JUNE 15, 2015

NR # 3864

House approves bill granting SEC the power to probe NGOs, foundations
The House of Representatives has approved on third and final reading a bill seeking
to grant the Securities and Exchange Commission (SEC) the authority to monitor or
investigate non-governmental organizations (NGOs), foundations and similar institution.
The House approved House Bill 5779, which substituted House Bill 4449, seeking
to vest the SEC with all the powers of an investigating body under the Administrative
Code of 1987.
The bill provides that the SEC may, upon its own initiative or upon the sworn
application of any person or organization, investigate the acts and practices of any NGO,
foundation and similar organizations when there exists probable cause to believe that such
organizations are committing or attempting or conspiring to commit, or participating in or
facilitating an act in violation of existing laws, rules and regulations.
The bill is principally authored by Rep. Joaquin M. Chipeco, Jr. (2 nd District,
Laguna) and co-authored by 16 lawmakers.
Chipeco, chairman of the Committee on Ethics and Privileges, said the continuing
saga involving Priority Development Assistance Fund (PDAF) accountabilities has
brought to the fore widespread abuses and malpractices committed by some NGOs.
While the 1987 Constitution has laudably enshrined peoples organizations (POs),
cooperatives and NGOs as the fleshing-out of the people power legacy of the Filipino
nation, Chipeco said it was not long before a number of these organizations were
corrupted by predatory individuals in collusion with certain self-serving politicians.
Registered then as non-stock, non-profit organizations, these fraudulent
organizations have put honest-to-goodness foundations and NGOs into disrepute.
Questions then have been asked, why didn't the SEC, the government's corporate
watchdog, alert the general public as to the existence of these dubious organizations? Did
the SEC fail in its mandate of protecting the people by its inability to raise red flags
concerning unethical business practices of these entities? Chipeco said.
Chipeco said the SEC excuses itself from responsibility by claiming that at present,
there is no law that specifically mandates the SEC to monitor foundations, NGOs, among
others, except for some provisions of the Terrorist Financing Prevention and Suppression
Act.

This bill aims to address this deficiency in our laws by empowering the SEC to
monitor charitable organizations, foundations and NGOs to protect the people from
unscrupulous practices, Chipeco said.
House Bill 5779 empowers the SEC to summon witnesses by subpoena duces
tecum, administer oaths, and take testimony or evidence relevant to the investigation.
The bill also allows the SEC to enlist the assistance of any branch, department,
bureau, office, agency or instrumentality of the government, including government-owned
and controlled-corporations (GOCCs) in undertaking its monitoring and investigatory
functions, which may include the use of its personnel, facilities and resources. The SEC
shall furnish the appropriate law enforcement agencies with the official results of its
investigation.
In the exercise of its investigatory powers, the SEC shall ensure that its monitoring
activities shall cover all or substantially all active NGOs, foundations and similar
organizations.
Furthermore, the SEC shall conduct a periodic review of its budgetary requirements
to upgrade its personnel services and institutionalize computer-assisted monitoring and
review of activities of all active NGOs, foundations and similar organizations registered
with the SEC. The SEC shall submit this budget proposal for immediate consideration in
the next budget cycle.
Co-authors of the bill are Reps. Sonny P. Collantes (3 rd District, Batangas), Julieta
R. Cortuna (Party List - A TEACHER), Isidro T. Ungab (3 rd District, Davao City), Dakila
Carlo E. Cua (Lone District, Quirino), Estrellita B. Suansing (1 st District, Nueva Ecija),
Karlo Alexei B. Nograles (1st District, Davao City), Thelma Z. Almario (2 nd District,
Davao Oriental), Maria Zenaida B. Angping (3rd District, Manila), Leopoldo N. Bataoil
(2nd District, Pangasinan), Jorge T. Almonte (1 st District, Misamis Occidental), Raul V.
Del Mar (1st District, Cebu City), Romeo M. Acop (2nd District, Antipolo City), Rodel
M. Batocabe (Party List, AKO BICOL), Maximo B. Rodriguez Jr. (Party-List,
ABAMIN), Susan A. Yap (2nd District, Tarlac), Joseller Yeng M. Guiao (1st District,
Pampanga). (30) rbb