Laws, Rules and Regulations,

Administrative, Civil and

Criminal Liabilities and
Sanctions Relative to
Appraisal and Disposal of
Government Property

Presented by: Atty. Billy Joe Ivan D. Darbin, CPA

Government Financial Management Innovators Circle (GFMIC), Inc.
27 October 2023
The Agricultural Training Institute, Elliptical Circle, Quezon City
LEARNING OBJECTIVES
At the end of the session, the participants are
expected to:

❑Know the basic concepts on the disposal of

unserviceable property (except Real Estate,
Antiques and Works of Art)
❑Identify the assets that may be disposed of
❑Acquire sufficient knowledge on the different
modes of disposal and the roles of
accountable officials in the process
LEARNING OBJECTIVES
At the end of the session, the participants are
expected to:

❑Understand the procedures on disposal

❑Identify the documents to support disposal
activities
❑Explain the possible administrative, civil and
criminal liabilities of the responsible persons
involved in the disposal of government
property
LEGAL BASES
• Section 79 of P.D. 1445: Audit Code of the Philippines
Destruction of Unserviceable Property

• National Budget Circular No. 425 dated Jan. 20, 1992

Manual on the Disposal of Government Property

• COA Circular No. 89-296 dated January 27, 1989

Divestment or Disposal of Unserviceable Property and
Other Assets of NGAs LGUs and GOCCs

• Executive Order (EO) No. 888, series of 1983

Authorizing Heads of Ministries/Agencies to Dispose of
Their Respective Unserviceable Equipment and Disposable
Property
LEGAL BASES
• COA Circular 92-386 dated Oct. 20, 1992
Prescribing the Rules and Regulations on Supply and
Property Management in the Local Government

• COA Memorandum Circular No. 2015-007 dated Oct. 22,

2015
Prescribing the Government Accounting Manual for Use of
All National Government Agencies

• COA Manual on Appraisal of Government Properties

Except Real Estate, Antique Property and Works of Art

• EO No. 309 dated March 8, 1996

Reconstituted the membership of the committee on
disposal (w/o COA) as provided for under EO No. 888
Property

denotes everything which is the subject of

ownership, corporeal or incorporeal, tangible or
intangible, visible or invisible, real or personal;
everything that has exchangable values or which
goes to make up wealth or estate (Glossary of
Terms for State Auditors)
 Categories of Property
and Supplies
⚫ Supplies and
Materials
(Inventories)

⚫ Property, Plant and

Equipment (PPE)
Inventories are assets:
1. In the form of materials or supplies to be consumed in
the production process (examples: materials and
supplies awaiting use in the production process);

2. In the form of materials or supplies to be consumed or

distributed in the rendering of services (examples: office
supplies, ammunitions, maintenance materials);

3. Held for sale or distribution in the ordinary course of

operations (examples: merchandise purchased by an
entity and held for resale, or land and other property
held for sale, agricultural produce); or

4. Semi-expendable Property - Tangible items below the

capitalization threshold of P50,000. (COA Circular No
2022-004 dated May 31, 2022)
Property, Plant and Equipment (PPE) –
tangible assets that are:
• Purchased, constructed, developed or otherwise
acquired;
• Held for use in the production or supply of goods
or services or to produce program outputs;
• For rental to others;
• For administrative purposes;
• Expected to be used during more than one
reporting period;
• Not intended for resale in the ordinary course of
operations
• Meets the capitalization threshold of P50,000.00
and above
COA Style Guide 9
 PPE Accounts
• Land
• Land Improvements
• Infrastructure Assets (Road Networks; Flood Control Systems)
• Buildings and Other Structures (School Buildings; Hospitals;
Markets)
• Machinery and Equipment (Office Equipment; ICT Equipment)
• Transportation Equipment (Motor Vehicles; Watercrafts; Trains)
• Furniture, Fixtures and Books
• Leased Assets (Land; Building, Machinery and Equipment;
Transportation Equipment)
• Leased Assets Improvements (Land; Building)
• Heritage Assets (Historical Buildings; Works of Arts and
Archeological Specimens)
• Service Concession Tangible Assets
• Other Property, Plant and Equipment (Work/Zoo Animals)
• Construction in Progress
DEFINITION OF TERMS
Acquisition Cost (AC)
• the price at which the property was acquired which
also includes related expenses incurred during the
acquisition/construction of the property such as
taxes, license fees, permit fees, clearance fees, etc.

Appraisal
• is the art of estimating the fair exchange worth or
value of a property as of a specified date, supported
by relevant or factual data.
• Appraisal is NOT an exact science but it is an opinion
of value.
DEFINITION OF TERMS
Appraised Value
• an opinion of value of an appraiser which is based
upon an interpretation of facts and beliefs into an
estimate of value, as of a stated date

• The objective of computing the appraised value of the

property is to set the government’s minimum selling
price so that the government shall receive fair
compensation for the items sold
DEFINITION OF TERMS
Depreciation
• is the systematic allocation of the depreciable
amount of an asset over its useful life

Depreciable Amount
• is the cost of an asset, or other amount
substituted for cost less residual value
DEFINITION OF TERMS
Fair Value
• is the amount for which an asset could be exchanged
or a liability settled, between knowledgeable, willing
parties in an arm’s length transaction

Current Market Value

• is the price estimated which a property will bring if
exposed for sale in the open market, allowing a
reasonable time to find a buyer who buys with
knowledge of the actual condition and utility of the
property
DEFINITION OF TERMS
Carrying Amount
• is the amount at which an asset is recognized after
deducting any accumulated depreciation and
accumulated impairment losses

Salvage Value
• the amount that could be realized from the sale of a
component/part of an asset to be removed for use,
wholly, or in part, elsewhere
DEFINITION OF TERMS
Residual Value (Salvage Value)
• is equivalent to at least five percent (5%) of the cost of
an asset that the entity would currently obtain from
disposal of the asset, after deducting the estimated
costs of disposal

Useful Life (Estimated Useful Life)

• is the period over which the asset is expected to be
available for use by an entity; or the number of
production or similar units expected to be attained
from the assets by an entity
Sourced from Chapter 10, Section 27.f, GAM for NGAs
17
DEFINITION OF TERMS
Deterioration
• reflecting the loss in value brought about by wear
and tear, disintegration, use in service and the
action of elements.

