{ Republic Act No. 6713. Code of Conduct and Ethical standards for Public Officials and Employees ch ptrhet he brewing ie ec so hittps/eww.tag-org.phiphillawlawd-RAG712.htm "hey. -ALis +o 5 amit fig genie Republic:of the Philippines. Congress of the Philippines: Second Regular Session’: >” Senate. No. 139) 1s House No. 12069 Aidts ‘te Witina gevmrvert de loray Si An act establishing'@ cada of conduct pndiethicakstandardsifor public officials ‘and employees, to upbolshthe time-hapored:principlalof public office being a ublic trust, granting incentives and rewards for exemplary service, enumerating Prohibited acts and transactions and providing penalties for violations thereof and for other purposes: irc aries and a iM i chiy Wi Be it enacted by the,Senate Congress assembled: ‘Section 1. Title. - This Act shall be known as the “Code of Conduct and Ethical standards for Public Officials and Employees.” Saeed or enaton of Policy. Its the policy of the State to promote a high standard of ethics in public service. Public officials and employees shall at all times be accountable to the people and shall discharge their duties with utmost responsibility, integrity, competence, and loyalty, act with patriotism and justice, lead modest lives, and uphold public interest over personal interest. : ' presentatives ofithe Philippines in erike and: House; of: ‘Sec. 3. Definition of Terms. - As used in this Act, the term: (a) “Government” includes the National goverment, the local governments, and all other instrumentalities, agencies or branches of the Republic of the Philippines including governmentOowned or controlled corporations and their subsidiaries. (b) “Public Officials” includes elective and appointive officials and employees, Permanent or temporary, whether in the career or non-career service, including military and police personnel, whether or not they receive compensation, regardless of amount.(©) “Gift refers to a thing or a right disposed of gratuitously, or any act of iiberalty, in favor of snother who accepts it, and shall include a simulated sale or an osteneibly onerous disposition thereof. it shall not include an unsolicited gift of nominal or insignificant value not given in anticipation of, or in exchange for, @ fevor from a public official or employee. (d) “Receiving any gift’ includes the act of accspting, directly or indirectly, a gift f1om a person other thar a memiber of his family or relative as defined in this Act, ‘even on the occasion of a family celebration or national festivity like Christmas, if ine value of the gift is neither nominal nor insignificant, or the gift is given in anticipation of, or in exchange for, a favor. (@) “Loan” covers both simple loan and commodatum as well as guarantees, financing arrangements. ot accommodations intended io ensure its approval. ‘f “Substantiat stockholder” means any parson who owns, directly or indirectly, shares of stock suffizient to elect a director of e corperation. This term shall also apply to the parties to a voting trust. (g) “Family of public officials or émployees” means their spouses and unmarried children under eighteen (48) years of a . ee ete Hisdhasy 1 a. ‘and juridical persons unlaseittie context indicates. th t + WMO MOU.D UF. ins alyyef ca escent icia! or employee is a member of a j i eo (“Conflict of interest” drises when'a public hoerd, an of 3 substantia! stockholder of a private corporation or owned of has a substantial interest in business, and the Interéiscof such corporation or business. or his rights cr duties therein; rméyba opposetito or atfectad by the faliaiul performance of official duty: cereal testy @) “Divestment” is the transfor of tle oF disposal of interest in property by voluntanly, completely and actually depriving or dispoasessing oneself of his right or tite (0 i in favor of a pe7éun or parsons other than his spouse and relatives 2s Gofined in this Act. "Relatives" refers to any-and ai persons relaigd to a public. oficial or employee within the fourth svi degree of consanguinity or affnit inchiding bias, inse and hatae: t baci to top * pe Sec. 4. Nonns of Conduct of Fublic Offictals and Eriptoyees: + it obsotve the following os standards of ecutton af official duties: (A) Every pidtic official pareonal conduct in thy(a) Commitment to public intereét. - Public officials and employees shall always « uphold the public interest over and above personal interest. All goverment Fesources and powers of their respective offices must be employed and used fficiently, effectively, honesty and economically, particularly to avoid wastage in public funds and revenues. (b) Professionalism. - Public officials and employees shall perform and discharge their duties with the highest deg) of excellence, professionalism, intelligence and skil. They shall enter publid service with utmost devotion and dedication to duty. They shall endeavor to discourage wrong perceptions of their roles as. dispensers or peddlers of undug patronage. (6) Justness and sincerity. -Putlic ofcials and employees shall remain tue to the people at all times. ‘They must act with justness and sincerity and shall not discriminate against anyone, especially the poor and the underprivileged. They shall at all times respect the rights of others, and shall refrain from doing acts contrary to law, good morals, gqod customs, public policy, public order, public safety and public interest. They shall not dispense or extend undue favors on ‘account of their office to their relatives whether by consanguinity or affinity except \ith respect to appointments.of such relatives to positions considered strictly Confidential or as members of their personal staff whose terms are coterminous with theirs. . (@) Political neutrality. - Public officials and employees shall provide service to everyone without unfair discrimination and regardless of party affliaton or preference. (@) Responsiveness to the publi. - Public officials and employees shall extend prompt, courteous, and adequate service to the public. Uniess otherwise provided by law or when required by the public interest, public officials and employees shall provide information on their policies and procedures in clear and understandable language, ensure openness of information, public consultations ~-and: arate Pale ee en CD ate, SnCorsoS sites igestions, simplify and systematize policy, rules and procedures, avoid red tape and develop an understanding and appreciation of the socioeconomic conditions prevailing in the country, especially in the depressed rural and urban areas. (f) Nationalism and patriotism. « Public officials and employees shall at all times be loyal to the Republic and to the Filipino People, promote the use of locally- Produced goods, resources and technology and encourage appreciation and ride of the country and people; They shall endeavor to maintain and defend Philippine sovereignty against foreign intrusion. (g) Commitment to democracy.'- Public officials and employees shall commit themselves to the democratic way of life and values, maintain the principle of Public accountability, and manifest by deeds the supremacy of civilian authoritySec. 6. System of Incentives. ard Rewards. - A system of annual incentives and rewards is hereby established.in order to motivate and: inspire public servants to Id the highest i . For. this purpose, a Committee on Awards to Outstanding Public Officials and Employees is hereby created composed of the following: Ombudsman and Chairman of the Commission on Audit, and two goverment employees to be appointed by the president, as members. {t shall be the task of this Committee to conduct a periodic, continuing review of the performance of public officials and. employees, in all the branches and agericies of Government and establish a system of annual incentives and Tewards to the end that due ition is given to public officials and employees of outstanding merit on the-basis of the standards set forth in this Act. The conferment of awards shall take into account, among other things, the following: the years of service ahd the quality and consistency of performance, the obscutiy of the position, the level af salary, the unique and exemplary quality of a certain achievement, and the risks of temptations inherent in the work. Incentives. and rewards to government officials and employees of the year to be announced! in public ceremonies honoring them may take the form of bonuses, Citations, directorships in government-owned or controlled corporations, local and foreign scholarship grants, paid vacations, and the like. They shall likewise be automatically promoted to the nisxt higher position with the commensurate salary Suitable to their qualifications. In} case there is no next higher position or it is not vacant, said position shall be ingluded in the budget of the office in the next General Appropriations Act. The Committee on Awards shall adopt its own rules to govern the conduct of its activties., ‘Sec. 7. Prohibited Acts and Transactions. - In addition to acts and omissions of Public officials and employees now prescribed in the Constitution and existing Jaws , the following shall constitute prohibited acts and transactions of any public official and employee3 and are hereby declared to be unlawful: (2) Financial and material interdst-~ Public officials anc employees shall not, directly and indirectly, have any financial or material interest in any transaction requiring the approval