructure and facilities. PLDT not rule further on the matter of probable cause. During the hearing
being the owner of said telephone calls, then it could not validly of the motions to quash the search warrants, the test calls
claim that such telephone calls were taken without its consent. conducted by witnesses for PLDT were shown to have connected
to the IGF of either Eastern or Capwire to complete the
international calls.
It is the use of these communications facilities without the
consent of PLDT that constitutes the crime of theft, which is the
unlawful taking of the telephone services and business. A trial judge’s finding of probable cause may be set aside and the
search warrant issued by him based on his finding may be
quashed if the person against whom the warrant is issued
Therefore, the business of providing telecommunication and the presents clear and convincing evidence that when the police
telephone service are personal property under Article 308 of the officers and witnesses testified, they committed a deliberate
Revised Penal Code, and the act of engaging in ISR is an act of falsehood or reckless disregard for the truth on matters that are
"subtraction" penalized under said article. However, the Amended essential or necessary to a showing of probable cause. 52 In that
Information describes the thing taken as, "international long case, the finding of probable cause is a nullity, because the trial
distance calls," and only later mentions "stealing the business judge was intentionally misled by the witnesses.53
from PLDT" as the manner by which the gain was derived by the
accused. In order to correct this inaccuracy of description, this
case must be remanded to the trial court and the prosecution On the other hand, innocent and negligent omissions or
directed to amend the Amended Information, to clearly state that misrepresentation of witnesses will not cause the quashal of a
the property subject of the theft are the services and business of search warrant.54 In this case, the testimonies of Rivera and Gali
respondent PLDT. Parenthetically, this amendment is not that the test calls they conducted did not pass through PLDT’s IGF
necessitated by a mistake in charging the proper offense, which are true. They neglected, however, to look into the possibility that
would have called for the dismissal of the information under Rule the test calls may have passed through other IGFs in the
110, Section 14 and Rule 119, Section 19 of the Revised Rules on Philippines, which was exactly what happened. Nevertheless, the
Criminal Procedure. To be sure, the crime is properly designated witnesses did not commit a deliberate falsehood. Even Planet
as one of theft. The purpose of the amendment is simply to Internet stated that the conclusion that the test calls bypassed all
ensure that the accused is fully and sufficiently apprised of the IGFs in the country was made "carelessly and haphazardly."55
nature and cause of the charge against him, and thus guaranteed
of his rights under the Constitution. (Emphasis supplied)
On this score, the quashal of the search warrants is not in order.
It must be noted that the trial judge did not quash the warrants in
In Laurel, we reviewed the existing laws and jurisprudence on the this case based on lack of probable cause. Instead, the issue
generally accepted concept of personal property in civil law as
22
before us is whether the CA erred in reversing the RTC, which b) Stolen or embezzled and other proceeds, or fruits of
ruled that the search warrants are general warrants. the offense; or

III. c) Used or intended to be used as the means of

committing an offense.
The requirement of particularity in the description of things to
be seized is fulfilled when the items described in the search SEC. 4. Requisites for issuing search warrant. — A search warrant
warrant bear a direct relation to the offense for which the shall not issue except upon probable cause in connection with one
warrant is sought. specific offense to be determined personally by the judge after
examination under oath or affirmation of the complainant and the
witnesses he may produce, and particularly describing the place
Petitioners claim that the subject search warrants were in the
to be searched and the things to be seized which may be
nature of general warrants because the descriptions therein of the
anywhere in the Philippines.
objects to be seized are so broad and all-encompassing as to give
the implementing officers wide discretion over which articles to
seize. In fact, the CA observed that the targets of the search Within the context of the above legal requirements for valid
warrants were not illegal per se, and that they were "innocuous search warrants, the Court has been mindful of the difficulty faced
goods." Thus, the police officers were given blanket authority to by law enforcement officers in describing the items to be
determine whether the objects were legal or not, as in fact even searched, especially when these items are technical in nature, and
pieces of computer equipment not involved in telecommunications when the extent of the illegal operation is largely unknown to
or Internet service were confiscated. them. Vallejo v. Court of Appeals61 ruled as follows:

On the other hand, PLDT claims that a search warrant already The things to be seized must be described with particularity.
fulfills the requirement of particularity of description when it is as Technical precision of description is not required. It is only
specific as the circumstances will ordinarily allow.56 Furthermore, necessary that there be reasonable particularity and certainty as
it cites Kho v. Makalintal,57 in which the Court allowed leeway in to the identity of the property to be searched for and seized, so
the description of things to be seized, taking into consideration that the warrant shall not be a mere roving commission. Indeed,
the effort and the time element involved in the prosecution of the law does not require that the things to be seized must be
criminal cases. described in precise and minute detail as to leave no room for
doubt on the part of the searching authorities. If this were the
rule, it would be virtually impossible for the applicants to obtain a
The Office of the Solicitor General (OSG), in its Comment 58 filed
warrant as they would not know exactly what kind of things to
with the CA, likewise prayed for the reversal of the quashal of the
look for. Any description of the place or thing to be searched that
search warrants in view of the OSG’s position that the scheme
will enable the officer making the search with reasonable certainty
was a case of electronic theft, and that the items sought to be
to locate such place or thing is sufficient. (Emphasis supplied)
seized could not be described with calibrated precision. According
to the OSG, assuming that the seized items could also be used for
other legitimate businesses, the fact remains that the items were Furthermore, the Court also had occasion to rule that the
used in the commission of an offense. particularity of the description of the place to be searched and the
things to be seized is required "wherever and whenever it is
feasible."62 A search warrant need not describe the items to be
A general warrant is defined as "(a) search or arrest warrant that
seized in precise and minute detail. 63 The warrant is valid when it
is not particular as to the person to be arrested or the property to
enables the police officers to readily identify the properties to be
be seized."59 It is one that allows the "seizure of one thing under a
seized and leaves them with no discretion regarding the articles to
warrant describing another" and gives the officer executing the
be seized.64
warrant the discretion over which items to take.60

In this case, considering that items that looked like "innocuous

Such discretion is abhorrent, as it makes the person, against
goods" were being used to pursue an illegal operation that
whom the warrant is issued, vulnerable to abuses.1âwphi1 Our
amounts to theft, law enforcement officers would be hard put to
Constitution guarantees our right against unreasonable searches
secure a search warrant if they were required to pinpoint items
and seizures, and safeguards have been put in place to ensure
with one hundred percent precision. In
that people and their properties are searched only for the most
compelling and lawful reasons.
People v. Veloso, we pronounced that "[t]he police should not be
hindered in the performance of their duties, which are difficult
Section 2, Article III of the 1987 Constitution provides:
enough of performance under the best of conditions, by superficial
adherence to technicality or far-fetched judicial interference." 65
Sec. 2. The right of the people to be secure in their persons,
houses, papers and effects against unreasonable searches and
A search warrant fulfills the requirement of particularity in the
seizures of whatever nature and for any purpose shall be
description of the things to be seized when the things described
inviolable, and no such search warrant or warrant of arrest shall
are limited to those that bear a direct relation to the offense for
issue except upon probable cause to be determined personally by
which the warrant is being issued.66
the judge after examination under oath or affirmation of the
complainant and the witnesses he may produce, and particularly
describing the place to be searched and the persons or things to To our mind, PLDT was able to establish the connection between
be seized.In furtherance of this constitutional provision, Sections the items to be searched as identified in the warrants and the
3 and 4, Rule 126 of the Rules of Court, amplify the rules crime of theft of its telephone services and business. Prior to the
regarding the following places and items to be searched under a application for the search warrants, Rivera conducted ocular
search warrant: inspection of the premises of petitioners a d was then able to
confirm that they had utilized various telecommunications
equipment consisting of computers, lines, cables, antennas,
SEC. 3. Personal property to be seized. — A search warrant may
modems, or routers, multiplexers, PABX or switching equipment,
be issued for the search and seizure of personal property:
a d support equipment such as software, diskettes, tapes,
manuals and other documentary records to support the illegal toll
a) Subject of the offense; bypass operations."67

23
In HPS Software and Communication Corp. v. PLDT, 68 we upheld a grassy portion of the lot beside the house and poked their guns to
s milady worded69 description of items to be seized by virtue of his driver and two helpers and dragged them inside his house.
the search warrants, because these items had been sufficiently They were made to lie face down on the floor and thereafter, the
identified physically and s own to bear a relation to the offenses robbers ransacked the house and took away jewelries and other
charged. WHEREFORE, the petitions are DENIED. The Court of personal properties including cash. After the intruders left the
Appeals decision dated 20 August 2003 and Resolution dated 27 house he reported the matter immediately to the police. He was
November 2003 in CA-G.R. CR No. 26190 are AFFIRMED. later told that some of the lost items were in Chinatown area as
tipped by the informer the police and an entrapment was made
with their participation. He and his wife posed as a buyer and
SO ORDERED.
were able to recognize items of the jewelry stolen displayed at the
stall being tended by Norma Dizon Pamintuan.
PEOPLE VS GULINAO
The trial court held that the prosecution was able to prove by
evidence that the recovered items were part of the loot and such
 There were 3 separate information filed in the RTC
recovered items belong to the spouses Encarnacion, the herein
against the accused Gulinao. The information filed were
private complainants. That the recovered items were found in the
illegal possession of firearm with murder, robbery, and
possession of the accused and she was not able to rebut the
carnapping. All of which were committed on the same
presumption though the evidence for the defense alleged that the
date March 4, 1987 where in he murdered one Samson
stall is owned by one Fredo. The CA affirmed the decision of the
Chua
trial court but set aside the penalty imposed.
 The robbery was committed when the accused killed and
stole the gold ring of the victim worth 85k. The
carnapping was committed by intimidating Dionisio, a
driver and took his motor vehicle without his consent. Issue: WON the accused knew or should have known that the
 The accused pleaded not guilty to the robbery and items recovered from her were the proceeds of the crime of
carnapping but refused to answer his charge on illegal robbery or theft.
possession of firearm with murder. He moved to quash
the information against him in the RTC but was however Held:
denied. The CA also denied his petition.
 The 3 cases filed against him were jointly tried. Fencing, as defined in Section 2 of P.D. No. 1612 (Anti-Fencing
However, the accused failed to communicate with his Law), is "the act of any person who, with intent to gain for himself
counsels properly hence they withdrew as counsels for or for another, shall buy, receive, possess, keep, acquire, conceal,
him sell or dispose of, or shall buy and sell, or in any manner deal in
 The RTC then rendered a decision that he was indeed any article, item, object or anything of value which he knows, or
guilty of all 3 cases. Hence this petition that the RTC should be known to him, to have been derived from the proceeds
gravely erred in their decision. of the crime of robbery or theft."
Facts Established by the Prosecution:
 March 3, 1987, at about 9 pm, Dr Chua together with The accessory in the crimes of robbery and theftcould be
the accused and other politicians were having a caucus prosecuted as such under the RPC or under P.D. No. 1612.
in the house of a certain Torre. After such gathering, However, in the latter case, he ceases to be a mere accessory but
they boarded Dr Chua’s car and they proceeded to the becomes a principal in the crime of fencing. The state may thus
disco house. choose to prosecute him either under the Revised Penal Code or
 Upon arrival, and upon getting in their seats, Gulinao P.D. No. 1612, although the preference for the latter would seem
who has in his possession an unlicensed firearm, did inevitable considering that fencing is a malum prohibitum, and
then and there shot Dr Chua and when he was about to P.D. No. 1612 creates a presumption of fencing 14 and prescribes
leave, he turned back and took the victim’s gold ring a higher penalty based on the value of the property. 15
embedded with diamonds. Thereafter, he carnapped
Caguioa and drove the car and he got into an accident. The elements of the crime of fencing are:
 Dr Chua died with the gunshot wounds on his head
 1. A crime of robbery or theft has been
ISSUE: committed;
1. W/ NTHE TRIAL COURT GRAVELY ERRED IN FINDING  2. The accused, who is not a principal or
THE ACCUSED-APPELLANT GUILTY OF ROBBERY UNDER accomplice in the commission of the crime of robbery or
ARTICLE 294, PARAGRAPH 5, OF THE REVISED PENAL theft, buys, receives, possesses, keeps, acquires,
CODE. – YES conceals, sells or disposes, or buys and sells, or in any
HELD: manner deals in any article, item, object or anything of
 In respect to his third assignment of error, Gulinao value, which has been derived from the proceeds of the
should have been convicted of the crime of theft under said crime;
Art. 308, Revised Penal Code, not robbery with the use  3. The accused knows or should have known
of violence against or intimidation of a person under par. that the said article, item, object or anything of value
5, Art. 294 Revised Penal Code. As the trial court itself has been derived from the proceeds of the crime of
noted, on the basis of Patino's testimony, the taking of robbery or theft; and
the ring of Dr. Chua was merely an afterthought. The  4. There is, on the part of the accused, intent
force employed in the killing of Dr. Chua has no bearing to gain for himself or for another.
on the taking of his ring. 
 In the instant case, there is no doubt that the first,
second, and fourth elements were duly established. A
Dizon-Pamintuan vs. People
robbery was committed on 12 February 1988 in the
Facts: house of the private complainants who afterwards
reported the incident to the authorities and submitted a
Teodoro Encarnacion, Undersecretary, DPWH testified that when list of the lost items and sketches of the jewelry that
he arrived at his residence, he immediately proceeded inside the were later displayed for sale at a stall tended to by the
house, leaving behind his driver and two housemaids outside to petitioner in Florentino Torres Street, Sta. Cruz, Manila.
pick-up his personal belongings from his case. It was at this point The public display of the articles for sale clearly
that five unidentified masked armed persons appeared from the manifested an intent to gain on the part of the
24
 petitioner. According to Lim, that on or about the last week of February
1991, in the City of Manila, Philippines, the said accused, did then
Since Section 5 of P.D. No. 1612 expressly provides that "[m]ere
and there wilfully, unlawfully and feloniously knowingly receive,
possession of any good, article, item, object, or anything of value
keep, acquire and possess several spare parts and items for
which has been the subject of robbery or thievery shall be prima
facie evidence of fencing," it follows that the petitioner is fishing boats all valued at P48,130.00 belonging to Rosita Lim,
presumed to have knowledge of the fact that the items found in which he knew or should have known to have been derived from
her possession were the proceeds of robbery or theft. The the proceeds of the crime of theft. Contrary to law.”
presumption is reasonable for no other natural or logical inference
can arise from the established fact of her possession of the Manuelito then presented her testimony stating that they
proceeds of the crime of robbery or theft. This presumption does delivered said stolen items to Ramon Tan, who paid for them in
not offend the presumption of innocence enshrined in the cash in the amount of P13,000.00. Further, he stated that the
fundamental law. stolen items from the warehouse were placed in a sack and he
talked to Mr. Tan first over the phone before he delivered the
The petitioner was unable to rebut the presumption under P.D.
spare parts. It was Mr. Tan himself who accepted the stolen items
No. 1612. She relied solely on the testimony of her brother which
in the morning at about 7:00 to 8:00 o’clock and paid P13,000.00
was insufficient to overcome the presumption, and, on the
contrary, even disclosed that the petitioner was engaged in the for them.
purchase and sale of jewelry and that she used to buy from a
certain Fredo.23 On rebuttal, Ramon Tan denied having talked to Manuelito
Mendez over the phone on the day of the delivery of the stolen
Fredo was not presented as a witness and it was not established items and could not have accepted the said items personally for
that he was a licensed dealer or supplier of jewelry. Section 6 of every time goods are delivered to his store, the same are being
P.D. No. 1612 provides that "all stores, establishments or entitles accepted by his staff. It is not possible for him to be at his office
dealing in the buy and sell of any good, article, item, object or at about 7:00 to 8:00 o’clock in the morning, because he usually
anything of value obtained from an unlicensed dealer or supplier reported to his office at 9:00 o’clock. In connection with this case,
thereof, shall before offering the same for sale to the public,
he executed a counteraffidavit
secure the necessary clearance or permit from the station
commander of the Integrated National Police in the town or city
Then the RTC rendered a judgment adverse to Tan and found him
where such store, establishment or entity is located." Under the
guilty of violating PD No. 1612.
Rules and Regulations 24 promulgated to carry out the provisions
of Section 6, an unlicensed dealer/supplier refers to any person,
Ramon Tan then filed an appeal to CA, however CA affirmed in
partnership, firm, corporation, association or any other entity or
toto the decision of RTC. The motion for reconsideration filed by
establishment not licensed by the government to engage in the
business of dealing in or supplying "used secondhand articles," Tan was likewise denied by CA. Hence this petition.
which refers to any good, article, item, object or anything of value
ISSUE:
obtained from an unlicensed dealer or supplier, regardless of
whether the same has actually or in fact been used.
Whether or not herein petitioner violated PD No. 1612 or the Anti-
Fencing Law.

HELD:
Tan vs. People
1. No, the Court held that herein petitioner did not violate
PD No. 1612. According to the Court, the prosecution
FACTS
must prove the guilt of the accused by establishing the
The case before the Court is an appeal via certiorari from a existence of all the elements of the crime charged. Short
of evidence establishing beyond reasonable doubt the
decision of the Court of Appeals, affirming that of the Regional
existence of essential elements of fencing, there can be
Trial Court of Manila, Branch 19, convicting petitioner of the crime
no conviction for such offense.
of fencing.
In this case, the guilt of the complainant and the
Complainant Rosita Lim is the proprietor of Bueno Metal
elements of the crime of fencing were not duly
Industries, engaged in the business of manufacturing propellers or
established. First, the complainant Rosita Lim never
spare parts for boats.
reported the theft or even loss to the police. She
Manuelito Mendez was one of the employees working for her. admitted that Manuelito confessed to the unlawful taking
but did not prosecute him. Theft is a public crime. It
Sometime in February 1991, Manuelito Mendez left the employ of
can be prosecuted de officio, or even without a
the company.
private complainant, but it cannot be without a
The complainant (Lim) noticed that some items amounting to, victim. As complainant Lim reported no loss, the first
more or less P48, 000 were missing. element of the crime of fencing is absent, that is, a
crime of robbery or theft has been committed.
Lim then informed Victor Sy, uncle of Manuelito and the one who
referred him to Lim, regarding the loss. Also, the extrajudicial confession of witness Mendez was
not given with the assistance of counsel, hence,
Subsequently, Manuelito was arrested in Visayas and admitted the inadmissible against the witness. Neither may such
he and his companion (Gaudencio Gayop) stole the items and sold extrajudicial confession be considered evidence against
it to Ramon Tan. Manuelito asked for Lim’s forgiveness and was accused.
thereafter forgiven.
There must be corroboration by evidence of corpus
Lim then did not file a case against Manuelito and his companion. delicti to sustain a finding of guilt. Corpus delicti
means the “body or substance of the crime, and, in its
Afterwards, Lim filed with the RTC of Manila Branch 19, an primary sense, refers to the fact that the crime has been
information against Ramon Tan charging him with violation of PD actually committed.”
No. 1612 (Anti-Fencing Law).
The “essential elements of theft are

25
 (1) the taking of personal property; and Mamerto Carbungco were espied carrying
(2) the property belongs to another; coconuts with their bare hands. As the four
(3) the taking away wasdone with intent of gain; ( persons noticed the presence of Catarining and
4) the taking away was done without the consent of the the latter's companions, they dropped the
owner; and coconuts they were carrying and fled leaving
behind about 50 pieces of coconuts valued at
P50.00 and two poles, one made of bamboo
(5) the taking away is accomplished without violence or and the other of wood. (Exhs. A & A-1)
intimidation against persons or force upon things (U.S. vs. De Catarining invited the barangay tanod to
Vera, 43 Phil. 1000).” witness the counting of the coconuts
abandoned by the four men. Upon the advice
of said tanod, Catarining reported the incident
to the barangay captain who accompanied him
Moreover, there was no showing at all that the accused have and his companions to the police station at
knowledge or should have known that the very stolen articles Uson, Masbate where Catarining filed his
were the ones sold to him. Knowledge refers to a mental state of complaint. (pp. 47-48, Rollo)
awareness about a fact. Since the court cannot penetrate the
mind of an accused and state with certainty what is contained
The only issue raised with earnestness by petitioners is that the
therein, it must determine such knowledge with care from the
crime committed, if at all is simple and not qualified theft as found
overt acts of that person. Without petitioner knowing that he
by respondent court.
acquired stolen articles, he can not be guilty of “fencing.”

Article 310 of the Revised Penal Code states that the crime of
theft shall "be punished by the penalties next higher by two
Hence, the Court reverses and sets aside the decision of CA and degrees than those respectively expressed in the next preceding
the petitioner is hereby acquitted. article ... if the property stolen ... consists of coconuts taken from
the premises of a plantation, ... ." Thus, the stealing of coconuts
when they are still in the tree or deposited on the ground within
EMPELIS VS IAC the premises is qualified theft. When the coconuts are stolen in
any other place, it is simple theft. Stated differently, if the
The then Municipal Circuit Court of Dimasalang-Palanan-Uson, coconuts were taken in front of a house along the highway outside
Masbate convicted herein petitioners of qualified theft of fifty the coconut plantation, it would be simple theft only.
coconuts valued at P50.00 and sentenced each of them to an
indeterminate penalty of from four (4) to eight (8) years and one In the case of People vs. Isnain, 85 Phil. 648, this Court held that
(1) day, to restore to the owner of the stolen coconuts, Guillermo "[i]n the matter of theft of coconuts, the purpose of the heavier
Catarining the sum of P50.00 and to pay the costs. penalty is to encourage and protect the development of the
coconut industry as one of the sources of our national economy.
From the foregoing judgment they went to the Intermediate Unlike rice and sugar cane farms where the range of vision is
Appellate Court claiming that the court a quo erred: (1) in unobstructed, coconut groves can not be efficiently watched
convicting all accused when there was no sufficient evidence to because of the nature of the growth of coconut trees; and without
prove that they did gather and steal the coconut fruits of the a special measure to protect this kind of property, of will be as it
coconut plantation of Guillermo Catarining at Tambangan, has been in the past the favorite resort of thieves."
Dapdap, Uson, Masbate, Philippines; (2) in giving too much
probative value to the evidence for the prosecution and in In the case at bar, petitioners were seen arriving away fifty
discrediting that for the defense; and (3) in not acquitting all the coconuts while they were still in the premises of the plantation.
accused of the crime charged on the ground of reasonable doubt. They would therefore come within the definition of qualified theft
(pp. 8-9, Rollo) because the property stolen consists of coconuts taken from the
premises of a plantation.
Respondent appellate court affirmed in toto the penalty imposed
upon petitioners by the trial court. Hence, instant petition which However, the crime committed is only frustrated qualified theft
seeks to reduce the penalty imposed upon petitioners by the trial because petitioners were not able to perform all the acts of
court, which was affirmed in toto by respondent Intermediate execution which should have produced the felon as a
Appellate Court. (p. 1, Rollo) consequence. They were not able to carry the coconuts away from
the plantation due to the timely arrival of the owner.
The facts as found by respondent Intermediate Appellate Court
are as follows: WHEREFORE, the judgment of conviction is hereby AFFIRMED but
modified in the sense that the crime committed is only frustrated
Prior to June 10, 1979, Guillermo Catarining qualified theft and petitioners Elpidio Empelis, Mamerto
owner of a coconut plantation in Sitio Carbungco, Salvador Carbungco and Emilio Carbungco are each
Tambangan, Dapdap, Uson, Masbate, was sentenced to suffer the indeterminate penalty of two (2) months
frequently losing coconuts in his plantation due and one (1) day of arresto mayor, as minimum, to two (2) years
to thievery. Thus, on the early morning of June and four (4) months and one (1) day, of prision correccional, as
10, 1979, while he stayed in his plantation to maximum, and to pay the costs
keep watch, he saw four (4) persons within the
premises of his plantation gathering and tying SO ORDERED.
some coconuts. He then went home, fetched
his neighbors Anastacio Andales and
Teodomero Garay and took along a flashlight. People v. Luisito Bustinera
Upon reaching the coconut plantation with his
companions, Catarining beamed his flashlight FACTS:
on the four persons who, turned out to be the
herein appellants. Elpidio Empelis and Emilio ESC Transport hired Luisito Bustinera as a taxi driver. It was
Carbungco were seen carrying coconuts on a agreed that appellant would drive the taxi from 6:00 a.m. to
piece of wood on their shoulders while Salvad 11:00 p.m., after which he would return it to ESC Transport's
26
garage and remit the boundary fee in the amount of P780.00 per equipment, trucks, farm implements, spare parts, and other
day. On December 25,1996, appellant admittedly reported for automotive products and machines manufactured by Leyland
work and drove the taxi, but he did not return it on the same day International, Land Rover Ltd. (LAND ROVER for brevity), Avelyn
as he was supposed to. The owner of ESC reported the taxi Barfourd, Mitsubishi, and Furokawa (p. 7, tsn, February 15, 1988;
stolen. On January 9, 1997, Bustinera's wife went to ESC p. 6, tsn, November 9, 1987).
Transport and revealed that the taxi had been abandoned. ESC Since 1980, Felimon R. Cuevas had been a dealer of AMPI for
was able to recovered. The trial court found him guilty beyond government sales. In 1981, he bought into the company and
reasonable doubt of qualified theft. became its majority stockholder and president (p. 5, tsn, February
15, 1988). Upon Cuevas' ascendancy in the corporation, Saddul
HELD: was made a director as well as Executive Vice-President and
General Manager. As such, he was in charge of the operations of
Bustinera was convicted of qualified theft under Article 310 of the the company and was "delegated" to make sales of some units
Revised Penal Code, as amended for the unlawful taking of a and spare parts (p. 7, tsn, November 9, 1989). As distributor not
motor vehicle. However, Article 310 has been modified, with only of British but also Japanese automotive products, AMPI
respect to certain vehicles, by Republic Act No. 6539, as carried an inventory of some P15 to P20 million worth of spare
amended, otherwise known as "AN ACT PREVENTING AND parts of the companies it represented in the Philippines (p. 37,
PENALIZING CARNAPPING. "When statutes are in pari materia or tsn, November 9, 1987).
when they relate to the same person or thing, or to the same In 1985, LAND ROVER supplied P1.5 million worth of spare parts
class of persons or things, or cover the same specific or particular to the Armed Forces of the Philippines (AFP) through AMPI, but
subject matter, or have the same purpose or object, the rule the merchandise were returned to AMPI because they were not
dictates that they should be construed together. The elements of the correct items needed by the AFP (p. 27, tsn, February 15,
the crime of theft as provided for in Article 308 of the Revised 1988). The parts were kept by AMPI pending disposal instructions
Penal Code are: (1) that there be taking of personal property; (2) from LAND ROVER.
that said property belongs to another; (3) that the taking be done
On March 4, 1985, Erwin Lyndsay, LAND ROVER's area manager
with intent to gain; (4) that the taking be done without the
for Southeast Asia, sent the following letter to Saddul, Executive
consent of the owner; and (5) that the taking be accomplished
Vice-President and General Manager of AMPI, regarding the spare
without the use of violence against or intimidation of persons or parts rejected by the AFP:
force upon things. Theft is qualified when any of the following
circumstances is present: (1) the theft is committed by a "Dear Joe:
domestic servant; (2) the theft is committed with grave abuse of
"Further to my letter dated 27 February 1985, we have
confidence; (3) the property stolen is either a motor vehicle, mail now given consideration to the matter of disposal of the
matter or large cattle; (4) the property stolen consists of coconuts Land Rover parts wrongly supplied to A.F.P. and
taken from the premises of a plantation; (5) the property stolen is currently held by Ampi on our behalf, pending disposal
fish taken from a fish pond or fishery; and (6) the property was instructions from us.
taken on the occasion of fire, earthquake, typhoon, volcanic
eruption, or any other calamity, vehicular accident or civil "As agreed in principle during our meeting, we now
authorize you to undertake the disposal of the parts at
disturbance. On the other hand, Section 2 of Republic Act
the best possible prices available from your local
No.6539, as amended defines "car napping" as "the taking, with
market.
intent to gain, of a motor vehicle belonging to another without the
latter's consent, or by means of violence against or intimidation of "We would expect you to detail to us all sales of part
persons, or by using force upon things." The elements of car number, quantity sold and price obtained.
napping are thus: (1) the taking of a motor vehicle which belongs
"We agree that a sum amounting to 20% of the sale
to another; (2) the taking is without the consent of the owner or
value be retained by Amalgamated Motors as a handling
by means of violence against or intimidation of persons or by charge and that the balance is placed into a separate
using force upon things; and (3) the taking is done with intent to client account which will be available to LRPE or any
gain. Car napping is essentially the robbery or theft of a other party authorized by LRPE.
motorized vehicle, the concept of unlawful taking in theft, robbery
and car napping being the same. From the foregoing, since "I trust that these arrangements meet with your
appellant is being accused of the unlawful taking of a Daewoo approval and will satisfactorily solve the problem of the
AFP parts disposal.
sedan, it is the anti-car napping law and not the provisions of
qualified theft which would apply "If you have any problems with the above arrangements
or need any further authorizations at this stage, please
SADDUL VS CA do not hesitate to contact me.
  "Yours sincerely,
Before the Court is the Second Motion for Reconsideration filed by "(SGD)
the petitioner, Jose A. Saddul, Jr., praying that we set aside our
resolution of April 16, 1990 denying his petition for review of the "ERWIN LYNDSAY
decision promulgated on September 1, 1989 by the Court of
Area Manager-
Appeals in CA-G.R. CR No. 06234, entitled: "The People of the
Philippines, Plaintiff-Appellee vs.  Jose A. Saddul, Jr., Accused- South East Asia"
Appellant" which affirmed on appeal the judgment of the Regional
Trial Court of Manila, finding him guilty of estafa under Article (Emphasis ours: Exh. I or F. pp. 126, 141 RTC Record.)
315, par. 1(b) of the Revised Penal Code. After deliberating on
Saddul sold some of the spare parts (worth P143,085.00) to
the motion for reconsideration and the respondents' comments,
Rover Motor Parts (a different entity from LAND ROVER) whose
the Court resolved to grant the motion and set aside its resolution
president was Jose P. Garcia. The sales were evidenced by AMPI
of April 16, 1990.
Sales Invoices (Exhs. A, A-1, to A-8) and summarized in the
In 1973, the petitioner became a vice-president and director of Statement of Accounts dated June 9, 1986 (Exh. B) sent by AMPI
Amalgamated Motors (Phils.) Inc. (AMPI for brevity) (p. 5, tsn, to Rover Motor Parts. Payments were made by the buyer to
February 15, 1988). AMPI was then a wholly-owned subsidiary of Saddul. AMPI's 20% handling commission on the sale amounted
British Leyland (p. 31, tsn, November 9, 1989). It was the sole to P28,617.
distributor in the Philippines of British and Japanese heavy
27
Pursuant to LAND ROVER's directive that sale value of these spare presumably the reason why in a letter of the same date, May 30,
parts be "placed into a separate client account which will be 1986, through counsel Atty. Benjamin G. Calima, AMPI demanded
available to LRPE or any other party authorized by LRPE" (Exh. 1 from Saddul an accounting of the spare parts supposedly worth
or F), Saddul did not deposit the proceeds of the sales in AMPI's P575,053.50 sold by him to Rover Motor Parts "during the time
account but held them in trust for LAND ROVER. Saddul testified when you were still connected with the company" (Exh. E).
thus:
On November 10, 1986, Lyndsay wrote a letter to Cuevas
"ATTY. ROBLES: requesting for a statement on AMPI's inventory of British Leyland
spare parts, indicating:
"Q Is there any reason why you have not remitted to
Amalgamated Motors Philippines this 20% handling "1. Opening stock by part number.
charge?
"2. Sales made by part number and price obtained.
"A The reason is this transaction covered a lot of spare
parts and the P143,085.00 was only a part of the entire "3. Net proceeds credited to client account.
shipment so that there is still an amount due to Land "4. Present stock holding by part number." (p. 127; Exh.
Rover Ltd. I was requested by Land Rover Ltd. to hold G, RTC Record.)
on to the 20% until a proper account of the other side
could be made and proceeds of items which I do not Cuevas replied by telex that some of those spare parts had been
know, only they would know, how much is owing sold by Saddul who did not turn over the proceeds to AMPI, and
Amalgamated Motors Philippines, Inc." (p. 10, tsn, that he (Cuevas) filed a criminal case against Saddul "to recover
February 15, 1988.) the money so I can remit immediately" (Exh. H).

"Atty. CALIMA: On March 26, 1987, Lyndsay sent a reply-telex requesting

information as to "which items have been sold and at what price
"Q So, in other words, the instructions were given to you and which items remain in stock" and sought "a reconciliation of
before you sold to Rover Motor Parts? this stock" (Exh. I).
"A Generally, the instruction was to sell it for Land Rover On June 3, 1987, based on Cuevas' complaint, an information for
and which I did, sir. Subsequently, when sales proceeds estafa in the amount of P143,085.00 (I.S. No. 86-20607) was
were received, I asked them what will I do with the filed against Saddul in the Regional Trial Court of Manila:
money and they said, keep the money until I can give
you the necessary authority to open account for Land "That in or about and during the period comprised between
Rover. February 12, 1985 and September 10, 1985, inclusive, in the City
of Manila, Philippines, the said accused did then and there wilfully,
"Q My question to you is when did you receive the unlawfully and feloniously defraud AMALGAMATED MOTORS
instruction from Land Rover? After the sale or before the (PHILS.), INC., a corporation duly organized and existing under
sale was effected to Rover Motor Parts? the laws of the Republic of the Philippines with business address
"A Instructions for what? at Leyland House, 21st corner Railroad Sts., Port Area, this City,
in the following manner, to wit: the said accused, being then the
"Q To withhold the proceeds and not to remit the Executive Vice-President and General Manager of said
proceeds? Amalgamated Motors (Phils.), Inc., having been authorized by
Land Rover Parts & Equipment Ltd., England, to undertake
"A The instruction to hold, it is after the sale, sir." (p. disposal of rejected spare parts and engines at the best possible
23-24, tsn, February 15, 1988.) prices available in the local market, which rejected spare parts
"ATTY. CALIMA: and engines were then held by Amalgamated Motors (Phils.), Inc.
in behalf of the Land Rover Parts & Equipment Ltd. pending
"Q And inspite (sic) of the fact that Amalgamated Motors disposal and instructions from the latter company, actually
Philippines, Inc. can retain 20% handling charge you disposed and offered the said parts and engines for sale to a
were still instructed not to remit the 20% to certain Jose P. Garcia and obtained from the latter the sum of
Amalgamated Motors? P143,085.00 as purchase price of the same, and the said accused,
once in possession of the said sum of P143,085.00, far from
x  x  x complying with his obligation to turn over the proceeds of the sale
"J. SADDUL JR.: to said Amalgamated Motors Phils., Inc., failed and refused, and
still fails and refuses to do so notwithstanding demands made
"A Yes, sir, I was told pending full accounting of the upon him, and instead, with intent to defraud, he wilfully,
entire volume of the transaction. As soon as the entire unlawfully and feloniously misappropriated, misapplied and
transaction is worked out through the accounting converted the same to his own personal use and benefit, to the
process then we will know whether Land Rover will owe damage and prejudice of said AMALGAMATED MOTORS (PHILS.)
Mr. Cuevas or Mr. Cuevas will owe Land Rover. INC. in the aforesaid total amount of P143,085.00, Philippine
currency." (Emphasis supplied; p. 1, RTC Record).: rd
"Q But again Mr. Witness, you will agree to this portion
referring to the handling charge, it is not qualified by On August 6, 1987, Lyndsay wrote Cuevas requesting that all
proper accounting? British Leyland parts in the possession of AMPI be delivered to
Saddul's Multipart Motors Philippines, Inc. "who is our new parts
"A No, it is not, sir. In the letter, it is not." (p. 28, tsn, distributor for the Philippines." He further advised Cuevas that "in
February 15, 1988.) view of the change in distributorship to Multipart Motors, we will
Saddul was "terminated" by AMPI in the early part of 1986 for not hold you (AMPI) liable" for the proceeds (P143,085.00) of the
cause or causes that Cuevas did not disclose, but, according to spare parts sold by Saddul to Rover Motor Parts. The letter reads
Edgar Guilatco, a prosecution witness, Saddul "left the company" as follows:
(pp. 6-7, tsn, January 6, 1988). He thereupon formed his own "6 August 1987
outfit which he named "Multipart Motors International, Inc." What
appears in the record is that on May 30, 1986, Lyndsay wrote a "Amalgamated Motors (Phils.) Inc.
letter to Saddul enclosing "a note which effectively authorizes you
to act as our distributor" (Exh. 5).: nad Railroad Street Corner 21st Street

This appointment, although not yet official, must have leaked to, Port Area
and deeply wounded AMPI's President Felimon Cuevas. It was Manila

28
 Philippines public respondent, including the original records which the Court
caused to be elevated for examination. We find merit in the
Attention Col. Felimon R. Cuevas petition for review.
Dear Sirs, One of the ways of committing the crime of estafa with
"We have been advised that Security Bank and Trust Co. unfaithfulness or abuse of confidence is:
have obtained a Writ of Attachment over your properties "(b) By misappropriating or converting to the prejudice
and assets. We further understand that the parts of another, money, goods, or any other personal
supplied in error to Philippine Armed Forces and property received by the offender in trust or on
returned to Amalgamated Motors for safe keeping have commission, or for administration, or under any other
been included under the Attachment. We therefore obligation involving the duty to make delivery of or to
request that you inform the bank and the Court that return the same, even though such obligation be totally
these parts do not form part of your properties and or partially guaranteed by a bond; or by denying having
assets and should in consequence, be released from the received such money, goods, or other property." (Art.
Attachment. 315, par. 1 subpar. b, Rev. Penal Code.).chanrobles
"We should also be pleased if you would transfer these virtual law library
parts to: The appropriation or conversion of money or property received, to
"Multipart Motors Philippines Inc. who is our new parts the prejudice of the owner thereof, is the essence of estafa
distributor for the Philippines. through misappropriation (Ramirez, 9 Phil. 67). The words
"convert" and "misappropriate" connote an act of using or
"We would take this opportunity to raise the matter of disposing of another's property as if it were one's own, or of
the parts and major units which were already disposed devoting it to a purpose or use different from that agreed upon.
of before the granting of the Writ of Attachment. To misappropriate to one's own use includes, not only conversion
to one's personal advantage, but also every attempt to dispose of
"We have been advised by Mr. Jose A. Saddul that he is the property of another without right. (Webber vs.  Court of
holding proceeds of sale, amounting to Pesos Appeals, 57 OG 2937; People vs.  Panes, 37 Phil. 118.)
143,084.00, of some of the subject parts in line with
instructions contained in our letter dated 4 March 1985. Conversion is an unauthorized assumption and exercise of the
We believe that you are aware of this arrangement. right of ownership over goods or personal chattels belonging to
Please note that in view of the change in distributorship another, resulting in the alteration of their condition or the
to Multipart Motors, we will not hold you liable for this exclusion of the owner's rights. It takes place when a person
amount, but will accept accounts from Mr. Saddul actually appropriates the property of another to his own benefit,
covering the parts he has sold. As agreed, we will use, and enjoyment (Trinidad vs.  Court of Appeals, 53 OG 731
provide Amalgamated Motors with a handling charge citing Bouvier's Law Dictionary).
amounting to 20% of the proceeds and sale of these
parts.: nad The elements of the crime of embezzlement or estafa with abuse
of confidence are:
"With regard to the balance of parts held by you, we
shall be grateful if you will provide to us an account (a) that personal property is received in trust, on
detailing sales made. Upon receipt we will settle your commission, for administration or under any other
handling charges at 20% of sales as agreed. circumstance involving the duty to make delivery of or
to return the same, even though the obligation is
"We look forward to hearing from you. guaranteed by a bond;
"Yours sincerely, (b) that there is conversion or diversion of such property
by the person who has so received it or a denial on his
(SGD) part that he received it;
ERWIN LYNDSAY (c) that such conversion, diversion or denial is to the
Regional Manager injury of another, and

Export Sales" (Italics supplied; Exh. 2, pp. 142-143, RTC (d) that there be demand for the return of the property,
Record) (p. 247, Vol. III, 1988 Ed., Revised Penal Code by R.C.
Aquino)
Despite the advice from Land Rover, AMPI prosecuted the criminal
case against Saddul. On August 29, 1988, the trial court rendered The first element of the crime does not exist in this case because
a decision finding him guilty of estafa with unfaithfulness or abuse Saddul did not receive the Leyland Automotive spare parts from
of confidence (Art. 315, subpar. 1-b, Rev. Penal Code). The Cuevas or AMPI in trust, on commission, for administration, or
dispositive part of the decision reads as follows: under a duty to make delivery of, or return the same. Saddul
received the Leyland spare parts from the AFP in trust for LAND
"WHEREFORE, the Court finds the accused Jose A. Saddul, Jr. ROVER which authorized him to sell them ("we now authorize you
guilty beyond reasonable doubt of the crime of estafa, defined to undertake the disposal of the parts at the best possible prices
and penalized under Article 315, par. 1(b) of the Revised Penal available from your local market" - Exh. 1 or F, p. 126, RTC
Code, involving the amount of P28,617.00 and in the absence of Record).
any modifying circumstance, hereby sentences him to suffer an
indeterminate penalty ranging from six (6) months and one (1) Since Saddul did not convert or divert the property (he sold them
day of  prision correccional, as minimum, to eight (8) years in accordance with the authority given to him by Land Rover) nor
of  prision mayor, as maximum, to indemnify the offended party, did he deny that he received them, the second element of the
Amalgamated Motors (Phils.), Inc., in the amount of P28,617.00 crime was also not present.
without subsidiary imprisonment in case of insolvency, and to pay Saddul's failure to deliver the proceeds of the sale of the spare
the costs." (p. 26, Rollo.) parts to AMPI or Cuevas did not constitute a conversion or
Saddul appealed to the Court of Appeals (CA-G.R. CR No. 06234.) diversion to the injury of the latter who, not being the owner of
On September 1, 1989, the Court of Appeals affirmed the trial the property, incurred no loss and suffered no injury on account
court's decision. Hence, this petition for review. of Saddul's retention of the said proceeds while awaiting Land
Rover's instructions regarding the special account where he
The Court has carefully considered the petition for review should deposit them. Saddul simply complied with the directive in
on Certiorari and its annexes, as well as the comments of the Land Rover's letter of March 4, 1985 that the proceeds be "placed

29
into a separate client account which will be available to LRPE or - Out of the said obligation resulted an overdue amount
any other party authorized by LRPE" (Exh. 1 or F). Implicit in this of P1,475,274.09. Despite repeated demands, PBM failed and
directive was an injunction not to deliver the proceeds to AMPI. refused to either turn over the proceeds of the sale of the goods
The third element of the crime charged is absent.:-cralaw or to return the same.
 
- ABC filed a criminal complaint against Ching for
The fourth and final element of demand for the return of the violation of PD 115. After preliminary investigation, the fiscal
property is also lacking. AMPI or Cuevas made no demand for the found a prima facie case for violation of PD 115 on four counts
return of the spare parts sold by Saddul because Cuevas knew and filed the corresponding information. Ching appealed the
that those spare parts were to be sold for the account of Land fiscal’s resolution alleging that the goods subject of the trust
Rover. receipt agreements were dolomites which were specifically used
  for patching purposes over the surface of furnaces and nozzle
bricks which are insulating materials in the lower portion of the
While it is true that under Lyndsay's letter of March 4, 1985 (Exh. ladle which do not form part of the steel product itself.
1 or F) AMPI was entitled to a handling commission of 20% of the
sale value of the spare parts (equivalent to P28,617.00) which - Justice Secretary Ordonez reversed the resolution
Saddul failed to deliver to AMPI, Saddul explained that he saying that PD 115 contemplates or covers only goods, which
subsequently received instructions from Land Rover to hold the have, for their ultimate destination, the sale thereof or if unsold,
20% commission until AMPI shall have given an accounting of the their surrender to the entruster, this whether the goods are in
remaining Leyland spare parts (worth P1.2 million) still held by
their original form or in their manufactured or processed state.
AMPI. (pp. 10, 23-28, tsn, February 15, 1988.)
Not all transactions covered by trust receipts may be considered
That testimony of Saddul was not controverted by the as trust receipt transactions defined and penalized under PD 115.
complainant. On the contrary, it was confirmed by Lyndsay's
letter dated August 6, 1987 to AMPI or Cuevas (Exh. 2) asking for - ABC filed a motion for reconsideration of the Ordonez’
an accounting of "balance of the parts held by you . . . upon resolution.
receipt (of which) ** we will settle your handling charges at 20%
of sales as agreed." Issue: WON the penal provision of PD 115 apply when the
goods covered by a Trust Receipt do not form part of the finished
By obeying the instructions of Land Rover to withhold payment of products which are ultimately sold but are instead utilized/used
AMPI's 20% handling charge (P28,617.00) Saddul did not become
up in the operation of the equipment and machineries of the
liable for embezzlement to AMPI for he did not receive that sum
entrustee-manufacturer.
from AMPI. It was part of the price he received from Rover Motor
Parts, the buyer of the spare parts.
Held: Yes
"Where the accused did not receive the money from the
complainant for safekeeping or on commission or for Ratio: - In trust receipts, there is an obligation to repay the
administration and in trust, he is not criminally liable for failure to entruster. The entrustee binds himself to sell or dispose of the
return the money." (Jose Barredo vs.  Court of Appeals, 54 OG entrusted goods with the obligation to turn over to the entruster
1037). the proceeds if sold, or return the goods if unsold or not otherwise
disposed of, in accordance with the terms and condition specified
AMPI's recourse, in order to recover its 20% handling charge, is to
in the trust receipt. A violation of this undertaking constitutes
file a civil action to collect that amount from its erstwhile
principal, Land Rover, not this criminal action for estafa against estafa under Sec 13 of PD 115.
Saddul.: nad
- The wording of Sec 13 covers failure to turn over the
WHEREFORE, the petitioner's motion for reconsideration of the proceeds of the sale of entrusted goods, or to return said goods,
resolution dated April 16, 1990 is granted. The decision dated unsold or disposed of in accordance with the terms of the trust
September 1, 1989, of the Court of Appeals in CA-G.R. No. 06234 receipts. The non payment of the amount covered by a trust
is hereby reversed and set aside. The petitioner is acquitted of the receipt is an act violative of the entrustee’s obligation to pay.
crime charged, with costs de oficio. There is no reason why the law should not apply to all
SO ORDERED. transactions covered by trust receipts, except those expressly
excluded.

- The Court takes judicial notice of customary banking

ALLIED BANKING VS ORDONEZ
and business practices where trust receipts are used for
Facts: - On January 21, 1981, Philippine Blooming Mills thru importation of heavy equipment, machineries, and supplies used
Alfredo Ching applied for the issuance of commercial letters of in manufacturing operations. A construction should be avoided
credit with Allied Banking Corporation’s Makati branch to finance when it affords an opportunity to defeat compliance with the
the purchase of 500 M/T Magtar Branch Dolomites and one Lot terms of the statute.
High Fired Refractory Sliding Nozzle Bricks which would be utilized
in the operation of machinery and equipment. - The penal provision of PD 115 encompasses any act
violative of an obligation covered by the trust receipt; it is not
- ABC issued an irrevocable letter of credit in favor of limited to transactions in goods which are to be sold, reshipped,
Nikko Industry Co Ltd by virtue of which the latter drew 4 drafts stored, or processed as a component of a product ultimately sold.
which were accepted by PBM and paid by the bank. To uphold the Justice Department’s ruling would contravene not
only the letter but the spirit of PD 115.
- To secure payment of the amount covered by the
drafts and in consideration of the transfer by ABC of the
possession of the goods to PBM, Ching executed four Trust
Receipt Agreements acknowledging ABC’s ownership of the goods CASE 1: Rosemarie M. Lee vs. Hon. Rodil (RTC Manila
and its obligation to turn over the proceeds of the sale of the judge) and People of the Philippines
G.R. No. 80544; 5 July 1989
goods, if sold, or to return the same, if unsold within the stated
period.
FACTS:

30
1. Lee was the representative of CS Lee Enterprises Inc which o De Castro penned the said case.
opened a letter of credit worth Php 154,711.97 with o If the trust receipt transaction is susceptible to two
Philippine Bank of Communications for the purchase of reasonable interpretations, one giving rise only to
merchandise. civil liability and the other also generating criminal
2. 1982: Culture Media received the necessary document and liability, the first should be adopted as more
then executed a trust receipt for the said merchandise: favorable to the offender.
Lee obligated herself to hold the merchandise in trust  Lee used the Cuevo and Sia case to support her stand.
to sell the same in cash for the account of the bank; To However, the violations in both cases occurred in the
account for the proceeds if sold; To return the merchandise 1960’s. PD115 was not applied because the questioned acts
to the bank in case of failure to sell the same; were committed before its effectivity/promulgation in 1973.
3. Despite repeated demands, she failed to comply with  Violations of trust receipt agreements occurring after
her obligation and instead appropriated the 29 Jan 1973 would thus make the accused criminally
merchandise for her own personal use. liable for estafa pursuant to PD115.
4. 1985: Lee was charged for estafa. She moved to quash  On the constitutionality of PD115: A convincing showing is
the information on the ff grounds: needed to overcome the presumption of the validity of a
o The violation of a trust agreement does not statute.
constitute estafa despite an express provision in  On the nature of a trust receipt agreement:
the Trust Receipts Law characterizing it as o An LC-TR arrangement involves a loan feature
estafa. represented by a letter of credit and a security
o PD 115 is violative of the right that no person feature which is the trust receipt. Each feature is
shall be imprisoned for non-payment of debt. separate and distinct.
5. RTC denied the motion to quash and upheld the o The person prejudiced by the
constitutionality of the law. misappropriation or conversion of goods need
6. MR denied. Hence, the present petition. not be the owner thereof. The authors simply
used the phrase “to the prejudice of another”
ISSUE: Does the violation of a trust receipt agreement constitute o The failure of a person to turn over the proceeds or
estafa? YES goods not sold covered by a trust receipt is a
public nuisance. The act is not inherently wrong
RATIO: but because of the harm it inflicts on the
community, it may be punished as malum
 PD 115, S3 expressly provides: The failure of an prohibitum.
entrustee to turn over the proceeds of the sale of the
goods, documents or instruments covered by a trust PEOPLE VS ONG
receipt to the extent of the amount owing to the
entruster or as appears in the trust receipt or to return said Facts:
goods, documents or instruments if they were not sold or
disposed of in accordance with the terms of the trust receipt Accused Dick Ong, one of the depositors of the Home Savings
shall constitute the crime of estafa… Bank and Trust Company (HSBTC) opened a savings account with
 On the case of People v. Cuevo (1981): HSBTC with an initial deposit of P22.14 in cash and P10,000.00 in
o It was the lower court that dismissed the information check.
and ruled that a violation gives rise to a civil action
only. Ong was allowed to withdraw from his savings account with the
o Out of the 11 members of the SC, a majority of 6 Bank the sum of P5,000.00, without his check undergoing the
justices +CJ were of the view that the violation usual and reglementary clearance. The withdrawal slip was signed
constitutes estafa, 2 voted otherwise, another 2 and approved by Lino Morfe, then the Branch Manager, and
inhibited themselves. The view of the dissenting accused Lucila Talabis, the Branch Cashier.
justices prevailed as a result of the want of 1 vote to
reverse the order of the lower court. (SC affirmed Subsequently, Ong deposited eleven checks in his savings account
the LC decision despite the majority view) with the Bank and against which he made withdrawals against its
o SC Majority view: The conversion by the trustee in a amount. Again, the withdrawal of the amount by Ong was made
trust receipt of the proceeds of the sale falls most before said checks were cleared and the Bank had collected their
literally and directly under the provision of estafa amounts and with the approval of Talabis.
thru misappropriation under Art 315 (1)(b) of the
RPC. The enactment of the Trust Receipts Law However, when the Bank presented the eleven checks issued,
confirmed the said criminal liability. deposited and against which Ong made withdrawals against its
o Dissent of J. Teehankee: amounts, to their respective drawee banks for payment, they
 A contract covered by a trust receipt is a were all dishonored for lack or insufficiency of funds. Because of
secured loan. The goods imported by the this, the Bank filed a criminal action for Estafa against Ong, and
dealer, through the bank’s financing, remain the Bank’s officer in charge Villaran and Talabis.
of their own property and risk.
 The view of putting them in jail for estafa for Talabis testified that the approval of the withdrawals of Ong
non-payment of the secured loan through a against his uncleared checks was in accordance with the
trust receipt should not be permitted in this instruction of their then bank manager and that it is a kind of
day and age. accommodation given to Ong and also a common practice of the
o Dissent of De Castro: Bank.
 The bank cannot be considered as the true
owner of the goods which has full power of RTC ruled Ong as guilty for the crime of estafa but acquitted
disposition over the same. Otherwise, it Villarin and Talabis as their guilt were not proven beyond
would disregard the loan feature (L/C). reasonable doubt. CA affirmed RTCs decisions.
 The trust receipt is supposed to give a
stronger security for the loan obtained by the Issue:
importer. 1. What is the nature of bank deposits?
 There would have been no need for PD 115 2. WON Ong is guilty of Estafa. No.
had there been no such doubt if the violation
constitutes estafa. Ruling:
 On the case of Sia v. People (1983):
31
 1. The Supreme Court held that bank deposits are in the Under the latter law, mere issuance of a check that is dishonored
nature of irregular deposits. gives rise to the presumption of knowledge on the part of the
Bank deposits are really loans because they earn drawer that he issued the same without sufficient funds and
interest. Whether fixed, savings, or current, all bank hence punishable which is not so under the Penal Code.
Adeposits are to be treated as loans and are to be
covered by the law on loans. Other differences between the two also include the following: (1)
a drawer of a dishonored check may be convicted under Batas
2. The elements of this kind of estafa are the following: (1) Pambansa Bilang 22 even if he had issued the same for a pre-
postdating or issuance of a check in payment of an existing obligation, while under Article 315 (2-d) of the Revised
obligation contracted at the time the check was issued; Penal Code such Page 2 of 2 circumstance negates criminal
(2) lack or insufficiency of funds to cover the check; and liability; (2) specific and different penalties are imposed in each of
(3) damage to the payee thereof. the two offenses; (3) estafa is essentially a crime against
property, while violation of Batas Pambansa Bilang 22 is
In this case, the fact was established that Ong either principally a crime against public interest as it does injury to the
issued or indorsed the subject checks. However, it must entire banking system; (4) violations of Article 315 of the Revised
be remembered that the reason for the conviction of an Penal Code are mala in se, while those of Batas Pambansa Bilang
accused of the crime of estafa is his guilty knowledge of 22 are mala prohibita.
the fact that he had no funds in the bank when he
negotiated the spurious check. While the filing of the two sets of Information under the provisions
In the present case, however, the prosecution failed to of Batas Pambansa Bilang 22 and under the provisions of the
prove that Ong had knowledge with respect to the Revised Penal Code, as amended, on estafa, may refer to identical
checks he indorsed. acts committed by petitioner, the prosecution thereof cannot be
Moreover, it has also been proven that it was the Bank limited to one offense, because a single criminal act may give rise
which granted him a drawn against uncollected deposit to a multiplicity of offenses and where there is variance or
(DAUD) privilege without need of any pretensions on his differences between the elements of an offense in one law and
part. The privilege this privilege was not only for the another law as in the case at bar there will be no double jeopardy
subject checks, but for other past transactions. If ever, because what the rule on double jeopardy prohibits refers to
he, indeed acted fr identity of elements in the two (2) offenses. Otherwise stated
audulently, he could not have done so without the active prosecution for the same act is not prohibited.
cooperation of the Banks employees. Since Talabis and
Villaran were declared innocent of the crimes charged What is forbidden is prosecution for the same offense. Hence, the
against them, the same should be said for the Ong. mere filing of the two (2) sets of information does not itself give
rise to double jeopardy . In the instant petition, certiorari is not
Thus, Ong cannot be held criminally liable against the the proper remedy. We have held in Acharon v. Purisima, et al.
Bank. He can only be held civilly liable as the Bank (13 SCRA 309) that "when a motion to quash a criminal case is
incurred damages. denied, remedy is not certiorari but to go to court without
prejudice to reiterating special defenses invoked in the motion,
NIERRAS VS DACUYCUY and if after trial on the merits, an adverse decision is rendered, to
appeal therefrom in the manner authorized by law," invoking the
FACTS: Before Us is a petition for certiorari with preliminary rule laid down in People v. Magdaluyo(1 SCRA 990).
injunction for the annulment of the resolution dated September
17, 1981 of the respondent Judge Auxencio C. Dacuycuy in nine If the petitioner cannot appeal at this state of the proceeding, it
(9) criminal cases, entitled "People of the Philippines v. Peter is because there is still a necessity for the trial on the merits
Nierras" for estafa under Article 315 (2-d) of the Revised Penal wherein the parties may present proofs in support of their
Code which denied petitioner's motion to quash. Said motion to contentions and not because the remedy of appeal is unavailing.
quash was filed by petitioner on the ground of double jeopardy as WHEREFORE, premises considered, the petition for certiorari is
these offenses were already included in Criminal Cases entitled hereby DISMISSED for lack of merit. SO ORDERED.
"People of the Philippines v. Peter Nierras," for violation of the
Lim Lao vs CA
Bouncing Checks Law or Batas Pambansa Blg. 22, pending before
the lower court. Facts:
It appears that petitioner, a customer of Pilipinas Shell Petroleum Petitioner Lina Lao and co-accused was charged for violation of
Corporation, purchased oil products from it. Simultaneous with B.P. 22. The facts reveal that Lina Lao was an employee of
the delivery of the products, he issued nine (9) checks in payment Premiere Financing Corporation, a corporation engaged in
thereof. Upon presentation to the Philippine National Bank at investment management. She was a Junior Officer of the
Naval, Leyte, said checks were dishonored for the reason that his corporation’s extension office in Binondo. In the regular coursel of
account was already closed. Thereafter, Pilipinas Shell Petroleum her duties as a junior officer, she was required to co-sign checks
Corporation repeatedly demanded of petitioner either to deposit withdrawn against the account of the corporation. The other co-
funds for his checks or pay for the oil products he had purchased signer was her head officer, Mr. Asprec, co-accused herein. Since
but he failed and refused to do either. part of her duties required her to be mostly in the field and out of
the office, it was normal procedure for her to sign the check in
Petitioner Contends Petitioner argues that he would be placed in blank that is without the names of the payee, the amounts and
double jeopardy as all the elements of estafa under Article 315 the dates of maturity. It was likewise Mr. Asprec, as head of office
(2-d) of the Revised Penal Code are also present in that crime who alone decided to whom the checks were to be ultimately
punishable under Batas Pambansa Bilang 22 namely (1) "the issued.
postdating or issuance of a check in payment of an obligation
contracted at the time the check was issued; (2) lack or Later, complainant Father Peligo, the Provincial Treasurer of the
insufficiency of funds to cover the check and (3) damage to the Society of Divine Word, was authorized to invest donations to the
payee thereof." ISSUE: Whether or not the filing of estafa after society and had been investing the society’s money with
being charged with violation of Batas Pambansa Blg. 22 for Premiere. He was issued Trader Royal Bank checks to guarantee
issuing the same bouncing checks will place the accuse in double payment of investments placed by him with Premiere which was
jeopardy. SC RULING. NO. What petitioner failed to mention in his later dishonored. Said checks were signed by petitioner and
argument is the fact that deceit and damage are essential Teodoro Asprec.
elements in Article 315 (2-d) Revised Penal Code, but are not
required in Batas Pambansa Bilang 22.
Issue:

32
Whether the petitioner could avail the defense of lack of actual guilty of the charge and each was sentenced to suffer one (1)
knowledge of the insufficiency of funds at the time of the issuance year imprisonment and to pay a fine of P10,000.00 and the costs.
of the checks and lack of personal notice of dishonor.
On appeal, the Court of Appeals affirmed the decision. It
subsequently denied petitioners motion for reconsideration.
“In the main, petitioner contends that the public respondent Hence, this petition. Petitioners contend:
committed a reversible error in concluding that lack of actual
knowledge of insufficiency of funds was not a defense in a
prosecution for violation of B.P. 22. Additionally, the petitioner A. Respondent Court gravely erred in not holding that the
argues that the notice of dishonor sent to the main office of the prosecution failed to prove petitioners guilt beyond reasonable
corporation, and not to petitioner herself who holds office in that doubt.
corporation's branch office does not constitute the notice
mandated in Section 2 of BP 22; thus, there can be no prima facie B. Respondent Court gravely erred in basing conviction on the
presumption that she had knowledge of the insufficiency of alleged weakness of the evidence of the defense rather than on
funds.” the strength of the evidence of the prosecution.

