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Transparency and Accountability Network (TAN) August 2007
“The views expressed in this report are strictly those of the authors and do not necessarily reflect those of the United States Agency for International Development (USAID) and the Ateneo de Manila University”.
NETWORTH (in millions of pesos)
15 12.5 10 7.5 3 2.75 2.5 2.25 2 1.75 1.5 1.25 1 0
L i f E s t YL E C h c k
1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006
A Handbook for Civil Society Organizations
A Transparency and Accountablity Network Publication Copyright 2006
With funding support from: Rule of Law Effectiveness U.S. Agency for International Development
Message from TAN
Public officials shall lead modest lives. This is a principle that is stated in Article XI, Section 1 of the 1987 Philippine Constitution and reiterated in Section 4(h) of Republic Act 6713, also known as “Code of Conduct and Ethical Standards for Public Officials and Employees.” Yet it has been accepted by the general public that public servants lead, and in fact many times flaunt, ostentatious lifestyles. A quick scan of the parking lot of the House of Representatives in Quezon City will show many of the latest multi-million peso model sports utility vehicles or imported German luxury cars bearing the number “8” license plate of congressmen. (The question arises, are they congressmen because they are rich, or are they rich because the are congressmen? Neither case is good.) Not only is such display illegal, it is an indicator of possible corruption. It is with this presumption that the government undertook the Lifestyle Check Program to check into possible corrupt officials. Lifestyle checks get a further boost by Republic Act 1379, commonly known as the “Ill Gotten Wealth Law”. RA 1379 basically says that if a public official is observed to live a lifestyle or has acquired assets (wealth) beyond his or her visible means of income, the wealth is presumed to be ill gotten. The law is innovative in that the burden of proof lies with the public official. He or she has the burden to prove that the assets were legally obtained. Unfortunately, the government agencies that have undertaken the lifestyle check program, the Department of Finance, the Ombudsman and the Presidential Anti-Graft Commission, are admittedly undermanned and lack the necessary tools and equipment to conduct comprehensive lifestyle checks on a bureaucracy of 1.5 million. While a vast majority of our public servants serve honestly and humbly, there are still a large number, though in the minority, that are not ashamed to show off some of the wealth they have acquired while in government service. Luxury cars, homes in tony subdivisions, exclusive schools for their children, frequent trips abroad, meals in expensive restaurants, memberships in exclusive country clubs and the like are all evidence of an ostentatious lifestyle.
It is because of the government’s lack of resources and manpower to fully conduct lifestyle checks on public officials, that assistance from the public is badly needed. Almost every citizen now has the power to contribute to
the fight against corruption by gathering information on the lifestyles of public servants and forwarding the same to the appropriate authorities. It is with this type of citizen vigilance in mind that the Transparency and Accountability Network decided to embark on the creation of a Lifestyle Check Manual for citizens, civil society organizations, community organizations and non-governmental organizations. With this manual, such individuals and groups can obtain and submit information that can be useful to the Lifestyle Check Program of government.
Even as we can now all become “informants”, we must also realize that every tip or piece of information that we submit must find its way through to the proper place if it is to lead to a case build up and the filing of a case against a suspected corrupt government official. The information we submit may or may not snowball into a case that can lead to conviction. But even if it does not, the public should remain undaunted, because once all oof us can be potential informants on the lifestyles of public officials it becomes a deterrent to at least the display of wealth. We all need help in the fight against corruption. Armed with this manual and determination, any individual or organized group can contribute to the lifestyle check program to keep our government officials honest and leading modest lives. The Transparency and Accountability Network would like to thank the Rule of Law Effectiveness, with funding support from USAID, for the financial assistance extended to TAN to make this manual possible. Good luck to us all and may God bless the Philippines.
VINCENT T. LAZATIN Executive Director
TABLE OF CONTENTS
Title Introduction Chapter 1: What is Lifestyle Check
1a: Legal Framework of Lifestyle Check 1b: Basics of Lifestyle Check 1c: How did Lifestyle Check in the Philippines Begin?
Page 1 2
3 4 4
Chapter 2: The Investigators
2a: Office of the Ombudsman 2b: Presidential Anti Graft Commission 2c: Department of FinanceRevenue Integrity Protection Service
6 7 7
Chapter 3: Processing Lifestyle Check Cases
3a: Criminal Case 3b: Administrative Case
Chapter 4: The Need for CSOs and the Public’s Role
4a: Just Mere Observation To Dos 4b: With Documents To Dos (with Closer Look at Documents)
Chapter 5: More Tips on CSOs’ Involvement in Lifestyle Check Annexes
1: Salary Grade Table as oof 2001 2: Salary Grade Chart 3: Where are the SALNs? 4: SEC Regional Offices Directory 5: LTO Offices Directory 6: Where to Submit Reports?
A 6- year old child was asked about what she would like to become when she grows up. The child said, “I want to be the President because I want to have my own airplane, lots of mansions, luxury cars and plenty of money to buy everything I want”.
The story above illustrates a common notion not just among children but also among public servants in the Philippines. Many of them think that the way to becoming rich is to get into government. Even if the pay is relatively low, they still try to be employed in a government office because they see that there are plenty of opportunities beyond their official duties to enrich themselves. These opportunities are also called corruption. Corruption is defined as “the abuse of public office for private gain” (World Bank). It happens when there is monopoly and discretion enjoyed by a public official/s and he does/they don’t mind of any accountability. It is done in the dark; somewhere hidden from the public which makes it difficult to detect. But its fruits are observable. Oftentimes, corruption is manifested in the enrichment of a public official. Former President Ferdinand Marcos is one such person known to have enriched himself and his family while he was in public office. According to the Presidential Commission for Good Government (PCGG), Marcos plundered $10 billion from the public coffers (see Box 1). The Philippine government’s loss to corruption is large enough to account for the foreign debt of the country. According to a World Bank study, the Philippines lost $40.6 billion to corruption from 1980 to 2000. In 2000, Philippine debt was estimated at $48 billion. The obscenity of corruption and the flagrant display of its fruits in the lifestyles of erring public officials make LIFESTYLE CHECK a very important tool for ordinary citizens to be able to exact greater accountability from public officials. While there are government investigators conducting lifestyle check, there is still a need for civil society organizations (CSOs) to help strengthen the program. And while there are existing lifestyle check tools by the government, there is a need to translate these tools into terms more applicable to CSOs. This manual is an initiative of the Transparency and Accountability Network (TAN) with support from the Rule of Law Effectiveness (ROLE), a project of the U.S. Agency for International Development (USAID). It aims to educate the general public and civil society organizations (CSOs) by providing a lifestyle check tool which they can use to detect corruption observable in the lifestyle of public officials. With greater public participation, the limited reach of government’s anti corruption programs is hoped to be narrowed down as these citizens become the “arm of the government” in its lifestyle check effort.
Marcos Wealth May Now be Worth US$100B
23-Feb-06 Posted at: http://www.democraticunderground.com/discuss/duboard.php?az=view_ all&address=102x2126573 MANILA (AFP) - State funds and other assets looted by the late Philippine president Ferdinand Marcos and his cronies may now be worth 100 billion dollars but less than two billion dollars has been recovered, an official said Wednesday. The total value was originally estimated to be up to 10 billion dollars and this sum “should be corrected at least by a multiple of 10 due to appreciation” of their value after two decades, said Nicasio Conti of the Presidential Commission on Good Government (PCGG) which is tracking down the wealth. As Manila this week marked the anniversary of Marcos’s 1986 ousting, officials said eight billion dollars worth of assets has so far been firmly identified after a 20-year hunt. But only 1.63 billion dollars has been recovered. They could not say how long it would take to recover the balance, most of which is the subject of lawsuits in Philippine courts. Marcos died in exile in Hawaii in 1989, three years after a bloodless, military-backed popular revolt ended his 20-year rule marked in its latter stages by massive corruption and cronyism.
To fully understand what lifestyle check is, it will help to first define lifestyle. LIFESTYLE according to Answers.Com is an “individual pattern of living as reflected by interests, opinions, spending habits, and activities” (http://www.answers.com/lifestyle). Lifestyle is a very important concept in Philippine governance because there are standards set by law that public servants must subscribe to. Article XI, Section 1 of the 1987 Philippine Constitution states that: Public office is a public trust. Public officers and employees must at all times be accountable to the people, serve them with utmost responsibility, integrity, loyalty and efficiency, act with patriotism and justice, and lead modest lives. Not known to many, public officials must keep modest lives. They are“to live within ones means, and if one’s means are generous, not to flaunt them in conspicuous display” (Fr. Joaquin Bernas, the 1987 Constitution of the Republic of the Philippines: A Commentary, 1996 ed.). This standard is reiterated in Republic Act (RA) 6713, otherwise known as the Code of Conduct and Ethical Standards for Public Officials and Employees. Section 4 (h) of RA 6713 provides: 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: (h) Simple Living- Public officials and employees and their families shall lead their modest lives appropriate to their positions and income. They shall not indulge in extravagant or ostentatious display of wealth in any form. 2
What is Lifestyle Check?
Lifestyle Check is a fact finding investigation conducted by government agencies to determine whether or not there is sufficient evidence to file a graft and corruption case against an official who has acquired his wealth through corruption such as plunder or malversation of funds. Lifestyle check specifically deals with the question “Is the public official’s displayed lifestyle disproportionate with his/her declared income?”
Can Estrada Explain His Wealth?
by Yvonne Chua, Sheila Coronel and Vinia Datinguinoo of the Philippine Center for Investigative Journalism (PCIJ)
Republic Act 1379 or the Act Declaring Forfeiture in Favor of the State Any Property Found to Have Been Unlawfully Acquired by Any Public Officer or Employee and Providing for the Proceedings Therefore sets the circumstances when the wealth of public officials will be presumed to be unlawfully acquired. Section 2 of RA 1379 provides: Whenever any public officer or employee has acquired during his incumbency an amount of property which is manifestly out of proportion to his salary as such public officer or employee and to his other lawful income and the income from legitimately acquired property, said property shall be presumed prima facie to have been unlawfully acquired. XXX RA 1379 shifts the burden showing that the properties were acquired legally to the public official.
1A: Legal Framework of Lifestyle Check
In the course of several months, we obtained and examined 66 corporate records in which Estrada, his wives and his children are listed as incorporators or board members. Altogether, these companies—31 of which were set up during Estrada’s vice-presidential term and 11 since he assumed the presidency—had an authorized capital of P893.4 million when they were registered. The President and his family members had shares of P121.5 million and paid up P58.6 million of these when the companies were formed. It is difficult to estimate how much these businesses are now worth because of incomplete data at the Securities and Exchange Commission (SEC). But based on available 1998 and 1999 financial statements, 14 of the 66 companies alone have assets of over P600 million. This becomes an urgent issue because of the lavish lifestyles of the President’s various households. Two of Estrada’s women companions—Laarni Enriquez and Joy Melendrez—live in posh quarters in WackWack, Mandaluyong City and Green Meadows, Quezon City. According to land records, none of these residences are registered in their names or the President’s. Estrada’s wives and children have also been seen riding a fleet of imported expensive vehicles, including a Jaguar, a Range Rover and several Mercedes Benzes—each of which costs millions of pesos. But neither the President’s statement of assets nor his most recent income tax declaration can explain where he got the wherewithal to support the extravagance of his loved ones. In 1999, Estrada declared in his statement of assets a net worth of P35.8 million and in his income tax return, a net income of P2.3 million.
If in accordance with the provisions of Republic Act Numbered One thousand three hundred seventy-nine, a public official has been found to have acquired during his incumbency, whether in his name or in the name of other persons, an amount of property and/or money manifestly out of proportion to his salary and to his other lawful income, that fact shall be a ground for dismissal or removal. Properties in the name of the spouse and unmarried children of such public official may be taken into consideration, when their acquisition through legitimate means cannot be satisfactorily shown. Bank deposits shall be taken into consideration in the enforcement of this section, notwithstanding any provision of law to the contrary.
