OCA Circular No. 148 2024

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lRepublic of tbe lIbilippines

$>upreme QCourt
®ffice of the ([ourt ~))miltigtrator
manila

OCA CIRCULAR NO. 148-2024

TO: Executive/Presiding Judges and Branch Clerks


of Court of the Regional Trial Courts, Family
Courts, Shari' ah District Courts, Metropolitan
Trial Courts, Municipal Trial Court in Cities,
Municipal Trial Courts, Municipal Circuit Trial
Courts, and Shari'ah Circuit Courts

SUbject: National Disposal Program of Unserviceable


Properties in All Trial Courts Nationwide

As cleared with Chief Justice Alexander G. Gesmundo, and pursuant to the


continuing authority given to the Office of the Court Administrator (OCA) to
approve the disposal of unserviceable properties by the appropriate Disposal
Committees of the lower courts 1, a National Disposal Program of unserviceable
properties in all first- and second-level courts nationwide is scheduled on 1 July
2024. Thus, all trial courts with unserviceable properties, as defined in A.M. No.
23-06-14-SC (The Rules for the Disposal of Unserviceable Properties of the
Judiciary), are required to participate in this activity, by observing the following
procedures:

1. The composition of Regional Trial Court Disposal Committee


(RTCDC), Metropolitan Trial Court, Municipal Trial Court,
Municipal Trial Court In Cities, and Municipal Circuit Trial
Court Disposal Committee (MCTCDC), Shari'ah District Court
Disposal Committee (SDCDC) and Shari'ah Circuit Court
Disposal Committee (SCCDC) in each station or single sala
court shall be deemed pre-approved, provided it is convened by
the respective ex officio Chairpersons thereof and composed of
members as provided for in Section III (Disposal Committees),
pars. 2 and 3 of A.M. No. 23-06-14-SC.

2. On or before 1 June 2024, the Disposal Committees shall submit


a list of the unserviceable properties to the Property Division,
OAS, OCA, based on the following:

1) those included in the books, records or compiled list of the


Property Division, OAS, OCA, determined to be ripe for
disposal, as identified through the link specified in Section
VIII (Transitory Provisions) of A.M. No. 23-06-14-SC or
the updated link with respect thereto, if any;
2) those with property numbers/tags ripe for disposal but not
included in the compiled list; and

I Sec. II (Guiding Principles), par. 10, A.M. No. 23-06-l4-SC dated 29 August 2023 (The Rules for the
Disposal of Unserviceable Properties afthe Judiciary)
3) other properties with or without property numbers/tags
coming from other sources which are determined also as
unserviceable.

3. The source of funds, only if available, like the Judiciary


Development Fund (JDF), General SC Fund (GF) or Fiscal
Autonomy (FAF), of the listed unserviceable properties shall be
identified and mentioned or segregated in the list.

4. The Disposal Committees shall copy furnish the concerned COA


offices having jurisdiction over them with the inventory lists and
notify them of the scheduled date of disposal on 1 July 2024. The
Disposal Committee may proceed with the disposal of the
unserviceable properties as scheduled even in the absence of a
COA representative provided it has been served a notice for the
same.

5. The Disposal Committees shall grve special attention to


properties that are classified as Items of Cultural Value,
Technology Property, Vehicles, and Intellectual Property [Sec. V
(Modes of Disposal) par. H (1) to (4), A.M. No. 23-06-14-SC]. A
list of these properties, if any, shall be submitted to the Property
Division, OAS, OCA, on or before 1 June 2024. The Disposal
Committee shall make sure that none of these items are included
in the properties for disposal.

6. In preparing the list of unserviceable properties with property


numbers/tags as identified by the Property Division, OAS, OCA,
the Disposal Committees shall check the list prepared by the said
office on which can be disposed of already by each court or
station by accessing through the herein link:

https://judiciaryph-
my.sharepoint. com/ :x:/g/personal/ocacmo_ scjudiciary _gov_phi
EVI95IceF3hDiMQST9CxcSMBiSV525E6DKJnJTjRqIlnGA?e
=xe3020

7. The list required under item 2 and all other lists/inventories


required by the Property Division, OAS, OCA, for use during the
National Disposal Program shall be submitted to the herein email
address: [email protected]

8. The properties for disposal shall be listed in the Inventory and


Inspection Report of Unserviceable Property. The modes of
disposal to be given priority by the Disposal Committees shall be
through 1) Transfer Without Cost to other government agencies
or by 2) Destruction/Condemnation, or a combination of both,
at the discretion of the Committee and without need of any prior
approval by the OCA on the chosen mode. Other modes of
disposal as provided in A.M. No. 23-06-14-SC may be
considered by the concerned Disposal Committee.

9. The Disposal Committee, however, may dispose through other


modes not stated above if there is already an approval from the
OCA prior to the National Disposal Program. Still, the concerned
Disposal Committee may conduct the disposal of unserviceable
properties pursuant to this Circular despite an earlier approval
obtained from the OCA, but the latter shall be immediately
informed of such shift by the concerned ex officio Chairperson.