Economic Obsolescence
• reflecting the loss in value brought about by external
economic forces, such as legislative enactments
restricting or impairing the use of subject equipment
DEFINITION OF TERMS
Functional Obsolescence
• reflecting loss in value due to functional inadequacy due
to size, style, or age brought about by changes in art or
poor planning

Junk/Scrap Value
• the price of scrap/junk metal or lumber prevailing in the
local market

Obsolete Property
• that which has lost its efficacy either due to technological
advancement, change of procedures,
recognition/completion of project
DEFINITION OF TERMS
Unserviceable Property
• that which is beyond repair and has no more
utilization potential

Disposal/Disposition/Divestment
• the end of the life cycle of a government property

Destruction or Sale of Unserviceable Property

• Has become unserviceable for any cause
• Is no longer needed
DEFINITION OF TERMS
Impairment Loss
• Is the amount by which the carrying cost amount of an
asset exceeds its recoverable value

Derecognition
• Removal from the Accounts, the cost of the PPE
together with the Accumulated Depreciation and
Accumulated Impairment
DEFINITION OF TERMS
Effective Remaining Useful Life (ERUL)
• refers to the number of years from the date of
appraisal to the anticipated date that a property may
be utilized profitably

Effective Useful Life (EUL)

• refers to the estimated period of time (years) for
which a property is anticipated to be useful assuming
normal utilization
DEFINITION OF TERMS
Locally Manufactured Properties
• refers to the properties which are one hundred
percent (100%) sourced locally and no part of which is
imported from other countries

Sound Value
• a measure of value widely used by valuers and
appraisers, is derived from replacement cost new
(RCN), adjusted to the observed condition of the
property for appraisal
PHASES OF PROPERTY AND SUPPLY
MANAGEMENT

Utilization
Acquisition
(Custodianship)

Disposition/
Disposal

PSMS: Session 7 24
PHASES OF PROPERTY AND SUPPLY
MANAGEMENT
ACQUISITION DISPOSAL

the START of the END of

the life cycle the life cycle
of a of a
government government
property property
 Similarities/Differences
ACQUISITION DISPOSAL
➢ Modes ➢ Modes
❖ Procurement ❖ Sale
❖ Transfer ❖ Transfer
❖ Donation ❖ Donation
❖ Confiscation, ❖ Barter
Attachment/
Seizure /Foreclosure
❖ Production/ ❖ Condemnation
Manufacture
❖ Construction
 Similarities/Differences
ACQUISITION DISPOSAL
❖ Procurement ❖ Sale
▪ Public Bidding ▪ Public Bidding
▪ Negotiated ▪ Negotiated/ Private
Procurement Sale
▪ Limited Source
Bidding
▪ Direct Contracting
▪ Repeat Order
▪ Shopping
DISPOSAL OBJECTIVES
• To avoid continuing carrying/inventory costs
• To prevent further deterioration thereby obtaining a fair return
in case of sale
• To relieve accountable officers of unnecessary accountability
• To make available space for the agency to use (Manual on
Disposal of Government Property, DBM)

28
DETERMINATION OF DISPOSABLE
PROPERTY
• Property that can no longer be repaired or reconditioned

• Property whose maintenance costs/costs of repair more than

outweigh the benefits and services that will be derived from
its continued use

• Property that has become obsolete or out of model because

of changes in technology

29
DETERMINATION OF DISPOSABLE
PROPERTY
• Serviceable property that has been rendered unnecessary due
to the change in the agency’s function or mandate

• Unused supplies, materials, and spare parts that were procured

in excess of requirement

• Unused supplies and materials that have become dangerous to

use because of long storage or use of which is determined to be
hazardous

30
PROPERTY/ASSETS SUBJECT TO DISPOSAL

• Unserviceable Property
• Confiscated/ Seized Property
• Property under Distraint/Levy/ Garnishment
• Unclaimed Motor Vehicles
• Real Property
• Valueless Records/Documents

31
Unserviceable property

• Property, which can no longer be repaired or

reconditioned

• Property whose maintenance costs of repair more

than outweighs the benefits and services that will
be derived from its continued use

• Property that has become obsolete or outmoded

because of changes in technology

32
Confiscated/Seized Property

• Property which came into the ownership and possession of

the government as a result of its implementation,
enforcement of laws and regulations

• To avoid accumulation and loss of their economic value as

well as to generate revenue for the government the
following confiscated/seized property are authorized to be
disposed of in accordance with existing laws, rules and
regulations:
➢ Timber and other Forest Products
➢ Property in Customs Custody
➢ Narcotics and Dangerous Drugs

33
Property under
Distraint/Levy/Garnishment
• Refers to the personal and/or real property of a
taxpayer forfeited by the government for failure to
pay taxes.

• The government is likewise authorized to

administer, control and dispose of such property.

34
Unclaimed Motor Vehicles

• These are recovered stolen motor vehicles by the different

law enforcement agencies of the government as a result of
its campaign against carnapping which remained
unclaimed.

• The disposal of said vehicles has been authorized to avoid

accumulation and further deterioration as well as incidence
of unnecessary maintenance expenses.

35
Real Property
• These are lands and buildings owned by the government whose disposal are
authorized by various laws, rules and regulations.

• Pursuant to COA Circular NO. 2017-003, real estate and their improvements owned
by the LGUs may be sold to other government or private entities under sealed bids,
or by negotiation, if sealed bid has failed at a price to be determined by the
Committee on Awards.

• The contract of conveyance shall be executed by the local chief executive on behalf
of the local government unit concerned in accordance with the formalities required
by law on the matter and shall be approved by the local sanggunian.

• The disposal shall also be subject to the approval of the COA in case the disposal is
through negotiation regardless of the value of the property to be disposed of. The
request for approval shall be made before the perfection of the contract of sale
through negotiation.

• Expenses relative to the registration and transfer of ownership from the local
government unit to the vendee shall be borne by the vendee.

36
Valueless Records/Documents
• These include all record materials that have reached their
prescribed retention periods and usefulness to the agency
or the government as a whole.

• “Records” mean any paper, book, photograph, motion

picture, film, microfilm, sound recording, drawing, map, or
other document of any physical form or character that has
been made by any entity or received by it in connection with
its business.

• It excludes library and museum materials, documents

submitted for copyright, models, copies of documents
preserved for reference, and stocks of publications and
processed documents.
37
Valueless Records/Documents
 Disposal is guided by EO No. 301 dated 07/26/1987.

 No agency shall destroy or sell any record without having

first secured authority from the Director, RMAO (Records
Management & Archives Office)

 Records are disposed of periodically, usually once a year,

soon after a file break. (usually at the end of the fiscal or
calendar year)

38
DOCUMENTS/REPORTS PERTINENT TO THE
DISPOSAL OF PROPERTY AND SUPPLIES

Inventory and For semi-expendable materials and equipment and non-

Inspection Report of expendable supplies, accompanied by any of the
Unserviceable Property following, whichever is appropriate:
(IIRUP) – Individual Survey Report, duly certified by the
Supply Officer and Head of Agency
– List of missing spare parts, duly certified by the
Supply Officer and Head of Agency
– Stencils of chassis and engine numbers of motor
vehicles
– Current photographs in two positions

For expendable materials, supplies and

Waste Materials Report consumables including spare parts, empty
(WMR) containers, and remnants from destroyed or
damaged fixed assets
39
40
 WASTE MATERIALS REPORT

Agency

Place of Storage Date

ITEMS FOR DISPOSAL

ITEM QTY. UNIT DESCRIPTION RECORD OF SALES
O.R. No. Amount
1

TOTAL
Certified Correct: Disposal Approved:

Property Officer
CERTIFICATE OF INSPECTION

I hereby certify that the property enumerated above was disposed of as follows:

Item ________ Destroyed

Item ________ Sold at private sale
Item ________ Sold at public auction
Item ________ Transferred without cost to _______

Property Inspector: (Name & Signature) Witness to disposition:

AO 6/15/02

41
 Modes of Disposal
◼ Destruction or Condemnation of Property
◼ Transfer to Other Government Agencies
◼ Barter
◼ Donation
◼ Sale of Unserviceable Property
➢ Sale thru Public Bidding
➢ Sale thru Negotiated Sale
 Condemnation/Destruction
• Has no commercial value
• No willing receiver
• Hazardous property
• Appraised value is less than the administrative cost of
sale
• Subject to prior inspection by the Auditor concerned
*Valueless property shall be condemned either by burning,
pounding, throwing beyond recovery, and the like.
*The head of the department, agency and corporation and
the local chief executive shall approve the disposition.
COA Circular 89-296 dated January 27, 1989
 Transfer to Other Government Agencies

• Transfer may be done either with or without

cost.