1B: Basics of Lifestyle Check
Lifestyle check investigations are out to determine whether the lifestyle of a public official is manifestly out of proportion to his/her known income. LIFESTYLE > KNOWN INCOME
Then a preventive suspension is imposed on him until he/she is cleared of the charges filed against him/her. If the official is found guilty, he/ she will be dismissed from public service and will also be criminally sanctioned in due course. As per RA 1379, the burden of proof shifts to the public official. Thus, he/she should prove that the properties in question were legally acquired. Otherwise the said properties can be forfeited in favor of the government.
Lifestyles are observed through the properties and/or activities of the public official and his/her expenditures such as: § § Real properties Personal properties o Vehicles o Other equipment o Shares of stocks Travels locally or abroad Enrollment fees of children in exclusive schools Extravagant parties Gambling/ visits to Casinos Loan payments Tax payments Cost of living Income, on the other hand, is known from the: § § § Public official’s income from public service o Salaries o Income Income from the spouse and children Other Sources of Income o Business engagements If LIFESTYLE > KNOWN INCOME ...then the subject public official is said to have failed the lifestyle check. 4
1C: How did Lifestyle Check in the Philippines Begin?
The government’s lifestyle check program traces its beginnings from the investigative work of the Philippine Center for Investigative Journalism (PCIJ), which exposed the ill-gotten wealth of former President Joseph Ejercito-Estrada in 2000 (see Box 2). Lifestyle check was adopted by the government after seeing PCIJ’s success in exposing the excessiveness of Estrada’s lifestyles acquired during his presidency. PCIJ’s work gained public attention, including TAN’s. In 2003, TAN and the Presidential Anti-Graft Commission (PAGC) organized a focus group discussion (FGD) for investigative and prosecutorial government bodies to learn about PCIJ’s experience in using LIFESTYLE CHECK as a tool to detect corruption. This paved the way for the start of the government’s LIFESTYLE CHECK program.
§ § § § § § §
1D: Gains from Lifestyle Check
In 2003, the Lifestyle Check program of the government started to show results. High profile cases were then pursued. Top-ranking officials in the Bureau of Internal Revenue, Bureau of Customs, and Department of Public Works and Highways were targeted for lifestyle check. Some of them were suspended from public office while a few were dismissed (see Box 3). This has helped raise public’s hope in the government’s effort in the fight against corruption and boost rervenue collection as reported by Pres. Gloria Macapagal- Arroyo in her 2003 State of the Nation Address (SONA). Box 3
DPWH usec fails lifestyle check, ordered dismissed Posted: 3:23 AM (Manila Time) | Jun. 30, 2004 By Armand N. Nocum, Inquirer News Service IS HE the proverbial big fish? Public Works undersecretary Salvador Pleyto was ordered dismissed from the service Tuesday for allegedly having acquired wealth far bigger than his family’s income could justify. Ombudsman Simeon Marcelo approved on Monday a 20-page report of the Ombudsman investigating panel recommending Pleyto’s dismissal for grave misconduct and dishonesty. The undersecretary was earlier found to have failed the government’s lifestyle check. The report of the panel led by Special Prosecution Officer III Orlando Ines said Pleyto had failed to declare assets amounting to P16,686,643.20 in his 2001 and 2002 statements of assets and liabilities (SALs). But Pleyto, a government employee for 37 years, said the lifestyle check was being “selectively applied.” “There are others in the Cabinet who are really corrupt,” but the graft complaints and charges filed against them are being ignored by the Lifestyle Check Coalition, he said in a phone interview.
Unexplained wealth The Ombudsman said that while Pleyto had declared P4,584,553 and P5,956,219.25 in his 2001 and 2002 SALs, respectively, his bigger asset of P16 million, mostly in real property in Bulacan province, was actually listed in the name of his children -- Russel, Mary Grace and Salvador Jr. “Pleyto’s three children are actually [his] unexplained wealth, since all of them have no substantial income to show that they had the capacity to have lawfully acquired” multimillion-peso assets, Marcelo said. Among the assets are a commercial building and a lot in the name of Mary Grace worth about P500,000; a 632-square-meter lot in the name of Russel worth P1.8 million, and a lot in the name of Salvador Jr. valued at P187,880. The family was also found to have made numerous trips abroad, with Pleyto and his wife alone logging 17 trips starting in 1995. The trips were said to have cost the family about P3,700,000. Pleyto’s annual income is about P346,500. Thriving businesses But in an earlier interview, Pleyto said his wife, Miguela, had been successful in her piggery and poultry businesses since 1993. Pleyto also said earlier that his children had legitimate means of income, including a grocery store, a video rental outlet, a computer shop, a garments business and a motor shop. He said his children had also ventured into the construction, laundry, water station and credit corporation businesses. But graft investigators pointed out that the Pleyto children did not submit any income tax returns, and there was “no credible explanation for their sizable start-up capital for their alleged businesses.” Cont.. fr page 4,, DPWH fails... According to Pleyto, this is particularly true at the Department of Public Works and Highways where, he said, almost all of the top officials were multimillionaires and were living beyond their means. “But they are considered untouchables,” he said. The dismissal order stemmed from a graft case filed by Eduardo Matillano, then director of the Philippine National Police’s Criminal Investigation and Detection Group. It was Matillano who initiated the investigation of Pleyto and members of his family. Marcelo also ordered, apart from the dismissal of Pleyto, the cancellation of his eligibility from service, forfeiture of retirement benefits and perpetual disqualification from employment in the government service. But Pleyto said he would file a motion for reconsideration and was considering taking the matter to a higher court.
The following are the three government agencies mandated to conduct lifestyle check: 1.) Office of the Ombudsman (OMB); 2) Presidential Anti-Graft Commission (PAGC); and 3) Department of Finance (DOF) through its Revenue Integrity Protection Service (RIPS).
2A: Office of the Ombudsman
The Office of the Ombudsman (OMB) draws its authority from the 1987 Philippine Constitution and Republic Act 6770 or the Ombudsman Act of 1989. Section 12, Article XI of the Constitution provides: The Ombudsman and his Deputies, as protectors of the people, shall act promptly on complaints filed in any form or manner against public officials or employees of the Government, or any agency, subdivision or instrumentality thereof, including government-owned or controlled corporations, and shall, in appropriate cases, notify the complainants of the action taken and the result thereof. Section 13 of RA 6770 restates this mandate: The Ombudsman and his Deputies, as protectors of the people, shall act promptly on complaints filed in any form or manner against officers or employees of the government, or of any subdivision, agency or instrumentality thereof, including government-owned or controlled corporations, and enforce their administrative, civil and criminal liability in every case where the evidence warrants in order to promote efficient service by the Government to the people. As provided, the Office of the Ombudsman has jurisdiction over government officials employed in national government agencies, local government units, state universities and colleges and government-owned and controlled corporations. These include the following:
National Government Agencies: Local Government Units: State Universities and Colleges: Government-Owned and Controlled Corporations: e.g. Department of Education, Department of Health e.g. Municipality of Navotas, Quezon City, City of Manila, Barangay Comembo, etc. e.g. University of the Philippines, Polytechnic University of the Philippines e.g. Government Service Insurance System, Social Security System, etc.
Photos from: www.pagc.gov.ph/new%20bldg.jpg, www.tag.org.ph/images/cpDeguzman.jpg, www.newsflash.org/2004/02/pictures/00001801.jpg, and www.newsflash.org/2004/02/pictures/00002704.jpg
It is the Field Investigation Office (FIO) of the OMB that is primarily in-charge with the conduct of lifestyle check and then submits recommendations to the Ombudsman, Asst. Ombudsman and Deputy Ombudsman for appropriate action. In 2002, the OMB had 37 investigators and 32 prosecutors. This increased in 2005 to 150 and 60 respectively. As of 2007, they have 160 investigators and 70 prosecutors.
2B: Presidential Anti-Graft Commission
The Presidential Anti-Graft Commission was created on April 16, 2001 through Executive Order 12. PAGC has “the authority to investigate or hear administrative cases or complaints against all presidential appointees in the government and any of its agencies or instrumentalities (including members of the governing board of any instrumentality, regulatory agency, chartered institution and directors or officers appointed or nominated by the President to government-owned or controlled corporations or corporations where the government has a minority interest or who otherwise represent the interests of the government) occupying the position of assistant regional director, or an equivalent rank, and higher, otherwise classified as Salary Grade “26” and higher, of the Compensation and Position Classification Act of 1989 (Republic Act No. 6758). In the same manner, the Commission shall have jurisdiction to investigate a non-presidential appointee who may have acted in conspiracy or may have been involved with a presidential appointee or ranking officer mentioned in this subsection. The Commission shall have no jurisdiction over members of the Armed Forces of the Philippines and the Philippine National Police.” In the promulgation of Executive Order (EO) 531 on May 31, 2006, PAGC’s power was further expanded not only covering government people . The PAGC according to EO 531 shall “investigate, receive, gather and evaluate evidence, intelligence reports and information on or hear administrative cases against all Presidential appointees and private persons who are acting in conspiracy or connivance with covered Presidential appointees.” As of 2007, PAGC has a total of 22 investigators.
2C: Department of Finance
The Department of Finance (DOF) conducts lifestyle check through the Revenue Integrity Protection Service (RIPS) which was created in 2003 by Executive Order 259. EO 259 has specific provisions as basis for the DOF- RIPS to conduct lifestyle check: Section 2. Jurisdiction. — In the exercise of its powers and functions, the Service shall have jurisdiction over all officials and employees of the Department of Finance, the Bureau of Internal Revenue, the Bureau of Customs and all other agencies attached to the department. Section 3. Powers and Functions. — The Service shall have the following powers and functions. a. To investigate, upon complaint or motu proprio, allegations of corrupt practices of officials and employees of the DOF, the Bureau of Internal Revenue and the Bureau of Customs, and all other agencies under the jurisdiction of the Secretary of Finance; b.To gather evidence and file the appropriate criminal, civil or administrative complainants against government officials and employees within its jurisdiction before the appropriate court of law, administrative body, or agency of competent jurisdiction, and to assist the prosecuting agency or officer towards the successful prosecution of such cases; 7
c. To investigate, upon complaint or motu proprio, unusual or unjustified accumulation of wealth disproportionate to the earning capacity of government officials and employees under its jurisdiction and to initiate, and assist in, the prosecution of such cases for recovery or forfeiture of ill-gotten wealth; At of 2007, DOF-RIPS has 24 investigators/lawyers. In summary, in terms of authority over public officials with excessive lifestyles, the Office of the Ombudsman has overall jurisdiction. The Presidential Anti-Graft Commission covers all Presidential appointees in the executive department with salary grade 26 and above. The Department of Finance RIPS limits its investigations on public officials only to those belonging to agencies under the DOF and/or its attached agencies. Table 1: Summary of Jurisdiction
AGENCY OMB JURISDICTION All government agencies Presidential Appointees with salary grade 25 and above Attached agencies to the DOF PERSON RESPONSIBLE Field Investigation Office Investigation Office LEGAL FUNCTION Fact finding; Criminal and administrative cases Fact finding; Administrative case as a quasi judicial body; recommendatory to the president Fact finding investigation; not a quasi judicial body
Processing Information for Lifestyle Check
Information or complaints submitted to the Office of the Ombudsman, Presidential Anti-Graft Commission and the Department of Finance go through a due process or an established course for judicial proceedings or other governmental activities designed to safeguard the legal rights of the individuals. OMB, PAGC and DOF- RIPS follow a legal process in handling lifestyle check cases as shown in the following sections of the manual. In cases when lifestyle check cases obtain findings that establish violations of RA 3019, 1379 and 6713 develop into criminal and administrative cases. The OMB, PAGC and DOF all process administrative cases but it is only the OMB, however, that has sole jurisdiction over criminal cases. 8
The PAGC and DOF submit such cases received by them to the OMB for further processing and for whatever appropriate action. Generally, administrative cases go through the process shown in Figure 1 below:
3A: Criminal Cases
Submits complaint/ report Complainant
Investigative Officer: Evaluation of complaint/ report
Dismissed for lack of merit
Figure 1. Procedure for Criminal Cases at the Office of the Ombudsman
No Field Investigation Office: Fact-finding Investigation
Is there sufficient information for preliminary investigation?
