ARTICLE 216

POSSESSION OF PROHIBITED
INTEREST BY A PUBLIC
OFFICER
ARTICLE 216

Who are liable?

1. Public officer who, directly or indirectly, became
interested in any contract or business in which it
was his official duty to intervene.

2. Experts, arbitrators, and private accountants

who, in like manner, took part in any contract or
transaction connected with the estate or
property in the appraisal, distribution or
adjudication of which they had acted; or
ARTICLE 216

Who are liable?

3. Guardians and executors with respect to the
property belonging to their wards or the estate.
ARTICLE 216

What is the penalty imposed?

The penalty of arresto mayor in its medium period

to prision correccional in its minimum period or a
fine ranging from Php40,000 to Php200,000 or both.
ARTICLE 216

Actual fraud is not necessary

 The mere violation of the prohibition is punished
although no actual fraud occurs therefrom. The
act is punished because of the possibility that
fraud may be, or that the officer may place his
own interest above that of the Government or of
the party which he represents. (U.S. v. Udarbe,
G.R. No. 9945, 12 Nov. 1914)
ARTICLE 216

Application of this Article to

Appointive Officials
 Art. 216 includes not only appointive but also
elective public officials. In fact, under the
second paragraph of the said article, even
private individuals can be held liable.
ARTICLE 216

Constitutional Provisions Prohibiting

Interests
1. Sec. 14, Art. VI – Members of Congress cannot
personally appear as counsel; cannot be
interested financially in any franchise or special
privilege granted by government; cannot
intervene in any matter before office of
Government.
ARTICLE 216

Constitutional Provisions Prohibiting

Interests
2. Sec. 13, Art. VII – The President, Vice President, the Members
of the Cabinet and their deputies or assistant shall not, unless
otherwise provided in this Constitution, hold any other office
or employment during their tenure. They shall not, during said
tenure, directly or indirectly, practice any other profession,
participate in any business, or be financially interested in any
contract with, or in any franchise, or special privilege granted
by the Government or any subdivision, agency or
instrumentality thereof, including GOCCs or their subsidiaries.
They shall strictly avoid conflict of interest in the conduct of
their office.
ARTICLE 216

Constitutional Provisions Prohibiting

Interests
3. Sec. 2, Art. IX-A – No member of a Constitutional
Commission shall, during his tenure, hold any office or
employment. Neither shall he engage in the practice of
any profession or in the active management or control of
any business which in any way may be affected by the
functions of his office, nor shall he be financially
interested, directly or indirectly, in any contract with, or
in any franchise or privilege granted by the government,
or any of its subdivisions, agencies, or instrumentalities,
including GOCCs or their subsidiaries.