C. Respondent Court erred in not acquitting petitioners on

Held:
grounds of mistake of fact and lack of knowledge.
Yes, knowledge of insufficiency of fund or credit in the drawee
bank for the payment of a check upon its presentment is an Petitioners pray that the case against them be dismissed or, in the
essential element of the offense. Since petitioner Lina Lao signed alternative, that the decision of the trial court be modified by
the checks w/out knowledge of the insufficiency of funds, sentencing each to an increased fine but without imprisonment.
knowledge she was not exulted or obliged to posses under the
organizational structure of the corporation. She may not be held
liable, therefore, under B.P. 22. It is the Treasure Department By supplemental petition, dated January 29, 1998, petitioners
located at the main office in Cubao Q. C. and headed by Mr. submitted an affidavit of desistance executed by GARDS president
Ocampo, which alone had access to information as to account Dominador R. Santiago which states that the case arose from a
balances which alone were responsible for funding the issued mere accounting difference between petitioners and GARDS, that
checks. Petitioner Lina Lim Lao is ACQUITTED. the latter had not really suffered any damage as a result of the
issuance of the check in question and, that GARDS was no longer
VACA VS COURT OF APPEALS interested in prosecuting the case.

The facts are as follows: On May 28, 1998, petitioners filed another supplemental petition,
this time invoking the recent decision in Lao v. Court of
Petitioner Eduardo R. Vaca is the president and owner of Ervine Appeals,3 in which this Court reversed a conviction for violation of
International, Inc. (Ervine), which is engaged in the manufacture B.P. Blg. 22 upon a showing that the accused had no knowledge
and sale of refrigeration equipment, while his son-in-law, of the insufficiency of funds.
petitioner Fernando Nieto, is the firms purchasing manager. On
March 10, 1988, petitioners issued a check for P10,000.00 to the The Solicitor General opposes the appeal. He contends that the
General Agency for Reconnaissance, Detection, and Security, Inc. facts of Lao v. Court of Appeals are different from those of the
(GARDS) in partial payment of the security services rendered by case at bar and that the affidavit of desistance of Dominador
GARDS to Ervine. The check was drawn on the China Banking Santiago is of no moment, such affidavit having been made only
Corporation (CBC). When deposited in the Philippine Commercial after petitioners conviction.
International Bank (PCIBank) branch at Shaw Boulevard,
Mandaluyong, the check was dishonored for insufficiency of funds.
After due review of the decision in this case, we find that
petitioners conviction for violation of B.P. Blg. 22 is well founded.
On March 29, 1988, GARDS wrote Ervine a letter in which it
demanded payment in cash of the amount of the check within
seven days from notice. The letter was received by Ervine on the First. The elements of the offense penalized under B.P. Blg. 22
same day, but petitioners did not pay within the time given. are: (1) making, drawing, and issuance of any check to apply to
account or for value; (2) knowledge of the maker, drawer, or
issuer that at the time of issue he does not have sufficient funds
On April 13, 1988, petitioners issued a check for P19,860.16 to in or credit with the drawee bank for the payment of the check in
GARDS. The check was drawn on the Associated Bank. The full upon its presentment; and (3) subsequent dishonor of the
voucher accompanying it stated that the check was to replace the check by the drawee bank for insufficiency of funds or credit, or
dishonored check, the P9,860.16 balance being partial payment dishonor of the check for the same reason had not the drawer,
for Ervines outstanding account. The check and the voucher were without any valid cause, ordered the bank to stop payment. 4 The
received by a GARDS messenger, Nolan C. Pena, on April 15, makers knowledge is presumed from the dishonor of the check for
1988, but GARDS did not return the dishonored check. insufficiency of funds.5 Thus, 2 of B.P. Blg. 22 expressly provides:

On April 14, 1988, GARDS Operations Manager Jovito C. Cabusara SECTION 2. Evidence of knowledge of insufficient funds. - The
filed a criminal complaint against petitioners for violation of B.P. making, drawing and issuance of a check payment of which is
Blg. 22. After preliminary investigation, an information was filed refused by the drawee because of insufficient funds in or credit
in the Regional Trial Court of Quezon City (Branch 97). However, with such bank, when presented within ninety (90) days from the
the case was dismissed by the court on May 11, 1989, upon date of the check, shall be prima facie evidence of knowledge of
motion of the prosecution, on the ground that Ervine had already such insufficiency of funds or credit unless such maker or drawer
paid the amount of the check. pays the holder thereof the amount due thereon, or makes
arrangements for payment in full by the drawee of such check
On September 18, 1989, GARDS, through its Acting Operations within five (5) banking days after receiving notice that such check
Manager Eduardo B. Alindaya, filed another complaint for violation has not been paid by the drawee.
of B.P. Blg. 22 against petitioners. This resulted in the filing of an
information against petitioners in the Regional Trial Court of In this case, after being notified on March 29, 1988 of the
Quezon City (Branch 100). After trial, petitioners were found dishonor of their previous check, petitioners gave GARDS a check
33
for P19,860.16. They claim that this check had been intended by reason why they will refuse to pay a due and demandable debt of
them to replace the bad check they had previously issued to the only P10,000.00. It is precisely because of their founded belief
GARDS. Based on the testimony of a GARDS accountant, that the subject obligation has been paid that they refused to be
however, the Court of Appeals found that the check was actually intimidated by a criminal charge.
payment for two bills, one for the period of January 16 to January
31, 1988 in the amount of P9,930.08 and another one for the
The Court of Appeals dismissed these allegations as irrelevant to
period of March 16 to March 31, 1988 in the same amount. But
the question of petitioners guilt. We think so ourselves. However,
even if such check was intended to replace the bad one, its
we believe that they can be considered in determining the
issuance on April 13, 1988 15 days after petitioners had been
appropriate penalty to impose on petitioners.
notified on March 29, 1988 of the dishonor of their previous
check cannot negate the presumption that petitioners knew of the
insufficiency of funds to cover the amount of their previous check. B.P. Blg. 22, 1, par. 1 provides a penalty of imprisonment of not
Sec. 2 of B.P. Blg. 22 requires that such check be given within five less than thirty days but not more than one (1) year or by a fine
(5) days from the notice of dishonor to them. of not less than, but not more than double, the amount of the
check which fine shall in no case exceed two hundred thousand
pesos, or both such fine and imprisonment at the discretion of the
Petitioners contend that, in accordance with the ruling in Lao v.
Court. Petitioners are first-time offenders. They are Filipino
Court of Appeals,6 they should be acquitted because the
entrepreneurs who presumably contribute to the national
preparation of checks is the responsibility of the company
economy. Apparently, they brought this appeal, believing in all
accountant and all they do is sign the checks. They claim that
good faith, although mistakenly, that they had not committed a
they rely on the word of the accountant that there are sufficient
violation of B.P. Blg. 22. Otherwise, they could simply have
funds in the bank to pay for the checks.
accepted the judgment of the trial court and applied for probation
to evade a prison term. It would best serve the ends of criminal
In the Lao  case, the accused, as the Court found, had merely justice if in fixing the penalty within the range of discretion
been made by her employer, Premiere Investment House, to allowed by 1, par. 1, the same philosophy underlying the
countersign checks in blank. The accused was a mere employee Indeterminate Sentence Law is observed, namely, that of
who did not have anything to do with the issuance of checks for redeeming valuable human material and preventing unnecessary
the company. She did not know to whom the checks would be deprivation of personal liberty and economic usefulness with due
paid as the names of payees were written only later by the head regard to the protection of the social order. 10 In this case we
of operations. Moreover, no notice of dishonor was given to her as believe that a fine in an amount equal to double the amount of
required by B.P. Blg. 22, 2. It could thus rightly be concluded that the check involved is an appropriate penalty to impose on each of
the accused issued checks to apply to account not knowing that at the petitioners.
the time of issuance funds were insufficient to pay for the checks.
WHEREFORE, the decision of the Court of Appeals is AFFIRMED
Petitioners in this case cannot pretend ignorance of the with the modification that the sentence of imprisonment is deleted
insufficiency of funds. While it may be true that it was the and petitioners are each ordered to pay a fine of P20,000.00
companys accountant who actually prepared the rubber check, equivalent to double the amount of the check.
the fact remains that petitioners are the owners and officers of
the company. Sec. 1 of B.P. Blg. 22 provides that Where the
SO ORDERED.
check is drawn by a corporation, company, or entity, the person
or persons who actually signed the check in behalf of such drawer
shall be liable under this Act. People v. Ojeda (2004)

In fact, petitioner Nieto testified that after the check in question FACTS: Cora Abella Ojeda used to buy fabrics(telas) from
was dishonored, he instructed their company accountant to complainant Ruby Chua. For the three years approximately she
prepare a replacement check. 7 This belies petitioners claim that transacted business with Chua,appellant used postdated checks to
they had no hand in the preparation of checks 8 and shows that pay for the fabrics she bought. On November 5, 1983, appellant
petitioners were in control of the finances of the company. purchased from Chua various fabrics and textile materials
worthP228,306 for which she issued 22 postdated checks bearing
Second. The affidavit of desistance of the GARDS president different dates and amounts.The 22 checks were all dishonored.
deserves no more than passing mention. The claim that this case Demands were allegedly made to make good the dishonored
was simply the result of a misunderstanding between GARDS and
checks, to no avail. Estafa and BP 22 charges were thereafter filed
petitioners and that the former did not really suffer any damage
against Ojeda. The trial court convicted appellant of the crime of
from the dishonor of the check is flimsy. After prosecuting the
case below with tenacity, complainants going so far as to file estafa as defined and penalized under paragraph 2(d) of Article
another complaint after their first one had been dismissed, it is 315 ofthe Revised Penal Code (RPC), and sentenced her to
trifling with this Court for complainants to now assert that the reclusion perpetua. The trial court also convicted appellant of
filing of their case was simply a mistake. It is for reasons such as violation of BP 22 for issuing bouncingchecks. However, the court
this that affidavits of desistance, like retractions, are generally a quo held her guilty ofonly 14 counts out of the 22 bouncing
disfavored.9 The affidavit in this case, which was made after
checks issued.
petitioners conviction, is nothing but a last-minute attempt to
save them from punishment. Even if the payee suffered no
damage as a result of the issuance of the bouncing check, the HELD: Under paragraph 2(d) of Article 315 of the RPC, as
damage to the integrity of the banking system cannot be denied. amended by RA 4885, 20 the elements of estafa are: (1) a check
Damage to the payee is not an element of the crime punished in is postdated or issued in payment of an obligation contracted at
B.P. Blg. 22. the time it is issued; (2) lack or insufficiency of funds to cover the
check; (3) damage to the payee thereof. Deceit and damage are
Third. Petitioners pray that, in the alternative, the penalty be essential elements of the offense and must be established by
modified by deleting the sentence of imprisonment and, in lieu satisfactory proof to warrant conviction. Thus, the drawer of the
thereof, a fine in an increased amount be imposed on them. In dishonored check is given three days from receipt of the notice of
support of their plea, they allege that they do not have any record dishonor to cover the amount of the check. Otherwise a prima
of prior conviction; that Eduardo Vaca is of advanced age (late
facie presumption of deceit arises. The prosecution failed to prove
60s); and, that they come from good families. Petitioners claim
that with their family background and social standing there is no deceit in this case. The prima facie presumption of deceit was

34
successfully rebutted by appellant's evidence of good faith, a INCREASING THE PENALTY FOR CERTAIN FORMS OF
defense in estafa by postdating a check. Good faith may be SWINDLING OR ESTAFA
demonstrated, for instance, by a debtor's offer to arrange a
payment scheme with his creditor. In this case, the debtor not WHEREAS, there is an upsurge in the commission of swindling and
only made arrangements for payment; as complainant herself other forms of frauds in rural banks, cooperatives, "samahang
categorically stated, the debtor-appellant fully paid the entire nayon (s)", and farmers' associations or corporations/associations
amount of the dishonored checks. It must be noted that our operating on funds solicited from the general public;
Revised Penal Code was enacted to penalize unlawful acts
accompanied by evil intent denominated as crimes mala in se. The WHEREAS, such defraudation or misappropriation of funds
principal consideration is the existence of malicious intent. There contributed by stockholders or members of such rural banks,
is a concurrence of freedom, intelligence and intent which cooperatives, "samahang nayon(s)", or farmers' associations, or
of funds solicited by corporations/associations from the general
together make up the "criminal mind"behind the "criminal act."
public, erodes the confidence of the public in the banking and
Thus, to constitute a crime,the act must, generally and in most cooperative system, contravenes the public interest, and
cases, beaccompanied by a criminal intent. Actus non facitreum, constitutes economic sabotage that threatens the stability of the
nisi mens sit rea. No crime is committed if themind of the person nation;
performing the act complained of is innocent. As we held in
Tabuena vs. Sandiganbayan:XXXThe rule was reiterated in People WHEREAS, it is imperative that the resurgence of said crimes be
v. Pacana, although this case involved falsification of public checked, or at least minimized, by imposing capital punishment
documents and estafa:"Ordinarily, evil intent must unite with an on certain forms of swindling and other frauds involving rural
unlawful act for there to be a crime. Actus non facitreum, nisi banks, cooperatives, "samahang nayon(s)", farmers' associations
mens sit rea. There can be no crime when the criminal mind is or corporations/associations operating on funds solicited from the
general public;
wanting."American jurisprudence echoes the same principle. It
adheres to the view that criminal intent in embezzlement is not
based on technical mistakes as to the legal effect of a transaction NOW, THEREFORE, I, FERDINAND E. MARCOS, President of the
honestly entered into,and there can be no embezzlement if the Philippines, by virtue of the powers vested in me by the
Constitution, do hereby decree and order as follows:
mind of the person doing the act is innocent or if there is no
wrongful purpose. The accused may thus prove that he acted in
good faith and that he had no intention to convert the money or Section 1. Any person or persons who shall commit estafa or
other forms of swindling as defined in Article 315 and 316 of the
goods for his personal benefit. We are convinced that appellant
Revised Penal Code, as amended, shall be punished by life
was able to prove the absence of criminal intent in her imprisonment to death if the swindling (estafa) is committed by a
transactions with Chua. Had her intention been tainted with syndicate consisting of five or more persons formed with the
malice and deceit,appellant would not have exerted extraordinary intention of carrying out the unlawful or illegal act, transaction,
effort to pay the complainant, given her own business and enterprise or scheme, and the defraudation results in the
financial reverses misappropriation of money contributed by stockholders, or
members of rural banks, cooperative, "samahang nayon(s)", or
farmers association, or of funds solicited by
corporations/associations from the general public.

When not committed by a syndicate as above defined, the penalty

imposable shall be reclusion temporal to reclusion perpetua if the
amount of the fraud exceeds 100,000 pesos.

Republic Act No. 8484            

PD 1689
Section 1. Short title. – This Act shall be known as the "Access
Devices Regulation Act of 1998."
PRESIDENTIAL DECREE No. 1689 April 6, 1980

35
Section 2. Declaration of policy. – The State recognizes the (k) Produce – includes design, alter, authenticate,
recent advances in technology and the widespread use of access duplicate or assemble; and
devices in commercial transactions. Toward this end, the State
shall protect the rights and define the liabilities of parties in such
(l) Trafficking – means transferring, or otherwise
commercial transactions by regulating the issuance and use of
disposing of, to another, or obtaining control of, with
access devices.
intent to transfer or dispose of.

Section 3. Definition of terms. – For purposes of this Act, the

Section 4. Credit Card Application and Solicitation. – Any
terms:
application to open a credit card account for any person under an
open-end credit plan or a solicitation to open such an account,
(a) Access Device – means any card, plate, code, either by mail, telephone or other means, shall disclose in writing
account number, electronic serial number, personal or orally, as the case may be, the following information:
identification number, or other telecommunications
service, equipment, or instrumental identifier, or other
(a) Annual Percentage Rate
means of account access that can be used to obtain
money, good, services, or any other thing of value or to
initiate a transfer of funds (other than a transfer 1) Each annual percentage rate of interest on
originated solely by paper instrument); the amount of credit obtained by the credit
card holder under such credit plan. Where an
extension of credit is subject to a variable rate,
(b) Counterfeit Access Device – means any access
the fact that the rate is variable, and the
device that is counterfeit, fictitious, altered, or forged, or
annual percentage rate in effect at the time of
an identifiable component of an access device or
the mailing.
counterfeit access device;

2) Where more than one rate applies, the

(c) Unauthorized Access Device – means any access
range of balances to which each rate applies.
device that is stolen, lost, expired, revoked, canceled,
suspended, or obtained with intent to defraud;
(b) Annual and other Fees
(d) Access Device Fraudulently Applied for – means any
access device that was applied for or issued on account 1) Any annual fee, other periodic fee, or
of the use of falsified document, false information, membership fee imposed for the issuance or
fictitious identities and addresses, or any form of false availability of a credit card, including any
pretense or misrepresentation; account maintenance fee or any other charge
imposed based on activity or inactivity for the
account during the billing cycle.
(e) Consumer – means a natural person;

2) Any minimum finance charge imposed for

(f) Credit Card – means any card, plate, coupon book, or
each period during which any extension of
other credit device existing for the purpose of obtaining
credit which is subject to a finance charge is
money, goods, property, labor or services or any thing
outstanding.
of value on credit;

3) Any transaction charge imposed in

(g) Device Making or Altering Equipment – means any
connection with use of the card to purchase
equipment, mechanism or impression designed or
goods or services.
primarily used for making or altering or reencoding an
access device or a counterfeit access device;
4) Any fee, penalty or surcharge imposed for
the delay in payment of an account.
(h) Finance Charges – represent the amount to be paid
by the debtor incident to the extension of credit such as
interest or discounts, collection fees, credit investigation (c) Balance Calculation Method – the name or a detailed
fees, and other service charges; explanation of the balance calculation method used in
determining the balance upon which the finance charge
is computed.
(i) Open-end-credit plan – means a consumer credit
extended on an account pursuant to a plan under which:
(d) Cash Advance Fee – any fee imposed for an
extension of credit in the form of cash.
1) the creditor may permit the person to make
purchase or obtain loans, from time to time,
directly from the creditor or indirectly by use of (e) Over-the-Limit-Fee – any fee imposed in connection
credit card, or other service; with an extension of credit in excess of the amount of
credit authorized to be extended with respect to such
amount: Provided, however, That in case the application
2) the person has the privilege of paying the
or solicitation to open a credit card account for any
balance; or
person under an open-end consumer credit plan be
made through catalogs, magazines, or other
3) a finance charge may be computed by the publications, the following additional information shall be
creditor from time to time on an unpaid disclosed:
balance.(j) Penalty Charges – means such
amount, in addition to interest, imposed on the
1) A statement, in a conspicuous and
credit card holder for non-payment of an
prominent location on the application or
account within a prescribed period;
solicitation, that:

36
 i) the information is accurate as of (d) the method by which the consumer may terminate
the date the application or solicitation continued credit availability under the account:
was printed; Provided, That the disclosures required by this section
must be made prior to posting a fee described in Section
4 (b) (1) to the account, or with the periodic billing
ii) the information contained in the
statement first disclosing that the fee has been posted
application or solicitation is subject to
to the account subject to the condition that the
change after such date;
consumer is given thirty (30) day period to avoid
payment of the fee or to have the fee recredited to the
iii) the applicant should contact the account in any case where the consumer does not wish
creditor for information on any to continue the availability of the credit.
change in the information contained
in the application or solicitation since
Section 8. Failure to Disclose. – Credit card companies which
it was printed;
shall fail to disclose the information required under Sections 4, 5
and 7 of this Act, after due notice and hearing, shall be subject to
(2) The date the application or solicitation was suspension or cancellation of their authority to issue credit cards
printed; and by the Bangko Sentral ng Pilipinas, Securities and Exchange
Commission and such other government agencies.
(3) In a conspicuous and prominent location on
the application or solicitation, a toll free Section 9. Prohibited Acts. – The following acts shall constitute
telephone number or mailing address which access device fraud and are hereby declared to be unlawful:
the applicant may contact to obtain any change
in the information provided in the application
(a) producing, using, trafficking in one or more
or solicitation since it was printed.
counterfeit access devices;

Section 5. Computations. – In addition to the foregoing, a

(b) trafficking in one or more unauthorized access
credit card issuer must, to the extent practicable, provide a
devices or access devices fraudulently applied for;
detailed explanation and a clear illustration of the manner by
which all charges and fees are computed.
(c) using, with intent to defraud, an unauthorized access
device;
Section 6. Exceptions. – The disclosures required under Section
4 of this Act may be omitted in any telephone solicitation or
application if the credit card issuer: (d) using an access device fraudulently applied for;

(a) does not impose any fee in connection with (e) possessing one or more counterfeit access devices or
paragraph (b)(1), Section 4 of this Act; access devices fraudulently applied for;

(b) does not impose any fee in connection with (f) producing, trafficking in, having control or custody of,
telephone solicitation unless the consumer signifies or possessing device-making or altering equipment
acceptance by using the card; without being in the business or employment, which
lawfully deals with the manufacture, issuance, or
distribution of such equipment;
(c) discloses clearly the information described in Section
4 of this Act in writing within thirty (30) days after the
consumer requests the card, but in no event later than (g) inducing, enticing, permitting or in any manner
the date of delivery of the card; and allowing another, for consideration or otherwise to
produce, use, traffic in counterfeit access devices,
unauthorized access devices or access devices
(d) discloses clearly that the consumer is not obligated
fraudulently applied for;
to accept the card or account and the consumer will not
be obligated to pay any fees or charges disclosed unless
the consumer elects to accept the card or account by (h) multiple imprinting on more than one transaction
using the card. record, sales slip or similar document, thereby making it
appear that the device holder has entered into a
transaction other than those which said device holder
Section 7. Disclosure Prior to Renewal. – Except in telephone
had lawfully contracted for, or submitting, without being
solicitations a card issuer that imposes any fee described in
an affiliated merchant, an order to collect from the
Section 4 shall transmit to a consumer's credit card account a
issuer of the access device, such extra sales slip through
clear and conspicuous disclosure of:
an affiliated merchant who connives therewith, or, under
false pretenses of being an affiliated merchant, present
(a) the date by which, the month by which, or the billing for collection such sales slips, and similar documents;
period at the close of which, the account will expire if
not renewed;
(i) disclosing any information imprinted on the access
device, such as, but not limited to, the account number
(b) the information described in Section 4 which shall be or name or address of the device holder, without the
transmitted to a consumer at least thirty (30) days prior latter's authority or permission;
to the scheduled renewal date of the consumer's credit
card account;
(j) obtaining money or anything of value through the
use of an access device, with intent to defraud or with
(c) the information described in Section 4 (a) (1) which intent to gain and fleeing thereafter;
shall be transmitted to a consumer's credit card account;
and

37
 (k) having in one's possession, without authority from Section 12. Frustrated and attempted access device
the owner of the access device or the access device fraud. – Any person who performs all the acts of execution which
company, an access device, or any material, such as would produce any of the unlawful acts enumerated in Section 9
slips, carbon paper, or any other medium, on which the of this Act, but which nevertheless does not produce it by reason
access device is written, printed, embossed, or of causes independent of the will of said person, shall be punished
otherwise indicated; with two-thirds (2/3) of the fine and imprisonment provided for
the consummated offenses listed in said section. Any person who
commences the commission of any of the unlawful acts
(l) writing or causing to be written on sales slips,
enumerated in Section 9 of this Act directly by overt acts and
approval numbers from the issuer of the access device
does not perform all the acts of execution which would produce
of the fact of approval, where in fact no such approval
the said acts by reason of some cause or accident other than said
was given, or where, if given, what is written is
person's own spontaneous desistance, shall be punished with one-
deliberately different from the approval actually given;
half (1/2) of the fine and imprisonment provided for the
consummated offenses listed in the said section.
(m) making any alteration, without the access device
holder's authority, of any amount or other information
Section 13. Accessory to access device fraud. – Any person
written on the sales slip;
who, with intent to gain for himself or for another, buy, receives,
possesses, keeps, acquires, conceals, sells, or disposes of, shall
(n) effecting transaction, with one or more access buy and sell, or in any manner deal in any article, item, object or
devices issued to another person or persons, to receive anything of value which he knows or should be known to him, to
payment or any other thing of value; have been acquired through the use of counterfeit access device
or an unauthorized access device or an access device known to
him to have been fraudulently applied for, shall be considered as
(o) without the authorization of the issuer of the access an accessory to an access device fraud and shall be punished with
device, soliciting a person for the purpose of: one-half (1/2) of the fine and imprisonment provided for the
applicable consummated offenses listed in Section 9 of this Act.
1) offering an access device; or Said person shall be prosecuted under this Act or under the Anti-
Fencing Law of 1979 (Presidential Decree No. 1612) whichever
imposes the longer prison term as penalty for the consummated
2) selling information regarding or an offense.
application to obtain an access device; or

Section 14. Presumption and prima facie evidence of intent

(p) without the authorization of the credit card system to defraud. – The mere possession, control or custody of:
member or its agent, causing or arranging for another
person to present to the member or its agent, for
payment, one or more evidence or records of (a) an access device, without permission of the owner or
transactions made by credit card. without any lawful authority;

Section 10. Penalties. – Any person committing any of the acts (b) a counterfeit access device;
constituting access device fraud enumerated in the immediately
preceding section shall be punished with: (c) access device fraudulently applied for;

(a) a fine of Ten thousand pesos (P10,000.00) or twice (d) any device-making or altering equipment by any
the value obtained by the offense, whichever is greater person whose business or employment does not lawfully
and imprisonment for not less than six (6) years and not deal with the manufacture, issuance, or distribution of
more than ten (10) years, in the case of an offense access device;
under Section 9 (b)-(e), and (g)-(p) which does not
occur after a conviction for another offense under
Section 9; (e) an access device or medium on which an access
device is written, not in the ordinary course of the
possessor's trade or business; or
(b) a fine of Ten thousand pesos (P10,000.00) or twice
the value obtained by the offense, and imprisonment for
not less than ten (10) years and for not more than (f) a genuine access device, not in the name of the
twelve (12) years, in the case of an offense under possessor, or not in the ordinary course of the
Section 9 (a), and (f) of the foregoing section, which possessor's trade or business, shall be prima facie
does not occur after a conviction for another offense evidence that such device or equipment is intended to
under Section 9; and be used to defraud.

(c) a fine of Ten thousand pesos (P10,000.00) or twice A cardholder who abandons or surreptitiously leaves the place of
the value obtained by the offense, or imprisonment for employment, business or residence stated in his application or
not less than twelve (12) years and not more than credit card, without informing the credit card company of the
twenty (20) years, or both, in the case of any offense place where he could actually be found, if at the time of such
under Section 9, which occurs after a conviction for abandonment or surreptitious leaving, the outstanding and unpaid
another offense under said subsection, or an attempt to balance is past due for at least ninety (90) days and is more than
commit the same. Ten thousand pesos (P10,000.00), shall be prima facie presumed
to have used his credit card with intent to defraud.
Section 11. Conspiracy to commit access device fraud. – If
two (2) or more persons conspire to commit any of the offenses Section 15. Loss of access devices. – In case of loss of an
listed in Section 9 and one or more of such persons does any act access device, the holder thereof must notify the issuer of the
to effect the object of the conspiracy, each of the parties to such access device of the details and circumstances of such loss upon
conspiracy shall be punished as in the case of the doing of the knowledge of the loss. Full compliance with such procedure would
act, the accomplishment of which is the object of such conspiracy. absolve the access device holder of any financial liability from

38
fraudulent use of the access device from the time the loss or theft reason of poverty. In this regard, it is imperative that an effective
is reported to the issuer. mechanism be instituted to ensure that the rights and interest of
distressed overseas Filipinos, in general, and Filipino migrant
workers, in particular, documented or undocumented, are
Section 16. Reporting requirements. – All companies engaged
adequately protected and safeguarded.
in the business of issuing access devices, including banks,
financing companies and other financial institutions issuing access  (f) The right of Filipino migrant workers and all overseas Filipinos
devices, shall furnish annually, on or before the 31st of March of to participate in the democratic decision-making processes of the
the succeeding year, a report to the Credit Card Association of the State and to be represented in institutions relevant to overseas
Philippines regarding access device frauds committed against the employment is recognized and guaranteed.
holders of such entities in the preceding calendar year, for
consolidation and submission to the National Bureau of  (g) The State recognizes that the ultimate protection to all
Investigation. migrant workers is the possession of skills. Pursuant to this and
as soon as practicable, the government shall deploy and/or allow
the deployment only to skilled Filipino workers.
Notwithstanding this requirement, banks, financing companies
and other financial institutions, including their subsidiaries and  (h) Non-governmental organizations, duly recognized as
affiliates, issuing access devices shall continue to be regulated legitimate, are partners of the State in the protection of Filipino
and supervised by the Bangko Sentral ng Pilipinas while other migrant workers and in the promotion of their welfare, the State
companies issuing access devices shall continue to be regulated shall cooperate with them in a spirit of trust and mutual respect.
and supervised by the Securities and Exchange Commission.
 (I) Government fees and other administrative costs of
recruitment, introduction, placement and assistance to migrant
Section 17. Liability under the Revised Penal Code and workers shall be rendered free without prejudice to the provision
other laws. – Prosecution under this Act shall be without of Section 36 hereof.
prejudice to any liability for violation of any provision of the
Revised Penal Code or any other law.  Nonetheless, the deployment of Filipino overseas workers,
whether land-based or sea-based by local service contractors and
manning agencies employing them shall be encouraged.
REPUBLIC ACT NO. 8042 Appropriate incentives may be extended to them.
Migrant Workers and Overseas Filipinos Act of 1995
SEC. 3. DEFINITIONS. - For purposes of this Act:

An act to institute the policies of overseas employment and (a) "Migrant worker" refers to a person who is to be engaged, is
establish a higher standard of protection and promotion of the engaged or has been engaged in a renumerated activity in a state
welfare of migrant workers, their families and overseas Filipinos in of which he or she is not a legal resident to be used
distress, and for other purposes. interchangeably with overseas Filipino worker.

Be it enacted by the Senate and House of Representatives of the (b) "Gender-sensitivity" shall mean cognizance of the inequalities
Philippines in Congress assembled: and inequities prevalent in society between women and men and
a commitment to address issues with concern for the respective
SEC. 1. SHORT TITLE. - This act shall be known and cited as the interests of the sexes.
"Migrant Workers and Overseas Filipinos Act of 1995."
(c) "Overseas Filipinos" refers to dependents of migrant workers
SEC. 2. DECLARATION OF POLICIES-- and other Filipino nationals abroad who are in distress as
 (a) In the pursuit of an independent foreign policy and while mentioned in Sections 24 and 26 of this Act.
considering national sovereignty, territorial integrity, national I. DEPLOYMENT
interest and the right to self-determination paramount in its
relations with other states, the State shall, at all times, uphold the SEC. 4. Deployment of Migrant Workers - The State shall deploy
dignity of its citizens whether in country or overseas, in general, overseas Filipino workers only in countries where the rights of
and Filipino migrant workers, in particular. Filipino migrant workers are protected. The government
recognizes any of the following as guarantee on the part of the
(b) The State shall afford full protection to labor, local and receiving country for the protection and the rights of overseas
overseas, organized and unorganized, and promote full Filipino workers:
employment and equality of employment opportunities for all.
Towards this end, the State shall provide adequate and timely (a) It has existing labor and social laws protecting the rights of
social, economic and legal services to Filipino migrant workers. migrant workers;

(c) While recognizing the significant contribution of Filipino (b) It is a signatory to multilateral conventions, declaration or
migrant workers to the national economy through their foreign resolutions relating to the protection of migrant workers;
exchange remittances, the State does not promote overseas
(c) It has concluded a bilateral agreement or arrangement with
employment as a means to sustain economic growth and achieve
the government protecting the rights of overseas Filipino workers;
national development. The existence of the overseas employment
and
program rests solely on the assurance that the dignity and
fundamental human rights and freedoms of the Filipino citizens (d) It is taking positive, concrete measures to protect the rights of
shall not, at any time, be compromised or violated. The State, migrant workers.
therefore, shall continuously create local employment
opportunities and promote the equitable distribution of wealth and SEC. 5. TERMINATION OR BAN ON DEPLOYMENT -
the benefits of development. Notwithstanding the provisions of Section 4 hereof, the
government, in pursuit of the national interest or when public
 (d) The State affirms the fundamental equality before the law of welfare so requires, may, at any time, terminate or impose a ban
women and men and the significant role of women in nation- on the deployment of migrant workers.
building. Recognizing the contribution of overseas migrant women
workers and their particular vulnerabilities, the State shall apply II. ILLEGAL RECRUITMENT
gender sensitive criteria in the formulation and implementation of
Sec. 6. DEFINITIONS. - For purposes of this Act, illegal
policies and programs affecting migrant workers and the
recruitment shall mean any act of canvassing, enlisting,
composition of bodies tasked for the welfare of migrant workers.
contracting, transporting, utilizing, hiring, procuring workers and
 (e) Free access to the courts and quasi-judicial bodies and includes referring, contact services, promising or advertising for
adequate legal assistance shall not be denied to any persons by employment abroad, whether for profit or not, when undertaken

39
by a non-license or non-holder of authority contemplated under their business shall be liable.
Article 13(f) of Presidential Decree No. 442, as amended,
otherwise known as the Labor Code of the Philippines. Provided, SEC. 7. PENALTIES -
that such non-license or non-holder, who, in any manner, offers (a) Any person found guilty of illegal recruitment shall suffer the
or promises for a fee employment abroad to two or more persons penalty of imprisonment of not less than six (6) years and one (1)
shall be deemed so engaged. It shall likewise include the following day but not more than twelve (12) years and a fine not less than
acts, whether committed by any persons, whether a non-licensee, two hundred thousand pesos (P200,000.00) nor more than five
non-holder, licensee or holder of authority. hundred thousand pesos (P500,000.00).
(a) To charge or accept directly or indirectly any amount greater  (b) The penalty of life imprisonment and a fine of not less than
than the specified in the schedule of allowable fees prescribed by five hundred thousand pesos (P500,000.00) nor more than one
the Secretary of Labor and Employment, or to make a worker pay million pesos (P1,000,000.00) shall be imposed if illegal
any amount greater than that actually received by him as a loan recruitment constitutes economic sabotage as defined herein.
or advance;
 Provided, however, that the maximum penalty shall be imposed if
(b) To furnish or publish any false notice or information or the person illegally recruited is less than eighteen (18) years of
document in relation to recruitment or employment; age or committed by a non-licensee or non-holder of authority.
(c) To give any false notice, testimony, information or document SEC. 8. PROHIBITION ON OFFICIALS AND EMPLOYEES. - Ot shall
or commit any act of misrepresentation for the purpose of be unlawful for any official or employee of the Department of
securing a license or authority under the Labor Code; Labor and Employment, the Philippine Overseas Employment
(d) To induce or attempt to induce a worker already employed to Administration, or the Overseas Workers Welfare Administration,
quit his employment in order to offer him another unless the or the Department of Foreign Affairs, or other government
transfer is designed to liberate a worker from oppressive terms agencies involved in the implementation of this Act, or their
and conditions of employment; relatives within the fourth civil degree of consanguinity or affinity,
to engage, directly or indirectly, in the business of recruiting
(e) To influence or attempt to influence any persons or entity not migrant workers as defined in this Act. The penalties shall be
to employ any worker who has not applied for employment imposed upon them.
through his agency;
 SEC. 9. VENUE. - A criminal action arising from illegal
(f) To engage in the recruitment of placement of workers in jobs recruitment as defined herein shall be filed with the Regional Trial
harmful to public health or morality or to dignity of the Republic of Court of the province or city where the offense was committed or
the Philippines; where the offended party actually resides at the same time of the
commission of the offense: Provided, That the court where the
(g) To obstruct or attempt to obstruct inspection by the Secretary criminal action is first filed shall acquire jurisdiction to the
of Labor and Employment or by his duly authorized exclusion of other courts. Provided, however, That the aforestated
representative; provisions shall also apply to those criminal actions that have
(h) To fail to submit reports on the status of employment, already been filed in court at the time of the effectivity of this Act.
placement vacancies, remittances of foreign exchange earnings, SEC. 10. MONEY CLAIMS. - Botwithstanding any provision of law
separations from jobs, departures and such other matters or to the contrary, the Labor Arbiters of the National Labor Relations
information as may be required by the Secretary of Labor and Commission (NLRC) shall have the priginal and exclusive
Employment; jurisdiction to hear and decide, within ninety (90) calendar days
(i) To substitute or alter to the prejudice of the worker, after filing of the complaint, the claims arising out of an employer-
employment contracts approved and verified by the Department employee relationship or by virtue of any law or contract involving
of Labor and Employment from the time of actual signing thereof Filipino workers for overseas deployment including claims for
by the parties up to and including the period of the expiration of actual, moral, exemplary and other forms of damages.
the same without the approval of the Department of Labor and                 The liability of the principal/employer and the
Employment; recruitment/placement agency for any and all claims under this
(j) For an officer or agent of a recruitment or placement agency to section shall be joint and several. This provisions shall be
become an officer or member of the Board of any corporation incorporated in the contract for overseas employment and shall be
engaged in travel agency or to be engaged directly on indirectly in a condition precedent for its approval. The performance bond to
the management of a travel agency; be filed by the recruitment/placement agency, as provided by law,
shall be answerable for all money claims or damages that may be
(k) To withhold or deny travel documents from applicant workers awarded to the workers. If the recruitment/placement agency is a
before departure for monetary or financial considerations other juridical being, the corporate officers and directors and partners
than those authorized under the Labor Code and its implementing as the case may be, shall themselves be jointly and solidarily
rules and regulations; liable with the corporation or partnership for the aforesaid claims
and damages.
(l) Failure to actually deploy without valid reasons as determined
by the Department of Labor and Employment; and                 Such liabilities shall continue during the entire period
or duration of the employment contract and shall not be affected
(m) Failure to reimburse expenses incurred by the workers in by any substitution, amendment or modification made locally or in
connection with his documentation and processing for purposes of a foreign country of the said contract.
deployment, in cases where the deployment does not actually
take place without the worker's fault. Illegal recruitment when                 Any compromise/amicable settlement or voluntary
committed by a syndicate or in large scale shall be considered as agreement on money claims inclusive of damages under this
offense involving economic sabotage. section shall be paid within four (4) months from the approval of
the settlement by the appropriate authority.
Illegal recruitment is deemed committed by a syndicate carried
out by a group of three (3) or more persons conspiring or                 In case of termination of overseas employment without
confederating with one another. It is deemed committed in large just, valid or authorized cause as defined by law or contract, the
scale if committed against three (3) or more persons individually workers shall be entitled to the full reimbursement of his
or as a group. placement fee with interest of twelve percent (12%) per annum,
plus his salaries for the unexpired portion of his employment
The persons criminally liable for the above offenses are the contract or for three (3) months for every year of the unexpired
principals, accomplices and accessories. In case of juridical term, whichever is less.
persons, the officers having control, management or direction of

40
                Non-compliance with the mandatory periods for                 The Overseas Workers Welfare Administration
resolutions of cases provided under this section shall subject the (OWWA), in coordination ith appropriate international agencies,
responsible officials to any or all of the following penalties: shall undertake the repatriation of workers in cases of war,
epidemic, disasters or calamities, natural or man-made, and other
                (a) The salary of any such official who fails to render similar events without prejudice to reimbursement by the
his decision or resolutions within the prescribed period shall be, or responsible principal or agency. However, in cases where the
caused to be, withheld until the said official complies therewith; principal or recruitment agency cannot be identified, all costs
                (b) Suspension for not more than ninety (90) days; or attendant to repatriation shall be borne by the OWWA.

                (c) Dismissal from the service with disqualifications to                 For this purposes, there is hereby created and
hold any appointive public office for five (5) years. established an emergency repatriation fund under the
administration control and supervision of the OWWA, initially to
                Provided, however, that the penalties herein provided consist of one hundred million pesos (P100,000,000.00), inclusive
shall be without prejudice to any liability which any such official of outstanding balances.
may have incurred under other existing laws or rules and
regulations as a consequence of violating the provisions of this                 SEC. 16. MANDATORY REPATRIATION OF UNDERAGE
paragraph. MIGRANT WORKERS. - Upon discovery or being informed of the
presence of migrant workers whose actual ages fall below the
                SEC. 11. MANADATORY PERIODS FOR RESOLUTION OF minimum age requirement for overseas deployment, the
ILLEGAL RECRUITMENT CASES. - The preliminary investigations of responsible officers in the foreign service shall without delay
cases under this Act shall be terminated within a period of thirty repatriate said workers and advise the Department of Foreign
(30) calendar days from the date of their filing. Where the Affairs through the fastest means of communication availavle of
preliminary investigation is conducted by a prosecution officer and such discovery and other relevant information.
a prima facie case is established, the corresponding information
shall be filed in court within twenty-four (24) hours from the                 SEC. 17. ESTABLISHMENT OF RE-PLACEMENT AND
termination of the investigation. If the preliminary investigation is MONITORING CENTER. - A replacement and monitoring center is
conducted by a judge and a prima facie case is found to exist, hereby created in the Department of Labor and Employment for
prosecution officer within forty-eight (48) hours from the date of returning Filipino migrant workers which shall provide a
receipt of the records of the case. mechanism for their reintegration into the Philippine society,
serve as a promotion house for their local employment, and tap
                SEC. 12. PRESCRIPTIVE PERIODS. - Illegal recruitment their skills and potentials for national development.
cases under this Act shall prescribe in five (5) years: Provided,
however, That illegal recruitment cases involving economic                 The Department of Labor and Employment, the
sabotage as defined herein shall prescribe in twenty (20) years. Overseas Workers Welfare Administration, and the Philippine
Overseas Employment Administration shall, within ninety (90)
                SEC. 13. FREE LEGAL ASSISTANCE, PREFERENTIAL days from the effectivity of this Act, formulate a program that
ENTITLEMENT UNDER THE WITNESS PROTECTION PROGRAM. - A would motivate migrant workers to plan for productive options
mechanism for free legal assistance for victims of illegal such as entry into highly technical jobs or undertakings, livelihood
recruitment shall be established within the Department of Labor and entrepreneurial development, better wage employment, and
and Employment including its regional offices. Such mechanism investment of savings.
must include coordination and cooperation with the Department of
Justice, the Integrated Bar of the Philippines, and other non-                 For this purpose, the Technical Education and Skills
governmental organizations and volunteer groups. Development Authority (TESDA), the Technology Livelihood
Resource Center (TLRC), and other government agencies involved
                The provisions of Republic Act No. 6981 to the in training and livelihood development shall give priority to return
contrary, notwithstanding, any person who is a victim of illegal who had been employed as domestic helpers and entertainers.
recruitment shall be entitled to the Witness Protection Program
provided thereunder.                 SEC. 18. FUNCTIONS OF THE RE-PLACEMENT AND
MONITORING CENTER. - The center shall provide the following
III. SERVICES service:
                SEC. 14. TRAVEL ADVISORY/INFORMATION                 (a) Develop livelihood programs and projects for
DISSEMINATION. - To give utmost priority to the establishment of returning Filipino migrant workers in coordination with the private
programs and services to prevent illegal recruitment, fraud, and sector;
exploitation or abuse of Filipino migrant workers, all embassies
and consular offices, through the Philippine Overseas Employment                 (b) Coordinate with appropriate private and
Administration (POEA), shall issue travel advisories or disseminate government agencies the promotion, development, re-placement
information on labor and employment conditions, migration and the full utilization of their potentials;
realities and other facts; and adherence of particular countries to                 (c) Institute in cooperation with other government
international standards on human and workers' rights which will agencies concerned, a computer-based information system on
adequately prepare individuals into making informed and skilled Filipino migrant workers which shall be accessible to all
intelligent decisions about overseas employment. Such advisory local recruitment agencies and employers, both public and
or information shall be published in a newspaper of general private;
circulation at least three (3) times in every quarter.
                (d) Provide a periodic study and assessment of job
                SEC. 15. REPATRIATION OF WORKERS; EMERGENCY opportunities for returning Filipino migrant workers.
REPATRIATION FUND. - The repatriation of the worker and the
transport of his personal belongings shall be the primary                 SEC. 19. ESTABLISHMENT OF A MIGRANT WORKERS
responsibility of the agency which recruited or deployed the AND OTHER OVERSEAS FILIPINOS RESOURCE CENTER. - Within
worker overseas. All costs attendant to repatriation shall be borne the premises and under the administrative jurisdiction of the
by or charged to the agency concerned and/or its principal. Philippine Embassy in countries where there are large
Likewise, the repatriation of remains and transport of the personal concentrations of Filipino migrant workers, there shall be establish
belongings of a deceased worker and all costs attendant thereto a Migrant Workers and Other Overseas Filipinos Resource Center
shall be borne by the principal and/or local agency. However, in with the following services:
cases where the termination of employment is due solely to the
fault of the worker, the principal/employer or agency shall not in                 (a) Counseling and legal services;
any manner be responsible for the repatriation of the former                 (b) Welfare assistance including the procurement of
and/or his belongings. medical and hospitalization services;

41
                 (c) Information, advisory and programs to promote where receiving countries are signatories;
social integration such as post-arrival orientation, settlement and
community networking services for social integration;                  (h) A tracking system of past and present gender
disaggregated cases involving male and female migrant workers;
                 (d) Institute a scheme of registration of and
undocumented workers to bring them within the purview of this
Act. For this purpose, the Center is enjoined to compel existing                  (I) Listing of overseas posts which may render
undocumented workers to register with it within six (6) months assistance to overseas Filipinos, in general, and migrant workers,
from the effectivity of this Act, under pain of having his/her in particular.
passport cancelled;                  SEC. 21. MIGRANT WORKERS LOAN GUARANTEE
                 (e) Human resource development, such as training FUND. - In order to further prevent unscrupulous illegal recruiters
and skills upgrading; from taking advantage of workers seeking employment abroad,
the OWWA, in coordination with government financial institutions,
                 (f) Gender sensitive programs and activities to assist shall institute financing schemes that will expand the grant of pre-
particular needs of women migrant workers; departure loan and family assistance loan. For this purpose, a
Migrant Workers Loan Guarantee Fund is hereby created and the
                 (g) Orientation program for returning workers and revolving amount of one hundred million pesos
other migrants; and (P100,000,000.00) from the OWWA is set aside as a guarantee
                 (h) Monitoring of daily situations, circumstances and fund in favor of participating government financial institutions.
activities affecting migrant workers and other overseas Filipinos.                  SEC. 22. RIGHTS AND ENFORCEMENT MECHANISM
                 The establishment and operations of the Center shall UNDER INTERNATIONAL AND REGIONAL HUMAN RIGHTS
be a joint undertaking of the various government agencies. The SYSTEMS. - The Department of Foreign Affairs is mandated to
Center shall be open for twenty-four (24) hours daily, including undertake the necessary initiative such as promotions, acceptance
Saturdays, Sundays and holidays, and shall be staffed by Foreign or adherence of countries receiving Filipino workers to multilateral
Service personnel, service attaches or officers who represent convention, declaration or resolutions pertaining to the protection
other organizations from the host countries. In countries of migrant workers' rights. The Department of Foreign Affairs is
categorized as highly problematic by the Department of Foreign also mandated to make an assessment of rights and avenues of
Affairs and the Department of Labor and Employment and where redress under international and regional human rights systems
there is a concentration of Filipino migrant workers, the that are available to Filipino migrant workers who are victims of
government must provide a lawyer and a social worker for the abuse and violation and, as far as practicable and through the
Center. The Labor Attache shall coordinate the operation of the Legal Assistant for Migrant Workers Affairs created under this Act,
Center and shall keep the Chief of Mission informed and updated pursue the same on behalf of the victim if it is legally impossible
on all matters affecting it. to file individual complaints. If a complaints machinery is available
under international or regional systems, the Department of
                 The Center shall have a counterpart 24-hour Foreign Affairs shall fully apprise the Filipino migrant workers of
information and assistance center at the Department of Foreign the existence and effectiveness of such legal options.
Affairs to ensure a continuous network and coordinative
mechanism at the home office.  IV. GOVERNMENT AGENCIES

                 SEC. 20. ESTABLISHMENT OF A SHARED                  SEC. 23. ROLE OF GOVERNMENT AGENCIES. - The
GOVERNMENT INFORMATION SYSTEM FOR MIGRATION. - An following government agencies shall perform the following to
inter-agency committee composed of the Department of Foreign promote the welfare and protect the rights of migrant workers
Affairs and its attached agency, the Commission on Filipino and, as far as applicable, all overseas Filipinos:
Overseas, the Department of Labor and Employment, the                  (a) Department of Foreign Affairs. - The Department,
Philippine Overseas Employment Administration, The Overseas through its home office or foreign posts, shall take priority action
Workers Welfare Administration, The Department of Tourism, the its home office or foreign posts, shall take priority action or make
Department of Justice, the Bureau of Immigration, the National representation with the foreign authority concerned to protect the
Bureau of Investigation, and the National Statistics Office shall be rights of migrant workers and other overseas Filipinos and extend
established to implement a shared government information immediate assistance including the repatriation of distressed or
system for migration. The inter-agency committee shall initially beleaguered migrant workers and other overseas Filipinos;
make available to itself the information contained in existing data
bases/files. The second phase shall involve linkaging of computer                  (b) Department of Labor and Employment - The
facilities in order to allow free-flow data exchanges and sharing Department of Labor and Employment shall see to it that labor
among concerned agencies. and social welfare laws in the foreign countries are fairly applied
to migrant workers and whenever applicable, to other overseas
                 The inter-agency committee shall convene to identify Filipinos including the grant of legal assistance and the referral to
existing data bases which shall be declassified and shared among proper medical centers or hospitals:
member agencies. These shared data bases shall initially include,
but not limited to, the following information:                  (b.1) Philippine Overseas Employment Administration
- Subject to deregulation and phase out as provided under
                 (a) Masterlists of departing/arriving Filipinos; Sections 29 and 30 herein, the Administration shall regulate
                 (b) Inventory of pending legal cases involving Filipino private sector participation in the recruitment and overseas
migrant workers and other Filipino nationals, including those placement of workers by setting up a licensing and registration
serving prison terms; system. It shall also formulate and implement, in coordination
with appropriate entities concerned, when necessary employment
                 (c) Masterlists of departing/arriving Filipinos; of Filipino workers taking into consideration their welfare and the
domestic manpower requirements.
                 (d) Statistical profile on Filipino migrant
workers/overseas Filipinos/Tourists;                  (b.2) Overseas Workers Welfare Administration - The
Welfare Officer or in his absence, the coordinating officer shall
                 (e) Blacklisted foreigners/undesirable aliens; provide the Filipino migrant worker and his family all the
                 (f) Basic data on legal systems, immigration policies, assistance they may need in the enforcement of contractual
marriage laws and civil and criminal codes in receiving countries obligations by agencies or entities and/or by their principals. In
particularly those with the large numbers of Filipinos; the performance of this functions, he shall make representation
and may call on the agencies or entities concerned to conferences
                 (g) List of labor and other human rights instruments or conciliation meetings for the purpose of settling the complaints

42
or problems brought to his attention. against the Fund shall include the fees for the foreign lawyers to
be hired by the Legal Assistance for Migrant Workers Affairs to
 V. THE LEGAL ASSISTANT FOR MIGRANT WORKERS AFFAIRS represent migrant workers facing charges abroad, bail bonds to
                 SEC. 24. LEGAL ASSISTANT FOR MIGRANT WORKERS secure the temporary release of workers under detention, court
AFFAIRS. - There is hereby created the position of Legal Assistant fees and charges and other litigation expenses.
for Migrant Workers Affairs under the Department of Foreign  VI. COUNTRY - TEAM APPROACH
Affairs who shall be primarily responsible for the provision and
overall coordination of all legal assistance services to be provided                  SEC. 27. PRIORITY CONCERNS OF PHILIPPINE
to Filipino migrant workers as well as overseas Filipinos in FOREIGN SERVICE POSTS. - The country team approach, as
distress. He shall have the rank, salary and privileges equal to enunciated under Executive Order No. 74, series of 1993, shall be
that of an undersecretary of said Department. the mode under which Philippine embassies or their personnel will
operate in the protection of the Filipino migrant workers as well as
                 The said Legal Assistant for Migrant Workers Affairs in the promotion of their welfare. The protection of the Filipino
shall be appointed by the President and must be of proven migrant workers and the promotion of their welfare, in particular,
competence in the field of law with at least ten (10) years of and the protection of the dignity and fundamental rights and
experience as a legal practitioner and must not have been a freedoms of the Filipino citizen abroad, in general, shall be the
candidate to an elective office in the last local or national highest priority concerns of the Secretary of Foreign Affairs and
elections. the Philippine Foreign Service Posts.
                 Among the functions and responsibilities of the                  SEC. 28. COUNTRY-TEAM APPROACH. - Under the
aforesaid Legal Assistant are: country-team approach, all officers, representatives and
                 (a) To issue the guidelines, procedures and criteria for personnel of the Philippine government posted abroad regardless
the provisions of legal assistance services to Filipino migrant of their mother agencies shall, on a per country basis, act as one
workers; country-team with a mission under the leadership of the
ambassador. In this regard, the ambassador may recommend to
                 (b) To establish close linkages with the Department of the Secretary of the Department of Foreign Affairs the recall of
Labor and Employment, the POEA, the OWWA and other officers, representatives and personnel of the Philippine
government agencies concerned, as well as with non- government posted abroad for acts inimical to the national
governmental organizations assisting migrant workers, to ensure interest such as, but not limited to, failure to provide the
effective coordination and cooperation in the provision of legal necessary services to protect the rights of overseas Filipinos.
assistance to migrant workers;
                 Upon receipt of the recommendation of the
                 (c) To tap the assistance of reputable law firms and ambassador, the Secretary of the Department of Foreign Affairs
the Integrated Bar of the Philippines and other bar associations to shall, in the case of officers, representatives and personnel of
complement the government's efforts to provide legal assistance other departments, endorse such recommendation to the
to migrant workers; department secretary concerned for appropriate action. Pending
investigation by an appropriate body in the Philippines, the person
                 (d) To administer the legal assistance fund for migrant recommended for recall may be placed under preventive
workers established under Section 25 hereof and to authorize suspension by the ambassador.
disbursements there from in accordance with the purposes for
which the fund was set up; and                  In host countries where there are Philippine
consulates, such consulates shall also constitute part of the
                 (e) To keep and maintain the information system as country-team under the leadership of the ambassador.
provided in Section 20.
                 In the implementation of the country-team approach,
                 The legal Assistant for Migrant Workers Affairs shall visiting Philippine delegations shall be provided full support and
have authority to hire private lawyers, domestic or foreign, in information.
order to assist him in the effective discharge of the above
functions.  VII. DEREGULATION AND PHASE-OUT
                 SEC. 25. LEGAL  ASSISTANCE  FUND - There is                 SEC. 29. COMPREHENSIVE DEREGULATION PLAN ON
hereby established a legal assistance fund for migrant workers, RECRUITMENT ACTIVITIES. - Pursuant to a progressive policy of
herein after referred to as Legal Assistance fund, in the amount of deregulation whereby the migration of workers becomes strictly a
One hundred million pesos (P100,000,000.00) to be constituted matter between the worker and his foreign employer, the DOLE
from the following sources: within one (1) year from the effectivity of this Act, is hereby
mandated to formulate a five-year comprehensive deregulation
                 Fifty million pesos (P50,000,000.00) from the plan on recruitment activities taking into account labor market
Contingency Fund of the President; trends, economic conditions of the country and emergency
                Thirty million pesos (P30,000,000.00) from the circumstances which may affect the welfare of migrant workers.
Presidential Social Fund; and                 SEC. 30. GRADUAL PHASE-OUT OF REGULATORY
                Twenty million pesos (P20,000,000.00) from the FUNCTIONS. - Within a period of five (5) years from the effectivity
Welfare Fund for Overseas Workers established under Letter of of this Act, the DOLE shall phase out the regulatory functions of
Instruction No. 537, as amended by Presidential Decree Nos. the POEA pursuant to the objectives of deregulation.
1694 and 1809. VII. PROFESSIONAL AND OTHER HIGHLY-SKILLED FILIPINOS
                 Any balances of existing fund which have been set ABROAD
aside by the government specifically as legal assistance or                 SEC. 31. INCENTIVES TO PROFESSIONALS AND
defense fund to help migrant workers shall,  upon effectivity of OTHER HIGHLY-SKILLED FILIPINOS ABROAD. - Pursuant to the
this Act, to be turned over to, and form part of, the Fund created objective of encouraging professionals and other highly-skilled
under this Act. Filipinos abroad especially in the field of science and technology to
                 SEC. 26. USES OF THE LEGAL ASSISTANCE FUND. - participate in, and contribute to national development, the
The Legal Assistance Fund created under the preceeding  section government shall provide proper and adequate incentives and
shall be used exclusively to provide legal services to migrant programs so as to secure their services in priority development
workers and overseas Filipinos in distress in accordance witht the areas of the public and private sectors.
guidelines, criteria and procedures promulgated in accordance IX. MISCELLANEOUS PROVISIONS
with Section 24 (a) hereof.  The expenditures to be charged

43
                SEC. 32. POEA AND OWWA BOARD; ADDITIONAL                 SEC. 38. APPROPRIATION AND OTHER SOURCES OF
MEMBERSHIPS. - Notwithstanding any provision of law to the FUNDING. - The amount necessary to carry out the provisions of
contrary, the respective Boards of the POEA and the OWWA shall, this Act shall be provided for in the General Appropriations Act of
in addition to their present composition, have three (3) members the year following its enactment into law and thereafter.
each who shall come from the women, sea-based and land-based
sectors, respectively, to be appointed by the President in the                 SEC. 39. MIGRANT WORKERS DAY.  - The day of
same manner as the other members. signing by the President of this Act shall be designated as the
Migrant Workers Day and shall henceforth be commemorated as
                SEC. 33. REPORT TO CONGRESS. - In order to inform such annually.
the Philippine Congress on the implementation of the policy
enunciated in Section 4 hereof, the Department of Foreign Affairs RA 10022
and the Department of Labor and Employment shall submit to the
said body a semi-annual report of Philippine foreign posts located THE MIGRANT WORKERS AND OVERSEAS FILIPINOS ACT
in countries hosting Filipino migrant workers. The report shall not OF 1995
be limited to the following information:

                (a) Masterlist of Filipino migrant workers, and Section 1. Paragraphs (a), (e), (g) and (h) of Section 2 of
inventory of pending cases involving them and other Filipino Republic Act. No. 8042, as amended, otherwise known as the
nationals including those serving prison terms; "Migrant Workers and Overseas Filipinos Act of 1995," is hereby
amended to read as follows:
                (b) Working conditions of Filipino migrant workers;

                (c) Problems encountered by the migrant workers, "(a) In the pursuit of an independent foreign policy and while
specifically violations of their rights; considering national sovereignty, territorial integrity, national
                (d) Initiative/actions taken by the Philippine foreign interest and the right to self-determination paramount in its
posts to address the problems of Filipino migrant workers; relations with other states, the State shall, at all times, uphold the
dignity of its citizens whether in country or overseas, in general,
                (e) Changes in the laws and policies of host countries; and Filipino migrant workers, in particular, continuously monitor
and international conventions, adopt/be signatory to and ratify those
that guarantee protection to our migrant workers, and endeavor
                (f) Status of negotiations on bilateral labor agreements to enter into bilateral agreements with countries hosting overseas
between the Philippines and the host country. Filipino workers."
                Any officer of the government who fails to report as
stated in the preceeding section shall be subjected to "(e) Free access to the courts and quasi-judicial bodies and
administrative penalty. adequate legal assistance shall not be denied to any person by
reason of poverty. In this regard, it is imperative that an effective
                SEC. 34. REPRESENTATION IN CONGRESS. - Pursuant
mechanism be instituted to ensure that the rights and interest of
to Section 3(2), Article VI of the Constitution and in line with the
distressed overseas Filipinos, in general, and Filipino migrant
objective of empowering overseas Filipinos to participate in the
workers, in particular, whether regular/documented or
policy-making process to address Filipino migrant concerns, two
irregular/undocumented, are adequately protected and
(2) sectoral representatives for migrant workers in the House of
safeguarded."
Representatives shall be appointed by the President from the
ranks of migrant workers: Provided, that at least one (1) of the
two (2) sectoral representatives shall come from the women "(g) The State recognizes that the most effective tool for
migrant workers sector: Provided, further, that all nominees must empowerment is the possession of skills by migrant workers. The
have at least two (2) years experience as a migrant worker. government shall provide them free and accessible skills
development and enhancement programs. Pursuant to this and as
                SEC. 35. EXEMPTION FROM TRAVEL TAX AND AIRPORT
soon as practicable, the government shall deploy and/or allow the
FEE. - All laws to the country notwithstanding, the migrant worker
deployment only of skilled Filipino workers."
shall be exempt from the payment of travel tax and airport fee
upon proper showing of proof of entitlement by the POEA.
"(h) The State recognizes non-governmental organizations, trade
                SEC. 36. NON-INCREASE OF FEES; ABOLITION OF unions, workers associations, stakeholders and their similar
REPATRIATION BOND. - Upon approval of this Act, all fees being entities duly recognized as legitimate, are partners of the State in
charged by any government office on migrant workers shall the protection of Filipino migrant workers and in the promotion of
remain at their present levels and the repatriation bond shall be their welfare. The State shall cooperate with them in a spirit of
established. trust and mutual respect. The significant contribution of
                SEC. 37. THE CONGRESSIONAL MIGRANT WORKERS recruitment and manning agencies shall from part this
SCHOLARSHIP FUND. - There is hereby created a Congressional partnership."
Migrant Workers Scholarship Fund which shall benefit deserving
migrant workers and/or their immediate descendants below Section 2. Section 3, paragraph (a) of Republic Act No. 8042, as
twenty-one (21) years of age who intent to pursue courses or amended, is hereby amended to read as follows:
training primarily in the field of science and technology. The initial
seed fund of two hundred million pesos (P200,000,000.00) shall
be constituted from the following sources: "(a) "Overseas Filipino worker" refers to a person who is to be
engaged, is engaged or has been engaged in a remunerated
                (a) Fifty million pesos (P50,000,000.00) from the activity in a state of which he or she is not a citizen or on board a
unexpected Countrywide Development Fund for 1995 in equal vessel navigating the foreign seas other than a government ship
sharing by all members of Congress; and used for miliatry or non-commercial purposes or on an installation
located offshore or on the high seas; to be used interchangeably
                (b) The remaining one hundred fifty million pesos with migrant worker."
(P150,000,000.00) shall be funded from the proceeds of Lotto.