• Cost herein refers to payment based on the

appraised value of the property.

• Accomplishment of an Invoice and Receipt of

Property / Property Transfer Report (PTR) (Sec.
76, PD No. 1445)

COA Circular 89-296 dated January 27, 1989

 Barter

• Transfer of property to another agency in exchange for

another piece of property without the use of money
• The value of the property transferred may or may not
be equivalent to that being received.

• Offer that would redound to the interest of and is

advantageous to the government

• Use of Invoice and Receipt of Property / Property

Transfer Report (PTR) [COA Circular 89-296 dated
January 27, 1989]
 Donation of Property

• May be donated to charitable, scientific,

educational or cultural associations on
exceptional cases with the approval of the
COA and DBM
 Public Auction
• Adequate publicity and notification
• Sufficient time frame between publication
and date of auction
• Opportunity to inspect the property
• Confidentiality of sealed proposals
• Bond and other pre-qualification
requirements

• Fair evaluation of tenders and proper notification of

award (COA Circular 89-296 dated January 27, 1989)
 Sale thru Negotiation

• There was failure of two (2) public auction.

• The negotiation may be conducted singly provided

that government gets the best price.

• A record of proceedings must be maintained.

• The negotiated price shall not be lower than the

highest offer submitted at the failed public auction.
(COA Circular 89-296 dated January 27, 1989 and DBM
Manual on Disposal)
 Sale thru Negotiation

If the sale through public bidding is unsuccessful, a rebidding

shall be scheduled. Bidding may be declared unsuccessful in
any of the following cases:
• There is no bidding participant;
• Only one (1) bidder submitted a bid tender for each lot;
• All bidders failed to comply with the terms and conditions
prescribed in the Invitation to Bid; and
• Complying bidders failed to meet the minimum bid price.
• In case of failure of the second bidding, the Disposal
Committee may dispose of the property through negotiation.
(DBM Manual on Disposal)
Guidelines in Disposal
Authority and Responsibility for
Divestment or Disposal
is lodged in the agency
head or governing bodies.

COA Cir. 89-296

EO No. 888
GAAM 501
CREATION OF DISPOSAL COMMITTEE AND
SECRETARIAT

EO No. 309, reconstituted the membership of the Committee on Disposal as provided under EO
No. 888

For National Government Agencies and GOCCs

Chairman: A senior official with a rank not lower

than the level of an Assistant Secretary for a
department and Assistant Director for a
bureau/agency or department head for a GOCC
Member: Head of the Administrative Unit
Member: Head of the Property Unit

52
CREATION OF DISPOSAL COMMITTEE AND
SECRETARIAT
A Secretariat and Technical Staff to be manned by
existing personnel of the Agency concerned shall be
formed to handle all the Committee’s technical and
administrative matters as well as the safekeeping and
systematic filing of Committee documents and
records

53
CREATION OF DISPOSAL COMMITTEE AND
SECRETARIAT

For Local Government Units

Chairman: Local Chief Executive

Member: Treasurer
Member: Accountant
Member: Budget Officer
Member: General Services Officer
Member: Head of Requisitioning Office

(Sec. 364, RA No. 7160 or the “Local Government

Code of 1991”

54
 Functions of Disposal Committee

◼ Inspect or authorize the department’s/

agency’s field offices to inspect the
unserviceable equipment and property
to verify justification for disposal.

COA Circular No. 83-206 dated May 23, 1983, re: EO

888 dated March 18, 1983
 Functions of Disposal Committee

◼ Set the final appraised value of all

disposable property considering:
- Obsolescence
- Market demand
- Physical condition, and
- Result of previous biddings for similar
property
(COA Circular No. 83-206 dated May 23, 1983, re: EO
888 dated March 18, 1983)
 Functions of Disposal Committee
◼ Recommend to the Minister (now Secretary) or
Head of Agency for approval, the manner of
disposal taking into consideration the pertinent
provisions of the Revised Administrative Code
and the National Auditing Code (now
Government Auditing Code of the
Philippines)

(COA Circular No. 83-206 dated May 23, 1983, re: EO

888 dated March 18, 1983)
 Functions Disposal Committee

◼ Conduct public biddings for the sale of

disposable property on an “AS IS” ‘WHERE
IS” basis and to recommend corresponding
award;

COA Circular No. 83-206 dated May 23, 1983, re: EO 888
dated March 18, 1983
Functions of Secretariat and Technical
Staff
◼ Manned from existing personnel of the
Agency
◼ To handle the Committee’s technical and
administrative matters
◼ Safekeeping and systematic filing of
Committee documents and records

COA Circular No. 83-206 dated May 23, 1983, re: EO 888
dated March 18, 1983
GUIDELINES IN DISPOSAL

General Procedures

Once supplies/property
becomes unserviceable The COA Auditor shall
The Property
from any cause or are no inspect the items and
Officer/equivalent
longer needed, the determine whether the
position shall file an
officer immediately items are with or without
application for disposal
accountable therefore value and forwards
with appropriate
shall return the same to his/her recommendation
documents to COA
the Property to the Head of the
Auditor
Officer/equivalent Agency
position concerned

60
GUIDELINES IN DISPOSAL

General Procedures

The Disposal Committee If found to be valuable

shall recommend to the the unserviceable
The Head of the Agency Head of the Agency the property may be sold at
shall forward the mode of disposal as public auction to the
documents to the appropriate and highest bidder under
Disposal Committee deemed most the supervision of the
advantageous to the proper Committee on
government Awards or similar body

61
GUIDELINES IN DISPOSAL
General Procedures
The awardee shall pay, claim and withdraw
the property upon the determination of
the awardee, the bid bond shall be
considered as partial payment, and the
difference between such payment and the
offered bid price shall be paid in the form
of cash, cashier’s/manager’s check of a
reputable bank within the area where the
bidding was held
Upon disposal of property, the pertinent
portions of the Inventory and Inspection
Report, Report of Waste Materials, or
Invoice-Receipt for Property, whichever is
applicable, shall be accomplished. These
reports shall be the basis for dropping the
property from the books of accounts and
for taking up the proceeds from the sale of
the property
62
INSPECTION AND APPRAISAL OF PROPERTY FOR
DISPOSAL

• Inspection is conducted to observe the physical

condition of the property to be disposed

• An ocular inspection is usually done to have a first-

hand observation of the condition of the property

63
INSPECTION PROCESS

In the conduct of the inspection of the property to be appraised, the appraiser shall perform
the following, where applicable:

1. Identify the property in accordance with its descriptions in the inventory list or directive

2. Check the condition of the property; determine whether operational, under repair,
irreparable

3. Determine if the property is economically repairable and the most probable cost of its
repairs, and current costs or spare parts

64
INSPECTION PROCESS

In the conduct of the inspection of the property to be appraised, the appraiser shall perform
the following, where applicable:

4. Check for the damaged/worn-out or missing parts. Careful determination of its present
physical condition shall serve as basis for its depreciation and correct evaluation/valuation