of their office. (©) Outside employment and other activities related thereto. - Public officials and employees during their incumbency shalll not: (1) Own, control, aoe, ‘accept employment as officer, employee, consultant, counsel, bro} 7 ag@nt, trustee or nominee in any private enterprise regulated, supervised or licensed by their office unless expressly allowed by law; (2) Engage in the private practiée of their profession unless authorized by the Constitution or law, provided that such practice will not conflict or tend to conflict with their official functions; or"(3) Recommend any person to, dny position in a private enterprise which has a regular or pending official transaction with their office. These prohibitions ‘shall continue to apply for a period of one (1) year after resignation, retirement, or separation from public office, except in the case of subparagraph (b) (2) above, but the professional concerned. ¢annot practice his profession in connection with any matter before the office he used to be with, in which case the one-year prohibition shall likewise apply. (©) Disclosure and/or misuse of bonfidential information. - Pyblic officials and ‘employees shall not use or divulge, confidential or classified information officially known to them by reason of their office and not made available to the public, either: (1)To further their private interests; or give-undue-advantage to-anyone; or -- (2) To prejudice the public interest. (q) Solicitation or acceptance of gifts. - Public officials and employees shall not solicit or accept, directly or indirectly, any gift, gratuity, favor, entertainment, loan or anything of monetary value frpm any person in the course of their official duties or in connection with any operation being regulated by, or any transaction which may be affected by the functions of their office. As to gifts or grants from foreign governments, the Congress consents to: ( The acceptance and retentioh by.a public official or employee of a gift of nominal value tendered and received as a souvenir or mark of courtesy; (ii) The acceptance by a public pffcial or employee of a gift in the nature of a scholarship or fellowship grant or medical treatment, or (i The acceptance by a public official or employee of travel grants or expenses for travel taking place entirely outside the Philippines (such as allowances, transportation, food, and lodging) of more than nominal value if such acceptance is appropriate or consistent with the interests of the Philippines, and permitted by the head of office, branch or agency to which he belongs. The Ombudsman shall prescribe such regulations as may be necessary to carry out the purpose of this subsection, including pertinent reporting and disclosure requirements. Nothing in this Act shall be condtrued to restrict or prohibit any educational, scientific or cultural exchange ‘subject to national security requirements.Sec. 8. Statements and Disclosure. - Public officials and employees have an obligation to accomplish and submit declarations under oath of, and the public has the right to know, their assets, liabilities, net worth and financial and business interest including those of their spouses and of unmarried children under eighteen (18) years of age living in their households. (A) Statement of Assets and Liabilities and Financial Disclosure. - All public Officials and employees, except those who serve in an honorary capacity, laborers and casual or temporary workers, shall file under oath their Statement of Assets, Liabilities and Net Worth and a Disclosure of Business Interests and Financial Connections and those of their spouses and unmarried children under eighteen (18) years of age living in their houséholds. The two documents shall contain information on the following: {@) real property, its improvements, acquisition costs, assessed value and current fair market value; - (b) persorial property and acquigition cost; (C) all other assets such-as investments, cash.on hand or in banks, stocks, bonds, and the like; (@) liabiliies; and (€) all business interests and financial connections. The documents must be filed: (@) within thirty (30) days after assumption of office; (©) 0n or before April 30 of every year thereafter; and _ (€) within thirty (30) days after separation from the service. All public officials and employes required under this section to file the aforestatod documents shall algo execute, win tiny too) dere ner the dat of thelr assumption of office, the necessary authority in favor of the Ombudsman te obtain from all appropriate goverment agencies, including the Bureau of Internal Revenue, such documents as tay show their assets, liabilties, net worth, and also their business interests and financial connections in previous years, including, if possible, the year when they first assumed any office in the ment. Husband and wife who are both public officials or employees may file the required statements jointly or separately.‘The Statements of Assets, Liabilities and Net Worth and the Disclosure of Business Interests and Financial Connections shall be filed by: (4) Constitutional and national plective officials, with the national office of the Ombudsman; (2) Senators and Congressmen, with the Secretaries of the Senate and the House of Representatives, ively; Justices, with the Clerk of Court of the ‘Supreme Court; Judges, with the court Administrator; and a) national executive officials with the office of the President; (3) Regional and local officials-gnd employees, with the Deputy Ombudsman in their respective regions; js (4) Officers of the armed forces from the rank of colonel or naval captain, with the Office of the President, and those below said ranks, with the Deputy Ombudsman in their respective regions; and (6) All other public officials and employees, defined in Republic Act No. 3019, as amended, with the civil Service Commission. (B) Identification and disclosure|of relatives. - It shall be the duty of every public official or employee to identify and disclose, to the best of his knowledge and information, his relatives in the Government in the form, manner and frequency prescribed by the Civil Service Commission. (C) Accessibility of the documents. (1) Any and all statements filed under this Act shall be made availatile for inspection at reasonable hours. (2) Such statements shall be made available for copying or reproduction after ten (100 working days from the time they are filed as required by law. (3) Any statement filed under this Act shall ba 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. (D) Prohibited acts. - It shall be unlawful for any person to obtain or use any statement filed under this Act for: (@) any purpose contrary to mofals or public policy; or (b) any commercial purpose ottier than by news and communications media for dissemination to the general public.back to top Sec 9. Divestment..- A public official or employee shall avoid conflicts of interest at all times. When a confit of interest arises, he shall resign from his position in any private business enterprise within thirty (30) days from his assumption of office andior divest himself of his shareholdings or interest within sixty, (60) days. from such assumption. Z The same rule shall apply where the Public official or employee is a pariner ina partnership. ‘The requirement of divestment shall not apply to those who serve the Government in an honorary capacity nor to laborers and casual or temporary workers. ‘Sec. 10. Review and Compliarice Procedure. (2) The designated Committees of both Houses of the Congress shall establish procedures for the review of statements to determine whether sald statements ave been submitted on time are complete and are in proper form. In the event a determination is made that a lent is not so filed, the appropriate Committee shall so inform the reporting individual and direct him to take the necessary corrective action. (®) In order to carry out their. responsibilities under this Act, the designated : Committees of both Houses of eongress shall have the power, within their respective jurisdictions, to rendér any opinion interpreting this Act, in writing, to beat Persons, Covered by this Act, subject in each instance to the approval by affirmative vote of the majority of the particular House concemed. pinion 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 hot be subject to any sanction Provided in this Act. ‘The individuai to whom an oj (©) The heads of other offices shall perform the dutles stated in subsections @) (©) hereof insofar as thelr respective offices are concemed, subject to the approval of the Secretary of Justice, in the case of the Executive Department and the Chief Justice of the Supreml Court, in the case of the Judicial Department, Sec. 11. Penalties.