10. The members of the Disposal Committees shall witness the actual
disposal of the unserviceable properties in their respective areas.
The Clerks of Court shall also serve as representatives of the
Accounting Division, Financial Management Office (FMO),
OCA, to witness the disposal on its behalf.

11. The Disposal Committees shall then submit to the FMO, OCA
and the Property Division, OAS, OCA, as well as to the
concerned local field auditor of the COA field office hard copies
of the following duly accomplished forms within 10 days after
disposal:

Disposal through Transfer without cost


- Inventory and Inspection Report of Unserviceable
Property
- Invoice-Receipt of Property
- Disposal Report

Disposal through Destruction/Condemnation and other modes of


disposal
- Inventory and Inspection Report of Unserviceable
Property
- Waste Materials Report
- Disposal Report

Additional electronic copies of the above forms may


simultaneously be sent to the Property Division, OAS, OCA,
within the same period to the following email accounts:

[email protected] Region 4
[email protected] MeTC NCR, Region 7 and 8
[email protected] RTC NCR, Region 12 & Zambales
[email protected] Region 2,5 & 9, Bulacan and Bataan
[email protected] Region 6, 10 & 11
[email protected] Region 1 & Nueva Ecija
[email protected] Region 3
For strict implementation and compliance

17 May 2024

urt Administrator
3Republtc of tbe ~bilippine%
$,Upre111e QCou rt
;fffilnniln

EN BANC

NOTICE
Sirs/Mesdames:

Please take notice that the Court en bane issued a Resolution


dated AUGUST 29, 2023, which reads as follows:

"A.M. No. 23-06-14-SC

THE RULES FOR THE DISPOSAL OF UNSERVICEABLE


PROPERTIES OF THE JUDICIARY

RESOLUTION

WHEREAS, under the Strategic Plan for Judicial Innovations


2022-2027, the Supreme Court shall undertake a judiciary-wide
modernization program of court processes and operations, both adjudicative
and administrative;

WHEREAS, the Constitutional Fiscal Autonomy Group has


established guidelines for the disposal of unserviceable government
properties to avoid their further deterioration as well as to generate benefits
in terms of higher appraisal value, lower storage costs, and better
management of office spaces;

WHEREAS, the Commission on Audit, in 2021, recommended that


the Supreme Court conduct inspection, appraisal, and disposal of the
unserviceable properties in accordance with the provisions of' Section 79 of
Presidential Decree No. 1445;

WHEREAS, the Commission on Audit likewise urged the Supreme


Court to provide a safe storage area for all unserviceable properties awaiting
disposal to protect them from further deterioration and avoid diminishing
their value;

WHEREAS, there is thus a need for guidelines for the disposal of


unserviceable Judiciary properties, taking into consideration the facilities
and resources available to the different court levels with regard to such
disposal;
Notice of Resolution -2- A.M. No. 23-06-14-SC
August 29, 2023

WHEREAS, through Memorandum Order No.. 102-2022 dated


July 11, 2022, a Technical Working Group was created to re-examine the
current framework, guidelines, and procedures for the proper disposal of the
Judiciary's unserviceable properties. The Technical ~Working Group is
composed of the following:

Chairperson: Hon. Maria Filomena D. Singh


Associate Justice, Supreme Court

Vice-Chairperson: Hon. Raul B.''Villanueva


Court Administrator

Members: Hon. Cecilyn E. Burgos-Villavert


Executive Judge, Regional Trial Court
Quezon City

Hon. Ethel V. Mercado-Gutay


Executive Judge, Regional Trial Court
Makati City

Hon. Romeo D. Tagra


Executive Judge, Regional Trial Court
Marikina City

Hon. Maria Josefina G. San Jualll-Torres


Executive Judge, Regional Trial Court
Morong, Rizal

Hon. Dennis z. Alcantar


Executive Judge, Regional Trial Court
Cagayan de Oro City

Hon. Ma. Angelica T. Paras-Quiambao


Executive Judge, Regional Trial Court
Angeles City

Hon. Marion Jacqueline P. Poblete


Executive Judge, Regional Trial Court
Balanga City

Hon. Ma. Ligaya V. Itliong-Rivera


Executive Judge, Regional Trial Court
Baguio City
Notice of Resolution -3- A.M. No. 23-06-14-SC
August 29, 2023

Hon. Caesar C. Buenagua


Executive Judge, Regional Trial Court
Calamba City

Hon. Raymond Joseph Javier.


