Definition of terms:
A. "Conflict of interest" arises when a public official or employee is a
member of a board, an officer, or a substantial stockholder of a private
corporation or owner or has a substantial interest in a business, and
the interest of such corporation or business, or his rights or duties
therein, may be opposed to or affected by the faithful performance
of official duty.
B. "Divestment" is the transfer of title or disposal of interest in
property by voluntarily, completely and actually depriving or
dispossessing oneself of his right or title to it in favor of a
person or persons other than his spouse and relatives as defined in
C. "Relatives" refers to any and all persons related to a public official or
employee within the fourth civil degree of consanguinity or affinity,
including bilas, inso and balae.
Prohibited Acts and Transactions (sec. 7):
A. Public officials and employees shall not have any financial or material
interest in any transaction requiring the approval of their office.
B. Public officials and employees during their incumbency shall not:
1. Own, control, manage or accept employment as officer, employee,
consultant, counsel, broker, agent, trustee or nominee in any
private enterprise regulated, supervised or licensed by their
office unless expressly allowed by law;
2. Engage in the private practice of their profession unless
authorized by the Constitution or law, provided, that such practice
will not conflict or tend to conflict with their official functions;
3. Recommend any person to any position in a private enterprise which
has a regular or pending official transaction with their office.
C. Public officials and employees shall not use or divulge, confidential
or classified information officially known to them by reason of their
office and not made available to the public, either:
1. To further their private interests, or give undue advantage to anyone; or
2. To prejudice the public interest.
D. Public officials and employees shall not solicit or accept, directly or
indirectly, any gift, gratuity, favor, entertainment, loan or anything of
monetary value from any person in the course of their official duties or
in connection with any operation being regulated by, or any transaction
which may be affected by the functions of their office.
Gifts or grants from foreign governments
A. The acceptance and retention by a public official or employee of a gift
of nominal value tendered and received as a souvenir or mark of courtesy;
B. The acceptance by a public official or employee of a gift in the nature
of a scholarship or fellowship grant or medical treatment; or
C. The acceptance by a public official or employee of travel grants or
expenses for travel taking place entirely outside the Philippine
(such as allowances, transportation, food, and lodging) of more than
nominal value if such acceptance is appropriate or consistent with the
interests of the Philippines, and permitted by the head of office,
branch or agency to which he belongs.
These prohibitions shall continue to apply for a period of one (1) year
after resignation, retirement, or separation from public office, except
in the case
Divestment (sec 9):
When a conflict of interest arises, he shall resign from his position
in any private business enterprise within thirty (30) days from his
assumption of office and/or divest himself of his shareholdings or
interest within sixty (60) days from such assumption.
The same rule shall apply where the public official or employee is a
partner in a partnership.