(a) Any public official or employge, regardless of whether or not he holds office or ‘employment in a casual, temporary, holdover, permanent or regular capacity, committing any violation of this Act shall be punished with & fine not exceeding one (1) year, or removal depending on the gravity of the offense after due notice and hearing by the appropriate body of agency. If the violation is punishable by a heavier penalty under another law, he shall be prosecuted under the latter statute. Violations of Sections 7, 8, of 9 of this Act shall be punishable with imprisonment not exceeding five (5) years, or a fine not exceeding Five thousand pesos (PS, 000.00), or both, and, in the discretion of the court of competent jurisdiction, disqualification to hold public office. . (b) Any violation hereof proven in a proper administrative proceeding shall be sufficient cause for removal or dismissal of a public official or employee, even if no.criminal prosecution is ingtityted against him. (0) Private individuals who participate in conspiracy as co-principals, accomplices or accessories, with public officials or employees, in violation of this Act, shall be ‘subject to the same penal liabilities as the public officials or employees and shall be tried jointly with them. (€) The official or employee contemed may bring an action against any person who obtains or uses a report for any purpose prohibited by Section 8 (D) of this ‘Act. The court in which such action is brought may assess against such person a penalty in any amount not to exceed Twenty-five thousand pesos (P25, 000.00). If another sanction hereunder of under any other law is heavier, the latter shall apply. Sec. 12, Promulgation of Rules and Regulations, Administration and. Enforcement of this Act. - The Civil Service Commission shall have primary responsibility for the administration and enforcement of this Act. It shall transmit all cases for prosecution arising from violations of this Act to the proper authorities for appropriate action: Provided, however, That it may stitute such administrative actions and disciplinary measures as may be warranted in accordance with law. Nothing in this provision shall be construed as a deprivation of the right of each House of Congress to discipline its Members for disorderly behavior. The Civil Service Commission is hereby authorized to pr tules and regulations necessary to carry out the provisions of this Act, ing guidelines for individuals who render free voluntary service to the Govermment. The Ombudsman shall likewise take steps to protect citizens who dgnounce acts, or omissions of public officials and employees which are in violation of this Act. Sec. 13. Provisions for More Stringent Standards. - Nothing in this Act shall be constructed to derogate from any law, or any regulation prescribed by any body or agency, which provides for miore stringent standards for its officials and emy .Sec. 14. Appropriations. - The sum necessary for the effective implementation of this Act shall be taken from the appropriations of the Civil Service Commission. ‘Thereafter, such as may be needed for its continued implementation shall be included in the annual General Appropriations Act. Sec. 15. Separability Clause, - If any provision of this Act or the application ‘of such provision of this Act or the application of such provision to any person or circumstance is declared invalid, the remainder of the Act or the application of ‘such provision to other persons or circumstances shalll not be affected by such declaration. - ‘Sec. 16. Repealing Clause. All laws, decrees and orders or parts thereof inconsistent herewith, are deemed repealed or modified accordingly, unless the ‘same provide for a heavier penalty. Sec. 17. Effectivity. - This Act shall take effect after thirty (30) days following the completion of its publication in the Official Gazette or in two (2) national newspapers of general.circulation. Approved, February 20, 1989 back to top Rules implementing the Codp of Conduct and Ethical Standards for Public Officials and Employees Pursuant to the provisions of Section 12 of Republic Act No. 6713, otherwise 14 known as the “Code of Conduct and Ethical Standards for Public Officials and u Employees”, approved Dn February 20, 1989, and which took effect on March 28, 1980, conformably to Section 17 thereof, the following Rules are hereby adopted In order to carry out thé provisions of the sald Code: Rule! 2 : — a Coverage ‘Section 1. These-Rules shall cover all officials and employees in the govern elective and appointive, permarjent or temporary, whethey in ihe corceror ple Posen anice, including military and police personnel, whether or not they Feceive compensation, regardless of amount. Rule tt InterpretationSection 1. These Rules shall be interpreted in the light of the Declaration of Policy found in Section 2 of the Code: “itis the policy of the State to promote a high standard of ethics in public service. Public officials and employees shall at all times be accountable to the people and shall discharge their duties with utmost responsibility, integrity, competence and loyalty, act with patriotism and justice, lead modest lives, and uphold public interest over personal interest.” . Rule tit Reforms o1 Section 4. Every department, office and agency shall, as soon as practicable and in no case later than ninety (90) days from the effectivity of these rutes, start conducting value development programs for its officials and employees in order to strengthen their commitment to public service and help promote the primacy of public interest over personal interest in the performance of their duties. Such programs and other parallel efforts on value development shall include, among other things, the following subjects: (a) Ethical and moral vaiues; (b) Rights, duties and responsibilities of public servants (c) Nationalism and patriotism; (d) Justice and human rights; (e) Democracy in a free and just society; (® Philippine history. Culture and tradition; and (g) Socio-economic conditions prevailing in the country, especially in the depressed areas, and the need for a code of Conduct and Ethical Standards. Continuing refresher courses and seminars and/or workshops to promote a high standard of ethics in public service shall be conducted. Section 2. Professional, scientific, technical trainings and education programs shall enhance to the highest degree, professionalism, excellence, intelligence and skills in the performance and discharge of duties and responsibilities of Officials and employees. These programs shall be conducted in ail offices of the govemment and may include subjects that are enumerated in the preceding section. Section 3. Itis the responsibility of every head of department, office and agency to ensure that officials and emp} attend the value development program and participate in parallel value development efforts. 12 clSection 4. Every department, office and agency shall conduct continuing studies and analyses of their work systems and procedures to improve delivery of public services. Towards this end, such studies and analyses shall: (1) identify systems and procedures that lead or contribute to negative, bureaucratic behavior, (2) simplify rules and procedures to avoid red tape; and (3) devise or adopt systems and procedures that promote official and employee morale and satisfaction. Each department, office or agency shall develop a service guide or its functional equivalerit which shall be regularly updated and made available to the transacting public. A workflow chart showing procedures or flow of documents shall likewise be posted in conspicuous places in the department, office or agency for the information and guidance of all concerned. Upon request, the Department of Budget and Management shail assists departments, offices and agencies in the evaluation and adoption of work ‘systems and procedures that will institutionalize a Harncaiiall climate conducive to public accountability. ‘Section 6. Every department, office and agency shall consult the public they serve for-the purpose of gathering feedback and suggestions on the efficiency, effectiveness and economy of services. They shall establish mechanisms to ensure the conduct of public consultations and hearings. ‘Section 6. Every department, office and agency shall continuously conduct research and experimentation dn measures and adopt innovative programs which will provide motivation to officials and employees in raising the level of observance of public service ethical standards. Section 7. every department, office and agency shall, appoint or designate a resident Ombudsman, who shall act immediately on all request for public assistance referred to him by the Ombudsman and his Deputies. He shall be held accountable | for | or the disposition n of all requests for. assistance. Section 8. Goverment officials shall make themselves available to their staff for consultations and dialogues. back totop —. Rule IV ‘Transparency of Transactions and Access to Information ‘Section 4. Subject to reasonable conditions prescribed by law, the State adopts and implements a policy of fall pu ublic disclosure of ail its transacti oan Pi ions involvingSection 2. itis the responsibility of heads of departments, offices and agencies to establish measures and standards that will ensure transparency of and ‘openness in public transactions in their respective offices, such as biddings, purchases, other internal transa¢tions, including contracts, status of projects, and all other matters involving publid interest. ‘They shalll establish information systems that will inform the public of the following: (a) policies, rules, and procedures; (b) work programs, projects, and performance targets; (c) performance reports; and (d) all other documents as Tay hereafter be classified as public information. ‘Such information shall be utilized solely for the purpose of informing the public of such policies, programs and a lishment, and not to build the public image of any Official'6r employee" rhis-own- personal interest. --—— Section 3. Every department, office