Executive Judge, Regional Trial Court
Bacolod City
.
Hon. Emmanuel C. Carpio
Executive Judge, Regional Trial Court
Davao City

Hon. Marlon Jay Moneva


Executive Judge, Regional Trial Court
Cebu City

Hon. Erwin Virgilio P. Ferrer


Executive Judge, Regional Trial Court
Naga City

Hon. Carissa Anne 0. Manook-Frondozo


Executive Judge, Metropolitan Trial Court
Manila

Hon. Juvenal N. Bella


Executive Judge, Metropolitan Trial Court
Quezon City

Hon. Ma. Concepcion A. Billones


Executive Judge, Metropolitan Trial Court
Makati City

Atty. Edgar 0. Aricheta


Representative, Office of the Chief Justice

Resource Persons: Atty. Ruby Esteban-Garcia


Chief, Fiscal Management Office
Office of the Court Administrator

Ms. Febella J. Guillermo


Accounting Division, Fiscal Management Office
Office of the Court Administrator
Notice of Resolution -4- A.l\1. No. 23-06-14-SC
August 29, 2023

Ms. Amalia A. Adan


Officer-in-Charge, Property Division
Office of Administrative Services
Office of the Court Administrator

Mr. Dindo Sevilla


Internal Audit Service
Supreme Comi

Secretariat: Atty. Patricia Loise H. Del Rosado


Assistant Secretary
Office of Associate·· Justice Maria Filomena D.
Singh

Atty. George Molo


Atty. Eduardo Tolentino
Atty. Rex R. Gregorio
Assistant Secretaries
Office of the Court Administrator

WHEREAS, the Technical Working Group conducted a series of


meetings to revise and update the current framework, guidelines, and
procedures for the proper disposal of the Judiciary's unserviceable
prope1iies;

NOW, THEREFORE, acting on the recommendation of Associate


Justice Maria Filomena D. Singh, Chairperson of the Technical Working
Group, the Court resolves to APPROVE the following Rules for the
management and disposal of unserviceable properties of the Judiciary.

This Rules shall take effect immediately after publication.

August 29, 2023

(Original signed)
ALEXANDER G. GESMUNDO
Chief Justice

(Original signed) (Original signed)


MARVIC M.V.F. LEONEN ALFREDO BENJAMIN S. CAGUIOA
Senior A~sociate Justice Associate Justice

c/
Notice of Resolution -5- A.l\1. No. 23-06-14-SC
August 29, 2023

(Original signed) (Original signed)


RAMON PAULL.HERNANDO AMY C. LAZARO-JAVIER
Associate Justice Associate Justice

(Original signed) (Original signed)


HENRI JEANPAUL B. INTING RODIL V. ZALAMEDA
Associate Justice Associate Justice

(On official leave) (Original signed)


MARIO V. LOPEZ SAMUEL H. GAERLAN
Associate Justice Associate Justice

(Original signed) (Original signed)


RICARDO R. ROSARIO JHOSEP Y. LOPEZ
Associate Justice Associate Justice

(Original signed) (Original signed)


JAP ARB. DIMAAMP AO JOSE MIDAS P. MARQUEZ
Associate Justice Associate Justice

(Original signed) (Original signed)


ANTONIO T. KHO, JR. lVIARIA FILOMENA D. SINGH
Associate Justice Associate Justice
Notice of Resolution -6- A.1\.1. No. 23-06-14-SC
August 29, 2023

THE RULES FOR THE DISPOSAL OF UNSERVICEABLE


PROPERTIES OF THE JUDICIARY

I. Definition of Terms

1. "Unserviceable property" is a property that is no longer essential to


the needs or operations of a particular court or office or any of the officials
or employees to which it has _been assigned. The term shall include iten'is
that

(a} •are obsolete due to changed procedures, functions, or usage


patterns;
(b) no longer comply with occupational health .and safety
standards;
(c) are no longer needed;
(d) have exceeded their economic life;
(e) have become unserviceable for any other cause;
(f) require repair or maintenance in excess of 50% of their current
market value; and
(g) require special handling, such as gifts and decorations from
foreign governments and individuals and items of cultural
value.

2. "Responsible Officer" refers to the official tasked with undertaking


the disposal of Judiciary property under their authority. For the Supreme
Court (SC), the tenn refers to the S.C Disposal Committee or, as the case
may be, the SC Chief Judicial Staff Officer of the Property Division, Office
of Admiriistrative Services.

For all other courts, the term refers to the Chairperson of the pertinent
Disposal Committee. For all courts below the SC, all actions required under
this Administrative Order from the Responsible Officer shall be understood
to have been performed in coordination and consultation with the members
of the pertinent Disposal Committee.

II. Guiding Principles

I. This Rules shall cover all Judiciary property consisting of


equipment, furniture, fixtures, supplies and materials, transport vehicles, and
similar items:

(a) bought on account of the Judiciary; and


(b) donated to the Judiciary by the national government, local
government, private sector, civil society organizations, and
other nongovermnent individuals or organizations.

2. The disposal of unserviceable Judiciary property must be


transparent. The Responsible Officer shall document the entire process and
Notice of Resolution -7- A.M. No. 23-06-14-SC
August 29, 2023

furnish the concerned offices and agencies with all decisions and actions
taken pursuant to this Rules.