                The Congressional Migrant Workers Scholarship Fund Section 3. Section 4 of Republic Act No. 8042, as amended, is
as herein created shall be administered by the DOLE in hereby amended to rerad as follows:
coordination with the Department of Science and Technology
(DOST). To carry out the objectives of this section, the DOLE and
the DOST shall formulate the necessary rules and regulations.

44
"SEC. 4. Deployment of Migrant Workers. - The State shall allow may, at any time, terminate or impose a ban on the deployment
the deployment of overseas Filipino workers only in countries of migrant workers."
where the rights of Filipino migrant workers are protected. The
government recognizes any of the following as a guarantee on the
Section 5. Section 6 of Republic Act No. 8042, as amended, is
part of the receiving country for the protection of the rights of
hereby amended to read as follows:
overseas Filipino workers:

"SEC. 6. Definition. - For purposes of this Act, illegal recruitment

"(a) It has existing labor and social laws
shall mean any act of canvassing, enlisting, contracting,
protecting the rights of workers, including
transporting, utilizing, hiring, or procuring workers and includes
migrant workers;
referring, contract services, promising or advertising for
employment abroad, whether for profit or not, when undertaken
"(b) It is a signatory to and/or a ratifier of by non-licensee or non-holder of authority contemplated under
multilateral conventions, declarations or Article 13(f) of Presidential Decree No. 442, as amended,
resolutions relating to the protection of otherwise known as the Labor Code of the Philippines: Provided,
workers, including migrant workers; and That any such non-licensee or non-holder who, in any manner,
offers or promises for a fee employment abroad to two or more
persons shall be deemed so engaged. It shall likewise include the
"(c) It has concluded a bilateral agreement or
following acts, whether committed by any person, whether a non-
arrangement with the government on the
licensee, non-holder, licensee or holder of authority:
protection of the rights of overseas Filipino
Workers:
"(a) To charge or accept directly or indirectly
any amount greater than that specified in the
Provided, That the receiving country is taking positive, concrete
schedule of allowable fees prescribed by the
measures to protect the rights of migrant workers in furtherance
Secretary of Labor and Employment, or to
of any of the guarantees under subparagraphs (a), (b) and (c)
make a worker pay or acknowledge any
hereof.
amount greater than that actually received by
him as a loan or advance;
"In the absence of a clear showing that any of the aforementioned
guarantees exists in the country of destination of the migrant
"(b) To furnish or publish any false notice or
workers, no permit for deployment shall be issued by the
information or document in relation to
Philippine Overseas Employment Administration (POEA).
recruitment or employment;

"The members of the POEA Governing Board who actually voted in

"(c) To give any false notice, testimony,
favor of an order allowing the deployment of migrant workers
information or document or commit any act of
without any of the aforementioned guarantees shall suffer the
misrepresentation for the purpose of securing a
penalties of removal or dismissal from service with disqualification
license or authority under the Labor Code, or
to hold any appointive public office for five (5) years, Further, the
for the purpose of documenting hired workers
government official or employee responsible for the issuance of
with the POEA, which include the act of
the permit or for allowing the deployment of migrant workers in
reprocessing workers through a job order that
violation of this section and in direct contravention of an order by
pertains to nonexistent work, work different
the POEA Governing Board prohibiting deployment shall be meted
from the actual overseas work, or work with a
the same penalties in this section.
different employer whether registered or not
with the POEA;
"For this purpose, the Department of Foreign Affairs, through its
foreign posts, shall issue a certification to the POEA, specifying
"(d) To include or attempt to induce a worker
therein the pertinent provisions of the receiving country's
already employed to quit his employment in
labor/social law, or the convention/declaration/resolution, or the
order to offer him another unless the transfer
bilateral agreement/arrangement which protect the rights of
is designed to liberate a worker from
migrant workers.
oppressive terms and conditions of
employment;
"The State shall also allow the deployment of overseas Filipino
workers to vessels navigating the foreign seas or to installations
"(e) To influence or attempt to influence any
located offshore or on high seas whose owners/employers are
person or entity not to employ any worker who
compliant with international laws and standards that protect the
has not applied for employment through his
rights of migrant workers.
agency or who has formed, joined or
supported, or has contacted or is supported by
"The State shall likewise allow the deployment of overseas Filipino any union or workers' organization;
workers to companies and contractors with international
operations: Provided, That they are compliant with standards,
"(f) To engage in the recruitment or placement
conditions and requirements, as embodied in the employment
of workers in jobs harmful to public health or
contracts prescribed by the POEA and in accordance with
morality or to the dignity of the Republic of the
internationally-accepted standards."
Philippines;

Section 4. Section 5 of Republic Act No. 8042, as amended, is

"(h) To fail to submit reports on the status of
hereby amended to read as follows:
employment, placement vacancies, remittance
of foreign exchange earnings, separation from
"SEC. 5. Termination or Ban on Deployment. - Notwithstanding jobs, departures and such other matters or
the provisions of Section 4 hereof, in pursuit of the national information as may be required by the
interest or when public welfare so requires, the POEA Governing Secretary of Labor and Employment;
Board, after consultation with the Department of Foreign Affairs,

45
 "(i) To substitute or alter to the prejudice of "(4) Impose a compulsory and exclusive
the worker, employment contracts approved arrangement whereby an overseas Filipino
and verified by the Department of Labor and worker is required to undergo health
Employment from the time of actual signing examinations only from specifically designated
thereof by the parties up to and including the medical clinics, institutions, entities or persons,
period of the expiration of the same without except in the case of a seafarer whose medical
the approval of the Department of Labor and examination cost is shouldered by the
Employment; principal/shipowner;

"(j) For an officer or agent of a recruitment or "(5) Impose a compulsory and exclusive
placement agency to become an officer or arrangement whereby an overseas Filipino
member of the Board of any corporation worker is required to undergo training,
engaged in travel agency or to be engaged seminar, instruction or schooling of any kind
directly or indirectly in the management of only from specifically designated institutions,
travel agency; entities or persons, except fpr
recommendatory trainings mandated by
principals/shipowners where the latter shoulder
"(k) To withhold or deny travel documents
the cost of such trainings;
from applicant workers before departure for
monetary or financial considerations, or for any
other reasons, other than those authorized "(6) For a suspended recruitment/manning
under the Labor Code and its implementing agency to engage in any kind of recruitment
rules and regulations; activity including the processing of pending
workers' applications; and
"(l) Failure to actually deploy a contracted
worker without valid reason as determined by "(7) For a recruitment/manning agency or a
the Department of Labor and Employment; foreign principal/employer to pass on the
overseas Filipino worker or deduct from his or
her salary the payment of the cost of insurance
"(m) Failure to reimburse expenses incurred by
fees, premium or other insurance related
the worker in connection with his
charges, as provided under the compulsory
documentation and processing for purposes of
worker's insurance coverage.
deployment, in cases where the deployment
does not actually take place without the
worker's fault. Illegal recruitment when "The persons criminally liable for the above offenses are the
committed by a syndicate or in large scale shall principals, accomplices and accessories. In case of juridical
be considered an offense involving economic persons, the officers having ownership, control, management or
sabotage; and direction of their business who are responsible for the commission
of the offense and the responsible employees/agents thereof shall
be liable.
"(n) To allow a non-Filipino citizen to head or
manage a licensed recruitment/manning
agency. "In the filing of cases for illegal recruitment or any of the
prohibited acts under this section, the Secretary of Labor and
Employment, the POEA Administrator or their duly authorized
"Illegal recruitment is deemed committed by a syndicate if carried
representatives, or any aggrieved person may initiate the
out by a group of three (3) or more persons conspiring or
corresponding criminal action with the appropriate office. For this
confederating with one another. It is deemed committed in large
purpose, the affidavits and testimonies of operatives or personnel
scale if committed against three (3) or more persons individually
from the Department of Labor and Employment, POEA and other
or as a group.
law enforcement agencies who witnessed the acts constituting the
offense shall be sufficient to prosecute the accused.
"In addition to the acts enumerated above, it shall also be
unlawful for any person or entity to commit the following
"In the prosecution of offenses punishable under this section, the
prohibited acts:
public prosecutors of the Department of Justice shall collaborate
with the anti-illegal recruitment branch of the POEA and, in
"(1) Grant a loan to an overseas Filipino certain cases, allow the POEA lawyers to take the lead in the
worker with interest exceeding eight percent prosecution. The POEA lawyers who act as prosecutors in such
(8%) per annum, which will be used for cases shall be entitled to receive additional allowances as may be
payment of legal and allowable placement fees determined by the POEA Administrator.
and make the migrant worker issue, either
personally or through a guarantor or
"The filing of an offense punishable under this Act shall be without
accommodation party, postdated checks in
prejudice to the filing of cases punishable under other existing
relation to the said loan;
laws, rules or regulations."1avvphi1

"(2) Impose a compulsory and exclusive

Section 6. Section 7 of Republic Act No. 8042, as amended, is
arrangement whereby an overseas Filipino
hereby amended to read as follows:
worker is required to avail of a loan only from
specifically designated institutions, entities or
persons; "SEC. 7. Penalties. -

"(3) Refuse to condone or renegotiate a loan "(a) Any person found guilty of illegal
incurred by an overseas Filipino worker after recruitment shall suffer the penalty of
the latter's employment contract has been imprisonment of not less than twelve (12)
prematurely terminated through no fault of his years and one (1) day but not more than
or her own; twenty (20) years and a fine of not less than
46
 One million pesos (P1,000,000.00) nor more "In case of termination of overseas employment without just,
than Two million pesos (P2,000,000.00). valid or authorized cause as defined by law or contract, or any
unauthorized deductions from the migrant worker's salary, the
worker shall be entitled to the full reimbursement if his placement
"(b) The penalty of life imprisonment and a
fee and the deductions made with interest at twelve percent
fine of not less than Two million pesos
(12%) per annum, plus his salaries for the unexpired portion of
(P2,000,000.00) nor more than Five million
his employment contract or for three (3) months for every year of
pesos (P5,000,000.00) shall be imposed if
the unexpired term, whichever is less.
illegal recruitment constitutes economic
sabotage as defined therein.
"In case of a final and executory judgement against a foreign
employer/principal, it shall be automatically disqualified, without
"Provided, however, That the maximum
further proceedings, from participating in the Philippine Overseas
penalty shall be imposed if the person illegally
Employment Program and from recruiting and hiring Filipino
recruited is less than eighteen (18) years of
workers until and unless it fully satisfies the judgement award.
age or committed by a non-licensee or non-
holder of authority.
"Noncompliance with the mandatory periods for resolutions of
case provided under this section shall subject the responsible
"(c) Any person found guilty of any of the
officials to any or all of the following penalties:
prohibited acts shall suffer the penalty of
imprisonment of not less than six (6) years and
one (1) day but not more than twelve (12) "(a) The salary of any such official who fails to
years and a fine of not less than Five hundred render his decision or resolution within the
thousand pesos (P500,000.00) nor more than prescribed period shall be, or caused to be,
One million pesos (P1,000,000.00). withheld until the said official complies
therewith;
"If the offender is an alien, he or she shall, in addition to the
penalties herein prescribed, be deported without further "(b) Suspension for not more than ninety (90)
proceedings. days; or

"In every case, conviction shall cause and carry the automatic "(c) Dismissal from the service with
revocation of the license or registration of the disqualification to hold any appointive public
recruitment/manning agency, lending institutions, training school office for five (5) years.
or medical clinic."
"Provided, however, That the penalties herein provided shall be
Section 7. Section 10 of Republic Act No. 8042, as amended, is without prejudice to any liability which any such official may have
hereby amended to read as follows: incured under other existing laws or rules and regulations as a
consequence of violating the provisions of this paragraph."
"SEC. 10. Money Claims. - Notwithstanding any provision of law to
the contrary, the Labor Arbiters of the National Labor Relations Section 8. The first paragraph of Section 13 of Republic Act No.
Commission (NLRC) shall have the original and exclusive 8042, as amended is hereby amended to read as follows:
jurisdiction to hear and decide, within ninety (90) calendar days
after the filing of the complaint, the claims arising out of an
"SEC. 13. Free Legal Assistance; Preferential Entitlement Under
employer-employee relationship or by virtue of any law or
the Witness Protection Program. - A mechanism for free legal
contract involving Filipino workers for overseas deployment
assistance for victims of illegal recruitment shall be established in
including claims for actual, moral, exemplary and other forms of
the anti-illegal recruitment branch of the POEA including its
damage. Consistent with this mandate, the NLRC shall endeavor
regional offices. Such mechanism shall include coordination and
to update and keep abreast with the developments in the global
cooperation with the Department of Justice, the Integrated Bar of
services industry.
the Philippines, and other non-governmental organizations and
volunteer groups."
"The liability of the principal/employer and the
recruitment/placement agency for any and all claims under this
Section 9. Section 16 of Republic Act No. 8042, as amended, is
section shall be joint and several. This provision shall be
hereby amended to read as follows:
incorporated in the contract for overseas employment and shall be
a condition precedent for its approval. The performance bond to
de filed by the recruitment/placement agency, as provided by law, "SEC. 16. Mandatory Repatriation of Underage Migrant Workers. -
shall be answerable for all money claims or damages that may be Upon discovery or being informed of the presence of migrant
awarded to the workers. If the recruitment/placement agency is a workers whose ages fall below the minimum age requirement for
juridical being, the corporate officers and directors and partners overseas deployment, the responsible officers in the foreign
as the case may be, shall themselves be jointly and solidarily service shall without delay repatriate said workers and advise the
liable with the corporation or partnership for the aforesaid claims Department of Foreign Affairs through the fastest means of
and damages. communication available of such discovery and other relevant
information. The license of a recruitment/manning agency which
recruited or deployed an underage migrant worker shall be
"Such liabilities shall continue during the entire period or duration
automatically revoked and shall be imposed a fine of not less than
of the employment contract and shall not be affected by any
Five hundred thousand pesos (Php 500,000.00) but not more than
substitution, amendment or modification made locally or in a
One million pesos (Php 1,000,000.00). All fees pertinent to the
foreign country of the said contract.
processing of papers or documents in the recruitment or
deployment shall be refunded in full by the responsible
"Any compromise/amicable settlement or voluntary agreement on recruitment/manning agency, without need of notice, to the
money claims inclusive of damages under this section shall be underage migrant worker or to his parents or guardian. The
paid within thirty (30) days from approval of the settlement by refund shall be independent of and in addition to the
the appropriate authority. indemnification for the damages sustained by the underage
migrant worker. The refund shall be paid within thirty (30) days
47
from the date of the mandatory repatriation as provided for in this computer-based service capabilities of the
Act." NRCO;

Section 10. Section 17 of Republic Act No. 8042, as amended, is "(g) Develop capacity-building programs for
hereby amended to read as follows: returning overseas Filipino workers and their
families, implementers, service providers, and
stakeholders; and
"SEC. 17. Establishment of National Reintegration Center for
Overseas Filipino Workers. -A national reintegration center for
overseas Filipino workers (NRCO) is hereby created in the "(h) Conduct research for policy
Department of Labor and Employment for returning Filipino recommendations and program development."
migrant workers which shall provide a mechanism for their
reintegration into the Philippine society, serve as a promotion
Section 12. The second paragraph of Section 19 of Republic Act
house for their local employment, and tap their skills and
No. 8042, as amended, is hereby amended to read as follows:
potentials for national development.

"The establishment and operations of the Center shall be a joint

"The Department of Labor and Employment, the Overseas
undertaking of the various government agencies. The Center shall
Workers Welfare Administration (OWWA), and the Philippine
be open for twenty-four (24) hours daily including Saturdays,
Overseas Employment Administration (POEA) shall, within ninety
Sundays and holidays, and shall be staffed by Foreign Service
(90) days from the effectivity of this Act, formulate a program
personnel, service attaches or officers who represent other
that would motivate migrant workers to plan for productive
Philippine government agencies abroad and, if available,
options such as entry into highly technical jobs or undertakings,
individual volunteers and bona fide non-government organizations
livelihood and entrepreneurial development, better wage
from the host countries. In countries categorized as highly
employment, and investment of savings.
problematic by the Department of Foreign Affairs and the
Department of Labor and Employment and where there is a
"For this purpose, the Technical Education and Skills Development concentration of Filipino migrant workers, the government must
Authority (TESDA), the Technology Livelihood Resource Center provide a Sharia or human rights lawyer, a psychologist and a
(TLRC), and other government agencies involved in training and social worker for the Center. In addition to these personnel, the
livelihood development shall give priority to returnees who had government must also hire within the receiving country, in such
been employed as domestic helpers and entertainers." number as may be needed by the post, public relation officers or
case officers who are conversant, orally and in writing, with the
local language, laws, customs and practices. The Labor Attache
Section 11. Section 18 of Republic Act No. 8042, as amended is
shall coordinate the operation of the Center and shall keep the
hereby amended to read as follows:
Chief of Mission informed and updated on all matters affecting it."

"SEC. 18. Functions of the National Reintegration Center for

Section 13. Section 20 of Republic Act No. 8042, as amended, is
Overseas Filipino Workers. -The Center shall provide the following
hereby amended to read as follows:
services:

"SEC. 20. Establishment of a Shared Government Information

"(a) Develop and support programs and
System for Migration. - An interagency committee composed of
projects for livelihood, entrepreneurship,
the Department of Foreign Affairs and its attached agency, the
savings, investments and financial literacy for
Commission on Filipinos Overseas, the Department of Labor and
returning Filipino migrant workers and their
Employment and its attached concerned agencies, the
families in coordination with relevant
Department of Tourism, the Department of Justice the Bureau of
stakeholders, service providers and
Immigration, the National Bureau of Investigation, the
international organizations;
Department of the Interior and Local Government, the National
Telecommunications Commission, the Commission on Information
"(b) Coordinate with appropriate stakeholders, and Communications Technology, the National Computer Center,
service providers and relevant international the National Statistical and Coordination Board, the National
organizations for the promotion, development Statistics Office and other government agencies concerned with
and the full utilization of overseas Filipino overseas employment shall be established to implement a shared
worker returnees and their potentials; government information system for migration. The interagency
committee shall initially make available to itself the information
contained in existing data bases/files. The second phase shall
"(c) Institute, in cooperation with other involve linkaging of computer facilities on order to allow free-flow
government agencies concerned, a computer- data exchanges and sharing among concerned agencies.
based information system on returning Filipino
migrant workers shall be accessible to all local
recruitment agencies and employers, both "The inter-agency committee shall be co-chaired by the
public and private; Department of Foreign Affairs and the Department of Labor and
Employment. The National Computer Center shall provide the
necessary technical assistance and shall set the appropriate
"(d) Proved a periodic study and assessment of information and communications technology standards to facilitate
job opportunities for returning Filipino migrant the sharing of information among the member agencies.
workers;

"The inter-agency committee shall meet regularly to ensure the

"(e) Develop and implement other appropriate immediate and full implementation of this section and shall
programs to promote the welfare of returning explore the possibility setting up a central storage facility for the
Filipino migrant workers; data on migration. The progress of the implementation of this
section shall be include in the report to Congress of the
"(f) Maintain an internet-based communication Department of Foreign Affairs and the Department of Labor and
system for on-line registration and interaction Employment under Section 33.
with clients, and maintain and upgrade

48
"The inter-agency committee shall convene to identify existing that will discuss topics such as prevention of illegal recruitment
data bases which shall be declassified and shared among member and gender-sensitivity.
agencies. These shared data bases shall initially include, but not
be limited to, the following information:
"The Administration shall not engage in the recruitment and
placement of overseas workers except on a government-to-
"(a) Masterlists of Filipino migrant government arrangement only.
workers/overseas Filipino classified according
to occupation/job category, civil status, by
"In the recruitment and placement of workers to service the
country/state of destination including visa
requirements for trained and competent Filipino workers of foreign
classification;
governments and their instrumentalitys, and such other
employers as public interests may require, the Administration
"(b) Inventory of pending legal cases involving shall deploy only to countries where the Philippine has conclude
Filipino migrant workers and other Filipino bilateral labor agreements or arrangements: Provided, That such
nationals, including those serving prison terms; countries shall guarantee to protect the rights of Filipino migrant
workers; and Provided, further, That such countries shall observe
and/or comply with the international laws and standards for
"(c) Masterlists of departing/arriving Filipinos;
migrant workers."

"(d) Statistical profile on Filipino migrant

Section 15. Sub-paragraph (b.2) of Paragraph (b) of Section 23
workers/overseas Filipinos/tourists;
of Republic Act No. 8042, as amended, is hereby amended to read
as follows:
"(e) Blacklisted foreigners/undesirable aliens;
"(b.2) Overseas Workers Welfare Administration. - The Welfare
"(f) Basic data on legal systems, immigration officer of in his absence, the coordinating officer shall provide the
policies, marriage laws and civil and criminal Filipino migrant worker and his family all the assistance they may
codes in receiving countries particularly those need in the enforcement of contractual obligations by agencies or
with large numbers of Filipinos; entities and/or by their principals. In the performance of this
function, he shall make representation and may call on the
agencies or entities concerned to conferences or conciliation
"(g) List of Labor and other human rights meetings for the purpose of settling the compliance or problems
instruments where receiving countries are brought to his attention. The OWWA shall likewise formulate and
signatories; implement welfare programs for overseas Filipino workers and
their families while they are abroad and upon their return. It shall
"(h) A tracking system of past and present ensure the awareness by the overseas Filipino workers and their
gender disaggregated cases involving male and families of these programs and other related governmental
female migrant workers, including minors; and programs.

"(i) Listing of overseas posts which may render "In the repatriation of workers to be undertaken by OWWA, the
assistance to overseas Filipinos, in general, latter shall be authorized to pay repatriation-related expenses,
and migrant workers, in particular." such as fines or penalties, subject to such guidelines as the
OWWA Board of Trustees may prescribe."

Section 14. Subparagraph (b.1) of paragraph (b) of Section 23 of

Republic Act No. 8042, as amended, is hereby amended to read Section 16. Under Section 23 of Republic Act No. 8042, as
as follows: amended, add new paragraphs (c) and (d) with their
corresponding subparagraphs to read as follows:

"(b.1) Philippine Overseas Employment Administration. - The

Administration shall regulate private sector participation in the "(c) Department of Health. - The Department of Health (DOH)
recruitment and overseas placement of workers by setting up a shall regulate the activities and operations of all clinics which
licensing and registration system. It shall also formulate and conduct medical, physical, optical, dental, psychological and other
implement, in coordination with appropriate entities concerned, similar examinations, hereinafter referred to as health
when necessary, a system for promoting and monitoring the examinations, on Filipino migrant workers as requirement for their
overseas employment of Filipino workers taking into consideration overseas employment. Pursuant to this, the DOH shall ensure
their welfare and the domestic manpower requirements. It shall that:
be responsible for the regulation and management of overseas
employment from the pre-employment stage, securing the best " (c.1) The fees for the health examinations
possible employment terms and conditions for overseas Filipino are regulated, regularly monitored and duly
workers, and taking into consideration the needs of vulnerable published to ensure that the said fees are
sectors and the peculiarities of sea-based and land-based reasonable and not exorbitant;
workers. In appropriate cases, the Administration shall allow the
lifting of suspension of erring recruitment/manning agencies upon
the payment of fine of Fifty thousand pesos (P50,000.00) for " (c.2) The Filipino migrant worker shall only
every month of suspension. be required to undergo health examinations
when there is reasonable certainty that he or
she will be hired and deployed to the jobsite
"in addition to its powers and functions, the Administration shall and only those health examinations which are
inform migrant workers not only of their rights as workers but absolutely necessary for the type of job applied
also of their rights as human beings, instruct and guide the for or those specifically required by the foreign
workers how to assert their rights and provide the available employer shall be conducted;
mechanism to redress violation of their rights. It shall also be
responsible for the implementation, in partnership with other law-
enforcement agencies, of an intensified program against illegal " (c.3) No group or groups of medical clinics
recruitment activities. For this purpose, the POEA shall provide shall have a monopoly of exclusively
comprehensive Pre-Employment Orientation Seminars (PEOS)
49
 conducting health examinations on migrant shall, as be linked to the database of all
workers for certain receiving countries; concerned government agencies, particularly
the POEA for its updated lists of overseas job
orders and licensed recruitment agencies in
" (c.4) Every Filipino migrant worker shall have
good standing."
the freedom to choose any of the DOH-
accredited or DOH-operated clinics that will
conduct his/her health examinations and that Section 17. Subparagraph ( c ) of Section of Republic Act No.
his or her rights as a patient are respected. 8042, as amended, is hereby amended to read as follows:
The decking practice, which requires an
overseas Filipino worker to go first to an office
"( c ) To tap the assistance of reputable law firms, the Integrated
for registration and then farmed out to a
Bar of the Philippines, other bar associations and other
medical clinic located elsewhere, shall not be
government legal experts on overseas Filipino worker laws to
allowed;
complement the government's efforts to provide legal assistance
to our migrant workers;"
" (c.5) Within a period of three (3) years from
the effectivity of this Act, all DOH regional
Section 18. Section 25 of Republic Act No. 8042, as amended, is
and/or provincial hospitals shall establish and
hereby amended to read as follows:
operate clinics that can be serve the health
examination requirements of Filipino migrant
workers to provide them easy access to such "SEC. 25. Legal Assistance Fund. - There is herby established a
clinics all over the country and lessen their legal assistance fund for migrant workers, hereinafter referred to
transportation and lodging expenses and as the Legal Assistance Fund, in the amount of one hundred
million pesos (P100,000,000.00) to be constituted from the
following sources.
" (c.6) All DOH-accredited medical clinics,
including the DOH-operated clinics, conducting
health examinations for Filipino migrant "Fifty million pesos (50,000,000.00) from the Contingency Fund of
workers shall observe the same standard the President;
operating procedures and shall comply with
internationally-accepted standards in their
operations to conform with the requirements of "Thirty million pesos (30,000,000.00) from the Contingency Fund
receiving countries or of foreign of the President Social Fund;
employers/principals.
"Twenty million pesos (20,000,000.00) from the Welfare Fund for
"Any Foreign employer who does not honor the results of valid Overseas Workers established under Letter of Instructions No.
health examinations conducted by a DOH-accredited or DOH- 537 as amended by Presidential Decree Nos. 1694 and 1809; and
operated clinic shall be temporarily disqualified from the
participating in the overseas employment program, pursuant to "An amount appropriated in the annual General Appropriations Act
POEA rules and regulations. (GAA) which shall not be less than Thirty million pesos
(30,000,000.00) per year: Provided, that the balance of the Legal
"In case an overseas Filipino worker is found to be not medically Assistance Fund (LAF) including the amount appropriated for the
fit upon his/her immediate arrival in the country of destination, year shall not be less than One hundred million pesos
the medical clinic that conducted the health examination/s of such (P100,000,000.00) : Provided, further, That the fund shall be
overseas Filipino worker shall pay for his or her repatriation back treated as a special fund in the National Treasury and its balance,
to the Philippines and the cost of deployment of such worker. including the amount appropriated in the GAA, which shall form
part of the Fund, shall not revert to the General Fund.

"Any government official or employee who violates any provision

of this subsection shall be removed or dismissed from service with " Any balances of existing funds which have been set aside by the
disqualification to hold any appointive public office for five(5) government specifically as legal assistance or defense fund to
years. Such penalty is without prejudice to any other liability help migrant workers shall upon effectivity of this Act, be turned
which he or she may have incurred under existing laws, rules or over to, and form part of, the Fund created under this Act."
regulations.
Section 19. Section 26 of Republic Act No. 8042, as amended, is
"(d) Local Government Units. - In the fight against illegal hereby amended to read as follows:
recruitment, the local government units (LGUs), in partnership
with the POEA, other concerned government agencies , and non- "SEC. 26. Uses of the Legal Assistance Fund. - The Legal
government organizations advocating the rights and welfare of Assistance Fund created under the preceding section shall be used
overseas Filipino workers, shall take a proactive stance by being exclusively6 to provide legal services to migrant workers and
primarily responsible for the dissemination of information to their overseas Filipinos in distress in accordance with the guidelines,
constituents on all aspects of overseas employment. To carry out criteria and procedures promulgated in accordance with Section
this task, the following shall be undertaken by the LGUs: 24 ( a ) herof. The expenditures to be charged against the Fund
shall include the fees for the foreign lawyers to be hired by the
"(d.1) Provide a venue for the POEA, other Legal Assistant for Migrant Workers Affairs to represent migrant
concerned government agencies and non- workers facing charges or in filing cases against erring or abusive
government organizations to conduct PEOS to employers abroad, bail bonds to secure the temporary releases
their constituents on a regular basis; and other litigation expenses: Provided, That at the end of every
year, the Department of Foreign Affairs shall include in its report
to Congress, as provided for under Section 33 of this Act, the
"(d.2) Establish overseas Filipino worker help status of the Legal Assistance Fund, including the expenditures
desk or kiosk in their localities with the from the said fund duly audited by the Commission on Audit
objective of providing current information to (COA): Provided, further, That the hiring of foreign legal counsels,
their constituents on all the processes aspects when circumstances warrant urgent action, shall be exempt from
of overseas employment. Such desk or kiosk

50
the coverage of Republic Act No. 9184 or the Government Section 21. The first and last paragraph of Section 33 of Republic
Procurement Act." Act No. 8042, as amended, is hereby amended to read as follows:

Section 20. Section 32 of Republic Act No. 8042, as amended, is "SEC. 33. Report to Congress. - In order to inform the Philippine
hereby amended to read as follows: Congress on the implementation of the policy enunciated in
Section 4 hereof, the Department of Foreign Affairs and the
Department of Labor and Employment shall submit separately to
"SEC. 32. POEA, OWWA and other Boards; Additional
the said body a semi-annual report of Philippine foreign posts
Memberships. - Notwithstanding any provision of law to the
located in countries hosting Filipino migrant workers. The mid-
contrary, the respective Boards of the POEA and the OWWA shall,
year report covering the period January to June shall be
in addition to their present composition, have three (3) members
submitted not later than October 31 of the same year while the
each who shall come from the women, sea-based and land-based
year-end report covering the period July to December shall be
sectors respectively, to be selected and nominated openly by the
submitted not later than May 31 of the following year. The report
general membership of the sector being represented.
shall include, but shall not limited to, the following information:

" The selection and nomination of the additional members from

"xxx
the women, sea-based and land-based sectors shall be governed
by the following guidelines:
" Any officer of the government who fails to submit the report as
stated in this section shall be subject to an administrative penalty
"(a) The POEA and the OWWA shall launch a
of dismissal from the service with disqualification to hold any
massive information campaign on the selection
appointive public office for five (5) years."
of nominees and provide for a system of
consultative sessions for the certified leaders
or representatives of the concerned sectors, at Section 22. Section 35 of Republic Act No. 8042, as amended, is
least three (3) times, within ninety (90) days hereby amended to read as follows:
before the boards shall be convened, for
purposes of selection. The process shall be
SEC. 35. Exemption from Travel Tax Documentary Stamp and
open, democratic and transparent;
Airport Fee. - All laws to the contrary notwithstanding, the
migrant workers shall be exempt from the payment of travel tax
"(b) Only non-government organizations that and airport-fee upon proper showing of proof entitlement by the
protect and promote the rights and welfare of POEA.
overseas Filipino workers, duly registered with
the appropriate Philippine government agency
"The remittances of all overseas Filipino workers, upon showing of
and in good standing as such, and in existence
the same proof of entitlement by the overseas Filipino worker's
for at least three (3) years prior to the
beneficiary or recipient, shall be exempt from the payment of
nomination shall be qualified to nominate a
documentary stamp tax.
representative for each sector to the Board;

Section 23. A new Section 37-A. of Replublic Act No. 8042, as

"(c) The nominee must be at least twenty-five
amended, is hereby added to read as follows:
(25) years of age, able to read and write, and
a migrant worker at the time of his or her
nomination or was a migrant worker with at "SEC. 37-A. Compulsory Insurance Coverage for Agency-Hired
least three (3) years experience as such; and Workers. - In addition to the performance bond to be filed by the
recruitment/manning agency under Section 10, each migrant
worker deployed by a recruitment/manning agency shall be
"(d) A final list of all the nominees selected by
covered by a compulsory insurance policy which shall be secured
the OWWA/POEA governing boards, which shall
at no cost to the said worker. Such insurance policy shall be
consist of three(3) names for each sector to be
effective for the duration of the migrant worker's employment and
represented, shall be submitted to the
shall cover, at the minimum:
President and published in a newspaper of
general circulation;
"(a) Accidental death, with at least Fifteen
thousand United States dollars (US$10,000.00)
"Within thirty (30) days from the submission of the list, the
survivor's benefit payable to the migrant
President shall select and appoint from the list, the
worker's beneficiaries;
representatives to the POEA/OWWA governing boards.

"(c) Permanent total disablement, with at least

"The additional members shall have a term of three (3) years and
Seven thousand five hundred United States
shall be eligible for reappointment for another three (3) years. In
dollars (US$7,500.00) disability benefit
case of vacancy, the President shall in accordance with the
payable to the migrant worker. The following
provisions of this Act, appoint a replacement who shall serve the
disabilities shall be deemed permanent: total,
unexpired term of his or her predecessor.
complete loss of sight of both eyes; loss of
two(2) limbs at or above the ankles or wrists;
"Any executive issuances or orders issued that contravene the permanent complete paralysis of two (2)
provisions of this section shall have no force and effect. limbs; brain injury resulting to incurable
imbecility or insanity;
"All other government agencies and government-owned or
controlled corporations which require at least one (1) "(d) Repatriation cost of the worker when
representative from the overseas workers sector to their his/her employment is terminated without any
respective boards shall follow all the applicable provisions of this valid cause, including the transport of his or
section." her personal belongings. In case of death, the
insurance provider shall arrange and pay for
the repatriation or return of the worker's

51
 remains. The insurance provider shall also year certificate of authority shall be qualified to provide for the
render any assistance necessary in the worker's insurance coverage. Insurance companies who have
transport including, but not limited to, locating directors, partners, officers, employees or agents with relatives,
a local licensed funeral home, mortuary or within the fourth civil degree of consanguinity or affinity, who
direct disposition facility to prepare the body work or have interest in any of the licensed recruitment/manning
for transport, completing all documentation, agencies or in any of the government agencies involved in the
obtaining legal clearances, procuring consular overseas employment program shall be disqualified from
services, providing necessary casket or air providing this workers' insurance coverage.
transport container, as well as transporting the
remains including retrieval from site of death
"The recruitment/manning agency shall have the right to choose
and delivery to the receiving funeral home;
from any of the qualified insurance providers the company that
will insure the migrant worker it will deploy. After procuring such
"(e) Subsistence allowance benefit, with at insurance policy, the recruitment/manning agency shall provide
least One hundred United States dollars an authenticated copy thereof to the migrant worker. It shall then
(US$100.00) Per month for a maximum of six submit the certificate of insurance coverage of the migrant worker
(6) months for a migrant worker who is to POEA as a requirement for the issuance of an Overseas
involved in a case or litigation for the Employment Certificate (OEC) to the migrant worker. In the case
protection of his/her rights in the receiving of seafarers who are insured under policies issued by foreign
country; insurance companies, the POEA shall accept certificates or other
proofs of cover from recruitment/manning agencies: Provided,
That the minimum coverage under sub-paragraphs (a) to (i) are
"(f) Money claims arising from employer's
included therein.
liability which may be awarded or given to the
worker in a judgment or settlement of his or
her case in the NLRC. The insurance coverage "Any person having a claim upon the policy issued pursuant to
for money claims shall be equivalent to at least subparagraphs (a), (b), (c), (d) and (e) of this section shall
three (3) months for every year of the migrant present to the insurance company concerned a written notice of
worker's employment contract; claim together with pertinent supporting documents. The
insurance company shall forthwith ascertain the truth and extent
of the claim and make payment within ten (10) days from the
"In addition to the above coverage, the
filing of the notice of claim.
insurance policy shall also include:

"Any claim arising from accidental death, natural death or

"(g) Compassionate visit. When a migrant
disablement under this section shall be paid by the insurance
worker is hospitalized and has been confined
company without any contest and without the necessity of
for at least seven (7) consecutive days, he
providing fault or negligence of any kind on the part of the
shall be entitled to a compassionate visit by
insured migrant worker: Provided, That the following documents,
one (1) family member or a requested
duly authenticated by the Philippine foreign posts, shall be
individual. The insurance company shall pay for
sufficient evidence to substantiate the claim:
the transportation cost of the family member
or requested individual to the major airport
closest to the place of hospitalization of the "(1) Death Certificate - In case of natural or
worker. It is, however, the responsibility of the accidental death;
family member or requested individual to meet
all visa and travel document requirements;
"(2) Police or Accident Report - In case of
accidental death; and
"(h) Medical evacuation. When an adequate
medical facility is not available proximate to
"(3) Medical Certificate - In case of permanent
the migrant worker, as determined by the
disablement;
insurance company's physician and/or a
consulting physician, evacuation under
appropriate medical supervision by the mode "For repatriation under subparagraph (d) hereof, a certification
of transport necessary shall be undertaken by which states the reason/s for the termination of the migrant
the insurance provider; and worker's employment and the need for his or her repatriation shall
be issued by the Philippine foreign post or the Philippine Overseas
Labor Office (POLO) located in the receiving country.
"(i) Medical repatriation. When medically
necessary as determined by the attending
physician, repatriation under medical "For subsistence allowance benefit under subparagraph (e), the
supervision to the migrant worker's residence concerned labor attaché or, in his absence, the embassy or
shall be undertaken by the insurance provider consular official shall issue a certification which states the name of
at such time that the migrant worker is the case, the names of the parties and the nature of the cause of
medically cleared for travel by commercial action of the migrant worker.
carrier. If the period to receive medical
clearance to travel exceeds fourteen (14) days
from the date of discharge from the hospital, "For the payment of money claims under subparagraph (f), the
an alternative appropriate mode of following rules shall govern:
transportation, such as air ambulance, may be
arranged. Medical and non-medical escorts "(1) After a decision has become final and
may be provided when necessary. executor or a settlement/compromise
agreement has been reached between the
"Only reputable private insurance companies duly registered with parties at the NLRC, an order shall be released
the Insurance Commission (IC) , which are in existence and mandating the respondent
operational for at least Five hundred million pesos recruitment/manning agency to pay the
(P500,000,000.00) to be determined by the IC, and with a current amount adjudged or agreed upon within thirty
(30) days;
52
 "(2) The recruitment/manning agency shall provide them adequate legal assistance, including conciliation and
then immediately file a notice of claim with its mediation services, whether at home or abroad.
insurance provider for the amount of liability
insured, attaching therewith a copy of the
"At the end of every year, the Department of Labor and
decision or compromise agreement;
Employment and the IC shall jointly make an assessment of the
performance of all insurance providers, based upon the report of
"(3) Within ten (10) days from the filing of the NLRC and the POEA on their respective interactions and
notice of claim, the insurance company shall experiences with the insurance companies, and they shall have
make payment to the recruitment/manning the authority to ban or blacklist such insurance companies which
agency the amount adjudged or agreed upon, are known to be evasive or not responsive to the legitimate claims
or the amount of liability insured, whichever is of migrant workers. The Department of Labor and Employment
lower. After receiving the insurance payment, shall include such assessment in its year-end report to Congress.
the recruitment/manning agency shall
immediately pay the migrant worker's claim in
"For purposes of this section, the Department of Labor and
full, taking into account that in case the
Employment, IC, NLRC and the POEA, in consultation with the
amount of insurance coverage is insufficient to
recruitment/manning agencies and legitimate non-government
satisfy the amount adjudged or agreed upon, it
organizations advocating the rights and welfare of overseas
is liable to pay the balance thereof;
Filipino workers, shall formulate the necessary implementing rules
and regulations.
"(4) In case the insurance company fails to
make payment within ten (10) days from the
"The foregoing provisions on compulsory insurance coverage shall
filing of the claim, the recruitment/ manning
be subject to automatic review through the Congressional
agency shall pay the amount adjudged or
Oversight Committee immediately after three (3) years from the
agreed upon within the remaining days of the
effectivity of this Act in order to determine its efficacy in favor of
thirty (30)-day period, as provided in the first
the covered overseas Filipino workers and the compliance by
subparagraph hereof;
recruitment/manning agencies and insurance companies, without
prejudice to an earlier review if necessary and warranted for the
"(5) If the worker's claim was not settled purpose of modifying, amending and/or repealing these subject
within the aforesaid thirty (30)-day period, the provisions.
recruitment/manning agency's performance
bond or escrow deposit shall be forthwith
Section 24. A new Section 37-B of Republic Act No. 8042, as
garnished to satisfy the migrant worker's
amended, is hereby added to read as follows:
claim;

"Sec. 37-B. Congressional Oversight Committee. - There is hereby

"(6) The provision of compulsory worker's
created a Joint Congressional Oversight Committee composed of
insurance under this section shall not affect the
five (5) Senators and five (5) Representatives to be appointed by
joint and solidary liability of the foreign
the Senate President and the Speaker of the House of
employer and the recruitment/manning agency
Representatives, respectively. The Oversight Committee shall be
under Section 10;
co-chaired by the chairpersons of the Senate Committee on Labor
and Employment and the House of Representatives Committee on
"(7) Lawyers for the insurance companies, Overseas Workers Affairs. The Oversight Committee shall have
unless the latter is impleaded, shall be the following duties and functions:
prohibited to appear before the NLRC in money
claims cases under this section.
"(a) To set the guidelines and overall
framework to monitor and ensure the proper
"Any question or dispute in the enforcement of any insurance implementation of Republic Act No. 8042, as
policy issued under this section shall be brought before the IC for amended, as well as all programs, projects and
mediation or adjudication. activities related to overseas employment;

"In case it is shown by substantial evidence before the POEA that "(b) To ensure transparency and require the
the migrant worker who was deployed by a licensed submission of reports from concerned
recruitment/manning agency has paid for the premium or the cost government agencies on the conduct of
of the insurance coverage or that the said insurance coverage was programs, projects and policies relating to the
used as basis by the recruitment/manning agency to claim any implementation of Republic Act No. 8042, as
additional fee from the migrant worker, the said licensed amended;
recruitment/manning agency shall lose its license and all its
directors, partners, proprietors, officers and employees shall be
"(c) To approve the budget for the programs of
perpetually disqualified from engaging in the business of
the Oversight Committee and all
recruitment of overseas workers. Such penalty is without
disbursements therefrom, including
prejudice to any other liability which such persons may have
compensation of all personnel;
incurred under existing laws, rules or regulations.

"(d) To submit periodic reports to the President

"For migrant workers recruited by the POEA on a government-to-
of the Philippines and Congress on the
government arrangement, the POEA shall establish a foreign
implementation of the provisions of Republic
employers guarantee fund which shall be answerable to the
Act No. 8042, as amended;
workers' monetary claims arising from breach of contractual
obligations. For migrant workers classified as rehires, name hires
or direct hires, they may opt to be covered by this insurance "(e) To determine weaknesses in the law and
coverage by requesting their foreign employers to pay for the cost recommend the necessary remedial legislation
of the insurance coverage or they may pay for the premium or executive measures; and
themselves. To protect the rights of these workers, the POEA shall

53
 "(f) To perform such other duties, functions Pursuant to the authority vested by law on the Secretary of
and responsibilities as may be necessary to Foreign Affairs and the Secretary of Labor and Employment, and
attain its objectives. in the light of Republic Act No. 10022, An Act Amending Republic
Act No. 8042, Otherwise Known as the Migrant Workers and
Overseas Filipinos Act of 195, as amended, Further Improving the
"The Oversight Committee shall adopt its internal rules of
Standard of Protection and Promotion of the Welfare of Migrant
procedure, conduct hearings and receive testimonies, reports, and
Workers, Their Families and Overseas Filipinos in Distress, and For
technical advice, invite or summon by subpoena ad
Other Purpose, the following Implementing Rules and Regulations
testificandum any public official or private citizen to testify before
are hereby promulgated:
it, or require any person by subpoena duces tecum documents or
other materials as it may require consistent with the provisions of
Republic Act No. 8042, as amended. RULE I
GENERAL PROVISIONS
"The Oversight Committee shall organize its staff and technical
panel, and appoint such personnel, whether on secondment from Section 1. Declaration of Policies.
the Senate and the House of Representatives or on temporary,
contractual, or on consultancy, and determine their compensation
(a) In the pursuit of an independent foreign policy and
subject to applicable civil service laws, rules and regulations with
while considering national sovereignty, territorial
a view to ensuring a competent and efficient secretariat.
integrity, national interest and the right to self-
determination paramount in its relations with other
"The members of the Oversight Committee shall not receive states, the State shall, at all times, uphold the dignity of
additional compensation, allowances or emoluments for services its citizens whether in the country or overseas, in
rendered thereto except traveling, extraordinary and other general, and Filipino migrant workers, in particular,
necessary expenses to attain its goals and objectives. continuously monitor international conventions,
adopt/be signatory to and ratify those that guarantee
protection to our migrant workers, and endeavor to
"The Oversight Committee shall exist for a period of ten (10)
enter into bilateral agreements with countries hosting
years from the effectivity of this Act and may be extended by a
overseas Filipino workers.
joint concurrent resolution."

(b) The State shall afford full protection to labor, local

Section 25. Implementing Rules and Regulations. - The
and overseas, organized and unorganized, and promote
departments and agencies charged with carrying out the
full employment and equality of employment
provisions of this Act, except as otherwise provided herein, in
opportunities for all. Towards this end, the State shall
consultation with the Senate Committee on Labor and
provide adequate and timely social, economic and legal
Employment and the House of Representatives Committee on
services to Filipino migrant workers.
Overseas Workers Affairs, shall, within sixty (60) days after the
effectivity of this Act, formulate the necessary rules and
regulations for its effective implementation. (c) While recognizing the significant contribution of
Filipino migrant workers to the national economy
through their foreign exchange remittances, the State
Section 26. Funding. - The departments, agencies,
does not promote overseas employment as a means to
instrumentalities, bureaus, offices and government-owned and
sustain economic growth and achieve national
controlled corporations charged with carrying out the provisions of
development. The existence of the overseas
this Act shall include in their respective programs the
employment program rests solely on the assurance that
implementation of this Act, the funding of which shall be included
the dignity and fundamental human rights and freedoms
in the General Appropriations Act. The Congressional Oversight
of the Filipino citizens shall not, at any time, be
Committee on Overseas Workers Affairs shall have the sum of
compromised or violated. The State, therefore, shall
Twenty-five million pesos (P25,000,000.00), half of which shall be
continuously create local employment opportunities and
charged against the current appropriations of the Senate while the
promote the equitable distribution of wealth and the
other half shall be charged against the current appropriations of
benefits of development.
the House of Representatives, to carry out its powers and
functions for its initial operations and for fiscal years wherein the
General Appropriations Act is reenacted and no provision for its (d) The State affirms the fundamental equality before
continued operation is included in such Act. Thereafter, such the law of women and men and the significant role of
amount necessary for its continued operations shall be included in women in nation building. Recognizing the contribution
the annual General Appropriations Act. of overseas migrant women workers and their particular
vulnerabilities, the State shall apply gender sensitive
criteria in the formulation and implementation of policies
Section 27. Separability Clause. - If, for any reason, may portion
and programs affecting migrant workers and the
of this Act is declared unconstitutional or invalid, the same shall
composition of bodies tasked for the welfare of migrant
not affect the validity of the other provisions not affected thereby.
workers.

Section 28. Repealing Clause. - All laws, decrees, executive

(e) Free access to the courts and quasi-judicial bodies
orders, issuances, rules and regulations or parts thereof
and adequate legal assistance shall not be denied to any
inconsistent with the provisions of this Act are hereby repealed or
person by reason of poverty. In this regard, it is
modified accordingly.
imperative that an effective mechanism be instituted to
ensure that the rights and interest of distressed
Section 29. Effectivity. - This Act shall take effect fifteen (15) overseas Filipinos, in general, and Filipino migrant
days after its publication in at least two (2) newspapers of general workers, in particular, whether regular/documented or
circulation. irregular/undocumented, are adequately protected and
safeguarded.
OMNIBUS RULES AND REGULATIONS IMPLEMENTING THE
MIGRANT WORKERS AND OVERSEAS FILIPINOS ACT OF (f) The right of Filipino migrant workers and all overseas
1995, AS AMENDED BY REPUBLIC ACT NO. 10022 Filipinos to participate in the democratic decision-making
processes of the State and to be represented in
54
 institutions relevant to overseas employment is 3. Name hires or workers who are able to
recognized and guaranteed. secure overseas employment opportunity with
an employer without the assistance or
participation of any agency. [Labor Code, POEA
(g) The State recognizes that the most effective tool for
Rules]
empowerment is the possession of skills by migrant
workers. The government shall expand access of
qualified migrant workers to free skills development and (j) DOH - Department of Health
enhancement programs through scholarships, training
subsidies/grants of the concerned agencies. Pursuant to
(k) DOJ - Department of Justice
this and as soon as practicable, the government shall
deploy and/or allow the deployment only of skilled
Filipino workers. (l) DOLE - Department of Labor and Employment

(h) The State recognizes that non-governmental (m) DOST - Department of Science and Technology
organizations, trade unions, workers associations,
stakeholders and other similar entities duly recognized
as legitimate, are partners of the State in the protection (n) DOT - Department of Tourism
of Filipino migrant workers and in the promotion of their
welfare. The State shall cooperate with them in a spirit (o) Employment Contract - refers to the following:
of trust and mutual respect. The significant contribution
of recruitment and manning agencies shall form part of
this partnership. 1. For land-based workers hired by private
recruitment/employment agencies - an
individual written agreement between the
RULE II foreign principal/employer and the worker
DEFINITION OF TERMS based on the master employment contract
approved by the Administration; and
Section 1. Definitions.
2. For seafarers - written standard POEA-
(a) Act - refers to the "Migrant Workers and Overseas approved employment contract stipulating a
Filipinos Act of 1995," as amended by Republic Act No. specific period of employment and formulated
9422 and Republic Act No. 10022. through tripartite consultation, individually
adopted and agreed upon by the
principal/employer and the seafarer.
(b) Authority - refers to a document issued by the
Secretary of Labor and Employment authorizing the
officers, personnel, agents or representatives of a (p) Filipino Service Contractor - refers to any person,
licensed recruitment/manning agency to conduct partnership or corporation duly licensed as a private
recruitment and placement activities in a place stated in recruitment agency by the Secretary of Labor and
the license or in a specified place. Employment to recruit workers for its accredited projects
or contracts overseas.

(c) BI - Bureau of Immigration

(q) Gender Sensitivity - refers to cognizance of the
inequalities and inequities prevalent in society between
(d) Bona fide Non-Government Organizations (NGOs) - women and men and a commitment to address issues
refer to non-government, civil society or faith-based with concern for the respective interest of the sexes.
organizations duly recognized by the Philippine Embassy
as active partners of the Philippine Government in the
protection of Filipino migrant workers and the promotion (r) Head or manage - refers to any of the following acts:
of their welfare.
1. Control and supervise the operations of the
(e) CICT - Commission on Information and recruitment/manning agency or branch thereof
Communications Technology of which they are employed; or

(f) Contracted workers - refer to Filipino workers with 2. Exercise the authority to hire or fire
employment contracts already processed by the POEA employees and lay down and execute
for overseas deployment. management policies of the
recruitment/manning agency or branch
thereof.
(g) DFA - Department of Foreign Affairs
(s) Joint and several liability - refers to the liability of
(h) DILG - Department of Interior and Local Government the principal/employer and the recruitment/manning
agency, for any and all claims arising out of the
implementation of the employment contract involving
(i) Direct Hires - workers directly hired by employers for
Filipino workers for overseas deployment. If the
overseas employment as authorized by the Secretary of
recruitment/manning agency is a juridical being, the
Labor and Employment and processed by the POEA,
corporate officers and directors and partners, as the
including:
case may be, shall themselves be jointly and severally
liable with the corporation or partnership for the
1. Those hired by international organizations aforesaid claims and damages.

2. Those hired members of the diplomatic (t) IC - Insurance Commission

corps.
55
(u) Irregular/Undocumented Filipino migrant workers - of these Rules or any other kind of intervention with the
refer to the following: authorities in the country where he or she is found.

(1) Those who acquired their passports (jj) Overseas Filipino Worker or Migrant Worker - refers
through fraud or misrepresentation; to a person who is to be engaged, is engaged, or has
been engaged in a remunerated activity in a state of
which he or she is not a citizen or on board a vessel
(2) Those who possess expired visas or permits
navigating the foreign seas other than a government
to stay;
ship used for military or non-commercial purposes, or on
an installation located offshore or on the high seas. A
(3) Those who have no travel document "person to be engaged in a remunerated activity" refers
whatsoever; to an applicant worker who has been promised or
assured employment overseas.
(4) Those who have valid but inappropriate
visas; or (kk) OWWA - Overseas Workers Welfare Administration

(5) Those whose employment contracts were (ll) Placement Fees- refer to any and all amounts
not processed by the POEA or subsequently charged by a private recruitment agency from a worker
verified and registered on-site by the POLO, if for its recruitment and placement services as prescribed
required by law or regulation. by the Secretary of Labor and Employment.

(v) Labor Code - Presidential Decree No. 442, as (mm) POEA - Philippine Overseas Employment
amended Administration, shall be used interchangeably with the
term "Administration".
(w) License - refers to the document issued by the
Secretary of Labor and Employment authorizing a (nn) POLO - Philippine Overseas Labor Office
person, partnership or corporation to operate a private
recruitment/manning agency.
(oo) Principal - refers to an employer or foreign
placement agency hiring or engaging Filipino workers for
(x) LGU - Local Government Unit overseas employment through a licensed private
recruitment/manning agency.
(y) Manning Agency - refers to any person, partnership
or corporation duly licensed by the Secretary of Labor (pp) Private Recruitment/Employment Agency - refers to
and Employment to engage in the recruitment and any person, partnership or corporation duly licensed by
placement of seafarers for ships plying international the Secretary of Labor and Employment to engage in the
waters and for related maritime activities. recruitment and placement of workers for overseas
employment for a fee which is charged, directly or
indirectly, from the workers who renewed their
(z) NBI- National Bureau of Investigation employment contracts with the same principal.

(aa) NCC- National Computer Center (qq) Rehires - refer to land-based workers who renewed
their employment contracts with the same principal.
(bb) NLRC - National Labor Relations Commission
(rr) Regular/Documented Filipino Migrant Workers -
(cc) Non-licensee - refers to any person, partnership or Refer to the following:
corporation with no valid license to engage in
recruitment and placement of overseas Filipino workers (1) Those who possess valid passports and
or whose license is revoked, cancelled, terminated, appropriate visas or permits to stay and work
expired or otherwise delisted from the roll of licensed in the receiving country; and
recruitment/manning agencies registered with the POEA.

(2) Those whose contracts of employment

(dd) NRCO - National Reintegration Center for Overseas have been processed by the POEA, or
Filipino Workers subsequently verified and registered on-site by
the POLO, if required by law or regulation.
(ee) NSCB - National Statistical and Coordination Board
(ss) Seafarer - refers to any person who is employed or
(ff) NSO - National Statistics Office engaged in overseas employment in any capacity on
board a ship other than a government ship used for
military or non-commercial purposes. The definition shall
(gg) NTC - National Telecommunications Commission include fishermen, cruise ship personnel and those
serving on mobile offshore and drilling units in the high
(hh) Overseas Filipinos - refer to migrant workers, other seas.
Filipino nationals and their dependents abroad.
(tt) Skilled Filipino Workers - refer to those who have
(ii) Overseas Filipino in distress - refers to an Overseas obtained an academic degree, qualification, or
Filipino who has a medical, psycho-social or legal experience, or those who are in possession of an
assistance problem requiring treatment, hospitalization, appropriate level of competence, training and
counseling, legal representation as specified in Rule IX certification, for the job they are applying, as may be
determined by the appropriate government agency.
56
 (uu) TESDA - Technical Education and Skills by the POEA Governing Board prohibiting deployment shall be
Development Authority meted the same penalties in this section.

(vv) Underage Migrant Workers - refers to those who Section 3. Deployment of OFWs to Ocean-Going Ships.
are below 18 years or below the minimum age
requirement for overseas employment as determined by
The State shall also allow the deployment of OFWs to ships
the Secretary of Labor and Employment.
navigating the foreign seas or to installations located offshore or
on high seas whose owners/employers are compliant with
RULE III international laws and standards that protect the rights of migrant
DEPLOYMENT OF MIGRANT WORKERS workers.

Section 1. Guarantees of Migrant Workers Rights. The State shall Section 4. Deployment to Companies and Contractors with
allow the deployment of OFWs only in countries where the rights International Operations. The State shall likewise allow the
of Filipino migrant workers are protected. The government deployment of OFWs to companies and contractors with
recognizes any of the following as a guarantee on the part of the international operations: Provided, That they are compliant with
receiving country for the protection of the rights of OFWs: standards, conditions and requirements, as embodied in the
employment contracts prescribed by the POEA and in accordance
with internationally-accepted standards.
(a) It has existing labor and social laws protecting the
rights of workers, including migrant workers; or
Section 5. Deployment of Skilled Workers.
(b) It is a signatory to and/or a of multilateral
conventions, declarations or resolutions relating to the As soon as adequate mechanisms for determination of skills are in
protection of workers including migrant workers; or and place and consistent with national interest, the Secretary of Labor
and Employment shall allow the deployment only of skilled Filipino
workers.
(c) It has concluded a bilateral agreement or
arrangement with the government on the protection of
the rights of overseas Filipino Workers; Section 6. Termination or Ban on Deployment.

