6713]

AN ACT ESTABLISHING A CODE OF

CONDUCT AND ETHICAL STANDARDS FOR
PUBLIC OFFICIALS AND EMPLOYEES, TO
UPHOLD THE TIME-HONORED PRINCIPLE OF
PUBLIC OFFICE BEING A PUBLIC TRUST,
GRANTING INCENTIVES AND REWARDS FOR
EXEMPLARY SERVICE, ENUMERATING
PROHIBITED ACTS AND TRANSACTIONS
AND PROVIDING PENALTIES FOR
VIOLATIONS THEREOF AND FOR OTHER
PURPOSES

Section 1. Title. This Act shall be known as

the "Code of Conduct and Ethical Standards
for Public Officials and Employees."
Section 2. Declaration of Policies. It is the
policy of the State to promote a high standard
of ethics in public service. Public officials and
employees shall at all times be accountable to
the people and shall discharge their duties
with
utmost
responsibility,
integrity,
competence, and loyalty, act with patriotism
and justice, lead modest lives, and uphold

Section 3. Definition of Terms. As used in this Act, the term:

(a) "Government" includes the national government, the
local governments, and all other instrumentalities, agencies
or branches of the Republic of the Philippines including
government-owned or controlled corporations, and their
subsidiaries.
(b) "Public Officials" includes elective and appointive
officials and employees, permanent or temporary, whether in
the career or non-career service, including military and police
personnel, whether or not they receive compensation,
regardless of amount.
(c) "Gift" refers to a thing or a right disposed of
gratuitously, or any act or liberality, in favor of another who
accepts it, and shall include a simulated sale or an ostensibly
onerous disposition thereof. It shall not include an unsolicited

(d)"Receiving any gift" includes the act of accepting

directly or indirectly, a gift from a person other than a
member of his family or relative as defined in this Act, even
on the occasion of a family celebration or national festivity
like Christmas, if the value of the gift is neither nominal nor
insignificant, or the gift is given in anticipation of, or in
exchange for, a favor.
(e) "Loan" covers both simple loan and commodatum as
well as guarantees, financing arrangements or
accommodations intended to ensure its approval.
(f) "Substantial stockholder" means any person who
owns, directly or indirectly, shares of stock sufficient to elect a
director of a corporation. This term shall also apply to the
parties to a voting trust.
(g) "Family of public officials or employees" means

(h) "Person" includes natural and juridical persons unless

the context indicates otherwise.
(i) "Conflict of interest" arises when a public official or
employee is a member of a board, an officer, or a substantial
stockholder of a private corporation or owner or has a
substantial interest in a business, and the interest of such
corporation or business, or his rights or duties therein, may be
opposed to or affected by the faithful performance of official
duty.
(j) "Divestment" is the transfer of title or disposal of
interest in property by voluntarily, completely and actually
depriving or dispossessing oneself of his right or title to it in
favor of a person or persons other than his spouse and
relatives as defined in this Act.
(k) "Relatives" refers to any and all persons related to a

Section 4. Norms of Conduct of Public Officials and

Employees. (A) Every public official and employee shall
observe the following as standards of personal conduct in the
discharge and execution of official duties:
(a) Commitment to public interest. Public officials and
employees shall always uphold the public interest over and
above personal interest. All government resources and powers
of their respective offices must be employed and used
efficiently, effectively, honestly and economically, particularly
to avoid wastage in public funds and revenues.
(b) Professionalism. Public officials and employees shall
perform and discharge their duties with the highest degree of
excellence, professionalism, intelligence and skill. They shall
enter public service with utmost devotion and dedication to
duty. They shall endeavor to discourage wrong perceptions of

(c) Justness and sincerity. Public officials and

employees shall remain true to the people at all times. They
must act with justness and sincerity and shall not
discriminate against anyone, especially the poor and the
underprivileged. They shall at all times respect the rights of
others, and shall refrain from doing acts contrary to law,
good morals, good customs, public policy, public order,
public safety and public interest. They shall not dispense or
extend undue favors on account of their office to their
relatives whether by consanguinity or affinity except with
respect to appointments of such relatives to positions
considered strictly confidential or as members of their
personal staff whose terms are coterminous with theirs.
(d) Political neutrality. Public officials and employees
shall provide service to everyone without unfair

(e) Responsiveness to the public. Public

officials and employees shall extend prompt,
courteous, and adequate service to the public.
Unless otherwise provided by law or when required
by the public interest, public officials and
employees shall provide information of their policies
and procedures in clear and understandable
language, ensure openness of information, public
consultations and hearings whenever appropriate,
encourage suggestions, simplify and systematize
policy, rules and procedures, avoid red tape and
develop an understanding and appreciation of the

(f) Nationalism and patriotism. Public officials and

employees shall at all times be loyal to the Republic
and to the Filipino people, promote the use of locally
produced goods, resources and technology and
encourage appreciation and pride of country and
people. They shall endeavor to maintain and defend
Philippine sovereignty against foreign intrusion.
(g) Commitment to democracy. Public officials
and employees shall commit themselves to the
democratic way of life and values, maintain the
principle of public accountability, and manifest by
deeds the supremacy of civilian authority over the
military. They shall at all times uphold the Constitution

(h) Simple living. Public officials and employees and their

families shall lead modest lives appropriate to their positions
and income. They shall not indulge in extravagant or
ostentatious display of wealth in any form.
(B) The Civil Service Commission shall adopt positive
measures to promote
(1)observance of these standards including the dissemination
of information programs and workshops authorizing merit
increases beyond regular progression steps, to a limited
number of employees recognized by their office colleagues
to be outstanding in their observance of ethical standards;
and
(2) continuing research and experimentation on measures
which provide positive motivation to public officials and
employees in raising the general level of observance of these

Section 5. Duties of Public Officials and Employees. In

the performance of their duties, all public officials and
employees are under obligation to:
(a)Act promptly on letters and requests. All public officials
and employees shall, within fifteen (15) working days from
receipt thereof, respond to letters, telegrams or other
means of communications sent by the public. The reply
must contain the action taken on the request.
(b) (b) Submit annual performance reports. All heads or
other responsible officers of offices and agencies of the
government and of government-owned or controlled
corporations shall, within forty-five (45) working days from
the end of the year, render a performance report of the
agency or office or corporation concerned. Such report shall
be open and available to the public within regular office

(c) Process documents and papers

expeditiously. All official papers and
documents
must
be
processed
and
completed within a reasonable time from
the preparation thereof and must contain,
as far as practicable, not more than three
(3) signatories therein. In the absence of
duly authorized signatories, the official
next-in-rank or officerin-charge shall sign
for and in their behalf.

(d) Act immediately on the public's personal

transactions. All public officials and employees
must attend to anyone who wants to avail himself of
the services of their offices and must, at all times,
act promptly and expeditiously.
(e) Make documents accessible to the public.
All public documents must be made accessible to,
and readily available for inspection by, the public
within reasonable working hours.

Section 6. System of Incentives and Rewards. A

system of annual incentives and rewards is hereby
established in order to motivate and inspire public servants
to uphold the highest standards of ethics. For this purpose, a
Committee on Awards to Outstanding Public Officials and
Employees is hereby created composed of the following: the
Ombudsman and Chairman of the Civil Service Commission
as CoChairmen, and the Chairman of the Commission on
Audit, and two government employees to be appointed by
the President, as members.
It shall be the task of this Committee to conduct a periodic,
continuing review of the performance of public officials and
employees, in all the branches and agencies of Government
and establish a system of annual incentives and rewards to
the end that due recognition is given to public officials and