Initial evaluation by the handling lawyer whether to issue an order requiring the respondent to submit counter affidavit
Issue resolution requiring the respondent to submit counter affidavit
Order to be approved by the Director by the PAMU
Respondents to submit counteraffidavits within 10 days
Is there need for a clarificatory hearing?
Yes Clarificatory hearing
Yes Resolution immediately submitted to OMB
Is the official high ranking? No Reviewed by the Over all Deputy Ombudsman
Records of case and resolution submitted to the Asst. Ombudsman for appropriate action
Complaint submitted for resolution
Sandiganbayan Is the case for the Sandiganbayan or for other courts? Dismiss case Ombudsman File charges against public official in Sandiganbayan Deputy Ombudsman Other courts Dismiss case File charges against public official in the courts
The OMB follows the procedure shown in Figure 1 in processing criminal cases. Lifestyle check is part of the fact-finding investigation which comes at the begininng of the process. Fact finding investigation can be conducted by the Department of Finance and/or the Presidential AntiGraft Commission or in the case of CSOs, information can be gathered as a supplement to the fact finding investigation of the government. Administrative cases, on the other hand, go through the process shown in Figure 2.
3B: Administrative Cases
Submits complaint/ report Complainant1
Initial evaluation by the handling lawyer whether to proceed with adminitrative adjudication
Dismissed on grounds stated in section 20 of 2 RA 6770
Figure 2. Procedure for Administrative Cases at the Office of the Ombudsman
OMB approves order to file counter affidavit plus preventive suspension
Is there sufficient cause to warrant further proceedings on basis of affidavits/ evidence No Dismissed
Docketed as administrative case
Prayer for preventive suspension
Filing of verified position papers by the parties
Is the case ready for resolution?
1. Complaint submitted should be under oath with attached affidavits of witnesses and other evidence and a Certificate of Non-Forum Shopping. 2. Section 20 of RA 6770 provides “The Office of the Ombudsman may not conduct the necessary investigation of any administrative act or omission complained of if it believes that: (1) The complainant has an adequate remedy in another judicial or quasi-judicial body; (2) The complaint pertains to a matter outside the jurisdiction of the Office of the Ombudsman; (3) The complaint is trivial, frivolous, vexatious or made in bad faith; (4) The complainant has no sufficient personal interest in the subject matter of the grievance; or (5) The complaint was filed after one year from the occurrence of the act or omission complained of.
No CLARIFICATORY HEARINGS Hearing Ascertaining of facts of case Formal administrative investigation
Resolution/ Rendition of Decision Is the official high ranking?
Review by Director, Asst Ombudsman or Deputy Ombudsman
Reviewed by the Over all Deputy Ombudsman
Resolution immediately submitted to OMB
Ombudsman makes final decision
Motions for reconsideration or reinvestigation (MR) may be filed by the complainant or respondent within five (5) days from notice thereof with the Office of the Ombudsman, or the proper Deputy Ombudsman as the case may be. Section 7b of Administrative Order 7 as amended further provides though that the “filing of a motion for reconsideration/ reinvestigation shall not bar the filing of the corresponding information in Court on the basis of the finding of the probable cause in the resolution subject of the motion.” As per Office Order No. 12, series of 2004, MRs that will be given due course should only be based on any or both of the two grounds under Section 27 of RA 6770, as amended: (1) new evidence has been discovered which materially affects the order, directive or decision; and (2) errors of law or irregularities have been committed prejudicial to the interest of movant. A public official may be charged with preventive suspension (Section 9) from office without pay “pending investigation if, in the judgement of the Ombudsman or his proper deputy, the evidence of guilt is strong and (a) the charge against such officer or employee involves dishonesty, oppression or gross misconduct, or gross neglect in the performance of duty; or (b) the charge would warrant removal from the service; or (c) the respondent’s continued stay in office may prejudice the just, fair and independent disposition of the case filed against him.
The preventive suspension shall continue until the case is terminated; however, the total period of preventive suspension should not exceed six months. Nevertheless, when the delay in the disposition of the case is due to the fault, negligence or any cause attributable to the respondent, theperiod of such delay shall not be counted in computing the period of suspension herein provided.”
The PAGC follows a similar procedure as that of the Ombudsman in handling administrative cases but instead of the Director, Assistant Ombudsman and Deputy Ombudsman reviewing the recommendation of the FIO, it is the assigned Commissioner. The Commission en banc makes the final recommendation which is submitted to the President. Where the decision is a dismissal of the case for lack of prima facie evidence or jurisdiction, the President is merely advised of the said decision. But in cases where the recommendation of the Commission involves suspension of the charged public official, the Office of the President makes final approval and makes such decision an executory one. As shown in Table 1 PAGC and the OMB have quasi-judicial functions but not the DOF-RIPS. DOFRIPS can only process information on lifestyle check as part of its investigative powers and then recommends appropriate action to the OMB. The investigation process followed by the DOF-RIPS is shown in Figure 3 below:
Submits complaint/ report
Review/ screening of complaints/ reports
Complaint/ report dropped for lack of jurisdiction
Investigation team assigned to case
Investigation proposal submitted to Undersecretary for review
Is there sufficient cause to warrant further investigation?
Figure 3. DOF-RIPS process
Investigation report submitted to Usec. for review and for appropriate action
The Need for CSOs
government personnel, as of 2004 according to the Civil Service Commission is 1,475,699. This makes the ratio of investigators-to-government employees 1:5,926. Compared with the Hongkong Independent Commission Against Corruption, which has an investigators-to-government employees ratio of 1:207.
This ratio implies the limited ability of the government to investigate abusive public officials for excessive lifestyles. The Transparency and Accountability Network (TAN) believes that public participation in government’s lifestyle check program will make it more effective. Because CSOs and the general public live with the possible subjects of lifestyle check in the same community, it will be easier for them to gather information which would require the government so much time and resources to secure.
The OMB, PAGC and DOF- RIPS have a total of 278 investigators combined while the total
CSOs and citizens can be the arm of the government in its lifestyle check effort. The time, money, personnel and energy that the government consumes in finding a subject, gathering information about that subject can be reduced. Or all the government resources spent to gather an information about one subject can be reduced and channeled to investigating another official. When more citizens are informed about lifestyle check, this may also serve as a deterrent to corrupt official.
The Public’s Role
An ordinary citizen plays the role of a tipster in lifestyle check. There are two ways that citizens can participate in lifestyle check: 1.) gathering information by just mere observation 2.) gathering information by securing documents
4A: Just Mere Observation
Here, information gathering will only be through observation. The tipster simply needs to document all his/her observations about the lifestyle and income of a public official, assigns an estimated value to these information and the submits these to the appropriate government agency. 12
Tipster To Dos
The following is a list of ‘To Dos’ for citizens who are interested in lifestyle check: 1. Scan own social environment a. List down personally known public officials and corresponding positions held in government including the corresponding salary grade (SG) (if not known, refer to Annex 1 for the corresponding SG) b. List down other personally known sources of income of said officials aside from government salary c. List down known properties of the public official and his/her family and other observations about the family’s lifestyle (see list above in page) 2. Verify information. Get at least another person to confirm the information gathered. The table below provides means of verifying certain information:
Table 2. Simple Verification Information How to Verify? House/ apartments/ Observe if the family condominiums is the beneficial owner of the said house/ apartment/ condominium. Vehicles Same as above Vacations/Out of Hearing from anoter town/country trips neighbor about the vacation/trip; seeing the official personnaly in the same place Schools of children Seeing the children in school uniform
One is said to be the beneficial owner of a property when even if the documents pertaining to ownership do not reflect his/her name, he/she is the actual user of the said property for a continued period of time.
3. Substantiate information. Substantiating information means providing more details to initially gathered information. Here are guide questions to check whether the information gathered requires further substantiation: a. Is the name of the public official complete? b. Is the designation detailed enough (position, office, etc.)? c. Is the property/activity identified described in detail? (Ex: real property - complete address; vehicle - brand and model)
Scanning the Environment: Mr Santos is an employee of DOST and uses an expensive car to office everyday. Verifying Information: Full name: Mr. Benjamin Santos, Jr. Employment: Mr. Santos is an Administrative Officer III of the Bureau of Internal Revenue District Office II for 10 years. Mr. Santos does not have any business or any other source of income other than his job in government. Mr. Santos earns P8,000 (net) a month. Personal Circumstances: Mr. Santos does not have a wife or children. Car owned: Mazda 3 s.2005 seen to be driven by Mr. Santos to office everyday since February 2005. Substantiating Information: Mr. Benjamin Santos, Jr, an Administrative Officer III at BIR District Office 2 for 10 years and earning P8,000 a month, drives a Nissan Mini Cooper to office everyday since February 2005.
4. Make rough assessment of the known income (All his income; salary and benefit from the government, salary of spouse and children below 18 years old, income from business and legitimate sources) and cost of lifestyle (all his expenses; house, vehicles, hobbies, collection, travel, etc.) Ex: Gross salary per month: P8,000 Length of service: 10 years No other sources of income
EST. KNOWN INCOME = P8,000 X 13* months X 10 years P1,040,000 Ex: Brand new Mazda 3 s.2005 = estimated cost is P1.6 million
5. Simple Analysis. If LIFESTYLE > KNOWN INCOME, then the public official is a potential subject for a more thorough investigation. Simply compare the total estimated lifestyle and salary. *Note: 13 months since government agencies are mandated to pay their employees 13th month.
6. Simple Report Writing. A suggested format for report writing is shown below.
Name of Public Official recommended for Lifestyle Check: Position/ Designation: Government Office: Length of stay in Government Service: Income in Public Service: Income from other sources: Lifestyle Indicators: Property 1: Specifics (description, address, and other information may lead the investigator to subject property for verification work) Estimated Value: Property 2: Specifics: Estimated Value: Property 3: Specifics Estimated Value: Other Activities (Vacation, Schools, Expensive Hobbies, etc.): Estimated Cost: Estimated total cost of lifestyle (as indicated above): Estimated known income: I submit in this report that the KNOWN INCOME of (NAME OF PUBLIC OFFICIAL) is less than his/her COST OF LIFESTYLE, therefore, making him a potential subject of lifestyle check. For your information and for appropriate action. Submitted to: Submitted by (optional):
There is no hard and fast rule on when information gathered is ready for submission to the investigating agencies. Generally, more information is preferred to less, but it still depends on the quality or substantiveness of the set of information gathered. To guide the tipster whether information that will be submitted will be useful to the authorities, here are questions that should be answered with a YES: Does the information strongly indicate disproportionateness of displayed wealth and known income? Does the information strongly point to a conclusion of illegally obtained wealth? The tipster has the option of submitting the report anonymously and be assured of still being attended to. The Ombudsman for instance is mandated to entertain all complaints, whether or not complaints are identified. This means that should there be complaints/reports that reach the OMB whether identified or not, and are found to have merit, the FIO then stands as the nominal complainant during preliminary investigation.
4B: With Documents
While it is recognized that information gathering by mere observation is more practical for citizens and CSOs, documentary evidence remains the strongest form of evidence that can be used against a corrupt official. Observations would certainly help the government and would jumpstart an investigation but documents would be of greater significance so we included this chapter on documents gathering as a guide for those who would like to go as far as securing documents in their involvement in lifestyle check. But this way of information gathering is more difficult compared to the first one because this requires more energy, time and resources despite the public’s right to information guaranteed in the Philippine Constitution:
Article III, Section 7 reads: “The right of the people to information on matters and pubic concern shall be recognized. Access to official records, and to documents and papers pertaining to official records, and to documents, and papers pertaining to official acts, transactions, or decisions, as well as government research data used as basis for policy development, shall be afforded the citizen, subject to such limitations as may be provided by law.”