Provided, that the receiving country is taking positive and Notwithstanding the provisions of Sections 1 and 5 of this Rule, in
concrete measures to protect the rights of migrant workers in pursuit of the national interest or when public welfare so requires,
furtherance of any of the guarantees under subparagraphs (a), the POEA Governing Board, after consultation with the DFA, may,
(b), and (c) hereof. at any time, terminate or impose a ban on the deployment of
migrant workers.
"Positive and concrete measures" shall include legislative or
executive initiatives, diplomatic negotiations, judicial decisions, The POEA Governing Board may, after consultation with the DFA,
programs, projects, activities and such other acts by the receiving grant exceptions to the ban or lift the ban.
country aimed at protecting the rights of migrant workers.
Section 7. Travel Advisory.
For purposes of the preceding paragraphs, the DFA shall issue a
certification that a receiving country complies with any of the
The DFA shall issue travel advisories as the need arises. A "travel
guarantees under subparagraphs (a), (b), and (c) hereof, and
advisory" is a notice to the travelling public normally for a security
that the receiving country is taking such positive and concrete
reason and based on the prevailing peace and order situation in a
measures to protect workers, including migrant workers. The DFA
specific destination.
shall issue such certification to the POEA, specifying therein the
pertinent provisions of the receiving country's labor/social law, or
the convention/declaration/resolution, or the bilateral Section 8. Labor Situationer. The POEA, in consultation with the
agreement/arrangement which protect the rights of migrant DFA, shall disseminate information on labor and employment
workers. Such a certification shall be subject to review by the DFA conditions, migration realities and other facts, as well as
as often as may be deemed necessary. adherence of particular countries to international standards on
human and workers rights which will adequately prepare
individuals into making informed and intelligent decisions about
The POEA Governing Board shall, in a Resolution, allow only the
overseas employment. The POEA shall publish, in a timely
deployment of OFWs to receiving countries which have been
manner, such advisory in a newspaper of general circulation.
certified by the DFA as compliant with the above stated
guarantees.
The POEA may undertake other programs or resort to other
modes of information and dissemination campaigns, such as the
The POEA shall register OFWs only for receiving countries allowed
conduct of nationwide, comprehensive and sustainable Pre-
by the POEA Governing Board, subject to existing standards on
Employment Orientation Seminars.
accreditation of foreign employers/principals and qualification
requirements for workers.
RULE IV
ILLEGAL RECRUITMENT
Section 2. Liability of the Members of the POEA Governing Board,
Government Officials and Employees. The members of the POEA
Governing Board who actually voted in favor of a Resolution Section 1. Definition. For purposes of the Act, illegal recruitment
allowing the deployment of migrant workers without the DFA shall mean any act of canvassing, enlisting, contracting,
certification referred to in the preceding section shall suffer the transporting, utilizing, hiring, or procuring workers and includes
penalties of removal or dismissal from service with disqualification referring, contract services, promising or advertising for
to hold any appointive public office for five (5) years. Further, the employment abroad, whether for profit or not, when undertaken
government official or employee responsible for the issuance of by a non-licensee or non-holder of authority contemplated under
the permit or for allowing the deployment of migrant workers in Article 13(f) of Presidential Decree No. 442, as amended,
violation of this section and in direct contravention of a resolution
57
otherwise known as the Labor Code of the Philippines: Provided, those authorized under the Labor Code and its
That any such non-licensee or non-holder who, in any manner, implementing Rules and Regulations;
offers or promises for a fee employment abroad to two or more
persons shall be deemed so engaged. It shall likewise include the
(l) Failure to actually deploy a contracted worker without
following acts, whether committed by any person, whether a non-
valid reason as determined by the Department of Labor
licensee, non-holder, licensee or holder of authority:
and Employment;

(a) To charge or accept directly or indirectly any amount

(m) Failure to reimburse expenses incurred by the
greater than that specified in the schedule of allowable
worker in connection with his documentation and
fees prescribed by the Secretary of Labor and
processing for purposes of deployment, in cases where
Employment, or to make a worker pay or acknowledge
the deployment does not actually take place without the
any amount greater than that actually received by him
worker's fault; and
as a loan or advance;

(n) To allow a non-Filipino citizen to head or manage a

(b) To furnish or publish any false notice or information
licensed recruitment/manning agency.
or document in relation to recruitment or employment;

Section 2. Crime Involving Economic Sabotage. Illegal

(c) To give any false notice, testimony, information or
recruitment is deemed committed by a syndicate if carried out by
document or commit any act of misrepresentation for
a group of three (3) or more persons conspiring or confederating
the purpose of securing a license or authority under the
with one another. It is deemed committed in large scale if
Labor Code, or for the purpose of documenting hired
committed against three (3) or more persons individually or as a
workers with the POEA, which include the act of
group.
reprocessing workers through a job order that pertains
to non-existent work, work different from the actual
overseas work, or work with a different employer Section 3. Other Prohibited Acts. In addition to the acts
whether registered or not with the POEA; enumerated above, it shall also be unlawful for any person or
entity to commit the following prohibited acts:
(d) To induce or attempt to induce a worker already
employed to quit his employment in order to offer him a. Grant a loan to an OFW with interest exceeding eight
another unless the transfer is designed to liberate a (8%) percent per annum, which will be used for
worker from oppressive terms and conditions of payment of legal and allowable placement fees and
employment; make the migrant worker issue, either personally or
through a guarantor or accommodation party, postdated
checks in relation to the said loan;
(e) To influence or attempt to influence any person or
entity not to employ any worker who has not applied for
employment through his agency or who has formed, b. Impose a compulsory and exclusive arrangement
joined or supported, or has contacted or is supported by whereby an OFW is required to avail of a loan only from
any union or workers' organization; specifically designated institutions, entities, or persons;

(f) To engage in the recruitment or placement of c. Refuse to condone or renegotiate a loan incurred by
workers in jobs harmful to public health or morality or to an OFW after the latter's employment contract has been
the dignity of the Republic of the Philippines; prematurely terminated through no fault of his / her
own;
(g) To obstruct or attempt to obstruct inspection by the
Secretary of Labor and Employment or by his duly d. Impose a compulsory an exclusive arrangement
authorized representative; whereby an OFW is required to undergo health
examinations only from specifically designated medical
clinics, institutions, entities or persons, except in the
(h) To fail to submit reports on the status of
case of a seafarer whose medical examination cost is
employment, placement vacancies, remittance of foreign
shouldered by the principal/shipowner;
exchange earnings, separation from jobs, departures
and such other matters or information as may be
required by the Secretary of Labor and Employment; e. Impose a compulsory and exclusive arrangement
whereby an OFW is required to undergo training,
seminar, instruction or schooling of any kind only from
(i) To substitute or alter to the prejudice of the worker,
specifically designated institutions, entities or persons,
employment contracts approved and verified by the
except for recommendatory training mandated by
Department of Labor and Employment from the time of
principals/shipowners where the latter shoulder the cost
actual signing thereof by the parties up to and including
of such trainings;
the period of the expiration of the same without the
approval of the Department of Labor and Employment;
f. For a suspended recruitment/manning agency to
engage in any kind of recruitment activity including the
(j) For an officer or agent of a recruitment or placement
processing of pending workers' applications;
agency to become an officer or member of the Board of
any corporation engaged in travel agency or to be
engaged directly or indirectly in the management of a g. For a recruitment/manning agency or a foreign
travel agency; principal/employer to pass-on to the OFW or deduct
from his/her salary the payment of the cost of insurance
fees, premium or other insurance related charges, as
(k) To withhold or deny travel documents from applicant
provided under the compulsory worker's insurance
workers before departure for monetary or financial
coverage.
considerations, or for any other reasons, other than

58
Section 4. Persons Responsible. (a) Any official or employee of the DOLE, POEA, OWWA,
DFA, DOJ, DOH, BI, IC, NLRC, TESDA, CFO, NBI,
Philippine National Police (PNP), Manila International
The persons criminally liable for the above offenses are the
Airport Authority (MIAA), Civil Aviation Authority of the
principals, accomplices and accessories. In case of juridical
Philippines (CAAP), and other government agencies
persons, the officers having ownership, control, management or
involved in the implementation of the Act, regardless of
direction of their business and the responsible for the commission
the status of his/her employment; and
of the offense and the responsible employees/agents thereof shall
be liable.
(b) Any of his/her relatives within the fourth civil degree
of consanguinity or affinity.
Section 5. Penalties.

Any government official or employee found to be violating this

(a) Any person found guilty of illegal recruitment shall
section shall be charged administratively, according to Civil
suffer the penalty of imprisonment of not less than
Service Rules and Regulations without prejudice to criminal
twelve (12) years and one (1) day but not more than
prosecution.
twenty (20) years and a fine of not less than One million
pesos (P1,000,000.00) nor more than Two Million Pesos
(P2,000,000.00). The government agency concerned shall monitor and initiate,
upon its initiative or upon the petition of any private individual,
action against erring officials and employees, and/or their
(b) The penalty of life imprisonment and a fine of not
relatives.
less than Two Million Pesos (P2,000,000.00) nor more
than Five Million Pesos (P5,000,000.00) shall be
imposed if illegal recruitment constitutes economic RULE VI
sabotage as defined therein. ANTI-ILLEGAL RECRUITMENT PROGRAMS

Provided, however, That the maximum penalty shall be Section 1. POEA Anti-Illegal Recruitment Programs. The POEA
imposed if the person illegally recruited is less than adopts policies and procedures, prepares and implements
eighteen (18) years of age or committed by a non- intensified programs
licensee or non-holder of authority.
And strategies towards the eradication of illegal recruitment
(c) Any person found guilty of any of the prohibited acts activities such as, but not limited to the following:
shall suffer the penalty of imprisonment of not less than
six (6) years and one (1) day but not more than twelve
(a) Providing legal assistance to victims of illegal
(12) years and a fine of not less than Five Hundred
recruitment and related cases which are administrative
Thousand Pesos (P500,000.00) nor more than One
or criminal in nature, such as but not limited to
million pesos (P1,000,000.00).
documentation and counseling.

If the offender is an alien, he or she shall, in addition to the

(b) Prosecution of illegal recruiters, during preliminary
penalties herein prescribed, be deported without further
investigation and during trial in collaboration with the
proceedings.
DOJ prosecutors;

In every case, conviction shall cause and carry the automatic

(c) Special operations such as surveillance and closure
revocation of the license or registration of the
of establishment or entities suspected to be engaged in
recruitment/manning agency, lending institutions, training school
illegal recruitment; and
or medical clinic.

(d) Information and education campaign.

Section 6. Venue. A criminal action arising from illegal
recruitment as defined under this Rule shall be filed with the
Regional Trial Court of the province or city where the offense was Whenever necessary, the POEA shall coordinate with other
committed or where the offended party actually resides at the appropriate entities in the implementation of said programs.
time of the commission of the offense; Provided, that the court
where the criminal action is first filed shall acquire jurisdiction to
the exclusion of other courts. Section 2. Legal Assistance.

Section 7. Prescription. Illegal recruitment cases under this Rule The POEA shall provide free legal service to victims of illegal
shall prescribe in five (5) years; Provided, however, that illegal recruitment and related cases which are administrative or criminal
recruitment cases involving economic sabotage shall prescribed in in nature in the form of legal advice, assistance in the preparation
twenty (20) years. of complaints and supporting documents, institution of criminal
actions.

Section 8. Independent Action. The filing of an offense

punishable under this section shall be without prejudice to the Section 3. Receiving of Complaints for Illegal Recruitment.
filing of cases punishable under other existing laws, rules or
regulations. Victims of illegal recruitment and related cases which are
administrative or criminal in nature may file with the POEA a
RULE V report or complaint in writing and under oath for assistance
PROHIBITION OF GOVERNMENT PERSONNEL purposes.

Section 1. Disqualification. The following personnel shall be In regions outside the National Capital Region, complaints and
prohibited from engaging directly or indirectly in the business of reports involving illegal recruitment may be filed with the
recruitment of migrant workers; appropriate regional office of the POEA or DOLE.

59
Section 4. Endorsement of Case to the Proper Prosecution by the POEA Administrator or DOLE Regional Director, or their
Office. The POEA, after evaluation and proper determination that authorized representative is satisfied that such danger or
sufficient evidence exists for illegal recruitment and other related exploitation exists, a written order shall be issued by the POEA
cases, shall endorse the case to the proper Prosecution Office for Administrator for the closure of the establishment being used for
the conduct of preliminary investigation. illegal recruitment activity.

During preliminary investigation, the complainant may avail of In case of a business establishment whose license or permit to
legal assistance or counseling from the POEA. operate a business was issued by the local government, the
Secretary of Labor and Employment, the POEA Administrator or
the Regional Director concerned shall likewise recommend to the
Section 5. Institution of Criminal Action. The Secretary of Labor
granting authority the immediate cancellation/revocation of the
and Employment, the POEA Administrator or the DOLE Regional
license or permit to operate its business.
Director, or their duly authorized representatives, or any
aggrieved person, may initiate the corresponding criminal action
with the appropriate office. Section 12. Implementation of Closure Order. A closure order
shall be served upon the offender or the person in charge of the
subject establishment. The closure shall be effected by sealing
Section 6. Affidavits and Testimonies of Operatives. Affidavits
and padlocking the establishment and posting of notice of such
and testimonies of operatives or personnel from the DOLE, POEA
closure in bold letters at a conspicuous place in the premises of
and law enforcement agencies who witnessed the acts
the establishment. Whenever necessary, the assistance and
constituting the offense shall be sufficient basis to prosecute the
support of the appropriate law enforcement agencies may be
accused.
requested for this purpose.

Section 7. Legal Assistance During Trial. In the prosecution of

Section 13. Report on Implementation. A report on the
offenses punishable under Section 6 of the Act, the Anti-Illegal
implementation of the closure order executed under oath, stating
Recruitment Branch of the POEA shall collaborate with the public
the details of the proceedings undertaken shall be submitted to
prosecutors of the DOJ and, in certain cases, allow the POEA
the Director-LRO or the Regional Director concerned, as the case
lawyers to take the lead in prosecution.
may be, within two (2) days from the date of implementation.

Section 8. Special Allowance for Lawyers of the Prosecution

Section 14. Institution of Criminal Action Upon Closure
Division. The POEA lawyers who act as special counsels during
Order. The POEA Administrator or the DOLE Regional Director, or
preliminary investigation and/or as collaborating attorneys of the
their duly authorized representatives, or any law enforcement
public prosecutors of the DOJ during court hearings shall be
agencies or any aggrieved person may initiate the corresponding
entitled to receive additional allowances in such amounts as may
criminal action with the appropriate prosecutor's office.
be determined by the Administrator.

Section 15. Effect of Closure Order.

Section 9. Action on the Complaint/Report.

All officers and responsible employees of the entity engaged in

Where the complaint/report alleges that illegal recruitment
illegal recruitment activities shall be ordered included in the List of
activities are ongoing, surveillance shall be undertaken at the
Persons with Derogatory Record and be disqualified/barred from
premises where the alleged illegal recruitment activities are
participating in the overseas employment program of the
conducted. If illegal recruitment activities are confirmed, the
government.
POEA Director of the Licensing and Regulation Office (LRO) shall
recommend to the POEA Administrator the institution of criminal
action and/or the issuance of a closure order or order of Section 16. Who May File a Motion to Reopen the
preventive suspension. Establishment. The motion to re-open may be filed only by the
following:
Section 10. Surveillance. The POEA and/or designated officials in
the DOLE regional offices may, on their own initiative, conduct (a) The owner of the building or his/her duly authorized
surveillance on the alleged illegal recruitment activities. representative;

Within two (2) days from the termination of surveillance, a report (b) The building administrator or his/her duly authorized
supported by an affidavit shall be submitted to the Director-LRO representative;
or the Regional Director concerned, as the case may be.
(c) Any other person or entity legitimately operating
Section 11. Issuance of Closure Order. The POEA Administrator within the premises closed/padlocked whose
or the concerned DOLE Regional Director may conduct an ex parte operations/activities are distinct from the recruitment
preliminary examination to determine whether the activities of a activities of the person/entity subject of the closure
non-licensee constitute a danger to national security and public order.
order or will lead to further exploitation of job seekers. For this
purpose, the POEA Administrator or the Regional Director
Section 17. Grounds for Reopening the Establishment.
concerned or their duly authorized representatives, may examine
personally the complainants and/or their witnesses in the form of
searching questions and answers and shall take their testimony (a) That the office is not the subject of the closure
under oath. The testimony of the complainants and/or witnesses order;
shall be reduced in writing and signed by them and attested by an
authorized officer.
(b) That the contract of lease with the owner of the
building or the building administrator has already been
If based on a surveillance report, or preliminary examination of cancelled or terminated. The request to re-open shall be
the complainants, the POEA Administrator or DOLE Regional duly supported by an affidavit of undertaking either of
Director, or their authorized representative is satisfied that such the owner of the building or the building administrator
danger or exploitation exists, a written order may shall be issued that the same will not be leased/rented to any other
60
 person/entity for recruitment purposes without the advocating the rights and welfare of OFWs for the purpose of
necessary license from the POEA; dissemination of information on all aspects of overseas
employment.
(c) That the office is shared by a person/entity not
involved in illegal recruitment activities, whether directly For this purpose, the POEA shall continuously provide the
or indirectly; or concerned entities with updated lists of licensed agencies and
entities and information materials such as brochures, pamphlets,
posters as well as recent anti-illegal recruitment laws and
(d) Any other analogous ground that the POEA may
regulations for distribution to their respective constituents.
consider as valid and meritorious.

RULE VII
Section 18. Motion to Lift a Closure Order. A motion to lift a
MONEY CLAIMS
closure order which has already been implemented may be
entertained only when filed with the Licensing and Regulation
Office (LRO) within ten (10) calendar days from the date of Section 1. Jurisdiction of Labor Arbiters. Notwithstanding any
implementation. The motion shall be verified and shall clearly provision of law to the contrary, the Labor Arbiters of the NLRC
state the grounds upon which it is based, attaching supporting shall have the original and exclusive jurisdiction to hear and
documents. A motion to lift which does not conform to the decide, within ninety (90) calendar days after the filing of the
requirements herein set forth shall be denied. compliant, the claims arising out of an employer-employee
relationship or by virtue of any law or contract involving Filipino
workers for overseas deployment including claims for actual,
Section 19. Who May File Motion to Lift a Closure Order. The
moral, exemplary and other forms of damages.
verified motion to lift closure order may be filed only by the
person or entity against whom the closure order was issued and
implemented or a duly authorized representative. Section 2. Updates in the Global Services Industry.

Section 20. Grounds for Lifting A Closure Order. Lifting of the Consistent with the mandate in the preceding section, the NLRC
closure order may be granted on any of the following grounds: shall:

(a) The person/entity is later found out or has proven a. Endeavor to update and keep abreast with the
that it is not involved in illegal recruitment activities, developments in the global services industry; and
whether directly or indirectly; or
b. Participate in international or local conferences
(b) Any other analogous ground that the POEA may involving migration issues and in relevant overseas
consider as valid and meritorious. missions.

Lifting of a closure order is without prejudice to the filing of Section 3. Joint and Several Liability. The liability of the
criminal complaints with the appropriate office against the person principal/employer and the recruitment/placement agency on any
alleged to have conducted illegal recruitment activities. and all claims under this Rule shall be joint and several. This
liability shall be incorporated in the contract for overseas
employment and shall be a condition precedent for its approval.
Section 21. Appeal.
The performance bond to be filed by the recruitment/ placement
agency, as provided by law, shall be answerable for all money
The order of the POEA Administrator denying the motion to lift a claims or damages that may be awarded to the workers.
closure order and/or motion to re-open may be appealed to the
Secretary of Labor and Employment within ten (10) days from
If the recruitment/placement agency is a juridical being, the
receipt thereof.
corporate officers and directors and partners, as the case may be,
shall themselves be jointly and severally liable with the
Section 22. Monitoring of Establishments. The POEA shall corporation or partnership for the aforesaid claims and damages.
monitor establishments that are subject of closure orders.
Such liabilities shall continue during the entire period or duration
Where a re-opened office is subsequently confirmed as still being of the employment contract and shall not be affected by any
used for illegal recruitment activities, a new closure order shall be substitution, amendment or modification of the contract made
issued which shall not be subject to a motion to lift. locally or in a foreign country.

Section 23. Pre-Employment Orientation Seminar (PEOS). The Section 4. Compromise Agreement. Any compromise, amicable
POEA shall strengthen its comprehensive Pre-Employment settlement or voluntary agreement on money claims inclusive of
Orientation Program through the conduct of seminars that will damages under this Rule shall be paid within thirty (30) days from
discuss topics such as legal modes of hiring for overseas the approval of the settlement by the appropriate authority,
employment, rights, responsibilities and obligations of migrant unless a different period is agreed upon by the parties and
workers, health issues, prevention and modus operandi of illegal approved by the appropriate authority.
recruitment and gender sensitivity.
Section 5. Effect of Illegal Termination and/or Deduction. In case
The POEA shall inform migrant workers not only of their rights as of termination of overseas employment without just, valid or
workers but also of their rights as human beings, instruct and authorized cause as defined by law or contract, or any
guide the workers how to assert their rights and provide the unauthorized deduction from the migrant worker's salary, the
available mechanism to redress violation of their rights. worker shall be entitled to the full reimbursement of his
placement fee with interest of twelve per cent (12%) per annum,
plus his salaries for the unexpired portion of his employment
Section 24. Partnership with LGUs, other Government Agencies contract or three (3) months for every year of the unexpired
and NGOs. The POEA shall maintain and strengthen its term, whichever is less.
partnership with LGUs, other government agencies and NGOs
61
In case of any unauthorized deduction, the worker shall be Section 4. Negotiations of International Agreements. The DFA
entitled to the refund of the deductions made, with interest of shall be the lead agency that shall advise and assist the President
twelve per cent (12%) per annum, from the date the deduction in planning, organizing, directing, coordinating and evaluating the
was made. total national effort in the field of foreign relations pursuant to the
Revised Administrative Code (Executive Order No. 292).
Section 6. Effect of Final and Executory Judgment. In case of
final and executory judgment against a foreign RULE IX
employer/principal, it shall be automatically disqualified, without LEGAL ASSISTANT FOR MIGRANT WORKERS AFFAIRS
further proceedings, from participating in the Philippine Overseas
Employment Program and from recruiting and hiring Filipino
Section 1. Function and Responsibilities. The Legal Assistant for
workers until and unless it fully satisfies the judgment award.
Migrant Affairs under the Department of Foreign Affairs shall be
primarily responsible for the provision and over-all coordination of
For this purpose, the NLRC or any party in interest shall furnish all legal assistance services to Filipino Migrant Workers as well as
the POEA a certified true copy of the sheriff's return indicating the Overseas Filipinos in distress. In the exercise of these primary
failure to fully satisfy a final and executory judgment against a responsibilities, he/she shall discharge the following duties and
foreign employer/principal. functions:

Should the disqualified foreign employer/principal fully satisfy the (a) Issue the guidelines, procedures and criteria for the
judgment award, the NLRC or any party in interest shall furnish provision of legal assistance services to Filipino Migrant
the POEA a certified true copy of the sheriff's return indicating full Workers;
compliance with the judgment which may be a basis to lift the
disqualification.
(b) Establish close linkages with the DOLE, POEA, OWWA
and other government agencies concerned, as well as
Section 7. Voluntary Arbitration. For OFWs with collective with non-governmental organizations assisting migrant
bargaining agreements, the case shall be submitted for voluntary workers, to ensure effective coordination in providing
arbitration in accordance with Articles 261 and 262 of the Labor legal assistance to migrant workers;
Code.
(c) When necessary, tap the assistance of the Integrated
RULE VIII Bar of the Philippines (IBP), other bar associations, legal
ROLE OF DFA experts on labor, migration and human rights laws,
reputable law firms, and other civil society
organizations, to complement government services and
Section 1. Assistance to Nationals as the Third Pillar of Philippine
resources to provide legal assistance to migrant
Foreign Policy.
workers;

Assistance to nationals is the third pillar of the Philippine foreign

(d) Administer the Legal Assistance Fund for Migrant
policy. Pursuant to the Philippine Foreign Service Act of 1991 and
Workers and to authorize its disbursement, subject to
the Migrant Workers and Overseas Filipino Act, as amended, the
approved guidelines and procedures, governing its use,
DFA is mandated to formulate and implement policies and
disposition and disbursement;
programs to promote and protect the rights and welfare of Filipino
migrants, and provide consular and legal assistance to overseas
Filipinos in distress. (e)Keep and maintain an information system for
migration as provided in Section 20 of the Act;
Section 2. International, Regional and Bilateral Initiatives to
Protect Overseas Filipino Workers. The DFA shall continue to (f) Prepare its budget for inclusion in the Department of
advocate in international and regional for the protection and foreign Affair's budget in the annual General
promotion of the rights and welfare of overseas Filipino workers Appropriations Act; and
by taking the lead and/or actively participating in the crafting of
international and regional conventions/declarations/ agreements
(g) Perform such other functions and undertake other
that protect their rights and promote their welfare.
responsibilities as may be useful, necessary or incidental
to the performance of his/her mandate.
The DFA, through its foreign service posts, shall endeavor to
improve the conditions of overseas Filipino workers. It shall
Section 2. Qualifications and Authority. The Legal Assistant for
establish harmonious working relations with the receiving
Migrant Workers Affairs shall be headed by a lawyer of proven
countries through, among others, the forging of bilateral
competence in the field of law with at least ten (10) years
agreements/arrangements or other forms of cooperation.
experience as a legal practitioner and who must not have been a
candidate to an elective office in the last local or national
Section 3. One Country-Team Approach. Under the country-team elections. He/she shall be appointed by the President of the
approach, all officers, representatives and personnel posted Philippines. He/she shall have the title, rank, salary, and
abroad, regardless of their mother agencies shall, on a per privileges of an Undersecretary of Foreign Affairs, and shall head
country basis, act as one country-team with a mission under the the Office of the Undersecretary for Migrant Workers' Affairs
leadership of the ambassador. (OUMWA) of the Department of Foreign Affairs.

In receiving countries where there are Philippine consulates, such He/she shall have authority to hire private lawyers, domestic or
consulates shall also constitute part of the country-team under foreign, in order to assist him/her in the effective discharge of the
the leadership of the ambassador. functions of his/her Office.

In the implementation of the country-team approach, visiting Section 3. Legal Assistance Fund. The Legal Assistance Fund
Philippine delegations shall be provided full support and created under the Act shall be used exclusively to provide legal
information. services for Migrant Workers and Overseas Filipinos in distress in

62
accordance with approved guidelines, criteria and procedures of and management of overseas employment from the pre-
the DFA. employment stage, securing the best possible employment terms
and conditions for overseas Filipino workers, and taking into
consideration the needs of vulnerable sectors and the peculiarities
It shall be used inter alia for the following specific purposes:
of sea-based and land-based workers.

(a) In the absence of a counsel de oficio or court-

Section 4. Hiring through the POEA. The Administration shall
appointed lawyer, payment of attorney's fees to foreign
recruit and place workers primarily on government-to-government
lawyers for their services in representing migrant
arrangements. In the recruitment and placement to service the
workers facing criminal and labor cases abroad, or in
requirements for trained and competent Filipino workers of foreign
filing cases against erring or abusive employers abroad,
governments and their instrumentalities, and such other
provided, that no amount shall be disbursed for the
employers as public interests may require, the Administration
appeal of cases except when the penalty meted is life
shall deploy only to countries where the Philippines has concluded
imprisonment or death or under meritorious
bilateral agreements or arrangements: Provided that such
circumstances as determined by the Undersecretary for
countries shall guarantee to protect the rights of Filipino migrant
Migrant Workers Affairs;
workers; and provided further that such countries shall observe
and/or comply with the international laws and standards for
(b) Bail bonds to secure the temporary release of migrant workers.
workers under detention upon the recommendation of
the lawyer and the foreign service post concerned; and
Section 5. Foreign Employers Guarantee Fund. For migrant
workers recruited by the POEA on a government to government
(c) Court fees, charges and other reasonable litigation arrangement, the POEA shall, through relevant guidelines,
expenses when so recommended by their lawyers. establish and administer a Foreign Employers Guarantee Fund
which shall be answerable for the workers' monetary claims
arising from breach of contractual obligations.
RULE X
ROLE OF DOLE
Section 6. Jurisdiction of the POEA. The POEA shall exercise
original and exclusive jurisdiction to hear and decide:
Section 1. On-Site Protection. The DOLE shall see to it that labor
and social welfare laws in the foreign countries are fairly applied
to migrant workers and whenever applicable, to other overseas (a) all cases which are administrative in character,
Filipinos, including the grant of legal assistance and the referral to involving or arising out of violations of Rules and
proper medical centers or hospitals. Regulations relating to licensing and registration,
including refund of fees collected from the workers and
violation of the conditions for issuance of license to
Section 2. POLO Functions. The DOLE overseas operating arm recruit workers; (Based on jurisdictional areas under the
shall be the POLO, which shall have the following functions and POEA Charter or E.O. 247, as amended.)
responsibilities:

(b) disciplinary action cases and other special cases,

a. Ensure the promotion and protection of the welfare which are administrative in character, involving
and interests of OFWs and assist them in all problems employers, principals, contracting partners and OFWs
arising out of employer-employee relationships; processed by the POEA.

b. Coordinate the DOLE's employment promotion Section 7. Venue.

mandate, consistent with the principles of the Act;

Pre-employment/recruitment violation cases may be filed with the

c. Verify employment contracts and other employment- POEA Adjudication Office or at any DOLE/POEA regional office of
related documents; the place where the complainant applied or was recruited, at the
option of the complainant. The office where the complaint was
d. Monitor and report to the Secretary of Labor and first filed shall take cognizance of the case.
Employment on situations and policy developments in
the receiving country that may affect OFWs in particular Disciplinary action cases and other special cases shall be filed with
and Philippine labor policies, in general; the POEA Adjudication Office.

e. Supervise and coordinate the operations of the Section 8. Who may file. Any aggrieved person may file a
Migrant Workers and Other Overseas Filipinos Resource complaint in writing and under oath for violation of the Labor
Center; and Code and the POEA Rules and Regulations and other issuances.

f. Such other functions and responsibilities as may be For this purpose, an aggrieved person is one who is prejudiced by
assigned by the Secretary of Labor and Employment. the commission of a violation or any of the grounds for
disciplinary actions provided in the POEA Rules and Regulations.
A. POEA
However, the Administration, on its own initiative, may conduct
Section 3. Regulation of Private Sector. The POEA shall regulate proceedings based on reports of violations or any of the grounds
private sector participation in the recruitment and overseas for disciplinary actions provided in the POEA Rules and
placement of workers by setting up a licensing and registration Regulations and other issuances on overseas employment, subject
system. It shall also formulate and implement, in coordination to preliminary evaluation.
with appropriate entities concerned, when necessary, a system for
promoting and monitoring the overseas employment of Filipino Section 9. Prescriptive Period. All pre-employment/recruitment
workers taking into consideration their welfare and the domestic violation and disciplinary action cases shall be barred if not
manpower requirements. It shall be responsible for the regulation
63
commenced or filed with the Administration within three (3) years Section 15. Functions of the NRCO.
after such cause of action accrued.
The NRCO shall undertake the following:
Section 10. Imposition of Administrative Penalty. For pre-
employment/recruitment violation cases, the Administrator, in the
(a) Develop and support programs and projects for
exercise of adjudicatory power, may impose the penalty of
livelihood, entrepreneurship, savings, investments and
reprimand, suspension, or cancellation or revocation of license.
financial literacy for returning Filipino migrant workers
and their families in coordination with relevant
Where the penalty of suspension is imposed, the Administrator stakeholders, service providers and international
may impose disqualification from the overseas employment organizations;
program. For disciplinary action cases against workers, the
Administrator may likewise impose suspension or disqualification.
(b) Coordinate with appropriate stakeholders, service
providers and relevant international organizations for
Section 11. Appeal. the promotion, development and the full utilization of
overseas Filipino worker returnees and their potentials;
The decision of the Administration may be appealed to the
Secretary of Labor and Employment within fifteen (15) days from (c) Institute, in cooperation with other government
the receipt of the Decision. agencies concerned, a computer-based information
system on returning Filipino migrant workers which shall
be accessible to all local recruitment agencies and
B. OWWA
employers, both public and private;

Section 12. Programs and Services. The OWWA shall continue to

(d) Provide a periodic study and assessment of job
formulate and implement welfare programs for overseas Filipino
opportunities for returning Filipino migrant workers;
workers and their families in all phases of overseas employment.
It shall also ensure the awareness by the OFWs and their families
of these programs and other related government programs. (e) Develop and implement other appropriate programs
to promote the welfare of returning Filipino migrant
workers;
Section 13. Assistance in the Enforcement of Contractual
Obligations. In the implementation of OWWA welfare programs
and services and in line with the One-Country Team Approach for (f) Maintain an internet-based communication system
on-site services, the Welfare Officer or in his/her absence, the for on-line registration of returning OFWs and interaction
coordinating officer shall: with clients, and maintain and upgrade computer-based
service capabilities of the NRCO;
1. Provide the Filipino migrant worker and his/her family
all the assistance they may need in the enforcement of (g) Develop capacity-building programs for returning
contractual obligations by agencies or entities and/or by overseas Filipino workers and their families,
their principals; and implementers, service providers, and stakeholders;

2. Make representation and may call on the agencies or (h) Conduct research for policy recommendations and
entities concerned to conferences or conciliation program development; and
meetings for the purpose of settling the complaints or
problems brought to his/her attention. If there is no final
(i) Undertake other programs and activities as may be
settlement at the jobsite and the worker is repatriated
determined by the Secretary of Labor and Employment.
back to the Philippines, conciliation may continue at the
OWWA Central Office, or in any OWWA Regional Welfare
Office. Section 16. Formulation of Program. The DOLE, OWWA, TESDA,
and POEA shall, within sixty (60) days from effectivity of these
Rules, formulate a program that would motivate migrant workers
C. NRCO
to plan for productive options such as entry into highly technical
jobs or undertakings, livelihood and entrepreneurial development,
Section 14. Establishment of the National Reintegration Center better wage employment, and investment of savings.
for OFWs. The NRCO is hereby created in the Department of Labor
and Employment for returning Filipino migrant workers, which
D. Migrant Workers and Other Overseas Filipinos Resource
shall provide the mechanism of their reintegration into Philippine
Center
society, serve as a promotion house for their local employment,
and tap their skills and potentials for national development.
Section 17. Establishment of Migrant Workers and other
Overseas Filipino Resource Center.
The NRCO shall, in coordination with appropriate government and
non-government agencies, serve as a One-Stop Center that shall
address the multi-faceted needs of OFW-returnees and their A Migrant Workers and other Overseas Filipinos Resource Center
families. shall be established in countries where there are large
concentration of OFWs, as determined by the Secretary of Labor
and Employment. It shall be established within the premises of
For this purpose, TESDA, the Technology Resource Center (TRC),
the Philippine Embassy or the Consulate and be under the
and other government agencies involved in training and livelihood
administrative jurisdiction of the Philippine Embassy.1avvphi1
development shall give priority to household service workers and
entertainers.
When the Migrant Workers and other Overseas Filipinos Resource
Center is established outside the premises of the Embassy or
The NRCO shall be attached to the Office of the Administrator of
Consulate, the Department of Foreign Affairs shall exert its best
OWWA for supervision and policy guidance.

64
effort to secure appropriate recognition from the receiving Section 20. Administration of the Center. The POLO through the
government in accordance with applicable laws and practices. Labor Attaché shall supervise and coordinate the operations of the
Migrant Workers and other Overseas Filipinos Resource Center
and shall keep the Chief of Mission informed and updated on all
Section 18. Services. The Migrant Workers and other Overseas
matters affecting it at least quarterly through a written report
Filipinos Resource Center shall provide the following services:
addressed to the Chief of Mission.

a. Counseling and legal services;

Section 21. Round-the Clock Operations. The Migrant Workers
and other Overseas Filipino Resource Center shall operate on a
b. Welfare assistance including the procurement of 24-hour basis including Saturdays, Sundays and holidays. A
medical and hospitalization services; counterpart 24-hour Information and Assistance Center to ensure
a continuous network and coordinative mechanism shall be
established at the DFA and the DOLE/OWWA.
c. Information, advisory programs to promote social
integration such as post-arrival orientation, settlement
and community networking services and activities for Section 22. Budget. The establishment, yearly maintenance and
social interaction; operating costs of the Migrant Workers and other Overseas
Filipinos Resource Centers, including the costs of services and
programs not specially funded under the Act, shall be sourced
d. Registration of irregular/undocumented workers to from the General Appropriations Act (GAA) and shall be included
bring them within the purview of the Act; in the annual budget of the DOLE.

e. Implementation of DOLE and OWWA Programs; However, the salaries and allowances of overseas personnel shall
be sourced from the respective agencies' budgets.
f. Human resource development, such as training and
skills upgrading; RULE XI
ROLE OF DOH
g. Gender-sensitive programs and activities to assist
particular needs of migrant workers; Section 1. Regulation of Medical Clinics. The Department of
Health (DOH) shall regulate the activities and operations of all
h. Orientation program for returning workers and other clinics which conduct medical, physical, optical, dental,
migrants; psychological and other similar examinations, hereinafter referred
to as health examinations, on Filipino migrant workers as
requirement for their overseas employment. Pre-Employment
i. Monitoring of the daily situation, circumstances and Medical Examinations (PEME) for overseas work applicants shall
activities affecting migrant workers and other overseas be performed only in DOH-accredited medical clinics and health
Filipinos; facilities utilizing the standards set forth by DOH. Pursuant to this,
the DOH shall ensure that:
j. Ensuring that labor and social welfare laws in the
receiving country are fairly applied to migrant workers (a) The fees for the health examinations are regulated,
and other overseas Filipinos; and regularly monitored and duly published to ensure that
the said fees are reasonable and not exorbitant. The
k. Conciliation of disputes arising from employer- DOH shall set a minimum and maximum range of fees
employee relationship, in accordance with this Rule. for the different examinations to be conducted, based on
a thorough and periodic review of the cost of health
examinations and after consultation with concerned
Section 19. Personnel. Each Migrant Workers and Other stakeholders. The applicant-worker shall pay directly to
Overseas Filipinos Resource Center shall be staffed by Foreign the DOH-accredited medical clinics or health facilities
Service personnel, a Labor Attaché and other service attachés or where the PEME is to be conducted.
officers who represent Philippine government agencies abroad.

(b) The Filipino migrant workers shall only be required to

The following personnel may be assigned to the Center: undergo health examinations when there is reasonable
certainly by the hiring recruitment/manning agency
a. Psychologists, Social Workers, and a Shari'a or pursuant to POEA Rules and Regulations that he/she will
Human Rights Lawyer, in highly problematic countries as be hired and deployed to the jobsite and only those
categorized by the DFA and DOLE and where there is a health examinations which are absolutely necessary for
concentration of Filipino migrant workers; the type of job applied for those specifically required by
the foreign employer shall be conducted;

b. Individual volunteers and representatives from bona

fide non-government organizations from the receiving (c) No groups of medical clinics shall have a monopoly of
countries, if available and necessary as determined by exclusively conducting health examinations on migrant
the Labor Attaché in consultation with the Chief of workers for certain receiving countries;
Mission;
(d) Every Filipino migrant worker shall have the freedom
c. Public Relations Officer or Case Officer conversant, to choose any of the DOH-accredited or DOH-operated
orally and in writing, with the local language, laws, clinics that will conduct his/her health examinations and
customs and practices; and/or that his/her rights as a patient are respected. The
decking practice, which requires overseas Filipino
workers to go first to an office for registration and then
d. Legal Officers (POEA/NLRC/DOLE) and such other farmed out to a medical clinic located elsewhere, shall
professionals deemed necessary by the Secretary of not be allowed;
Labor and Employment.

65
 (e) Within a period of three (3) years from the effectivity a. Launch an aggressive campaign against illegal
of the Act, all DOH regional and/or provincial hospitals recruitment. They shall provide legal assistance to
under local government units shall establish and operate victims of illegal recruitment and, when necessary,
clinics that can serve the health examination coordinate with appropriate government agencies
requirements of Filipino migrant workers to provide regarding the arrest and/or prosecution of illegal
them easy access to such clinics all over the country and recruiters. They shall report any illegal recruitment
lessen their transportation and lodging expenses; and activity to the POEA for appropriate action.

(f) All DOH-accredited medical clinics, including the b. Provide a venue for the POEA, other government
DOH-operated clinics, conducting health examinations agencies, NGOs, and trained LGU personnel to conduct
for Filipino migrant workers shall observe the same Pre-Employment Orientation Seminars (PEOS) to their
standard operating procedures and shall comply with constituents on a regular basis.
internationally-accepted standards in their operations to
conform with the requirements of receiving countries or
c. Establish OFW help desks or kiosks in their localities
of foreign employers/principals.
with the objective of providing current information to
their constituents on all the processes and aspects of
Section 2. Temporary Disqualification of Foreign Employers. Any overseas employment. Such desks or kiosks shall, as far
foreign employer who does not honor the results of valid health as practicable, be fully computerized and shall be linked
examinations conducted by a DOH-accredited or DOH-operated to the database of all concerned government agencies,
clinic shall be temporarily disqualified from participating in the particularly the POEA for its updated lists of overseas job
overseas employment program, pursuant to POEA Rules and orders and licensed agencies in good standing.
Regulations. The temporary disqualification of the employer may
be lifted only upon the latter's unqualified acceptance of the result
d. Establish and maintain a database pertaining to a
of the examination.
master list of OFWs residing in their respective localities,
classified according to occupation, job category, civil
Section 3. Liability of Medical Clinic or Health Facility. In case an status, gender, by country or state of destination,
OFW is found to be not medically fit within fifteen (15) days upon including visa classification, name, address, and contact
his/her arrival in the country of destination, the medical clinic or number of the employer.
health facility that conducted the health examination/s of such
OFW shall pay for his/her repatriation back to the Philippines and
RULE XIII
the cost of deployment of such worker.
REPATRIATION OF WORKERS

Any DOH-accredited clinic which violates any provisions of this

Section 1. Primary Responsibility for Repatriation.
section shall, in addition to any other liability it may have
incurred, suffer the penalty of revocation of its DOH-accredited if
after investigation, the medical reason for repatriation could have The repatriation of the worker or his/her remains, and the
been detected at the time of examination using the DOH PEME transport of his/her personal effects shall be the primary
package as required by the employer/principal or the receiving responsibility of the principal, employer or agency that recruited
country. or deployed him/her abroad. All costs attendant thereto shall be
borne by the principal, employer or the agency concerned.
Section 4. Liability of Government Personnel for Nonfeasance and
Malfeasance of their Duties under the Act. Section 2. Obligation to Advance Repatriation Costs.

Any government official or employee who violates any provision of Notwithstanding the provisions of Section 37-A of the Act, the
this Rule shall be removed or dismissed from service with primary responsibility to repatriate entails the obligation on the
disqualification to hold any appointive public office for five (5) part of the principal or agency to advance the repatriation and
years. Such penalty is without prejudice to any other liability other attendant costs, including plane fare, deployment cost of
which he/she may have incurred under existing laws, rules or the principal, and immigration fines and penalties, to immediately
regulations. repatriate the worker should the need for it arise, without a prior
determination of the cause of the termination of the worker's
employment. However, after the worker has returned to the
Section 5. Issuance of Guidelines.
country, the principal or agency may recover the cost of
repatriation from the worker if the termination of employment
Within sixty (60) days from effectivity of these Rules, the DOH was due solely to his/her fault.
shall issue the pertinent guidelines to implement the provisions of
this Rule.
In countries where there is a need to secure an exit visa for the
worker's repatriation, the principal or employer shall be primarily
RULE XII responsible for securing the visa at no cost to the worker. The
ROLE OF LGUs agency shall coordinate with the principal or employer in securing
the visa.
Section 1. Role in Anti-Illegal Recruitment and the Overseas
Employment Program. In the fight against illegal recruitment, the Every contract for overseas employment shall provide for the
local government units (LGUs) and the Department of the Interior primary responsibility of the principal or employer and agency to
and Local Government (DILG), in partnership with the POEA, advance the cost of plane fare, and the obligation of the worker to
other concerned government agencies, and non-government refund the cost thereof in case his/her fault is determined by the
organizations advocating the rights and welfare of OFWs, shall Labor Arbiter.
take a proactive stance by being primarily responsible for the
dissemination of information to their constituents on all aspects of
Section 3 Repatriation Procedure.
overseas employment. To carry out this task, the following shall
be undertaken by the LGUs:
When a need for repatriation arises and the foreign employer fails
to provide for its cost, the POLO or responsible personnel on-site
66
shall simultaneously notify OWWA and the POEA of such need. In all cases where the principal or agency of the worker cannot be
The POEA shall issue a notice requiring the agency concerned to identified, cannot be located or had ceased operations, and the
provide, within 48 hours from such notice, the plane ticket or the worker is in need and without means, the OWWA personnel at the
prepaid ticket advice (PTA) to the POLO or Philippine Embassy. jobsite, in coordination with the DFA, shall cause the repatriation
The agency shall notify the POEA of such compliance, which shall in appropriate cases. All costs attendant to repatriation borne by
then inform OWWA of the action of the agency. the OWWA may be charged to the Emergency Repatriation Fund
provided in the Act, without prejudice to the OWWA requiring the
agency/employer/insurer or the worker to reimburse the cost of
In case there is a need to secure an exit visa for the repatriation
repatriation.
of the worker, the employer or principal shall have fifteen (15)
days from notice to secure such an exit visa. Moreover, any
agency involved in the worker's recruitment, processing, and/or Section 8. Emergency Repatriation Fund.
deployment shall also coordinate with the principal or employer in
securing the visa.
When repatriation becomes immediate and necessary, the OWWA
shall advance the needed costs from the Emergency Repatriation
Section 4. Action on Non-Compliance. Fund without prejudice to reimbursement by the deploying agency
and/or principal, or the worker in appropriate cases.
Simultaneously, the POEA shall ask the concerned agency to work
If the employment agency fails to provide the ticket or PTA within
towards reimbursement of costs advanced by the OWWA. In cases
48 hours from receipt of the notice, the POEA shall suspend the
where the cost of repatriation shall exceed One Hundred Million
documentary processing of the agency or impose such sanctions
(P100,000,000.00) Pesos, the OWWA shall make representation
as it may deem necessary. Upon notice from the POEA, OWWA
with the Office of the President for immediate funding in excess of
shall advance the costs of repatriation with recourse to the agency
said amount.
or principal. The administrative sanction shall not be lifted until
the agency reimburses the OWWA of the cost of repatriation with
legal interest. Section 9. Prohibition on Bonds and Deposits.

If the principal or employer and/or agency fail to secure the exit In no case shall a private recruitment/manning agency require
visa within a period of fifteen (15) days from receipt of the POEA any bond or cash deposit from the worker to guarantee
notice, the POEA shall suspend the employer or principal from performance under the contract or his/her repatriation.
participating in the overseas employment program, and may
impose suspension of documentary processing on the agency, if
RULE XIV
warranted.
SHARED GOVERNMENT INFORMATION SYSTEM FOR
MIGRATION
Section 5. Emergency Repatriation.
Section 1. Composition. An Inter-Agency Committee shall be
The OWWA, in coordination with DFA, and in appropriate established to implement a shared government information
situations, with international agencies, shall undertake the system for migration. The Inter-Agency Committee shall be
repatriation of workers in cases of war, epidemic, disasters or composed of the following agencies:
calamities, natural or man-made, and other similar events without
prejudice to reimbursement by the responsible principal or agency
a) Department of Foreign Affairs:
within sixty (60) days from notice. In such case, the POEA shall
simultaneously identify and give notice to the agencies concerned.
b) Department of Labor and Employment and concerned
attached agencies;
Section 6. Mandatory Repatriation of Underage Migrant
Workers. Upon discovery or upon being informed of the presence
of migrant workers whose actual ages fall below the minimum age c) Department of Justice;
requirement for overseas deployment, the responsible officers in
the Foreign Service shall without delay repatriate said workers
and advise the DFA through the fastest means of communication d) Department of the Interior and Local Government;
available of such discovery and other relevant information.
e) Department of Health and concerned attached
In addition to requiring the recruitment/manning agency to pay or agencies;
reimburse the costs of repatriation, the POEA shall cancel the
license of the recruitment/manning agency that deployed an f) Department of Social Welfare and Development;
underage migrant worker after notice and hearing and shall
impose a fine of not less than five hundred thousand pesos
(Php500.000.00) but not more than One million pesos g) Department of Tourism;
(Php1,000,000.00). The POEA shall also order the
recruitment/manning agency to refund all fees pertinent to the h) Insurance Commission;
processing of papers or documents in the deployment, to the
underage migrant worker or to his parents or guardian in a
summary proceeding conducted. i) Commission on Filipinos Overseas;

The refund shall be independent of and in addition to the j) Bureau of Immigration;

indemnification for the damages sustained by the underage
migrant worker. The refund shall be paid within thirty (30) days k) National Bureau of Investigation;
from the date the POEA is officially informed of the mandatory
repatriation as provided for in the Act.
l) National Telecommunications Commission;

Section 7. Other Cases of Repatriation.

m) Commission on Information and Communications
Technology;
67
 n) National Computer Center; k) List of accredited foreign employers;

o) National Statistical and Coordination Board; l) List of recruiters and recruitment agencies with
decided/pending criminal/civil/administrative cases, and
their dispositions; and
p) National Statistics Office;

m) Such other information as may be deemed necessary

q) Home Development Mutual Fund; and
by the Inter-Agency Committee.

r) Other government agencies concerned with overseas

The Inter-Agency Committee shall establish policies, guidelines,
employment.
and procedures in implementing this Rule, including
declassification of information.
Section 2. Availability, Accessibility and Linkaging of Computer
Systems. Initially, the Inter-Agency Committee shall make
Section 5. Confidentiality of Information. Information and data
available to itself the information contained in existing data
acquired through this shared information system shall be treated
bases/files of its member agencies. The second phase shall
as confidential and shall only be used for official and lawful
involve linkaging of computer facilities systems in order to allow
purposes, related to the usual functions of the Inter-Agency
the free-flow data exchanges and sharing among concerned
Committee members, and for purposes envisioned by the Act.
agencies.

Section 6. Regular Meetings. The Inter-Agency Committee shall

Section 3. Chair and Technical Assistance. The Inter-Agency
meet regularly to ensure the immediate and full implementation
Committee shall be co-chaired by the Department of Foreign
of Section 20 of the Act and shall explore the possibility of setting
Affairs and the Department of Labor and Employment. The
up a central storage facility for the data on migration. The
National Computer Center shall provide the necessary technical
progress of the implementation shall be included in the report of
assistance and shall set the appropriate information and
the DFA and the DOLE under Section 33 of the Act.
communications technology standards to facilitate the sharing of
information among the member agencies.
The Inter-Agency Committee shall convene thirty (30) days from
effectivity of these Rules to prioritize the discussion of the
Section 4. Declassification and Sharing of Existing
following, inter alia: data to be shared, frequency of reporting,
Information. The Inter-Agency Committee shall convene to
and timeless and availability of data.
identify existing databases, which shall be declassified and shared
among member agencies. These shared databases shall initially
include, but not be limited to, the following information: Section 7. Secretariat.

a) Master lists of Filipino migrant workers/overseas A secretariat, which shall provide administrative and support
Filipinos classified according to occupation/job category, services to the Inter-Agency Committee shall be based in the
civil status, by country/state of destination including visa DFA.
classification;
Section 8. Funds. The Philippine Charity Sweepstakes Office shall
b) Inventory of pending legal cases involving Filipino allocate an initial amount of P10 Million to carry out the provisions
migrant workers and other Filipino migrant workers and of this Rule. Thereafter, the actual budget of the Inter-Agency
other Filipino nationals, including those serving prison Committee shall be drawn from the General Appropriations Act in
terms; accordance with Section 26 of Republic Act No. 10022.

c) Master list of departing/arriving Filipinos; The E-Government Fund may be tapped for purposes of fund
sourcing by the Inter-Agency Committee.
d) Statistical profile on Filipino migrant
workers/overseas Filipinos/ tourists; RULE XV
MIGRANT WORKERS LOAN GUARANTEE FUND
e) Blacklisted foreigners/undesirable aliens;
Section 1. Definitions.
f) Basic data on legal systems, immigration policies,
marriage laws and civil and criminal codes in receiving (a) Pre-Departure Loans - refer to loans granted to
countries particularly those with large numbers of departing migrant workers covered by new contracts to
Filipinos; satisfy their pre-departure requirements such as
payments for placement/processing fees, airplane fare,
subsistence allowance, cost of clothing and pocket
g) List of labor and other human rights instruments
money.
where receiving countries are signatories;

(b) Family Assistance Loans - refer to loans granted to

h) A tracking system of past and present gender
currently employed migrant workers or their eligible
desegregated cases involving male and female migrant
dependents/families in the Philippines to tide them over
workers, including minors; and
during emergency situations.

i) List of overseas posts, which may render assistance to

(c) Guarantee Agreement - refers to a contract between
overseas Filipinos in general, and migrant workers, in
the participating financial institution and OWWA whereby
particular.
the latter pledges to pay a loan obtained by a migrant
worker from the former in case the worker defaults.
j) List of licensed recruiters and recruitment agencies;
68
 (d) GFIs - refer to government financial institutions. Section 2. Policy Coverage.

Section 2. Loan Guarantee Fund. Such insurance policy shall be effective for the duration of the
migrant worker's employment contract and shall cover, at the
minimum:
The Migrant Workers Loan Guarantee Fund is hereby established:

(a) Accidental death, with at least Fifteen Thousand

(a) to prevent any recruiter from taking advantage of
United States Dollars (US$ 15,000.00) survivor's benefit
workers seeking employment abroad by expanding the
payable to the migrant worker's beneficiaries;
grant of Pre-Departure and Family Assistance Loans to
covered migrant workers;
(b) Natural death, with at least Ten Thousand United
States Dollars (US$ 10,000.00) survivor's benefit
(b) to establish and operate a guarantee system in order
payable to the migrant worker's beneficiaries;
to provide guarantee cover on the pre-departure and
family assistance loans of migrant workers who lack or
have insufficient collateral or securities; and (c) Permanent total disablement, with at least Seven
Thousand Five Hundred United States Dollars
(US$7,500) disability benefit payable to the migrant
(c) to ensure the participation of GFIs in extending loan
worker. The following disabilities shall be deemed
assistance to needy migrant workers who are to be
permanent: total, complete loss of sight of both eyes;
engaged or is engaged for a remunerated activity
loss of two limbs at or above the ankles or wrists;
abroad.
permanent complete paralysis of two limbs; brain injury
resulting to incurable imbecility or insanity;
Section 3. Coverage and Scope.
(d) Repatriation cost of the worker when his/her
All departing migrant workers who need financial assistance to employment is terminated by the employer without any
pay or satisfy their pre-departure expenses may avail of the Pre- valid cause, or by the employee with just cause,
Departure Loans. including the transport of his/her personal belongings. In
case of death, the insurance provider shall arrange and
pay for the repatriation or return of the worker's
Currently employed migrant workers or their eligible dependents remains. The insurance provider shall also render any
who need emergency financing assistance may avail of the Family assistance necessary in the transport, including but not
Assistance Loan. limited to, locating a local and licensed funeral home,
mortuary or direct disposition facility to prepare the
Section 4. Administration of the Fund. body for transport, completing all documentation,
obtaining legal clearances, procuring consular services,
providing death certificates, purchasing the minimally
Pursuant to Sec. 21 of the Act, the amount of One Hundred Million necessary casket or air transport container, as well as
pesos (P100,000,000.00) from the Capital Funds of OWWA shall transporting the remains including retrieval from site of
constitute the Migrant Workers Loan Guarantee Fund. The Fund, death and delivery to the receiving funeral home. This
which shall be administered by the OWWA, shall be used provision shall be without prejudice to the provisions of
exclusively to guarantee the repayment of Pre-Departure and Rule XIII of these Rules and Regulations.
Family Assistance Loans granted by participating GFIs.

(e) Subsistence allowance benefit, with at least One

All existing revolving funds earmarked for the Pre-Departure and Hundred United States Dollars (US$100) per month for a
Family Assistance Loans shall revert back to the OWWA Capital maximum of six (6) months for a migrant worker who is
Fund. involved in a case or litigation for the protection of
his/her rights in the receiving country.
Section 5. Financing Scheme.
(f) Money claims arising from employer's liability which
The OWWA shall initiate arrangements with GFIs to implement may be awarded or given to the worker in a judgment or
mutually agreed financing schemes, that will expand the Pre- settlement of his/her case in the NLRC. The insurance
Departure and Family Assistance Loans. coverage for money claims shall be equivalent to at least
three (3) months salaries for every year of the migrant
worker's employment contract;
Section 6. Guarantee Agreement.

