Title
Creation of Presidential Anti-Graft Commission
Law
Op Executive Order No. 12
Decision Date
Apr 16, 2001
Executive Order No. 12 establishes the Presidential Anti-Graft Commission (PAGC) to investigate and hear administrative cases against personnel in the Executive Department, replacing the abolished Presidential Commission Against Graft and Corruption and the inactive National Anti-Corruption Commission, with the aim of assisting the President in the fight against graft and corruption.
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Composition and Leadership

  • Consists of a Chairman and two Commissioners, appointed by the President.
  • All members serve full-time; majority must be members of the Philippine Bar.
  • Chairman ranks as Presidential Assistant II; Commissioners as Presidential Assistant I.
  • Chairman presides over meetings, directs, and supervises policy implementation.

Secretariat and Personnel

  • Secretariat headed by an Executive Director, appointed by the President upon the Chairman’s recommendation.
  • Secretariat manages the day-to-day operations under the Chairman’s supervision.
  • Chairman has authority to appoint, promote, and discipline Secretariat personnel.
  • Allowed to create organizational units with qualified personnel; hiring exempted from restrictions under Administrative Order No. 100 for initial appointments.

Jurisdiction and Functions

  • Responsible for investigating or hearing administrative cases on violations of:
    • Anti-Graft and Corrupt Practices Act (RA 3019, as amended)
    • Unlawful acquisition of property by public officers (RA 1379)
    • Code of Conduct and Ethical Standards for Public Officials (RA 6713)
    • Prohibition on receiving gifts by public officials (PD 46)
    • Certain provisions of the Revised Penal Code
    • Implementing rules and regulations of the above laws
  • Jurisdiction over all presidential appointees at Salary Grade 26 (assistant regional director or equivalent) and higher.
  • Can investigate non-presidential appointees acting in conspiracy with presidential appointees.
  • No jurisdiction over the Armed Forces of the Philippines or the Philippine National Police.
  • Does not entertain anonymous complaints unless probable cause appears.

Procedures for Investigation and Hearings

  • Uses all reasonable means to ascertain facts speedily and objectively while observing due process.
  • Cases involving Undersecretaries or higher are heard by the Commission en banc.
  • Lower rank cases may be delegated to a Commissioner or panel, with final review by the Commission en banc.

Powers Incidental to Investigation

  • Can administer oaths and issue subpoenas to compel testimony and documents.
  • May call upon any executive branch office or government-owned or controlled corporation for assistance.
  • During investigations, may recommend preventive suspension of respondents to the President.

Enforcement Mechanisms

  • Recommends suspension or dismissal for government personnel who fail to comply with subpoenas after formal charges and hearing.
  • Jurisdiction continues despite resignation or retirement of the respondent.

Reporting and Recommendations

  • After investigation or hearing, Commission en banc submits detailed reports and recommended penalties or actions to the President.

Referral to Other Government Units

  • May refer cases to the Office of the Ombudsman or other appropriate government entities for further action.

Preventive and Advisory Functions

  • Conducts or partners in studies on new measures to prevent and minimize graft and corruption.

Consultants and Deputies

  • Chairman may engage qualified consultants and deputies from public or private sectors subject to applicable laws.

Periodic Reporting

  • Required to submit to the President at least 30 days before each congressional session:
    • List of respondents investigated and recommendations
    • List of ongoing investigations and their status
    • Other relevant reports or recommendations

Confidentiality and Fairness

  • Prohibits disclosure of investigation records that could prejudice fair adjudication.
  • All disclosures must be balanced, fair, and accurate.

Transitional Provisions

  • The former Presidential Commission Against Graft and Corruption (PCAGC) continues limited operations on cases pending before the Commission.
  • PCAGC officers and personnel may be transferred to the new Commission.
  • Funds, records, equipment, and properties of PCAGC transferred to the new Commission.

Organizational Rules and Funding

  • Authorized to promulgate rules and regulations for effective implementation.
  • Initial budget set at Php 18,263,000, sourced from the National Anti-Corruption Commission’s budget.
  • Additional funds must be coordinated with the Department of Budget and Management and approved by the President.

Repeal and Supersession

  • Repeals Executive Orders Nos. 151 and 151-A (1994) creating PCAGC.
  • Repeals Executive Order No. 268 (2000) creating the National Anti-Corruption Commission.
  • Abrogates inconsistent issuances, orders, rules, and regulations.

Effective Date

  • Takes effect immediately upon approval by the President.

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