Here, observation of the alleged public official’s lifestyle will not just be the means for substantiating initially gathered information but documents gathering. This chapter will focus on what documents are needed for lifestyle check and what specific information in these documents are relevant to lifestyle check. Another difference between documents gathering and observation is the appreciation of information gathered. With mere observation, all expenditures are simply classified as lifestyle and all those that the official earns as income. Here, since documents are available, the tipster can use the following formulas based on the documents available:
NETWORTH = Assets – Liabilities (Asset: P1M - Liabilities: P500K= Networth: P500K) COMPUTED INCOME = Net worth – Previous Net worth (Networth: 500K - Previous Networth: P300K= Computed Income: P200K) AGGREGATE COMPUTED INCOME/LIFESTYLE = Computed Income + Current Expenditures (Computed Income: P200K + Expenditure: P500K= Lifestyle: P700K)
KNOWN INCOME= Annual Salaries + Benefits (Annual Salaries: P375K* + Benefits: P65K= Known Income: P440K) REAL WEALTH (RW) = Aggregate Computed Income/Lifestyle – Known Income (Aggregate Computed Income/Lifestyle: P700K - Known Income: P400K= Real Wealth: P300K If Real Wealth > 0 Then Real Wealth is UNEXPLAINED WEALTH
*includes 13th month pay
Below is a list of documents needed to obtain values for each component in the formula. Table 3. Needed Documents for Lifestyle Check
INFORMATION Assets Real properties Proof of ownership Market price, Assessment value Year acquired Location Vehicle: Proof of ownership Value Year acquired Mode of acquisition Equipment: Proof of ownership Value Year acquired Shares of Stocks: Proof of ownership Value Year obtained Liabilities Loans SPECIFICS/ DETAILS DOCUMENTS TO GATHER Statement of Assets, Liabilities and Networth (SALN - current) Deed of Sale Tax declarations Original Certificate of Title Transfer Certificate of Title Certificate of Registration Official Receipt Deed of Sale Photo Certificate of Ownership Official Receipt Deed of Sale Certificate of stocks Deed of Sale/ Deed of Assignment Company records SALN - current Salary and Policy Loans Housing loans Personal loans Other loans SALN: previous year Travels locally or abroad Enrolment fees in exclusive schools Hobbies Travel records.photos School records of children Photos SOURCES OF INFORMATION Depends on what office the public official belongs to (see Annex 5) Assessor’s Office Registry of Deeds
Land Transportation Office
Securities and Exchange Commission Philippine Stocks Exchange Depends on what office the public official belongs to (see Annex) Government Service Insurance System (GSIS), Social Security System (SSS), PAGIBIG Fund, Banks and other financial institutions, Other persons Depends on what office the public official belongs to (see Annex) Bureau of Immigration, Air Transportation Office, Airlines Schools Hotels, casinos, etc.
Previous Networth Current Expenditures
INFORMATION Known Income
SPECIFICS/ DETAILS Government salary Service record Business: Name of company or business Address Financial profile
DOCUMENTS TO GATHER Personal Data Sheet
SOURCES OF INFORMATION Agency to which the public official belongs Civil Service Commission Depends on what office the public official belongs to (see Annex 3) Securities and Exchange Comm Department of Trade and Industry Bureau of Internal Revenue Business Permits and Licensing Office (BPLO)
SALN (current) Company records Income tax payments Business permits
A Closer Look at Documents
This manual presents nine documents that can be useful for Lifestyle Check. Some documents contain the same information. This means information on one document can be validated by another document. As a strategy, the tipster can choose what documents to gather by identifying the kind of information he/she needs. The following are the documents and important information that can be found therein, including the possible leads that can be drawn from the information: A. Personal Data Sheet
2. SURNAME FIRST NAME MIDDLE NAME 4. Date of Birth 5. Place of Birth 6. Sex 7. Civil Status 8. Citizenship 9. Height 10. Weight
PERSONAL DATA SHEET
1. CS ID. No. (to be filled by CSC) PERSONAL INFORMATION
3. NAME EXTENSION 16. Residential Address Male Zip Code 17.Tel. No. 18. Permanent Address 19.Tel. No. 21. E-Mail Add 21. Cellphone No. 23. TIN 25. Name of Child Date of Birth
Kind of Information
Personal Circumstances of Public Official
Relevant Help to the Data Information from Gathering the Document
Complete name Birth Date Civil Status Residential Address Permanent Address GSIS ID no. Leads to the address of a possible property Leads to the address of a possible property Leads to possible loan availed; Yearly expenditure (contributions) Leads to possible loan availed; Yearly expenditure (contributions) Yearly expenditure (contributions) Leads to possible loan availed To check on tax payments made, income made for the year
12. GSIS No. 13. Pag-ibig 14. Philhealth 15. SSS No. FAMILY BACKGROUND 24.SPOUSE’S SURNAME FIRST NAME MIDDLE NAME Occupation Employer Bus. Add.
PAGIBIG ID no.
PhilHealth No. SSS No. Agency Employee No. T.I.N.
FATHER’S SURNAME FIRST NAME MIDDLE NAME EDUCATIONAL BACKGROUND Name of DEGREE YR Highest LEVEL School Grad Level
Inclusive FR TO
Kind of Information
Relevant Help to the Data Information from Gathering the Document
Spouse’s name Occupation Employer/ Business name Business address May be a possible dummy Income capacity of spouse Income capacity of the subject Location of the business for information verification May be possible dummies. Leads to knowing how many dependents the subject has May be a possible dummy May be a possible dummy
Kind of Information
Assets Real Property/ Vehicle
Kind Location of Real Property/ Certificate No and Place of Registration of Vehicle Year Acquired
Help to the Data Gathering
Tel. No. Children’s names, dates of birth
Compare with known income during that time (Will his income in year X allow him/her to purchase the said property?) Was it acquired during his incumbency? For computing lifestyle
Mode of Acquisition Cost Estimated Fair Market Value (PhP) Assessed Value/ Estimated Fair Market Value (Land, Building, etc.; Improvements) Personal and Other Properties Kind Year Acquired Acquisition Cost Liabilities Nature Amount Outstanding Balance Net Worth For the computation of lifestyle Name Leads to knowing whether the official can afford such business/ financial engagement For the computation of networth Leads to knowing whether the public official can afford the said property.
Father’s name Mother’s name Work Experience Position Title Government Agency Monthly Salary
Leads to finding out the subject’s KNOWN INCOME Leads to finding out whether the subject has acquired properties during his incumbency
Children who are 18 years old and below are considered dependents of the public official. As dependents, they do not have income capacities. Properties in the name of children ages 18 and below indicates that the public official is trying to conceal his/her acquired assets. B. Statement of Assets, Liabilities and Networth
Kind of Inormation Relevant Information Help to the Data Gathering
Other Business Interests/ Financial Connections (including those of spouse and dependent children)
Name of Firm/ Company Address Nature of Business Interest and/or Financial Connection Date of Acquisition or Connection Compare with known income during that time (Will his income in year X allow him/her to purchase the said property?) Possible dummies For double checking of information
A. Personal Information Name, Home Address, and Employment Position, Annual Gross Salary Name of Agency/Office Office Address Annual Gross Family Income* Children of declarant below 18 years of age living in Household of Declarant and their date of birth For the computation of Known Income Possible dummies Relatives in Government Service (4th degree of consanguinity/ affinity)
SWORN STATEMENT OF ASSETS, LIABILITIES, AND NET WORTH DISCLOSURE OF BUSINESS INTERESTS AND FINANCIAL CONNECTIONS AND IDENTIFICATION OF RELATIVES IN THE GOVERNMENT SERVICE (Required by R.A. No. 6713) As of ______________________ (Baseline Declaration)
A. DECLARANT’S PERSONAL INFORMATION AND EMPLOYMENT *For Joint filing, make 2 entries for Name, Position, Annual Gross Salary, Name of Agency, and Office Address *Annual Gross Salary refers to ALL amounts received by declarant from Government service Name Home Address Position Annual Gross Salary
* Annual Gross Family Income refers to income of declarant, spouse, and declarant’s children below 18 years of age living in declarant’s household Name of Agency/Office Office Address Annual Gross Family Income
I am married. I have no children below 18 years of age living in my household. Children of Declarant Below 18 Years of Age Living in Household of Declarant (Use additional sheet if necessary)
I am not married. Date of Birth
B. ASSETS, LIABILITIES, AND NET WORTH Instruction for all assets: Declare assets whether the declarant/spouse/child is the legal owner (name appearing on the instrument of title) or t the beneficial owner (property is in the name of another person but ownership pertains to declarant/spouse/child, under a trust arrangement). 1. Real Properties and Vehicles of Declarant/Spouse/Declarant’s Children Below 18 Years of Age Living in the Household of Declarant, regardless of amount (Use additional sheet if necessary) I have no real properties to declare owned by me/ my spouse/my children below 18 years of age living in my household I have no vehicles to declare owned by me/my spouse/my children below 18 years of age living in my household Kind of Real Property/ Type of Vehicle and plate no. Location of Real Property/ Cert No. and Place of Reg of Vehicle Mode Year Cost (Php) Acquisition Estimated Fair Market Value (Php) (Not Applicable to Vehicles) Assessed Value (Php)
Total: 2. Investments, Other Personal Properties, and Liabilities of Declarant/Spouse/Declarant’s Children Below 18 Years of Age Living in the Household of Declarant I have no investments to declare owned by me/my spouse/my children below 18 years of age living in my household I have no personal properties to declare owned by me/my spouse/my children below 18 years of age living in my household I have no liabilities to declare pertaining to me/my spouse/my children below 18 years of age living in my household Instructions: Declare each item with a value of Php50,000 or more, even if the same was acquired at no or less cost. Items with less value may be declared in lump sum as “Others”. However, if “Others” amounts to more than Php 100,000, each item must be listed. Mark the properties to be declared and make the corresponding entry for the Acquisition Cost. B.2.1 Investment Item Stocks (equity paid) Bonds Acquisition Cost B.2.1 Investment Item Pre-need plans (premiums pd) Time deposits Acquisition Cost
B.2.2 Other Personal Property Cash/Bank accounts Receivables Deposits/advanced payments on leases/rentals Furniture, antiques Jewelry Equity in installment purchases Intellectual properties Others GSIS, PAGIBIG loans Mortgage payables Surety liabilities Guaranty liabilities Judgment debts Loans from other institutions Others Total Php: Total Php: Acquisition Cost B.2.3 Liability Personal loans Bank loans Accounts payables Outstanding Balance
3. Net Worth: Declarant/Spouse/Declarant’s Children Below 18 Years of Age in Declarant’s Household
1 Acquisition costs of Real Properties and Vehicles, investments, and Other Personal Properties; less total outstanding balance of Liabilities
C. BUSINESS INTERESTS AND FINANCIAL CONNECTIONS OF DECLARANT/SPOUSE/DECLARANT’S CHILDREN BELOW 18 YEARS OF AGE LIVING IN THE HOUSEHOLD OF DECLARANT (USE ADDITIONAL SHEET IF NECESSARY)
Instruction: Declare each item which generates gross annual receipts of Php 50,000 or more. Items with less value may be declared in lump sum as “Others”. However, if “Others” amounts to more than Php 100,000, each item must be listed I have no business interests and financial connections to declare pertaining to me/my spouse/my children below 18 years of age living in my household. Declarant, Spouse, or Child (Put Name) Name of Entity Address Nature of Business Interest/ Financial Connection Date of Acquisition/ Connection
D. DECLARANT’S RELATIVES IN THE GOVERNMENT (USE ADDITIONAL SHEET IF NECESSARY) Instruction: Up to the 4th civil degree of relationship, either of consanguinity or affinity, including bilas, inso and balae I don’t know of any relatives in Government. Name of Relative Relationship Position
E. STATEMENT I hereby certify to the best of my knowledge and information that these are complete and true statements of my assets, liabilities, net worth, business interests, and financial connections, including those of my spouse and my children below 18 years of age living in my household, and the names of my relatives in the Government, as of _______________, as required by and in accordance with Republic Act No. 6713. I further certify that no assets, liabilities, business interests, financial connections, and relatives in the Government other than those declared herein are known to me, my spouse, and my children below 18 years of age living in my household.
I hereby authorize the Ombudsman or his duly authorized representative to obtain and secure from all appropriate government agencies, including the Bureau of Internal Revenue, such documents that may show such assets, liabilities, net worth, business interests, and financial connections, including those of my spouse and my children below 18 years of age living in my household covering previous years, including the year I first assumed office in Government.
