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Republic of the Philippines HOUSE OF REPRESENTATIVES Quezon City, Metro Manila TWELFTH CONGRESS First Regular Session HOUSE RESOLUTION No. _______ ___________________________________________________________________________ Introduced by Reps. SATURNINO C. OCAMPO, CRISPIN B. BELTRAN, LIZA L. MAZA ___________________________________________________________________________ RESOLUTION DIRECTING THE APPROPRIATE COMMITTEE OR COMMITTEES OF THE HOUSE OF REPRESENTATIVES TO INVESTIGATE, IN AID OF LEGISLATION, THE ALLEGED IRREGULARITIES IN THE NATIONAL GOVERNMENT’S ISSUANCE OF POVERTY ERADICATION AND ALLEVIATION CERTIFICATES (PEACE BONDS) WHICH RESULTED IN P1.4 BILLION IN MONOPOLY PROFITS FOR THE CAUCUS OF DEVELOPMENT NONGOVERNMENT ORGANIZATIONS (CODE-NGO) WHEREAS, development-oriented non-government organizations (NGOs) and people’s organizations (POs) are dynamic forces for social change in the country especially when they articulate, promote and advance the interests and welfare of the historically disempowered majority of the Filipino people; WHEREAS, the effectivity of NGOs and POs in the fight for good and pro-people governance, for transparency and democratic participation in decision-making, and against cronyism and corruption greatly depends on their retaining the moral high ground in the struggle to transform the Philippine state and society; WHEREAS, the Caucus of Development Non-Government Organizations (CODE-NGO), supposedly the largest network of NGOs and cooperatives in the country, allegedly used its political connections to ultimately secure P1.4 billion in profits from a series of transactions in P35 billion worth of government-issued 10-year zero coupon Poverty Eradication and Alleviation Certificates (PEACe Bonds); WHEREAS, among the privileges allegedly secured by CODE-NGO for the PEACe Bonds are, from the Monetary Board and the Insurance Commission, the grant of reserve eligibilities and, from the Bureau of Internal Revenue, tax exemptions on gains from the sale, exchange or retirement of the issue; WHEREAS, furthermore, it is alleged that CODE-NGO, having failed to work out a negotiated sale through an outright purchase agreement with the Bureau of Treasury, was still able to ensure that its agent Rizal Commercial Banking Corporation (RCBC) would corner the majority of the eventual issue in auction, for which RCBC turned over P1.4 billion to CODE-NGO with the balance distributed between CODE-NGO’s financial advisers and RCBC;


WHEREAS, CODE-NGO thus allegedly engaged in non-transparent, exclusive and political patronage practices to secure monopoly profits for itself at the expense of the government, which may effectively have lost at least the equivalent of the P1.4 billion CODE-NGO got from RCBC as well as revenue from the tax exemptions granted, and even of other development organizations which also might have opted to raise funds through such a scheme; WHEREAS, public officers, including but not solely officials from the Department of Finance and its attached agencies and from the Monetary Board, are thus allegedly involved in irregular transactions; WHEREAS, there is a need to determine if public officers, who must at all times be accountable to the people and serve them with utmost responsibility, are culpable and to recommend, if warranted, their prosecution to the proper authorities; WHEREAS, since declared noble ends on no account justifies ignoble means, the interest and welfare of the Filipino people will be served by establishing for the public record whether or not CODE-NGO indeed misused the political capital it built up from years of implementing development programs and projects ostensibly in the name of the people; NOW, THEREFORE, BE IT RESOLVED AS IT IS HEREBY RESOLVED, to direct the appropriate Committee or Committees of the House of Representatives to investigate, in aid of legislation, the alleged irregularities in the National Government’s issuance of PEACe Bonds which resulted in P1.4 billion in monopoly profits for CODE-NGO. ADOPTED,

SATURNINO C. OCAMPO

CRISPIN B. BELTRAN

LIZA L. MAZA

HR 403 - CODE-NGO  

WHEREAS, development-oriented non-government organizations (NGOs) and people’s organizations (POs) are dynamic forces for social change in t...

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