or agency shall provide official information, records or documents to any requesting public, except if: (@) such information, record or document must be kept secret in the interest of ational defense or security or the conduct of foreign affairs. (b) such disclosure would put the life.and safety of an individual in imminent danger, (©) the information, record or dotument sought falls within the concepts of established privilege or recognized exceptions as may be provided by law or settled policy or jurisprudence; (d) such information, record or document compromises drafts or décisions, orders, rulings, policy, decisions, memoranda, etc; (@) it would disclose information| of a personal nature where disclosure would constitute a clearly unwarranted invasion of personal privacy; (fit would disclose investigatory records complied for law enforcement , oF information which if written would be contained in such records or information would (|) interfere with enforcement proceedings, (i) deprive a person of a right to a fair trial of an impartial adjudication, (ii) disclose the identity of a confidential source and, in the case of a record compiled by a criminal law enforcement authority in the course of a criminal investigation, or by an agency conducting a lawful national si intelligence investigation, confidential information furnished only by the confidential source, or (iv) unjustifiably disclose investigative techniques and procedures; or lu c=.c (= (g) it would disclose information the premature disclosure of which would (1) in the case of a department, office or agency which agency regulates currencies, ‘securities, commodities, of financial institutions, be likely t6 lead to significant financial speculation in cure! , Securities, or commodities or significantly endanger the stability of any ial institution, or (ii) in the case of any department, office or agency be: likely or significantly to frustrate implementation Of a proposed official action, except that subparagraph (f) (i) shall not apply in any instance where the department, office or agency has already disclosed to the public the content or nature of its proposed action, or where the department, office or agency is required by law to make such disclosure on its own initiative prior to taking final official action on such proposal. ‘Section 4. Every head of department, office and agency shall establish Information systems and networks that will effect the widest possible dissemination of information regarding the. provisions of the Code, and the Policies and programs relative thereto. back to top Rule V Incentive and Rewards System Section 1. Incentives and rewards shall be granted officials and employees who have demonstrated exemplary gervice and conduct on the basis of their ‘observance of the norms of conduct laid down in Section 4 of the Code namely: (a) Commitment to public interest - Officials and employees shall always uphold the public interest over personal interest. All goverment resources and powers and | of their tive departments, offices and agencies must be employed and used efficiently, effectively, honestly and economically, particularly to avoid wastage in public funds and revenues. (b) Professionalism - Officials and employees shall perform and discharge their duties with the highest degree of excellence, professionalism, Intelligence and skill, They shall enter public service with utmost devotion and dedication to duty. They shall endeavor to discourage wrong perceptions of their roles as dispensers or peddlers of undue patronage. (©) Justness and sincerity - Officials and employees shall remain true to the people at all times. They must act with justness and sincerity and shall not discriminate against anyone, especially the poor and the underprivileged. They shall refrain from doing acts contrary to law, good morals, good customs, public Policy, public order, public safety and public interest. They shall not dispense or 1sextend undue favors on account of their office to their relatives, whether by consanguinity or affinity, except with respect to appointments of such relatives to positions considered strictly confidential or as members of their personal staff whose terms are coterminous with theirs. (@) Political neutrality - Officials and employees shall provide service to everyone without unfair discrimination regardless of party affiliation or preference. (e) Responsiveness to the publi¢ - Officials and employees shall extend prompt, courteous, and adequate service to the public. Unless otherwise provided by law ‘or when required by the public interest, officials and employees shall provide information on their policies-and procedures in clear and understandable language, ensure openness of iif jon, ‘public consultations and hearings courage fs; simplify and'systematize policy, appreciation of the socio-economic conditions prevailing in the country, especially in the depressed rural and urban areas. (f Nationalism and patriotism - Officials and employees shall at all times be loyal to the Republic and to the Filipino people, promote the use of locally produced goods, resources and technology and encourage appreciation and pride:of country and people. They shall endeavor to maintain and defend Philippine sovereignty against foreign intrusion. (g) Commitment to democracy - Officials and employees shall commit themselves to the democratic way of life and values, maintain the ptinciple of public accountability and manifest by deeds the supremacy of civilian authority ‘over the military. They shall at all times uphold the Constitution and put loyalty to country above loyalty to persons or party. (h) Simple living - Officials and employees and their families shall lead modest lives appropriate to their positions and income. They shall not indulge in extravagant or ostentatious display of wealth in any form. Section 2. The following criteria shall be considered in the conferment of awards: (a) Years of service; (b) Quality and consistency of performance; (c) Obscurity of the position; (@) Level of salary; (e) Unique and exemplary quality of achievement; (f Risk or temptation inherent in the work, and (Q) Any similar circumstances or considerations in favor of the particular awar cc (aSection 3. Incentives and rewards to government officials and employees of the year may take the form of any of the following, as may be determined by the Committee on Awards established under the Code: (@) Bonuses; or (0) Citations; or (c) Directorships in governmer or controlled corporations; or (d) Local and foreign scholarship grants; or (@) Paid vacations; and (f) Automatic promotion to the next higher position suitable to his qualifications and with commensurate salary; provided, that if there is no next higher position or itis not vacant, said position shall be included in the next budget of the office; except when the creation of a new position will result in distortion in the organizational ‘structure of the department, office or agency. Where there is no Next higher position immediately available, a salary increase equivalent to the next higher position shall be given and incorporated in the base pay. When a new position is created, that. is vacated shall be deemed abolished. ‘The grants of awards shall be govemed by the merit and fitness principle. ‘Section 4. (a) The system shall be administered by a Committee on Awards for Outstanding Public Officials and Employees composed of: (1) Ombudsman Co-Chairman 2) Chairman CSC Co-Chairman (8) Chairman COA Member (4) Two (2) Goveriment Memb¢rs Employees to be Appointed By the President (®) For this purpose, the Committee shall Perform the following furictions and responsibities: S a (1) Conduct a periodic, continuing review of performance of officials and ‘employees in all department, offices and agencies; (2) Establish a system of annual incentives and rewards to the end that due recognition is given to officials #nd employees of outstanding merit on the basis of standards set forth in Section 2, Rule V hereof; (3) Determine the form of rewards to be granted; (4) Formulate and adopt its own rules to govem the conduct of its activities, which shall include guidelines for evaluating nominees, the mechanism for recognizing the awardees in public ceremonies and the creation of sub- committees;In the evaluation of nominees, te Committee may be assisted by technical experts selected from the goverment and the private sectors. Section 5.The Civil Service Commission shall provide secretariat services to the Committee. Section 6. Nothing herein provided shall inhibit any department, office or agency from instituting its own rewards program in addition to those provided by, but not inconsistent with these Rules. . Section 7. The budget to cover all expenses in the implementation of this Rule shall be incorporated in the appropriation of the Civil Service Commission. Hotes" Rule VI Duties of Public Officials and Employees: Section 1. As a general rule, wiién a request or petition, whether written or verbal, can be disposed of promptly and expeditiously the official and employee in charge to whom the same is presented shall do so immediately, without discrimination, and in no case fifteen (15) working days from receipt of the request or petition. : Section 2. In departments, offices or agencies that are usually swamped with persons calling for a particular type of service, the head of the department, office or agency shall devise a mechanism so as to avoid long queues, such as by ving each person afcket number duly countersigned which shell spect the time and the date when the pergon, whose name and address shall be indicated, can be served without delay. Sajd person shall have the right to prompt service upon presentation of said ticket r. ‘Section 3. In case of written , petitions or motions, sent by means of letters, telegrams, or the like, the official or employee in charge shall act on the ‘same within fifteen (15) working days from receipt thereof, provided that: (b) If the communication is within the jurisdiction of the office or agency, the official and employee must: (1) Write a note or letter of acknowledgement where the matter id merely Toutinary or the action desired may be acted upon in the ordinary course of business of the department, office or agency, specifying the date when the matter will be disposed of and the name of the official or employee in charge thereof.