Anti-Graft and Corrupt Practices Act overview

Key definitions and coverage concepts

“Government” includes the national government, local governments, government-owned and government-controlled corporations, and all other instrumentalities or agencies of the Republic of the Philippines and their branches. (Section 2)
“Public officer” includes elective and appointive officials and employees—permanent or temporary—whether in the classified or unclassified or exempt service, receiving compensation even if only nominal, from the government as defined under the preceding category. (Section 2)
“Receiving any gift” includes accepting directly or indirectly a gift from a person other than a member of the public officer’s immediate family, for the public officer or for any family member or relative within the fourth civil degree (consanguinity or affinity), even on occasions like Christmas or family celebrations, when the value is manifestly excessive under the circumstances. (Section 2)
“Person” includes natural and juridical persons unless the context indicates otherwise. (Section 2)

Corrupt practices of public officers

It is unlawful for a public officer to persuade, induce, or influence another public officer to commit a violation of duly promulgated rules and regulations or an offense in connection with the latter’s official duties, or to allow himself to be persuaded, induced, or influenced to commit such violation or offense. (Section 3(a))
It is unlawful for a public officer to directly or indirectly request or receive any gift, present, share, percentage, or benefit for himself or any other person, in connection with any contract or transaction between the Government and any other party, when the public officer, in his official capacity, has to intervene under the law. (Section 3(b))
It is unlawful for a public officer to directly or indirectly request or receive any gift, present, or other pecuniary or material benefit for himself or another from any person for whom the public officer has secured or obtained, or will secure or obtain, any Government permit or license, as consideration for help given or to be given—without prejudice to Section 13. (Section 3(c))
It is unlawful for a public officer to accept employment in a private enterprise (and for any member of his family to accept such employment) when the enterprise has pending official business with the public officer during the period of pendency or within one year after its termination. (Section 3(d))
It is unlawful for a public officer to cause any undue injury to any party (including the Government) or to give any private party unwarranted benefits, advantages, or preferences in the discharge of official administrative or judicial functions through manifest partiality, evident bad faith, or gross inexcusable negligence; this rule applies to officers and employees of offices or government corporations charged with granting licenses or permits or other concessions. (Section 3(e))
It is unlawful for a public officer to neglect or refuse, after due demand or request and without sufficient justification, to act within a reasonable time on any matter pending before him for the purpose of obtaining directly or indirectly some pecuniary or material benefit or advantage from a person interested in the matter, or for the purpose of favoring his own interest or giving undue advantage or discriminating against any other interested party. (Section 3(f))
It is unlawful for a public officer to enter, on behalf of the Government, into any contract or transaction manifestly and grossly disadvantageous to the Government, whether or not the public officer profited or will profit. (Section 3(g))
It is unlawful for a public officer to directly or indirectly have a financial or pecuniary interest in any business, contract, or transaction in connection with which he intervenes or takes part in his official capacity, or in which he is prohibited by the Constitution or by any law from having any interest. (Section 3(h))
It is unlawful for a public officer to become interested, for personal gain, or have a material interest in any transaction or act requiring approval of a board, panel, or group of which he is a member and which exercises discretion in such approval—even if he votes against it or does not participate. (Section 3(i))
Interest for personal gain is presumed against public officers responsible for approving manifestly unlawful, inequitable, or irregular transactions or acts by the board, panel, or group to which they belong. (Section 3(i))
It is unlawful for a public officer to knowingly approve or grant any license, permit, privilege, or benefit in favor of a person not qualified or not legally entitled to it, or in favor of a mere representative or dummy of a person not qualified or entitled. (Section 3(j))
It is unlawful for a public officer to divulge valuable confidential information acquired by his office or by him on account of his official position to unauthorized persons, or to release such information in advance of its authorized release date. (Section 3(k))
The person who gives, offers, or urges the conduct described in Section 3(b), (c), or (k)—including the person offering employment described in Section 3(d) or urging divulging or untimely release of confidential information described in Section 3(k)—is punished together with the offending public officer under Section 9, and is permanently or temporarily disqualified in the Court’s discretion from transacting business in any form with the Government. (Section 3)

Prohibition on private individuals

It is unlawful for any person who has family or close personal relation with any public official to capitalize, exploit, or take advantage of that relation by directly or indirectly requesting or receiving any present, gift, or material or pecuniary advantage from any other person who has business, transaction, application, request, or contract with the Government in which the public official has to intervene. (Section 4(a))
Family relation includes the spouse or relatives by consanguinity or affinity in the third civil degree. (Section 4(a))
“Close personal relation” includes close personal friendship, social and fraternal connections, and professional employment that create intimacy ensuring free access to the public officer. (Section 4(a))
It is unlawful for any person knowingly to induce or cause any public official to commit any of the offenses defined in Section 3. (Section 4(b))

Prohibition involving relatives of top officials

It is unlawful for the spouse or any relative by consanguinity or affinity within the third civil degree of the President of the Philippines, the Vice-President of the Philippines, the President of the Senate, or the Speaker of the House of Representatives to intervene, directly or indirectly, in any business, transaction, contract, or application with the Government. (Section 5)
The prohibition does not apply to a person who, before the assumption of office of the related official, has already been dealing with the Government along the same line of business. (Section 5)
The prohibition does not apply to any transaction, contract, or application already existing or pending at the time the related official assumes office. (Section 5)
The prohibition does not apply to an application filed by the related person when approval is not discretionary on the part of the official concerned and depends only on compliance with requisites provided by law or rules or regulations issued pursuant to law. (Section 5)
The prohibition does not apply to any act lawfully performed in an official capacity or in the exercise of a profession. (Section 5)