(g) Compassionate visit. When a migrant worker is

No loan shall be considered covered by a guarantee unless a hospitalized and has been confined for at least seven (7)
Guarantee Agreement has been prepared and approved by both consecutive days, he shall be entitled to a
the participating financial institution and the OWWA. compassionate visit by one (1) family member or a
requested individual. The insurance company shall pay
RULE XVI for the transportation cost of the family member or
COMPULSORY INSURANCE COVERAGE requested individual to the major airport closest to the
FOR AGENCY-HIRED WORKERS place of hospitalization of the worker. It is, however, the
responsibility of the family member or requested
individual to meet all visa and travel document
Section 1. Migrant Workers Covered. In addition to the requirements;
performance bond to be filed by the recruitment/manning agency
under Section 10 of the Act, each migrant worker deployed by a
recruitment/manning agency shall be covered by a compulsory (h) Medical evacuation. When an adequate medical
insurance policy which shall be secured at no cost to the said facility is not available proximate to the migrant worker,
worker. as determined by the insurance company's physician
and a consulting physician, evacuation under

69
 appropriate medical supervision by the mode of Section 7. Documentary Requirements for Accidental or Natural
transport necessary shall be undertaken by the Death or Disablement Claims. Any claim arising from accidental
insurance provider; and death, natural death or permanent total disablement under
Section 2 (a), (b) and (c) shall be paid by the insurance company
without any contest and without the necessity of proving fault or
(i) Medical repatriation. When medically necessary as
negligence of any kind on the part of the insured migrant worker:
determined by the attending physician, repatriation
Provided the following documents, duly authenticated by the
under medical supervision to the migrant worker's
Philippine foreign posts, shall be sufficient evidence to
residence shall be undertaken by the insurance provider
substantiate the claim:
at such time that the migrant worker is medically
cleared for travel by commercial carrier. If the period to
receive medical clearance to travel exceeds fourteen (1) Death Certificate - in case of natural or accidental
(14) days from the date of discharge from the hospital, death;
an alternative appropriate mode of transportation, such
as air ambulance, may be arranged. Medical and non-
(2) Police or Accident Report - in case of accidental
medical escorts may be provided when necessary. This
death; and
provision shall be without prejudice to the provisions of
Rule XIII of these Rules and Regulations.
(3) Medical Certificate - in case of permanent
disablement.
Section 3. Duty to Disclose and Assist. It shall be the duty of the
recruitment/manning agency, in collaboration with the insurance
provider, to sufficiently explain to the migrant worker, before In case of a seafarer, the amounts provided in Section 2 (a), (b),
his/her departure, and to at least one of his/her beneficiaries the or (c), as the case may be shall, within ten (10) days from
terms and benefits of the insurance coverage, including the claims submission of the above-stated documents, be paid by the foreign
procedure. insurance company through its Philippine representative to the
seafarer/beneficiary without any contest and without any
necessity of proving fault or negligence on the part of the
Also, in filing a claim with the insurance provider, it shall be the
seafarer. Such amount received by the seafarer/beneficiary may
duty of the recruitment/manning agency to assist the migrant
be entitled to under the provisions of the POEA-Standard
worker and/or the beneficiary and to ensure that all information
Employment Contract or collective bargaining agreement (CBA).
and documents in the custody of the agency necessary for the
Any claim in excess of the amount paid pursuant to the no
claim must be readily accessible to the claimant.
contest, no fault or negligence provision of this section shall be
determined in accordance with the POEA-SEC or CBA.
Section 4. Qualification of Insurance Companies. Only reputable
private insurance companies duly registered with the (IC), which
Section 8. Documentary Requirement for Repatriation Claim. For
are in existence and operational for at least five (5) years, with a
repatriation under subparagraph (d) of Section 2 of this Rule , a
net worth of at least Five Hundred Million Pesos
certification which states the reason/s for the termination of the
(Php500,000,000.00) to be determined by the IC, and with a
migrant worker's employment and the need for his/her
current year certificate of authority shall be qualified to provide
repatriation shall be issued by the Philippine foreign post or the
for the worker's insurance coverage. Insurance companies who
Philippine Overseas Labor Office (POLO) located in the receiving
have directors, partners, officers, employees or agents with
country. Such certification shall be solely for the purpose of
relatives, within the fourth civil degree of consanguinity or
complying with this section.
affinity, who work or have interest in any of the licensed
recruitment/manning agencies or in any of the government
agencies involved in the overseas employment program shall be Section 9. Documentary Requirements for Subsistence Allowance
disqualified from providing this workers' insurance coverage. It Benefit Claim. For subsistence allowance benefit under sub-
shall be the duty of the said directors, partners, officers, paragraph (e) of Section 2 of this Rule, the concerned Labor
employees or agents to disclose any such interest to the IC and Attaché or, in his absence, the embassy or consular official shall
POEA. issue a certification which states the name of the case, the names
of the parties and the nature of the cause of action of the migrant
worker.
Section 5. Requirement for Issuance of OEC. The
recruitment/manning agency shall have the right to choose from
any of the qualified insurance providers the company that will Section 10. Settlement of Money Claims. For the payment of
insure the migrant worker it will deploy. After procuring such money claims under sub-paragraph (f) of Section 2 of this Rule,
insurance policy, the recruitment/manning agency shall provide the following rules shall govern:
an authenticated copy thereof to the migrant worker. It shall then
submit the certificate of insurance coverage of the migrant worker
to POEA as a requirement for the issuance of Overseas (1) After a decision has become final and executory or a
Employment Certificate (OEC) to the migrant worker. In the case settlement/compromise agreement has been reached
of seafarers who are insured under policies issued by foreign between the parties at the NLRC, the Labor Arbiter shall,
insurance companies, the POEA shall accept certificates or other motu proprio or upon motion, and following the conduct
proofs of cover from recruitment/manning agencies: Provided, of pre-execution conference, issue a writ of execution
that the minimum coverage under sub-paragraphs (a) to (i) are mandating the respondent recruitment/manning agency
included therein. For this purpose, foreign insurance companies to pay the amount adjudged or agreed upon within
shall include entities providing indemnity cover to the vessel. thirty (30) days from receipt thereof;

Section 6. Notice of Claim. Any person having a claim upon the (2) The recruitment/manning agency shall then
policy issued pursuant to subparagraphs (a), (b), (c), (d) and (e) immediately file a notice of claim with its insurance
of Section 2 of this Rule shall present to the insurance company provider for the amount of liability insured, attaching
concerned a written notice of claim together with pertinent therewith a copy of the decision or compromise
supporting documents. The insurance company shall forthwith agreement;
ascertain the truth and extent of the claim and make payment
within ten (10) days from the filing of the notice of claim. (3) Within ten (10) days from the filing of notice of
claim, the insurance company shall make payment to
the recruitment/manning agency the amount adjudged
70
 or agreed upon, or the amount of liability insured, Section 15. Formulation of Implementing Rules and
whichever is lower. After receiving the insurance Regulations. Within thirty (30) days from the effectivity of these
payment, the recruitment/manning agency shall Rules, and pursuant to Section 37-A of the Act, the IC, as the lead
immediately pay the migrant worker's claim in full, agency, shall, together with DOLE, NLRC, and POEA, in
taking into account that in case the amount of insurance consultation with the recruitment/manning agencies and
coverage is insufficient to satisfy the amount adjudged legitimate non-government organizations advocating the rights
or agreed upon, it is liable to pay the balance thereof; and welfare of OFWs, issue the necessary implementing rules and
regulations, which shall include the following:
(4) In case the insurance company fails to make
payment within ten (10) days from the filing of the 1. Qualifications of participating insurers;
claim, the recruitment/manning agency shall pay the
amount adjudged or agreed upon within the remaining
2. Accreditation of insurers;
days of the thirty-day period, as provided in the first
sub-paragraph hereof;
3. Uniform Standard Policy format;
(5) If the worker's claim was not settled within the
aforesaid thirty-day period, the recruitment/manning 4. Premium rate;
agency's performance bond or escrow deposit shall be
forthwith garnished to satisfy the migrant worker's
claim; 5. Benefits;

(6) The provision of compulsory worker's insurance 6. Underwriting Guidelines;

under this section shall not affect the joint and several
liability of the foreign employer and the 7. Claims procedure;
recruitment/manning agency under Section 10 of the
Act;
8. Dispute settlement;

(7) Lawyers for the insurance companies, unless the

latter are impleaded, shall be prohibited to appear 9. Administrative monitoring and supervision; and
before the NLRC in money claims cases under Rule VII.
10. Other matters deemed necessary.
Section 11. Disputes in the Enforcement of Insurance
Claims. Any question or dispute in the enforcement of any Within five (5) days from effectivity of these Rules, the IC shall
insurance policy issued under this Rule shall be brought before the convene the inter-agency committee to commence the
IC for mediation or adjudication. formulation of the aforesaid necessary rules and regulations.

Notwithstanding the preceding paragraph, the NLRC shall have Section 16. Assessment of Performance of Insurance
the exclusive jurisdiction to enforce against the Providers. At the end of every year, the DOLE and the IC shall
recruitment/manning agency its decision, resolution or order, that jointly make an assessment of the performance of all insurance
has become final and executory or a settlement/compromise providers, based upon the report of NLRC and POEA on their
agreement reached between the parties. respective interactions and experiences with the insurance
companies, and they shall have the authority to ban or blacklist
Section 12. Liability of Recruitment/Manning Agency. In case it is such insurance companies which are known to be evasive or not
shown by substantial evidence before the POEA that the migrant responsive to the legitimate claims of migrant workers. The DOLE
worker who was deployed by a licensed recruitment/manning shall include such assessment in its year-end report to Congress.
agency has paid for the premium or the cost of the insurance
coverage or that the said insurance coverage was used as basis Section 17. Automatic Review. The foregoing provisions on
by the recruitment/manning agency to claim any additional fee mandatory insurance coverage shall be subject to automatic
from the migrant worker, the said licensed recruitment/manning review through the Congressional Oversight Committee
agency shall lose its license and all its directors, partners, immediately after three (3) years from the effectivity of the Act in
proprietors, officers and employees shall be perpetually order to determine its efficacy in favor of the covered OFWS and
disqualified from engaging in the business of recruitment of the compliance by recruitment/manning agencies and insurance
overseas workers. Such penalty is without prejudice to any other companies, without prejudice to an earlier review if necessary and
liability which such persons may have incurred under existing warranted for the purpose of modifying, amending and/or
laws, rules or regulations. repealing these subject provisions.

Section 13. Foreign Employers Guarantee Fund. For migrant RULE XVII

workers recruited by the POEA on a government-to-government MISCELLANEOUS PROVISIONS
arrangement, the POEA Foreign Employers Guarantee Fund
referred to under Section 5, Rule X of these Rules shall be
answerable for the workers' monetary claims arising from breach Section 1. POEA, OWWA, and other Boards. Notwithstanding any
of contractual obligations. provision of law to the contrary, the respective boards of the
POEA and the OWWA shall have three (3) members each who
shall come from the women, sea-based and land-based sectors
Section 14. Optional Coverage. For migrant workers classified as respectively, to be selected and nominated openly by the general
rehires, name hires or direct hires, they may opt to be covered by membership of the sector being represented.
this insurance coverage by requesting their foreign employers to
pay for the cost of the insurance coverage or they may pay for
the premium themselves. To protect the rights of these workers, The selection and nomination of the additional members from the
the DOLE and POEA shall provide them adequate legal assistance, women, sea-based and land-based sectors shall be governed by
including conciliation and mediation services, whether at home or the following guidelines:
abroad.

71
 (a) The POEA and OWWA shall launch a massive Section 2. Report to Congress. In order to inform the Philippine
information campaign on the selection of nominees and Congress on the implementation of the policy enunciated in
provide for a system of consultative sessions for the Section 4 of the Act, the DFA and the DOLE shall submit
certified leaders or representatives of the concerned separately to the said body a semi-annual report of Philippine
sectors, at least three (3) times, within ninety days (90) foreign posts located in, or exercising consular jurisdiction over,
before the Boards shall be convened, for purposes of countries receiving Filipino migrant workers. The mid-year report
selection. The process shall be open, democratic and covering the period January to June shall be submitted not later
transparent. than October 31 of the same year while the year-end report
covering the period July to December shall be submitted not later
than May 31 of the following year. The report shall include, but
(b) Only non-government organizations that protect and
shall not be limited to, the following information:
promote the rights and welfare of overseas Filipino
workers, duly registered with the appropriate Philippine
government agency and in good standing as such, and (a) Master list of Filipino migrant workers, and inventory
in existence for at least three (3) years prior to the of pending cases involving them and other Filipino
nomination shall be qualified to nominate a nationals including those serving prison terms;
representative for each sector to the Board;
(b) Working conditions of Filipino migrant workers;
(c) The nominee must be at least 25 years of age, able
to read and write, and a migrant worker at the time of
(c) Problems encountered by the migrant workers,
his/her nomination or was a migrant worker with at least
specifically violations of their rights;
three (3) years experience as such;

(d) Initiatives/actions taken by the Philippine foreign

(d) A Selection and Screening Committee shall be
posts to address the problems of Filipino migrant
established within the POEA and OWWA by the Secretary
workers;
of Labor and Employment to formulate the procedures
on application, screening and consultation, and shall be
responsible to provide the list of qualified nominees to (e) Changes in the laws and policies of host countries;
the respective Governing Boards; and and

(e) The final list of all the nominees selected by the (f) Status of negotiations on bilateral labor agreements
OWWA/POEA Governing Boards, which shall consist of between the Philippines and the receiving country.
three (3) names for each sector to be represented, shall
be submitted to the President and published in a
newspaper of general circulation. Section 3. Effect on Failure to Report. Any officer of the
government who has the legal duty to report, yet fails to submit
the aforesaid Report to Congress, without justifiable cause, shall
Incumbent representatives appointed pursuant to this section and be subject to an administrative penalty of dismissal from the
who are eligible for re-appointment shall be automatically service with disqualification to hold any appointive public officer
included in the list referred to under subsection (d). for five (5) years.

Within thirty (30) days from the submission of the final list Section 4. Government Fees, Administrative Costs and Taxes. All
referred to under subsection (e), the President shall select and fees for services being charged by any government agency on
appoint from the list the representatives to the POEA/OWWA migrant workers prevailing at the time of the effectivity of this
Governing Boards. Rule shall not be increased. All other services rendered by the
DOLE and other government agencies in connection with the
recruitment and placement of and assistance to migrant workers
The members shall have a term of three (3) years and shall be
shall be rendered free. The administrative cost thereof shall not
eligible for reappointment for another three (3) years. In case of
be borne by the worker.
vacancy, the President shall, in accordance with the provisions of
the Act, appoint a replacement who shall serve the unexpired
term of his/her predecessor. The migrant worker shall be exempt from the payment of travel
tax and airport fee upon proper showing of the Overseas
Employment Certificate (OEA) issued by the POEA.
All other government agencies and government-owned or
controlled corporations which require at least one (1)
representative from the overseas workers sector to their The remittances of all OFWs, upon showing of the OEC or valid
respective boards shall follow all the applicable provisions of this OWWA Membership Certificate by the OFW beneficiary or
section, subject to the respective Charters, Implementing Rules recipient, shall be exempt from the payment of documentary
and Regulations, and internal policies of such agencies and stamp tax (DST) as imposed under Section 181 of the National
corporations. Internal Revenue Code, as amended.

The existing members of the Governing Boards of POEA and In addition to the original copy, a duplicate copy or a certified true
OWWA representing the women, land-based, or sea-based sectors copy of the valid proof of entitlement referred to above shall be
shall serve the remaining portion of their three-year terms. secured by the OFW from the POEA or OWWA, which shall be held
Thereafter, their positions shall be deemed vacant, and the and used by his/her beneficiary in the availment of the DST
process of selection of their replacement shall be in accordance exemption.
with this section. If the incumbent is eligible for re-appointment,
he/she shall continue to serve until re-appointed or another
person is appointed in accordance with this section. In case of OFWs whose remittances are sent through the banking
system, credited to beneficiaries or recipient's account in the
Philippines and withdrawn through an automatic teller machine
Incumbent representatives in the Governing Board with no fixed (ATM), it shall be the responsibility of the OFW to show the valid
term shall remain in holdover capacity, until a replacement is proof of entitlement when making arrangement that for his/her
appointed in accordance with this section. remittance transfers.

72
A proof of entitlement that is no longer valid shall not entitle an Section 1. Applicability of Criteria for Receiving Countries. In
OFW to DST payment exemption. compliance with Section 4 of the Act, the DFA shall, within 90
days from effectivity of these Rules and Regulations, issue the
certification for countries where the Philippines maintains an
The Bureau of Internal Revenue (BIR), under the Department of
embassy.
Finance, may promulgate revenue regulations deemed to be
necessary and appropriate for the effective implementation of the
exemption of OFWs from DST and travel tax. In countries where the Philippine Embassy exercises concurrent
jurisdiction and where the Ambassador is non-resident, the DFA
shall have one hundred twenty days (120) from the effectivity of
Section 5. Establishment of the Congressional Migrant Workers
these Rules to issue the certification required in Section 4 of the
Scholarship Fund.
Act. Prior to the expiration of the aforesaid period, the secretary
of Foreign Affairs, in consultation with the Secretary of Labor and
There is hereby created a Congressional Migrant Workers Employment, shall allow the reasonable extension of the period
Scholarship Fund which shall benefit deserving migrant workers for the issuance of the certification upon a determination that
and/or their immediate descendants who intend to pursue courses there is a need therefor.
or training primarily in the field of science and technology, as
defined by the DOST.
Pending the issuance of the required certifications of compliance
or determinations of non-compliance and within the periods
The fund of One Hundred Fifty Million Pesos (P150,000,000.00) mentioned in the preceding paragraphs, the deployment of
shall be sourced from the proceeds of Lotto draws. migrant workers overseas shall proceed on a status quo basis.

Section 6. Creation of the Scholarship Fund Committee. There is For purposes of issuance of the certifications, the DFA shall, in
hereby created a Scholarship Fund Committee to be composed of consultation with the POEA, issue a standard format to be
representatives from the DOLE, DOST, POEA, OWWA, TESDA and accomplished by all Foreign Service posts.
two (2) representatives of migrant workers to be appointed by the
Secretary of Labor and Employment.
Section 2. Effectivity of Compulsory Insurance Requirement. All
OFWs who were issued Overseas Employment Certificates prior to
Section 7. Functions of the Scholarship Fund Committee. the effectivity of the necessary rules and regulations referred to
under Section 15 of Rule XVI shall not be covered by the
compulsory insurance requirement.
(a) To set the coverage, criteria and standards of
admission to the Scholarship Program;

(b) To determine the amount of availment;

(c) To monitor and evaluate the program;

(d) To identify/accredit training and testing institutions;

and

(e) To perform such other functions necessary to attain

the purpose of the Fund.

Section 8. Implementing Agency. The OWWA shall be the

Secretariat of the Scholarship Fund Committee. As such, it shall
administer the Scholarship Program, in coordination with the
DOST.

RULE XVIII
FUNDING

Section 1. Sources of Funds. The departments, agencies,

instrumentalities, bureaus, offices and government-owned and
controlled corporations charged with carrying out the provisions of
the Act shall include in their respective programs the
implementation of the Act, the funding of which shall be included
in the General Appropriations Act.

RULE XIX PD 1613

MIGRANT WORKERS DAY
AMENDING THE LAW ON ARSON
Section 1. Commemoration. The DOLE shall lead and enlist the
cooperation of other government agencies in the commemoration
of a Migrant Workers Day on 7 June of every year. WHEREAS, findings of the police and intelligence agencies of the
government reveal that fires and other crimes involving
destruction in Metro Manila and other urban centers in the country
RULE XX are being perpetrated by criminal syndicates, some of which have
TRANSITORY PROVISIONS foreign connections;

73
WHEREAS, the current law on arson suffers from certain 4. Any rice mill, sugar mill, cane mill or mill central; and
inadequacies that impede the successful enforcement and
prosecution of arsonists;
5. Any railway or bus station, airport, wharf or
warehouse.
WHEREAS, it is imperative that the high incidence of fires and
other crimes involving destruction be prevented to protect the
Section 4. Special Aggravating Circumstances in Arson. The
national economy and preserve the social, economic and political
penalty in any case of arson shall be imposed in its maximum
stability of the country;
period;

NOW, THEREFORE, I, FERDINAND E. MARCOS, President of the

1. If committed with intent to gain;
Philippines, by virtue of the powers vested in me by the
Constitution, do hereby order and decree as part of the law of the
land, the following: 2. If committed for the benefit of another;

Section 1. Arson. Any person who burns or sets fire to the 3. If the offender is motivated by spite or hatred
property of another shall be punished by Prision Mayor. towards the owner or occupant of the property burned;

The same penalty shall be imposed when a person sets fire to his 4. If committed by a syndicate.
own property under circumstances which expose to danger the life
or property of another.
The offense is committed by a syndicate if its is planned or carried
out by a group of three (3) or more persons.
Section 2. Destructive Arson. The penalty of Reclusion Temporal
in its maximum period to Reclusion Perpetua shall be imposed if
the property burned is any of the following: Section 5. Where Death Results from Arson. If by reason of or on
the occasion of the arson death results, the penalty of Reclusion
Perpetua to death shall be imposed.
1. Any ammunition factory and other establishment
where explosives, inflammable or combustible materials
are stored. Section 6. Prima Facie evidence of Arson. Any of the following
circumstances shall constitute prima facie evidence of arson:

2. Any archive, museum, whether public or private, or

any edifice devoted to culture, education or social 1. If the fire started simultaneously in more than one
services. part of the building or establishment.

3. Any church or place of worship or other building 2. If substantial amount of flammable substances or
where people usually assemble. materials are stored within the building note necessary
in the business of the offender nor for household us.

4. Any train, airplane or any aircraft, vessel or

watercraft, or conveyance for transportation of persons 3. If gasoline, kerosene, petroleum or other flammable
or property or combustible substances or materials soaked therewith
or containers thereof, or any mechanical, electrical,
chemical, or electronic contrivance designed to start a
4. Any building where evidence is kept for use in any fire, or ashes or traces of any of the foregoing are found
legislative, judicial, administrative or other official in the ruins or premises of the burned building or
proceedings. property.

5. Any hospital, hotel, dormitory, lodging house, housing 4. If the building or property is insured for substantially
tenement, shopping center, public or private market, more than its actual value at the time of the issuance of
theater or movie house or any similar place or building. the policy.

6. Any building, whether used as a dwelling or not, 4. If during the lifetime of the corresponding fire
situated in a populated or congested area. insurance policy more than two fires have occurred in
the same or other premises owned or under the control
of the offender and/or insured.
Section 3. Other Cases of Arson. The penalty of Reclusion
Temporal to Reclusion Perpetua shall be imposed if the property
burned is any of the following: 5. If shortly before the fire, a substantial portion of the
effects insured and stored in a building or property had
been withdrawn from the premises except in the
1. Any building used as offices of the government or any
ordinary course of business.
of its agencies;

6. If a demand for money or other valuable

2. Any inhabited house or dwelling;
consideration was made before the fire in exchange for
the desistance of the offender or for the safety of the
3. Any industrial establishment, shipyard, oil well or person or property of the victim.
mine shaft, platform or tunnel;
Section 7. Conspiracy to commit Arson. Conspiracy to commit
4. Any plantation, farm, pastureland, growing crop, arson shall be punished by Prision Mayor in its minimum period.
grain field, orchard, bamboo grove or forest;

74
Section 8. Confiscation of Object of Arson. The building which is the burning merely constitutes an overt act in the commission or
the object of arson including the land on which it is situated shall another violation of law.
be confiscated and escheated to the State, unless the owner
thereof can prove that he has no participation in nor knowledge of
The penalty of reclusion temporal in its maximum period to death
such arson despite the exercise of due diligence on his part.
shall also be imposed upon any person who shall burn:

PRESIDENTIAL DECREE No. 1744

(a) Any arsenal, shipyard, storehouse or military powder
or fireworks factory, ordinance storehouse, archives or
AMENDING ARTICLE THREE HUNDRED AND TWENTY OF general museum of the government.
THE REVISED PENAL CODE PROVISIONS ON ARSON
(b) In an inhabited place, any storehouse or factory of
WHEREAS, there have been rampant and wanton burnings of inflammable or explosive materials.
residential houses, public buildings, markets, hotels, and other
commercial establishments;
If as a consequence of the commission of any of the acts
penalized under this Article, death or injury results, or any
WHEREAS, to effectively discourage and deter the commission of valuable documents, equipment, machineries, apparatus, or other
arson, and to prevent destruction of properties and protect the valuable properties were burned or destroyed, the mandatory
lives of innocent people, it is necessary that the capital penalty of death shall be imposed."
punishment be imposed upon arsonists;
Section 2. Provisions of Articles 320, 321 and 322 of the Revised
NOW, THEREFORE, I, FERDINAND E. MARCOS, President of the Penal Code which are or may be inconsistent herewith are hereby
Philippines, by virtue of the powers vested in me by the repealed.
Constitution, do hereby order and decree that Article 320, Revised
Penal Code be amended:
REPUBLIC ACT NO. 7659

Section 1. Article 320 of the Revised Penal Code shall read as

AN ACT TO IMPOSE THE DEATH PENALTY ON CERTAIN
follows:
HEINOUS CRIMES, AMENDING FOR THAT PURPOSE THE
REVISED PENAL LAWS, AS AMENDED, OTHER SPECIAL
"Article 320 Destructive Arson. The penalty of reclusion temporal PENAL LAWS, AND FOR OTHER PURPOSES
in its maximum period to death shall be imposed upon any person
who shall burn:
WHEREAS, the Constitution, specifically Article III, Section 19
paragraph (1) thereof, states "Excessive fines shall not be
1. One (1) or more buildings or edifices, consequent to imposed nor cruel, degrading or inhuman punishment inflicted.
one single act of burning, or as result of simultaneous Neither shall death penalty be imposed, unless, for compelling
burnings, or committed on several or different reasons involving heinous crimes, the Congress hereafter provides
occasions; for it. . .";

2. Any building of public or private ownership, devoted WHEREAS, the crimes punishable by death under this Act are
to the use of the public in general, or where people heinous for being grievous, odious and hateful offenses and
usually gather or congregated for a definite purpose which, by reason of their inherent or manifest wickedness,
such as but not limited to official governmental function viciousness, atrocity and perversity are repugnant and outrageous
or business, private transaction, commerce, trade, to the common standards and norms of decency and morality in a
worship, meetings and conferences, or merely incidental just, civilized and ordered society;
to a definite purpose such as but not limited to hotels,
motels, transient dwellings, public conveyance or stops
WHEREAS, due to the alarming upsurge of such crimes which has
or terminals, regardless of whether the offender had
resulted not only in the loss of human lives and wanton
knowledge that there are persons in said building or
destruction of property but also affected the nation's efforts
edifice at the time it is set on fire, and regardless also of
towards sustainable economic development and prosperity while
whether the building is actually inhabited or not.
at the same time has undermined the people's faith in the
Government and the latter's ability to maintain peace and order in
3. Any train or locomotive, ship or vessel, airship or the country;
airplane, devoted to transportation or convenience, or
public use, entertainment or leisure.
WHEREAS, the Congress, in the justice, public order and the rule
of law, and the need to rationalize and harmonize the penal
4. Any building, factory, warehouse installation and any sanctions for heinous crimes, finds compelling reasons to impose
appurtenances thereto, which are devoted to the service the death penalty for said crimes;
of public utilities.
Now, therefore,
5. Any building, the burning of which is for the purpose
of concealing or destroying evidence of another violation
Section 1. Declaration of Policy. - It is hereby declared the policy
of law, or for the purpose of concealing bankruptcy or
of the State to foster and ensure not only obedience to its
defrauding creditors or to collect from insurance.
authority, but also to adopt such measures as would effectively
promote the maintenance of peace and order, the protection of
Irrespective of the application of the above enumerated qualifying life, liberty and property, and the promotion of the general
circumstances, the penalty of death shall likewise be imposed welfare which are essential for the enjoyment by all the people of
when the arson is perpetrated or committed by two (2) or more the blessings of democracy in a just and humane society;
persons or by a group of persons, regardless of whether their
purpose is merely to burn or destroy the building or the edifice, or

75
Section 2. Article 114 of the Revised Penal Code, as amended, is "Art. 246. Parricide. - Any person who shall kill his
hereby amended to read as follows: father, mother, or child, whether legitimate of
illegitimate, or any of his ascendants, or descendants, or
his spouse, shall be guilty of parricide and shall be
"Art. 114. Treason. - Any Filipino citizen who levies war
punished by the penalty of reclusion perpetua to death."
against the Philippines or adheres to her enemies giving
them aid or comfort within the Philippines or elsewhere,
shall be punished by reclusion perpetua to death and Section 6. Article 248 of the same Code is hereby amended to
shall pay a fine not to exceed 100,000 pesos." read as follows:

No person shall be convicted of treason unless on the "Art. 248. Murder. - Any person who, not falling within
testimony of two witnesses at least to the same overt the provisions of Article 246 shall kill another, shall be
act or on confession of the accused in open court. guilty of murder and shall be punished by reclusion
perpetua, to death if committed with any of the following
attendant circumstances:
Likewise, an alien, residing in the Philippines, who
commits acts of treason as defined in paragraph 1 of
this Article shall be punished by reclusion temporal to 1. With treachery, taking advantage of superior
death and shall pay a fine not to exceed 100,000 pesos." strength, with the aid of armed men, or
employing means to weaken the defense or of
means or persons to insure or afford impunity.
Section 3. Section Three, Chapter One, Title One of Book Two of
the same Code is hereby amended to read as follows:
2. In consideration of a price, reward or
promise.
"Section Three. - Piracy and mutiny on the high seas or
in the Philippine waters
3. By means of inundation, fire, poison,
explosion, shipwreck, stranding of a vessel,
Art. 122. Piracy in general and mutiny on the high seas
derailment or assault upon a railroad, fall of an
or in Philippine waters. - The penalty of reclusion
airship, or by means of motor vehicles, or with
perpetua shall be inflicted upon any person who, on the
the use of any other means involving great
high seas, or in Philippine waters, shall attack or seize a
waste and ruin.
vessel or, not being a member of its complement nor a
passenger, shall seize the whole or part of the cargo of
said vessel, its equipment or passengers. 4. On occasion of any of the calamities
enumerated in the preceding paragraph, or of
an earthquake, eruption of a volcano,
The same penalty shall be inflicted in case of mutiny on
destructive cyclone, epidemic or other public
the high seas or in Philippine waters."
calamity.

Art. 123. Qualified piracy. - The penalty of reclusion

5. With evident premeditation.
perpetua to death shall be imposed upon those who
commit any of the crimes referred to in the preceding
article, under any of the following circumstances: 6. With cruelty, by deliberately and inhumanly
augmenting the suffering of the victim, or
outraging or scoffing at his person or corpse."
1. Whenever they have seized a vessel by
boarding or firing upon the same;
Section 7. Article 255 of the same Code is hereby amended to
read as follows:
2. Whenever the pirates have abandoned their
victims without means of saving themselves
or; "Art. 255. Infanticide. - The penalty provided for
parricide in Article 246 and for murder in Article 248
shall be imposed upon any person who shall kill any
3. Whenever the crime is accompanied by
child less than three days of age.
murder, homicide, physical injuries or rape."

If any crime penalized in this Article be committed by

Section 4. There shall be incorporated after Article 211 of the
the mother of the child for the purpose of concealing her
same Code a new article to read as follows:
dishonor, she shall suffer the penalty of prision mayor in
its medium and maximum periods, and if said crime be
"Art. 211-A. Qualified Bribery. - If any public officer is committed for the same purpose by the maternal
entrusted with law enforcement and he refrains from grandparents or either of them, the penalty shall be
arresting or prosecuting an offender who has committed reclusion temporal."
a crime punishable by reclusion perpetua and/or death
in consideration of any offer, promise, gift or present, he
Section 8. Article 267 of the same Code is hereby amended to
shall suffer the penalty for the offense which was not
read as follows:
prosecuted.

"Art. 267. Kidnapping and serious illegal detention. -

If it is the public officer who asks or demands such gift
Any private individual who shall kidnap or detain
or present, he shall suffer the penalty of death."
another, or in any other manner deprive him of his
liberty, shall suffer the penalty of reclusion perpetua to
Section 5. The penalty of death for parricide under Article 246 of death:
the same Code is hereby restored, so that it shall read as follows:

76
 1. If the kidnapping or detention shall have Section 10. Article 320 of the same Code is hereby amended to
lasted more than three days. read as follows:

2. If it shall have been committed simulating "Art. 320. Destructive Arson. - The penalty of reclusion
public authority. perpetua to death shall be imposed upon any person
who shall burn:
3. If any serious physical injuries shall have
been inflicted upon the person kidnapped or 1. One (1) or more buildings or edifices,
detained; or if threats to kill him shall have consequent to one single act of burning, or as
been made. a result of simultaneous burnings, committed
on several or different occasions.
4. If the person kidnapped or detained shall be
a minor, except when the accused is any of the 2. Any building of public or private ownership,
parents, female or a public officer. devoted to the public in general or where
people usually gather or congregate for a
definite purpose such as, but not limited to,
The penalty shall be death penalty where the kidnapping
official governmental function or business,
or detention was committed for the purpose of extorting
private transaction, commerce, trade,
ransom from the victim or any other person, even if
workshop, meetings and conferences, or
none of the circumstances above-mentioned were
merely incidental to a definite purpose such as
present in the commission of the offense.
but not limited to hotels, motels, transient
dwellings, public conveyances or stops or
When the victim is killed or dies as a consequence of the terminals, regardless of whether the offender
detention or is raped, or is subjected to torture or had knowledge that there are persons in said
dehumanizing acts, the maximum penalty shall be building or edifice at the time it is set on fire
imposed." and regardless also of whether the building is
actually inhabited or not.
Section 9. Article 294 of the same Code is hereby amended to
read as follows: 3. Any train or locomotive, ship or vessel,
airship or airplane, devoted to transportation
or conveyance, or for public use, entertainment
"Art. 294. Robbery with violence against or intimidation or leisure.
of persons - Penalties. - Any person guilty of robbery
with the use of violence against or intimidation of any
person shall suffer: 4. Any building, factory, warehouse installation
and any appurtenances thereto, which are
devoted to the service of public utilities.
1. The penalty of reclusion perpetua to death,
when by reason or on occasion of the robbery,
the crime of homicide shall have been 5. Any building the burning of which is for the
committed, or when the robbery shall have purpose of concealing or destroying evidence
been accompanied by rape or intentional of another violation of law, or for the purpose
mutilation or arson. of concealing bankruptcy or defrauding
creditors or to collect from insurance.
2. The penalty of reclusion temporal in its
medium period to reclusion perpetua, when or Irrespective of the application of the above enumerated
if by reason or on occasion of such robbery, qualifying circumstances, the penalty of reclusion
any of the physical injuries penalized in perpetua to death shall likewise be imposed when the
subdivision I of Article 263 shall have been arson is perpetrated or committed by two (2) or more
inflicted. persons or by a group of persons, regardless of whether
their purpose is merely to burn or destroy the building
or the burning merely constitutes an overt act in the
3. The penalty of reclusion temporal, when by commission or another violation of law.
reason or on occasion of the robbery, any of
the physical injuries penalized in subdivision 2
of the article mentioned in the next preceding The penalty of reclusion perpetua to death shall also be
paragraph, shall have been inflicted. imposed upon any person who shall burn:

4. The penalty of prision mayor in its maximum 1. Any arsenal, shipyard, storehouse or
period to reclusion temporal in its medium military powder or fireworks factory, ordnance,
period, if the violence or intimidation employed storehouse, archives or general museum of the
in the commission of the robbery shall have Government.
been carried to a degree clearly unnecessary
for the commission of the crime, or when in
2. In an inhabited place, any storehouse or
the course of its execution, the offender shall
factory of inflammable or explosive materials.
have inflicted upon any person not responsible
for its commission any of the physical injuries
covered by subdivisions 3 and 4 of said Article If as a consequence of the commission of any
263. of the acts penalized under this Article, death
results, the mandatory penalty of death shall
be imposed."
5. The penalty of prision correccional in its
maximum period to prision mayor in its
medium period in other cases." Section 11. Article 335 of the same Code is hereby amended to
read as follows:
77
 "Art. 335. When and how rape is committed. - Rape is "Sec. 2. Definition of the Crime of Plunder; Penalties. -
committed by having carnal knowledge of a woman Any public officer who, by himself or in connivance with
under any of the following circumstances: members of his family, relatives by affinity or
consanguinity, business associates, subordinates or
other persons, amasses, accumulates or acquires ill-
1. By using force or intimidation;
gotten wealth through a combination or series of overt
criminal acts as described in Section 1 (d) hereof in the
2. When the woman is deprived of reason or aggregate amount or total value of at least Fifty million
otherwise unconscious; and pesos (P50,000,000.00) shall be guilty of the crime of
plunder and shall be punished by reclusion perpetua to
death. Any person who participated with the said public
3. When the woman is under twelve years of officer in the commission of an offense contributing to
age or is demented. the crime of plunder shall likewise be punished for such
offense. In the imposition of penalties, the degree of
The crime of rape shall be punished by reclusion participation and the attendance of mitigating and
perpetua. extenuating circumstances, as provided by the Revised
Penal Code, shall be considered by the court. The court
shall declare any and all ill-gotten wealth and their
Whenever the crime of rape is committed with the use of interests and other incomes and assets including the
a deadly weapon or by two or more persons, the penalty properties and shares of stocks derived from the deposit
shall be reclusion perpetua to death. or investment thereof forfeited in favor of the State."

When by reason or on the occasion of the rape, the Section 13. Sections 3, 4, 5, 7, 8 and 9, of Article II of Republic
victim has become insane, the penalty shall be death. Act No. 6425, as amended, known as the Dangerous Drugs Act
1972, are hereby amended to read as follows:
When the rape is attempted or frustrated and a homicide
is committed by reason or on the occasion thereof, the "Sec. 3. Importation of Prohibited Drugs. - The penalty
penalty shall be reclusion perpetua to death. of reclusion perpetua to death and a fine ranging from
five hundred thousand pesos to ten million pesos shall
When by reason or on the occasion of the rape, a be imposed upon any person who, unless authorized by
homicide is committed, the penalty shall be death. law, shall import or bring into the Philippines any
prohibited drug.

The death penalty shall also be imposed if the crime of

rape is committed with any of the following attendant "Sec. 4. Sale, Administration, Delivery, Distribution and
circumstances: Transportation of Prohibited Drugs. - The penalty of
reclusion perpetua to death and a fine from five hundred
thousand pesos to ten million pesos shall be imposed
1. when the victim is under eighteen (18) upon any person who, unless authorized by law, shall
years of age and the offender is a parent, sell, administer, deliver, give away to another,
ascendant, step-parent, guardian, relative by distribute, dispatch in transit or transport any prohibited
consanguinity or affinity within the third civil drug, or shall act as a broker in any of such
degree, or the common-law-spouse of the transactions.
parent of the victim.

Notwithstanding the provisions of Section 20 of this Act

2. when the victim is under the custody of the to the contrary, if the victim of the offense is a minor, or
police or military authorities. should a prohibited drug involved in any offense under
this Section be the proximate cause of the death of a
3. when the rape is committed in full view of victim thereof, the maximum penalty herein provided
the husband, parent, any of the children or shall be imposed.
other relatives within the third degree of
consanguinity. "Sec. 5. Maintenance of a Den, Dive or Resort for
Prohibited Drug Users. - The penalty of reclusion
4. when the victim is a religious or a child perpetua to death and a fine ranging from five hundred
below seven (7) years old. thousand pesos to ten million pesos shall be imposed
upon any person or group of persons who shall maintain
a den, dive or resort where any prohibited drug is used
5. when the offender knows that he is afflicted in any form or where such prohibited drugs in quantities
with Acquired Immune Deficiency Syndrome specified in Section 20, Paragraph 1 of this Act are
(AIDS) disease. found.

6. when committed by any member of the Notwithstanding the provisions of Section 20 of this Act
Armed Forces of the Philippines or the to the contrary, the maximum of the penalty shall be
Philippine National Police or any law imposed in every case where a prohibited drug is
enforcement agency. administered, delivered or sold to a minor who is
allowed to use the same in such place.
7. when by reason or on the occasion of the
rape, the victim has suffered permanent Should a prohibited drug be the proximate cause of the
physical mutilation." death of a person using the same in such den, dive or
resort, the maximum penalty herein provided shall be
Section 12. Section 2 of Republic Act No. 7080 (An Act Defining imposed on the maintainer notwithstanding the
and Penalizing the Crime of Plunder) is hereby amended to read provisions of Section 20 of this Act to the contrary.
as follows:
78
 "Sec. 7. Manufacture of Prohibited Drug. - The penalty of "Sec. 15-a. Maintenance of a den, dive or resort for
reclusion perpetua to death and fine ranging from five regulated drug users. - The penalty of reclusion
hundred thousand pesos to ten million pesos shall be perpetua to death and a fine ranging from five hundred
imposed upon any person who, unless authorized by thousand pesos to ten million pesos shall be imposed
law, shall engage in the manufacture of any prohibited upon any person or group of persons who shall maintain
drug. a den, dive or resort where any regulated drugs is used
in any form, or where such regulated drugs in quantities
specified in Section 20, paragraph 1 of this Act are
"Sec. 8. Possession or Use of Prohibited Drugs. - The
found.
penalty of reclusion perpetua to death and a fine ranging
from five hundred thousand pesos to ten million pesos
shall be imposed upon any person who, unless Notwithstanding the provisions of Section 20 of this Act
authorized by law, shall possess or use any prohibited to the contrary, the maximum penalty herein provided
drug subject to the provisions of Section 20 hereof. shall be imposed in every case where a regulated drug is
administered, delivered or sold to a minor who is
allowed to use the same in such place.
"Sec. 9. Cultivation of Plants which are Sources of
Prohibited Drugs. - The penalty of reclusion perpetua to
death and a fine ranging from five hundred thousand Should a regulated drug be the proximate cause of the
pesos to ten million pesos shall be imposed upon any death of a person using the same in such den, dive or
person who shall plant, cultivate or culture any medium resort, the maximum penalty herein provided shall be
Indian hemp, opium poppy (papaver somniferum), or imposed on the maintainer notwithstanding the
any other plant which is or may hereafter be classified provisions of Section 20 of this Act to the contrary."
as dangerous drug or from which any dangerous drug
may be manufactured or derived.
Section 16. Section 16 of Article III of Republic Act No. 6425, as
amended, known as the Dangerous Drugs Act of 1972, is
The land or portions hereof, and/or greenhouses on amended to read as follows:
which any of said plants is cultivated or cultured shall be
confiscated and escheated to the State, unless the
"Sec. 16. Possession or Use of Regulated Drugs. - The
owner thereof can prove that he did not know such
penalty of reclusion perpetua to death and a fine ranging
cultivation or culture despite the exercise of due
from five hundred thousand pesos to ten million pesos
diligence on his part.
shall be imposed upon any person who shall possess or
use any regulated drug without the corresponding
If the land involved in is part of the public domain, the license or prescription, subject to the provisions of
maximum of the penalties herein provided shall be Section 20 hereof."
imposed upon the offender."
Section 17. Section 20, Article IV of Republic Act No.
Section 14. Sections 14, 14-A, and 15 of Article III of Republic 6425, as amended, known as the Dangerous Drugs Act
Act No. 6425, as amended, known as the Dangerous Drugs Act of of 1972, is hereby amended to read as follows:
1972, are hereby amended to read as follows:
Sec. 20. Application of Penalties, Confiscation and
"Sec. 14. Importation of Regulated Drugs. - The penalty Forfeiture of the Proceeds or Instruments of the Crime. -
of reclusion perpetua to death and a fine ranging from The penalties for offenses under Section 3, 4, 7, 8 and 9
five hundred thousand pesos to ten million pesos shall of Article II and Sections 14, 14-A, 15 and 16 of Article
be imposed upon any person who, unless authorized by III of this Act shall be applied if the dangerous drugs
law, shall import or bring any regulated drug in the involved is in any of the following quantities :
Philippines.
1. 40 grams or more of opium;
"Sec. 14-A. Manufacture of Regulated Drugs. - The
penalty of reclusion perpetua to death and a fine ranging
2. 40 grams or more of morphine;
from five hundred thousand pesos to ten million pesos
shall be imposed upon any person who, unless
authorized by law, shall engage in the manufacture of 3. 200 grams or more of shabu or
any regulated drug. methylamphetamine hydrochloride;

"Sec. 15. Sale, Administration, Dispensation, Delivery, 4. 40 grams or more of heroin;

Transportation and Distribution of Regulated Drugs. -
The penalty of reclusion perpetua to death and a fine
ranging from five hundred thousand pesos to ten million 5. 750 grams or more of indian hemp or
pesos shall be imposed upon any person who, unless marijuana;
authorized by law, shall sell, dispense, deliver, transport
or distribute any regulated drug. 6. 50 grams or more of marijuana resin or
marijuana resin oil;
Notwithstanding the provisions of Section 20 of this Act
to the contrary, if the victim of the offense is a minor, or 7. 40 grams or more of cocaine or cocaine
should a regulated drug involved in any offense under hydrochloride; or
this Section be the proximate cause of the death of a
victim thereof, the maximum penalty herein provided
shall be imposed." 8. In the case of other dangerous drugs, the
quantity of which is far beyond therapeutic
requirements, as determined and promulgated
Section 15. There shall be incorporated after Section 15 of by the Dangerous Drugs Board, after public
Article III of Republic Act No. 6425, as amended, known as the
Dangerous Drug Act of 1972, a new section to read as follows:
79
 consultations/hearings conducted for the "Sec. 14. Penalty for Carnapping. - Any person who is
purpose. found guilty of carnapping, as this term is defined in
Section Two of this Act, shall, irrespective of the value of
motor vehicle taken, be punished by imprisonment for
Otherwise, if the quantity involved is less than the
not less than fourteen years and eight months and not
foregoing quantities, the penalty shall range from prision
more than seventeen years and four months, when the
correccional to reclusion perpetua depending upon the
carnapping is committed without violence or intimidation
quantity.
of persons, or force upon things; and by imprisonment
for not less than seventeen years and four months and
Every penalty imposed for the unlawful importation, not more than thirty years, when the carnapping is
sale, administration, delivery, transportation or committed by means of violence against or intimidation
manufacture of dangerous drugs, the cultivation of of any person, or force upon things; and the penalty of
plants which are sources of dangerous drugs and the reclusion perpetua to death shall be imposed when the
possession of any opium pipe and other paraphernalia owner, driver or occupant of the carnapped motor
for dangerous drugs shall carry with it the confiscation vehicle is killed or raped in the course of the commission
and forfeiture, in favor of the Government, of all the of the carnapping or on the occasion thereof."
proceeds of the crime including but not limited to money
and other obtained thereby and the instruments or tools
Section 21. Article 27 of the Revised Penal Code, as amended, is
with which it was committed, unless they are the
hereby amended to read as follows:
property of a third person not liable for the offense, but
those which are not of lawful commerce shall be ordered
destroyed without delay. Dangerous drugs and plant "Art. 27. Reclusion perpetua. - The penalty of reclusion
sources of such drugs as well as the proceeds or perpetua shall be from twenty years and one day to
instruments of the crime so confiscated and forfeited in forty years.
favor of the Government shall be turned over to the
Board for proper disposal without delay.
Reclusion temporal. - The penalty of reclusion temporal
shall be from twelve years and one day to twenty years.
Any apprehending or arresting officer who
misappropriates or misapplies or fails to account for
Prision mayor and temporary disqualification. - The
seized or confiscated dangerous drugs or plant-sources
duration of the penalties of prision mayor and temporary
of dangerous drugs or proceeds or instruments of the
disqualification shall be from six years and one day to
crime as are herein defined shall after conviction be
twelve years, except when the penalty of disqualification
punished by the penalty of reclusion perpetua to death
is imposed as an accessory penalty, in which case, it
and a fine ranging from five hundred thousand pesos to
shall be that of the principal penalty.
ten million pesos."

Prision correccional, suspension, and destierro. - The

Section 18. There shall be incorporated after Section 20 of
duration of the penalties of prision correccional,
Republic Act No. 6425, as amended, known as the Dangerous
suspension, and destierro shall be from six months and
Drugs Act of 1972, a new section to read as follows:
one day to six years, except when the suspension is
imposed as an accessory penalty, in which case, its
"Sec. 20-A. Plea-bargaining Provisions. - Any person duration shall be that of the principal penalty.
charged under any provision of this Act where the
imposable penalty is reclusion perpetua to death shall
Arresto mayor. - The duration of the penalty of arresto
not be allowed to avail of the provision on plea
mayor shall be from one month and one day to six
bargaining."
months.

Section 19. Section 24 of Republic Act No. 6425, as amended,

Arresto menor. - The duration of the penalty of arresto
known as the Dangerous Drugs Act of 1972, is hereby amended
menor shall be from one day to thirty days.
to read as follows :

Bond to keep the peace. - The bond to keep the peace

"Sec. 24. Penalties for Government Official and
shall be required to cover such period of time as the
Employees and Officers and Members of Police Agencies
court may determine."
and the Armed Forces, 'Planting' of Evidence. - The
maximum penalties provided for Section 3, 4(1), 5(1),
6, 7, 8, 9, 11, 12 and 13 of Article II and Sections 14, Section 22. Article 47 of the same Code is hereby amended to
14-A, 15(1), 16 and 19 of Article III shall be imposed, if read as follows:
those found guilty of any of the said offenses are
government officials, employees or officers, including
members of police agencies and the armed forces. Art. 47. In what cases the death penalty shall not be
imposed; Automatic review of the Death Penalty Cases.
- The death penalty shall be imposed in all cases in
Any such above government official, employee or officer which it must be imposed under existing laws, except
who is found guilty of "planting" any dangerous drugs when the guilty person is below eighteen (18) years of
punished in Sections 3, 4, 7, 8, 9 and 13 of Article II and age at the time of the commission of the crime or is
Sections 14, 14-A, 15 and 16 of Article III of this Act in more than seventy years of age or when upon appeal or
the person or in the immediate vicinity of another as automatic review of the case by the Supreme Court, the
evidence to implicate the latter, shall suffer the same required majority vote is not obtained for the imposition
penalty as therein provided." of the death penalty, in which cases the penalty shall be
reclusion perpetua.
Section 20. Sec. 14 of Republic Act No. 6539, as amended,
known as the Anti-Carnapping Act of 1972, is hereby amended to In all cases where the death penalty is imposed by the
read as follows: trial court, the records shall be forwarded to the
Supreme Court for automatic review and judgment by

80
 the Court en banc, within twenty (20) days but not (c) Upon a fifth or additional conviction, the
earlier than fifteen (15) days after promulgation of the culprit shall be sentenced to the penalty
judgment or notice of denial of any motion for new trial provided for the last crime of which he be
or reconsideration. The transcript shall also be found guilty and to the additional penalty of
forwarded within ten (10) days from the filing thereof by prision mayor in its maximum period to
the stenographic reporter." reclusion temporal in its minimum period.

Section 23. Article 62 of the same Code, as amended, is hereby Notwithstanding the provisions of this article,
amended to read as follows : the total of the two penalties to be imposed
upon the offender, in conformity herewith,
shall in no case exceed 30 years.
"Art. 62. Effects of the attendance of mitigating or
aggravating circumstances and of habitual delinquency.
- Mitigating or aggravating circumstances and habitual For purposes of this article, a person shall be
delinquency shall be taken into account for the purpose deemed to be a habitual delinquent, if within a
of diminishing or increasing the penalty in conformity period of ten years from the date of his release
with the following rules: or last conviction of the crimes of serious or
less serious physical injuries, robo, hurto,
estafa or falsification, he is found guilty of any
1. Aggravating circumstances which in themselves
of said crimes a third time or oftener.
constitute a crime specially punishable by law or which
are included by the law in defining a crime and
prescribing the penalty therefor shall not be taken into Section 24. Article 81 of the same Code, as amended, is hereby
account for the purpose of increasing the penalty. amended to read as follows :

1(a). When in the commission of the crime, advantage "Art. 81. When and how the death penalty is to be
was taken by the offender of his public position, the executed. - The death sentence shall be executed with
penalty to be imposed shall be in its maximum preference to any other and shall consist in putting the
regardless of mitigating circumstances. person under sentence to death by electrocution. The
death sentence shall be executed under the authority of
the Director of Prisons, endeavoring so far as possible to
The maximum penalty shall be imposed if the offense
mitigate the sufferings of the person under the sentence
was committed by any group who belongs to an
during electrocution as well as during the proceedings
organized/syndicated crime group.
prior to the execution.

An organized/syndicated crime group means a group of

If the person under sentence so desires, he shall be
two or more persons collaborating, confederating or
anaesthetized at the moment of the execution.
mutually helping one another for purposes of gain in the
commission of any crime.
As soon as facilities are provided by the Bureau of
Prisons, the method of carrying out the sentence shall
2. The same rule shall apply with respect to any
be changed to gas poisoning.
aggravating circumstances inherent in the crime to such
a degree that it must of necessity accompany the
commission thereof. The death sentence shall be carried out not later than
one (1) year after the judgment has become final."
3. Aggravating or mitigating circumstances which arise
from the moral attributes of the offender, or from his Section 25. Article 83 of the same Code is hereby amended to
private relations with the offended party, or from any read as follows:
other personal cause, shall only serve to aggravate or
mitigate the liability of the principals, accomplices and
"Art. 83. Suspension of the execution of the death
accessories as to whom such circumstances are
sentence. - The death sentence shall not be inflicted
attendant.
upon a woman while she is pregnant or within one (1)
year after delivery, nor upon any person over seventy
4. The circumstances which consist in the material years of age. In this last case, the death sentence shall
execution of the act, or in the means employed to be commuted to the penalty of reclusion perpetua with
accomplish it, shall serve to aggravate or mitigate the the accessory penalties provided in Article 40.
liability of those persons only who had knowledge of
them at the time of the execution of the act or their
In all cases where the death sentence has become final,
cooperation therein.
the records of the case shall be forwarded immediately
by the Supreme Court to the Office of the President for
5. Habitual delinquency shall have the following effects : possible exercise of the pardoning power."

(a) Upon a third conviction the culprit shall be

sentenced to the penalty provided by law for
the last crime of which he be found guilty and
to the additional penalty of prision correccional
in its medium and maximum periods;

(b) Upon a fourth conviction, the culprit shall

be sentenced to the penalty provided for the
last crime of which he be found guilty and to
the additional penalty of prision mayor in its
minimum and medium periods; and
81
 sufficient food and water for such animals while in transit for more
than twelve (12) hours or whenever necessary.

No public utility shall transport any such animal without a written

permit from the Director of the Bureau of Animal Industry or
Republic Act No. 8485             February 11, 1998 his/her authorized representative. No cruel confinement or
restraint shall be made on such animals while being transported.
AN ACT TO PROMOTE ANIMAL WELFARE IN THE
PHILIPPINES, OTHERWISE KNOWN AS "THE ANIMAL Any form of cruelty shall be penalized even if the transporter has
WELFARE ACT OF 1998" obtained a permit from the Bureau of Animal Industry. Cruelty in
transporting includes overcrowding, placing of animals in the
trunks or under the hood trunks of the vehicles.
Section 1. It is the purpose of this Act to protect and promote
the welfare of all animals in the Philippines by supervising and
regulating the establishment and operations of all facilities utilized Section 5. There is hereby created a Committee on Animal
for breeding, maintaining, keeping, treating or training of all Welfare attached to the Department of Agriculture which shall,
animals either as objects of trade or as household pets. For subject to the approval of the Secretary of the Department of
purposes of this Act, pet animal shall include birds. Agriculture, issue the necessary rules and regulations for the strict
implementation of the provisions of this Act, including the setting
of safety and sanitary standards, within thirty (30) calendar days
Section 2. No person, association, partnership, corporation,
following its approval. Such guidelines shall be reviewed by the
cooperative or any government agency or instrumentality
Committee every three (3) years from its implementation or
including slaughter houses shall establish, maintain and operate
whenever necessary.
any pet shop, kennel, veterinary clinic, veterinary hospital,
stockyard, corral, stud farm or stock farm or zoo for the breeding,
treatment, sale or trading, or training of animals without first The Committee shall be composed of the official representatives
securing from the Bureau of Animal Industry a certificate of of the following:
registration therefor.
(1) The Department of Interior and Local Government
The certificate shall be issued upon proof that the facilities of such (DILG);
establishment for animals are adequate, clean and sanitary and
will not be used for, nor cause pain and/or suffering to the
(2) Department of Education, Culture and Sports
animals. The certificate shall be valid for a period of one (1) year
(DECS);
unless earlier cancelled for just cause before the expiration of its
term by the Director of the Bureau of Animal Industry and may be
renewed from year to year upon compliance with the conditions (3) Bureau of Animal Industry (BAI) of the Department
imposed hereunder. The Bureau shall charge reasonable fees for of Agriculture (DA);
the issuance or renewal of such certificate.
(4) Protected Areas and Wildlife Bureau (PAWB) of the
The condition that such facilities be adequate, clean and sanitary, Department of Environment and Natural Resources
and that they will not be used for nor cause pain and/or suffering (DENR);
to the animals is a continuing requirement for the operation of
these establishments. The Bureau may revoke or cancel such
certificate of registration for failure to observe these conditions (5) National Meat Inspection Commission (NMIC) of the
and other just causes. DA;

Section 3. The Director of the Bureau of Animal Industry shall (6) Agriculture Training Institute (ATI) of the DA;
supervise and regulate the establishment, operation and
maintenance of pet shops, kennels, veterinary clinics, veterinary (7) Philippine Veterinary Medical Association (PVMA);
hospitals, stockyards, corrals, stud farms and zoos and any other
form or structure for the confinement of animals where they are
bred, treated, maintained, or kept either for sale or trade or for (8) Veterinary Practitioners Association of the Philippines
training as well as the transport of such animals in any form of (VPAP);
public or private transportation facility in order to provide
maximum comfort while in transit and minimize, if not totally (9) Philippine Animal Hospital Association of the
eradicate, incidence of sickness and death and prevent any Philippines (PAHA);
cruelty from being inflicted upon the animals.

(10) Philippine Animal Welfare Society (PAWS);

The Director may call upon any government agency for assistance
consistent with its powers, duties, and responsibilities for the
purpose of ensuring the effective and efficient implementation of (11) Philippine Society for the Prevention of Cruelty to
this Act and the rules and regulations promulgated thereunder. Animals (PSPCA);

It shall be the duty of such government agency to assist said (12) Philippine Society of Swine Practitioners (PSSP);
Director when called upon for assistance using any available fund
in its budget for the purpose. (13) Philippine College of Canine Practitioners (PCCP);
and
Section 4. It shall be the duty of any owner or operator of any
land, air or water public utility transporting pet, wildlife and all (14) Philippine Society of Animal Science (PSAS).
other animals to provide in all cases adequate, clean and sanitary
facilities for the safe conveyance and delivery thereof to their
consignee at the place of consignment. They shall provide The Committee shall be chaired by a representative coming from
the private sector and shall have two (2) vice-chairpersons
82
composed of the representative of the BAI and another from the both at the discretion of the Court. If the violation is committed
private sector. by a juridical person, the officer responsible therefor shall serve
the imprisonment when imposed. If the violation is committed by
an alien, he or she shall be immediately deported after service of
The Committee shall meet quarterly or as often as the need
sentence without any further proceedings.
arises. The Committee members shall not receive any
compensation but may receive reasonable honoraria from time to
time. REPUBLIC ACT NO. 10631

Section 6. It shall be unlawful for any person to torture any AN ACT AMENDING CERTAIN SECTIONS OF REPUBLIC ACT
animal, to neglect to provide adequate care, sustenance or NO. 8485, OTHERWISE KNOWN AS "THE ANIMAL WELFARE
shelter, or maltreat any animal or to subject any dog or horse to ACT OF 1998″
dogfights or horsefights, kill or cause or procure to be tortured or
deprived of adequate care, sustenance or shelter, or maltreat or
Section 1. Section 1 of Republic Act No. 8485 is hereby amended
use the same in research or experiments not expressly authorized
to read as follows;
by the Committee on Animal Welfare.

"SECTION 1. It is the purpose of this Act to protect and

The killing of any animal other than cattle pigs, goats, sheep,
promote the welfare of all terrestrial, aquatic and marine
poultry, rabbits, carabaos, horses, deer and crocodiles is likewise
animals in the Philippines by supervising and regulating
hereby declared unlawful except in the following instances:
the establishment and operations of all facilities utilized
for breeding, maintaining, keeping, treating or training
(1) When it is done as part of the religious rituals of an of all animals either as objects of trade or as household
established religion or sect or a ritual required by tribal pets. For purposes of this Act, pet animal shall include
or ethnic custom of indigenous cultural communities; birds.
however, leaders shall keep records in cooperation with
the Committee on Animal Welfare;
"For purposes of this Act, animal welfare pertains to the
physical and psychological well-being of animals. It
(2) When the pet animal is afflicted with an incurable includes, but not limited to, the avoidance of abuse,
communicable disease as determined and certified by a maltreatment, cruelty and exploitation of animals by
duly licensed veterinarian; humans by maintaining appropriate standards of
accommodation, feeding and general care, the
prevention and treatment of disease and the assurance
(3) When the killing is deemed necessary to put an end
of freedom from fear, distress, harassment, and
to the misery suffered by the animal as determined and
unnecessary discomfort and pain, and allowing animals
certified by a duly licensed veterinarian;
to express normal behavior."

(4) When it is done to prevent an imminent danger to

Section 2. Section 6 of Republic Act No. 8485 is hereby amended
the life or limb of a human being;
to read as follows:

(5) When done for the purpose of animal population

"SEC. 6. It shall be unlawful for any person to torture
control;
any animal, to neglect to provide adequate care,
sustenance of shelter, or maltreat any animal or to
(6) When the animal is killed after it has been used in subject any dog or horse to dogfights or horsefights, kill
authorized research or experiments; and or cause or procure to be tortured or deprived of
adequate care, sustenance or shelter, or maltreat or use
the same in research or experiments not expressly
(7) Any other ground analogous to the foregoing as authorized by the Committee on Animal Welfare.
determined and certified licensed veterinarian.

"The killing of any animal other than cattle, pigs, goats,

In all the above mentioned cases, including those of cattle, pigs, sheep, poultry, rabbits, carabaos and horses is likewise
goats, sheep, poultry, rabbits, carabaos, horses, deer and hereby declared unlawful except in the following
crocodiles the killing of the animals shall be done through humane instances:
procedures at all times.