5. Verify stated ratings, capacity, model, year of manufacture, serial number, chassis
number, motor number, and other technical specifications, and accessories, if any

6. Determine the correct date when the property has been acquired or its preset
age/number of years property has been actually used or operated

65
INSPECTION PROCESS

In the conduct of the inspection of the property to be appraised, the appraiser shall perform
the following, where applicable:

7. See if the property is obsolete or is still being manufactured and if spare parts are still
procurable in the market. If the property is found obsolete, appraise the property as junk

8. Determine quality or degree of maintenance, repair, restoration, or upgrading made,

check logbook, if available

9. Determine the extent of use, mileage, rate of depreciation, and any excessive wear and
tear

66
INSPECTION PROCESS

In the conduct of the inspection of the property to be appraised, the appraiser shall perform
the following, where applicable:

10. Determine whether the property has still market demand; or the existence of probable buyers in the locality

11. Inspect the location of the properties and the available facilities for their transportation

12. See if the property is sheltered or exposed to elements and theft

13. If the property is to be disposed of as junk, determine parts which could be salvaged to profitably used such
as engine, dynamo, wheels, tires, axles, body/chassis, etc. of motor vehicles

67
 DETERMINATION OF CONDITION RATING OF
PROPERTY
Very Good (VG) Being used to its fully specified purpose without
80-100% being modified
Good (G) Being used near its specified utilization, with minor repair
55-75%
Fair (F) Below its fully specified utilization, requires general
35-50% repair/replacement of minor parts
Poor (P) Below its fully specified utilization, needs extensive
15-30% repair/replacement of major components

Scrap (S) Unserviceable/cannot be utilized to any practical

0-10% degree regardless of modification or repair36

(CF of Missing Property - 100%)

 PRICE Approach on Disposal
Pinpoint - determine and identify the items for
disposal
Record - list the items in the I & I Report or WMR,
take pictures
Inspect - check the existence and condition
Compute - solve for the AppraisedValue (AV)
Evaluate - analyse the AVs & recommend the most
realistic/reasonable AV
Guidelines/Procedures
in the Sale of Property
 Pre-bidding Requirements
• Invitation to Bid
- Name of the Owning Agency
- Sufficient description of the items
- Date, time and place of pre-bidding
conference, if necessary
- Date, Time and place of submission and
opening of bids
- Bidding Requirements
- Reservation or Option on the part of the
government to accept or reject

(Manual on Disposal of Government Property, DBM)

 Pre-bidding Requirements

• Schedule of Bidding
- not less than seven (7) working days from
date of issuance/publication/posting of the ITB

Manual on Disposal of Government Property, DBM

 Accomplishment and Submission
of Bids
• Preparation of the Bid Tender (qualified bidder)
- Description of the Items with corresponding bid
offer clearly indicated in figures and in words
- Name and signature of the bidder
- Business or residence address of the bidder
- Business license number of the bidder
- Terms and conditions offered regarding bidders
bond, payment, default and delivery
(Manual on Disposal of Government
Property, DBM)
 Accomplishment and Submission
of Bids
• Bid Tender
- 3 copies, preferably in type written;
- properly signed and submitted on or before the
time scheduled for the opening of bids
- envelop should be sealed and addressed properly
and correctly

Manual on Disposal of Government Property, DBM

 Bid Bond

• Per Item/lot, as the case maybe

• 10% of the minimum bid price set by the

government

• Form – cash or manager’s check or cashier’s

check
 Opening of Bids

• All bids shall be opened at the time, date and place

set in the invitation to bid

• Bid Tender shall be signed by the members of the

Disposal Committee immediately after its opening
and announced in order to confirm compliance with
the requirements of the bidding.
Manual on Disposal of Government Property, DBM
 Abstract of Bids

• Abstract of bids in duplicate copies;

• Signed by the members of the Disposal
Committee
• Matrix Summary form showing bids of the
individual bidders, their bids and bid bonds per
item/per lot and the confirmation of the disposal
committee
Manual on Disposal of Government Property, DBM
 Unsuccessful Bidding

• No bidding participant
• One (1) bidder submitted a bid tender for each lot
• All bidders failed to comply with the terms and
conditions prescribed in the ITB
• Complying bidders failed to meet the
minimum bid price

Manual on Disposal of Government Property, DBM

The highest bid falls below the government floor
price, the agency shall:

1. Determine whether the difference is

excessive
Excessive if amount of deviation of the highest
bid from the floor/reference value is greater
than 10% of the floor/reference value plus the
cost of calling another public auction
If Excessive, call another public auction with the
floor/reference value reduced by 10%

COA Memorandum 98-569-A dated August 5, 1998

The highest bid falls below the government floor
price, the agency shall:

• If the 2nd auction still fails (highest bid is still

excessively lower than the reduced
floor/reference value) the sale may be
negotiated with the highest offeror

• If NOT excessive, continue with the sale of the

property

COA Memorandum 98-569-A dated August 5, 1998

 Awarding of Bids

• Award shall be given to the highest

complying bidder
• 2 or more complying bidders with identical bids
• Price not less than the offered bids
• Immediately after the opening of bids

Manual on Disposal of Government Property, DBM

 Awarding of Bids

• Deferment of award: issue a temporary receipt, but

not to exceed five (5) working days from the date of
opening of bids

• Bid bonds of the losing bidder shall be returned

immediately after the announcement of the
winning bidder

Manual on Disposal of Government Property, DBM

 Payment

• Bid bond shall be considered as partial payment

• Balance shall be paid in the form of cash, cashier’s
check or manager’s check
• Shall be made within five (5) working days from the
date of the notice of award
• In case of failure for full payment – cancellation of
award and forfeiture of the bid bond

Manual on Disposal of Government Property, DBM

Guidelines in the Claim of Award / Withdrawal
of Property
• Claims shall be made only by the Awardee after full
payment.
• The Property Officer shall accomplish aTally- Out
Sheet to be acknowledged by the Awardee.
• Claims shall be made only
during official working hours.
• Claims shall be made within the period fixed by the
Disposal Committee but not more than 30 days
after awarding.

Manual on Disposal of Government Property, DBM

 Dropping from the Books of Accounts

• Accomplish the pertinent portions of the Inventory

and Inspection Report of Unserviceable Property,
Waste Materials Report, whichever is applicable

• Reports shall be the basis for dropping the property

from the books of accounts and taking up the
proceeds from the sale of the property.
Manual on Disposal of Government Property, DBM
 Management Responsibilities

• Conduct inspection of unserviceable and disposable

government property and other assets

• Submit the report of inspection or its equivalent to the

Head of the Auditing Unit immediately after inspection

• Furnish the Auditor with a copy of the schedule of

condemnation / destruction of government property at
least 5 days before the scheduled time

COA Circular No. 95-006 dated 18 May 1995

 Policies on the disposal of PPE
• The gain or loss arising from derecognition of an item of
PPE shall be included in surplus or deficit when the item is
derecognized.

• If, under the recognition principle, an entity recognizes in the

carrying amount of PPE the cost of a replacement for its part,
then the carrying amount of the replaced part shall be
derecognized. If it is not practicable to determine the carrying
amount of the replaced part, the entity may use the cost of
the replacement as an indication of what the cost of the
replaced part was at the time it was acquired or constructed.
 Derecognition (GAM for NGAs)

• The cost of PPE together with the related

accumulated depreciation and accumulated
impairment loss shall be removed from the
accounts.