3. The Responsible Officer shall monitor the status of properties


possessed by the courts and offices over which he/she has disposal authority.
To this end, the Responsible Officer shall maintain a complete and accurate
inventory of Judiciary property under his/her supervision.

4. Property shall be disposed of once they become unserviceable


as defined in Part I(l ).

5. Immediate disposal of property or equipment may be made by


the Responsible Officer of the (a) SC Disposal Committee (SCDC); (b)
Regional Trial Court (RTC) Disposal Committee (RTCDC); (c)
Metropolitan Trial Court, Municipal Trial Court, Municipal Trial Court in
Cities, and Municipal Circuit Trial Court (collectively, MCTC) Disposal
Committee (MCTCDC); (d) Shari'ah District Court (SDC) Disposal
Committee (SDCDC) and; (e) Shari 'ah Circuit Court (SCC) Disposal
Committee (SCCDC) in instances where the property or equipment to be
disposed of is remnants of fire, earthquake, or similar calamities and their
accountabilities could no longer be ascertained. In such a situation, the
Responsible Officer may dispose of the said property or equipment _subject
to notice to the Commission on Audit (COA) and the SC or the Court
Administrator (OCA) Property Division, as the case may be.

6. The Judiciary shall not offer any warranty on the condition of


items it disposes, including disposals by sale or auction.

7. Pertinent principles of depreciation accounting shall be applied


where necessary.

8. Disposable equipment shall be sold not lower than its book


value or salvage value as determined using the following formula:

Appraised Value (AV)= Book Value (BV) where

BV = Acquisition Cost (AC) x Depredation Factor (DF)


D = remaining life / Estimated life

For items exceeding their useful life, the appraised value (AV) shall
be equal to their salvage value (SV) or 10% of their acquisition cost (AC).

The table stating the estimated economic lives of the properties


described therein is attached as AnneX'· l hereof.

9. When proceeds are derived from the disposal of unserviceable


property, such proceeds shall constitute part of the JudiciarY, Development
Notice of Resolution - 8- A.l\1. No. 23-06-14-SC
August 29, 2023

Fund pursuant to the Court's Resolution dated December 16, 2015 in A.M.
No. 15-11-12-SC.

10. To expedite the disposal of unserviceable property, the Chief


Justice, as Head of Office, gives the Court Administrator the continuing
authority to monitor and approve the disposal of properties by the
appropriate disposal committees of the lower courts. In each instance, the
Court Administrator shall furnish the Office of the Chief Justice with a copy
of its action, which the Chief Justice may reverse within 15 days from
receipt.

III. Disposal Committees

The following Disposal Committees are hereby created:

1. Supreme Court Disposal Committee

Hereafter known as the Supreme Court Disposal Committee (SCDC),


a Disposal Committee is hereby established in the SC for all offices under it,
to be composed of the following:

Chairperson - The Clerk of Court or the duly authorized


representative

Vice-Chairperson - The Chief of the Office of Administrative


Services or the duly authorized representative

Members-

1.. Chief Accountant, SC, or the duly authorized


representative
2. SC Chief Judicial Staff Officer, Property Division, SC '
3. SC Chief Judicial Staff Officer, Property Division, OCA

Secretary-Recorder - To be designated by the Chairperson

2. Regional Trial Court Disposal Committee (RTCDC) and


Shari'ah District Court Disposal Committee (SDCDC)

An RTCDC or SDCDC shall be created for each of the respective


court stations (whether multi-sala or single-sala) in the country, as the case
may be. The Executive Judges of the RTC and SDC shall be designated ex
officio Chairpersons of the RTCDC and SDCDC, respectively, in the
affected station. The Chairpersons of the RTCDC and the SDCDC shall
take charge of the disposal of unserviceable properties of the RTCs and the
SDCs in their respective stations.
Notice of Resolution -9- A.l\1. No. 23-06-14-SC
August 29, 2023

Each RTCDC or SDCDC in a multi-sala court station with three


branches or more shall be composed of the RTC/SDC Executiv~ Judge as
Chairperson, and three RTC/SDC judges and the RTC/SDC Clerk of Court
(COC) as members. Each RTCDC/SDCDC .in a multi-sala court with only
two branches shall be composed of the R TC/SDC Executive Judge as
Chairperson and the other RTC/SDC Judge and the RTC/SDC COC as
members. Each RTCDC/SDCDC in a single-sala court shall be composed
of the RTC/SDC Judge as Chairperson and the RTC/SDC COC as member.

3. Municipal Trial Court, JVIunicipal Circuit Trial Court,


Municipal Trial Court in Cities, and Metropolitan Trial Court
Disposal Committee (MCTCDC) and Shari'ah Circuit Court
Disposal Committee (SCCDC)

An MCTCDC or SCCDC shall be created for each of the court


stations (whether multi-sala or singie-sala) in the country, as the case may
be. The Executive Judges of the MCTC and SCC shall be designated ex
officio Chairpersons of the MCTCDC and SCCDC, respectively, in the
station. The Chairperson of the MCTCDC and the SC CDC shall take charge
of the disposal of unserviceable properties of the MCTCs and the SCCs in
their respective stations.

