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
   this Act.

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.