• The carrying amount of an item of PPE shall be

derecognized on disposal or when no future economic
benefits or service potential is expected from its use or
disposal.
 Policies on the disposal of PPE
• The gain or loss arising from the disposal of an item of PPE
shall be determined as the difference between the net
disposal proceeds, if any, and the carrying amount of the
item.

• A JEV shall be prepared by the Accounting Division/Unit to

derecognize the asset from the books of accounts only
after its disposal.

• Disposal procedures of unserviceable property shall be in

accordance with applicable rules and regulations on Supply
and Property Management Manual and Sec. 79 of PDNo.
1445.
 EXERCISE 1.1
Multiple Choice Questions

90
EXERCISE 1.1-MCQ
1. The end of the life cycle of government property.
a. Utilization
b. Acquisition
c. Disposal

Answer: “C”

2. Has the authority or responsibility for the disposal or divestment of government

property.
a. COA Auditor
b. Agency Head
c. Disposal Committee
d. Property Officer

Answer: “B”
91
EXERCISE 1.1-MCQ
3. A personal and/or real property of a taxpayer forfeited to the government for failure to pay taxes.
a. Confiscated/Seized Property
b. Unclaimed Motor Vehicle
c. Unserviceable Property
d. Property under Distraint/Levy/Garnishment
e. Real Property

Answer: “D”

4. Properties that come into the ownership and possession of the government as a result of its
implementation, enforcement of laws and regulations and to avoid accumulation and loss of their economic
value as well as to generate revenue for the government, the following confiscated/seized property is
authorized to be disposed of in accordance with existing laws, rules, and regulations.
a. Confiscated/Seized Property
b. Unclaimed Motor Vehicle
c. Unserviceable Property
d. Property under Distraint/Levy/Garnishment
e. Real Property

Answer: “A”
92
EXERCISE 1.1-MCQ
5. This form is used in the disposal of waste materials that result from the consumption or
utilization of expendable materials; and covers damaged equipment parts, empty
containers, and remnants salvaged from destroyed or damaged fixed assets.
a. Inventory and Inspection Report of Unserviceable Property (IIRUP)
b. Waste Materials Report (WMR)
c. Report on the Physical Count of Property, Plant, and Equipment (RPCPPE)
d. Stock Card (SC)

Answer: “B”

6. This report is used for the disposal of vehicles, mechanized equipment, office equipment,
furniture, and semi-expendable materials
a. Waste Materials Report (WMR)
b. Report on the Physical Count of Property, Plant, and Equipment (RPCPPE)
c. Stock Card (SC)
d. Inventory and Inspection Report of Unserviceable Property (IIRUP)

Answer: “D” 93
EXERCISE 1.1-MCQ

7. A mode of disposal where an agency transfers property to another government agency in

exchange for another piece of property.
a. Donation
b. Sale of Unserviceable Property
c. Barter
d. Transfer of Property
Answer: “C”

8. Which of the following is not among the objectives of disposal?

a. To avoid continuing carrying/inventory costs
b. To prevent further deterioration thereby obtaining a fair return in case of sale
c. To relieve accountable officers of unnecessary accountability
d. To make available space for the agency to use
e. None of the above
Answer: “E”

94
EXERCISE 1.2
True or False

95
EXERCISE 1.2 – True or False

1. Appraised Value is the price estimated that a property will

bring if exposed for sale in the open market, allowing a
reasonable time to find a buyer who buys with knowledge of
the actual condition and utility of the property.

Answer: “FALSE”

2. The Disposal Committee shall recommend to the Head of

the Agency the mode of disposal as appropriate and deemed
most advantageous to the government.

Answer: “TRUE”

96
EXERCISE 1.2 – True or False

3. Appraisal is the art of estimating the fair exchange worth of a

property as of a specified date, supported by relevant and factual
data. An appraisal is not an exact science but it is an opinion of
value.

Answer: “TRUE”

4. The objective of computing the appraised value of the property is

to set the government’s maximum selling price so that the
government shall receive fair compensation for the items sold.

Answer: “FALSE”

97
EXERCISE 1.2 – True or False

5. Replacement Cost New (RCN) is the price of comparable or

similar new property for the current year. It is the cost of
construction at current prices of a property having a utility
equivalent to the property being appraised

Answer: “TRUE”

6. Estimated Useful Life (EUL) refers to the number of years from

the date of appraisal to the anticipated date that a property
may be utilized

Answer: “FALSE”

98
Penal, Civil and Administrative
Liabilities and Sanctions in
Relation to Appraisal and
Disposal of Government
Property
Session Overview

•Sec. 3(a) – persuading, inducing or

influencing
•Sec. 3(b) – requesting or receiving any gift
RA No. 3019 •Sec. 3(e) – giving unwarranted benefits
(Anti-Graft Law) •Sec. 3(g) - contract grossly disadvantageous
•Sec. 3(h) - having financing or pecuniary
interest
•Sec. 3(k) – premature disclosure

• Art. 171 - Falsification by public officer

Act No. 3815 • Art. 172 - Falsification by private individual
• Art. 210 – Direct Bribery
(Revised Penal Code) • Art. 211 – Indirect bribery
• Art. 212 – Corruption of Public Official
 Possible acts in violation of penal laws

• Improper mode of disposal.

• Under appraisal of value of property subject of

disposal.

• Acceptance of late bids.

• Awarding of contract to an ineligible bidder.

• Participating in a public bidding using the name of

another or allowing another to use one’s name for
the purpose of participating in a public bidding.

101
 Possible acts in violation of penal laws

• Opening any sealed all documents required to be

sealed or divulging their contents, prior to the
appointed time for the public opening of Bids or
other documents.

• Abuse by the Head of the concerned government

agency of his power to reject any and all bids, with
manifest preference to any bidder who is closely
related to him.

102
 Possible acts in violation of penal laws

• When two or more bidders agree and submit different

bids as bona fide bidders, all the while knowing that the
bid(s) of one or more of them was so much lower than
the other that the latter could not be honestly accepted
and that the contract will surely be awarded to the pre-
arranged highest bid.

• When a bidder maliciously submits different bids

through two or more persons, corporations,
partnerships or any other business entity in which he
has an interest, to create the appearance of
competition that does not in fact exist so as to be
adjudged as the winning bidder.