"x x x."
For this purpose, humane procedures shall mean the use of the
most scientific methods available as may be determined and
approved by the committee. Section 3. A new Section 7 is hereby inserted after Section 6 of
the same Act to read as follows:
Only those procedures approved by the Committee shall be used
in the killing of animals. "SEC. 7. It shall be unlawful for any person who has
custody of an animal to abandon the animal.
Section 7. It shall be the duty of every person to protect the
natural habitat of the wildlife. The destruction of said habitat shall "If any person being the owner or having charge or
be considered as a form of cruelty to animals and its preservation control of any animal shall without reasonable cause or
is a way of protecting the animals. excuse abandon it, whether permanently or not, without
providing for the care of that animal, such act shall
constitute maltreatment under Section 9.
Section 8. Any person who violates any of the provisions of this
Act shall, upon conviction by final judgment, be punished by
imprisonment of not less than six (6) months nor more than two "If the animal is left in circumstances likely to cause the
(2) years or a fine of not less than One thousand pesos animal any unnecessary suffering, or if this
(P1,000.00) nor more than Five thousand pesos (P5,000.00) or
83
 abandonment results in the death of the animal, the groups, community organizations and other volunteers
person liable shall suffer the maximum penalty. who have undergone the necessary training for this
purpose. The Philippine National Police, the National
Bureau of Investigation and other law enforcement
"Abandonment means the relinquishment of all right,
agencies shall designate animal welfare enforcement
title, claim, or possession of the animal with the
officers. As such, animal welfare enforcement officers
intention of not reclaiming it or resuming its ownership
shall have the authority to seize and rescue illegally
or possession."
traded and maltreated animals and to arrest violators of
this Act subject to the guidelines of existing laws and
Section 4. Section 8 of Republic Act No. 8485 which shall now rules and regulations on arrest and detention.
become Section 9 is hereby amended to read as follows:
"The Secretary of the Department of Agriculture shall,
"SEC. 9. Any person who subjects any animal to cruelty, upon the recommendation of the Committee on Animal
maltreatment or neglect shall, upon conviction by final Welfare:
judgment, be punished by imprisonment and/ or fine, as
indicated in the following graduated scale:
"(1) Promulgate the guidelines on the criteria
and training requirements for the deputization
"(1) Imprisonment of one (1) year and six (6) of animal welfare enforcement officers; and
months and one (1) day to two (2) years
and/or a fine not exceeding One hundred
"(2) Establish a mechanism for the supervision,
thousand pesos (P100,000.00) if the animal
monitoring and reporting of these enforcement
subjected to cruelty, maltreatment or neglect
officers."
dies;

RA 9160
"(2) Imprisonment of one (1) year and one (1)
day to one (1) year and six (6) months and/or
a fine not exceeding Fifty thousand pesos Sec. 3. Declaration of Policy. – It is the policy of the State that:
(P50,000.00) if the animal subjected to
cruelty, maltreatment or neglect survives but is (a) The integrity and confidentiality of bank accounts shall be
severely injured with loss of its natural faculty protected and preserved;
to survive on its own and needing human
intervention to sustain its life; and (b) The Philippines shall not be used as a money laundering site
for the proceeds of any unlawful activity; and
"(3) Imprisonment of six (6) months to one (1)
(c) Consistent with its foreign policy, the Philippines shall extend
year and/or a fine not exceeding Thirty
cooperation in transnational investigations and prosecutions of
thousand pesos (P30,000.00) for subjecting
any animal to cruelty, maltreatment or neglect persons involved in money laundering activities wherever
but without causing its death or incapacitating committed.
it to survive on its own.
Sec. 4. Definition of Terms. -

"If the violation is committed by a juridical person, the     (a)  "Covered institutions" refer to the following:
officer responsible thereof shall serve the imprisonment.
If the violation is committed by an alien, he or she shall (1) Banks, offshore banking units, quasi-banks, trust entities,
be immediately deported after the service of sentence non-stock savings and loan associations, pawnshops, and all other
without any further proceeding. institutions including their subsidiaries and affiliates supervised
and/or regulated by the Bangko Sentral ng Pilipinas (BSP).
"The foregoing penalties shall also apply for any other
violation of this Act, depending upon the effect or result A subsidiary means an entity more than fifty percent (50%) of the
of the act or omission as defined in the immediately outstanding voting stock of which is owned by a bank, quasi-
preceding sections. bank, trust entity or any other institution supervised or regulated
by the BSP.
"However, regardless of the resulting condition to the An affiliate means an entity at least twenty percent (20%) but not
animal/s, the penalty of two (2) years and one (1) day
exceeding fifty percent (50%) of the voting stock of which is
to three (3) years and/or a fine not exceeding Two
owned by a bank, quasi-bank, trust entity, or any other institution
hundred fifty thousand pesos (P250,000.00) shall be
supervised and/or regulated by the BSP.
imposed if the offense is committed by any of the
following: (1) a syndicate; (2) an offender who makes
(2) Insurance companies, insurance agents, insurance brokers,
business out of cruelty to an animal; (3) a public officer
or employee; or (4) where at least three (3) animals are professional reinsurers, reinsurance brokers, holding companies,
involved. holding company systems and all other persons and entities
supervised and/or regulated by the Insurance Commission (IC).

"In any of the foregoing situations, the offender shall An insurance company includes those entities authorized to
suffer subsidiary imprisonment in case of insolvency and transact insurance business in the Philippines, whether life or non-
the inability to pay the fine." life and whether domestic, domestically incorporated or branch of
a foreign entity. A contract of insurance is an agreement whereby
Section 5. A new Section 10 is hereby inserted after the Section one undertakes for a consideration to indemnify another against
above to read as follows: loss, damage or liability arising from an unknown or contingent
event. Transacting insurance business includes making or
"SEC. 10. The Secretary of the Department of proposing to make, as insurer, any insurance contract, or as
Agriculture shall deputize animal welfare enforcement surety, any contract of suretyship as a vocation and not as merely
officers from nongovernment organizations, citizens incidental to any other legitimate business or activity of the
84
surety, doing any kind of business specifically recognized as A mutual fund or an open-end investment company includes an
constituting the doing of an insurance business within the investment company which is offering for sale or has outstanding,
meaning of Presidential Decree (P. D.) No. 612, as amended, any redeemable security of which it is the issuer.
including a reinsurance business and doing or proposing to do any
business in substance equivalent to any of the foregoing in a A closed-end investment company includes an investment
manner designed to evade the provisions of P. D. No. 612, as company other than open-end investment company.
amended.
A common trust fund includes a fund maintained by an entity
An insurance agent includes any person who solicits or obtains authorized to perform trust functions under a written and formally
insurance on behalf of any insurance company or transmits for a established plan, exclusively for the collective investment and
person other than himself an application for a policy or contract of reinvestment of certain money representing participation in the
insurance to or from such company or offers or assumes to act in plan received by it in its capacity as trustee, for the purpose of
the negotiation of such insurance. administration, holding or management of such funds and/or
properties for the use, benefit or advantage of the trustor or of
An insurance broker includes any person who acts or aids in any others known as beneficiaries.
manner in soliciting, negotiating or procuring the making of any
insurance contract or in placing risk or taking out insurance, on A pre-need company or issuer includes any corporation supervised
behalf of an insured other than himself. and/or regulated by the SEC and is authorized or licensed to sell
or offer for sale pre-need plans.
A professional reinsurer includes any person, partnership,
association or corporation that transacts solely and exclusively A foreign exchange corporation includes any enterprise which
reinsurance business in the Philippines, whether domestic, engages or purports to engage, whether regularly or on an
domestically incorporated or a branch of a foreign entity. A isolated basis, in the sale and purchase of foreign currency notes
contract of reinsurance is one by which an insurer procures a third and such other foreign-currency denominated non-bank deposit
person to insure him against loss or liability by reason of such transactions as may be authorized under its articles of
original insurance. incorporation.

A reinsurance broker includes any person who, not being a duly An investment agent or consultant or trading advisor includes any
authorized agent, employee or officer of an insurer in which any person who is engaged in the business of advising others as to
reinsurance is effected, acts or aids in any manner in negotiating the value of any security and the advisability of trading in any
contracts of reinsurance or placing risks of effecting reinsurance, security or in the business of issuing reports or making analysis of
for any insurance company authorized to do business in the capital markets. However, in case the issuance of reports or the
Philippines. rendering of the analysis of capital markets is solely incidental to
the conduct of the business or profession of banks, trust
A holding company includes any person who directly or indirectly companies, journalists, reporters, columnists, editors, lawyers,
controls any authorized insurer. accountants, teachers, and publishers of newspapers and business
or financial publications of general and regular circulation,
A holding company system includes a holding company together including their employees, they shall not be deemed to be
with its controlled insurers and controlled persons. investment agents or consultants or trade advisors within the
contemplation of the AMLA and these Rules.
(3) (i) Securities dealers, brokers, salesmen, associated persons
of brokers or dealers, investment houses, investment agents and A money changer includes any person in the business of buying or
consultants, trading advisors, and other entities managing selling foreign currency notes.
securities or rendering similar services, (ii) mutual funds or open-
end investment companies, close-end investment companies, A money payment, remittance and transfer company includes any
common trust funds, pre-need companies or issuers and other person offering to pay, remit or transfer or transmit money on
similar entities; (iii) foreign exchange corporations, money behalf of any person to another person.
changers, money payment, remittance, and transfer companies  
and other similar entities, and (iv) other entities administering or
otherwise dealing in currency, commodities or financial derivatives (b) "Customer" refers to any person or entity that keeps an
based thereon, valuable objects, cash substitutes and other account, or otherwise transacts business, with a covered
similar monetary instruments or property supervised and/or institution and any person or entity on whose behalf an account is
regulated by the Securities and Exchange Commission (SEC). maintained or a transaction is conducted, as well as the
beneficiary of said transactions. A customer also includes the
A securities broker includes a person engaged in the business of beneficiary of a trust, an investment fund, a pension fund or a
buying and selling securities for the account of others. company or person whose assets are managed by an asset
manager, or a grantor of a trust. It includes any insurance policy
A securities dealer includes any person who buys and sells holder, whether actual or prospective.
securities for his/her account in the ordinary course of business.
 
A securities salesman includes a natural person, employed as
such or as an agent, by a dealer, issuer or broker to buy and sell (c) "Monetary Instrument" refers to:
securities.
(1) Coins or currency of legal tender of the Philippines, or of any
An associated person of a broker or dealer includes an employee other country;
thereof who directly exercises control of supervisory authority, but
does not include a salesman, or an agent or a person whose (2) Drafts, checks and notes;
functions are solely clerical or ministerial.
(3) Securities or negotiable instruments, bonds, commercial
An investment house includes an enterprise which engages or papers, deposit certificates, trust certificates, custodial receipts or
purports to engage, whether regularly or on an isolated basis, in deposit substitute instruments, trading orders, transaction tickets
the underwriting of securities of another person or enterprise, and confirmations of sale or investments and money market
including securities of the Government and its instrumentalities. instruments;

85
(4) Other similar instruments where title thereto passes to RULE 2
another by endorsement, assignment or delivery; and COMPOSITION AND PROCEEDINGS OF
THE ANTI-MONEY LAUNDERING COUNCIL
(5) Contracts or policies of insurance, life or non-life, and
contracts of suretyship.
   

(d) "Offender" refers to any person who commits a money Section 1. Composition. – The members of the Anti-Money
laundering offense. Laundering Council (AMLC) created under the AMLA shall be the
Governor of the BSP, the Insurance Commissioner and the
  Chairman of the SEC. The Governor of the BSP shall be the
Chairman.
(e) "Person" refers to any natural or juridical person.
Sec. 2. Collegiality. – The AMLC is a collegial body where the
  Chairman and the members of the AMLC are entitled to one (1)
vote each.
(f) "Proceeds" refers to an amount derived or realized from an
unlawful activity. It includes: Sec. 3. Unanimous Decision. – The AMLC shall act unanimously in
discharging its functions as defined in the AMLA and in these
(1) All material results, profits, effects and any amount realized
Rules. However, in the case of the incapacity, absence or
from any unlawful activity;
disability of any member to discharge his functions, the officer
(2) All monetary, financial or economic means, devices, duly designated or authorized to discharge the functions of the
documents, papers or things used in or having any relation to any Governor of the BSP, the Chairman of the SEC or the Insurance
unlawful activity; and Commissioner, as the case may be, shall act in his stead in the
AMLC.
(3) All moneys, expenditures, payments, disbursements, costs,
outlays, charges, accounts, refunds and other similar items for the Sec. 4. Delegation of Authority. – Action on routinary
financing, operations, and maintenance of any unlawful activity. administrative matters may be delegated to any member of the
  AMLC or to any ranking official of the Secretariat under such
guidelines as the AMLC may determine.
(g) "Property" includes any thing or item of value, real or
personal, tangible or intangible, or any interest therein or any Sec. 5. Secretariat. –
benefit, privilege, claim or right with respect thereto.
(a) The Secretariat shall be headed by an Executive Director who
  shall be appointed by the AMLC for a term of five (5) years. He
must be a member of the Philippine Bar, at least thirty-five (35)
(h) "Supervising Authority" refers to the BSP, the SEC and the IC. years of age and of good moral character, unquestionable
Where the SEC supervision applies only to the incorporation of the integrity and known probity. He shall be considered a regular
registered institution, within the limits of the AMLA, the SEC shall employee of the BSP with the rank of Assistant Governor, and
have the authority to require and ask assistance from the shall be entitled to such benefits and subject to such rules and
government agency having regulatory power and/or licensing regulations as are applicable to officers of similar rank.
authority over said covered institution for the implementation and
enforcement of the AMLA and these Rules. (b) Other than the Executive Director whose qualifications are
provided for in the preceding paragraph, in organizing the
  Secretariat, the AMLC may only choose from among those who
have served, continuously or cumulatively, for at least five (5)
(i) "Transaction" refers to any act establishing any right or years in the BSP, the SEC or the IC, but who need not be
obligation or giving rise to any contractual or legal relationship incumbents therein at the time of their appointment in the
between the parties thereto. It also includes any movement of Secretariat. All members of the Secretariat shall be considered
funds by any means with a covered institution. regular employees of the BSP and shall be entitled to such
benefits and subject to such rules and regulations as are
Sec. 5. Limitations of the Rules. - applicable to BSP employees of similar rank.

(a) The provisions of the AMLA and these Rules shall not apply to Sec. 6. Detail and Secondment of Personnel. – The AMLC is
deposits, investments, and all other accounts of customers with authorized under Section 7 (10) of the AMLA to enlist the
covered institutions that were opened or created prior to the assistance of the BSP, the SEC or the IC or any other branch,
effectivity of the AMLA on October 17, 2001. Hence, no covered department, bureau, office, agency or instrumentality of the
transaction reports, investigation and prosecution of money government, including government-owned and –controlled
laundering cases, or any other action authorized under the AMLA, corporations, in undertaking any and all anti-money laundering
may be undertaken with respect to such deposits, investments operations. This includes the use of any member of their
and accounts as well as transactions or circumstances in relation personnel who may be detailed or seconded to the AMLC, subject
thereto, that have been completed prior to October 17, 2001. to existing laws and Civil Service Rules and Regulations.
However, the AMLA and these Rules shall apply to all movements
of funds respecting such deposits, investments and accounts as Sec. 7. Confidentiality of Proceedings. – The members of the
well as transactions or circumstances in relation thereto, that are AMLC, the Executive Director, and all the members of the
initiated or commenced on or after October 17, 2001. Secretariat, whether permanent, on detail or on secondment,
shall not reveal in any manner except under orders of the court,
(b) The AMLA and these Rules shall not be used for political the Congress or any government office or agency authorized by
persecution or harassment or as an instrument to hamper law, or under such conditions as may be prescribed by the AMLC,
competition in trade and commerce. any information known to them by reason of their office. In case
of violation of this provision, the person shall be punished in
 

86
accordance with the pertinent provisions of R. A. Nos. 3019, 6713 where the client is not properly identified and/or the amount is
and 7653. not commensurate with his business or financial capacity.

Sec. 8. Meetings. – The AMLC shall meet every first Monday of the (2) A single transaction involving an amount in excess of Four
month or as often as may be necessary at the call of the million Philippine pesos (Php4,000,000.00) or an equivalent
Chairman. Subject to the rule on confidentiality in the amount in foreign currency based on the prevailing exchange rate
immediately preceding section, the meetings of the AMLC may be which has no underlying legal or trade obligation, purpose, origin,
conducted through modern technologies such as, but not limited or economic justification.
to, teleconferencing and video-conferencing.
(3) A series or combination of transactions conducted within five
Sec. 9. Budget. – The budget appropriated by the Congress shall (5) consecutive banking days aggregating to a total amount in
be used to defray operational expenses of the AMLC, including excess of Four million Philippine pesos (Php4,000,000.00) or an
indemnification for legal costs and expenses reasonably incurred equivalent in foreign currency based on the prevailing exchange
for the services of external counsel or in connection with any civil, rate where the client is not properly identified and/or the amount
criminal or administrative action, suit or proceedings to which is not commensurate with his business or financial capacity.
members of the AMLC and the Executive Director and other
members of the Secretariat may be made a party by reason of the (4) A series or combination of transactions conducted within five
performance of their functions or duties. (5) consecutive banking days aggregating to a total amount in
excess of Four million Philippine pesos (Php4,000,000.00) or an
  equivalent in foreign currency based on the prevailing exchange
rate exchange rate where most, if not all the transactions, do not
RULE 3 have any underlying legal or trade obligation, purpose, origin, or
POWERS OF THE AMLC economic justification.

(5) A single unusually large and complex transaction in excess of

  Four million Philippine pesos (Php4,000,000.00), especially a cash
deposit or investment having no credible purpose or origin,
Section 1. Authority to Initiate Investigations on the Basis of underlying trade obligation or contract, regardless of whether or
Voluntary Citizens’ Complaints and Government Agency not the client is properly identified and/or the amount is
Referrals. - commensurate with his business or financial capacity.
(a) Any person, including covered institutions not subject to any (6) A series, combination or pattern of unusually large and
account secrecy laws and branches, departments, bureaus, complex transactions aggregating to, without reference to any
offices, agencies and instrumentalities of the government, period, a total amount in excess of Four million Philippine pesos
including government-owned and –controlled corporations, may (Php4,000,000.00), especially cash deposits and/or investments
report to the AMLC any activity that engenders reasonable belief having no credible purpose or origin, underlying trade obligation
that any money laundering offense under Section 4 of the AMLA or contract, regardless of whether or not the client is properly
and defined under Rule 4 of these Rules is about to be, is being or identified and/or the amount is commensurate with his business
has been committed. or financial capacity.
(b) The person so reporting shall file a Voluntary Citizens’ (b) Obligation to Report Covered Transactions. All covered
Complaint (VCC) or Government Referral (GR) in the form institutions supervised or regulated by the BSP, the SEC and the
prescribed by the AMLC. The VCC and GR forms shall indicate that IC shall report all covered transactions to the AMLC within five (5)
the members of the AMLC, the Executive Director and all the working days from the date of the transaction or from the date
members of the Secretariat are bound by the confidentiality rule when the covered institution concerned gained/acquired
provided in Section 7, Rule 2 of these Rules. The VCC shall be information/knowledge that the transaction is a covered
signed by the complainant. The GR shall be signed by the transaction.
authorized representative of the government agency concerned,
indicating his current position and rank therein. (c) Covered Transaction Report Form. The Covered Transaction
Report (CTR) shall be in the form prescribed by the appropriate
(c) Any person who files a VCC or GR shall not incur any liability Supervising Authority and approved by the AMLC. It shall be
for all their acts in relation thereto that were done in good faith. signed by the employee(s) who dealt directly with the customer in
However, any person who, with malice, or in bad faith, reports or the transaction and/or who made the initial internal report within
files a completely unwarranted or false information relative to any the covered institution, the compliance officer or his equivalent,
money laundering transaction against any person shall be subject and a senior official of the bank with a rank not lower than senior
to the penalties provided for under Section 14 (c) of the AMLA. vice-president. The CTR shall be filed with the AMLC in a central
location, to be determined by the AMLC, as indicated in the
(d) On the basis of the VCC or GR, the AMLC may initiate
instructions on the CTR form.
investigation thereof, and based on the evidence gathered, the
AMLC may cause the filing of criminal complaints with the (d) Exemption from Bank Secrecy Laws. When reporting covered
Department of Justice or the Ombudsman for the prosecution of transactions to the AMLC, banks and their officers, employees,
money laundering offenses. representatives, agents, advisors, consultants or associates shall
not be deemed to have violated R. A. No. 1405, as amended, R.
Sec. 2. Authority to Initiate Investigations on the Basis of Covered
A. No. 6426, as amended, R. A. No. 8791 and other similar laws.
Transaction Reports. -
(e) Safe Harbor Provision. No administrative, criminal or civil
(a) Covered Transactions. The mandatory duty and obligation of
proceedings shall lie against any person for having made a
covered institutions to make reports to the AMLC covers the
covered transaction report in the regular performance of his
following transactions:
duties and in good faith, whether or not such reporting results in
(1) A single transaction involving an amount in excess of Four any criminal prosecution under the AMLA or any other Philippine
million Philippine pesos (Php4,000,000.00) or an equivalent law.
amount in foreign currency based on the prevailing exchange rate

87
(f) Filing of Criminal Complaints. On the basis of the CTR, the monetary instrument or property subject thereof sought to be
AMLC may initiate investigation thereof, and based on the frozen is in any way related to said unlawful activity and/or
evidence gathered, the AMLC may cause the filing of criminal money laundering offense.
complaints with the Department of Justice or the Ombudsman for
the prosecution of money laundering offenses. (b) The freeze order on such account shall be effective
immediately for a period not exceeding fifteen (15) days.
(g) Malicious Reporting. Any person who, with malice, or in bad
faith, reports or files a completely unwarranted or false (c) The AMLC must serve notice of the freeze order upon the
information relative to any money laundering transaction against covered institution concerned and the owner or holder of the
any person, shall be subject to a penalty of imprisonment from six deposit, investment or similar account, simultaneously with the
(6) months to four (4) years and a fine of not less than One issuance thereof. Upon receipt of the notice of the freeze order,
hundred thousand Philippine pesos (Php100,000.00) but not more the covered institution concerned shall immediately stop, freeze,
than Five hundred thousand Philippine pesos (Php500,000.00), at block, suspend or otherwise place under its absolute control the
the discretion of the court: Provided, That the offender is not account and the monetary instrument or property subject thereof.
entitled to avail of the benefits under the Probation Law.
(d) The owner or holder of the account so notified shall have a
If the offender is a corporation, association, partnership or any non-extendible period of seventy-two (72) hours upon receipt of
juridical person, the penalty shall be imposed upon the the notice to file a verified explanation with the AMLC why the
responsible officers, as the case may be, who participated or freeze order should be lifted. Failure of the owner or holder of the
failed to prevent its commission. If the offender is a juridical account to file such verified explanation shall be deemed waiver of
person, the court may suspend or revoke its license. If the his right to question the freeze order.
offender is an alien, he shall, in addition to the penalties herein
prescribed, be deported without further proceedings after serving (e) The AMLC shall have seventy-two (72) hours from receipt of
the penalties herein prescribed. If the offender is a public official the written explanation of the owner or holder of the frozen
or employee, he shall, in addition to the penalties prescribed account to resolve the same. If the AMLC fails to act within said
herein, suffer perpetual or temporary absolute disqualification period, the freeze order shall automatically be dissolved.
from office, as the case may be. However, the covered institution shall not lift the freeze order
without securing official confirmation from the AMLC.
(h) Breach of Confidentiality. When reporting covered transactions
to the AMLC, covered institutions and their officers, employees, (f) Before the fifteen (15)-day period expires, the AMLC may
representatives, agents, advisors, consultants or associates are apply in court for an extension of said period. Upon the timely
prohibited from communicating, directly or indirectly, in any filing of such application and pending the decision of the court to
manner or by any means, to any person, entity, or the media, the extend the period, said period shall be suspended and the freeze
fact that a covered transaction report was made, the contents order shall remain effective.
thereof, or any other information in relation thereto. Neither may
(g) In case the court denies the application for extension, the
such reporting be published or aired in any manner or form by the
freeze order shall remain effective only for the balance of the
mass media, electronic mail, or other similar devices. Violation of
fifteen (15)-day period.
this provision shall constitute the offense of breach of
confidentiality punished under Section 14 (d) of the AMLA with (h) No court shall issue a temporary restraining order or writ of
imprisonment from three (3) to eight (8) years and a fine of not injunction against any freeze order issued by the AMLC or any
less than Five hundred thousand Philippine pesos court order extending period of effectivity of the freeze order
(Php500,000.00) but not more than One million Philippine pesos except the Court of Appeals or the Supreme Court.
(Php1,000,000.00).
(i) No assets shall be frozen to the prejudice of a candidate for an
(i) File of Covered Transactions. – Covered institutions shall electoral office during an election period.
maintain a complete file on all covered transactions that have
been reported to the AMLC. Covered institutions shall undertake Sec. 4. Authority to Inquire into Accounts. –
the necessary adequate security measures to ensure the
confidentiality of such file. The file of covered transactions shall be (a) The AMLC is authorized under Section 7 (2) of the AMLA to
kept for at least five (5) years: Provided, That if money issue orders addressed to the appropriate Supervising Authority
laundering cases based thereon have been filed in court, the file or any covered institution to determine and reveal the true
must be retained beyond the five(5)-year period until it is identity of the owner of any monetary instrument or property
confirmed that the case has been finally resolved or terminated by subject of a covered transaction report, or a request for
the court. assistance from a foreign State, or believed by the AMLC, on the
basis of substantial evidence, to be, in whole or in part, wherever
Sec. 3. Authority to Freeze Accounts. – located, representing, involving, or related to, directly or
indirectly, in any manner or by any means, the proceeds of an
(a) The AMLC is authorized under Sections 6 (6) and 10 of the unlawful activity. For purposes of the AMLA and these Rules,
AMLA to freeze any account or any monetary instrument or substantial evidence includes such relevant evidence as a
property subject thereof upon determination that probable cause reasonable mind might accept as adequate to support a
exists that the same is in any way related to any unlawful activity conclusion.
and/or money laundering offense. The AMLC may freeze any
account or any monetary instrument or property subject thereof (b)  In case of any violation of the AMLA involving bank deposits
prior to the institution or in the course of, the criminal and investments, the AMLC may inquire into or examine any
proceedings involving the unlawful activity and/or money particular deposit or investment with any banking institution or
laundering offense to which said account, monetary instrument or non-bank financial institution upon order of any competent court
property is any way related. For purposes of Section 10 of the when the AMLC has established that there is probable cause that
AMLA and Section 3, Rule 3 of these Rules, probable cause the deposits or investments involved are in any way related to
includes such facts and circumstances which would lead a any unlawful activity and/or money laundering offense. The AMLC
reasonably discreet, prudent or cautious man to believe that an may file the application for authority to inquire into or examine
unlawful activity and/or a money laundering offense is about to any particular bank deposit or investment in court, prior to the
be, is being or has been committed and that the account or any institution or in the course of, the criminal proceedings involving
88
the unlawful activity and/or money laundering offense to which Rewards. – The AMLC is authorized under Section 15 of the AMLA
said bank deposit or investment is any way related. For purposes to establish a system of special incentives and rewards to be
of Section 11 of the AMLA and Section 4, Rule 3 of these Rules, given to the appropriate government agency and its personnel
probable cause includes such facts and circumstances which that led and initiated the investigation, prosecution, and
would lead a reasonably discreet, prudent or cautious man to conviction of persons involved in money laundering offenses
believe that an unlawful activity and/or a money laundering under Section 4 of the AMLA. Any monetary reward shall be made
offense is about to be, is being or has been committed and that payable out of the funds appropriated by Congress.
the bank deposit or investment sought to be inquired into or  
examined is in any way related to said unlawful activity and/or Sec. 11. Other Inherent, Necessary, Implied or Incidental
money laundering offense. Powers. – The AMLC shall perform such other functions and
exercise such other powers as may be inherent, necessary,
Sec. 5. Authority to Institute Civil Forfeiture Proceedings. – The implied or incidental to the functions assigned, and powers
AMLC is authorized under Section 7 (3) of the AMLA to institute granted, to it under the AMLA for the purpose of carrying out the
civil forfeiture proceedings and all other remedial proceedings declared policy of the AMLA.
through the Office of the Solicitor General.
 
Sec. 6. Authority to Assist the United Nations and other
International Organizations and Foreign States. – The AMLC is RULE 4
authorized under Sections 7 (8) and 13 (b) and (d) of the AMLA to MONEY LAUNDERING OFFENSES
receive and take action in respect of any request of foreign states
for assistance in their own anti-money laundering operations. It is
also authorized under Section 7 (7) of the AMLA to cooperate with  
the National Government and/or take appropriate action in
respect of conventions, resolutions and other directives of the Section 1. Money Laundering Offenses and their Corresponding
United Nations (UN), the UN Security Council, and other Penalties. – Money laundering is a crime whereby the proceeds of
international organizations of which the Philippines is a member. an unlawful activity are transacted, thereby making them appear
However, the AMLC may refuse to comply with any such request, to have originated from legitimate sources. It is a process
convention, resolution or directive where the action sought comprising of three (3) stages, namely, placement or the physical
therein contravenes the provision of the Constitution or the disposal of the criminal proceeds, layering or the separation of the
execution thereof is likely to prejudice the national interest of the criminal proceeds from their source by creating layers of financial
Philippines. transactions to disguise the audit trail, and integration or the
  provision of apparent legitimacy to the criminal proceeds. Any
Sec. 7. Authority to Develop and Implement Educational transaction involving such criminal proceeds or attempt to
Programs. – The AMLC is authorized under Section 7 (9) of the transact the same during the placement, layering or integration
AMLA to develop educational programs on the pernicious effects stage shall constitute the crime of money laundering.
of money laundering, the methods and techniques used in money
(a) When it is committed by a person who, knowing that any
laundering, the viable means of preventing money laundering and
monetary instrument or property represents, involves, or relates
the effective ways of prosecuting and punishing offenders. The
to, the proceeds of any unlawful activity, transacts or attempts to
AMLC shall conduct nationwide information campaigns to heighten
transact said monetary instrument or property, the penalty is
awareness of the public of their civic duty as citizens to report any
imprisonment from seven (7) to fourteen (14) years and a fine of
and all activities which engender reasonable belief that a money
not less than Three million Philippine pesos (Php3,000,000.00)
laundering offense under Section 4 of the AMLA is about to be, is
but not more than twice the value of the monetary instrument or
being or has been committed.
property involved in the offense.
Sec. 8. Authority to Issue, Clarify and Amend the Rules and
(b) When it is committed by a person who, knowing that any
Regulations Implementing R. A. No. 9160. – The AMLC is
monetary instrument or property involves the proceeds of any
authorized under Sections 7 (7), 18 and 19 of the AMLA to
unlawful activity, performs or fails to perform any act, as a result
promulgate as well as clarify and/or amend, as may be necessary,
of which he facilitates the offense of money laundering referred to
these Rules. The AMLC may make appropriate issuances for this
in paragraph (a) above, the penalty is imprisonment from four (4)
purpose.
to seven (7) years and a fine of not less than One million five
 
hundred thousand Philippine pesos (Php1,500,000.00) but not
Sec. 9. Authority to Establish Information Sharing System. –
more than Three million Philippine pesos (Php3,000,000.00).
Subject to such limitations as provided for by law, the AMLC is
authorized under Section 7 (7) of the AMLA to establish an (c) When it is committed by a person who, knowing that any
information sharing system that will enable the AMLC to store, monetary instrument or property is required under this Act to be
track and analyze money laundering transactions for the resolute disclosed and filed with the AMLC, fails to do so, the penalty is
prevention, detection and investigation of money laundering imprisonment from six (6) months to four (4) years or a fine of
offenses. For this purpose, the AMLC shall install a computerized not less than One hundred thousand Philippine pesos
system that will be used in the creation and maintenance of an (Php100,000.00) but not more than Five hundred thousand
information database. The AMLC is also authorized, under Section Philippine pesos (Php500,000.00), or both.
7 (9) of the AMLA to enter into memoranda of agreement with the
intelligence units of the Armed Forces of the Philippines, the Sec. 2. Unlawful Activities. - These refer to any act or omission or
Philippine National Police, the Department of Finance, the series or combination thereof involving or having relation to the
Department of Justice, as well as their attached agencies, and following:
other domestic or transnational governmental or non-
governmental organizations or groups for sharing of all (a)  Kidnapping for ransom under Article of Act No. 3815,
information that may, in any way, facilitate the resolute the Revised Penal Code, as amended;
prevention, investigation and prosecution of money laundering (b)  Robbery and extortion under Articles 294, 295, 296, 299,
offenses and other violations of the AMLA. 300, 301 and 302 of the same Code;
  (c)  Qualified theft under Article 310 of the same Code;
Sec. 10. Authority to Establish System of Incentives and (d)  Swindling under Article 315 of the same Code;

89
(e)  Piracy on the high seas under the same Code and Presidential However, no assets shall be attached to the prejudice of a
Decree (P.D.) No. 532; candidate for an electoral office during an election period.
(f)  Destructive arson and murder as defined under the
same Code and hijacking and other violations under Republic Act (g) Where there is conviction for money laundering under Section
(R. A.) No. 6235, including those perpetrated by terrorists against 4 of the AMLA, the court shall issue a judgment of forfeiture in
non-combatant persons and similar targets; favor of the Government of the Philippines with respect to the
(g)  Jueteng and Masiao punished as illegal gambling under P.D. monetary instrument or property found to be proceeds of one or
No. 1602; more unlawful activities. However, no assets shall be forfeited to
(h)  Smuggling under R. A. Nos. 455 and 1937; the prejudice of a candidate for an electoral office during an
(i)  Section 3, paragraphs B, C, E, G, H and I of R. A. No. 3019, election period.
the Anti-Graft and Corrupt Practices Act, as amended;
(j)  Sections 3, 4, 5, 7, 8 and 9 of Article Two of R. A. No. 6425, (h) Restitution for any aggrieved party shall be governed by the
the Dangerous Drugs Act of 1972 as amended; provisions of the New Civil Code.
(k)  Plunder under R. A. No. 7080, as amended;
 
(l)   Violations under R. A. No. 8792, the Electronic Commerce ct
of 2000; RULE 5
(m)  Fraudulent practices and other violations under R. A. No. PREVENTION OF MONEY LAUNDERING
8799, the Securities Regulation Code of 2000; and
(n)  Felonies or offenses of a similar nature that are punishable
under the penal laws of other countries.  

Sec. 3. Jurisdiction of Money Laundering Cases. – The Regional Section 1. Customer Identification Requirements. –
Trial Courts shall have the jurisdiction to try all cases on money
laundering. Those committed by public officers and private (a) True Identity of Individuals as Clients. Covered institutions
persons who are in conspiracy with such public officers shall be shall establish appropriate systems and methods based on
under the jurisdiction of the Sandiganbayan. internationally compliant standards and adequate internal controls
for verifying and recording the true and full identity of their
Sec. 4. Prosecution of Money Laundering. – customers.

(a) Any person may be charged with and convicted of both the For this purpose, they shall develop clear customer acceptance
offense of money laundering and the unlawful activity as defined policies and procedures when conducting business relations or
under Section 3 (i) of the AMLA. specific transactions, such as, but not limited to, opening of
deposit accounts, accepting deposit substitutes, entering into
(b) Any proceeding relating to the unlawful activity shall be given trust and other fiduciary transactions, renting of safety deposit
precedence over the prosecution of any offense or violation under boxes, performing remittances and other large cash transactions.
the AMLA without prejudice to the issuance by the AMLC of a
freeze order with respect to the deposit, investment or similar When dealing with customers who are acting as trustee, nominee,
account involved therein and resort to other remedies provided agent or in any capacity for and on behalf of another, covered
under the AMLA. institutions shall verify and record the true and full identity of the
person(s) on whose behalf a transaction is being conducted.
(c) Knowledge of the offender that any monetary instrument or Covered institutions shall also establish and record the true and
property represents, involves, or relates to the proceeds of an full identity of such trustees, nominees, agents and other persons
unlawful activity or that any monetary instrument or property is and the nature of their capacity and duties. In case a covered
required under the AMLA to be disclosed and filed with the AMLC, institution has doubts as to whether such persons are being used
may be established by direct evidence or inferred from the as dummies in circumvention of existing laws, it shall immediately
attendant circumstances. make the necessary inquiries to verify the status of the business
relationship between the parties.
(d) All the elements of every money laundering offense under
Section 4 of the AMLA must be proved by evidence beyond (b) Minimum Information/Documents required for Individual
reasonable doubt, including the element of knowledge that the Customers. Covered institutions shall require customers to
monetary instrument or property represents, involves or relates produce original documents of identity issued by an official
to the proceeds of any unlawful activity. No element of the authority, preferably bearing a photograph of the customer.
unlawful activity, however, including the identity of the Examples of such documents are identity cards and passports.
perpetrators and the details of the actual commission of the Where practicable, file copies of documents of identity are to be
unlawful activity need be established by proof beyond reasonable kept. Alternatively, the identity card or passport number and/or
doubt. The elements of the offense of money laundering are other relevant details are to be recorded. The following minimum
separate and distinct from the elements of the felony or offense information/documents shall be obtained from individual
constituting the unlawful activity. customers:
 
(e) No case for money laundering may be filed to the prejudice of
a candidate for an electoral office during an election period. (1)  Name;
However, this prohibition shall not constitute a bar to the (2)  Present address;
prosecution of any money laundering case filed in court before the (3)  Permanent address;
election period. (4)  Date and place of birth;
(5)  Nationality;
(f) The AMLC may apply, in the course of the criminal
(6)  Nature of work and name of employer or nature of self-
proceedings, for provisional remedies to prevent the monetary
employment/business;
instrument or property subject thereof from being removed,
(7)  Contact numbers;
concealed, converted, commingled with other property or
(8)  Tax identification number, Social Security System number or
otherwise to prevent its being found or taken by the applicant or
Government Service and Insurance System number;
otherwise placed or taken beyond the jurisdiction of the court.
(9)  Specimen signature;
(10)  Source of fund(s); and
90
(11)  Names of beneficiaries in case of insurance contracts and (h) Numbered Accounts. Peso and foreign currency non-checking
whenever applicable. numbered accounts shall be allowed: Provided, That the true
identity of the customer is satisfactorily established based on
(c) Minimum Information/Documents Required for Corporate and official and other reliable documents and records, and that the
Juridical Entities. Before establishing business relationships, information and documents required under Section 1 (b) and (c)
covered institutions shall endeavor to ensure that the customer of Rule 5 of these Rules are obtained and recorded by the covered
that is a corporate or juridical entity has not been or is not in the institution. The BSP may conduct annual testing for the purpose of
process of being, dissolved, wound up or voided, or that its determining the existence and true identity of the owners of such
business or operations has not been or is not in the process of accounts.
being, closed, shut down, phased out, or terminated. Dealings
with shell companies and corporations, being legal entities which Sec. 2. Recordkeeping Requirements. – Covered transactions shall
have no business substance in their own right but through which prepare and maintain documentation on their customer accounts,
financial transactions may be conducted, should be undertaken relationships and transactions such that any account, relationship
with extreme caution. The following minimum or transaction can be so reconstructed as to enable the AMLC, the
information/documents shall be obtained from customers that are law enforcement and prosecutorial authorities, and/or the courts
corporate or juridical entities, including shell companies and to establish an audit trail for money laundering.
corporations:
  (a) Existing and New Accounts and New Transactions. All records
of existing and new accounts and of new transactions shall be
(1)  Articles of Incorporation/Partnership; maintained and safely stored for five (5) years from October 17,
(2)  By-laws; 2001 or from the dates of the accounts or transactions, whichever
(3)  Official address or principal business address; is later.
(4)  List of directors/partners;
(5)  List of principal stockholders owning at least two percent (b) Closed Accounts. With respect to closed accounts, the records
(2%) of the capital stock; on customer identification, account files and business
(6)  Contact numbers; correspondence shall be preserved and safely stored for at least
(7)  Beneficial owners, if any; and five (5) years from the dates when they were closed.
(8)  Verification of the authority and identification of the person
purporting to act on behalf of the client. (c) Retention of Records in Case a Money Laundering Case Has
Been Filed in Court. – If a money laundering case based on any
record kept by the covered institution concerned has been filed in
 (d) Verification without Face-to-Face Contact. – To the extent court, said file must be retained beyond the period stipulated in
and through such means allowed under existing laws and the two (2) immediately preceding subsections, as the case may
applicable rules and regulations of the BSP, the SEC and the IC, be, until it is confirmed that the case has been finally resolved or
covered institutions may create new accounts without face-to-face terminated by the court.
contact. However, such new accounts shall not be valid and
effective unless the customer complies with the requirements (d) Form of Records. – Records shall be retained as originals or
under the two (2) immediately preceding subsections and such certified true copies on paper, microfilm or electronic
other requirements that have been or will be imposed by the BSP, form: Provided, That such forms are admissible in court pursuant
the SEC and the IC, as the case may be, pursuant to Rule 5 of to existing laws and the applicable rules promulgated by the
these Rules and/or their respective charters, within ten (10) days Supreme Court.
from the creation of the new accounts. Unless such requirements
(e) Penalties for Failure to Keep Records. The penalty of
have been fully complied with, no transaction shall be honored by
imprisonment from six (6) months to one (1) year or a fine of not
any covered institution respecting an account created without
less than One hundred thousand Philippine pesos
face-to-face contact.
(Php100,000.00) but not more than Five hundred thousand
(e) Acquisition of Another Covered Institution. – When a covered Philippine pesos (Php500,000.00), or both, shall be imposed on a
institution acquires the business of another covered institution, person convicted for a violation of Section 9 (b) of the AMLA.
either in whole or as a product portfolio, it is not necessary for the
  Sec. 3. Money Laundering Prevention Programs. – Covered
identity of all existing customers to be re-
institutions shall formulate their respective money laundering
established: Provided, That all customer account records are
prevention programs in accordance with Section 9 and other
acquired with the business and due diligence inquiries do not raise
pertinent provisions of the AMLA and Sections 1 and 2 of Rules 3
any doubt as to whether or not the acquired business has fully
and 4 and other pertinent provisions of these Rules, subject to
complied with all the requirements under the AMLA and these
such guidelines as may be prescribed by the Supervising Authority
Rules.
and approved by the AMLC. Every covered institution shall submit
(f) Risk-monitoring and Review. Covered institutions shall adopt its own money laundering program to the Supervising Authority
programs for on-going monitoring of high-risk accounts and risk concerned within a non-extendible period of sixty (60) days from
management, subject to such rules and regulations as may be the date of effectivity of these Rules.
prescribed by the appropriate Supervising Authority. Regular
Every money laundering program shall establish detailed
reviews of customer base should be undertaken to ensure that the
procedures implementing a comprehensive, institution-wide
nature of accounts and potential risks are properly identified,
"know-your-client" policy, set-up an effective dissemination of
monitored and controlled.
information on money laundering activities and their prevention,
(g) Prohibition against Certain Accounts. Covered institutions shall detection and reporting, adopt internal policies, procedures and
maintain accounts only in the true name of the account owner or controls, designate compliance officers at management level,
holder. The provisions of existing laws to the contrary institute adequate screening and recruitment procedures, and set-
notwithstanding, anonymous accounts, accounts under fictitious up an audit function to test the system.
names, incorrect name accounts and all other similar accounts
Covered institutions shall adopt, as part of their money laundering
shall be absolutely prohibited.
programs, a system of flagging and monitoring transactions that
qualify as covered transactions except that they involve amounts

91
below the threshold to facilitate the process of aggregating them
for purposes of future reporting of such transactions to the AMLC  
when their aggregated amounts breach the threshold. Covered
institutions not subject to account secrecy laws shall incorporate Section 1. Request for Assistance from a Foreign State. - Where a
in their money laundering programs the provisions of Section 1, foreign state makes a request for assistance in the investigation
Rule 3 of these Rules and such other guidelines for the voluntary or prosecution of a money laundering offense, the AMLC may
reporting to the AMLC of all transactions that engender the execute the request or refuse to execute the same and inform the
reasonable belief that a money laundering offense is about to be, foreign state of any valid reason for not executing the request or
is being, or has been committed. for delaying the execution thereof. The principles of mutuality and
reciprocity shall, for this purpose, be at all times recognized.
Sec. 4. Training of Personnel. – Covered institutions shall provide
all their responsible officers and personnel with efficient and Sec. 2. Powers of the AMLC to Act on a Request for Assistance
effective training and continuing education programs to enable from a Foreign State. - The AMLC may execute a request for
them to fully comply with all their obligations under the AMLA and assistance from a foreign state by: (a) tracking down, freezing,
these Rules. restraining and seizing assets alleged to be proceeds of any
unlawful activity under the procedures laid down in the AMLA and
  in these Rules; (b) giving information needed by the foreign state
within the procedures laid down in the AMLA and in these Rules;
RULE 6 and (c) applying for an order of forfeiture of any monetary
FORFEITURE instrument or property in the court: Provided, That the court shall
not issue such an order unless the application is accompanied by
an authenticated copy of the order of a court in the requesting
  state ordering the forfeiture of said monetary instrument or
property of a person who has been convicted of a money
Section 1. Civil Forfeiture. - When there is a covered transaction
laundering offense in the requesting state, and a certification or
report made, and the court has, in a petition filed for the purpose
an affidavit of a competent officer of the requesting state stating
ordered seizure of any monetary instrument or property, in whole
that the conviction and the order of forfeiture are final and that no
or in part, directly or indirectly, related to said report, the Revised
further appeal lies in respect of either.
Rules of Court on civil forfeiture shall apply. However, no assets
 
shall be forfeited to the prejudice of a candidate for an electoral
Sec. 3. Obtaining Assistance From Foreign States. - The AMLC
office during an election period.
may make a request to any foreign state for assistance in (a)
Sec. 2. Claim on Forfeited Assets. - Where the court has issued an tracking down, freezing, restraining and seizing assets alleged to
order of forfeiture of the monetary instrument or property in a be proceeds of any unlawful activity; (b) obtaining information
criminal prosecution for any money laundering offense under that it needs relating to any covered transaction, money
Section 4 of the AMLA, the offender or any other person claiming laundering offense or any other matter directly or indirectly
an interest therein may apply, by verified petition, for a related thereto; (c) to the extent allowed by the law of the foreign
declaration that the same legitimately belongs to him and for state, applying with the proper court therein for an order to enter
segregation or exclusion of the monetary instrument or property any premises belonging to or in the possession or control of, any
corresponding thereto. The verified petition shall be filed with the or all of the persons named in said request, and/or search any or
court which rendered the judgment of conviction and order of all such persons named therein and/or remove any document,
forfeiture, within fifteen (15) days from the date of the order of material or object named in said request: Provided, That the
forfeiture, in default of which the said order shall become final and documents accompanying the request in support of the
executory. This provision shall apply in both civil and criminal application have been duly authenticated in accordance with the
forfeiture. applicable law or regulation of the foreign state; and (d) applying
for an order of forfeiture of any monetary instrument or property
Sec. 3. Payment in lieu of Forfeiture. - Where the court has issued in the proper court in the foreign state: Provided, That the
an order of forfeiture of the monetary instrument or property request is accompanied by an authenticated copy of the order of
subject of a money laundering offense under Section 4 of the the Regional Trial Court ordering the forfeiture of said monetary
AMLA, and said order cannot be enforced because any particular instrument or property of a convicted offender and an affidavit of
monetary instrument or property cannot, with due diligence, be the clerk of court stating that the conviction and the order of
located, or it has been substantially altered, destroyed, forfeiture are final and that no further appeal lies in respect of
diminished in value or otherwise rendered worthless by any act or either.
omission, directly or indirectly, attributable to the offender, or it  
has been concealed, removed, converted or otherwise transferred Sec. 4. Limitations on Requests for Mutual Assistance. - The AMLC
to prevent the same from being found or to avoid forfeiture may refuse to comply with any request for assistance where the
thereof, or it is located outside the Philippines or has been placed action sought by the request contravenes any provision of the
or brought outside the jurisdiction of the court, or it has been Constitution or the execution of a request is likely to prejudice the
commingled with other monetary instruments or property national interest of the Philippines, unless there is a treaty
belonging to either the offender himself or a third person or between the Philippines and the requesting state relating to the
entity, thereby rendering the same difficult to identify or be provision of assistance in relation to money laundering offenses.
segregated for purposes of forfeiture, the court may, instead of  
enforcing the order of forfeiture of the monetary instrument or Sec. 5. Requirements for Requests for Mutual Assistance from
property or part thereof or interest therein, accordingly order the Foreign States. - A request for mutual assistance from a foreign
convicted offender to pay an amount equal to the value of said state must (a) confirm that an investigation or prosecution is
monetary instrument or property. This provision shall apply in being conducted in respect of a money launderer named therein
both civil and criminal forfeiture. or that he has been convicted of any money laundering offense;
(b) state the grounds on which any person is being investigated
  or prosecuted for money laundering or the details of his
conviction; (c) give sufficient particulars as to the identity of said
RULE 7 person; (d) give particulars sufficient to identify any covered
MUTUAL ASSISTANCE AMONG STATES institution believed to have any information, document, material
92
or object which may be of assistance to the investigation or “5. any circumstance relating to the transaction which is observed
prosecution; (e) ask from the covered institution concerned any to deviate from the profile of the client and/or the client’s past
information, document, material or object which may be of transactions with the covered institution;
assistance to the investigation or prosecution; (f) specify the
manner in which and to whom said information, document, “6. the transaction is in any way related to an unlawful activity or
material or object obtained pursuant to said request, is to be offense under this Act that is about to be, is being or has been
produced; (g) give all the particulars necessary for the issuance committed; or
by the court in the requested state of the writs, orders or
processes needed by the requesting state; and (8) contain such
“7. any transaction that is similar or analogous to any of the
other information as may assist in the execution of the request. foregoing.”
 
Sec. 6. Authentication of Documents. - For purposes of Section 13
of the AMLA and Rule 7 of these Rules, a document is SECTION 3. Section 3(i) of the same Act is further amended to
authenticated if the same is signed or certified by a judge, read as follows:
magistrate or equivalent officer in or of, the requesting state, and
authenticated by the oath or affirmation of a witness or sealed “(i) ‘Unlawful activity’ refers to any act or omission or series or
with an official or public seal of a minister, secretary of state, or combination thereof involving or having direct relation to the
officer in or of, the government of the requesting state, or of the following:
person administering the government or a department of the
requesting territory, protectorate or colony. The certificate of “(1) Kidnapping for ransom under Article 267 of Act No. 3815,
authentication may also be made by a secretary of the embassy otherwise known as the Revised Penal Code, as amended;
or legation, consul general, consul, vice consul, consular agent or
any officer in the foreign service of the Philippines stationed in the
“(2) Sections 4, 5, 6, 8, 9, 10, 12, 13, 14, 15, and 16 of Republic
foreign state in which the record is kept, and authenticated by the
Act No. 9165, otherwise known as the Comprehensive Dangerous
seal of his office. Drugs Act of 2002;
Sec. 7. Extradition. – The Philippines shall negotiate for the
inclusion of money laundering offenses as defined under Section 4 “(3) Section 3 paragraphs B, C, E, G, H and I of Republic Act No.
of the AMLA among the extraditable offenses in all future treaties. 3019, as amended, otherwise known as the Anti-Graft and
Corrupt Practices Act;

REPUBLIC ACT NO. 9194

“(4) Plunder under Republic Act No. 7080, as amended;

AN ACT AMENDING REPUBLIC ACT NO. 9160, OTHERWISE

KNOWN AS THE “ANTI-MONEY LAUNDERING ACT OF 2001” “(5) Robbery and extortion under Articles 294, 295, 296, 299,
300, 301 and 302 of the Revised Penal Code, as amended;

Be it enacted by the Senate and House of Representative of the

Philippines in Congress assembled: “(6) Jueteng and Masiao punished as illegal gambling under
Presidential Decree No. 1602;

SECTION 1. Section 3, paragraph (b), of Republic Act No. 9160 is

hereby amended as follows: “(7) Piracy on the high seas under the Revised Penal Code, as
amended and Presidential Decree No. 532;

“(b) ‘Covered transaction’ is a transaction in cash or other

equivalent monetary instrument involving a total amount in “(8) Qualified theft under Article 310 of the Revised Penal Code,
excess of Five hundred thousand pesos (P500,000.00) within one as amended;
(1) banking day.”
“(9) Swindling under Article 315 of the Revised Penal Code, as
SECTION 2. Section 3 of the same Act is further amended by amended;
inserting between paragraphs (b) and (c) a new paragraph
designated as (b-1) to read as follows: “(10) Smuggling under Republic Act Nos. 455 and 1937; SEIDAC

“(b-1) ‘Suspicious transaction’ are transactions with covered “(11) Violations under Republic Act No. 8792, otherwise known as
institutions, regardless of the amounts involved, where any of the the Electronic Commerce Act of 2000;
following circumstances exist:

“(12) Hijacking and other violations under Republic Act No. 6235;
“1. there is no underlying legal or trade obligation, purpose or destructive arson and murder, as defined under the Revised Penal
economic justification; Code, as amended, including those perpetrated by terrorists
against non-combatant persons and similar targets;
“2. the client is not properly identified;
“(13) Fraudulent practices and other violations under Republic Act
“3. the amount involved is not commensurate with the business or No. 8799, otherwise known as the Securities Regulation Code of
financial capacity of the client; 2000;

“4. taking into account all known circumstances, it may be “(14) Felonies or offenses of a similar nature that are punishable
perceived that the client’s transaction is structured in order to under the penal laws of other countries.”
avoid being the subject of reporting requirements under the Act;
SECTION 4. Section 4 of the same Act is hereby amended to read
as follows:

93
“SEC. 4. Money Laundering Offense. — Money laundering is a laundering, the viable means of preventing money laundering and
crime whereby the proceeds of an unlawful activity as herein the effective ways of prosecuting and punishing offenders;
defined are transacted, thereby making them appear to have
originated from legitimate sources. It is committed by the
“(10) to enlist the assistance of any branch, department, bureau,
following:
office, agency or instrumentality of the government, including
government-owned and -controlled corporations, in undertaking
“(a) Any person knowing that any monetary instrument or any and all anti-money laundering operations, which may include
property represents, involves, or relates to, the proceeds of any the use of its personnel, facilities and resources for the more
unlawful activity, transacts or attempts to transact said monetary resolute prevention, detection and investigation of money
instrument or property. laundering offenses and prosecution of offenders; and

“(b) Any person knowing that any monetary instrument or “(11) to impose administrative sanctions for the violation of laws,
property involves the proceeds of any unlawful activity, performs rules, regulations and orders and resolutions issued pursuant
or fails to perform any act as a result of which he facilitates the thereto.”
offense of money laundering referred to in paragraph (a) above.
SECTION 6. Section 9(c) of the same Act is hereby amended to
“(c) Any person knowing that any monetary instrument or read as follows:
property is required under this Act to be disclosed and filed with
the Anti-Money Laundering Council (AMLC), fails to do so.”
“(c) Reporting of Covered and Suspicious Transactions. —
Covered institutions shall report to the AMLC all covered
SECTION 5. Section 7 of the same Act is hereby amended as transactions and suspicious transactions within five (5) working
follows: days from occurrence thereof, unless the Supervising Authority
prescribes a longer period not exceeding ten (10) working days.
“SEC. 7. Creation of Anti-Money Laundering Council (AMLC). —
The Anti-Money Laundering Council is hereby created and shall be “Should a transaction be determined to be both a covered
composed of the Governor of the Bangko Sentral ng Pilipinas as transaction and a suspicious transaction, the covered institution
chairman, the Commissioner of the Insurance Commission and shall be required to report the same as a suspicious transaction.
the Chairman of the Securities and Exchange Commission as
members. The AMLC shall act unanimously in the discharge of its
“When reporting covered or suspicious transactions to the AMLC,
functions as defined hereunder:
covered institutions and their officers and employees shall not be
deemed to have violated Republic Act No. 1405, as amended,
“(1) to require and receive covered or suspicious transaction Republic Act No. 6426, as amended, Republic Act No. 8791 and
reports from covered institutions; other similar laws, but are prohibited from communicating,
directly or indirectly, in any manner or by any means, to any
person, the fact that a covered or suspicious transaction report
“(2) to issue orders addressed to the appropriate Supervising
was made, the contents thereof, or any other information in
Authority or the covered institution to determine the true identity
relation thereto. In case of violation thereof, the concerned officer
of the owner of any monetary instrument or property subject of a
and employee of the covered institution shall be criminally liable.
covered transaction or suspicious transaction report or request for
However, no administrative, criminal or civil proceedings, shall lie
assistance from a foreign State, or believed by the Council, on the
against any person for having made a covered or suspicious
basis of substantial evidence, to be, in whole or in part, wherever
transaction report in the regular performance of his duties in good
located, representing, involving, or related to, directly or
faith, whether or not such reporting results in any criminal
indirectly, in any manner or by any means, the proceeds of an
prosecution under this Act or any other law.
unlawful activity.

“When reporting covered or suspicious transactions to the AMLC,

“(3) to institute civil forfeiture proceedings and all other remedial
covered institutions and their officers and employees are
proceedings through the Office of the Solicitor General;
prohibited from communicating directly or indirectly, in any
manner or by any means, to any person or entity, the media, the
“(4) to cause the filing of complaints with the Department of fact that a covered or suspicious transaction report was made, the
Justice or the Ombudsman for the prosecution of money contents thereof, or any other information in relation thereto.
laundering offenses; Neither may such reporting be published or aired in any manner
or form by the mass media, electronic mail, or other similar
devices. In case of violation thereof, the concerned officer and
“(5) to investigate suspicious transactions and covered employee of the covered institution and media shall be held
transactions deemed suspicious after an investigation by AMLC, criminally liable.”
money laundering activities, and other violations of this Act;

SECTION 7. Section 10 of the same Act is hereby amended to

“(6) to apply before the Court of Appeals, ex parte, for the read as follows:
freezing of any monetary instrument or property alleged to be the
proceeds of any unlawful activity as defined in Section 3(i) hereof;
“SEC. 10. Freezing of Monetary Instrument or Property. — The
Court of Appeals, upon application ex parte by the AMLC and after
“(7) to implement such measures as may be necessary and determination that probable cause exists that any monetary
justified under this Act to counteract money laundering; instrument or property is in any way related to an unlawful
activity as defined in Section 3(i) hereof, may issue a freeze order
“(8) to receive and take action in respect of, any request from which shall be effective immediately. The freeze order shall be for
foreign states for assistance in their own anti-money laundering a period of twenty (20) days unless extended by the court.”
operations provided in this Act; SEIDAC

“(9) to develop educational programs on the pernicious effects of SECTION 8. Section 11 of the same Act is hereby amended to
money laundering, the methods and techniques used in money read as follows:

94
“SEC. 11. Authority to Inquire into Bank Deposits. — Be it enacted by the Senate and House of Representatives of the
Notwithstanding the provisions of Republic Act No. 1405, as Philippines in Congress assembled:
amended, Republic Act No. 6426, as amended, Republic Act No.
8791, and other laws, the AMLC may inquire into or examine any
SECTION 1. Section 10 of Republic Act No. 9160, as amended, is
particular deposit or investment with any banking institution or
hereby amended to read as follows:
non-bank financial institution upon order of any competent court
in cases of violation of this Act, when it has been established that
there is probable cause that the deposits or investments are “SEC. 10. Freezing of Monetary Instrument or Property. – Upon
related to an unlawful activity as defined in Section 3(i) hereof or verified ex parte petition by the AMLC and after determination
a money laundering offense under Section 4 hereof; except that that probable cause exists that any monetary instrument or
no court order shall be required in cases involving unlawful property is in any way related to an unlawful activity as defined in
activities defined in Sections 3(i)(1), (2) and (12). Section 3(i) hereof, the Court of Appeals may issue a freeze
order, which shall be effective immediately. The freeze order shall
be for a period of twenty (20) days unless extended by the court.
“To ensure compliance with this Act, the Bangko Sentral ng
In any case, the court should act on the petition to freeze within
Pilipinas (BSP) may inquire into or examine any deposit or
twenty-four (24) hours from filing of the petition. If the
investment with any banking institution or non-bank financial
application is filed a day before a nonworking day, the
institution when the examination is made in the course of a
computation of the twenty-four (24)-hour period shall exclude the
periodic or special examination, in accordance with the rules of
nonworking days.”
examination of the BSP.”

“A person whose account has been frozen may file a motion to lift
SECTION 9. Section 14, paragraphs (c) and (d) of the same Act is
the freeze order and the court must resolve this motion before the
hereby amended to read as follows:
expiration of the twenty (20)-day original freeze order.”

“(c) Malicious Reporting. Any person who, with malice, or in bad

“No court shall issue a temporary restraining order or a writ of
faith, reports or files a completely unwarranted or false
injunction against any freeze order, except the Supreme Court.”
information relative to money laundering transaction against any
person shall be subject to a penalty of six (6) months to four (4)
years imprisonment and a fine of not less than One hundred SEC. 2. Section 11 of the same Act is hereby amended to read as
thousand Philippine pesos (Php 100,000.00) but not more than follows:
Five hundred thousand Philippine pesos (Php 500,000.00), at the
discretion of the court: Provided, That the offender is not entitled
to avail the benefits of the Probation Law. “SEC. 11. Authority to Inquire into Bank Deposits. –
Notwithstanding the provisions of Republic Act No. 1405, as
amended; Republic Act No. 6426, as amended; Republic Act No.
“If the offender is a corporation, association, partnership or any 8791; and other laws, the AMLC may inquire into or examine any
juridical person, the penalty shall be imposed upon the particular deposit or investment, including related accounts, with
responsible officers, as the case may be, who participated in, or any banking institution or non-bank financial institution upon
allowed by their gross negligence, the commission of the crime. If order of any competent court based on an ex parte application in
the offender is a juridical person, the court may suspend or cases of violations of this Act, when it has been established that
revoke its license. If the offender is an alien, he shall, in addition there is probable cause that the deposits or investments,
to the penalties herein prescribed, be deported without further including related accounts involved, are related to an unlawful
proceedings after serving the penalties herein prescribed. If the activity as defined in Section 3(i) hereof or a money laundering
offender is a public official or employee, he shall, in addition to offense under Section 4 hereof; except that no court order shall
the penalties prescribed herein, suffer perpetual or temporary be required in cases involving activities defined in Section 3(i)(1),
absolute disqualification from office, as the case may be. (2), and (12) hereof, and felonies or offenses of a nature similar
to those mentioned in Section 3(i)(1), (2), and (12), which are
Punishable under the penal laws of other countries, and terrorism
“Any public official or employee who is called upon to testify and
and conspiracy to commit terrorism as defined and penalized
refuses to do the same or purposely fails to testify shall suffer the
under Republic Act No. 9372.”
same penalties prescribed herein.