(2) Where the matter is non-routinary or the issues involved are not simple or ordinary, write a note or letter of acknowledgement, informing the interested party, petitioner or correspondent of the action to be taken or when such Tequests, petitions or motions can be acted upon. Where there is a need to. ‘submit additional information, requirements, or documents, the note or letter of acknowledgement shail so state, specifying a reasonable period of time within which they should be submitted, and the name of the particular official or employee in charge thereof. When all the documents or requirements have been submitted to the satisfaction of the department or office or agency concemed, the articular official or employee in charge shall inform the interested party, Petitioner, or correspondent of tHe action to be taken and when such action or disposition can be expected, ‘barring unforeseen circumstances. (©) If communication is outside its jurisdiction, the official or employee must: (1) Refer the letter, petition, telegram, or verbal request to the proper department, _ office or agency. i (2) Ackngwiedge the. rm, cnr Means of a note or letter, informing the of; Interested party, petitioner, corr¢spondent of the action taken and attaching a copy of the letter of the letier to the proper department; office or agency. The department, office-or.agency to which the letter, petition, telegram or verbal Tequest was referted for appropriate action must take action in accordance with subsection (a), pars. 1 and 2 hereof. The period of fifteen (15) days herein provided shall be counted from the date of receipt of the written or ‘communication by the department, office or agency concemed. ‘Section 4, All official papers and documents must be processed and completed within a reasonable ume from thie preperation tersof. Reasonable time shall be determined in accordance with the following rules: (b) When the law or the applicable rule issued in accordance therewith prescribes a period within which a decision is to be rendered or an action taken, the same shall bé followed; (c) When the law or the applicable rule issued in accordance therewith does not prescribe a period, the head of department, office or agency shall issue rules and regulations prescribing, among other things, what is reasonable time, taking into account the following factors: (1) Nature, simplicity or complexity of the subject matter of the official papers of documents processed by said department, office or agency.(2) Completeness or inadequacy of requirements or of data and information necessary for decision or action; (3) Lack of resources caused by circumstances beyond the control of the department, office or agency or official or employee concemed; (4) Legal constraints such as restraining orders and injunctions issued by proper Judicial, quasi-judicial or administrative authorities; (6) Fault, failure or negligence of the party concerned which renders decision or action not possible or premature| and (©) Fortuito Section 5. Except as otherwise provided by law or regulation, and as far as practicable, any written action ar decision must contain not more than three (3) initials or signatures. In the absence of the duly authorized signatory, the official next-in-rank or officer-in-charge or the person duly authorized shall sign for and inhis behalf. The head of department, office or agency shall prescribe, through and appropriate office order, the rules on the proper authority to sign in the absence of the regular signatory, as follows: (1) If there is only one official next in rank, he shall automatically be the signatory; (2) If there are-two ore more officials next in rank, the appropriate office order shall prescribe the order of priority among the officials next in rank within the same organizational unit; or (@) Ifthere is no official next in rank present and available, the head of department, office or agency shall designate an officer-in-charge from among those next lower in rank in the same organizational unit. ‘Section 6. All public documents must be made accessible to, and readily available for inspection by, the public during working hours, except those provided in Section 3. Rule IV. Section 7. All heads or other responsible officers of departments, offices or ‘agencies of the goveriment and of government-owned or controlled corporations shall, within forty five (45) working days from the end of the year, render a full and complete report of performance and accomplishments, as prescribed by existing laws and regulations. =ec Another report of compliance with the provisions of the Code and these Rules Shall be prepared and submitted to the Civil Service Commission. The Commission may require officials to provide additional information or furnish documents, if necessary... Section 8. Officials and employees and their families shall lead modest and simple lives appropriate to their positions and income. They shall not indulge in extravagant or ostentatious display of wealth in any form. Basically, modest and simple living means maintaining a standard of living within the public official and employee|s visible means of income as correctly disclosed in his income tax retums; annual statement of assets, liablities and net worth and other documents relating. to financial and business interests and connections. Public funds and proper for official use and purpose shall be utilized with the diligence of a good father ofa family... = a back to top Rule Vil Public Disclosure Section 1. Every official and employee, except those who serve in an official honorary capacity, without service credit or pay, temporary laborers and casual oF temporary or contractual workers, shall file under oath their statement of assets, liabilities and net worth and a disclosure of business interests and financial connections including those of their spouses and unmarried children under eighteen (18) years of agp living in their households, in the prescribed form, Annex A, (©) Contents of Statement cate (1) The Statement of Assets and Liabilities and Net Worth shall contain Information on the following: (2) real property, its improvemehits, acquisition costs, assessed value, and current fair market value; (®) personal property and acquipition costs; (c) all other assets such as investments, cash on hand or in banks, stocks, bonds, and the like; and (@) all financial liabilities and long-term. 2(2) The Disclosure of Business Interests and Financial Connections shall contain information on any existing interests in, or any existing connections with, any business enterprises or entities, whether as proprietor, investor, promoter partner, shareholder, officer; managing director, executive, creditor, lawyer, legal consultant, accountant, auditor] and the like, the names and addresses of the business enterprises or entities; the dates when such interests or connections U were established, and such other details as will show the nature of the interests or connections. (c) When to File ‘The above documents under the’Code must be filed: (1) within thirty (30) days after assumption of office; statements of which must be reckoned as of his first day of service; (2) on or before April 30 of year thereafter, statements of which must be Teckoned as of the end of the preceding year, or (3) within thirty (30) days after separation from the service, statements of which must be reckoned as of his last day of office. (@) Where to File ‘The Statement of Assets and Liabilities and Net Worth and the Disclosure of Business Interests and Financial Connections shalll be filed by the: (1) President, Vice-President and Constitution al Officials, with the National i Office of the Ombudsman; it (2) Senators and Congressmen, with the Secretaries of the Senate and the | House of Representatives, respectively; Justices, with the Clerk of Court of the | UJ Supreme Court; Judges, with the Court Administrator, and national executive officials such as Members of the Cabinet, Undersecretaries and Assistant Secretaries, including the foreign service and heads of govemment-owned or controlled corporations with original charters and their subsidiaries and state colleges and universities, with the Office of the President. (8) Regional and local officials énd employees, both appointive and elective, including other officials and employees of government-owned or controlled corporations and their subsidiaries and state colleges and universities, with the Deputy