I further undertake to produce all supporting documents for each of the entries herein made when required. Declarant’s Signature: __________________________________ Date ________________ TIN: ______________________ Community Tax Cert No: _______________________ Issued In: _____________________ Issued On: _________________
In case of joint filing: Spouse’s Signature: __________________________________ Date __________________ TIN: ______________________ Community Tax Cert No: ________________________ Issued In: _____________________ Issued On: ________________
SUBSCRIBED AND SWORN TO before me this _______day of ___________________________, 20_____, affiant(s) exhibiting his/her/their Community Tax Certificate(s) as indicated above. ________________________________ (Person Administering Oath) F. GENERAL INSTRUCTIONS FOR BASELINE DECLARATION
1. 2. 3. 4. 5. 6. 7. 8. 9. 10. 11. 12. 13.
The Baseline Declaration (BD), which contains a comprehensive listing of your assets, liabilities, net worth, business interests, and financial connections, shall be accomplished only once, within (30) days from assumption into office, or otherwise upon effectivity of the form in the case of incumbents. The statement of a new entrant must contain comprehensive information as of his/her first day of Government service. The statement of an incumbent must contain information as of January of the current calendar year. The BD must be accomplished in triplicate, of which two (2) copies must be submitted to the Administration/Personnel Division/Unit of your agency. For joint filing by husband and wife, make two (2) entries in Section A for the Name, Position, Annual Gross Salary, Name of Agency/Office, and Office Address. Also, the co-declarant must sign the Statement under Section E. You may use additional forms or sheets if information exceeds the spaces provided. Put “N/A” for each entry that does not apply to you. You must provide information for your spouse, if any, regardless of the status of marriage, except only when your marriage has been declared null and void; has been annulled; or a decree of legal separation has been procured, with finality. You must provide information for all your children below 18 years of age living in your household, regardless of legitimacy or illegitimacy. The fair market value of real property is that amount which a willing buyer and a willing seller can agree on as the purchase price of the property. You may refer to historical data, such as sales transactions of real properties, in the same vicinity. The assessed value of real property is that recorded in the Assessor’s Office, the local Treasurer, or the Sanggunian in the city or municipality where the real property is located. Nte that you are not required to attach any documents to vouch or substantiate the information disclosed at the time of submission. However, you must ensure that all information provided is supported by proper and adequate documentation, and must be prepared to produce the same when required in the future. Moreover, the SALN is made under oath. Falsification of information or failure to file or report information may subject you to disciplinary action. Knowing and willful Office/Address falsification of information may also subject you to criminal prosecution. Penalties under RA 6713 may be any of the following: § § § Imprisonment ≤ five years Fine ≤ P5,000 Dismissal from the service
For further guidance, a Manual for Accomplishing the SALN is available from the Civil Service Commission. You may also contact the OPMD at 951-2637, 951-2639 and 932-0181 for assistance in completing the SALN.
The SALN contains all the needed information for a lifestyle check, the assumption being that it was accomplished truthfully. Properties not declared in the SALN could mean perjury against the public official because the SALN is a legal instrument. In the new SALN, declarants are instructed to declare assets whether the declarant/spouse/child is the legal owner (name appearing on the instrument of title) or the beneficial owner (property is in the name of another person but ownership that pertains to declarant/spouse/child, under a trust arrangement.) This is something that CSOs can take advantage of. Public officials are required to file SALNs upon assumption to office. There are eight repositories of SALNs depending on the designation of a public official found in Annex 5. If the SALN is accessed, it can be the base document for the investigation. Access to the SALN is guaranteedin Section 8C of Republic Act 6713, which provides:
Accessibility of documents. — (1) Any and all statements filed under this Act, shall be made available for inspection at reasonable hours; (2) Such statements shall be made available for copying or reproduction after ten (10) working days from the time they are filed as required by law; (3) Any person requesting a copy of a statement shall be required to pay a reasonable fee to cover the cost of reproduction and mailing of such statement, as well as the cost of certification; (4) Any statement filed under this Act shall be available to the public for a period of ten (10) years after receipt of the statement. After such period, the statement may be destroyed unless needed in an ongoing investigation.”
JUDICIAL FORM NO. 67 (Revised September, 1954) REPUBLIC OF THE PHILIPPINES NATIONAL LAND TITLES AND DEEDS REGISTRATION ADMINISTRATION OFFICE OF THE REGISTER OF DEEDS FOR THE PROVINCE OF ____________
ORIGINAL CERTIFICATE OF TITLE No. _______
103 of the Property Registration Decree (PD No. 1529) Entered, in accordance with section 182 in pursuant to a patent issued by the President of the Philippines, dates at _________, on the __________ of ______________, in the year nineteen hundred and eighty two and spread in the records of the Bureau of Lands, as follows:
MINISTRY OF NATURAL RESOURCES BUREAU OF LANDS 7 HOMESTEAD PATENT No.___________ TO ALL WHOM THESE PRESENTS COME, GREETINGS:
“WHEREAS, it appears that pursuant to the provisions of Chapter IV of Commonwealth Act No. 141, as amended governing the homesteading portions 2 of the public domain, the claim of ____________ has been established and duly consummated in conformity with law for a tract of agricultural public 3 lans situated in the Barrio of _______, Municipality of _________, Province of ____________, Island of __________ Philippines, containing an area of 4 ______ hectares, _____ hectares, ______ ares, ______ centares, according to the official plat of the survey thereof on file in the Bureau of Lands, Manila, and described on the back hereof; “NOW, THEREFORE, KNOW YE, That by authority of teh Constitution of the Philippines, and in conformity with the provisions thereof and of the afforcited Commonwealth Act No. 141 and the Acts supplemental thereto, there is hereby granted unto the said ___________________, of legal age, married 5 to _________________ and residing in ___________________. “TO HAVE AND TO HOLD the said tract of land, the apprtenances thereunto the right belonging unto the said ____________ and to his heir and heirs and assigns forever, subject to the provisions of the sections 118, 119, 121, as amended.... “Given under my hand at the City of Manila, on this, the _______________, in the year of Our Lord one thousand nine hundred and ________________. “Transcribed in the “Registration Book” for the Province of ______________, pursuant to the provisions of section 41 of Act No. 496, this __________ day of ______________ nineteen hundred and ___________, ____________ a.m.”
C. Original Certificate of Title (OCT) 1. Date acquired 2. Name of claimant 3. Location of property (Barrio, Municipality, Province; eg: 52 G Matino St., Bgy. Pinyahan, Diliman, Quezon City) 4. Property description (size of lot; eg: 5 hectares) 5. Name of spouse 6. Owner’s postal address 7. Certificate Title No.
Owner’s Postal Address
Republic of the Philippines DEPARTMENT OF JUSTICE Land Registration Authority
REGISTRY OF DEEDS FOR THE _______________________________
D. Transfer Certificate of Title (TCT) 1. Transfer Certificate Title No. 2. Location of the Property 3. Property Description 4. Name of Claimant/ Owner 5. Name of Spouse 6. Original Certificate’s Date of Registration 7. Original Certificate of Title No. 8. Original Owner 9. Date Acquired 10. Owner’s Postal Address
2 It is hereby certified that certain land situated in the ____________ bounded and described as follows: A PARCEL OF LAND Lot 29 of the subd. plan (LRC) Pcs-17076, being 3 a portion of the cons. Lots 1070-C-2, 1070-C-3 & 1070-C-4 (LRC) Psd 195108 LRC R c. No. Cad. 94), situated in the Bo. of _____, City of ________, Is. of Luzon. Bounded om the NE. points 3 to 4 by Lot 31; on the SE., points 4 to 1 by Lot 30; on the SW., points 1 to 2 Lot 27, all of the cons-subd. plan; and on the NW., points 2 to 3 by existing road. Beginning at a point marked “1” on plan, being S.67 deg. 50 E., 330.62 m. from BLLM 11, Cad.; thence N. 17 deg. 03’W., 15.00 m. to point 2; N. 72 deg. 57 ‘W., 12.00 m. to point of beginning; containing an area ONE 4; S. 72 deg. 57’W., 12.00 m. to the point of beginning; containing an area is registered in accordance with the accordance with the Property 4 5 Registration Decree in the name of* _________, married to _________ ___, of legal age, Filipino, as owner tereof in fee simple, subject to such of the encumbrances mentioned in Section 44 of said Decree as may be subsiding, and to
It is further certified that said land was originally registered on the 6 ______ day of ________, in the year nineteen hundred and _____ in the Registratiob Book of the office of the Register of Deeds of ____ Vol _______ page _____, as Original Certificate of Title No ______, pursu7 ant to Decree No. _________ issued in L.R.C. _________ Record No. 8 _______, in the name of _______________. This certificate is a transfer 9 from __________ Certificate of Ttile No. _________, which is cancelled by virtue hereof in so far as the abovementioned. ________________________ 10 Owner’s Postal ddsress
TRANSFER CERTIFICATE OF TITLE 1 No ___________________
TAX DECLARATION NO. _________
RPTA Project R P A Form No. 1 PROPERTY INDEX NO. ________
1 Declarant/Owner _______________________________________ Administrator __________________________________________ 2
DESCRIPTION AND OTHER PARTICULARS OF PROPERTY 3 Location of Property ______________________________________ (No. and St) (Bgy./Dist) (Mun/City/Province)
FILED UNDER PRESIDENTIAL DECREE NO. 4641
DECLARATION OF REAL PROPERTY
4 Certificate Title No. ____ Cadastral No. ____ Assesor’s No. _____
BOUNDARIES: North: _______________ East: ________________ South: _______________ West: ________________
E. Declaration of Real Property 1. Name of Owner/ Declarant and Address 2. Name of Administrator and Address 3. Location of Property 4. Certificate Title No. 5. Property Description 6. Owner’s Declaration (Kind, Area, Value) 7. Assessor’s Findings (Kind, Area, Class, Unit Value, Market Value) 8. Owner’s Declaration (Kind, No./Area, Value) 9. Assessor’s Findings (Kind, No./Area, Unit Value, Market Value) 10. Owner’s Declaration (Kind, Area, Value) 11. Assessor’s Findings (Kind, Area, Unit Values, Adjustments, Market Value)
(State, streets, lots or streams by which bounded or names of owners of adjoining lands)
I. LAND (AGRICULTURAL/MINERAL)
OWNER’S DECLARATION Kind ASSESSOR’S FINDINGS Area Class Unit Values Area Value Kind
II. ADJUSTED MARKET VALUE (Plants and Trees) Kind
II. LAND (Residential, Commercial, Insustrial, Special) Kind Area Value Kind Area Class
(OTHER INFORMATION) 12. BUILDING AND OTHER IMPROVEMENTS a. Owner’s Declaration (Description, Floor area, Construction materials, Market Value) b. Assessor’s Findings (Description, Floor area, Construction materials, Market Value) 13. MACHINERY a. Owner’s Declaration (Description, Date of operation, Original cost, Depreciation, Market Value) b. Assessor’s Findings (Description, Date of operation, Original cost, Depreciation, Market Value) 14. Total Value (Land and Improvements) 15. T.I.N. The OCT, TCT and Declaration of Real Property contain information that will help establish ownership, location, and value of real property asset. The OCT/TCT however does not always contain the name of the beneficial owner of the property in question. The Declaration of Real Property would more probably contain the name of the ‘beneficial owner’ as he/she is likely to pay the real property tax. Of the three documents, therefore, the Declaration of Real Property provides compelling basis or indication of ownership.
F. Official Receipt of Motor Vehicles Registration (OR) 1. Date of registration 2. Received from 3. Address 4. Plate No.
Republic of the Philippines
DEPARTMENT OF TRANSPORTATION AND COMMUNICATIONS
LAND TRANSPORTATION OFFICE
East Avenue, Quezon City
Field Office____________ Field Office Code:___________ OFFICIAL RECEIPT DATE: 1 -----------------------------------------------------------------------------------------------RECEIVED FROM (Last name, First name, MI) __________________________________________________________ ADDRESS (No., Street City, Municipality, Province, Zip Code) 3 _____________________________________________________ PAYMENT DETAILS
Transaction: Posted: Private: File No: PLATE NO.