“The Court of Appeals shall act on the application to inquire into

“(d) Breach of Confidentiality. The punishment of imprisonment
or examine any deposit or investment with any banking institution
ranging from three (3) to eight (8) years and a fine of not less
or non-bank financial institution within twenty-four (24) hours
than Five hundred thousand Philippine pesos (Php 500,000.00)
from filing of the application.”
but not more than One million Philippine pesos (Php
1,000,000.00) shall be imposed on a person convicted for a
violation under Section 9(c). In the case of a breach of “To ensure compliance with this Act, the Bangko Sentral ng
confidentiality that is published or reported by media, the Pilipinas may, in the course of a periodic or special examination,
responsible reporter, writer, president, publisher, manager and check the compliance of a Covered institution with the
editor-in-chief shall be liable under this Act.” requirements of the AMLA and its implementing rules and
regulations.”
SECTION 10. Section 15 of Republic Act No. 9160 is hereby
deleted. “For purposes of this section, ‘related accounts’ shall refer to
accounts, the funds and sources of which originated from and/or
are materially linked to the monetary instrument(s) or
[REPUBLIC ACT NO. 10167]
property(ies) subject of the freeze order(s).”

AN ACT TO FURTHER STRENGTHEN THE ANTI-MONEY

“A court order ex parte must first be obtained before the AMLC
LAUNDERING LAW, AMENDING FOR THE PURPOSE
can inquire into these related Accounts: Provided, That the
SECTIONS 10 AND 11 OF REPUBLIC ACT NO. 9160,
procedure for the ex parte application of the ex parte court order
OTHERWISE KNOWN AS THE “ANTI-MONEY LAUNDERING
for the principal account shall be the same with that of the related
ACT OF 2001”, AS AMENDED, AND FOR OTHER PURPOSES
accounts.”

95
“The authority to inquire into or examine the main account and (iv) creation, operation or management of juridical persons or
the related accounts shall comply with the requirements of Article arrangements, and buying and selling business entities.
III, Sections 2 and 3 of the 1987 Constitution, which are hereby
incorporated by reference.”
“Notwithstanding the foregoing, the term ‘covered persons’ shall
exclude lawyers and accountants acting as independent legal
[REPUBLIC ACT NO. 10365] professionals in relation to information concerning their clients or
where disclosure of information would compromise client
confidences or the attorney-client relationship: Provided, That
AN ACT FURTHER STRENGTHENING THE ANTI-MONEY
these lawyers and accountants are authorized to practice in the
LAUNDERING LAW, AMENDING FOR THE PURPOSE
Philippines and shall continue to be subject to the provisions of
REPUBLIC ACT NO. 9160, OTHERWISE KNOWN AS THE
their respective codes of conduct and/or professional
“ANTI-MONEY LAUNDERING ACT OF 2001”, AS AMENDED
responsibility or any of its amendments.”

Be it enacted by the Senate and House of Representatives of the

SEC. 2. Section 3(i) of the same Act is hereby amended to read as
Philippines in Congress assembled:
follows:

SECTION 1. Section 3(a) of Republic Act No. 9160, as amended,

“(i) ‘Unlawful activity’ refers to any act or omission or series or
is hereby amended to read as follows:
combination thereof involving or having direct relation to the
following:
“(a) ‘Covered persons’, natural or juridical, refer to:
“(1) Kidnapping for ransom under Article 267 of Act No. 3815,
“(1) banks, non-banks, quasi-banks, trust entities, foreign otherwise known as the Revised Penal Code, as amended;
exchange dealers, pawnshops, money changers, remittance and
transfer companies and other similar entities and all other persons
“(2) Sections 4, 5, 6, 8, 9, 10, 11, 12, 13, 14, 15 and 16 of
and their subsidiaries and affiliates supervised or regulated by the
Republic Act No. 9165, otherwise known as the Comprehensive
Bangko Sentral ng Pilipinas (BSP);
Dangerous Drugs Act of 2002;

“(2) insurance companies, pre-need companies and all other

“(3) Section 3 paragraphs B, C, E, G, H and I of Republic Act No.
persons supervised or regulated by the Insurance Commission
3019, as amended, otherwise known as the Anti-Graft and
(IC);
Corrupt Practices Act;

“(3) (i) securities dealers, brokers, salesmen, investment houses

“(4) Plunder under Republic Act No. 7080, as amended;
and other similar persons managing securities or rendering
services as investment agent, advisor, or consultant, (ii) mutual
funds, close-end investment companies, common trust funds, and “(5) Robbery and extortion under Articles 294, 295, 296, 299,
other similar persons, and (iii) other entities administering or 300, 301 and 302 of the Revised Penal Code, as amended;
otherwise dealing in currency, commodities or financial derivatives
based thereon, valuable objects, cash substitutes and other
“(6) Jueteng and Masiao punished as illegal gambling under
similar monetary instruments or property supervised or regulated
Presidential Decree No. 1602;
by the Securities and Exchange Commission (SEC);

“(7) Piracy on the high seas under the Revised Penal Code, as
“(4) jewelry dealers in precious metals, who, as a business, trade
amended and Presidential Decree No. 532;
in precious metals, for transactions in excess of One million pesos
(P1,000,000.00);
“(8) Qualified theft under Article 310 of the Revised Penal Code,
as amended;
“(5) jewelry dealers in precious stones, who, as a business, trade
in precious stones, for transactions in excess of One million pesos
(P1,000,000.00); “(9) Swindling under Article 315 and Other Forms of Swindling
under Article 316 of the Revised Penal Code, as amended;
“(6) company service providers which, as a business, provide any
of the following services to third parties: (i) acting as a formation “(10) Smuggling under Republic Act Nos. 455 and 1937;
agent of juridical persons; (ii) acting as (or arranging for another
person to act as) a director or corporate secretary of a company,
a partner of a partnership, or a similar position in relation to other “(11) Violations of Republic Act No. 8792, otherwise known as the
juridical persons; (iii) providing a registered office, business Electronic Commerce Act of 2000;
address or accommodation, correspondence or administrative
address for a company, a partnership or any other legal person or “(12) Hijacking and other violations under Republic Act No. 6235;
arrangement; and (iv) acting as (or arranging for another person destructive arson and murder, as defined under the Revised Penal
to act as) a nominee shareholder for another person; and Code, as amended;

“(7) persons who provide any of the following services: “(13) Terrorism and conspiracy to commit terrorism as defined
and penalized under Sections 3 and 4 of Republic Act No. 9372;
(i) managing of client money, securities or other assets;
“(14) Financing of terrorism under Section 4 and offenses
(ii) management of bank, savings or securities accounts; punishable under Sections 5, 6, 7 and 8 of Republic Act No.
10168, otherwise known as the Terrorism Financing Prevention
and Suppression Act of 2012:
(iii) organization of contributions for the creation, operation or
management of companies; and

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“(15) Bribery under Articles 210, 211 and 211-A of the Revised “(33) Fraudulent practices and other violations under Republic Act
Penal Code, as amended, and Corruption of Public Officers under No. 8799, otherwise known as the Securities Regulation Code of
Article 212 of the Revised Penal Code, as amended; 2000; and

“(16) Frauds and Illegal Exactions and Transactions under Articles “(34) Felonies or offenses of a similar nature that are punishable
213, 214, 215 and 216 of the Revised Penal Code, as amended; under the penal laws of other countries.”

“(17) Malversation of Public Funds and Property under Articles SEC. 3. Section 3 of the same Act shall have new paragraphs (j)
217 and 222 of the Revised Penal Code, as amended; and (k).

“(18) Forgeries and Counterfeiting under Articles 163, 166, 167, “(j) Precious metals’ shall mean gold, silver, platinum, palladium,
168, 169 and 176 of the Revised Penal Code, as amended; rhodium, ruthenium, iridium and osmium. These include alloys of
precious metals, solders and plating chemicals such as rhodium
and palladium plating solutions and potassium gold cyanide and
“(19) Violations of Sections 4 to 6 of Republic Act No. 9208,
potassium silver cyanide and silver cyanide in salt solution.
otherwise known as the Anti-Trafficking in Persons Act of 2003;

“(k) ‘Precious stones’ shall mean diamond, ruby, emerald,

“(20) Violations of Sections 78 to 79 of Chapter IV, of Presidential
sapphire, opal, amethyst, beryl, topaz, and garnet that are used
Decree No. 705, otherwise known as the Revised Forestry Code of
in jewelry making, including those formerly classified as semi-
the Philippines, as amended;
precious stones.”

“(21) Violations of Sections 86 to 106 of Chapter VI, of Republic

SEC. 4. Section 4 of the same Act is hereby amended to read as
Act No. 8550, otherwise known as the Philippine Fisheries Code of
follows:
1998;

“SEC. 4. Money Laundering Offense. – Money laundering is

“(22) Violations of Sections 101 to 107, and 110 of Republic Act
committed by any person who, knowing that any monetary
No. 7942, otherwise known as the Philippine Mining Act of 1995;
instrument or property represents, involves, or relates to the
proceeds of any unlawful activity:
“(23) Violations of Section 27(c), (e), (f), (g) and (i), of Republic
Act No. 9147, otherwise known as the Wildlife Resources
“(a) transacts said monetary instrument or property;
Conservation and Protection Act;

“(b) converts, transfers, disposes of, moves, acquires, possesses

“(24) Violation of Section 7(b) of Republic Act No. 9072, otherwise
or uses said monetary instrument or property;
known as the National Caves and Cave Resources Management
Protection Act;
“(c) conceals or disguises the true nature, source, location,
disposition, movement or ownership of or rights with respect to
“(25) Violation of Republic Act No. 6539, otherwise known as the
said monetary instrument or property;
Anti-Carnapping Act of 2002, as amended;

“(d) attempts or conspires to commit money laundering offenses

“(26) Violations of Sections 1, 3 and 5 of Presidential Decree No.
referred to in paragraphs (a), (b) or (c);
1866, as amended, otherwise known as the decree Codifying the
Laws on Illegal/Unlawful Possession, Manufacture, Dealing In,
Acquisition or Disposition of Firearms, Ammunition or Explosives; “(e) aids, abets, assists in or counsels the commission of the
money laundering offenses referred to in paragraphs (a), (b) or
(c) above; and
“(27) Violation of Presidential Decree No. 1612, otherwise known
as the Anti-Fencing Law;
“(f) performs or fails to perform any act as a result of which he
facilitates the offense of money laundering referred to in
“(28) Violation of Section 6 of Republic Act No. 8042, otherwise
paragraphs (a), (b) or (c) above.
known as the Migrant Workers and Overseas Filipinos Act of 1995,
as amended by Republic Act No. 10022;
“Money laundering is also committed by any covered person who,
knowing that a covered or suspicious transaction is required under
“(29) Violation of Republic Act No. 8293, otherwise known as the
this Act to be reported to the Anti-Money Laundering Council
Intellectual Property Code of the Philippines;
(AMLC), fails to do so.”

“(30) Violation of Section 4 of Republic Act No. 9995, otherwise

SEC. 5. Section 6(a) of the same Act is hereby amended to read
known as the Anti-Photo and Video Voyeurism Act of 2009;
as follows:

“(31) Violation of Section 4 of Republic Act No. 9775, otherwise

“SEC. 6. Prosecution of Money Laundering. –
known as the Anti-Child Pornography Act of 2009;

“(a) Any person may be charged with and convicted of both the
“(32) Violations of Sections 5, 7, 8, 9, 10(c), (d) and (e), 11, 12
offense of money laundering and the unlawful activity as herein
and 14 of Republic Act No. 7610, otherwise known as the Special
defined.
Protection of Children Against Abuse, Exploitation and
Discrimination;
“(b) The prosecution of any offense or violation under this Act
shall proceed independently of any proceeding relating to the
unlawful activity.”

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SEC. 6. Section 7 of the same Act is hereby amended to read as SEC. 8. Section 10 of the same Act, as amended by Republic Act
follows: No. 10167, is hereby amended to read as follows:

“SEC. 7. Creation of Anti-Money Laundering Council (AMLC). – “SEC. 10. Freezing of Monetary Instrument or Property. – Upon a
The Anti-Money Laundering Council is hereby created and shall be verified ex parte petition by the AMLC and after determination
composed of the Governor of the Bangko Sentral ng Pilipinas as that probable cause exists that any monetary instrument or
Chairman, the Commissioner of the Insurance Commission and property is in any way related to an unlawful activity as defined in
the Chairman of the Securities and Exchange Commission, as Section 3(i) hereof, the Court of Appeals may issue a freeze order
members. The AMLC shall act unanimously in the discharge of its which shall be effective immediately, and which shall not exceed
functions as defined hereunder: six (6) months depending upon the circumstances of the case:
Provided, That if there is no case filed against a person whose
account has been frozen within the period determined by the
“x x x
court, the freeze order shall be deemed ipso facto lifted: Provided,
further, That this new rule shall not apply to pending cases in the
“(6) to apply before the Court of Appeals, ex parte, for the courts. In any case, the court should act on the petition to freeze
freezing of any monetary instrument or property alleged to be within twenty-four (24) hours from filing of the petition. If the
laundered, proceeds from, or instrumentalities used in or intended application is filed a day before a nonworking day, the
for use in any unlawful activity as defined in Section 3(i) hereof; computation of the twenty-four (24)-hour period shall exclude the
nonworking days.
“x x x
“A person whose account has been frozen may file a motion to lift
the freeze order and the court must resolve this motion before the
“(12) to require the Land Registration Authority and all its expiration of the freeze order.
Registries of Deeds to submit to the AMLC, reports on all real
estate transactions involving an amount in excess of Five hundred
thousand pesos (P500,000.00) within fifteen (15) days from the “No court shall issue a temporary restraining order or a writ of
date of registration of the transaction, in a form to be prescribed injunction against any freeze order, except the Supreme Court.”
by the AMLC. The AMLC may also require the Land Registration
Authority and all its Registries of Deeds to submit copies of
SEC. 9. Section 12 of the same Act is hereby amended to read as
relevant documents of all real estate transactions.”
follows:

SEC. 7. Section 9(c), paragraphs 1 and 4 of the same Act are

“(a) Civil Forfeiture. – Upon determination by the AMLC that
hereby amended to read as follows:
probable cause exists that any monetary instrument or property is
in any way related to an unlawful activity as defined in Section
“SEC. 9. Prevention of Money Laundering; Customer Identification 3(i) or a money laundering offense under Section 4 hereof, the
Requirements and Record Keeping. – AMLC shall file with the appropriate court through the Office of the
Solicitor General, a verified ex parte petition for forfeiture, and
the Rules of Court on Civil Forfeiture shall apply.
“(a) x x x

“The forfeiture shall include those other monetary instrument or

“(b) x x x property having an equivalent value to that of the monetary
instrument or property found to be related in any way to an
“(c) Reporting of Covered and Suspicious Transactions. – Covered unlawful activity or a money laundering offense, when with due
persons shall report to the AMLC all covered transactions and diligence, the former cannot be located, or it has been
suspicious transactions within five (5) working days from substantially altered, destroyed, diminished in value or otherwise
occurrence thereof, unless the AMLC prescribes a different period rendered worthless by any act or omission, or it has been
not exceeding fifteen (15) working days. concealed, removed, converted, or otherwise transferred, or it is
located outside the Philippines or has been placed or brought
outside the jurisdiction of the court, or it has been commingled
“Lawyers and accountants acting as independent legal with other monetary instrument or property belonging to either
professionals are not required to report covered and suspicious the offender himself or a third person or entity, thereby rendering
transactions if the relevant information was obtained in the same difficult to identify or be segregated for purposes of
circumstances where they are subject to professional secrecy or forfeiture.
legal professional privilege.

“(b) Claim on Forfeited Assets. – Where the court has issued an

“x x x order of forfeiture of the monetary instrument or property in a
criminal prosecution for any money laundering offense defined
“x x x under Section 4 of this Act, the offender or any other person
claiming an interest therein may apply, by verified petition, for a
declaration that the same legitimately belongs to him and for
“When reporting covered or suspicious transactions to the AMLC, segregation or exclusion of the monetary instrument or property
covered persons and their officers and employees are prohibited corresponding thereto. The verified petition shall be filed with the
from communicating, directly or indirectly, in any manner or by court which rendered the judgment of forfeiture, within fifteen
any means, to any person or entity, the media, the fact that a (15) days from the date of the finality of the order of forfeiture, in
covered or suspicious transaction has been reported or is about to default of which the said order shall become final and executor.
be reported, the contents of the report, or any other information This provision shall apply in both civil and criminal forfeiture.
in relation thereto. Neither may such reporting be published or
aired in any manner or form by the mass media”, electronic mail,
or other similar devices. In case of violation thereof, the “(c) Payment in Lieu of Forfeiture. – Where the court has issued
concerned officer and employee of the covered person and media an order of forfeiture of the monetary instrument or property
shall be held criminally liable.” subject of a money laundering offense defined under Section 4,
and said order cannot be enforced because any particular
monetary instrument or property cannot, with due diligence, be
located, or it has been substantially altered, destroyed,
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diminished in value or otherwise rendered worthless by any act or “(g) The provision of this law shall not be construed or
omission, directly or indirectly, attributable to the offender, or it implemented in a manner that will discriminate against certain
has been concealed, removed, converted, or otherwise transferred customer types, such as politically-exposed persons, as well as
to prevent the same from being found or to avoid forfeiture their relatives, or against a certain religion, race or ethnic origin,
thereof, or it is located outside the Philippines or has been placed or such other attributes or profiles when used as the only basis to
or brought outside the jurisdiction of the court, or it has been deny these persons access to the services provided by the
commingled with other monetary instruments or property covered persons. Whenever a bank, or quasi-bank, financial
belonging to either the offender himself or a third person or institution or whenever any person or entity commits said
entity, thereby rendering the same difficult to identify or be discriminatory act, the person or persons responsible for such
segregated for purposes of forfeiture, the court may, instead of violation shall be subject to sanctions as may be deemed
enforcing the order of forfeiture of the monetary instrument or appropriate by their respective regulators.”
property or part thereof or interest therein, accordingly order the
convicted offender to pay an amount equal to the value of said
SEC. 11. New sections are hereby inserted after Section 19 of the
monetary instrument or property. This provision shall apply in
same Act, as amended, to read as follows:
both civil and criminal forfeiture.”

“SEC. 20. Non-intervention in the Bureau of Internal Revenue

SEC. 10. Section 14 of the same Act, as amended, is hereby
(BIR) Operations. – Nothing contained in this Act nor in related
further amended to read as follows:
antecedent laws or existing agreements shall be construed to
allow the AMLC to participate in any manner in the operations of
“SEC. 14. Penal Provisions. – (a) Penalties for the Crime of Money the BIR.”
Laundering. The penalty of imprisonment ranging from seven (7)
to fourteen (14) years and a fine of not less than Three million
“SEC. 21. The authority to inquire into or examine the main
Philippine pesos (Php3,000,000.00) but not more than twice the
account and the related accounts shall comply with the
value of the monetary instrument or property involved in the
requirements of Article III, Sections 2 and 3 of the 1987
offense, shall be imposed upon a person convicted under Section
Constitution, which are hereby incorporated by reference.
4(a), (b), (c) and (d) of this Act.
Likewise, the constitutional injunction against ex post facto laws
and bills of attainder shall be respected in the implementation of
“The penalty of imprisonment from four (4) to seven (7) years this Act.”
and a fine of not less than One million five hundred thousand
Philippine pesos (Php1,500,000.00) but not more than Three
million Philippine pesos (Php3,000,000.00), shall be imposed upon
a person convicted under Section 4(e) and (f) of this Act.

“The penalty of imprisonment from six (6) months to four (4)

years or a fine of not less than One hundred thousand Philippine
pesos (Php100,000.00) but not more than Five hundred thousand
Philippine pesos (Php500,000.00), or both, shall be imposed on a
person convicted under the last paragraph of Section 4 of this Act.

BATAS PAMBANSA BLG. 22

“(b) x x x

 Section 1. Checks without sufficient funds. - Any person

“(c) x x x
who makes or draws and issues any check to apply on
account or for value, knowing at the time of issue that
“(d) x x x he does not have sufficient funds in or credit with the
drawee bank for the payment of such check in full upon
its presentment, which check is subsequently dishonored
“(e) The penalty of imprisonment ranging from four (4) to seven
by the drawee bank for insufficiency of funds or credit or
(7) years and a fine corresponding to not more than two hundred
would have been dishonored for the same reason had
percent (200%) of the value of the monetary instrument or
not the drawer, without any valid reason, ordered the
property laundered shall be imposed upon the covered person, its
bank to stop payment, shall be punished by
directors, officers or pesonnel who knowingly participated in the
imprisonment of not less than thirty days but not more
commission of the crime of money laundering.
than one (1) year or by a fine of not less than but not
more than double the amount of the check which fine
“(f) Imposition of Administrative Sanctions. The imposition of the shall in no case exceed Two Hundred Thousand Pesos, or
administrative sanctions shall be without prejudice to the filing of both such fine and imprisonment at the discretion of the
criminal charges against the persons responsible for the violation. court.
 The same penalty shall be imposed upon any person
who, having sufficient funds in or credit with the drawee
“After due notice and hearing, the AMLC shall, at its discretion, bank when he makes or draws and issues a check, shall
impose sanctions, including monetary penalties, warning or fail to keep sufficient funds or to maintain a credit to
reprimand, upon any covered person, its directors, officers, cover the full amount of the check if presented within a
employees or any other person for the violation of this Act, its period of ninety (90) days from the date appearing
implementing rules and regulations, or for failure or refusal to thereon, for which reason it is dishonored by the drawee
comply with AMLC orders, resolutions and other issuances. Such bank.
monetary penalties shall be in amounts as may be determined by  Where the check is drawn by a corporation, company or
the AMLC to be appropriate, which shall not be more than Five entity, the person or persons who actually signed the
hundred thousand Philippine pesos (P500,000.00) per violation. check in behalf of such drawer shall be liable under this
Act.
“The AMLC may promulgate rules on fines and penalties taking  Section 2. Evidence of knowledge of insufficient funds. -
into consideration the attendant circumstances, such as the The making, drawing and issuance of a check payment
nature and gravity of the violation or irregularity. of which is refused by the drawee because of insufficient
funds in or credit with such bank, when presented within

99
 ninety (90) days from the date of the check, shall be Section 1. Short Title. This Decree shall be known as the Trust
prima facie evidence of knowledge of such insufficiency Receipts Law.
of funds or credit unless such maker or drawer pays the
holder thereof the amount due thereon, or makes
Section 2. Declaration of Policy. It is hereby declared to be the
arrangements for payment in full by the drawee of such
policy of the state (a) to encourage and promote the use of trust
check within (5) banking days after receiving notice that
receipts as an additional and convenient aid to commerce and
such check has not been paid by the drawee.
trade; (b) to provide for the regulation of trust receipts
 Section 3. Duty of drawee; rules of evidence. - It shall
transactions in order to assure the protection of the rights and
be the duty of the drawee of any check, when refusing
enforcement of obligations of the parties involved therein; and (c)
to pay the same to the holder thereof upon
to declare the misuse and/or misappropriation of goods or
presentment, to cause to be written, printed, or
proceeds realized from the sale of goods, documents or
stamped in plain language thereon, or attached thereto,
instruments released under trust receipts as a criminal offense
the reason for drawee's dishonor or refusal to pay the
punishable under Article Three hundred and fifteen of the Revised
same: Provided, That where there are no sufficient funds
Penal Code.
in or credit with such drawee bank, such fact shall
always be explicitly stated in the notice of dishonor or
refusal. In all prosecutions under this Act, the Section 3. Definition of terms. As used in this Decree, unless the
introduction in evidence of any unpaid and dishonored context otherwise requires, the term
check, having the drawee's refusal to pay stamped or
written thereon or attached thereto, with the reason
therefor as aforesaid, shall be prima facie evidence of (a) "Document" shall mean written or printed evidence
the making or issuance of said check, and the due of title to goods.
presentment to the drawee for payment and the
dishonor thereof, and that the same was properly (b) "Entrustee" shall refer to the person having or taking
dishonored for the reason written, stamped or attached possession of goods, documents or instruments under a
by the drawee on such dishonored check. trust receipt transaction, and any successor in interest of
 Not with standing receipt of an order to stop payment, such person for the purpose or purposes specified in the
the drawee shall state in the notice that there were no trust receipt agreement.
sufficient funds in or credit with such bank for the
payment in full of such check, if such be the fact.
 Section 4. Credit construed. - The word "credit" as used (c) "Entruster" shall refer to the person holding title over
herein shall be construed to mean an arrangement or the goods, documents, or instruments subject of a trust
understanding with the bank for the payment of such receipt transaction, and any successor in interest of such
check. person.
 Section 5. Liability under the Revised Penal Code. -
Prosecution under this Act shall be without prejudice to (d) "Goods" shall include chattels and personal property
any liability for violation of any provision of the Revised other than: money, things in action, or things so affixed
Penal Code. to land as to become a part thereof.

(e) "Instrument" means any negotiable instrument as

defined in the Negotiable Instrument Law; any
certificate of stock, or bond or debenture for the
payment of money issued by a public or private
corporation, or any certificate of deposit, participation
PD 115 certificate or receipt, any credit or investment
instrument of a sort marketed in the ordinary course of
business or finance, whereby the entrustee, after the
WHEREAS, the utilization of trust receipts, as a convenient issuance of the trust receipt, appears by virtue of
business device to assist importers and merchants solve their possession and the face of the instrument to be the
financing problems, had gained popular acceptance in owner. "Instrument" shall not include a document as
international and domestic business practices, particularly in defined in this Decree.
commercial banking transactions;
(f) "Purchase" means taking by sale, conditional sale,
WHEREAS, there is no specific law in the Philippines that governs lease, mortgage, or pledge, legal or equitable.
trust receipt transactions, especially the rights and obligations of
the parties involved therein and the enforcement of the said rights
in case of default or violation of the terms of the trust receipt (g) "Purchaser" means any person taking by purchase.
agreement;
(h) "Security Interest" means a property interest in
WHEREAS, the recommendations contained in the report on the goods, documents or instruments to secure performance
financial system which have been accepted, with certain of some obligations of the entrustee or of some third
modifications by the monetary authorities included, among persons to the entruster and includes title, whether or
others, the enactment of a law regulating the trust receipt not expressed to be absolute, whenever such title is in
transactions; substance taken or retained for security only.

NOW, THEREFORE, I, FERDINAND E. MARCOS, President of the (i) "Person" means, as the case may be, an individual,
Philippines, by virtue of the powers vested in me by the trustee, receiver, or other fiduciary, partnership,
Constitution, as Commander-in-Chief of all the Armed Forces of corporation, business trust or other association, and two
the Philippines, and pursuant to Proclamation No. 1081, dated more persons having a joint or common interest.
September 21, 1972, and General Order No. 1, dated September
22, 1972, as amended, and in order to effect the desired changes (j) "Trust Receipt" shall refer to the written or printed
and reforms in the social, economic, and political structure of our document signed by the entrustee in favor of the
society, do hereby order and decree and make as part of the law entruster containing terms and conditions substantially
of the land the following: complying with the provisions of this Decree. No further
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 formality of execution or authentication shall be proceeds of the sale of the goods, documents or instruments to
necessary to the validity of a trust receipt. the entruster to the extent of the amount owing to the entruster
or as appears in the trust receipt or to return the goods,
documents or instruments in the event of their non-sale within
(k) "Value" means any consideration sufficient to
the period specified therein.
support a simple contract.

The trust receipt may contain other terms and conditions agreed
Section 4. What constitutes a trust receipt transaction. A trust
upon by the parties in addition to those hereinabove enumerated
receipt transaction, within the meaning of this Decree, is any
provided that such terms and conditions shall not be contrary to
transaction by and between a person referred to in this Decree as
the provisions of this Decree, any existing laws, public policy or
the entruster, and another person referred to in this Decree as
morals, public order or good customs.
entrustee, whereby the entruster, who owns or holds absolute
title or security interests over certain specified goods, documents
or instruments, releases the same to the possession of the Section 6. Currency in which a trust receipt may be
entrustee upon the latter's execution and delivery to the entruster denominated. A trust receipt may be denominated in the
of a signed document called a "trust receipt" wherein the Philippine currency or any foreign currency acceptable and eligible
entrustee binds himself to hold the designated goods, documents as part of international reserves of the Philippines, the provisions
or instruments in trust for the entruster and to sell or otherwise of existing law, executive orders, rules and regulations to the
dispose of the goods, documents or instruments with the contrary notwithstanding: Provided, however, That in the case of
obligation to turn over to the entruster the proceeds thereof to trust receipts denominated in foreign currency, payment shall be
the extent of the amount owing to the entruster or as appears in made in its equivalent in Philippine currency computed at the
the trust receipt or the goods, documents or instruments prevailing exchange rate on the date the proceeds of sale of the
themselves if they are unsold or not otherwise disposed of, in goods, documents or instruments held in trust by the entrustee
accordance with the terms and conditions specified in the trust are turned over to the entruster or on such other date as may be
receipt, or for other purposes substantially equivalent to any of stipulated in the trust receipt or other agreements executed
the following: between the entruster and the entrustee.

1. In the case of goods or documents, (a) to sell the Section 7. Rights of the entruster. The entruster shall be entitled
goods or procure their sale; or (b) to manufacture or to the proceeds from the sale of the goods, documents or
process the goods with the purpose of ultimate sale: instruments released under a trust receipt to the entrustee to the
Provided, That, in the case of goods delivered under extent of the amount owing to the entruster or as appears in the
trust receipt for the purpose of manufacturing or trust receipt, or to the return of the goods, documents or
processing before its ultimate sale, the entruster shall instruments in case of non-sale, and to the enforcement of all
retain its title over the goods whether in its original or other rights conferred on him in the trust receipt provided such
processed form until the entrustee has complied fully are not contrary to the provisions of this Decree.
with his obligation under the trust receipt; or (c) to load,
unload, ship or tranship or otherwise deal with them in a
The entruster may cancel the trust and take possession of the
manner preliminary or necessary to their sale; or
goods, documents or instruments subject of the trust or of the
proceeds realized therefrom at any time upon default or failure of
2. In the case of instruments, the entrustee to comply with any of the terms and conditions of
the trust receipt or any other agreement between the entruster
and the entrustee, and the entruster in possession of the goods,
a) to sell or procure their sale or exchange; or
documents or instruments may, on or after default, give notice to
the entrustee of the intention to sell, and may, not less than five
b) to deliver them to a principal; or days after serving or sending of such notice, sell the goods,
documents or instruments at public or private sale, and the
entruster may, at a public sale, become a purchaser. The
c) to effect the consummation of some proceeds of any such sale, whether public or private, shall be
transactions involving delivery to a depository applied (a) to the payment of the expenses thereof; (b) to the
or register; or payment of the expenses of re-taking, keeping and storing the
goods, documents or instruments; (c) to the satisfaction of the
d) to effect their presentation, collection or entrustee's indebtedness to the entruster. The entrustee shall
renewal receive any surplus but shall be liable to the entruster for any
deficiency. Notice of sale shall be deemed sufficiently given if in
writing, and either personally served on the entrustee or sent by
The sale of goods, documents or instruments by a post-paid ordinary mail to the entrustee's last known business
person in the business of selling goods, documents or address.
instruments for profit who, at the outset of the
transaction, has, as against the buyer, general property
rights in such goods, documents or instruments, or who Section 8. Entruster not responsible on sale by entrustee. The
sells the same to the buyer on credit, retaining title or entruster holding a security interest shall not, merely by virtue of
other interest as security for the payment of the such interest or having given the entrustee liberty of sale or other
purchase price, does not constitute a trust receipt disposition of the goods, documents or instruments under the
transaction and is outside the purview and coverage of terms of the trust receipt transaction be responsible as principal
this Decree. or as vendor under any sale or contract to sell made by the
entrustee.

Section 5. Form of trust receipts; contents. A trust receipt need

not be in any particular form, but every such receipt must Section 9. Obligations of the entrustee. The entrustee shall (1)
substantially contain (a) a description of the goods, documents or hold the goods, documents or instruments in trust for the
instruments subject of the trust receipt; (2) the total invoice value entruster and shall dispose of them strictly in accordance with the
of the goods and the amount of the draft to be paid by the terms and conditions of the trust receipt; (2) receive the proceeds
entrustee; (3) an undertaking or a commitment of the entrustee in trust for the entruster and turn over the same to the entruster
(a) to hold in trust for the entruster the goods, documents or to the extent of the amount owing to the entruster or as appears
instruments therein described; (b) to dispose of them in the on the trust receipt; (3) insure the goods for their total value
manner provided for in the trust receipt; and (c) to turn over the against loss from fire, theft, pilferage or other casualties; (4) keep
101
said goods or proceeds thereof whether in money or whatever NOW, THEREFORE, I, FERDINAND E. MARCOS, President of the
form, separate and capable of identification as property of the Philippines, by virtue of the powers vested in me by the
entruster; (5) return the goods, documents or instruments in the Constitution, do hereby decree and order to be part of the law of
event of non-sale or upon demand of the entruster; and (6) the land, the following:
observe all other terms and conditions of the trust receipt not
contrary to the provisions of this Decree.
Section 1. Definition of Terms. For purposes of this Decree, the
following terms are defined:
Section 10. Liability of entrustee for loss. The risk of loss shall be
borne by the entrustee. Loss of goods, documents or instruments
a. Philippine Waters. include all bodies of water within Philippine
which are the subject of a trust receipt, pending their disposition,
Territory, such as rivers, streams, creeks, brooks, ponds,
irrespective of whether or not it was due to the fault or negligence
swamps, lagoons, gulfs, bays and seas and other bodies of water
of the entrustee, shall not extinguish his obligation to the
now existing, or which may hereafter exist in the provinces, cities,
entruster for the value thereof.
municipalities, municipal districts, and barrios; and the sea or
fresh water around, between and connecting each of the islands
Section 11. Rights of purchaser for value and in good faith. Any of the Philippine Archipelago, irrespective of its depth, breadth,
purchaser of goods from an entrustee with right to sell, or of length and dimension, and all other waters belonging to the
documents or instruments through their customary form of Philippines by historic or legal title, including the territorial sea,
transfer, who buys the goods, documents, or instruments for the seabed, the insular shelves and other submarine areas over
value and in good faith from the entrustee, acquires said goods, which the Philippines has sovereignty or jurisdiction.
documents or instruments free from the entruster's security
interest.
b. Fish and Fishery/Aquatic Products. fish includes all fishes and
other aquatic animals such as crustaceans (crabs, prawns,
Section 12. Validity of entruster's security interest as against shrimps and lobsters), mollusks (clams, mussels, scallops,
creditors. The entruster's security interest in goods, documents, oysters, snails and other shellfish). Fishery/aquatic products
or instruments pursuant to the written terms of a trust receipt include all products of aquatic resources in any form.
shall be valid as against all creditors of the entrustee for the
duration of the trust receipt agreement.
c. Fishing with the use of Explosives. means the use of dynamite,
other explosives, or chemical compound that contain combustible
Section 13. Penalty clause. The failure of an entrustee to turn elements or ingredients that, upon ignition by friction, concussion,
over the proceeds of the sale of the goods, documents or percussion, or detonation of all or parts of the compound, kill,
instruments covered by a trust receipt to the extent of the stupefy, disable or render unconscious any fish or fishery/aquatic
amount owing to the entruster or as appears in the trust receipt product. It shall also refer to the use of any other substance
or to return said goods, documents or instruments if they were and/or device that causes explosion capable of producing the said
not sold or disposed of in accordance with the terms of the trust harmful effects on fish or fishery/aquatic products.
receipt shall constitute the crime of estafa, punishable under the
provisions of Article Three hundred and fifteen, paragraph one (b)
d. Fishing with the use of Obnoxious or Poisonous Substance.
of Act Numbered Three thousand eight hundred and fifteen, as
means the use of any substance or chemical, whether in raw or
amended, otherwise known as the Revised Penal Code. If the
processed form, harmful or harmless, which kill, stupefy, disable,
violation or offense is committed by a corporation, partnership,
or render unconscious fish or fishery/aquatic products.
association or other juridical entities, the penalty provided for in
this Decree shall be imposed upon the directors, officers,
employees or other officials or persons therein responsible for the e. Electro-fishing. means the use of electricity generated by dry
offense, without prejudice to the civil liabilities arising from the cell batteries, electric generators or other source of electric power
criminal offense. to kill, stupefy, disable or render unconscious fish or
fishery/aquatic products. It shall include the use of rays or beams
of whatever nature, form or source of power.

f. Violation of Rules and Regulations. means violations of Fisheries

Administrative Orders, rules and regulations promulgated by the
PRESIDENTIAL DECREE No. 534 Secretary of National Resources.

DEFINING ILLEGAL FISHING AND PRESCRIBING STIFFER g. Persons. include natural and juridical persons, unless the
PENALTIES THEREFOR context intends otherwise.

WHEREAS, the productive potentialities of the vast fishing Section 2. Prohibition. It shall be unlawful for any person to
grounds and other fishery resources in the country upon which catch, take or gather or caused to be caught, taken or gathered
the people depend as major and cheap source of food are being fish or fishery/aquatic products in Philippine waters with the use
greatly reduced through the employment of various methods of of explosives, obnoxious or poisonous substances or by the use of
illegal fishing; electricity: Provided, that the Secretary of Natural Resources may,
subject to such safeguards and conditions he deems necessary,
allow for research, educational or scientific purposes only the use
WHEREAS, loss of human lives oftentimes occur and varied of explosives, obnoxious or poisonous substances or electricity to
diseases and ailments are suffered by those who partake of fish catch, take or gather fish or fishery/aquatic products in specified
and fishery products which have been illegally caught or areas.
gathered;

Section 3. Penalties. Violations of this Decree and the rules and

WHEREAS, in the interest and welfare of the people who depend regulations mentioned in paragraph (f) of Section 1 hereof shall
mostly upon fish and sea or marine products for their daily-food, be punished as follows:
positive steps must be adopted by the government through
interrelated programs and projects including subsidiary laws and
measures towards the implementation thereof. a. by imprisonment from 10 to 12 years, if explosives are used:
Provided, that if the explosion results (1) in physical injury to

102
person, the penalty shall be imprisonment from 12 to 20 years, or NOW, THEREFORE, I, FERDINAND E. MARCOS, President of the
(2) in the loss of human life, then the penalty shall be Philippines, by virtue of the powers vested in me by the
imprisonment from 20 years to life, or death; Constitution and pursuant to proclamation No. 1081, dated
September 21, 1972 and No. 1104, dated January 17, 1973 and
General Order No. 1, dated September 22, 1972, do hereby order
b. by imprisonment from 8 to 10 years, if obnoxious or poisonous
and decree as part of the law of the land the following:
substances are used: Provided, that if the use of such substances
results (1) in physical injury to any person, the penalty shall be
imprisonment from 10 to 12 years, or (2) in the loss of human Section 1. Title. This Decree shall be known as the Anti-Piracy
life, then the penalty shall be imprisonment from 20 years of life, and Anti-Highway Robbery Law of 1974.
or death;
Section 2. Definition of Terms. The following terms shall mean
c. by imprisonment from 6 months to 4 years, or by a fine of from and be understood, as follows:
P500 to P5,000 for violation of rules and regulations mentioned in
paragraph (f) of Section 1 hereof.
a. Philippine Waters. It shall refer to all bodies of water,
such as but not limited to, seas, gulfs, bays around,
If the violation is committed by a partnership, association or between and connecting each of the Islands of the
corporation, the managing partner or director or president who Philippine Archipelago, irrespective of its depth, breadth,
ordered or allowed the violation to be committed shall be liable length or dimension, and all other waters belonging to
together with other persons who actually committed the the Philippines by historic or legal title, including
prohibited acts. territorial sea, the sea-bed, the insular shelves, and
other submarine areas over which the Philippines has
sovereignty or jurisdiction.
Section 4. Dealing in illegally caught fish or fishery/aquatic
products. Any person who knowingly possesses, deals in, sells, or
in any manner disposes of, for profit, any fish, fishery-aquatic b. Vessel. Any vessel or watercraft used for transport of
products which have been illegally caught, taken or gathered passengers and cargo from one place to another through
shall, upon conviction by a competent court, be punished by Philippine Waters. It shall include all kinds and types of
imprisonment from 2 to 6 years. vessels or boats used in fishing.

c. Philippine Highway. It shall refer to any road, street,

passage, highway and bridges or other parts thereof, or
railway or railroad within the Philippines used by
persons, or vehicles, or locomotives or trains for the
movement or circulation of persons or transportation of
goods, articles, or property or both.

d. Piracy. Any attack upon or seizure of any vessel, or

the taking away of the whole or part thereof or its cargo,
equipment, or the personal belongings of its
complement or passengers, irrespective of the value
thereof, by means of violence against or intimidation of
persons or force upon things, committed by any person,
including a passenger or member of the complement of
said vessel, in Philippine waters, shall be considered as
piracy. The offenders shall be considered as pirates and
punished as hereinafter provided.

e. Highway Robbery/Brigandage. The seizure of any

person for ransom, extortion or other unlawful purposes,
PRESIDENTIAL DECREE No. 532 August 8, 1974
or the taking away of the property of another by means
of violence against or intimidation of person or force
ANTI-PIRACY AND ANTI-HIGHWAY ROBBERY LAW OF 1974 upon things of other unlawful means, committed by any
person on any Philippine Highway.
WHEREAS, reports from law-enforcement agencies reveal that
lawless elements are still committing acts of depredations upon Section 3. Penalties. Any person who commits piracy or highway
the persons and properties of innocent and defenseless robbery/brigandage as herein defined, shall, upon conviction by
inhabitants who travel from one place to another, thereby competents court be punished by:
distributing the peace, order and tranquility of the nation and
stunting the economic and social progress of the people;
a. Piracy. The penalty of reclusion temporal in its
medium and maximum periods shall be imposed. If
WHEREAS, such acts of depredations constitute either piracy or physical injuries or other crimes are committed as a
highway robbery/brigandage which are among the highest forms result or on the occasion thereof, the penalty of
of lawlessness condemned by the penal statutes of all countries; reclusion perpetua shall be imposed. If rape, murder or
and, homicide is committed as a result or on the occasion of
piracy, or when the offenders abandoned the victims
without means of saving themselves, or when the
WHEREAS, it is imperative that said lawless elements be seizure is accomplished by firing upon or boarding a
discouraged from perpetrating such acts of depredations by vessel, the mandatory penalty of death shall be
imposing heavy penalty on the offenders, with the end in view of imposed.
eliminating all obstacles to the economic, social, educational and
community progress of the people;
b. Highway Robbery/Brigandage. The penalty of
reclusion temporal in its minimum period shall be
103
 imposed. If physical injuries or other crimes are "Body-building" is a job undertaken on a motor vehicle
committed during or on the occasion of the commission in order to replace its entire body with a new body.
of robbery or brigandage, the penalty of reclusion
temporal in its medium and maximum periods shall be
"Remodeling" is the introduction of some changes in the
imposed. If kidnapping for ransom or extortion, or
shape or form of the body of the motor
murder or homicide, or rape is committed as a result or
vehicle.lawphi1™
on the occasion thereof, the penalty of death shall be
imposed.
"Dismantling" is the tearing apart, piece by piece or part
by part, of a motor vehicle.
Section 4. Aiding pirates or highway robbers/brigands or
abetting piracy or highway robbery/brigandage. Any person who
knowingly and in any manner aids or protects pirates or highway "Overhauling" is the cleaning or repairing of the whole
robbers/brigands, such as giving them information about the engine of a motor vehicle by separating the motor
movement of police or other peace officers of the government, or engine and its parts from the body of the motor vehicle.
acquires or receives property taken by such pirates or brigands or
in any manner derives any benefit therefrom; or any person who
directly or indirectly abets the commission of piracy or highway Section 3. Registration of motor vehicle engine, engine block and
robbery or brigandage, shall be considered as an accomplice of chassis. Within one year after the approval of this Act, every
the principal offenders and be punished in accordance with the owner or possessor of unregistered motor vehicle or parts thereof
Rules prescribed by the Revised Penal Code. in knock down condition shall register with the Land
Transportation Commission the motor vehicle engine, engine
block and chassis in his name or in the name of the real owner
It shall be presumed that any person who does any of the acts who shall be readily available to answer any claim over the
provided in this Section has performed knowingly, unless the registered motor vehicle engine, engine block or chassis.
contrary is proven. Thereafter, all motor vehicle engines, engine blocks and chassis
not registered with the Land Transportation Commission shall be
considered as untaxed importation or coming from an illegal
REPUBLIC ACT No. 6539
source or carnapped, and shall be confiscated in favor of the
Government.
AN ACT PREVENTING AND PENALIZING CARNAPPING
All owners of motor vehicles in all cities and municipalities are
Section 1. This Act shall be known and may be cited as the "Anti- required to register their cars with the local police without paying
Carnapping Act of 1972." any charges.

Section 2. Definition of terms. The terms "carnapping", "motor Section 4. Permanent registry of motor vehicle engines, engine
vehicle", "defacing or tampering with", "repainting", "body- blocks and chassis. The Land Transportation Commission shall
building", "remodeling", "dismantling", and "overhauling", as used keep a permanent registry of motor vehicle engines, engine
in this Act, shall be understood, respectively, to mean blocks and chassis of all motor vehicles, specifying therein their
type, make and serial numbers and stating therein the names and
addresses of their present and previous owners. Copies of the
"Carnapping" is the taking, with intent to gain, of a
registry and of all entries made thereon shall be furnished the
motor vehicle belonging to another without the latter's
Philippine Constabulary and all Land Transportation Commission
consent, or by means of violence against or intimidation
regional, provincial and city branch offices: Provided, That all
of persons, or by using force upon things.
Land Transportation Commission regional, provincial and city
branch offices are likewise obliged to furnish copies of all
"Motor vehicle" is any vehicle propelled by any power registration of motor vehicles to the main office and to the
other than muscular power using the public highways, Philippine Constabulary.
but excepting road rollers, trolley cars, street-sweepers,
sprinklers, lawn mowers, bulldozers, graders, fork-lifts,
Section 5. Registration of sale, transfer, conveyance, substitution
amphibian trucks, and cranes if not used on public
or replacement of a motor vehicle engine, engine block or chassis.
highways, vehicles, which run only on rails or tracks,
Every sale, transfer, conveyance, substitution or replacement of a
and tractors, trailers and traction engines of all kinds
motor vehicle engine, engine block or chassis of a motor vehicle
used exclusively for agricultural purposes. Trailers
shall be registered with the Land Transportation Commission.
having any number of wheels, when propelled or
Motor vehicles assembled and rebuilt or repaired by replacement
intended to be propelled by attachment to a motor
with motor vehicle engines, engine blocks and chassis not
vehicle, shall be classified as separate motor vehicle with
registered with the Land Transportation Commission shall not be
no power rating.lawphi1™
issued certificates of registration and shall be considered as
untaxed imported motor vehicles or motor vehicles carnapped or
"Defacing or tampering with" a serial number is the proceeding from illegal sources.
erasing, scratching, altering or changing of the original
factory-inscribed serial number on the motor vehicle
Section 6. Original Registration of motor vehicles. Any person
engine, engine block or chassis of any motor vehicle.
seeking the original registration of a motor vehicle, whether that
Whenever any motor vehicle is found to have a serial
motor vehicle is newly assembled or rebuilt or acquired from a
number on its motor engine, engine block or chassis
registered owner, shall within one week after the completion of
which is different from that which is listed in the records
the assembly or rebuilding job or the acquisition thereof from the
of the Bureau of Customs for motor vehicles imported
registered owner, apply to the Philippine Constabulary for
into the Philippines, that motor vehicle shall be
clearance of the motor vehicle for registration with the Land
considered to have a defaced or tampered with serial
Transportation Commission. The Philippine Constabulary shall,
number.
upon receipt of the application, verify if the motor vehicle or its
numbered parts are in the list of carnapped motor vehicles or
"Repainting" is changing the color of a motor vehicle by stolen motor vehicle parts. If the motor vehicle or any of its
means of painting. There is repainting whenever the new numbered parts is not in that list, the Philippine Constabulary
color of a motor vehicle is different from its color as shall forthwith issue a certificate of clearance. Upon presentation
registered in the Land Transportation Commission. of the certificate of clearance from the Philippine Constabulary
104
and after verification of the registration of the motor vehicle Section 12. Defacing or tampering with serial numbers of motor
engine, engine block and chassis in the permanent registry of vehicle engines, engine blocks and chassis. It shall be unlawful for
motor vehicle engines, engine blocks and chassis, the Land any person to deface or otherwise tamper with the original or
Transportation Commission shall register the motor vehicle in registered serial number of motor vehicle engines, engine blocks
accordance with existing laws, rules and regulations. and chassis.

Section 7. Duty of Collector of Customs to report arrival of Section 13. Penal Provisions. Any person who violates any
imported motor vehicle, etc. The Collector of Customs of a provisions of this Act shall be punished with imprisonment for not
principal port of entry where an imported motor vehicle, motor less than two years nor more than six years and a fine equal in
vehicle engine, engine block chassis or body is unloaded, shall, amount to the acquisition cost of the motor vehicle, motor vehicle
within seven days after the arrival of the imported motor vehicle engine or any other part involved in the violation: Provided, That
or any of its parts enumerated herein, make a report of the if the person violating any provision of this Act is a juridical
shipment to the Land Transportation Commission, specifying the person, the penalty herein provided shall be imposed on its
make, type and serial numbers, if any, of the motor vehicle president or secretary and/or members of the board of directors
engine, engine block and chassis or body, and stating the names or any of its officers and employees who may have directly
and addresses of the owner or consignee thereof. If the motor participated in the violation.
vehicle engine, engine block, chassis or body does not bear any
serial number, the Collector of Customs concerned shall hold the
Any government official or employee who directly commits the
motor vehicle engine, engine block, chassis or body until it is
unlawful acts defined in this Act or is guilty of gross negligence of
numbered by the Land Transportation Commission.
duty or connives with or permits the commission of any of the
said unlawful act shall, in addition to the penalty prescribed in the
Section 8. Duty of importers, distributors and sellers of motor preceding paragraph, be dismissed from the service with
vehicles to keep record of stocks. Any person engaged in the prejudice to his reinstatement and with disqualification from
importation, distribution, and buying and selling of motor voting or being voted for in any election and from appointment to
vehicles, motor vehicle engines, engine blocks, chassis or body, any public office.
shall keep a permanent record of his stocks, stating therein their
type, make and serial numbers, and the names and addresses of
Section 14. Penalty for Carnapping. Any person who is found
the persons from whom they were acquired and the names and
guilty of carnapping, as this term is defined in Section two of this
addresses of the persons to whom they were sold, and shall
Act, shall, irrespective of the value of motor vehicle taken, be
render an accurate monthly report of his transactions in motor
punished by imprisonment for not less than fourteen years and
vehicles to the Land Transportation Commission.
eight months and not more than seventeen years and four
months, when the carnapping is committed without violence or
Section 9. Duty of manufacturers of engine blocks, chassis or intimidation of persons, or force upon things; and by
body to cause numbering of engine blocks, chassis or body imprisonment for not less than seventeen years and four months
manufactured. Any person engaged in the manufacture of engine and not more than thirty years, when the carnapping is
blocks, chassis or body shall cause the numbering of every engine committed by means of violence against or intimidation of any
block, chassis or body manufactured in a convenient and person, or force upon things; and the penalty of life imprisonment
conspicuous part thereof which the Land Transportation to death shall be imposed when the owner, driver or occupant of
Commission may direct for the purpose of uniformity and the carnapped motor vehicle is killed in the commission of the
identification of the factory and shall submit to the Land carnapping.
Transportation Commission a monthly report of the manufacture
and sale of engine blocks, chassis or body.
Section 15. Aliens. Aliens convicted under the provisions of this
Act shall be deported immediately after service of sentence
Section 10. Clearance and permit required for assembly or without further proceedings by the Deportation Board.
rebuilding of motor vehicles. Any person who shall undertake to
assemble or rebuild or cause the assembly or rebuilding of a
Section 16. Reward. Any person who voluntarily gives
motor vehicle shall first secure a certificate of clearance from the
information leading to the recovery of carnapped vehicles and for
Philippine Constabulary: Provided, That no such permit shall be
the conviction of the persons charged with carnapping shall be
issued unless the applicant shall present a statement under oath
given as reward so much reward money as the Philippine
containing the type, make and serial numbers of the engine,
Constabulary may fix. The Philippine Constabulary is authorized to
chassis and body, if any, and the complete list of the spare parts
include in its annual budget the amount necessary to carry out
of the motor vehicle to be assembled or rebuilt together with the
the purposes of this section. Any information given by informers
names and addresses of the sources thereof.
shall be treated as confidential matter.

In the case of motor vehicle engines to be mounted on motor

boats, motor bancas and other light water vessels, the applicant
shall secure a permit from the Philippine Coast Guard, which office
shall in turn furnish the Land Transportation Commission the REPUBLIC ACT NO. 10883, July 17, 2016
pertinent data concerning the motor vehicle engines including
their type, make and serial numbers.
AN ACT PROVIDING FOR A NEW ANTI-CARNAPPING LAW
OF THE PHILIPPINES
Section 11. Clearance required for shipment of motor vehicles,
motor vehicle engines, engine blocks, chassis or body. Any person Sec. 2. Definition of Terms. – As used in this
who owns or operates inter-island shipping or any water Act:ChanRoblesVirtualawlibrary
transportation with launches, boats, vessels or ships shall within
seven days submit a report to the Philippine Constabulary on all (a) Body building refers to a job undertaken on a motor vehicle in
motor vehicle, motor vehicle engines, engine blocks, chassis or order to replace its entire body with a new body;cralawlawlibrary
bodies transported by it for the motor vehicle, motor vehicle
engine, engine block, chassis or body to be loaded on board the
launch, boat vessel or ship.

(b) Defacing or tampering with a serial number refers to the

105
altering, changing, erasing, replacing or scratching of the original of life imprisonment shall be imposed when the owner, driver, or
factory inscribed serial number on the motor vehicle engine, occupant of the carnapped motor vehicle is killed or raped in the
engine block or chassis of any motor vehicle. commission of the carnapping.

Whenever any motor vehicle is found to have a serial number on Any person charged with carnapping or when the crime of
its engine, engine block or chassis which is different from that carnapping is committed by criminal groups, gangs or syndicates
which is listed in the records of the Bureau of Customs for motor or by means of violence or intimidation of any person or persons
vehicle imported into the Philippines, that motor vehicle shall be or forced upon things; or when the owner, driver, passenger or
considered to have a defaced or tampered serial occupant of the carnapped vehicle is killed or raped in the course
number;cralawlawlibrary of the carnapping shall be denied bail when the evidence of guilt
is strong.
(c) Dismantling refers to the tearing apart, piece-by-piece or part-
by-part, of a motor vehicle;cralawlawlibrary Sec. 4. Concealment of Carnapping. – Any person who conceals
carnapping shall be punished with imprisonment of six (6) years
(d) Identity transfer refers to the act of transferring the engine up to twelve (12) years and a fine equal to theamount of the
number, chassis number, body tag number, plate number, and acquisition cost of the motor vehicle, motor vehicle engine, or any
any other identifying marks of a motor vehicle declared as “total other part involved in the violation: Provided, That if the person
wreck" or is beyond economic repair by concerned car insurance violating any provision of this Act is a juridical person, the penalty
companies and/or law enforcement agencies after its involvement herein provided shall be imposed on its president, secretary,
in a vehicular accident or other incident and registers the same and/or members of the board of directors or any of its officers and
into another factory-made body or vehicle unit, of the same employees who may have directly participated in the violation.
classification, type, make or model;cralawlawlibrary
Any public official or employee who directly commits the unlawful
(e) Motor vehicle refers to any vehicle propelled by any power acts defined in this Act or is guilty of gross negligence of duty or
other than muscular power using the public highways, except road connives with or permits the commission of any of the said
rollers, trolley cars, street sweepers, sprinklers, lawn mowers, unlawful acts shall, in addition to the penalty prescribed in the
bulldozers, graders, forklifts, amphibian trucks, and cranes if not preceding paragraph, be dismissed from the service, and his/her
used on public highways; vehicles which run only on rails or benefits forfeited and shall be permanently disqualified from
tracks; and tractors, trailers and traction engines of all kinds used holding public office.
exclusively for agricultural purposes.  Trailers having any number
of wheels, when propelled or intended to be propelled by Sec. 5. Original Registration of Motor Vehicles. – Any person
attachment to a motor vehicle, shall be classified as a separate seeking the original registration of a motor vehicle, whether that
motor vehicle with no power rating;cralawlawlibrary motor vehicle is newly assembled or rebuilt or acquired from a
registered owner, shall, within one (1) week after the completion
(f) Overhauling refers to the cleaning or repairing of the whole of the assembly or rebuilding job or the acquisition thereof from
engine of a motor vehicle by separating the motor engine and its the registered owner, apply to the Philippine National Police (PNP)
parts from the body of the motor vehicle;cralawlawlibrary for the clearance of the motor vehicle for registration with the
LTO. The PNP shall, upon receipt of the application, verify if the
(g) Repainting refers to changing the color of a motor vehicle by motor vehicle or its numbered parts are in the list of carnapped
means of painting. There is painting whenever the new color of a motor vehicles or stolen motor vehicle parts. If the motor vehicle
motor vehicle is different from its color registered in the Land or any of its numbered parts is not in the list, the PNP shall
Transportation Office (LTO);cralawlawlibrary forthwith issue a certificate of clearance. Upon presentation of the
certificate of clearance from the PNP and after verification of the
(h) Remodeling refers to the introduction of some changes in the registration of the motor vehicle engine, engine block and chassis
shape or form of the body of the motor vehicle;cralawlawlibrary in the permanent registry of motor vehicle engine, engine block
and chassis, the LTO shall register the motor vehicle in
(i) Second hand spare parts refer to the parts taken from a accordance with existing laws, rules and regulations within twenty
carnapped vehicle used in assembling another (20) working days.
vehicle;cralawlawlibrary
Sec. 6. Registration of Motor Vehicle, Motor Vehicle Engine,
(j) Total wreck refers to the state or status of a motor vehicle Engine Block and Chassis. – Within one (1) year upon approval of
after a vehicular accident or other incident, so that it is rendered this Act, every owner or possessor of unregistered motor vehicle
in operational and beyond economic repair due to the extent of or parts thereof in knock down condition shall register before the
damage in its body, chassis and engine; and LTO the motor vehicle engine, engine block and chassis in the
name of the possessor or in the name of the real owner who shall
(k) Unlawful transfer or use of vehicle plates refers to the use or be readily available to answer any claim over the registered motor
transfer of a vehicle plate issued by the LTO to a certain vehicle to vehicle engine, engine block and chassis. Thereafter, all motor
another vehicle. It is presumed illegally transferred when the vehicle engines, engine blocks and chassis not registered with the
motor vehicle plate does not correspond with that as appearing in LTO shall be considered as a carnapped vehicle, an untaxed
the certificate of registration of the motor vehicle to which it was importation or coming from illegal source and shall be confiscated
issued. in favor of the government.