Each MCTCDC or SCCDC in a multi-sala court station with three


branches or more shall be composed of the MCTC/SDC Executive Judge as
Chairperson and three MCTCDC/SCCDC judges and the MCTC/SDC COC
as members. Each MCTCDC/SCCDC in a multi-sala court with only two
branches shall be composed of the MCTC/SCDC Executive Judge as
Chairperson and the other MCTC/SCC Judge and the MCTC/SCC COC as
members. Each MCTCDC/SCCDC in a single-sala court shall be composed
of the MCTC/SCC Judge as Chairperson and the MCTC/SCC COC as
member.

IV. Procedure Prior to Disposal

1. Upon constitution of the Disposal Committee and every semester


thereafter, the Responsible Officer shrtll carry out a physical inspection of
the court properties over which he/she has disposal authority to

(a) inventory all properties within the said court station or office;
(b) request copies of the list of properties issued to" the court/s or
offices under his/her authority and request the corresponding
copies of the Memorandum Receipts therefor for purposes of
reconciliation; and
(c) require each court or office to submit a list of all unserviceable
properties for disposal in the custody.

The Responsible Officer shall maintain a secure, digitized record of


the said inventory. Thereafter, every semester, the Responsible Officer shall
Notice of Resolution - 10 - A.l\1. No. 23-06-14-SC
August 29, 2023

regularly update the inventory of properties within the court in which he/she
has authority. (Form 1)

2. The, inventory of the Responsible Officer, as of the semester of


reporting, and the list of the unserviceable properties for disposal submitted
by each court or office under his/her disposal authority shall contain the
following details:

(a) The property number and other specifications necessary for


establishing the correct identification of the properties
inventoried.
(b) A detailed description of the nature and condition of the
properties, including a detennination of whether any of the
properties are still operational, under repair, repairable, or
beyond repair and a description of the extent of use, mileage,
rate of depreciation, and any excessive wear and tear of the
items.
(c) Where applicable, a list of the missing parts and the extent of
damage that renders any of the properties classifiable as
unserviceable.
(d) The appraised value of the properties, if available.

3. After the submission of the list of unserviceable properties by the


courts and offices in the station, the Responsible Officer shall determine that
properties may be replaced or repaired under warranty. The Responsible
Officer shall then proceed to have such properties replaced or repaired and
cause them to be stored in a location separate from disposable properties to
ensure that their value will not be impaired.

Any remaining properties that can neither be replaced nor repaired


shall be included in the list for disposal using such mode or option that is
most advantageous to the Judiciary.

4. The Responsible Officer in the lower courts shall notify the


Prope1iy Division of OCA of its intent to dispose of the unserviceable
property one month prior to disposal, copy furnished COA.

The Notice of Disposal shall contain a complete plan outlining the


modes of disposal it will adopt, including, in case of failure of public auction
or negotiated sale, the resort to other modes such as transfer to other
government agencies within a predetY.rmined period.

If ho disapproval is received by the Responsible Officer from OCA


within such period, the Responsible Officer shall proceed with the disposal
as if OCA had approved it.

5. The Responsible Officer shall ensure that unserviceable properties


are, prior to disposal while in the custody of the court stations and offices to
Notice of Resolution - 11 - A.M. No. 23-06-14-SC
August 29, 2023

which they are assigned, kept in a secure location and not used once
disengaged from service so as not to impair the value or condition thereof
and to minimize the risk of theft, damage, loss, or deterioration.

To this end, the Responsible Officer may request authority from OCA
to lease real property suitable for the storage of unserviceable properties
subject to procurement laws.

6. The Responsible Officer shall ensure that the notice of disposal of


the property shall contain an adequate description of the property to be
disposed of to avoid the need for further information or clarification.

V. Modes of Disposal

Unserviceable property may be disposed of by trade-in, transfer to


other offices of the Judiciary, sale to personnel, public aucti'i:m or bidding,
sale through negotiation after two unsuccessful public biddings or failure of
public auction, transfer without costs to other government agencies or public
offices, or destruction or condemnation. The Disposal Committee shall
undertake the mode of disposal that is most advantageous, i.e., most cost-
effective and -efficient, to the Judiciary.

A. Trade-in

1. Unserviceable properties may be traded in for upgraded


items.

2. To ensure reasonable options for trade-in, the Disposal


Committee shall obtain trade-i'h offers from at least three bidders.
Such offers shall be obtained by a request sent by telephone or e-mail
to a company that sells property similar to the one being disposed of.
(Form 2)

3. The requested companies shall be allowed a period of


seven days from their receipt of the request to submit their offer for
trade-in. After the lapse of the period, the Responsible Officer shall
commence evaluation of the trade in offers received.