Prohibition on Members of Congress

It is unlawful for any Member of Congress, during the term for which elected, to acquire or receive any personal pecuniary interest in any specific business enterprise that will be directly and particularly favored or benefited by any law or resolution authored by the Member and previously approved or adopted by Congress during the same term. (Section 6)
The restriction also applies to any other public officer who recommended the initiation in Congress of the enactment or adoption of any law or resolution and acquires or receives such interest during incumbency. (Section 6)
It is unlawful for such Member of Congress or other public officer who had such interest prior to approval of the law or resolution he authored or recommended to continue for thirty days after such approval to retain such interest. (Section 6)

Statements of assets and liabilities

Every public officer must file a true detailed and sworn statement of assets and liabilities, including amounts and sources of income, amounts of personal and family expenses, and the amount of income taxes paid for the next preceding calendar year, with the proper filing office. (Section 7(a))
Filing must occur within thirty days after approval of this Act or after assuming office. (Section 7(a))
Additional periodic filing is required within the month of January of every other year thereafter. (Section 7(a))
A filing is required upon expiration of the term of office and upon resignation or separation from office. (Section 7(a))
Public officers must file with the office of the corresponding Department Head; Heads of Department or chiefs of independent offices file with the Office of the President; members of Congress and their officials and employees file with the Office of the Secretary of the corresponding House. (Section 7(a))
Public officers assuming office less than two months before the end of the calendar year may file their first statements in the following months of January. (Section 7(a))

Dismissal for unexplained wealth

A finding under the provisions of Republic Act Numbered One thousand three hundred seventy-nine that a public official acquired, during incumbency, an amount of property and/or money manifestly out of proportion to salary and other lawful income, whether in his name or in the name of other persons, establishes a ground for dismissal or removal. (Section 8(a))
Properties in the name of the spouse and unmarried children may be taken into consideration when acquisition through legitimate means cannot be satisfactorily shown. (Section 8(a))
Bank deposits are taken into consideration in enforcing this section notwithstanding any provision of law to the contrary. (Section 8(a))

Criminal and administrative penalties

A public officer or private person committing unlawful acts or omissions under Sections 3, 4, 5, and 6 is punished by imprisonment for not less than one year nor more than ten years, perpetual disqualification from public office, and confiscation or forfeiture in favor of the Government of any prohibited interest and unexplained wealth manifestly out of proportion to salary and other lawful income. (Section 9(a))
A complaining party whose complaint initiated criminal prosecution is entitled, upon conviction, to recover with priority over forfeiture in favor of the Government the amount of money or thing given to the accused, or the fair value of such thing. (Section 9(a))
A public officer violating Section 7 is punished by a fine of not less than PHP 100 nor more than PHP 1,000, or imprisonment not exceeding one year, or both, at the discretion of the Court. (Section 9(b))
Proof of the Section 7 violation in a proper administrative proceeding is sufficient cause for removal or dismissal of a public officer even if no criminal prosecution is instituted. (Section 9(b))
The Court’s disqualification consequences for gift/confidential information violations apply to the person who gives/urges the conduct and the offending public officer under Section 3, with disqualification imposed permanently or temporarily at the Court’s discretion and disqualification from transacting business in any form with the Government. (Section 3)

Court jurisdiction and time bars

Until otherwise provided by law, prosecutions under this Act are within the original jurisdiction of the proper Court of First Instance. (Section 10(a))
All offenses punishable under this Act prescribe in ten years. (Section 11(a))

Restrictions during investigation/prosecution

No public officer is allowed to resign or retire pending an investigation, criminal or administrative, or pending a prosecution against him for any offense under this Act or under the provisions of the Revised Penal Code on bribery. (Section 12(a))

Suspension and benefits during case

Any public officer against whom criminal prosecution under a valid information under this Act or under the Revised Penal Code on bribery is pending in court must be suspended from office. (Section 13(a))
If convicted by final judgment, the public officer loses all retirement or gratuity benefits under any law. (Section 13(a))
If acquitted, the public officer is entitled to reinstatement and to the salaries and benefits he failed to receive during suspension, unless administrative proceedings have been filed against him in the meantime. (Section 13(a))

Exceptions and professional conduct

Unsolicited gifts or presents of small or insignificant value offered or given as a mere ordinary token of gratitude or friendship according to local customs or usage are excepted from the Act’s provisions. (Section 14(a))
The Act does not prejudice or prohibit any private person or any public officer legally practicing a profession, lawful trade, or occupation during incumbency, except when the practice involves conspiracy with any other person or public official to commit violations penalized in the Act. (Section 14(b))

Severability and effectivity

If any provision of the Act or its application to any person or circumstances is declared invalid, the remainder of the Act or the application to other persons or circumstances remains unaffected. (Section 15(a))
The Act takes effect upon approval, and for purposes of determining unexplained wealth, all property acquired by a public officer since he assumed office is taken into consideration. (Section 16(a))
Approval date: August 17, 1960.