Sec. 3. Carnapping; Penalties. – Carnapping is the taking, with Sec. 7. Permanent Registry of Motor Vehicle, Motor Vehicle
intent to gain, of a motor vehicle belonging to another without the Engines, Engine Blocks and Chassis. – The LTO shall keep a
latter’s consent, or by means of violence against or intimidation of permanent registry of motor vehicle, motor vehicle engines,
persons, or by using force upon things. engine blocks and chassis of all motor vehicles, specifying therein
their type, make, serial numbers and stating therein the names
Any person who is found guilty of carnapping shall, regardless of and addresses of their present and previous owners. Copies of the
the value of the motor vehicle taken, be punished by registry and of all entries made there on shall be furnished the
imprisonment for not less than twenty (20) years and one (1) day PNP and all LTO regional, provincial and city branch
but not more than thirty (30) years, when the carnapping is offices; Provided, That all LTO regional, provincial and city offices
committed without violence against or intimidation of persons, or are likewise obliged to furnish copies of all registrations of motor
force upon things; and by imprisonment for not less than thirty vehicles to the main office and to the PNP: Provided, further, That
(30) years and one (1) day but not more than forty (40) years, the original copy of the certificate of registration shall be given to
when the carnapping is committed by means of violence against the registered owner, the second copy shall be retained with the
or intimidation of persons, or force upon things; and the penalty LTO and the third copy shall be submitted to the PNP. Moreover, it
106
shall be unlawful for any person or employee who willfully boarded the “RORO”, ferry, boat, vessel or ship for interisland and
encodes in the registry of motor vehicles a non-existing vehicle or international shipment. The PPA shall not allow the loading of
without history, new identity of already existing vehicle or double/ motor vehicles in all interisland and international shipping vessels
multiple registration (“KAMBAL”) of vehicle. without a motor vehicle clearance from the PNP, except cargo
trucks and other trucks carrying goods. Land Transportation
Sec. 8. Registration of Sale, Transfer, Conveyance of a Motor Franchising and Regulatory Board (LTFRB)-accredited public utility
Vehicle, Substitution or Replacement of a Motor Vehicle Engine, vehicles (PUV) and other motor vehicles carrying foodstuff and
Engine Block or Chassis.  – Every sale, transfer, conveyance of a dry goods.
motor vehicle, substitution or replacement of a motor vehicle
engine, engine block or chassis of a motor vehicle shall be Sec. 14. Defacing or Tampering with Serial Numbers of Motor
registered with the LTO within twenty (20) working days upon Vehicle Engines, Engine Blocks and Chassis. – It shall be unlawful
purchase/acquisition of a motor vehicle and substitution or for any person to deface or otherwise tamper with the original or
replacement of a motor vehicle engine, engine block or chassis. A registered serial number of motor vehicle engines, engine blocks
motor vehicle, motor vehicle engine, engine block or chassis not and chassis.
registered with the LTO shall be presumed as a carnapped vehicle,
an untaxed imported vehicle, or a vehicle proceeding from illegal Sec. 15. Identity Transfer. – It shall be unlawful for any person,
sources unless proven otherwise and shall be confiscated in favor office or entity to cause and/or allow the sale, registration, and/or
of the government. transfer into another name, the chassis number, engine number
and plate number of a motor vehicle declared as “total wreck” or
Sec. 9. Duty of Collector of Customs to Report. – Within seven (7) beyond economic repair by concerned insurance company, and/or
days after the arrival of an imported vehicle, motor vehicle law enforcement agencies, due to its involvement in a vehicular
engine, engine block, chassis or body, the Collector of Customs of accident or for some other causes. The LTO shall cancel the
a principal port of entry where the imported vehicle or parts registration of total wreck vehicle as reported by the PNP and/or
enumerated above are unloaded shall report the shipment to the as declared by the Insurance Commission.
LTO, specifying the make, type and serial numbers, if any, of the
motor vehicle, motor vehicle engine, engine block, chassis or Sec. 16. Transfer of Vehicle Plate. – It shall be unlawful for any
body, and stating the names and addresses of the owner or person, office or entity to transfer or use a vehicle plate from one
consignee thereof. If the motor vehicle, motor vehicle engine, vehicle to another without securing the proper authority from the
engine block, chassis or body does not bear any serial number, LTO.
the Collector of Customs concerned shall hold the motor vehicle,
motor vehicle engine, engine block, chassis or body until it is Sec. 17. Sale of Second Hand Spare Parts. – It shall be unlawful
numbered by the LTO: Provided, That a PNP clearance shall be for any person, office or entity to buy and/or sell any second hand
required prior to engraving the engine or chassis number. spare parts taken from a carnapped vehicle.

Sec. 10. Duty of Importers, Distributors and Sellers of Motor Sec. 18. Foreign Nationals. – Foreign nationals convicted under
Vehicles to Keep Record of Stocks. – Any person engaged in the the provisions of this Act shall be deported immediately after
importation, distribution, and buying and selling of motor service of sentence without further proceedings by the Bureau of
vehicles, motor vehicle engines, engine blocks, chassis or body Immigration.
shall keep a permanent record of one’s stocks, stating therein
their type, make and serial numbers, and the names and Sec. 19. Reward.  – Any person who voluntarily gives information
addresses of the persons from whom they were acquired and the leading to the recovery of carnapped vehicles and for the
names and addresses of the persons to whom they are sold, and apprehension of the persons charged with carnapping shall be
shall render accurately a monthly report of his/her transactions in given monetary reward as the PNP may determine.  The PNP shall
motor vehicles to the LTO. include in their annual budget the amount necessary to carry out
the purposes of this section.  Any information given by informers
SEC.11. Duty of Manufacturers of Engine Blocks, Chassis or Body shall be treated as confidential matter.
to Cause the Numbering of Engine Blocks, Chassis or Body
Manufactured. – Any person engaged in the manufacture of
engine blocks, chassis or body shall cause the numbering of every
engine block, chassis or body manufactured in a convenient and
conspicuous part thereof which the LTO may direct for the
purpose of uniformity and identification of the factory and shall
submit to the LTO a monthly report of the manufacture and sale
of engine blocks, chassis or body.

Sec. 12. Clearance and Permit Required for Assembly or

Rebuilding of Motor Vehicles. – Any person who shall undertake to
assemble or rebuild or cause the assembly or rebuilding of a
motor vehicle shall first secure a certificate of clearance from the
PNP: Provided, That no such permit shall be issued unless the
applicant shall present a statement under oath containing the
type, make and serial numbers of the engine, chassis and body, if
any, and the complete list of the spare parts of the motor vehicle
to be assembled or rebuilt together with the names and addresses PRESIDENTIAL DECREE No. 533 August 8, 1974
of the sources thereof.
THE ANTI-CATTLE RUSTLING LAW OF 1974
In the case of motor vehicle engines to be mounted on motor
boats, motor bancas, water crafts and other light water vessels,
the applicant shall secure a permit from the PNP, which office WHEREAS, large cattle are indispensable to the livelihood and
shall in turn furnish the LTO pertinent data concerning the motor economic growth of our people, particularly the agricultural
vehicle engines including their type, make and serial numbers. workers, because such large cattle are the work animals of our
farmers and the source of fresh meat and dairy products for our
Sec. 13. Clearance Required for Shipment of Motor Vehicles, people, and provide raw material for our tanning and canning
Motor Vehicle Engines, Engine Blocks, Chassis or Body. – The industries;
Philippine Ports Authority (PPA) shall submit a report to the PNP
within seven (7) days upon boarding all motor vehicles being
107
WHEREAS, reports from the law-enforcement agencies reveal that Section 6. Clearance for shipment of large cattle. Any person,
there is a resurgence of thievery of large cattle, commonly known partnership, association, corporation or entity desiring to ship or
as "cattle rustling", especially in the rural areas, thereby directly transport large cattle, its hides, or meat, from one province to
prejudicing the livelihood of the agricultural workers and another shall secure a permit for such purpose from the Provincial
adversely affecting our food production program for self- Commander of the province where the large cattle is registered.
sufficiency in rice, corn and other staple crops, as well as in fresh Before issuance of the permit herein prescribed, the Provincial
meat; Commander shall require the submission of the certificate of
ownership as prescribed in Section 3 hereof, a certification from
the Provincial Veterinarian to the effect that such large cattle,
WHEREAS, there is an urgent need to protect large cattle raising
hides or meat are free from any disease; and such other
industry and small time large cattle owners and raisers from the
documents or records as may be necessary. Shipment of large
nefarious activities of lawless elements in order to encourage our
cattle, its hides or meat from one city/municipality to another
hardworking cattle raisers and farmers to raise more cattle and
within the same province may be done upon securing permit from
concentrate in their agricultural works, thus increasing our source
the city/municipal treasurer of the place of origin.
of meat and dairy products as well as agricultural production and
allied industries which depend on the cattle raising industry;
Section 7. Presumption of cattle rustling. Every person having in
his possession, control or custody of large cattle shall, upon
NOW, THEREFORE, I, FERDINAND E. MARCOS, President of the
demand by competent authorities, exhibit the documents
Republic of the Philippines, by virtue of the powers vested in me
prescribed in the preceding sections. Failure to exhibit the
by the Constitution and pursuant to Proclamations No. 1081,
required documents shall be prima facie evidence that the large
dated September 21, 1972 and No. 1104, dated January 17, 1973
cattle in his possession, control or custody are the fruits of the
and General Order No. 1 dated September 22, 1972, do hereby
crime of cattle rustling.
order and decree as part of the law of the land, the following:

Section 8. Penal provisions. Any person convicted of cattle

Section 1. Title. This Decree shall be known as the "Anti-Cattle
rustling as herein defined shall, irrespective of the value of the
Rustling Law of 1974."
large cattle involved, be punished by prision mayor in its
maximum period to reclusion temporal in its medium period if the
Section 2. Definition of terms. The following terms shall mean offense is committed without violence against or intimidation of
and be understood to be as herein defined: persons or force upon things. If the offense is committed with
violence against or intimidation of persons or force upon things,
the penalty of reclusion temporal in its maximum period to
a. Large cattle as herein used shall include the cow, reclusion perpetua shall be imposed. If a person is seriously
carabao, horse, mule, ass, or other domesticated injured or killed as a result or on the occasion of the commission
member of the bovine family. of cattle rustling, the penalty of reclusion perpetua to death shall
be imposed.
b. Owner/raiser shall include the herdsman, caretaker,
employee or tenant of any firm or entity engaged in the When the offender is a government official or employee, he shall,
raising of large cattle or other persons in lawful in addition to the foregoing penalty, be disqualified from voting or
possession of such large cattle. being voted upon in any election/referendum and from holding
any public office or employment.
c. Cattle rustling is the taking away by any means,
method or scheme, without the consent of the When the offender is an alien, he shall be deported immediately
owner/raiser, of any of the above-mentioned animals upon the completion of the service of his sentence without further
whether or not for profit or gain, or whether committed proceedings.
with or without violence against or intimidation of any
person or force upon things. It includes the killing of
large cattle, or taking its meat or hide without the
consent of the owner/raiser.

Section 3. Duty of owner/raiser to register. The owner/raiser

shall, before the large cattle belonging to him shall attain the age
of six months, register the same with the office of the
city/municipal treasurer where such large cattle are raised. The
city/municipality concerned may impose and collect the fees
authorized by existing laws for such registration and the issuance
of a certificate of ownership to the owner/raiser.

Section 4. Duty of city/municipal treasurers and other concerned

public officers and employees. All public officials and employees
concerned with the registration of large cattle are required to
observe strict adherence with pertinent provisions of Chapter 22, PRESIDENTIAL DECREE No. 581 November 13, 1974
Section 511 to 534, of the Revised Administrative Code, except
insofar as they may be inconsistent with the provisions of this
Decree. PRESCRIBING A HEAVIER MINIMUM PENALTY FOR
HIGHGRADING OR THEFT OF GOLD FROM A MINING CLAIM
OR MINING CAMP
Section 5. Permit to buy and sell large cattle. No person,
partnership, association, corporation or entity shall engage in the
business of buy and sell of large cattle without first securing a WHEREAS, "highgrading" or the theft of gold has become rampant
permit for the said purpose from the Provincial Commander of the in the mining areas where gold is produced because of the high
province where it shall conduct such business and the price that this precious metal now commands in the free market;
city/municipal treasurer of the place of residence of such person,
partnership, association, corporation or entity. The permit shall
only be valid in such province.
108
WHEREAS, gold mining is one of the industries that the WHEREAS, a paramount objective of Proclamation No. 1081 dated
Government encourages because of the role that gold plays in our September 21, 1972, is to bring about the formation of a New
economy not only as an important part of our international Society infused with a profound sense of discipline and order;
reserves, but also as one of our principal sources of foreign
exchange;
WHEREAS, the foregoing objective is being thwarted by rampant
illegal installation of water, electrical and telephone connection,
WHEREAS, the existing laws has proved inadequate in curbing use of tampered water and electrical meters, jumpers and other
highgrading because of the difficulty in apprehending highgraders devices to steal water or electricity, at times with the connivance
and also because of the light penalties usually imposed on the of some employees and/or officers of the Metropolitan
accused due to the relatively low value which the Courts give to Waterworks and Sewerage System, the Manila Electric Company
stolen gold-bearing ores or rocks; or the Philippine Long Distance Telephone Company, as the case
may be, and the pilferage of water and electric meters as well as
water, electric and telephone meters; and
WHEREAS, "highgrading" causes damage not only to the operator
of the mining claims, but also to the Government which losses the
foreign exchange and the taxes the stolen gold could have WHEREAS, there is an urgent need for putting an end to these
generated and, worse, it promotes black-marketing and illegal activities because they not only run counter to the
smuggling abroad of this precious metal; and aforementioned objective of Proclamation No. 1081 but also
prejudice the economic well-being of both the companies
concerned and the consuming public;
WHEREAS, one of the principal aims of our New Society is to
stamp out all forms of lawlessness to promote the social and
economic well-being of our people; NOW, THEREFORE, I, FERDINAND E. MARCOS, President of the
Philippines, by virtue of the powers vested in me by the
Constitution as Commander-in-Chief of all the Armed Forces of
NOW, THEREFORE, I, FERDINAND E. MARCOS, President of the
the Philippines, and pursuant to Proclamation No. 1081 dated
Philippines, by virtue of the powers vested in me by the
September 21, 1972, and General Order No. 1 dated September
Constitution, do hereby order and decree that:
22, 1972, as amended, do hereby order and decree that any
person who installs any water, electrical or telephone connection
Section 1. Any person who shall take gold-bearing ores or rocks without previous authority from the Metropolitan Waterworks and
from a mining claim or mining camp or shall remove, collect or Sewerage System, the Manila Electric Company or the Philippine
gather gold-bearing ores or rocks in place or shall extract or Long Distance Telephone Company, as the case may be; tampers
remove the gold from such ores or rocks, or shall prepare and and/or uses tampered water or electrical meters or jumpers or
treat such ores or rocks to recover or extract the gold contents other devices whereby water or electricity is stolen; steals or
thereof, without the consent of the operator of the mining claim, pilfers water and/or electric meters or water, electric and/or
shall be guilty of "highgrading" or theft of gold and shall suffer a telephone wires; knowingly possesses stolen or pilfered water
penalty of prision-correccional in its minimum period, but if the and/or electrical meters as well as stolen or pilfered water,
accused is an employee or laborer of the operator of the mining electrical and/or telephone wires, shall, upon conviction, be
claim, the penalty shall be prision-correccional in medium period punished by prision correccional in its minimum period or a fine
without prejudice to the imposition of the higher penalties ranging from two thousand to six thousand pesos, or both. If the
provided in Article 309 of the Revised Penal Code if the value of violation is committed with the connivance or permission of an
the goods stolen so warrants. The penalty next lower in degree employee or officer of the Metropolitan Waterworks and Sewerage
than that prescribed hereinabove shall be imposed if the offense System, or the Manila Electric Company, or the Philippine Long
is frustrated, and the penalty two degrees lower if the offense is Distance Telephone Company, such employee or officer shall,
attempted. upon conviction, be punished by a penalty one degree lower than
prision correccional in its minimum period and forthwith be
dismissed and perpetually disqualified from employment in any
Section 2. The unauthorized possession by any person within a public or private utility or service company.
mining claim or mining camp of gold-bearing ores or rocks or of
gold extracted or removed from such ores or rocks, shall be prima
facie evidence that they have been stolen from the operator of a
mining claim.

Section 3. Any person who knowingly buys or acquires stolen

gold-bearing ore or rocks or the gold extracted or removed
therefrom shall be guilty of theft as an accessory and penalized
with arresto mayor in its maximum period.

Section 4. All laws or regulations inconsistent herewith are

hereby repealed or modified accordingly.

PRESIDENTIAL DECREE No. 401 March 1, 1974

PENALIZING THE UNAUTHORIZED INSTALLATION OF Republic Act No. 7832             December 8, 1994
WATER, ELECTRICAL OR TELEPHONE CONNECTIONS, THE
USE OF TAMPERED WATER OR ELECTRICAL METERS, AND
AN ACT PENALIZING THE PILFERAGE OF ELECTRICITY AND
OTHER ACTS
THEFT OF ELECTRIC POWER TRANSMISSION
LINES/MATERIALS, RATIONALIZING SYSTEM LOSSES BY

109
PHASING OUT PILFERAGE LOSSES AS A COMPONENT without the consent of the owner, whether or
THEREOF, AND FOR OTHER PURPOSES not the act is done for profit or gain; and

Be it enacted by the Senate and House of Representatives of the (4) Load, carry, ship or move from one place
Philippines in Congress assembled: to another, whether by land, air or sea, any
electrical power transmission line/material,
whether or not the act is done for profit or
Section 1. Short Title. - This Act shall be referred to as the "Anti-
gain, without first securing a clearance/permit
electricity and Electric Transmission Lines/Materials Pilferage Act
for the said purpose from its owner or the
of 1994."
National Power Corporation (NPC) or its
regional office concerned, as the case may be.
Section 2. Illegal Use of Electricity. - It is hereby declared
unlawful for any person, whether natural or juridical, public or
(b) For purposes of this section, "electrical power
private, to:
transmission line/material" refers to electric power
transmission steel towers, woodpoles, cables, wires,
(a) Tap, make or cause to be made any connection with insulators, line hardwares, electrical conductors and
overhead lines, service drops, or other electric service other related items with a minimum voltage of sixty-nine
wires, without previous authority or consent of the kilovolts (69 kv), such as the following:
private electric utility or rural electric cooperative
concerned;1awphil@alf
(1) Steel transmission line towers made of
galvanized steel angular members and plates
(b) Tap, make or cause to be made any connection to or creosoted and/or lannelized woodpoles/
the existing electric service facilities of any duly concrete poles and designed to carry and
registered consumer without the latter's or the electric support the conductors;
utility's consent or authority;
(2) Aluminum conductor steel reinforced
(c) Tamper, install or use a tampered electrical meter, (ACSR) in excess of one hundred (100) MCM;
jumper, current reversing transformer, shorting or
shunting wire, loop connection or any other device which
(3) Overhead ground wires made of 7 strands
interferes with the proper or accurate registry or
of galvanized steel wires, 3.08 millimeters in
metering of electric current or otherwise results in its
diameter and designed to protect the electrical
diversion in a manner whereby electricity is stolen or
conductors from lightning strikes;
wasted;

(4) Insulators made of porcelain or glass shell

(d) Damage or destroy an electric meter, equipment,
and designed to insulate the electrical
wire or conduit or allow any of them to be so damaged
conductors from steel towers or woodpoles;
or destroyed as to interfere with the proper or accurate
and
metering of electric current; and

(5) Various transmission line hardwares and

(e) Knowingly use or receive the direct benefit of electric
materials made of aluminum alloy or malleable
service obtained through any of the acts mentioned in
steel and designed to interconnect the towers,
subsections (a), (b), (c), and (d) above.1awphil@alf
conductors, ground wires, and insulators
mentioned in subparagraphs (1), (2), (3), and
Section 3. Theft of Electric Power Transmission Lines and (4) above for the safe and reliable operation of
Materials. - (a) It is hereby declared unlawful for any person to: the transmission lines.1awphil©

(1) Cut, saw, slice, separate, split, severe, Section 4. Prima Facie Evidence. - (a) The presence of any of the
smelt, or remove any electric power following circumstances shall constitute prima facie evidence of
transmission line/material or meter from a illegal use of electricity, as defined in this Act, by the person
tower, pole, or any other installation or place benefitted thereby, and shall be the basis for: (1) the immediate
of installation or any other place or site where disconnection by the electric utility to such person after due
it may be rightfully or lawfully stored, notice, (2) the holding of a preliminary investigation by the
deposited, kept, stocked, inventoried, situated prosecutor and the subsequent filing in court of the pertinent
or located, without the consent of the owner, information, and (3) the lifting of any temporary restraining order
whether or not the act is done for profit or or injunction which may have been issued against a private
gain; electric utility or rural electric cooperative:

(2) Take, carry away or remove or transfer, (i) The presence of a bored hole on the glass
with or without the use of a motor vehicle or cover of the electric meter, or at the back or
other means of conveyance, any electric power any other part of said meter;
transmission line/material or meter from a
tower, pole, any other installation or place of
(ii) The presence inside the electric meter of
installation, or any place or site where it may
salt, sugar and other elements that could
be rightfully or lawfully stored, deposited, kept,
result in the inaccurate registration of the
stocked, inventoried, situated or located
meter's internal parts to prevent its accurate
without the consent of the owner, whether or
registration of consumption of electricity;
not the act is done for profit or gain;

(iii) The existence of any wiring connection

(3) Store, possess or otherwise keep in his
which affects the normal operation or
premises, custody or control, any electric
registration of the electric meter;
power transmission line/material or meter
110
 (iv) The presence of a tampered, broken, or concerned or with the competent court, as the case may be:
fake seal on the meter, or mutilated, altered or Provided, furthermore, That if the court finds that illegal use of
tampered meter recording chart or graph, or electricity has not been committed by the same person, the
computerized chart, graph, or log; amount deposited shall be credited against future billings, with
legal interest thereon chargeable against the private utility or
rural electric cooperative, and the utility or cooperative shall be
(v) The presence in any part of the building or
made to immediately pay such person double the value of the
its premises which is subject to the control of
payment or deposit with legal interest, which amount shall
the consumer or on the electric meter, of a
likewise be creditable against immediate future billings, without
current reversing transformer, jumper,
prejudice to any criminal, civil or administrative action that such
shorting and/or shunting wire, and/or loop
person may be entitled to file under existing laws, rules and
connection or any other similar device;
regulations: Provided, finally, That if the court finds the same
person guilty of such illegal use of electricity, he shall, upon final
(vi) The mutilation, alteration, reconnection, judgment, be made to pay the electric utility or rural electric
disconnection, bypassing or tampering of cooperative concerned double the value of the estimated
instruments, transformers, and accessories; electricity illegally used which is referred to in this section as
differential billing.
(vii) The destruction of, or attempt to destroy,
any integral accessory of the metering device For purposes of this Act, "differential billing" shall refer to the
box which encases an electric meter, or its amount to be charged to the person concerned for the unbilled
metering accessories; and electricity illegally consumed by him as determined through the
use of methodologies which utilize, among others, as basis for
determining the amount of monthly electric consumption in
(viii) The acceptance of money and/or other kilowatt-hours to be billed, either: (a) the highest recorded
valuable consideration by any officer of monthly consumption within the five-year billing period preceding
employee of the electric utility concerned or the time of the discovery, (b) the estimated monthly consumption
the making of such an offer to any such officer as per the report of load inspection conducted during the time of
or employee for not reporting the presence of discovery, (c) the higher consumption between the average
any of the circumstances enumerated in consumptions before or after the highest drastic drop in
subparagraphs (i), (ii), (iii), (iv), (v), (vi), or consumption within the five-year billing period preceding the
(vii) hereof: Provided, however, That the discovery, (d) the highest recorded monthly consumption within
discovery of any of the foregoing four (4) months after the time of discovery, or (e) the result of
circumstances, in order to constitute prima the ERB test during the time of discovery and, as basis for
facie evidence, must be personally witnessed determining the period to be recovered by the differential billing
and attested to by an officer of the law or a either: (1) the time when the electric service of the person
duly authorized representative of the Energy concerned recorded an abrupt or abnormal drop in consumption,
Regulatory Board (ERB). or (2) when there was a change in his service connection such as
a change of meter, change of seal or reconnection, or in the
(b) The possession or custody of electric power absence thereof, a maximum of sixty (60) billing months up to
transmission line/material by any person, natural or the time of discovery: Provided, however, That such period shall,
juridical, not engaged in the transformation, in no case, be less than one (1) year preceding the date of
transmission or distribution of electric power, or in the discovery of the illegal use of electricity.
manufacture of such electric power transmission
line/material shall be prima facie evidence that such Section 7. Penalties. - (a) Violation of Section 2. - The penalty of
line/material is the fruit of the offense defined in Section prision mayor or a fine ranging from Ten thousand pesos
3 hereof and therefore such line/material may be (P10,000) to Twenty thousand pesos (P20,000) or both, at the
confiscated from the person in possession, control or discretion of the court, shall be imposed on any person found
custody thereof. guilty of violating Section 2 hereof.

Section 5. Incentives. - An incentive scheme by way of a (b) Violation of Section 3. - The penalty of reclusion
monetary reward in the minimum amount of Five thousand pesos temporal or a fine ranging from Fifty thousand pesos
(P5,000) shall be given to any person who shall report to the NPC (P50,000) to One hundred thousand pesos (P100,000)
or police authorities any act which may constitute a violation of or both at the discretion of the court, shall be imposed
Section 3 hereof. The Department of Energy (DOE), in on any person found guilty of violating Section 3 hereof.
consultation with the NPC, shall issue the necessary guidelines for
the proper implementation of this incentive scheme within thirty
(30) days from the effectivity of this Act. (c) Provision common to violations of Section 2 and
Section 3 hereof. - If the offense is committed by, or in
connivance with, an officer or employee of the power
Section 6. Disconnection of Electric Service. - The private electric company, private electric utility or rural electric
utility or rural electric cooperative concerned shall have the right cooperative concerned, such officer or employee shall,
and authority to disconnect immediately the electric service after upon conviction, be punished with a penalty one (1)
serving a written notice or warning to that effect, without the degree higher than the penalty provided herein, and
need of a court or administrative order, and deny restoration of forthwith be dismissed and perpetually disqualified from
the same, when the owner of the house or establishment employment in any public or private utility or service
concerned or someone acting in his behalf shall have been caught company and from holding any public office.
en flagrante delicto doing any of the acts enumerated in Section
4(a) hereof, or when any of the circumstances so enumerated
shall have been discovered for the second time: Provided, That in If, in committing any of the acts enumerated in Section 4 hereof,
the second case, a written notice or warning shall have been any of the other acts as enumerated is also committed, then the
issued upon the first discovery: Provided, further, That the electric penalty next higher in degree as provided herein shall be
service shall not be immediately disconnected or shall be imposed.
immediately restored upon the deposit of the amount
representing the differential billing by the person denied the
If the offense is committed by, or in connivance with an officer or
service, with the private electric utility or rural electric cooperative
employee of the electric utility concerned, such officer or
111
employee shall, upon conviction, be punished with a penalty one established a cap on the recoverable rate of system losses as
(1) degree higher than the penalty provided herein, and forthwith follows:
be dismissed and perpetually disqualified from employment in any
public or private utility or service company. Likewise, the electric
(a) For private electric utilities:
utility concerned which shall have knowingly permitted or having
knowledge of its commission shall have failed to prevent the
same, or was otherwise guilty of negligence in connection with the (i) Fourteen and a half percent (14 1/2%) at
commission thereof, shall be made to pay a fine not exceeding the end of the first year following the
triple the amount of the 'differential billing' subject to the effectivity of this Act;
discretion of the courts.
(ii) Thirteen and one-fourth percent (13 1/4%)
If the violation is committed by a partnership, firm, corporation, at the end of the second year following the
association or any other legal entity, including a government- effectivity of this Act;
owned or -controlled corporation, the penalty shall be imposed on
the president, manager and each of the officers thereof who shall
have knowingly permitted, failed to prevent or was otherwise (iii) Eleven and three-fourths (11 3/4%) at the
responsible for the commission of the offense. end of the third year following the effectivity of
this Act; and

Section 8. Authority to Impose Violation of Contract

Surcharges. - A private electric utility or rural electric cooperative (iv) Nine and a half-percent (9 1/2%) at the
may impose surcharges, in addition to the value of the electricity end of the fourth year following the effectivity
pilfered, on the bills of any consumer apprehended for tampering of this Act.
with his electric meter/metering facility installed on his premises,
as well as other violations of contract like direct connection, use of Provided, That the ERB is hereby authorized to
jumper, and other means of illicit usage of electricity found determine at the end of the fourth year following the
installed in the premises of the consumer. The surcharge for the effectivity of this Act, and as often as necessary taking
violation of contract shall be collected from and paid by the into account the viability of private electric utilities and
consumer concerned as follows: the interest of the consumers, whether the caps herein
or theretofore established shall be reduced further which
(a) First apprehension. - Twenty five percent (25%) of shall, in no case, be lower than nine percent (9%) and
the current bill as surcharge; accordingly fix the date of the effectivity of the new
caps: Provided, further, That in the calculation of the
system loss, power sold by the NPC or any other entity
(b) Second apprehension. - Fifty percent (50%) of the that supplies power directly to a consumer and not
current bill as surcharge; and through the distribution system of the private electric
utility shall not be counted even if the billing for the said
power used is through the private electric utility.
(c) Third and subsequent apprehensions. - One hundred
percent (100%) of the current bill as surcharge.
The term "power sold by NPC or any other entity that
supplies power directly to a consumer" as used in the
The private electric utility or rural electric cooperative is
preceding paragraph shall for purposes of this section be
authorized to discontinue the electric service in case the consumer
deemed to be a sale directly to the consumer if: (1) the
is in arrears in the payment of the above imposed surcharges.
point of metering by the NPC or any other utility is less
than one thousand (1,000) meters from the consumer,
The term 'apprehension' as used herein shall be understood to or (2) the consumer's electric consumption is three
mean the discovery of the presence of any of the circumstances percent (3%) or more of the total load consumption of
enumerated in Section 4 hereof in the establishment or outfit of all the customers of the utility, or (3) there is no other
the consumer concerned. consumer connected to the distribution line of the utility
which connects to the NPC or any other utility point of
metering to the consumer meter.
Section 9. Restriction on the Issuance of Restraining Orders or
Writs of Injunction. - No writ of injunction or restraining order
shall be used by any court against any private electric utility or (b) For rural electric cooperatives:
rural electric cooperative exercising the right and authority to
disconnect electric service as provided in this Act, unless there is
(i) Twenty-two percent (22%) at the end of the
prima facie evidence that the disconnection was made with
first year following the effectivity of this Act;
evident bad faith or grave abuse of authority.

(ii) Twenty percent (20%) at the end of the

If, notwithstanding the provisions of this section, a court issues an
second year following the effectivity of this Act;
injunction or restraining order, such injunction or restraining order
shall be effective only upon the filing of a bond with the court,
which shall be in the form of cash or cashier's check equivalent to (iii) Eighteen percent (18%) at the end of the
the "differential billing," penalties and other charges, or to the third year following the effectivity of this Act;
total value of the subject matter of the action: Provided, however,
That such injunction or restraining order shall automatically be
refused or, if granted, shall be dissolved upon filing by the public (iv) Sixteen percent (16%) at the end at the
utility of a counterbond similar in form and amount as that above fourth year following the effectivity of this Act;
required: Provided, finally, That whenever such injunction is and
granted, the court issuing it shall, within ten (10) days from its
issuance, submit a report to the Supreme Court setting forth in (v) Fourteen percent (14%) at the end of the
detail the grounds or reason for its order. fifth year following the effectivity of this Act.

Section 10. Rationalization of System Losses by Phasing out

Pilferage Losses as a Component Thereof . - There is hereby
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 Provided, That the ERB is hereby authorized to
determine at the end of the fifth year following the
effectivity of this Act, and as often as is necessary,
REPUBLIC ACT NO. 8041
taking into account the viability of rural electric
cooperatives and the interest of the consumers, whether
AN ACT TO ADDRESS THE NATIONAL WATER CRISIS AND
the caps herein or theretofore established shall be
FOR OTHER PURPOSES.
reduced further which shall, in no case, be lower than
nine percent (9%) and accordingly fix the date of the
 Sec. 3. Organization of Joint Executive-Legislative Water Crisis
effectivity of the new caps.
Commission.- Within thirty (30) days after the effectivity of this
Act, there shall be organized a Joint Executive -Legislative Water
Provided, finally, That in any case nothing in this Act Crisis Commission. The Commission shall be chaired by the
shall impair the authority of the ERB to reduce or phase Executive Secretary, with the secretaries of the Department of
out technical or design losses as a component of system Public Works and Highways and the Department of Environment
losses.
and Natural Resources, and the chairmen of the appropriate
Senate and House committees, as designated by the leaders of
Section 11. Area of Coverage. - The caps provided in Section 10 both Houses of Congress, as well as a representative of the
of this Act shall apply only to the area of coverage of private minority from each House , as members.
electric utilities and rural electric cooperatives as of the date of
the effectivity of this Act. There shall be a technical staff constituted by by representatives
of the National Water Resources Board (NAIROBI) , the
The permissible levels of recovery for system losses in areas of Metropolitan Waterworks and Sewerage System (MWSS) , the
coverage that may be added on by either a private electric utility Local Water Utilities Administration (LWUA), the appropriate
or a rural electric cooperative shall be determined by the ERB. committees of the Senate and the House , and the certified
workers' union in the affected water institutions.
Section 12. Recovery of Pilferage Losses. - Any private electric Sec. 4. Purposes and Objectives. - The Commission shall have the
utility or rural electric cooperative which recovers any amount of
following purposes and objectives:
pilferage losses shall, within thirty (30) days from said recovery,
report in writing and under oath to the ERB: (a) the fact of a. to undertake nationwide consultations on the water crisis and
recovery, (b) the date thereof; (c) the name of the consumer
in depth and detailed study and review of the entire water supply
concerned, (d) the amount recovered, (e) the amount of pilferage
and distribution structure;
loss claimed, (f) the explanation for the failure to recover the
whole amount claimed, and (g) such other particulars as may be
b. To enhance and facilitate cooperation and coordination between
required by the ERB. If there is a case pending in court for the
Congress and the executive department in formulating and
recovery of a pilferage loss, no private electric utility or rural
electric cooperative shall accept payment from the consumer implementing the government's water crisis management policy
unless so provided in a compromise agreement duly executed by and strategy;
the parties and approved by the court.
c. To recommend measures that will ensure continuous and
effective monitoring of the entire water supply and distribution
Section 13. Information Dissemination. - The private electric system of the country;and
utilities, the rural electric cooperatives, the NPC, and the National
Electrification Administration (NEA) shall, in cooperation with each d. To conduct continuing studies and researches on policy options,
other, undertake a vigorous campaign to inform their consumers strategies and approaches to the water crisis including
of the provisions of this Act especially Sections 2, 3, 4, 5, 6, 7,
experiences of other countries similarly situated, and to
and 8 hereof, within sixty (60) days from the effectivity of this Act
recommend such remedial and legislative measures as may be
and at least once a year thereafter, and to incorporate a faithful
required to address the problem.
condensation of said provisions in the contracts with new
consumers.
Sec. 5. Powers and Functions. - To carry out the aforementioned
purposes and objectives, the Commission is hereby authorized:
Section 14. Rules and Regulations. - The ERB shall, within thirty
(30) working days after the conduct of due hearings which must a. To secure from any department, bureau, office, agency or
commence within thirty (30) working days upon the effectivity of instrumentality of the government such assistance as may be
this Act, issue the rules and regulations as may be necessary to needed, such as technical information, the preparation of reports,
ensure the efficient and effective implementation of the provisions and the submission of recommendations or plans, as it may
of this Act, to include but not limited to, the development of require;
methodologies for computing the amount of electricity illegally
used and the amount of payment or deposit contemplated in b. To designate by resolution the watershed areas in which
Section 7 hereof, as a result of the presence of the prima facie developmental undertakings are to be suspended; and
evidence discovered.
c. Generally, to exercise all the powers necessary, relevant and
The ERB shall, within the same period, also issue rules and incidental to attain the purposes and objectives for which it is
regulations on the submission of the reports required under organized.
Section 12 hereof and the procedure for the distribution to or
crediting of consumers for recovered pilferage losses. Sec. 6. Negotiated contracts. - For projects to be implemented
under Build-operate-Transfer (BOT) and/or related schemes, the
President of the Republic my, for a period of one (1) year after
the effectivity of this Act, enter into negotiated contracts for the
financing, construction, repair, rehabilitation, improvement and
operation of water facilities and projects related to increasing
water supply, its treatment and its distribution to industrial and
household consumers: Provided, That here is no government
financing or financing guarantee for the contracts, except for the
acquisition of right-of-way.
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The contracts shall be awarded only to contractors with proven h. Steal water for profit or resale;
competence and experience in similar projects, competent key
personnel, efficient and reliable equipment ,and sound financial i. Knowingly possess stolen or tampered water meters ;and
capacity.
j. Knowingly or willfully allow the occurrence of any of the above.
Sec. 7. Reorganization of the Metropolitan Waterworks and
Sewerage System(MWSS) and the Local Waterworks and Utilities Sec. 9. Prima Facie Evidence. - The presence of any of the
Administration (LWUA). - Within six (6) months from the approval following circumstances shall constitute prima facie evidence of
of this Act, the President of the Republic is hereby empowered to theft, pilferage, or of any unlawful acts enumerated in Section 8
revamp the executive of any or all segments of these agencies, hereof:
operations or facilities if necessary, to make them more effective
a.  The existence of illegal or unauthorized tapping to the water
and innovative to address the looming water crisis. For this
main or distribution pipe;
purpose, the president may abolish or create offices, transfer
functions, equipment, properties, records and personnel; institute b. The existence of any illegal connection such as a reversed
drastic cost-cutting and other related measures to carry out said meter, shortened vane wheel, bypass or other connections which
objectives.Moreover, in the implementation of this provision, the adversely affect the registration of the water meter;
prescriptions of Republic Act No. 7430, otherwise known as the"
Attribution Law" shall not apply. Nothing in this section shall c. The presence of a bored hole in the glass cover of the water
result in the dimmunition of the present salaries, and benefits of meter, or at the back of or any part of the meter including the
the personnel in the MWSS and the LWUA : Provided, That any vertical vane;
official or employee of the said agencies who may be phased out
by reason of the reorganization authorized herein shall be entitled d. The presence of tampered, or fake seals on the meters.
to such benefits as may determined by existing laws. Inspection of tampered water meters shall be done in the
presence of the registered water consumer;
The President may upgrade the compensation of the personnel of
the MWSS and the LWUA at rates commensurate to the improved e. The presence of a reversed meter in the premises, insertion of
and efficient revenue collection of the two agencies as determined rod, wire, or stick in the meter, filed or shortened vane wheel,
by the Board of Trustees and the same shall be exempted from removal or altering of any part of the meter mechanism, use of
the provisions of Republic Act No. 6750, otherwise known as the magnet and any similar illegal devices which interfere with the
"Salary Standardization Law", to take effect upon a reduction of meter registration;
non-revenue water to forty percent (40%) and upon approval by
the respective board of trustees of the MWSS and the LWUA of f. Destruction of the meter protection and other metering
their budgets. accessories; or

Sec. 8. Anti-Pilferage. - It is hereby declared unlawful for any g. Abnormal imprints, traces or marks found in the meter
person to: assembly.

a. Destroy, damage or interfere with any canal, raceway, ditch, The prima facie evidence shall not apply to tenants who have
lock , pier, inlet, crib, bullhead, dam, gate, service, reservoir, occupied the house or dwelling for ninety(90) days or less.
aqueduct, water mains, water distribution pipes, conduit, pipes,
Sec. 10. Special Aggravating Circumstances. - The following shall
wire benchmark, monument, or other works, appliance,
considered as aggravating:
machinery buildings, or property of any water utility entity,
whether public or private; a. When the violation is committed in conspiracy with at least
another person, both of whom shall be considered as principals;
b. Do any malicious act which shall injuriously affect the quantity
or quality of water or sewerage flow of any waterworks and/or b. when the offense is committed by, or in connivance with,
sewerage system, or the supply, conveyance, measurement, or private plumber, officer or employee, of the water utility
regulation thereof, including the prevention of, or interfere with concerned, who shall all be considered as principals; or
any authorized person engaged in the discharge of duties
connected therewith; c. when the violation is coupled with the sale from a source which
is illegal, unregistered, or a source with a tampered meter.
c. Prevent, obstruct, and interfere with the survey, works, and
construction of access road and water mains and distribution Sec. 11. Penalties.  - The Water utility concerned shall have the
network and any related works of the utility entity; right and authority to disconnect the water services, five (5) days
after-service of written notice to that effect, except on Sundays
d. Tap, make, or cause to be made any connection with water and holidays, without need of a court or administrative order, and
lines without prior authority or consent from the water utility deny restoration of the same, when a prima facie evidence of
concerned; theft or pilferage shall have been established in accordance with
Section 8 hereof: Provided, That a notice shall have been issued
e. Tamper, install or use tampered water meters, sticks, magnets,
even upon discovery for the first time of the presence of any of
reversing water meters, shortening of vane wheels and other
the circumstances herein enumerated: Provided further, That the
devices of steal water or interfere with accurate registry or
water service shall not be disconnected or shall be immediately
metering or water usage, or otherwise result in its diversion in a
restores upon deposit, by the person concerned, of the concerned,
manner whereby water is stolen or wasted;
of the difference in the billing made by the water utility
f. Use or receive the direct benefit or water service with concerned: Provided, finally, That the deposit shall be credited
knowledge that diversion, tampering, or illegal connection existed against future billings , with legal interest thereon where the
at the time of that use, or that the use or receipt was otherwise alleged theft, pilferage or current diversion has not been
without the authorization of water utility; committed, without prejudice to being indemnified for damages in
accordance with the Civil Code and other existing laws.
g. Steal or polfer water meters, main lines, pipes and related or
ancillary facilities;

114
A written notice of seventy-two (72) hours is necessary to effect
water service disconnection upon the discovery for the second
time of any of the circumstances enumerated in Section 8 hereof.

Any person who shall violate Section 8 hereof shall be punished

REPUBLIC ACT No. 10515
by imprisonment of six (6) months to two (2) years and a fine of
not exceeding double the amount of the value of the water stolen
or the value of the damaged facilities: Provided, however, That if AN ACT PROHIBITING AND PENALIZING UNAUTHORIZED
the offender is assisted in the commission of the crime by a INTERCEPTION, RECEPTION OR USE OF ANY SIGNAL OR
plumber, officer or employee of the water utility concerned, the SERVICE OVER A CABLE TELEVISION SYSTEM OR CABLE
INTERNET SYSTEM AND/OR NETWORK, AND FOR OTHER
said employee, officer or plumber shall be punished by
PURPOSES
imprisonment of two (20 years to six (6) years: Provided, further,
That if the water is stolen for profit or resale, the offender shall be
punished imprisonment from six (6) to twelve (12) years. Section 3. Definition of Terms. – As used in this Act:

If the offender is a juridical person, the penalty shall be imposed

(a) Cable Television (CATV) Service  refers to the
on the chairman, president, general manager, administrator, and transmission or delivery of video and audio signals and
the officers thereof who shall have knowingly permitted, or are programming for a fee, through fiber optics, coaxial
otherwise responsible for the commission of the offense . cable and other technological means.

Sec. 12. Issuance of Guidelines, Implementing Rules and

Regulations. - (b) Cable Internet Service  refers to the transmission or
delivery of electronic signals for a fee, to provide and
Within one (1) month from its organization, the Commission shall facilitate access to the worldwide web, for a fee, through
cause the issuance of guidelines, implementing rules and a CATV transmission or delivery system/network.
regulations necessary to carry out the provisions of this Act.
(c) Cable Television (CATV) System/Network  refers to a
Sec. 13. Commission's Report. - The Commission shall submit a facility engaged in the transmission or delivery of video
quarterly report to the President and to Congress on the and audio signals and programming for a fee, through
implementation of this Act. fiber optics, coaxial cable and other technological
means.
Sec. 14. Sunset Clause. - The Joint Executive-Legislative Water
Crisis Commission shall complete its report and submit its
(d) Cable Internet System/Network  refers to a facility
recommendation to the President and the Congress within a
engaged in the transmission or delivery of electronic
period of six (6) months after its formal organization. After such signals for a fee, to provide and facilitate access to the
period, it shall cease functus officio. worldwide web, for a fee, through a CATV transmission
or delivery system/network.

(e) Cable Television (CATV) Service Provider  refers to

any person, natural or juridical, public or private, which
was granted a Certificate of Authority or Provisional
Authority as provided under existing laws, rules and
regulations, to install, operate and maintain a CATV
System/Network and is actually providing Cable
Television (CATV) Service to its subscribers.

(f) Cable Internet Service Provider  refers to any person,

natural or juridical, public or private, which was issued a
registration certificate as provided under existing laws,
rules and regulations, to provide and facilitate access to
the worldwide web, for a fee, through a CATV
transmission or delivery system/network and is actually
providing Cable Internet Service to its subscribers.

Section 4. Prohibited Acts. – It is hereby declared unlawful for

any person, whether natural or juridical, public or private, to:

(a) intercept or receive, or assist in intercepting or

receiving, any signal offered over a cable television
system or a cable internet system by tapping, making or
causing to be made, any connection to an existing CATV
System/Network or Cable Internet System/Network
without the authority of the concerned CATV Service
Provider or Cable Internet Service Provider;

(b) record, reproduce, distribute, import or sell, any

intercepted or received CATV System/Network signals
for commercial purposes without the authority of the
concerned CATV Service Provider or Cable Internet
Service Provider;

115
 (c) use or receive any direct or indirect benefit, from any shall buy and sell, or in any other manner deal in any
CATV System/Network or Cable Internet article, item, object or anything of value which he
System/Network with knowledge that it is a result of any knows, or should be known to him, to have been derived
of acts enumerated in paragraphs (a) or (b) above; or from the proceeds of the crime of robbery or theft.

(d) wantonly, maliciously and willfully damage, destroy (b) "Fence" includes any person, firm, association
or remove CATV and/or Cable Internet facilities and corporation or partnership or other organization
accessories of authorized CATV and/or Cable Internet who/which commits the act of fencing.
Service Providers.
Section 3. Penalties. Any person guilty of fencing shall be
Section 5. Penalties. – Any person who commits any of the punished as hereunder indicated:
unlawful acts enumerated in the next preceding section shall be
punished with imprisonment of not less than two (2) years but not
(a) The penalty of prision mayor, if the value of the
more than five (5) years or a fine of not less than Fifty thousand
property involved is more than 12,000 pesos but not
pesos (P50,000.00) nor more than One hundred thousand pesos
exceeding 22,000 pesos; if the value of such property
(P100,000.00) or both, at the discretion of the court. If the
exceeds the latter sum, the penalty provided in this
offender is a corporation or association, the president, manager,
paragraph shall be imposed in its maximum period,
managing partner or any officer of the corporation or partnership
adding one year for each additional 10,000 pesos; but
who directly participated in the violation of this Act shall be held
the total penalty which may be imposed shall not exceed
liable.
twenty years. In such cases, the penalty shall be termed
reclusion temporal and the accessory penalty pertaining
Section 6. Information Dissemination. – Within sixty (60) days thereto provided in the Revised Penal Code shall also be
after the effectivity of this Act, the National Telecommunications imposed.
Commission shall undertake an information dissemination
campaign to inform the public of the existence of this Act.
(b) The penalty of prision correccional in its medium and
maximum periods, if the value of the property robbed or
Section 7. Rules and Regulations. – The National stolen is more than 6,000 pesos but not exceeding
Telecommunications Commission, in consultation with CATV and 12,000 pesos.
Cable Internet Service Providers and other affected parties, shall,
within sixty (60) days after the conduct of public hearings which
(c) The penalty of prision correccional in its minimum
must commence within thirty (30) working days upon the
and medium periods, if the value of the property
effectivity of this Act, issue the implementing rules and
involved is more than 200 pesos but not exceeding
regulations to ensure the efficient and effective implementation of
6,000 pesos.
the provisions of this Act

(d) The penalty of arresto mayor in its medium period to

PRESIDENTIAL DECREE No. 1612
prision correccional in its minimum period, if the value of
the property involved is over 50 pesos but not exceeding
ANTI-FENCING LAW OF 1979 200 pesos.

WHEREAS, reports from law enforcement agencies reveal that (e) The penalty of arresto mayor in its medium period if
there is rampant robbery and thievery of government and private such value is over five (5) pesos but not exceeding 50
properties; pesos.

WHEREAS, such robbery and thievery have become profitable on (f) The penalty of arresto mayor in its minimum period if
the part of the lawless elements because of the existence of ready such value does not exceed 5 pesos.
buyers, commonly known as fence, of stolen
properties;lawphil.net
Section 4. Liability of Officials of Juridical Persons. If the fence is
a partnership, firm, corporation or association, the president or
WHEREAS, under existing law, a fence can be prosecuted only as the manager or any officer thereof who knows or should have
an accessory after the fact and punished lightly; known the commission of the offense shall be liable.

WHEREAS, is imperative to impose heavy penalties on persons Section 5. Presumption of Fencing. Mere possession of any good,
who profit by the effects of the crimes of robbery and theft. article, item, object, or anything of value which has been the
subject of robbery or thievery shall be prima facie evidence of
fencing.
NOW, THEREFORE, I, FERDINAND E. MARCOS, President of the
Philippines by virtue of the powers vested in me by the
Constitution, do hereby order and decree as part of the law of the Section 6. Clearance/Permit to Sell/Used Second Hand Articles.
land the following: For purposes of this Act, all stores, establishments or entities
dealing in the buy and sell of any good, article item, object of
anything of value obtained from an unlicensed dealer or supplier
Section 1. Title. This decree shall be known as the Anti-Fencing
thereof, shall before offering the same for sale to the public,
Law.
secure the necessary clearance or permit from the station
commander of the Integrated National Police in the town or city
Section 2. Definition of Terms. The following terms shall mean as where such store, establishment or entity is located. The Chief of
follows: Constabulary/Director General, Integrated National Police shall
promulgate such rules and regulations to carry out the provisions
of this section. Any person who fails to secure the clearance or
(a) "Fencing" is the act of any person who, with intent to permit required by this section or who violates any of the
gain for himself or for another, shall buy, receive, provisions of the rules and regulations promulgated thereunder
possess, keep, acquire, conceal, sell or dispose of, or shall upon conviction be punished as a fence. lawphi1.net

116
Section 7. Repealing Clause. All laws or parts thereof, which are said branch or subsidiary shall secure the required
inconsistent with the provisions of this Decree are hereby clearance or permit.
repealed or modified accordingly.
4. Any goods, article, item, or object or anything of
Section 8. Effectivity. This Decree shall take effect upon value acquired from any source for which no receipt or
approval. equivalent document evidencing the legality of its
acquisition could be presented by the present possessor
or holder thereof, or the covering receipt, or equivalent
Done in the City of Manila, this 2nd day of March, in the year of
document, of which is fake, falsified or irregularly
Our Lord, nineteen hundred and seventy-nine.
obtained, shall be presumed as having been acquired
from an unlicensed dealer or supplier and the possessor
RULES AND REGULATIONS TO CARRY OUT THE or holder thereof must secure the required clearance or
PROVISIONS OF SECTION 6 OF PRESIDENTIAL DECREE NO. permit before the same can be sold or offered for sale to
1612, KNOWN AS THE ANTI-FENCING LAW. the public.

Pursuant to Section 6 of Presidential Decree No. 1612, known as III. Procedure for Procurement of Clearances or Permits
the Anti-Fencing Law, the following rules and regulations are
hereby promulgated to govern the issuance of clearances/permits
1. The Station Commanders concerned shall require the
to sell used secondhand articles obtained from an unlicensed
owner of a store or the president, manager or
dealer or supplier thereof:
responsible officer-in-charge of a firm, establishment or
other entity located within their respective jurisdictions
I. Definition of Terms and in possession of or having in stock used secondhand
articles as defined herein, to submit an initial affidavit
within thirty (30) days from receipt of notice for the
1. "Used secondhand article" shall refer to any goods, purpose thereof and subsequent affidavits once every
article, item, object or anything of value obtained from fifteen (15) days within five (5) days after the period
an unlicensed dealer or supplier, regardless of whether covered, which shall contain:
the same has actually or in fact been used.

(a) A complete inventory of such articles

2. "Unlicensed dealer/supplier" shall refer to any acquired daily from whatever source and the
persons, partnership, firm, corporation, association or names and addresses of the persons from
any other entity or establishment not licensed by the whom such articles were acquired.
government to engage in the business of dealing in or of
supplying the articles defined in the preceding
paragraph. (b) A full list of articles to be sold or offered for
sale as well as the place where the date when
the sale or offer for sale shall commence.
3. "Store", "establishment" or "entity" shall be construed
to include any individual dealing in the buying and
selling used secondhand articles, as defined in (c) The place where the articles are presently
paragraph hereof. deposited or kept in stock.

4. "Buy and Sell" refer to the transaction whereby one The Station Commander may, at his discretion when the
purchases used secondhand articles for the purpose of circumstances of each case warrant, require that the
resale to third persons. affidavit submitted be accompanied by other documents
showing proof of legitimacy of the acquisition of the
articles.
5. "Station Commander" shall refer to the Station
Commander of the Integrated National Police within the
territorial limits of the town or city district where the 2. A party required to secure a clearance or permit
store, establishment or entity dealing in the buying and under these rules and regulations shall file an application
selling of used secondhand articles is located. therefor with the Station Commander concerned. The
application shall state:
II. Duty to Procure Clearance or Permit
(a) The name, address and other pertinent
circumstances of the persons, in case of an
1. No person shall sell or offer to sell to the public any individual or, in the case of a firm, corporation,
used secondhand article as defined herein without first association, partnership or other entity, the
securing a clearance or permit for the purpose from the name, address and other pertinent
proper Station Commander of the Integrated National circumstances of the president, manager or
Police. officer-in-charge.

2. If the person seeking the clearance or permit is a (b) The article to be sold or offered for sale to
partnership, firm, corporation, or association or group of the public and the name and address of the
individuals, the clearance or permit shall be obtained by unlicensed dealer or supplier from whom such
or in the name of the president, manager or other article was acquired.
responsible officer-in-charge thereof.

In support of the application, there shall be attached to

3. If a store, firm, corporation, partnership, association it the corresponding receipt or other equivalent
or other establishment or entity has a branch or document to show proof of the legitimacy of acquisition
subsidiary and the used secondhand article is acquired of the article.
by such branch or subsidiary for sale to the public, the

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3. The Station Commander shall examine the documents IV. Appeals
attached to the application and may require the
presentation of other additional documents, if necessary,
Any party aggrieved by the action taken by the Station
to show satisfactory proof of the legitimacy of acquisition
Commander may elevate the decision taken in the case to the
of the article, subject to the following conditions:
proper INP District Superintendent and, if he is still dissatisfied
therewith may take the same on appeal to the INP Director. The
(a) If the legitimacy of acquisition of any article decision of the INP Director may also be appealed to the INP
from an unlicensed source cannot be Director-General whose decision may likewise be appealed to the
satisfactorily established by the documents Minister of National Defense. The decision of the Minister of
presented, the Station Commander shall, upon National Defense on the case shall be final. The appeal against the
approval of the INP Superintendent in the decision taken by a Commander lower than the INP Director-
district and at the expense of the party seeking General should be filed to the next higher Commander within ten
the clearance/permit, cause the publication of (10) days from receipt of notice of the decision. The decision of
a notice in a newspaper of general circulation the INP Director-General should be appealed within fifteen (15)
for two (2) successive days enumerating days from receipt of notice of the decision.
therein the articles acquired from an
unlicensed dealer or supplier, the names and
V. Penalties
addresses of the persons from whom they were
acquired and shall state that such articles are
to be sold or offered for sale to the public at 1. Any person who fails to secure the clearance or
the address of the store, establishment or permit required by Section 6 of P.D. 1612 or who
other entity seeking the clearance/permit. In violates any of the provisions of these rules and
places where no newspapers are in general regulations shall upon conviction be punished as a fence.
circulation, the party seeking the clearance or
permit shall, instead, post a notice daily for
one week on the bulletin board of the 2. The INP Director-General shall recommend to the
municipal building of the town where the store, proper authority the cancellation of the business license
firm, establishment or entity concerned is of the erring individual, store, establishment or the
located or, in the case of an individual, where entity concerned.
the articles in his possession are to be sold or
offered for sale. 3. Articles obtained from unlicensed sources for sale or
offered for sale without prior compliance with the
(b) If after 15 days, upon expiration of the provisions of Section 6 of P.D. No. 1612 and with these
period of publication or of the notice referred rules and regulations shall be held in restraint until
to in the preceding paragraph, no claim is satisfactory evidence or legitimacy of acquisition has
made with respect to any of the articles been established.
enumerated in the notice, the Station
Commander shall issue the clearance or permit 4. Articles for which no satisfactory evidence of
sought. legitimacy of acquisition is established and which are
found to be stolen property shall likewise be held under
(c) If, before expiration of the same period for restraint and shall, furthermore, be subject to
publication of the notice or its posting, it shall confiscation as evidence in the appropriate case to be
appear that any of the articles in question is filed. If, upon termination of the case, the same is not
stolen property, the Station Commander shall claimed by their legitimate owners, the article/s shall be
hold the article in restraint as evidence in any forfeited in favor of the government and made subject to
appropriate case to be filed. Articles held in disposition as the circumstances warrant in accordance
restraint shall be kept and disposed of as the with applicable existing laws, rules and regulations. The
circumstances of each case permit, taking into Commission on Audit shall, in all cases, be notified.
account all considerations of right and justice
in the case. In any case where any article is 5. Any personnel of the Integrated National Police found
held in restraint, it shall be the duty of the violating the provisions of Section 6 of P.D. No. 1612 or
Station Commander concerned to advise/notify any of its implementing rules and regulations or who, in
the Commission on Audit of the case and any manner whatsoever, connives with or through his
comply with such procedure as may be proper negligence or inaction makes possible the commission of
under applicable existing laws, rules and such violations by any party required to comply with the
regulations. law and its implementing rules and regulations, shall be
prosecuted criminally without prejudice to the imposition
4. The Station Commander concerned shall, within of administrative penalties.
seventy-two (72) hours from receipt of the application,
act thereon by either issuing the clearance/permit VI. Visitorial Power
requested or denying the same. Denial of an application
shall be in writing and shall state in brief the reason/s
therefor. It shall be the duty of the owner of the store or of the president,
manager or responsible officer-in-charge of any firm,
establishment or other entity or of an individual having in his
5. The application, clearance/permit or the denial premises articles to be sold or offered for sale to the public to
thereof, including such other documents as may be allow the Station Commander or his authorized representative to
pertinent in the implementation of Section 6 of P.D. No. exercise visitorial powers. For this purpose, however, the power to
1612 shall be in the forms prescribed in Annexes "A", conduct visitations shall be exercise only during office or business
"B", "C", "D", and "E" hereof, which are made integral hours and upon authority in writing from and by the INP
parts of these rules and regulations. Superintendent in the district and for the sole purpose of
determining whether articles are kept in possession or stock
6. For the issuance of clearances/permit required under contrary to the intents of Section 6 of P.D. No. 1612 and of these
Section 6 of P.D. No. 1612, no fee shall be charged. rules and regulations.

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VII. Other Duties Imposed Upon Station Commanders and INP
District Superintendent and Directors Following Action on
Applications for Clearances or Permits

1. At the end of each month, it shall be the duty of the

Station Commander concerned to:

(a) Make and maintain a file in his office of all

clearances/permit issued by him.

(b) Submit a full report to the INP District

Superintendent on the number of applications
for clearances or permits processed by his
office, indicating therein the number of
clearances/permits issued and the number of
applications denied. The report shall state the
reasons for denial of an application and the
corresponding follow-up actions taken and
shall be accompanied by an inventory of the
articles to be sold or offered for sale in his
jurisdiction.

2. The INP District Superintendent shall, on the basis of

the reports submitted by the Station Commander, in
turn submit quarterly reports to the appropriate INP
Director containing a consolidation of the information
stated in the reports of Station Commanders in his
jurisdiction.

3. Reports from INP District Superintendent shall serve

as basis for a consolidated report to be submitted semi-
annually by INP Directors to the Director-General,
Integrated National Police.

4. In all cases, reports emanating from the different

levels of the Integrated National Police shall be
accompanied with full and accurate inventories of the
articles acquired from unlicensed dealers or suppliers
and proposed to be sold or offered for sale in the
jurisdictions covered by the report.

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