4. In choosing the bidder to trade in the item being disposed


of, the Responsible Officer shall take into consideration the price that
represents a fair value for the item being traded in. •

B. Transfer to Other Offices

1. The Disposal Com,p1ittee shall, every semester, report to


the SC or OCA Property Division, as the case may be,
(i) unserviceable properties and (ii)· new or additional properties
Notice of Resolution - 12 - A.M. No. 23-06-14-SC
August 29, 2023

required for the efficient functioning of the court/s under his/her


j urisdi cti on.

2. The SC or OCA Property Division shall then cause to be


transferred excess serviceable properties from other courts or offices
to the appropriate court, taking into consideration the Guiding
Principles stated above, within 15 calendar days from receipt of the
semestral report.

C. Sale to Personnel

1. Sale to personnel shall not be seen as a staff entitlement


but merely a disposal option selected by the Disposal Committee _to
maximize returns on as~et disposal.

2. Sale to personnel shall, for the SC property, be conducted


by- the Committee on Bids; and for the property of the lower courts,
by the applicable Disposal Committee on an as-needed basis.

3. In order to determine the best price for the unserviceable


property and ensure fairness in the sale process, the Disposal
Committee shall ensure the widest possible participation of personnel
by posting a notice of sale in three prominent areas in the Hall of
Justice or the building in which the court is located. The notice shall
state the description of the unserviceable property, the minimum
allowable price for the prope1iy, the date time and place for the
opening of bids for the property, the location where the property is
stored, the dates when the property may be inspected, and the dates
when bids may be submitted. The bids shall be submitted to the
Responsible Officer during office hours within the dates stated in the
notice. After the lapse of the specified period for submission of bids,
no further bids shall be received.

4. The Responsible Officer, or in the case of the Committee


on Bids, the Committee Secretary, shall number the submitted bids
according to the order in which these were received.

5. The opening of bids shall be conducted in the presence of


the personnel who submitted their bid for the property to be dispose
of.

6. The prope1iy shall be awarded to the highest bidder


complying with the minimum allowable price.

D. Public Auction or Bidding

.
Notice of Resolution - 13 - A.M. No. 23-06-14-SC
August 29, 2023

1. Public auction or bidding shall, for the SC property, be


conducted by the Committee on Bids; and for the property of the
lower cornis, by the concerned Disposal Committee.

2. The appropriate D'isposal Committee shall comply with


prevailing publication requirements prior to actual bidding or auction ..

The Disposal Committee shall ensure that the, returns to be


gained from the auction shall, at least, exceed the cost of publication.
In case the cost of publication exceeds the expected returns, posting in
two conspicuous places for a period of 10 days prior to the auction
shall be made instead. • OCA shall set up a video conference on the
date and time of the intended public auction or bidding.

3. The Disposal Committee shall likewise comply with


prevailing requirements for the opening and awarding of bids m
public auctions or bidding.

E. Sale Through Negotiation

1. After two unsuccessful public biddings, the Disposal


Committee may dispose of the property by sale through negotiation.
For this purpose, the Committee on Bids, in the case of the SC, and
the Disposal Committee, for lower courts, shall certify to the
unsuccessful public biddings. In such an event, there should be at
least three members of the Committee (SC) and the Responsible
Officer (lower courts) to conduct a sale through negotiation.

2. Sale through negotiation shall be subject to such


competition as is feasible.

F. Transfer Without Cost

1. Transfer to another government agency shall be resorted


to when trade-in or transfer to other offices of unserviceable property
is inappropriate or impractical· and when the attempted sale of the said
property has produced no result; provided that such transfer shall be
without cost.

Transfer without cost may also be resorted to for properties


seven years or older since acquisition and for information technology
equipment such as computers, which are five years or older.

2. The transfer shall be accepted by the head of the agency


or the duly authorized representative.

G. Destruction or Condemnation
Notice of Resolution - 14 - A.:M. No. 23-06-14-SC
August 29, 2023

l. Destruction or condemnation may be resorted to under


any of the following circumstances:

(a) The property no longer has commercial value. No


commercial value means that the property has been
determined to ha;ye neither utility nor monetary value
either as an item or as scrap.

(b) The property is beyond economic repair.

(c) The property has no willing receiver.

(d) The cost of upkeep, handling, and storage of the property


for sale would be greater than its appraisal value.

(e) A law or regulation requires destruction or condemnation


of the property.

(f) Written instructions by a duly authorized official (health,


safety, or security officer) for direct destruction or
condemnation.

2. Destruction or o.ondemnation may be done through


burning (subject to the provisions of the Clean Air Act), pounding or
th1~owing beyond recovery, and the like.

3. Written Notice of the destruction of the property shall be


given to COA within 10 days from the said destruction.

4. A Waste Materials Report (WMR) (Form 3) shall be


prepared by the Responsible Officer to document the destruction or
condemnation of the property, copy furnished OCA and COA.