103
Issuance of Notice of Charge (NC) for under
appraisal of value of property

Issued on the difference of the following,

which are proper audit charge:
a) Amount assessed/appraised is less than
what is due;
b) Amount billed is less than what is due;
c) Amount collected is less than what is due
Related Offenses Under RA 3019

Divulging valuable information of a confidential

character, acquired by his office or by him on
account of his official position to unauthorized
persons or releasing such information in advance
of its authorized release date [Sec. 3(k)]
RA No. 3019 (Sec. 9)
Penalties for violations of the AGL:

• Imprisonment for not less than 1 year nor more than

10 years

• Perpetual disqualification from public office

• Confiscation or forfeiture in favor of the Government of

any prohibited interest and unexplained wealth
manifestly out of proportion to salary and other lawful
income
Related Offenses Under RA 3019

Causing any undue injury to any party, including

the Government, or giving any private party any
unwarranted benefits, advantage or preference in
the discharge of his official administrative or
judicial functions through manifest partiality,
evident bad faith or gross inexcusable negligence
[Sec. 3(e)]
RA No. 3019 [Sec. 3(e)] - Corrupt practices

Two ways violated:

▪ Causing undue injury to any party, including the

government

▪ Giving any private party any unwarranted benefit,

advantage or preference

❖ Either act qualifies as violation of Sec. 3(e)

RA No. 3019 [Sec. 3(e)] - Corrupt practices
Elements:

1) The offender is a public officer

2) The act was done in the discharge of the public officer’s official,
administrative or judicial functions

3) The act was done through manifest partiality, evident bad faith,
or gross inexcusable negligence

4) The public officer caused any undue injury to any party,

including the Government, OR gave any unwarranted benefits,
advantage or preference. (Sison vs. People, G.R. No. 170339,
170398-403, March 9, 2010)
RA No. 3019 [Sec. 3(e)] - Corrupt practices

“Partiality”, “bad faith”, or “negligence” is not

enough. Partiality must be manifest, Bad faith
must be evident, and the negligent act must be
gross and inexcusable. (Sistoza vs. Desierto, G.R.
No.144784, September 3, 2002)
RA No. 3019 [Sec. 3(e)] - Corrupt practices
Uriarte vs. Sandiganbayan, G.R. No. 169251 December 20, 2006
Manifest Partiality Evident Bad Faith Gross Inexcusable Negligence

A clear, or plain Connotes not only Negligence

indication or bad judgment but characterized by the
also patently and want of even the
predilection to favor palpably fraudulent slightest care, acting in
one side or person and dishonest a situation where there
is a duty to act, not
rather than another purpose to do moral inadvertently but
obliquity or willfully and
conscious intentionally with
wrongdoing for some conscious indifference
perverse motive or ill to consequences
will insofar as other
persons may be
affected
RA No. 3019 [Sec. 3(e)] - Corrupt practices
SC decided case on Section 3(e)
Sison vs. People G.R. No. 170339, 170398-403, March 9, 2010

➢ On post audit, the Auditor found that during the incumbency of Mayor Sison,
Calintaan, Occidental Mindoro, a fourth-class municipality, no public bidding
was conducted for the purchase of a Toyota land cruiser, 119 bags of fortune
cement, an electric generator set, certain construction materials, two desert
dueler tires, and a computer and its accessories; there were irregularities in the
documents supporting these acquisitions.
➢ Sison was indicted before the Sandiganbayan in seven separate informations
for seven counts of violation of section 3(e) of RA 3019.
➢ In open court, Sison admitted that indeed, no public bidding was conducted
insofar as the purchases of which he was being accused of were concerned.
➢ The purchases were done through personal canvass.
➢ That no public bidding could be conducted because all the dealers of the items
were based in Manila.
➢ Thus, it was useless to invite bidders since nobody would bid anyway.
RA No. 3019 [Sec. 3(e)] - Corrupt practices
SC decided case on Section 3(e)
Sison vs. People G.R. No. 170339, 170398-403, March 9, 2010

➢ The Sandiganbayan found Sision guilty as charged. Hence, his appeal to

the SC.

Ruling of SC: the first two elements of sec 3(e) are present in the case at bar.

➢ The third and fourth elements are likewise present.

➢ Sison was grossly negligent in all the purchases that were made under his
watch. His admission that the canvass sheets sent out by De Jesus to the
suppliers already contained his signatures because he pre-signed these
forms only proved his utter disregard of the consequences of his actions.
➢ His admission that he knew the provisions of RA 7160 on personal canvass
but he did not follow the law because he was merely following the practice
of his predecessors, is a mindless disregard for the law in a tradition of
illegality.
➢ As local chief executive, he should have been the first to follow the law and
see to it that it was followed by his constituency.
RA No. 3019 [Sec. 3(e)] - Corrupt practices
SC decided case on Section 3(e)

Sison vs. People G.R. No. 170339, 170398-403, March 9, 2010

➢ The fourth element is likewise present. Undue injury to the government

was not proven. However, the other way of violating section 3(e) of RA
3019, that is, by giving any private party any unwarranted benefit,
advantage or preference, was established.

➢ Petitioner has given unjustified favor or unwarranted benefit to

another, when he repeatedly failed to follow the requirements of RA
7160 on personal canvass.

➢ The private suppliers, which were all personally chosen by respondent,

were able to profit from the transactions without showing proof that
their prices were the most beneficial to the government.
Related Offenses Under RA 3019

Persuading, inducing or influencing another public

officer to perform an act constituting a violation of
rules and regulations duly promulgated by
competent authority or an offense in connection with
the official duties of the latter, or allowing himself to
be persuaded, induced, or influenced to commit
such violation or offense [Section 3(a)]
RA No. 3019 [Sec. 3(a)] - Corrupt practices

Two ways of violating:

▪ Persuading, inducing, influencing another public

officer
▪ Allowing himself to be persuaded, induced or
influenced
Related Offenses Under RA 3019

Directly or indirectly having financing or pecuniary

interest in any business, contract or transaction in
connection with which he intervenes or takes part
in his official capacity, or in which he is prohibited
by the Constitution or by any law from having any
interest [Sec. 3(h)]
Related Offenses Under RA 3019

Entering into contract or transaction

manifestly and grossly
disadvantageous to the government
whether or not the officer profited or
will profit thereby [Sec. 3(g)]
RA No. 3019 [Sec. 3(g)] - Corrupt practices

ELEMENTS:

➢ The accused is a public officer

➢ He entered into a contract or transaction in

behalf of the government

➢ Such contract or transaction is grossly and

manifestly disadvantageous to the government.
(Nava vs. Palattao et al., G.R. No. 160211
August 28, 2006)
RA No. 3019 [Sec. 3(g)] - Corrupt practices
SC decided case on Section 3(g)

Nava vs. Palattao et al., G.R. No. 160211 August 28, 2006

• In the Audit Report, the amount of P603,265.00 was released to the

DECS Division of Davao del Sur for distribution to the newly
nationalized high schools located within the region. Through the
initiative of accused Venancio Nava, a meeting was called among his 7
schools division superintendents whom he persuaded to use the
money or allotment for the purchase of Science Laboratory Tools and
Devices (SLTD). In other words, instead of referring the allotment to the
155 heads of the nationalized high schools for the improvement of
their facilities, accused Nava succeeded in persuading his 7 schools
division superintendents to use the allotment for the purchase of
science education facilities for the calendar year 1990.
RA No. 3019 [Sec. 3(g)] - Corrupt practices

SC decided case on Section 3(g)

Nava vs. Palattao et al., G.R. No. 160211 August 28, 2006

• In the purchase of the SLTD, the law provides that the same shall
be done through a public bidding pursuant to Circular No. 85-55,
series of 1985. But in the instant case, evidence shows that
accused Nava persuaded his 7 schools division superintendents
to ignore the circular as allegedly time was of the essence in
making the purchases and if not done before the calendar year
1990, the funds allotted will revert back to the general fund.
RA No. 3019 [Sec. 3(g)] - Corrupt practices

SC decided case on Section 3(g)