Just like the OCT and TCT (for real property), the names of owners indicated in the CR and OR for motor vehicles do not necessarily reflect the beneficial owner. Do a beneficial ownership test, find out whether the alleged official is the one using the vehicle for a continued period of time Make, series and model of the vehicle help determine its value. For instance the price of cars bought brand new can be checked with the local distributors. While second-hand cars’ prices can be checked from the Car Finder magazine. The Date of Registration will also give the tipster an idea of the vehicle’s value.
BREAKDOWN OF PAYMENT
TOTAL AMOUNT PAID
THE SUM OF (in pesos) MODE OF PAYMENT
CHIEF OF OFFICE
DEPARTMENT OF TRANSPORTATION & COMMUNICATIONS
Republic of the Philippines
LAND TRANSPORTATION OFFICE East Ave., Quezon City
CERTIFICATE OF REGISTRATION
MY FILE NO.
G. Certificate of Registration for Vehicles 1. Date of Registration 2. Motor Vehicle File No. 3. Plate No. 4. Make 5. Series 6. Year Model 7. Complete Owner’s Name 8. Complete Address 9. Details of First Registration 10. O.R. Date (first registration) To secure documents from LTO, tipster can write a letter of request to the Records Section of the LTO office in where you think the vehicle was registered. (See Annex 4 for a list of LTO offices).
PLATE NO. PISTON DISPLACEMENT SERIES
ENGINE NO. NO. OF CYLINDERS BODY TYPE
CHASSIS NO. FUEL BODY NO./YR. MODEL
7 TEL. NO./CONTACT DETAILS 8 COMPLETE ADDRESS (No., Street, Municipality, Province)
COMPLETE OWNER’S NAME ENCUMBERED TO
DETAILS OF FIRST REGISTRATION
9 O.R. NO. 10
This is to certify that the Motor Vehicle described herein is duly registered. This certificate is VALID only when signed by authorized LTO officials, Property sealed and accompanied by Official Receipt as proof of payment. Any unauthorized resource or alteration hereon will invalidate this document.
ANNELI R. LONTOC Chief of Office Signature/Date
Republic of the Philippines Department of Trade and Industry
H. Certificate of Business Registration (Department of Trade and Industry) 1. Business Name 2. Address 3. Name of Registrant 4. Validity Period of Registration 5. Date of Regisration 6. Certificate No. DTI records are available at the DTI Central Office located at 385 Industry and Investments Building, Senator Gil Puyat Avenue, Makati City.
1 BUSINESS NAME Address 2
is a business name registered in this office pursuant to the provisions of Act 3883, as amended by Act 4147 and Republic Act 863, and in compliance with applicable rules and regulations prescribed by the Department of Trade and Industry.
3 NAME OF REGISTRANT 4 is valid from __________ to __________ subject to continuing
compliance with the above mentioned laws and all applicable laws of the Philippines, unless voluntarily cancelled. In testimony whereof, I hereby sign this
This Cetificate issued to
Certificate of Business Name Registration 5 and issue the same this ____ day of _______
at _______ Philippines Provincial Director DTI- Palawan Provincial Office
6 Certificate No. ______________________
This Certificate is not a license to engage in any kind of business
BTRCP FORM Certificate No. : ________ NO. 16A Date Registered: _______ Republic of the Philippines Please read Expity Date: ___________ Department of Trade and Industry instruction TRN No: ______________ requiremenrs at the back before filing up APPLICATION FOR SOLE PROPRIETORSHIP application
(PLEASE TICK THE BOX FOR THE APPROPRIATE APPLICATION FOR REGISTRATION OF BUSINESS NAME UNDER THIS ACT NO. 3883, AS AMENDED) (TO BE ACCOMPLISHED IN DUPLICATE)
I. Application for Sole Proprietorship (Department of Trade and Industry) 1. Name (Surname, Given Name, Middle Name) 2. Residence Address 3. Business Address 4. T.I.N. 5. Renewal (Old Certificate No.) 6. Total No. of Employees 7. Name of Manager/ Administrator 8. Capitalization 9. Nature of Business 10. Former Owner of Business a. Business Name b. Method of Acquisition c. Old Certificate No. d. Proposed Business Names
BUSINESS NAME (To be filled up by DTI Examiner) Surname
RESIDENCE ADDRESS Number Street BUSINESS ADDRESS Number Street
DATE OF BIRTH E-MAIL
For Renewal Only Old Certficate No.
RESIDENCE PHONE Business Phone
Applicable for Franchisee or Branch only (Pls check the box where applicable) Date of Registration TOTAL NO. OF Licensed to use as trademark, tradename, or service name as part of bu name? ________________ EMPLOYEES CITIZENSHIP Filipino How acquired GENDER Male Female Natural Born Election Naturalization Widowed
NAME OF MANAGER/ADMINSITRATOR Surname Given Name M.I.
MARITAL STATUS Single Married
CAPITALIZATION (in nearest thousand pesos)
Manufacturer/Producer Retailer Service Wholesaler
NATURE OF BUSINESS Main Activity Exporter
FORMER OWNER OF BUSINESS Business Name METHOD OF ACQUISITION Sale
OLD CERTIFICATE NO.
Proposed Business Names a. _____________________________________________________________________________________________ b. _____________________________________________________________________________________________
GENERAL INFORMATION SHEET 1 For the Year ____________________
J. General Information Sheet (Securities and Exchange Commission) 1. For the Year 2. Corporate Name 3. Business/ Trade Name 4. Date Registered 5. SEC Registration Number 6. Corporate TIN 7. Complete Principal Office Address 8. Complete Business Address 9. Name of External Auditor & Its Signing Partner 10. Contact Nos.
GENERAL INSTRUCTIONS: 1. FOR USER CORPORATION: THIS GIS SHOULD BE SUBMITTED WITHIN THIRTY (30) DAYS FROM THE ANNUAL STOCKHOLDERS’ MEETING. DO NOT LEAVE ANY ITEM BLANK. WRITE N.A. IF THE INFORMATION REQUIRED IS NOT APPLICABLE TO THE CORPORATION OR “NONE” IF THE INFORMATION IS NON- EXISTENT. 2. IF NO MEETING IS HELD, THE CORPORATION SHALL SUBMIT GIS TOGETHER WITH AN AFFIDAVIT OF NON-HOLDING OF MEETING WITHIN THIRTY (30) CALENDAR DAYS FROM THE DATE OF THE SCHEDULED ANNUAL MEETING (AS PROVIDED IN BY-LAWS) HOWEVER, SHOULD AN ANNUAL STOCKHOLDERS’ MEETING BE HELD THEREAFTER, A NEW GIS SUBMITTED/FILED. 3. THE GIS SHALL BE ACCOMPLISHED IN ENGLISH AND CERTIFIED AND SOWRN TO BY THE CORPORATE SECRETARY OF THE CORPORATION. 4. THE SEC SHOULD BE TIMELY APPRISED OF RELEVANT CHANGES IN THE SUBMITTED INFORMATION AS THEY ARISE. FOR CHANGES RESULTING FROM ACTIONS THAT AROSE BETWEEN THE ANNUAL MEETINGS, THE CORPORATION SHALL SUBMIT ONLY THE AFFECTED PAGE OF THE GIS THAT RELATED TO THE INFORMATION TOGETHER WITH A COVER LETTER SIGNED BY THE CORPORATE SECRETARY OF THE CORPORATION. THE PAGE OF THE GIS AND COVER LETTER SALL BE SUBMITTED WITHIN SEVEN (7) DAYS AFTER SUCH CHANGE OCCURRED OR BECAME. EFFECTIVE. 5. SUBMIT FIVE (5) COPIES OF THE GIS TO THE CENTRAL RECEIVING SECTION, GROUND FLOOR, SEC BLDG., EDSA, MANDALUYONG CITY. ALL COPIED SHALL UNIFORMLY BE ON A4 OR LETTER- SIZED PAPER WITH STANDARD COVER PAGE. THE PAGES OF ALL COPIES SHALL USE ONLY ONE SIDE. CORPORATIONS SUBMIT TING A COPY OF THEIR GIS ONLINE VIA INTERNET SHALL SUBMIT ONE HARD COPY OF THE GIS, TOGETHER WITH A CERTIFICATION UNDER OATH BY ITS CORPO RATE SECRETARY THAT THE COPY OF THE SUBMITTED ONLINE CONTAINS THE EXACT DATA OF THE HARD COPY. 6. ONLY THE GIS ACCPMPLISHED IN ACCORDNACE WITH THESE INSTRUCTIONS SHALL BE CONSIDERED AS HAVING BEEN FILED. 7. THE GIS MAY BE USED AS EVVIDENCE AGAINST THE CORPORATION AND ITS RESPNSIBLE DIRECTORS/OFFICERS FOR ANY VIOLATION OF EXISTING LAWS, RULES AND REGULATIONS.
3 7 9
INDUSTRY CLASSIFICATION INTERCOMPANY AFFILIATIONS SEC REGISTRATION NO.
FISCAL YEAR END: CORPORATE TIN:
DATE OF ANNUAL MEETING PER BY-LAWS: ACTUAL DATE OF ANNUAL MEETINGS: COMPLETE PRINCIPAL OFFICE ADDRESS: COMPLETE BUSINESS ADDRESS:
WEBSITE/URL ADDRESS: E-MAIL ADDRESS: FAX NUMBER: TELEPHONE NUMBER:
NAME OF ITS EXTERNAL EDITOR AND ITS SIGNING PARTNER PRIMARY PURPOSE/ACTIVITY/INDUSTRY PRESENTLY ENGAGED IN: PARENT COMPANY
SEC REGISTRATION NO.
11. Intercompany Affiliations a. Parent Company, SEC Registration No, Address b. Subsidiary/ Affiliate, SEC Registration No., Address 12. Capital Structure a. Authorized Capital i. Type of Shares ii. Number of Shares iii. Par/ Stated Value iv. Amount b. Subscribed Capital c. Paid Up Capital 13. Directors/ Officers a. Name, Nationality, Current Residential Address b. Inc’r, Board, Stock Holder, Officer, Exec. Comm., TIN
How to Access SEC Documents
1) Go to the SEC Office located at SEC Building, EDSA Greenhills, Mandaluyong City or in their provincial offices. (see Annex 3) 2) In the SEC Central Office, computer facilities are provided to help clients/users search for information. This may not be the case in the SEC regional offices. 3) Be patient in transacting with government offices. Also, take note that SEC only allows users to check three (3) records per day. 4) You may need to pay for the printing of documents
Organizing and Doing an Actual Lifestyle Check Work
As mentioned in the previous section, securing documents requires more effort and resources than doing just mere observation. Therefore, the organization/s or individuals who would like to do this should come up with ways to maximize their available resources which are discussed in this section. 1. MAP RESOURCES. The organization can begin by mapping out resources that it can mobilize for lifestyle check. This is especially critical for manpower resources which is the most critical element in lifestyle check involvement. The tables in the next page show examples of different ways to map manpower resources, as done by Barug! Pilipino, a non-government organization based in Cebu City during a pre test of this manual.
