MARCH 17, 2015

NR # 3773

Appropriations Committee endorses bill granting SEC

the power to probe NGOs, foundations
A bill seeking to grant the Securities and Exchange Commission (SEC) the
authority to monitor or investigate non-governmental organizations (NGOs), foundations
and similar institutions got additional support from members of the House of
Representatives with the approval of the funding provision of the measure by the
Committee on Appropriations.
The Committee on Appropriations chaired by Rep. Isidro T. Ungab (3rd District,
Davao City) approved Section 3 of the unnumbered substitute bill to House Bill 4449,
which provides that the amount necessary for the implementation of the proposed Act
shall be included in the annual General Appropriations Act (GAA).
The substitute bill authored by Reps. Joaquin M. Chipeco, Jr. (2nd District,
Laguna), Sonny P. Collantes (3rd District, Batangas) and Julieta R. Cortuna (Party-list, A
Teacher), and prepared by the Committee on Banks and Financial Intermediaries seeks 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.
Chipeco 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 didnt the SEC, the governments 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, said Chipeco, chairman of the Committee on Ethics and
Privileges.
The substitute bill empowers the SEC to summon witnesses by subpoena duces
tecum, administer oaths, and take testimony or evidence relevant to the investigation.
The bill also provides that the SEC may 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 organizations, according to the bill.
The measure further provides that the SEC shall conduct a periodic review of its
budgetary requirements to upgrade its personnel services and institutionalize computerassisted 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. (30) rbb