Ombudsman in their respective regions; the Office of the President, and those below said ranks, with the Deputy (4) Officers of the Armed Forces from the rank of Colonel or Naval Captain, with i Ombudsman in their respective regions; andc (S) All other officials and-employees defined in Republic Act No. 3019, as amended, with the Civil Service Commission. A copy of said statements shall also be filed with their respective departments, Offices or agencies. (6) All Statement of Assets and|Liabilties and Net Worth, as of December 31, 1988, now on file with their respective agencies shall constitute sufficient compliance with the requirem: Of the Code and they shall ’be ir gccomplish and file the new form as prescribed in these Rules on or before Apri 30, 1990, and every year thereafter. (¢) Every official and employee shall also execute, within thirty (30) days from the Gate of their assumption of office, the necessary authority in favor of the Pmbudsman to obtain, from all fhe appropriate govemment agencies, including the Bureau of Intemal Revenue; such documents as may show their assets, liabilities, net worth, and also their business interests, and financial connections in previous years, including, if pbssible, the year when they first assumed any office in the government. (OMarrieq couples who-dre both pubic officials and employees may fle the required statements jointly or separately, Section 2. Every official or employee shall identify and disclose under oath to the Dest of his knowledge and information, his relatives in the government, up to the fourth civil degree of relationship, either of consanguinity or affinity, including ' within thirty (30) days: after assumption of office, the information contained therein must be reckoned as of is first day of office; (b) on or before April 30 of every year thereafter, the information contained therein must be reckoned as of the end of the preceding year, or (c) within thirty (30) days after separation from the service, the information contained therein must be Of office... -- ee a mgs Section 3. (a) Any and all statements filed in accordance with the preceding Sections shall be made available for public inspection at reasonable hours; (b) Such statemerits shall be made available for public inspection at reasonable hours; 23(qd) Any statement filed under the Code shall be available to the public, subject to the foregoing limitations, for-a period of ten (10) years after receipt of the statement. The statement may be destroyed after such period unless needed in ‘an ongoing investigation. back to top : LI Rule Vill Review and Compliance Procedures ‘Section 1. The following shall have the authority-to-establish compliance procedures for the review of statements to determine whether said statements have been property accompiistedt = ———— ance nem ne (@) In the case of Congress, the designated committees of both Houses of ‘Congress subject to approval by the affirmative vote of the majority of the particular House concemed; I (b) In the case ef the Executive Department, the heads of departments, offices U and agencies insofar as their respective departments, offices and agencies are concerned subject to approval of the Secretary of Justice. (0) In the case of the Judicial Department, the Chief Justice of the Supreme ‘Court; and (@) In the case of the Constitution al Commissions and other Constitutional Offices, the respective Chairman and members thereof; in the case of the Office of the Ombudsman, the Ombudsman: The above officials shall likewise have the authority to render any opinion interpreting the provisions on the review and compliance procedures 'in the filing of statements of assets, llabilities, net worth and disclosure information, In the event said authorities detbrminé that a statement is not property 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 ina 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.ce 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 offiter of the corporation; or: (d) an owner or has substantial interest in'a business; or (@) 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 thie faithful performance of official duty. (©) 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 ust. (@) 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 confit of interest arises, the official or employee involved shall resign from his position in ny private business enterprise within thirty (30) days from his assumption of office and/or divest himself of his share-holdings or interests within sixty (60) days ftom such assumption. For those who are already in the service, and conflitt of interest arises, the officer or employee must resign from his position in the private business enterprise and/or divest himself of his shiaféhioldings or interests within the periods herein-above provided, reckoned from the date when the conflict of interest had arisen. The same rulo 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 whp serve the goverment in an honorary capacity or to laborers and casual or temporary workers. 25back to top 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, dectared unlawful or prohibited by the Code, shall constitute grounds for administrative disciplinary action, and without prejudice to criminal and civil liabilities provided herein; such (@) Directly oF wiairectty Haviftg fnanctat anc materiat 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, (Engaging in the private practice of his profession unless authorized by the Constitution, law or regulation, 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 Tegular or pending official transaction with his office, unless such recommendation or referral is mandated by (1) law, or (2) Intemational 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 concemed cannot practice his profession in connection with arly 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 26= impropriety of the foregoing shall be determined by its valu kinship or transaction which may be gente ans functions of, his office. The propriety or relationship between giver. and 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 aiid commodatum as well as guarantees, financing ‘arrangement or accommodations intended to ensure its approval. Commodatum refers to'a contract whereby one of thé parties defivers 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: (1) Unsolicited gift of nominal ar insignificant value not given in. anticipation of, or {in exchahge for, a favor from a public official or employee or given after the transaction is completed, or seryice is rendered. As to what is a gift of nominal value will depend on the inces of each case taking into account the salary of the official or frequency or infrequency of the giving, the expectation of benefits, and: imilar factors. (2) A gift from a member of his family or relative as defined in the Code on the occasion of a famil benefit. ly celebration, and without any expectation of pecuniary gain or (3) Nominal donations from persons with no regular, pending, or expected transactions with the department, office or agency with which the official or employee is connected, and without any expectation of pecuniary gain or benefit. (4) Donations coming from private organizations whether local or foreign, which are considered and and accepted as humanitarian and altruistic in purpose and mission, (6) Donations coming from goverment to government entities. As to gift or grants: from foreign goverments, the Congress consents to: () The acceptance and retention by public official or employee of a gift of nominal value tendered and received as a souvenir or mark of courtesy; 27(ii) The acceptance and retention by public official or employee of gift in the nature of a scholarship or fellowship grant or medical treatment; or (il) The acceptance by a public official or employee of travel grant or expenses: for travel taking place entirely outside the Philippines (such as allowances, transportation, food and lodging) of more than nominal value if such acceptance is appropriate or consistent with the interests of the Philippines, and permitted by the head of office, branch, or agency to which he belongs. Nothing in the Code shall be construed to restrict or prohibit any educational, scientific or cultural exchange programs subject to national security requirements. won (g) Obtaining or using any ment filed under the Code for any purpose contrary to morals or public policy or any commercial purpose other than by news and communications media for dissemination to the general public; (h) Unfair discrimination in rendering public service due to party affiliation or preference; () Disloyalty to the Republic of the Philippines and to the Filipino people; () Failure to act promptty on letters and request within fifteen (15) days from receipt, except as otherwise provided in these Rules; (k) Failure to process documents and complete action on documents and papers within a.reasonable time from tion thereof, except as otherwise provided in these Rules; ()) Failure to attend to anyone who wants to avail himself of the services of the office, or to act promptly and expeditiously on public personal transactions; (m) Failure to file sworn statements of assets, liabilities and net worth and disclosure of business interests/and financial connections; and (n) Failure to resign from his position in the private business enterprise within thirty (30) days from assumption of