Article 160p. 160

ADMINISTRATIVE CODE AND LAW OF PUBLIC OFFICERS TEXT AND RULES

statements of assets, liabilities, net worth and disclosure

of information.

In

the

event

said

authorities

determine

that

a

statement is not properly filed, they shall inform the

reporting individual and direct him to take the necessary

corrective action.

The individual to whom an opinion is rendered, and

any other individual involved in a similar factual situation,

and who, after issuance of the opinion acts in good faith

in accordance with it shall not be subject to any sanction

provided in the Code.

RULE IX Conflict of Interest and Divestment

SECTION 1. (a) An official or employee shall avoid

conflict of interest at all times.

(b) Conflict of interest occurs:

(1) When the official or employee is:

(a) a substantial stockholder; or

(b) a member of the Board of Directors; or

(c) an officer of the corporation; or

(d) an owner or has substantial interest in a business;

or

(e) a partner in a partnership; and

(2) The interest of such corporation or business, or his

rights or duties therein, are opposed to or affected by the

faithful performance of official duty.

(c) A substantial stockholder is any person who owns,

directly or indirectly, shares of stock sufficient to elect a

director of a corporation. This term shall also apply to the

parties to a voting trust.

(d) A voting trust means an agreement in writing

between one or more stockholders of a stock corporation

for the purpose of conferring upon a trustee or trustees

the right to vote and other rights pertaining to the shares

for certain periods and subject to such other conditions

provided for in the Corporation Law.

SECTION 2. (a) When a conflict of interest arises, the

official or employee involved shall resign from his position

in any private business enterprise within thirty (30) days

from his assumption of office and/or divest himself of his

shareholdings or interests within sixty (60) days from

such assumption. For those who are already in the

service, and conflict of interest arises, the officer or

employee must resign from his position in the private

business

enterprise

and/or

divest

himself

of

his

shareholdings

or

interests

within

the

periods

herein-above provided, reckoned from the date when the

conflict of interest had arisen. The same rule shall apply

where the public official or employee is a partner in a

partnership.

(b)

If

the

conditions

in

Section

1

(b)

concur,

divestment

shall

be

mandatory

for

any

official

or

employee even if he has resigned from his position in any

private business enterprise.

(c) Divestment shall be to a person or persons other

than his spouse and relatives within the fourth civil

degree of consanguinity or affinity.

(d) The requirements for divestment shall not apply to

those specifically authorized by law and those who serve

the government in an honorary capacity nor to laborers

and casual or temporary workers.

RULE

X

Grounds

for

Administrative

Disciplinary Action

SECTION

1.

In

addition

to

the

grounds

for

administrative

disciplinary

action

prescribed

under

existing laws, the acts and omissions of any official or

employee, whether or not he holds office or employment

in a casual, temporary, hold-over, permanent or regular

capacity, declared unlawful or prohibited by the Code,

shall constitute grounds for administrative disciplinary

action,

and

without

prejudice

to

criminal

and

civil

liabilities provided herein, such as:

(a) Directly or indirectly having financial and material

interest in any transaction requiring the approval of his

office. Financial and material interest is defined as a

pecuniary or proprietary interest by which a person will

gain or lose something;

(b)

Owning,

controlling,

managing

or

accepting

employment as officer, employee, consultant, counsel,

broker,

agent,

trustee,

or

nominee

in

any

private

enterprise regulated, supervised or licensed by his office,

unless expressly allowed by law;

(c) Engaging in the private practice of his profession

unless authorized by the Constitution, law or regulation,

provided that such practice will not conflict or tend to

conflict with his official functions;

(d) Recommending any person to any position in a

private enterprise which has a regular or pending official

transaction with his office, unless such recommendation

or referral is mandated by (1) law, or (2) international

agreements, commitment and obligation, or as part of

the functions of his office;

These acts shall continue to be prohibited for a period

of one (1) year after resignation, retirement, or separation

from public office, except in the case of paragraph (c)

above, but the professional concerned cannot practice his

profession in connection with any matter before the

office he used to be with, within one year after such

resignation, retirement, or separation, provided that any

violation hereof shall be a ground for administrative

disciplinary action upon re-entry to the government

service.

(e) Disclosing or misusing confidential or classified

information officially known to him by reason of his office

and not made available to the public, to further his

private interests or give undue advantage to anyone, or to

prejudice the public interest;

(f) Soliciting or accepting, directly or indirectly, any

gift, gratuity, favor, entertainment, loan or anything of

monetary value which in the course of his official duties

or in connection with any operation being regulated by,

or

any

transaction

which

may

be

affected

by

the

functions of, his 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. *

Gift

refers

to

a

thing

or

a

right

disposed

of

gratuitously, or any act of liberality, in favor of another

who accepts it, and shall include a simulated sale or an

ostensibly onerous disposition thereof.

Loan covers both simple loan and commodatum as

well

as

guarantees,

financing

arrangement

or

accommodations

intended

to

ensure

its

approval.

Commodatum refers to a contract whereby one of the

parties delivers to another something not consumable so

that the latter may use the same for a certain time and

return it.

This prohibition shall not include:

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