Republic of the Philippines DEPARTMENT OF TRANSPORTATION 3 July 2018 Department Order No. 201%- 1s To es ALL CONCERNED This Department Subject : GUIDELINES AND PROCEDURES FOR THE RELEASE AND UTILIZATION OF LEGAL DEFENSE FUND The Department of Budget and Management (DBM) issued National Budget Circular No. No.566 dated December 15, 2016 re: “Guidelines in the Utilization of Legal Defense Fund (LDF) for FY 2016 and Succeeding Years” to promote the welfare and extend assistance to government personnel who may face administrative, civil or criminal charges before courts, for which they incur actual expenses in the defense of their cases. Starting with Republic Act No. 10717 or the FY 2016 General Appropriations ‘Act (GAA) and succeeding years, the amount of Two Hundred Million Pesos (P200,000,000.00) for the Legal Defense Fund is appropriated under the Miscellaneous Personnel Benefits Fund (MPBF). This fund shall be used for actual expenses, including payment of premiums for posting of bail bonds and cash advance for expenses incurred by government personnel, in relation to the defense of administrative, civil or criminal cases filed against them in courts for acts committed in the performance of their actual functions. To provide/extend assistance to the personnel at this Department, the following guidelines are hereby prescribed /adopted: I. GUIDELINES 1, ESTABLISHMENT AND COMPOSITION OF THE LEGAL DEFENSE FUND CLAIMS BOARD (“CLAIMS BOARD”) To carry out the purpose, there is hereby created the Legal Defense Fund Claims Board, hereinafter referred to as the “Claims Board”, to cover claims for legal expenses of its incumbent, separated or retired 1jPage 18 cers: soaos-ong pho Palled 08employees. The Claims Board shall determine the eligibility of the claimants and expenses, and the amounts to be charged against the Legal Defense Fund. The Claims Board shall be composed of the following: Chairperson: Undersecretary for Legal Affairs and Procurement, or Assistant Secretary for Legal Affairs (as alternate) Vice Chairperson: Director of Legal Service Members: Director for Administrative Service Director for Comptrollership Service Director for Finance and Management Service Director for Project Management Service President of the DOTCEA A Secretariat shall be created to assist the Claims Board in the performance of its functions. a. Composition a.1. There shall be seven (7) members of the Secretariat. Each member shall be nominated and shall come from the respective offices of the members of the Claims Board; a.2. A Secretariat member must be a personnel occupying a plantilla position. b. Functions b.1. For purposes of identifying claimants who may avail of the Legal Defense Fund, the Secretariat shall assess the qualifications of the claimant based on his present salary grade and position, or the last salary grade and position held, in cases of separated or retired government personnel; b.2. To evaluate if the case filed against the claimant falls under those covered by the Legal Defense Fund; b3. Examine and evaluate the supporting documentary requirements and substantiations submitted by the 21 P2geclaimant and to direct the claimant to submit other relevant documents when necessary; b.3. Recommend the approval or denial of the claim against the Legal Defense Fund to the Claims Board based soiely on the information and documents submitted and available to him. It is ministerial upon the Secretariat to recommend approval when it appears that: (1) The claimant is qualified; (2) The case falls under cases covered by the Legal Defense Fund; (3) The actual amounts incurred are substantiated by receipts; and (4) The documentary requirements are genuine and complete, and to recommend denial when otherwise. The Secretariat shall convene at least twice a month and as often as necessary, to evaluate the claims and submit their recommendation to the Claims Board within sixty (60) calendar days from the receipt of the claims filed. The establishment of the Claims Board shall not entail the creation of a separate or independent office but instead, shall be an additional function to those designated as members and support staff of the Board. All attached and sectoral agencies of this Department are hereby directed to establish their own Legal Defense Fund Claims Board and their respective internal rules and guidelines therefor. The Claims Board shall have the following powers and functions: a. Create a Secretariat from personnel nominated by the members of the Claims Board; b. Issue internal guidelines consistent with this Order and the National