Nava vs. Palattao et al., G.R. No. 160211 August 28, 2006

• In the hurried purchase of SLTDs, the provision on the conduct of a

public bidding was not followed. Instead the purchase was done
through negotiation. As disclosed by the audit report, the prices of the
[SLTDs] as purchased from the above-named sellers exceeded the
prevailing market price ranging from 56% to 1,175% based on the
mathematical computation done by the COA audit team. The report
concluded that the government lost P380,013.60. That the injury to
the government as quantified was the result of the non-observance by
the accused of the COA rules on public bidding and DECS Order No.
100 suspending the purchases of [SLTDs].
RA No. 3019 [Sec. 3(g)] - Corrupt practices

SC decided case on Section 3(g)

Nava vs. Palattao et al., G.R. No. 160211 August 28, 2006

• Ruling of the Sandiganbayan

• After due trial, only petitioner was convicted, while all the other accused
were acquitted.
• Petitioner was found guilty of violating Section 3(g) of the Anti-Graft and
Corrupt Practices Act, or entering on behalf of the government any
contract or transaction manifestly and grossly disadvantageous to the
latter, whether or not the public officer profited or would profit thereby.
• The Sandiganbayan said that, in the purchase of the SLTDs, petitioner
had not conducted a public bidding in accordance with COA Circular No.
85-55A. As a result, the prices of the SLTDs, as purchased, exceeded the
prevailing market price from 56% to 1,175%, based on the mathematical
computations of the COA team.
Related Offenses Under RA 3019

Directly or indirectly requesting or receiving any gift or

benefit in connection with any contract or transaction
between a government agency and another person
wherein the public officer in his capacity has to
intervene under the law [Sec. 3(b)].
Related Offenses Under RA 3019
Elements of Section 3(b):
1.Offender is a public officer;
2.Requested and/or received gift, present, or consideration;
3.Gift, present, consideration was for his benefit;
4.Requested and/or received in connection with contract or
transaction with govt.; and
5.Officer has right to intervene in his official capacity.
Related Offenses Under RA 3019

Sec. 3(b)

Three distinct acts penalized:

▪ Demanding or requesting;
▪ Receiving; or
▪ Demanding, requesting and receiving any gift, etc.

❖These are distinct from each other; proof of one

suffices.
❖Demand immaterial because of “or” between requesting
and receiving.
Related Offenses Under RA 3019
Entrapment as mode of apprehending violators of Section 3(b):
✓To apprehend officer in act of obtaining undue benefits for
this is usually the only way to obtain direct evidence.
✓Clear intention to take and own gift.
✓Mere physical receipt without more to show acceptance is
not sufficient. Otherwise officers may be set up by just
putting within their physical custody gift, money or other
property.
Article 210 – Direct bribery, Revised Penal Code

Direct bribery is committed by a public officer who

accepts an offer or promise or receives a gift or
present, by himself or through another, with a view:
• to perform an act constituting a crime, in
connection with the performance of his official
duties, or
• in consideration of the execution of an act that
does not constitute a crime but is unjust, or
• to refrain from doing something that it is his
official duty to do.
Article 211 – Indirect bribery, Revised Penal
Code

Indirect bribery is committed by a public

officer who accepts a gift offered to him by
reason of his office.
Article 211-A – Qualified bribery, Revised Penal
Code, as amended by RA No. 7659

Qualified bribery is committed by a public officer

entrusted with law enforcement, who refrains from
arresting or prosecuting an offender who has
committed a crime punishable by reclusion
perpetua (imprisonment of 20 years to 40 years)
and/or death, in consideration of any offer,
promise, gift or present.
Article 212 – Corruption of public officials,
Revised Penal Code

Corruption of public officials is the crime

committed by the private person who shall
have made the offers or promises or given
the gifts or presents to the public officers,
as described in the abovementioned crimes
of bribery.
Article 171 - Falsification by public officer,
Revised Penal Code
Elements of the offense:

1. Offender is a public officer, employee, or notary public

2. He takes advantage of his official position. This is proven by

evidence that the accused has:
a. The duty to make or prepare or
b. Intervene in the preparation of, or
c. He has the official custody of the falsified document;

3. He falsifies a document by committing any of the 8 acts.

Penalty:

➢ Prision mayor and a fine not to exceed P1,000,000.00

RA No. 6713 (The Code of Conduct and Ethical Standards
for Public Officials and Employees)
The law prohibits public officials and employees
from soliciting or accepting, directly or indirectly,
any gift, gratuity, favor, entertainment, loan or
anything of monetary value from any person: (a) in
the course of their official duties; or (b) in
connection with any operation being regulated by,
or any transaction which may be affected by, the
functions of their office. [Sec. 7(d)]
Punishable with imprisonment not exceeding 5 years, or a fine not
exceeding five thousand pesos (P5,000), or both, and, in the
discretion of the court of competent jurisdiction, disqualification to
hold public office.
Acts of Falsification

1st Act: Counterfeiting or imitating any handwriting,

signature or rubric

• Elements:

1. That there be an intent to imitate, or an attempt to

imitate; and

2. That the two signatures or handwritings, the genuine

and the forged, bear some resemblance, to each
other.
Acts of Falsification

➢ There must be an attempt to imitate the genuine

handwriting or signature and that the two have
some resemblance, otherwise the offense may
fall under Article 171, 2nd par

➢ Evidence of this may occur in ghost deliveries,

misappropriation, diversion of funds or property,
fabricated board or council resolutions
Acts of Falsification
2nd Act: Causing it to appear that persons have participated
in any act or proceeding when they did not in fact so
participate;

• ELEMENTS:

1. That the offender caused it to appear in a document

that a person or persons participated in an act or a
proceeding; and

2. That such person did not in fact participate in the act or

proceeding.

❖ May be committed in case of rigged biddings

Acts of Falsification
4th Act: Making untruthful statements in a narration of facts

• There must be a narration of facts, not a conclusion of law.

Narration must be on a material matter

• The person making the narration of facts must be aware of

the falsity of the facts narrated by him. This kind of
falsification may be committed by omission

• Legal obligation means that there is a law requiring the

disclosure of the truth of the facts narrated
Acts of Falsification
5th Act: Altering true dates

ELEMENTS:

1. Date must be essential

2. Alteration must affect veracity of document or effects

• If a document is suspected to have been ante-dated, look for

inconsistencies in the date of supporting documents or other
records or by cross-checking numbered forms in order to
uncover and prove falsification

Ex: Falsification of date of bidding documents (rigged bidding),

official receipts, purchase orders, delivery receipts, etc.
Acts of Falsification

6th act: Making any alteration or intercalation in a genuine

document which changes its meaning

• ELEMENTS:

1. There is an alteration (change) or intercalation (insertion)

on a document
2. It was made on a genuine document
3. The alteration or intercalation has changed the meaning of
a document
4. The change made the document speaks something false
Article 171 - Falsification by public officer , RPC
If offender does not take advantage of his public position,
he may still be liable for falsification of documents by a
private person under Art. 172 (Falsification by private
individual and use of falsified documents)

Penalty:
Prision correccional in its medium and maximum periods
and a fine of not more than P1,00,000.00
Article 183 - False Testimony in Other Cases and Perjury
in Solemn Affirmation, RPC

Any person, who knowingly makes untruthful statements

and not being included in the provisions of the next
preceding articles, shall testify under oath, or make an
affidavit, upon any material matter before a competent
person authorized to administer an oath in cases in which
the law so requires.
Article 183 - False Testimony in Other Cases and Perjury
in Solemn Affirmation, RPC

• The next three preceding articles referred to above are:

1. Art. 180. False testimony against a defendant

2. Art. 181. False testimony favorable to the defendants
3. Art. 182. False testimony in civil cases
Article 183 - False Testimony in Other Cases and Perjury
in Solemn Affirmation, RPC

Acts punished:

• 1. By falsely testifying under oath;

• 2. By making a false affidavit.
Article 183 - False Testimony in Other Cases and Perjury
in Solemn Affirmation, RPC
• Elements of perjury:

1. Offender makes a statement under oath or executes an

affidavit upon a material matter;
2. The statement or affidavit is made before a competent
officer, authorized to receive and administer oaths;
3. Offender makes a willful and deliberate assertion of a
falsehood in the statement or affidavit;
4. The sworn statement or affidavit containing the falsity is
required by law, that is, it is made for a legal purpose.

