The most controversial public documents which the Philippines is currently faced with, is the so-called SALN or the Statement of Assets and Liabilities and Net Worth. The non-filing thereof as well as the filing of SALN with false information or lack of it is being put in issue. If proven that there was a violation of the 1987 Philippine Constitution and pertinent laws governing the same, this will mean the conviction of an impeached official, his perpetual disqualification, possible initiation of criminal proceedings against him, or the forfeiture of assets or property which will be proven to be ill-gotten wealth. (Note: While the information provided have been gathered from applicable laws, it is still best to refer to the provisions of the laws for all intents and purposes. This blog information does not claim any right or authority to render any legal opinion or be a substitute for appropriate legal counseling.)
What is the Statement of Assets and Liabilities and Net Worth (SALN)?
The Statements of Assets and Liabilities and Net Worth is a document (in prescribed form) containing information on the following:
(a) real property, its improvements, acquisition costs, assessed value,
and current fair market value;
(b) personal property and acquisition cost;
(c) all other assets such as investments, cash on hand or in banks,
stock, bonds , and the like; and
(d) all financial liabilities, both current and long term.
In addition, the Disclosure of Business Interest and Financial Connections shall contain information on any existing interest in, or any existing connection with, any business enterprises or entities, whether as proprietor, investor, promoter, partner, shareholder, officer, managing director, executive, creditor, lawyer, legal consultant or adviser, financial or business consultant, accountant, auditor, and the like, the name and addresses of the business enterprises or entities, the dates when such interests or connections were established, and such other details as will show the nature of the interests of connections.
Who are required to file the SALN?
Every official and employee, except those who serve in an official honorary capacity, without service credit or pay, temporary laborers and casual or temporary and contractual workers, shall file under oath their statements of assets, liabilities and networth and a disclosure of business interest and financial connections including those of their spouses and unmarried children under eighteen (18) years of age living in their households, in the prescribed form.
What law/s required the filing of the SALN?
Republic Act No. 6713 (as amended) approved on February 20, 1989 provides that public officials and employees have an obligation to accomplish and submit declarations under oath of, and the public has the right to know, their assets, liabilities, net worth and financial and business interests including those of their spouses and of unmarried children under eighteen (18) years of age living in their households.
This law was preceded by Republic Act No. 3019 was enacted on August 16, 1960 requiring public officers to file the SALN as follows:
Section 7. Statement of assets and liabilities. Every public officer, within thirty days after the approval of this Act or after assuming office, and within the month of January of every other year thereafter, as well as upon the expiration of his term of office, or upon his resignation or separation from office, shall prepare and file with the office of the corresponding Department Head, or in the case of a Head of Department or chief of an independent office, with the Office of the President, or in the case of members of the Congress and the officials and employees thereof, with the Office of the Secretary of the corresponding House, a true detailed and sworn statement of assets and liabilities, including a statement of the amounts and sources of his income, the amounts of his personal and family expenses and the amount of income taxes paid for the next preceding calendar year: Provided, That public officers assuming office less than two months before the end of the calendar year, may file their statements in the following months of January.
However, sometime January of 1974 or more than a year after Martial Law was proclaimed by the late President Ferdinand E. Marcos, Presidential Decree No. 379, all persons, whether natural or juridical, having a gross assets of P50,000.00 or more, as of December 31, 1973, regardless of net worth, shall file a sworn statement of assets, liabilities and net worth.
What were the reasons cited by P.D. 379 for this requirement to file the SALN?
P.D. 379 specified that there is an urgent need to compile and collate statistical data on property ownership to determine the overall assets of the country; and that there is a necessity to establish a data bank for purposes of economic development and judicious allocation of natural resources and capital.
This was amended by Presidential Decree No. 417 on March 19, 1974 which declared that the filing of the statement by public officers under this Decree shall be considering sufficient compliance with the requirements of Republic Act No. 3019 for those statements as of December 31, 1973 and required to be filed on or before the end of January 1974. Thereafter, statements shall be filed and governed by RA 3019 once again.
When should the SALN be filed?
The above documents under the Code must be filed:
(1) Within thirty (30) days after assumption of office, statements of which
must be reckoned as of his first day of service.
(2) On or before April 30 of every year thereafter, statements of which must be reckoned as of the end of the preceding year; or
(3) Within thirty (30) days after separation from the service, statements of
which must be reckoned as of his last day of office.
Where should the SALN be filed?
The Statements of Assets, Liabilities and Net Worth and the Disclosure of
Business Interest and Financial Connections shall be filed by the:
(1) President, Vice-President and Constitutional Officials, with the National Office of the Ombudsman;
(2) Senators and Congressmen, with the Secretaries of the Senate and the House of Representatives, respectively; Justices, with the Clerk of Court of the Supreme Court; Judges, with the Court Administrator; and national executive officials such as Members of the Cabinet, Undersecretaries and Assistant Secretaries, including the foreign service and heads of government-owned or controlled corporations with original charters and their subsidiaries and state colleges and universities with the Office of the President;
(3) Regional and local officials and employees, both appointive and elective, including other officials and employees of government-owned or controlled corporations and their subsidiaries and state colleges and universities, with the Deputy Ombudsman in their respective regions;
(4) Officers of the Armed Forces from the rank of Colonel or Naval Captain, with the Office of the President, and those below said ranks, with the Deputy Ombudsman in their respective regions;
(5) All other officials and employees defined in Republic Act No. 3019, as amended with the Civil Service Commission.
A copy of said statements shall also be filed with their respective departments, offices or agencies.
What is the extent of the authority of the Ombudsman to look into the pertinent records of a public official or employee?
Every official and employee shall also execute, within thirty (30) days from date of their assumption of office, the necessary authority in favor of the Ombudsman to obtain, from all the appropriate government agencies, including the Bureau of Internal Revenue, such documents as may show their assets, liabilities, net worth, and also their business interests, and financial connections in previous years, including, if possible, the year when they first assumed any office in the government.
What other information is needed to be disclosed by the public official or employee concerned?
Every official or employee shall identify and disclose under oath to the best of his knowledge and information, his relatives in the government , up to the fourth civil degree of relationship, either of consanguinity or affinity, including bilas, inso, and balae, in the prescribed form.
Can the public have access to these statements?
Any and all statements filed shall be made available for public inspection at reasonable hours. Such statements shall be made available for copying or reproduction after ten (10) working days from the time they are filed as required by law unless extended for meritorious reasons. Any duly authorized person requesting a copy of a statement shall be required to pay a reasonable fee as may be determined and prescribed by the Civil Service Commission to cover the cost of reproduction and mailing of such statement, as well as the cost of certification. Any statement filed under the Code shall be available to the public, subject to the foregoing limitations, for a period of ten (10) years after receipt of the statement. The statement may be destroyed after such period unless needed in an on-going investigation.
Are there limitation on the use of such statement?
Yes. It shall be unlawful for any person to obtain or use any statement filed under the law for: (a) any purpose contrary to morals or public policy; or (b) any commercial purpose other than by news and communications media for dissemination to the general public.
