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Article 216. Possession of prohibited interest by a public officer. — The penalty of arresto mayor in its medium period to prision correccional in its minimum period, or a fine ranging from Forty thousand pesos (P40,000) to Two hundred thousand pesos (P200,000) or both, shall be imposed upon a public officer who directly or indirectly, shall become interested in any contract or business in which it is his official duty to intervene.

This provision is applicable to experts, arbitrators and private accountants who, in like manner, shall take part in any contract or transaction connected with the estate or property in appraisal, distribution or adjudication of which they shall have acted, and to guardians and executors with respect to the property belonging to their wards or estate.

WHO ARE LIABLE:
1. A public officer who became interested in any contract or business in which it is his official duty to intervene.
2. Experts, arbitrators, and private accountants who took part in any contract or transaction connected with the estate or property in the approval, distribution, or adjudication of which they had acted.
3. Guardians and executors with respect to property belonging to their wards or the estate.

Actual fraud is not necessary

Intervention must be by virtue of a public office held

The act is punished because of the possibility that fraud may be committed or that the officer may place his own interest above that of the Government or of the party which he represents.


Constitutional prohibitions exist
- Congress: cannot personally appear as counsel, cannot be interested financially in any franchise or special privilege granted by the government, cannot intervene in any matter before the office of the Government
 
- Executive – cannot hold any other office

- Constitutional Commission – cannot hold any other office, engage in the practice of a profession.