Budget Circular stated above; c. The Claims Board shall convene once a month or as often as necessary, to evaluate/decide/determine all claims against the Legal Defense Fund, which include among others the eligibility of 3|Page 18 eCcreo3the claimants, the legal expenses, and the amounts to be charged against the Legal Defense Fund; d, The Claims Board shall be given thirty (80) calendar days to examine, review, verify and validate the authenticity of the documents presented by the claimant /(s) from the receipt of the recommendation of the Secretariat; and e. Perform such other functions which may be necessary to fully carry out the provisions of the National Budget Circular and this Order. The Claims Board shall carry out its business by a majority vote of the members present. However, all decisions shall be arrived at by a majority decision of all the members. Any favorable decision by the Claims Board shalll be final and executory. In case of denial of claim, the same shall be appealable to the Office of the President. In the event the claimant is later on found guilty of the offense charged by final judgment of the court, the amount of legal expenses charged against the Legal Defense Fund shall be refunded to the government to be deposited with the Bureau of Treasury. REQUIREMENTS IN THE PROCESSING OF CLAIMS The following are the requirements for claims against the Legal Defense Fund are: a. The claimant is an incumbent, separated, or retired employee of the Department with plantilla position; b. The administrative, civil or criminal case arose from the performance of the claimant's responsibilities and functions; c. The case is filed before any court or those under the supervision of the Supreme Court; and d.The claim is filed before the agency where the claimant performed responsibilities and functions subject to the case. 4|Page ig ¢ccTe03Q oO ‘The Legal Defense Fund provided in the annual GAA may only be used for the payment of actual legal expense incurred by claimants during the same year. The claim shall be in a form of cash advance or reimbursement for legal expenses incurred by qualified claimants in relation to their court defense. The claimant may engage a private or government legal counsel, subject to pertinent laws, rules and regulations. Eligible legal expenses shall be limited to the following types and amounts of expenses: Payee Type of Expense Maximum Amount Inclusive of Taxes Claimant —_| Bail Bond Payment of bond premiums. No reimbursement of cash bond shalll be allowed. Claimant | Transportation expenses[ Amount, supported by for every _hearing,| receipts and subject to the appearance, meeting or | following: (i) travel authority conference with __ the | by the head of the agency or claimant's lawyer. his duly —_authorized representative; (ii) for meetings and conferences, limited to four (4) in a month; and (iii) compliance with accounting and auditing rules and regulations. Claimant | Expenses for | Photocopying expenses shall photocopying of | be based on the actual amount documenis, required | incurred while the other certifications, and | expenses shall be based cn the transcript of stenographic j prescribed legal fees under notes. Rule 141 of the Rules of Court, as amended, but not to exceed a total amount of Ten Thousand Pesos (P10,000) for every case. 5[Page 18 oC5908QO Claimant Fees to be paid to private counsel for the preparation or filing of pleadings and/or motions, excluding Motions to Reset Hearing and for Extension of Time. Total amount not to exceed Twenty Thousand Pesos (P20,000) per case Claimant Acceptance and/or attorney's fee to be paid to private counsel. Total amount not to exceed Fifty Thousand Pesos (P50,000) per case. Claimant ‘Appearance fee to be paid to private counsel for every hearing or appearance before a court. Amount based on _ the prescribed minimum rates of the local Integrated Bar of the Philippines (IBP) chapter, or if not available, the rates of the nearest IBP chapter where the case is being heard or tried. If the IBP rates are not available, the appearance fee shall not be more than Five Thousand Pesos (P5,000) per hearing. Government Legal Counsel Transportation and other travel expenses for every hearing or appearance before any court and for interviews with client or preparation of documents. For transportation expenses, the amount supported by receipts and subject to the following: (i) travel authority by the head of agency or his duly authorized representative; (ii) for meetings and conferences, limited to four (4) in a month; and (iii) compliance with