EXECUTIVE ORDER NO. 259
EXECUTIVE ORDER NO. 259 - CREATING
THE DEPARTMENT OF FINANCE REVENUE INTEGRITY PROTECTION SERVICE, AND FOR
OTHER PURPOSES
WHEREAS,
reports of graft and corruption in the Bureau of Internal Revenue and
the Bureau of Customs have been identified as the perennial and major
causes of revenue shortfalls, thereby compromising government’s
capacity to efficiently generate revenues for delivery of basic
services and to fund developments objectives;
WHEREAS, an unrelenting, systematic, and focused campaign to prevent
graft and corruption in the revenue collecting agencies of government
and to protect the integrity of revenues is imperative and is a top
priority of the government;
WHEREAS, being mandated by law to ensure the efficient generation and
management of revenues and financial resources of government, the
Secretary of Finance must take the lead in exercising powers of
discipline over all officers and employees engaged in revenue
collection;
WHEREAS, the Administrative Code of 1987 empowers the President with
the continuing authority to reorganize the Executive Department,
allocate powers, functions and responsibilities, align resources and
provide clear direction to specific government agencies and units;
WHEREAS, the creation of an anti-graft investigative body in the
Department of Finance to be known as the Revenue Integrity Protection
Service is an important step to battle corruption in said agency;
NOW, THEREFORE, I GLORIA MACAPAGAL-ARROYO, President of the Republic of
the Philippines, by virtue of the powers vested in me by law, do hereby
order:
Section 1. Organization. — There is hereby created in
the Department of Finance the Revenue Integrity Service (“the
Service”), which shall have the task to detect, investigate and prevent
corruption in the revenue generating agencies of government under the
Department of Finance.
The Service shall be under the direct supervision and control of
Secretary of Finance. The Secretary of Finance may designate a
subordinate official with the rank of at least an Undersecretary to
oversee the operations of the Service.
Sec. 2. Jurisdiction. — In the exercise of its
powers and functions, the Service shall have jurisdiction over all
officials and employees of the Department of Finance, the Bureau of
Internal Revenue, the Bureau of Customs and all other agencies attached
to the Department.
Sec. 3. Powers and Functions. — The Service shall
have the following powers and functions.
a.
To investigate, upon complaint or motu propio, allegations of corrupt
practices of officials and employees of the DOF, the Bureau of Internal
Revenue and the Bureau of Customs, and all other agencies under the
jurisdiction of the Secretary of Finance.
b. To gather
evidence and file the appropriate criminal, civil or administrative
complainants against government officials and employees within its
jurisdiction before the appropriate court of law, administrative body,
or agency of competent jurisdiction, and to assist the prosecuting
agency or officer towards the successful prosecution of such cases.
c. To
investigate, upon complaint or motu propio, unusual or unjustified
accumulation of wealth disproportionate to the earning capacity of
government officials and employees under its jurisdiction and to
initiate, and assist in, the prosecution of such cases for recovery or
forfeiture of ill-gotten wealth.
d. To review
current systems, processes and procedures in the DOF, the Bureau of
Internal Revenue and the Bureau of Customs and other attached agencies,
and to recommend reform measures to enhance integrity, reduce
opportunities for corruption and ensure efficient and transparent
delivery of public services.
e. The
Secretary of Finance or the Undersecretary overseeing the Service,
shall have the power to require the attendance of witnesses or the
production of books, papers, documents and other pertinent data,
including income tax returns, in accordance with the provisions of
Sec. 71 of R.A. 8424 (the National Internal Revenue Code).
f. To perform
any and all acts as may be necessary and lawful to successfully
implement this Order.
Sec. 4. Personnel and Staffing Complement. — The
Service shall be composed of its organic personnel, as approved by the
Department of Budget Management (DBM), augmented and reinforced by DOF
personnel as well those detailed or seconded from other agencies,
whether attached to the DOF or not. The Service shall have the power to
deputize any official or employee of government, to assist it in its
work and provide support in the performance of its duties and functions
as provided herein. In addition, the Service may hire or engage
technical personnel, including, but not limited to, accountants,
auditors, banking and financial consultants, to provide technical
support to any investigation.
Sec. 5. Rules and Regulations. — The Secretary of
Finance is hereby authorized to promulgate such rules and regulations
and prescribed procedures and processes to enable the Service to
effectively exercise its powers and discharge its duties and functions
herein provided, to guide the general public and to enhance
transparency and accountability in government.
Sec. 6. Training and Skills Enhancement. — With
the objective of developing a professional and highly skilled
complement of investigators and agents, the Service shall conduct
regular training and skills development programs for its personnel in
critical areas of corruption detection and investigation,
corruption-prevention, evidence gathering, management and preservation
and other areas covered by its operations.
Sec. 7. Performance Audit System. — The Service
shall develop a performance audit system that will monitor and measure
actual personnel performance as a basis for rewards and incentives for
good performance and punishment for nonfeasance or malfeasance, subject
to existing laws, rules and regulations. For this purpose, the
Secretary of Finance is hereby directed to develop appropriate
performance standards for personnel of the Service and personnel
evaluation system that will advance accountability in the service. The
Secretary of Finance is further directed to formulate a Code of Ethics
for personnel of the Service and an effective enforcement mechanism to
enforce its provisions and enhance integrity in the Service.
Sec. 8. Operating Guidelines. — The Service shall
adopt such operating guidelines as may be necessary to implement this
Executive Order, subject to the approval of the Secretary of Finance.
Sec. 9. Funding. — The Service shall be provided
with an initial annual allocation of TEN MILLION PESOS (P10,000,000.00)
to be drawn from the President’s Contingency Fund and/or from all
available savings of DOF-attached agencies, bureaus and GOCCs.
Appropriations for the succeeding years shall be incorporated in the
budget proposal for the Department of Finance. To successfully fulfill
the mandate of the Service, the Secretary of Finance is authorized to
receive, on behalf of the Service, donations from private persons or
entities in accordance with existing laws, rules and regulations.
Sec. 10. Budgetary Support. — The DBM is hereby
directed to provide the funds necessary for the transfer, detail
secondment or hiring of personnel, including requests for the hiring of
personnel on contractual or consultancy basis, in accordance with
budgeting laws, rules and regulations.
Sec. 11. Full Implementation of this Order. — The
Secretary of Finance may adopt such rules and regulations, issue such
further orders, and organize or reorganize the personnel of the
Service, to successfully implement this Order.
Sec. 12. Effectivity. — This Executive Order shall
take effect immediately.
DONE, in the City of Manila,
this 17th of December, in the year of Our Lord, Two Thousand and Three.
chan
robles virtual law librar
Back to Main
Since 19.07.98.