public office when conflict of interest arises, and/or failure to divest himself of his shareholdings or interests in private business enterprise within sixty (60) days from such assumption of public office when conflict of interest arises, the official or employee must either resign or divest himself of said interests within the periods herein-above provided, reckoned from the date when the conflict of interest had arisen. back to top 28Rule Xi Penalties Section 1. Any official or emiployee regardless of whether or not he holds office of employment in casual, temporary, holdover, permanent or regular capacity, committing any violation of the Code shall be punished with a fine not exceeding {the equivalent of six months (6) salary or suspension not exceeding one (1) year, or removal depending.on the gravity of the offense after due notice and hearing by the appropriate body or agenty. ifthe violation is punishable by a heavier penalty under another law, he shall be prosecuted under the latter statute. Miolations of Section 7.:8, or 9 of the Code shall be punishable with imprisonment not exceeding five (6) years,-or @ fine not exceeding five thousand pesos (P5,000.00) or both, and in the daccion of the court of competent jurisdiction, disqualification to hold public office. Any Violation hereof proven in a proper administrative, proceeding shall be Sufficient cause for removal or dismissal of an official or employee, even if no criminal prosecution is instituted against him. Private individuals who participate in conspiracy as co-principals, accomplices or accessories, with officials or crploraee, in violation of the Code, shall be ‘subject te the same penal liabilities as the officials or employees and shall be tried jointly with them. The official or employee concemed may bring an action against any person who or uses a report for any purpose prohibited by Section 8 (d) of the Code. ‘The Court in which such action is brought may assess against such person a penalty in any amount not to exceed twenty five thousand pesos (P25, 000.00). another sanction hereunder or under any other law is heavier, the latter shall apply. Section 2., Sn Or res OCECINGS Tr lator oF these Rules shail be in ‘accordance with Civil Service Law and Rules, back to top Rule Xi . Free Voluntary Service Section 1. (a) Free voluntary service refers to services rendered by persons who are in government without pay gr compensation. 29(b) The requirements of free voluntary service are as follows: (1) Issuance of an appropriate document; (2)Fitness and suitably for the duties and responsibilities of the particular position; and (3) Compliance with rule on nepotism (c) The following are the functions or services that volunteers can perform: (1) Advisory (2) Consultancy or counseling (3) Recommendatory; (4) Professional Services; (6) Staff work such as planning or research; or (6) Humanitarian. (d) Those who render free voluntary service to the govemment are covered by the following: (1) Laws on rewards and incentives; (2) Norms of conduct and ethical standards; (3) Duties and obligations of public officers and employees; (4) Prohibitions and sanctions enumerated in these Rules; and (6) Civil and criminal liability. (€) Those who render free voluntary service are, however, liabilities and net worth and financial disclosures, the requirement on divestment and the appropriate eligibility requirement, for their designations, and shall not enjoy ‘security of tenure. 30 (==Unless otherwise provided in thé terms of their: designations, volunteers are Prohibited from: (1) Exercising supervisory functions over personnel; (2) Exercising functions of Position involving national security; (3) Having access to Confidential or classified Information unless authorized by Proper authorities; (5) Having such services credited as government service and availing themselves of retirement benefits; (6) Using factities and resources of the office for Partisan political purposes; and ~ (2) Recelving any pecuniary benefits such as honoraria, allowances and other erquisites of office. Rule Xilt Amendment Section 1. The Civil Service Commission may amend or modify these Rules as may be necessary. Rule XIV Effectivity Section 1. These Rules shail take effect thirty (30) days following the ‘completion of their publication inthe Off Gazette or in a newspaper of, general circulation. 31Code of Ethics and Responsibilities REAL ESTATE SERVICE ACT/IRR PROVISIONS ON THE CODE OF ETHICS AND RESPONSIBILITIES. ‘SEC. 5, Powers and Functions of the Board, ~ The Board is hereby vested the following powers and functions: XXXXXK F. Adopt a natignal Code of Ethics and Responsibilities to be strictly observed y all licensed real estate service practitioners, XXXXXX SEC. 36. Code of Ethics and Responsibilities for Real Estate Service Practitioners. — ‘The Board shall adopt and promulgate the Code of Ethics and Responsibilities for real estate service practitioners which shall be prescribed and issued by the accredited and integrated professional organization of real estate service practitioners. [ Secs. 6f and 36, also of IRR of RESA ]NATIONAL CODE OF ETHICS FOR THE REALTY SERVICE PRACTICE Ul INTRODUCTION practitioners and the people they serve. It is, therefore, imperative and necessary to adopt this NATIONAL CODE OF ETHICS for REALTY SERVICE PRACTICE to govem the role of conduct of those who will engage therein, ! ARTICLE. DECLARATION OF PRINCIPLES SECTION 1 - The Realty Service Practice is a noble profession, calling or occupation and those engaged therein shall abide by and comply with all the laws, decrees, orders and rules and regulations enacted or promulgated ty duly constituted government authorities. . SECTION 2 - Utmost fidblity, sincerity, respect for colleagues in the profession, and honesty shall be observed at all times by those in the realty service practice in their relation with the lient, the community and the nation in general. SECTION 3 - Adequate knowledge, competence and expertise in real estate development ‘and management shall be. maintained; and. the upgrading of the standards of practice shall be effected when the need arises; all these for, and in the interest of the social and economic progress: of the country. SECTION 4 - The spirit of camaraderie, cooperation and professional relationship by respecting the rights of other ‘shall be promoted; and every organization to which they shall be encouraged to join shall have such aims and purposes as will set up, upgrade, and maintain 4 high level of integrity, honesty and competence in the profession for the best interest of the community and the nation, SECTION 5 - A high level of professional and respect relationship with colleagues in the ‘Service Practice shall be maintained, and their dealings with each other shall always be fair, _ honest and just, _ — ae 1 u ‘amended by Act No. 3716 and 3889 and Ministry Order No. 39, Series of 1985 as real estate ‘salesman, broker, appraiser or corisultant and such other practitioners as the Directors of the Deparment of Trade and Industry may now or hereafter license pursuant to any law, rule or egulation that may be promulgated by the goverment. They shall be called Realty’ Service toners. .ARTICLE Ill. RULES OF CONDUCT AND PRACTICE ‘The practitioners shall be governed by the following rules of conduct and practice: SECTION 1 - Relation to the Government (@) The practitioner should secure all the necessary licenses, permits and authority from the Department of Trade and Industry and other ‘government agencies as may be required by law, ordinance of rules and regulations and comply with all the requirements thereof before engaging in the same; {b) He should pay any and ail taxes, fees, dues, lavies or charges that the government may impose in accordance to law, ordinance, or rules and regulations; (©) He should hep, assist and cooperate withthe Department of Trade and Industry and all government agencies and instrumentalites in the ~-promotiort; development, proper zoniffeation-and-conservation of lands. ‘and other natural resources; its improvements and rights and interests therein; (4) He should not encourage, abet, tolerate or participate in the evasion or illegal reduction in the payment of all taxes, fees, dues, levies or charges that may be imposed by the government, () He should not offer or agree to pay to, split or rebate any commission, fee or valuable eqnsideration, directly or indirectly, with any person who is rot a duly licensed practitioner or to cooperate, assist or endorse any transaction or engagement of his services in violation of any existing law, tule or regulation; (© He should indjcate the license number of the cerificate issued by the Department of Trade and industry in his letterhead, dry seal, signboard, billboard, advertisement or other announcement in relation to the Realty Service Practice; SECTION 2 - Relation to the Public @ (b) (© @ © @ “The practitioner should be imbued with a social conscience for he does not live by himself and his family slone but he is @ part of society with definite social responsibilities; He should ensure the highest and the best use of the land and the equitable distribution of ownership, lirespective of politcal beliefs, cultural background, sect, religion or lass; He should keep himself well informed as to any movement affecting real estate in his ‘community, city or province, so that he may be able to contribute to public