accounting and auditing rules and regulations. For Other Travel Expenses, those provided under EO No. 248, s. 1995 (Prescribing Rules and Regulations and New Rates of Allowances _for 6|Page i8 ecrgosIl. Official Local and Foreign Travels of Government Personnel), and any amendments and_ guidelines thereto, Government | Appearance Fee Amount authorized —_for Legal Special Counsel Allowance Counsel under the General Provisions of the annual GAA. . All legal expenses in excess of those, and not included above, shall not be allowed. . The maximum allowable amounts abovementioned shall be applied per case, and consolidated cases shall be considered as one case. . The Legal Defense Fund may likewise be used in the case of legal assistance of the Bids and Awards Committee (BAC) members and their support staff authorized under RA No. 9184 and its Implementing Rules and Regulations and subject to the pertinent guidelines issued by the Government Procurement Policy Board. Provided, such claimant exhausted first the limit available to him under the Revised Implementing Rules and Regulations (IRR) of RA 9184!, any deficiencies may be claimed against the Legal Defense Fund . In the event of competing claims among employees of specific agency, priority shall be given to rank and file employees over the agency’s senior officials. PROCEDURE Procedure Before the Secretariat 1. The claimant(s) shall file his/their respective claim(s), with supporting documents, for actual legal expenses with the Claims Board through the Secretariat. ' Appandix 18, Guidelines for Legal Assistance and Indemnification of Bids and Awards Committee (BAC) Members and its Support Staff 7|Page ig ‘ccrTgosThe Secretariat shall assess the qualification of the claimant(s), evaluate if the case filed is covered by the Legal Defense Fund, examine and review the completeness and authenticity of the supporting documentary requirements and substantiations of legal expenses claimed to have been incurred The Secretariat shall require the claimant/s to submit other pertinent documents when necessary in arriving at its recommendation to the Claims Board. The Secretariat shall prepare its recommendation of approval or denial of the claims and forward it to the Claims Board along with all the supporting documents submitted. Procedure Before the Claims Board 5. Verify / validate the authenticity and completeness of the submitted documents. The Claims Board is not bound by the recommendation of the Secretariat but ascribe to it great weight in arriving at its own decision. Determine the order of priorities of claimants, his/their eligibility, expenses and the amount to be charged against the Legal Defense Fund. ‘The Claims Board shall decide to approve or deny the claims by a majority vote of its members. In the event the claim is denied, the claimant may appeal to the Office of the President. If the claim is approved, the Claims Board shall prepare a recommendation and a letter request, with its favorable decision for signature of the Secretary or his authorized representative. In case of claims for BAC Legal Assistance under RA 9184 and GPPB guidelines, the request shall be supported by approval from the head of the procuring entity or his authorized representative. Procedure after Approval by the Claims Board 9. The Secretary or his authorized representative shall sign the letter- request and then forward the same to the DBM. Preparation of B[ Page ig ocrg08request for Special Allotment Release Order (GARO) should be in coordination with the Finance and Management Service (FMS) and the Budget Division. 10. Upon receipt of the request with complete supporting documeits, the DBM shall release the SARO and Advice of Notice of Cash Allocation issued (ANCAI) to the Department, and the Notice of Cash Allocation to the authorized government depository bank concerned. 11. Upon receipt of the SARO and ANCAL: ILa. The Department shall issue Advice to Debit Account for crediting to the account of the claimant or the government legal counsel, depending on the type of claim granted. ILb. Observe the pertinent budgeting, accounting or auditing rules and regulations in the release of funds to the claimants. IV. ISSUES FOR RESOLUTION, Interpretation of the provisions in this Order, including cases not covered therein shalll be referred to the DBM for final resolution. V. REPEALING CLAUSE AND EFFECTIVITY This Order shall take effect immediately. All other issuances found to be inconsistent herewith are deemed revoked and/or superseded accordingly. For strict compliance. P. [UGADE pac KROg 9|Page