H. Additional Procedures for Certain Properties

1. Items of Cultural Value

(a) Properties that constitute items of genuine heritage and


cultural value must be preserved for future generations.
This items inclu'cle gifts and donations from foreign
governments and individuals received for the court where
the recipient is assigned, or for the Judiciary as an
institution, or otherwise given to the recipient not in the
latter's personal capacity or in appreciation of the
recipient. The recipient may, however, donate an item
received in his/her personal capacity to the court where
he/she is assigned or to the Judiciary as an institution, in
Notice of Resolution - rs - A.:M. No. 23-06-14-SC
August 29, 2023

which case it shall be acted upon in accordance with this


Rules.

(b) Before disposing of any property, the Disposal


Committee shall first determine whether the items may
be considered of cultural value, which organizations are
suitable custodians of the items, and whether to sell, lend,
or donate the items on a long-term basis. In making such
a determination, the Disposal Committee shall also
consider the capacity of the court to preserve the item.

(c) When disposing of items of cultural value,. it is not


always appropriate to seek the best available net return.
When offering itenis to museums, special interest groups,
or the community, it is important to consider the
organization's capacity to purchase, maintain, and care
for the items. In some circumstances, it. may be more
desirable to accept an offer that is less than the market
value to ensure that the items are preserved by the
appropriate organization or institution.

2. Technology Property

(a) Technology property shall be understood to include such


equipment as computers, printers, modems, fax
machines, automatic voltage regulators, and similar
equipment including the software contained therein.

(b) Prior to disposing of technology property, the Disposal


Committee shall eq,sure that

b. l. All storage media, such as hard disks, are properly


erased so that data is unrecoverable. If data cannot be erased
due to a non-functioning device, then the st0rage medium
should be physically damaged to prevent recovery of data. In
case of the latter, notice shall be given to the buyer that the
storage medium is so damaged.

b.2. All configuration data from computers, print


servers, communications equipment, etc. shall be erased so that
no network information can be retrieved. All data on a
computer shall be checked, archived, and destroyed as
necessary.

b.3. Software licenses for the computer _ shall be


recovered and transfen-ed to the appropriate personnel.
Notice of Resolution -··16 - A.M. No. 23-06-14-SC
August 29, 2023

(c) In disposing of technology property, it must be


considered that an improved return on disposal can be
achieved where the equipment is seen to be in working
order prior to it being taken out of service.

(d) • In disposing of software, it is important to determine


whether it is owned or licensed by the Judiciary. If the
status is unclear, advice from the Property Division and
the SC Management Information Systems Office
(MISO) must be sought. Software licenses may be
resold depending on the terms of the license. Sales must
include the original disks and documentation.

3. Vehicles

(a) The Property Officer for the SC and the Responsible


Officer for the lower courts shall maintain a record of all
expenses related to the maintenance of Judiciary vehicles
under their jurisdiction. (Form 4)

(b) Regardless of the estimated economic life of vehicles as


stated in a subsequent section when, based on the
aforementioned record, it becomes apparent that the cost
for maintaining a certain vehicle-consisting of costs of
repairs and consumables other than fuel and motor oil-
exceeds its potential resale value, the same may be
considered unserviceable by the Property Officer or
Responsible Officer and thus recommend the same for
disposal.

4. Intellectual Property

Intellectual property includes patents, trademarks, copyrights,


licenses, or any other items considered appropriate by the Property
pivision. The Office of the Chief Attorney of the SC has overall
responsibility for decisions on requests to assign or dispose of
intellectual property in which the Judiciary or the National
Government owns a copyright.

VI. Procedures Applicable to All Modes ofDisposal

1. After the disposal, the Disposal Committee or the Responsible


Officer must, within a period of 10 calendar days, fmnish the Financial
Management' and Budget Office, SC, or Financial Management Office,
OCA, for lower courts, and the Resident Auditor or local field auditor. a
WMR, Invoice Receipt of the property disposed, or instrument of
conveyance, as the case may be, to. support the dropping of the property
from the Books of Account.
Notice of Resolution - 17 - A.M. No. 23-06-14-SC
August 29, 2023

2. Likewise, after disposal, the Disposal Committee or the


Responsible Officer shall accomplish the Disposal Report (Form 5) and
submit the same to the Head of the Property Division. The Head of the
Property Division of OCA shall then consolidate all such forms· submitted
from the lower courts with disposals .. conducted by the SC into a Disposal
Report, and a copy shall be furnished to COA. The Head of the Property
Division shall also submit the consolidated report to the Chief of
Administrative Services and the Court Administrator for their appropriate
action and planning.

3. To ensure that disposals are undertaken in an efficient,


consistent, and equitable manner, the SC Property Division shall, once per
semester, evaluate the process and outcome of each disposal. Evaluations
should include all information and relevant facts about the disposal and
should document all decisions made to create an audit trail for future
reference. The audit and review of asset disposal processes may be included
in the SC's internal audit program.

4. The SC Property Division shall use the evaluations referred to


above to formulate cost-benefit models to assist in the selection of the most
appropriate disposal method and to identify risks and prepare arrangements
to effectively address such risks.