thinking on matters of taxation, land use, city planning, zonification and other programs of the government, He should cooperate with the government in protecting the public against deceptive, unfair and unconscionable acts and practices of some unscrupulous or unlicensed practitioners, ike frayd, misrepresentation, concealment of relevant information and other related unethical practices; He should ascertain ‘all pertinent facts conceming every property, and avoid error, ‘exaggeration, misrep] jon or concealment of pertinent facts in dealing with the ‘general public cont teal estate transactions; He should not be instrumental in introducing In a neighborhood a certain character or luse of property which will tend to impair or erode property values within that neighborhood; Uc (g) (yy @ o He should not be @ party to the naming of a false consideration in a deed of instrument; He should keep a special bank account separate and distinct from his own funds, all ‘moneys received in trust for other persons, such as deposit in escrow, trust funds, clients eamest money and similar items; In his advertisements, brochures or announcements, he should present a true picture Of the property, its Or rights and interests therein including whatever liens or encumt itmay have, if any, and should indicate his name, fim name, ‘address and license number of the Certificate issued by the Department of Trade and Industry. In case of real estate salesman, he should indicate the name, fim ‘name and license number of the broker under whom he is employed. He should see to it that all agreements, terms and conditions, financial obligations ‘and commitments in a real estate transaction are in writing, duly signed by all parties ‘concerned and if necessary to be properly authenticated by a Notary Public. SECTION 3 - Relation to the|ClientCustomer @ (b) (©) @ © ais ) (yy @ 0 (k) ‘The practitioner, in accepting an appointment or authority to act for and in behalf of a lent or customer, should pledge himself with utmost fidelity and good faith to Brotect and promote the interest of his client without in any manner sacrificing the legitimate interest of the other party in the transaction; For the sake of justice and faimess to his client who have reposed confidence in him, the Practitioner should endeavor to be well informed of current legislation, policies. ‘and programs of the government including proposed legislation, which may affect the Interest of his client, He should not ‘any commission, fee or any valuable consideration from. any party in any transaction except from his olient unless with the full knowledge and consent of all the parties in the transaction. He shall not also introduce or work for an overprice from elther the buyer or seller except the usual standard rate of ‘commission on any ral estate transaction; He should charge gr collect only such fees or commissions as are fair and reasonable in ince with usual schedule of commission for Metro Manila and provinces; He should not advertise any property without authority and in any offering, the price ‘quoted should be in accordance with the price agreed with the owners as the offering price, In.the event that more than ane formal offer-on_a specific property is made before the ‘owner has accepted proposal, all written offers should be presented to the owner for his decision; He should endeavor to make his client and customer conclude a fair contract seraniageous fo bth, He should assist his customer acquire possession and ownership of the real property bought in accordanod with the terms and conditions agreed upon; {n case he is called upon to act as witness in a court proceeding he should give his testimonies in the most unblased, honest, truthful and professional manner, As a real estate appraiser, he should not render an opinion without careful and thorough analysis and interpretation of all factors affecting the value of the property. His counsel and advice constitutes a professional service for which he should rake charge;‘SECTION 4 ~ Relations to Fellow Practitioners. @ ) © Of Oo (9) oy) @ o (k) 0 He should not solicit a listing which is currently listed exclusively with another broker unless the listing agreement has expired or revoked by the owner and the owner offers to list the same to the new broker without soliciting the same; When he accepts a listing from another broker, the agency of the broker who offers the listing should be respected unti it has expired and the property has come to the attention of the accepting broker from a different source, or until the owner without solictation, offers to’ list with the aocepting brokes. Such a listing should not be assed to a third broker or published in a daily newspaper without the knowledge ‘and consent of the listing broker, Signs giving notice of a property for sale, rent, lease or exchange should not be placed on any properly by more than one broker and only if authorized by the owner, He should not use it ‘obtained by him from a listing broker through offers to ‘coopera or ‘through iiiltiple listing Services 6F other sources authorized by the listing broker for the purpose of creating a referral prospect to a third broker or for Creating @ buyer's prospect, untess such is authorized by the listing broker, He should cooperate with other brokers on property listed and share the commission ‘on an agreed basis. Negotiations conceminig property listed exclusively with one broker should be carried with listing broker, and not the owner, except with the ‘consent of the listing broker; He should not solicit or use the services of an employee or salesman of another practitioner without the knowledge of the employer; He should not cise publely @ competior nor volunteer an opinion of, a competitor's If his opinion is sought, it should be rendered -with professional integrity and courtesy, ‘The practitioners should. seek no unfair advantage over his fellow practitioners and should willingly share with them the lessons of his experience and study; He should conduct his business properly to avoid any controversy with his fellow practitioners. In the event of a controversy between practitioners belonging to the same organization or association, such controversy should be submitted for arbitration fo such orpanizaton or association whose decision, if accepted by both Parties, will be final aid binding as far as the association is concerned. If the controversy is between practitioners belonging to different organizations or associations, it should be submitted to an Arbitration Board consisting of one member from each jon or association chosen by each of the parties to the controversy. A thir member should be chosen from either organizations or association or from the national organization or association to which said ‘organization or association are affiliated; In case the practitioners in @ controversy are not members of any duly recognized organization or the Arbitration Boards cannot settle the controversy, the Department of Trade and Industry shall assume jurisdiction over said controversy; In case a complaint ig fled against practitioner with his organization or association ‘for unethical or unfair practice, he should voluntarily submit all pertinent facts before: an investigating body that may be formed by his organization or association for evaluation and resolution. SECTION 6 - Relation to his Organization Including the National Association to which his Organization is Affiliated ul@ (b) © @) In the interest of society and his own profession, calling or occupation, the practitioner should abide by the Constitution’ and By-Laws of his association or ‘organization and the National Association to which itis affliated; Election as officer or member of the goveming body of the organization or association carries with it the moral obligation to serve honorably, unseifishly, dliigently and efficiently. It should not be the subject of election campaign, or use of letters or circulars announcing one's candidacy or appealing for votes for himself or for other nominees or candidates or other forms of electioneering or any agreement or any act which will interfere with the free and wise choice of the officers and members of the governing body of the organization; He should support his organization morally and financially and actively support its plans, programs and projects for the benefit ofall the members of the organization or association; ‘Any practitioner should first exhaust all administrative remedies available under ‘existing laws, rules arid regulations before taking any judicial or quasi-judicial action. ARTICLE IV. SANCTIONS Violations of any provision of this Code shall give rise to any sanction that may be imposed by the organization to which a practitioner belongs as a member, without prejudice, however, to such disciplinary action that the Department of Trade and Industry may deem expedient thereon when the proper complaint against the erring practitioner for alleged misconduct is filed with the Department in ‘accordance with existing rules and regulations. In:the case of practitioners who are not members of any organization; any complaint against them shall be governed by the existing laws, rules and regulations governing controversies. ARTICLE V. EFFECTIVITY This code shail take effect immediately. Done in Makati, Metro Manila, this 29th day of September, 1993. (SGD.) RIZALINO S. NAVARRO ‘Secretary, Department of Trade and Industry