Table 4. According to Fields of Specialization Fields of Study Number of Volunteers Possible Assignments
Network with media outfits for information on subject General research work Computation; market research on cost of assets or salary rates General research work; Training of other volunteers Research specific to Customs officials General research work
Mass Communication 2
If the tipster however is personally affiliated with the subject in question, it may not be good for the tipster to be part of the information gathering because of the likely bias he/she will have. Below is the suggested Code of Conduct for individual probers by TAN: a) Fully disclose all (personal, social, professional) affiliations with government officials; b) Be courteous and respectful in interacting with government officials; c) Act low-profile. Do not attract public attention when gathering information; d) Do not divulge any information about the information gathering outside assigned investigation teams; e) Always submit/surrender information gathered to office custodian within 24 hours. Do not bring home documents from the team; f) Religiously document observations about especially those pertaining to security problems encountered; g) Do not accept any benefit, gift and/or consideration from government officials; h) Be completely honest about issues of ethics and conduct of fellow tipsters and bring forward to the team’s attention; and i) Do not withhold any relevant information
Psychology Business Administration Education
Customs Administration Philosophy
Table 5. According to Area of Operations Schools
University of the Philippines - Cebu University of Cebu NSJR STC Javellana College
Number of Volunteers
1 2 1 1 1
Offices close to UP - Cebu Offices close to Univ. of Cebu Offices close to NSJR Offices close to STC Offices close to STC
2. DRAFT CODE OF CONDUCT. The organization should also draft a code of conduct for all individuals and partner organizations involved. This is to set the parameters of involvement and/or partnership. This will also be help ensure the integrity of the project as well as the security of the tipsters. The TAN-suggested Code of Conduct begins with a full disclosure statement on the tipster’s personal background. The tipster should disclose his/her affiliations with government officials (personal, social and professional). Personal affiliations of the tipster can work to the advantage or disadvantage of the lifestyle check operations. For instance, if the personal affiliation can help in accessing hardto-access documents then that will be good for the program. 29
3. OBSERVE AND PREPARE DOCUMENTATION. Consider the case in box 4 below:
Dolores N. Domingo is a Customs Operating Officer IV at the Bureau of Customs with an annual salary of P296,673.00. Her husband, who works as a foreman for a Koreanowned construction firm based in Laguna, is known to be a “sabong addict”. They have three children; his eldest son is working as an agent in a call center and the other two are still in college. Her second son goes to San Beda Law School while her youngest daughter, at the Centro Escolar University taking up Business Management. Both stay in a condominium unit in Manila. Dolores and her husband reside in Binan, Laguna in a house and lot they own. They live there together with Dolores’ father who is a retired military. They also own five units of apartment in the area leased for P10,000/month. Last year, Dolores decided to venture into a catering business in partnership with her friend who is also an officemate. Their business went well so they hired more staff to work for them. That same year, Dolores’ younger son won in a prestigious competition among law students. As a reward, Dolores bought him a vehicle worth P640,000. The brand new car was given to him during the 18th birthday party of her sister at the Manila Hotel. During the same year, Dolores’ husband was given a salary increase of P10,000/month. Because of this, they decided to buy six (6) brand new units of Toyota Revo to be used in a transport business. After six months of operation, the transport business closed down. They sold their three units of Revo for a cheaper price and bought a brand new Pajero. The failure of the transport business however brought depression to Dolores and her family. To lighten up a bit, they went to Singapore for a family trip. In the meantime, Dolores’ father was diagnosed with lung cancer and was confined in St. Luke’s Hospital for 2 months. Unfortunately, because of multiple organ complications, Dolores’ father died.
Based on the earlier section on report-writing, the report that can be generated from this information will look like the one in Table 7 (report was generated by Barug! Pilipino youth).
Table 6. Documentation Name of Public Official recommended for Lifestyle Check: Dolores N. Domingo Position/ Designation: Customs Operating Officer IV Government Office: Bureau of Customs Length of stay in Government Service: Income in Public Service: P22,821.00/month Income from other sources: Husband - P? plus increase of P10,000 per month Son’s salary as call center agent Apartment Rental - P10,000/month x 5 units Catering Business Transport Business Retirement compensation of father Sale of 3 units of Toyota Revo Lifestyle Indicators: Property 1: Condominium in Manila Property 2: 5 apartment units in Binan, Laguna Property 3: Start up capital for Catering business Property 4: Vehicle gift to son worth P640,000 Property 5: Brand new pajero Property 6: House and lot in Laguna Property 7: brand new Revo Other Activities (Vacation, Schools, Expensive Hobbies, etc.): Debut party at Manila Hotel Family vacation to Singapore Hospitalization expenses (2 months confinement at St. Luke’s Hospital) Sabong Schooling expenses - San Beda Law School, Centro Escolar University (Business Management)
4. EXPAND THE DOCUMENTATION. Expand the report with two more columns, identifying the kind of information gathered and the documents needed to further support the observation made to prove an excessive lifestyle. COLUMN 2 = NEXT STEPS COLUMN 3 = SUPPORTING DOCUMENTS (Example: Table 8)
Table 7. Expanded Documentation
INFORMATION NAME OF PUBLIC OFFICIAL POSITION/ DESIGNATION GOVERNMENT OFFICE LENGTH OF STAY IN GOVERNMENT SERVICE INCOME IN PUBLIC SERVICE Dolores N. Domingo Customs Operating Officer IV Bureau of Customs ? NEXT STEPS Verify Verify Verify: what division, where? Find out length of public service Verify SUPPORTING DOCUMENTS Personal Data Sheet Personal Data Sheet Personal Data Sheet Personal Data Sheet REMARKS
INCOME FROM OTHER SOURCES
Find out salary
Personal Data Sheet Statement of Assets, Liabilities and Net Worth Pay slip Income Tax Return
Son’s salary Apartment rental (P50,000 per month) Catering Business
Find out salary Verify Find out income
Pay slip Income Tax Return
If difficult to gather, an estimate can be made using highest, realistic standard; Another creative way of getting this is through a credit card application or other related applications that require ITR or a statement on the financial capability of the applicant. same Interview the lessees
Find out income
Income Tax Return General Information Sheet - filed yearly Income Tax Return General Information Sheet - filed yearly
Estimate based on observation of sales per day Estimate
Retirement compensation of father Sale of 3 units of Toyota Revo vehicle
Find out Find out Deed of Sale
Estimate Interview buyer; Estimate based on market rates (e.g. Car Finder)
5. TASKING. Refer to the profile of resources and strategically assign tasks according to how each one can contribute to the information gathering activity. Accomplish this by adding one more column to the table as shown below:
Table 8. Resources INFORMATION NEXT Assigned STEPS NAME OF PUBLIC Dolores N. Domingo Verify OFFICIAL SUPPORTING DOCUMENTS Personal Data Sheet REMARKS RESOURCES ASSIGNED
6. DOCUMENTS-GATHERING. Mobilize tipsters to gather the information based on their assignments.There were information in the previous section about how and where some documents can be secured. Here are suggested ways to gather other information for lifestyle check: 1) SCHOOL RECORDS. You can verify with the school administrators the cost of tuition fees and other miscellaneous expenses that are incurred by students enrolled in the said schools. Most educational institutions also have websites that can be visited for such information. 2) GOLF CLUBS/ YACHT CLUBS. You can gather information from the website. (www.federationgolf.com; www.sailphi.org.ph/ clubs) 7. INTERVIEW of KEY INFORMANTS. From the documents gathered, the tipsers may identify key persons that can be interviewed who may be able to add relevant information to the data gathering. Table 9 below shows some key informants who can possibly be interviewed. Table 9. Key Informants
INFORMATION Real Estate Properties (Costs, Ownership) Construction (Cost, Ownership) KEY INFORMANTS Real Estate Agents, Security Guards of the Subdivision, House helpers Engineers and Architects of the construction
9. REPORT-WRITING. Take note of all kinds of information that can be gathered because the smallest details may provide hints to gaps in the data gathering. TAN’s suggested format is shown in table 10. The report should facilitate the governmen in proving that the subject lived an EXCESSIVE LIFESTYLE. The organization need not disclose specifically who the sender of the report is. It is important to begin with a declaration whether the tipster was able to secure the SALN of the public official because it is central to the kind of information gathering being conducted. Table 10
PERSONAL CIRCUMSTANCES Name of Public Official: Position: Government Office: Length of Government Service: With SALN? Yes/ No KNOWN INCOME Source Declared Amount XXX XXX
Verified Amount XXX PHP Verified Amount
Supporting Document (Attachment X)
TOTAL LIFESTYLE COST AssetsDeclared LiabiliAmount ties/ Expenditure etc. XXX XXX TOTAL CONCLUSION
Vehicles (Cost, Ownership)
car dealers, sales agents
8. THE BENEFICIAL-OWNER TEST. In proving that the subject is the beneficial owner of a property (vehicle, real property) when the documents reflect otherwise, the tipster has to establish the subject’s beneficial use of a certain property for a continued period of time, such as: a) Testimony of neighbors of the subject regarding use of property for a continued period of time; and/or b) Pictures of subject using property for a continued period of time (establish dates of use). 33
LIFESTYLE COST > KNOWN INCOME BY PHP XXX (Please refer to attached documents for further reference)
If the organization decides to submit an affidavit and identify a specific person/person who will act as complainants (see Table 11).
Table 11 COMPLAINT AFFIDAVIT
I, (name), of legal age, (status), Filipino, with address at ________________, after having been duly sworn in accordance with law, hereby depose and state that: 1. 2. I am a member of (name of CSO), a civil society organization duly organized and existing under Philippine Laws with address at _____________ and duly accredited with the Ombudsman’s Community Coordination Bureau. I have personal knowledge that a. Name and address of respondent; b. Public office or employment he holds and such other public offices or employment which he has previously held (Agency and Position); c. Salary Grade and the total amount of his government salary (PDS, Service Record, SALN) and other proper earnings and incomes from legitimately acquired property (Name of company or business, address, Financial Profile: BIR, SEC, DTI, BPLO) d. The approximate amount of property he has acquired during his incumbency in his past and present offices and employments and a description of said property or such other properties; Declared in latest SALN o Real Properties – Deed of Sale, Year Acquired, Location (TCT/CCT/OCT from RD) o Personal Properties - Value, Deed of Sale of (a) Vehicles, Other Equipment (CR/OR from LTO), (b) Shares of Stocks (SEC Records, Company, PSE), (c) membership in golf/country clubs Undeclared in SALN – in the names of subject and spouse, or in the names of children who have no income capacity or in the names of relatives or friends appearing as dummies of the respondent o Real Properties – Deed of Sale, Year Acquired, Location (TCT/CCT/OCT from RD ) o Personal Properties - Value, Deed of Sale of (a) Vehicles, Other Equipment (CR/OR from LTO), (b) Shares of Stocks (SEC Records, Company, PSE)
Such other information as may enable the court to determine whether or not the respondent has unlawfully acquired property during his incumbency Family Background: Members of the Family/Other Relatives and Friends believed to be used as Dummy, Residence, Address, Ages, Financial Profile: PDS, BIR, SEC, DTI, BPLO SALN b. Respondent’s Liabilities a. Housing Loans from SSS, GSIS, Pag-ibig b. Loans from Financial Institutions c. Personal Loans from banks and other financial institutions, private individuals, SSS, GSIS, Pag-ibig Expenditure Pattern o Travels locally or abroad: frequency, places of travel (BI record of departures/arrivals, leave applications o Schools attended by children (Enrolment, receipts) o Extravagant Parties (Receipts, Billings, Affidavits) o Casinos I am submitting this report to attest to the truth of the foregoing facts and in support to my complaint against respondent _______ for violation of RA 1379 Perjury under Art 183 of RPC Falsification under Art 171 of RPC RA 3019 RA 6713 a.
4. · · · · ·
KNOWN INCOME Table 12. Schedule of Income (As declared in SALN)
YEAR 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 TOTAL KNOWN INCOME 120,000.00 150,000.00 180,000.00 200,000.00 220,000.00 250,000.00 280,000.00 300,000.00 320,000.00 330,000.00 350,000.00
NETWORTH (ASSETS - LIABILITIES) Table 13. Schedule of Net Worth (As declared in SALN) YEAR NET WORTH CHANGE IN NET WORTH 1994 300,000.00 0 1995 400,000.00 100,000.00 1996 500,000.00 400,000.00 1997 900,000.00 100,000.00 1998 1,000,000.00 1999 1,500,000.00 2000 1,200,000.00 2001 2,000,000.00 2002 2,250,000.00 2003 5,000,000.00 2004 5,100,000.00 TOTAL Solve for Change in Networth: Networth in 2004 - Networth in 2003 Networth in 2003 - Networth in 2002 Networth in 2002 - Networth in 2001 ... and so forth. 33
Table 14. FACTORING IN EXPENDITURES AND UNDECLARED ASSETS YEAR 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 TOTAL CHANGE IN NET WORTH 0 100,000.00 400,000.00 100,000.00 500,000.00 600,000.00 600,000.00 100,000.00 200,000.00 EXPENDITURES 500,000 500,000 500,000 800,000 800,000 1,000,000 1,000,000 1,000,000 1,200,000 1,200,000 1,200,500 UNDECLARED ASSETS 4,000,000 2,500,000 650,000 COST OF LIFESTYLE
Solve for Lifestyle Cost = CHANGE IN NET WORTH + EXPENDITURES + UNDECLARED ASSETS Table 15. COMPARING KNOWN INCOME AND COST OF LIFESTYLE YEAR 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 TOTAL COST OF LIFESTYLE P1,000,000 P1,100,000 P1,200,000 P1,200,000 P1,200,000 P1,300,000 KNOWN INCOME P600,000 P700,000 P1,200,000 P1,250,000 P1,000,000 P700,000
If KNOWN INCOME < COST OF LIFESTYLE, then there is a presumption of UNEXPLAINED WEALTH and the subject public official failed the LIFESTYLE CHECK.