Example: willful and deliberate assertion of a falsehood

in the SALN and bidding documents
 Administrative Liabilities

• Misconduct (Grave or Simple)

• Dishonesty (Serious, Less Serious, or
Simple)
• Conduct Prejudicial to the Best Interest of
the Service
• Violation of Reasonable Office Rules and
Regulations
 Administrative Liabilities
Grave misconduct
✓ Misconduct has been defined as an intentional wrongdoing or a deliberate
violation of a rule of law or standard of behavior, especially by a government
official.

✓ A misconduct is grave where the elements of corruption, clear intent to violate

the law or flagrant disregard of established rule are present. Otherwise, a
misconduct is only simple. (Imperial vs. GSIS, G.R. No. 191224, Oct. 4, 2011 and
Landrito vs. CSC, 223 SCRA 564)

✓ Penalty: Dismissal from the service with accessory penalties, for the first
offense

✓ Example: Soliciting or accepting directly or indirectly, any gift, gratuity, favor,

entertainment, loan or anything of monetary value which in the course of
his/her official duties or in connection with any operation being regulated
by, or any transaction which may be affected by the functions of his/her
office. The propriety or impropriety of the foregoing shall be determined by
its value, kinship, or relationship between giver and receiver and the
motivation. A thing of monetary value is one which is evidently or manifestly
excessive by its very nature;
 Administrative Liabilities
Section 2. Classification of Dishonesty and their Corresponding
Penalties.

a. Serious Dishonesty – punishable by dismissal from the service.

b. Less Serious Dishonesty – punishable by suspension from the

government service for a period of six (6) months and one (1) day to
one (1) year for the first offense and dismissal from the service for
the second offense.

c. Simple Dishonesty – punishable by suspension from the government

service for a period of one (1) month and one (1) day to six (6)
months for the first offense; six (6) months and one (1) day to one
(1) year suspension for the second offense; and dismissal from the
service for the third offense. (CSC Resolution No. 2100079 dated
January 27, 2021)
 Administrative Liabilities
Serious dishonesty

✓ The concealment or distortion of truth, which shows

lack of integrity or a disposition to defraud, cheat,
deceive or betray and an intent to violate the truth.
(Sec. 1, CSC Reso. 06-0538, April 4, 2006)
 Administrative Liabilities
CSC Resolution No. 2100079 dated January 27, 2021
Section 3. Circumstances Constituting the Administrative Offense of
Serious Dishonesty.

The presence of any one of the following attendant circumstances in

the commission of the dishonest act would constitutes the offense of
serious dishonesty:

a. The dishonest act caused serious damage and grave prejudice

to the government such as when the integrity of the office is
tarnished, or the operations of the office are affected.

b. The respondent gravely abused his/her authority in order to

commit the dishonest act.
 Administrative Liabilities
CSC Resolution No. 2100079 dated January 27, 2021
Section 3. Circumstances Constituting the Administrative Offense of
Serious Dishonesty.

c. Where the respondent is an accountable officer, the dishonest act

directly involves property, accountable forms or money for which
he is directly accountable and the respondent shows an intent to
commit material gain, graft and corruption

d. The dishonest act exhibits moral depravity on the part of the

respondent whether or not said act was committed in the
performance of his/her duties.

e. The dishonest act involves a civil service examination irregularity or

fake civil service eligibility, such as, but not limited to,
impersonation, cheating and use of crib sheets.
 Administrative Liabilities
CSC Resolution No. 2100079 dated January 27, 2021
Section 3. Circumstances Constituting the Administrative Offense of
Serious Dishonesty.

f. The dishonest act relates to the respondent’s employment such as

but not limited to misrepresentation on his/her qualifications as to
education, experience, training and eligibility in order to qualify for
a particular position, and/or the submission of fake and/or
spurious credentials.

g. Other analogous circumstances

 Administrative Liabilities
CSC Resolution No. 2100079 dated January 27, 2021
Section 4. Circumstances Constituting the Administrative Offense of Less
Serious Dishonesty.

a. The dishonest act caused damage and prejudice to the

government which is not so serious as to qualify under Section 3
(a) of these Rules.

b. The dishonest act committed involves sums of money or

government property and the respondent, who must not be an
accountable officer as defined under these Rules, restitutes the
same.
 Administrative Liabilities
CSC Resolution No. 2100079 dated January 27, 2021
Section 4. Circumstances Constituting the Administrative Offense of Less
Serious Dishonesty.

c. The respondent took advantage of his/her position in committing

the dishonest but not for personal gain or benefit;

d. The respondent did not take advantage of his/her position in

committing the dishonest act but nonetheless resulted in his/her
benefitting from such act.

e. Other analogous circumstances.

 Administrative Liabilities
CSC Resolution No. 2100079 dated January 27, 2021
Section 5. Circumstances Constituting the Administrative Offense of Simple
Dishonesty.

a. The dishonest act has no direct relation to or does not involve the
duties and responsibilities of the respondent, or that the same did
not cause damage or prejudice to the government, subject to the
condition that the dishonest act does not constitute moral
depravity penalized under Section 3 (d) of these Rules.

b. In falsification of any official document, where the information

falsified is not related to his/her employment, or when the
falsification of official document did not cause damage or
prejudice to the government, unless the dishonest act constitutes
moral depravity as defined under these Rules.
 Administrative Liabilities
CSC Resolution No. 2100079 dated January 27, 2021
Section 5. Circumstances Constituting the Administrative Offense of Simple
Dishonesty.

c. The respondent did not take advantage of his/her position in

committing the dishonest act, and that, such dishonest act did not
result in any personal gain or benefit nor caused damage and
prejudice to the government.

d. Other analogous circumstances

 Administrative Liabilities
Conduct Prejudicial to the Best Interest of the Service

✓ Need not be related to or connected with the public officers official

functions.

✓ As long as the questioned conduct tarnishes the image and integrity

of his/her public office, the corresponding penalty may be meted on
the erring public officer or employee.

✓ Under the civil service law and rules, there is no concrete description
of what specific acts constitute the grave offense of conduct
prejudicial to the best interest of the service.
 Administrative Liabilities
Conduct Prejudicial to the Best Interest of the Service
✓ Jurisprudence, however, is instructive on this point.

✓ The court has considered the following acts or omissions, inter alia,
as conduct prejudicial to the best interest of the service:

• misappropriation of public funds

• abandonment of office
• failure to report back to work without prior notice
• failure to safe keep public records and property
• making false entries in public documents and falsification of
court orders (GSIS vs. Mayordomo, G.R. No. 191218, may 31,
2011)
Thank You!

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