Bill seeks prohibition of ex-officials in financial firms

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Friday, February 7, 2014


TWO Mindanao lawmakers filed a bill seeking the prohibition of retired government officials from being appointed to international and domestic financial institutions.

House Bill 3310 said that retired officials of the government who have participated or whose offices have participated directly or indirectly in the negotiation with international and domestic creditors are prohibited from being employed by foreign and domestic creditors within two years from their retirement or separation.

Cagayan de Oro City Representative Rufus Rodriguez and his brother Abante Mindanao Party-list Representative Maximo Rodriguez Jr. author the bill.

Rufus Rodriguez said that the prohibition on employment shall include consultancy, contract of services, management contracts or similar agreements or schemes.

He noted that the prospect of being employed by these financial institutions after retirement or separation for the government might also influence incumbent officials in their negotiations either for new loans or debt restructuring, by accommodating the interest of the creditors to the prejudice of the government.

"Our financial managers and debt negotiators have access to vital information, which these financial institutions could use against the economic and financial interest of the Philippine government," Rodriguez said.

He added that there have been a number of former officials of the government who took part in the negotiation for loans with foreign and domestic creditors, who were later employed by these financial institutions.

"Considering the amount involved are billions of dollars and to avoid conflict of interest in the negotiators with our foreign creditors, it is imperative that the state shall regulate the right of our financial managers and negotiators to be employed with the domestic and international financial institutions that extended loan to our government," the Cagayan de Oro lawmaker said.

He noted that the bill seeks to promote nationalist consciousness among people and a higher sense of ethical standard among economic and financial managers.

"It will partly implement the constitutional mandate to develop a self-reliant and independent national economy effectively controlled by Filipinos," Rodriguez said.

The bill also prohibits incumbent officials of the government who have participated in or whose office has participated directly or indirectly in the negotiation with financial institutions to be employed with the foreign and domestic creditors within two years from their resignation or separation.

The measure imposes a penalty of imprisonment of five years for violators and the forfeiture of their salaries and all benefits received. (Sunnex)

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