ANNEX 1: Salary Grade Table as of 2001
SG 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 Step 1 5,082 5,540 6,039 6,522 7,043 7,606 8,139 8,709 9,318 9,939 10,535 11,167 11,837 12,546 13,300 14,098 14,944 15,841 16,792 17,799 18,510 19,251 20,020 20,823 21,655 22,521 23,422 24,359 25,333 28,875 40,425 46,200 57,750 Step 2 5,209 5,678 6,189 6,684 7,219 7,796 8,341 8,926 9,551 10,188 10,798 11,446 12,134 12,861 13,632 14,450 15,317 16,237 17,211 18,244 18,974 19,732 20,521 21,343 22,197 23,084 24,008 24,968 25,967 29,597 41,436 47,355 Step 3 5,339 5,820 6,343 6,851 7,399 7,992 8,550 9,149 9,790 10,442 11,068 11,733 12,436 13,182 13,973 14,811 15,700 16,643 17,641 18,699 19,448 20,225 21,035 21,877 22,751 23,662 24,609 25,593 26,615 30,388 42,471 48,539 Step 4 5,473 5,966 6,503 7,022 7,584 8,191 8,764 9,378 10,035 10,704 11,344 12,026 12,747 13,512 14,322 15,183 16,092 17,059 18,699 19,446 20,225 21,035 21,877 22,751 23,662 24,609 25,593 26,615 30,338 42,471 48,539 49,753 Step 5 5,610 6,114 6,664 7,196 7,774 8,396 8,984 9,612 10,286 10,971 11,629 12,326 13,065 13,850 14,680 15,561 16,496 17,486 18,535 19,647 20,432 21,250 22,098 22,985 23,903 24,859 25,853 26,887 27,964 31,873 44,621 52,996 Step 6 5,750 6,267 6,832 7,378 7,968 8,606 9,207 9,852 10,542 11,246 11,920 12,635 13,393 14,196 15,048 15,951 16,908 17,922 18,998 20,138 20,942 21,781 22,652 23,559 24,501 25,480 26,500 27,559 28,663 32,670 45,737 52,271 Step 7 5,894 6,424 7,001 7,562 8,167 9,438 10,099 10,807 11,527 12,218 12,950 13,728 14,551 15,423 16,350 17,331 18,371 19,473 20,641 21,467 22,325 23,218 24,148 25,113 26,118 27,162 28,249 29,379 33,486 46,880 53,578 Step 8 8,041 6,585 7,177 7,751 8,372 9,042 9,675 10,351 11,075 11,815 12,522 13,274 14,070 14,914 15,810 16,758 17,764 18,830 19,959 21,158 22,003 22,883 23,799 24,752 25,742 26,771 27,842 28,249 29,379 33,486 46,880 SG 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33
ANNEX 2 SALARY GRADE CHART
BENCHMARK POSITION SCHEDULE POSITION/ TITLE
Laborer I Messenger I Clerk I Driver I Stenegrapher I Mechanic I Carpenter II Electrician II Secretary I Bookkeeper Administrative Assistant Education Research Assistant I Cashier I Nurse I Teacher I Agrarian Reform Program Technologist Budget Officer I Chemist I Agriculturist I Social Welfare Officer I Engineer I Veterinarian I Legal Officer I Administrative Officer II Dentist II Postmaster IV Forester III Associate Professor I Rural Health Physician
1 2 3 3 4 4 5 6 7 8 8 9 10 10 10 10 11 11 11 11 12 13 14 15 16 17 18 19 20
SECTION 8. Salaries of Constitutional Officials and their Equivalent. — Pursuant to Section 17, Article XVIII of the Constitution, the salary of the following officials shall be in accordance with the Salary Grades indicated hereunder: POSITION/ TITLE
President of the Philippines Vice-President of the Philippines President of the Senate Speaker of the House of Representatives Chief Justice of the Supreme Court Senator Member of the House of Representatives Associate Justices of the Supreme Court Chairman of a Constitutional Commission under Article IX, 1987 Constitution Member of a Constitutional Commission under Article IX, 1987 Constitution
SALARY GRADE 33 32 32 32 32 31 31 31 31 30
SECTION 10. Local Government Units (LGUs). — The rates of pay in LGUs shall be determined on the basis of the class and financial capability of each LGU: Provided, that such rates of pay shall not exceed the following percentages of the rates in the salary schedule prescribed under Section 7 hereof:
FOR SPECIAL CITIES
1st Class 2nd Class 3rd Class 4th Class 5th Class 6th Class
FOR PROVINCES/ CITIES
100% 95% 90% 85% 80% 75%
100% 90% 85% 80% 75% 70% 65%
ANNEX 3 WHERE TO GET THE SALNs
FOR PRESIDENT, VICE PRESIDENT, MEMBERS OF THE CABINET, AND OTHER NATIONAL LEVEL EXECUTIVE OFFICIALS, YOU MAY GET THEIR SALNs FROM THE FOLLOWING OFFICES: Office of the President Malacanang Palace Trunk Line: 7356201 Trunk Line: 5641451 Website: www.op.gpv.ph Office of the Vice President Hall 1 PICC Bldg., CCP Complex Roxas Blvd., Pasay City Tel. No. : 831-2616 (chief of staff) Fax No: 831-2618 E-mail: firstname.lastname@example.org Records Office, Malacanang Palace Ground Floor, Mabini Hall, Malacanang, Manila Tel. No: 736-1084
FOR THE PROVINCIAL GOVERNORS, VICE GOVERNORS, MAYORS, VICE MAYORS, OTHER LOCAL OFFICIALS AND EMPLOYEES, MAY GET THEIR SALNs FROM THE FOLLOWING OFFICES:
Office of the Deputy Ombudsman for Luzon Agham Road., Quezon City Tel No: 926-9032 Fax No: 926-8738 Office of the Deputy Ombudsman for Visayas Palace of Justice, Capitol, Cebu City Tel. No: (032) 255-0976 Fax No: (032) 253-0981
Source: Investigating Corruption by Philippine Center for Investigative Journalism (PCIJ)
FOR THE SENATORS, SALNs CAN BE ACCESSED FROM:
Office of the Senate Secretary Senate of the Philippines G/F GSIS Bldg., Roxas Blvd., Pasay City Trunkline: 552-6601 to 90 Direct line: 552-6854 Email: email@example.com,ph Website: www.senate.gov.ph
FOR THE MEMBERS OF THE JUDICIARY For the Justices:
Supreme Court of the Philippines Padre Faura, Manila 1000 Tel. No: 523-0679; 521-7239 Fax No: 522-3211 Website: www.supremecourt.gov.ph
ALL OTHER PUBLIC OFFICIALS AND EMPLOYEES
Civil Service Commission Constitution Hills, Diliman, Quezon City Trunkline: 931-6850 E-mail: firstname.lastname@example.org Website: www.csc.gov.ph
Annex 4: SECURITIES AND EXCHANGE COMMISSION
Extension Offices (Source: www.sec.gov.ph)
Tel No. (074) 442-2507/ (074) 442-8171 (052) 245-5627 (052) 820-3095
Baguio City SEC Bldg., 76 Gen Luna Rd., Baguio City Legaspi City SEC Bldg. 2/F Chiniel Bldg. Rizal Ave., Albay Dist. Legaspi City Iloilo City SEC Bldg., Gen. Hughes St., Iloilo City Cebu City SEC Bldg., V. Rama Ave., Guadalupe, Cebu City Davao City SEC Bldg., cor Luisa Drive Univ. Ave., Juna Subd., Matina, Davao City Cagayan De Oro SEC Bldg., cor. 14th and Romero Del Lara Sts., Davao City
Fax No. (074) 442-8756
(033) 337-9984 (033) 335-0025
(032) 253-5337 (032) 253-6987
Annex 5: LTO Regional Offices
CODE/NAME OF AGENCY Registration Section Regional Office No. I Asst. Regional Director Agoo Extension Office Alaminos City District Office Burgos Ext. Off (Bangui Ext.) Batac District Office Candon City District Office Candon Licensing Center Dagupan City District Office Laoag City District Office Lingayen District Office Naguilian Extension Office HEAD OF OFFICE Merceditas E. Gutierrez Graciano J. Tobias Juan Victor A. Duyan, Jr Merlene C. Dumo Victoria O. Cuya Felipe E. Andres Arnulfo M. Maranan Sofronio D. Nisperos, Jr. Bramante A. Carino Patricio P. Urmaza Hipolito A. Arde Jovita F. Dion Marilou C. Gapuz ADDRESS OF AGENCY East Avenue, Q.C. Aguilar Rd., San Fernando, La Union Aguilar Rd., San Fernando, La Union San Pedro, Agoo, La Union Tanaytay, Alaminos City, Pangasinan Poblacion, Burgos, Ilocos Norte 1 S. Ricarte, Batac, Ilocos Norte Barangay Paras, Candon, Ilocos Sur Candon, Ilocos Sur AB Fernandez West, Dagupan City P. Gomez St., Laoag City Capitol Compound, Lingayen, Pangasinan Municipal Compund, Naguilan, La Union Roxas Boulevard, New Public Market Phase 2, San Carlos City, Pangasinan Aguilar Rd., San Fernando, La Union San Fernando, La Union Pine St., Zone 5, Poblacion, Rosales, Pangasinan CONTACT NUMBERS 927-1420 / 922-0149 (072) 242-1036 / 888-4962 (072) 242-1036 / 888-4962 (072) 710-1364 (075) 552-7068 Not Indicated (077) 792-4719 (077) 742-6167 (077) 742-6167 (075) 515-5428 / 522-0829 (077) 770-3823 (075) 542-6188 (072) 609-1340 (075) 532-3173
San Carlos City District Office Joel C. Mabutas
San Fernando City District Office San Fernando Licensing Center Tayug Extension Office
Ernesto Jesus L. Samonte Johnny O. Pacis Kathleen Deanna G. Salayog
(072) 242-1036 / 700-5267 Not Indicated (075) 582-3561
Annex 6: WHERE TO SEND REPORT Office of the Ombudsman
www.ombudsman.gov.ph MERCEDITAS GUTIERREZ Tanodbayan Office of the Ombudsman Agham Road, Quezon City Tel: (02) 926-8710; 926-9032 Fax: (02) 926-8709; 926-8776 VICTOR FERNANDEZ Deputy Ombudsman for Luzon Office of the Ombudsman Agham Road, Quezon City Tel: (02) 926-8734 Fax: (02) 926-8738 VIRGINIA SANTIAGO Deputy Ombudsman for Visayas Palace of Justice, Capitol, Cebu City Tel: (032) 255-0976 Fax: (032) 253-0981 HUMPHREY MONTEROSO Deputy Ombudsman for Mindanao 4/F Herrera Building, Alvarez St. Davao City Tel: (082) 221-3431 ORLANDO CASIMIRO Deputy Ombudsman for the Military Office of the Ombudsman Agham Road, Quezon City Tel: (02) 926-8747 Fax: (02) 926-8776
Presidential Anti-Graft Commission
www.pagc.gov.ph Constancia De Guzman Chairperson Presidential Anti-Graft Commission State Accounting and Auditing Center (SAAC) Building, Commonweatlh Avenue, University of the Philippines, Diliman, Quezon City Tel: (02) 924-1311 Fax: (02) 925-8928
Revenue Integrity Protection Service
www.rips.gov.ph Gaudencio Mendoza Undersecretary, Department of Finance DOF Bldg., BSP Complex Roxas Blvd., Metro Manila Tel: (02) 523-3465 Fax: (02) - 521-9495
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