VII. Participation of Other Offices

1. The Office of Administrative Services, in coordination with the


Philippine Judicial Academy (PHILJA) and OCA, shall ensure that the
necessary personnel shall receive the required training or orientation to
effectively implement the provisions of this Rules. The training and
orientation of the said personnel shall be completed within six months from
the effectivity of this Rules .

2. The MISO shall design a computer program that will


accommodate the requirements of this Rules, with the end in view of
facilitating and/or automating the disposal process. The required computer
program shall be completed within six months from the effectivity of this
Rules. Upon completion of the program, the MISO, in coordination with the
PHILJA, shall ensure that the necessary personnel shall receive the required
training regarding the operation of the program.

3. In the interest of transparency and accountability, the Public


Information Office shall ensure that this Rules are published immediately
upon effectivity.

VIII. Transitory Provisions


Notice of Resolution - 18 - A.:M. No. 23-06-14-SC
August 29, 2023

The unserviceable properties identified in the compiled list, accessible


through this link: https://judiciaryph-
my.sharepoint.com/:x:/g/personal/ocacmo_scjudiciary_gov_ph/EVI95lceF
3hDiMQST9CxcSMBiSV525E6DKJnJTjRqllnGA?e=xe302o&CID=ec210
3be-d66a-c3a8-68ac-183046a0b401, ··generated by the Property Division of
OCA, comprising of the unserviceable properties tagged and identified from
trial courts nationwide shall be disposed of immediately upon effectivity of
this Rules through any of the authorized modes mentioned without the need
of any other procedure or authority subject only to the mandatory notice to
COA.··

OCA is directed to immediately implement this Rules, which shall


take effect after publication.

August 29, 2023" (52)

By authority of the Court:

-M~-CUEVAS
Clerk of Court ,.,»
Notice of Resolution ~ 19 - A.M. No. 23-06-14-SC
August 29, 2023

HON. ALEXANDER G. GESMUNDO (x) HON. ROSMARI D. CARANDANG [Retired Justice] (x)
Chief Justice Chancellor •
HON. MARVIC MARIO VICTOR F. LEONEN (x) PHILJA, Supreme Court
Senior Associate Justice
HON. ALFREDO BENJAMIN S. CAGUIOA (x) HON. ANGELINASANDOVAL-GUTIERREZ (x)
HON. RAMON PAULL. HERNANDO (x) Acting Chairperson
HON. AMY C. LAZARO-JAVIER (x) HON. RODOLFO A. PONFERRADA (x)
HON. HENRI JEAN PAUL B. INTING (x) Second Regular Member •
HON. RODIL V. ZALAMEDA (x) HON. CIELITO N. MINDARO-GfWLLA (x)
HON. MARIO V. LOPEZ (x) Third Regular Member
HON. SAMUEL H. GAERLAN (x) Judicial Integrity Board
HON. RICARDO R. ROSARIO (x) Ground Floor, Old Building, Supreme Court
HON. JHOSEP Y. LOPEZ (x)
HON. JAPAR B. DIMMMPAO (x) Judicial and Bar Council
HON. JOSE MIDAS P. MARQUEZ (x) HON. JOSE C. MENDOZA (x)
HON. ANTONIO T. KHO, JR. (x) HON. TORIBIO E. ILAO, JR. (x)
HON. MARIA FILOMENA D. SINGH (x) HON. NESAURO H. FIRME (x)
As?ociate Justices HON. ERLINDA PINERA UY (x)
Supreme Court Supreme Court

OFFICE OF THE CLERK OF COURT - EN BANC (x) ATTY. MARIA CARINA A. MATAMMU-CUNANAN (x)
Supreme Court Deputy Clerk of Court and Chief Administrative Officer
Office of Administrative Services, Supreme Court •
ATTY. MARIA TERESA B. SIBULO (x)
Division Clerk of Court ATTY. MARILYN I. DE JOYA (x)
Office of the Division Clerk of Court (ODCC) - Deputy Clerk of Court and Chief
First Division Fiscal Management and Budget Office
Supreme Court Supreme Court

ATTY. TERESITA A. TUAZON (x) ATTY. ANNALIZA S. TY-CAPACITE (x)


Division Clerk of Court Deputy Clerk of Court and Reporter
ODCC - Second Division Office of the Reporter, Supreme Court
Supreme Court
ATTY. MARIA VICTORIA GLEORESTY
ATTY. MISAEL DOMINGO C. BATTUNG Ill (x) SP. GUERRA (x)
Division Clerk of Court Deputy Clerk of Court and Chief Attorney
ODCC - Third Division Office of the Chief Attorney
Supreme Court . Supreme Court

ATTY. BASILIA T. RINGOL (x) ATTY. LAURA C.H. DEL ROSARIO (x)
Deputy Clerk of Court and Deputy Clerk of Court and
Chief, Judicial Records Office Judicial Reform Program Administrator
Supreme Court Program Management Office
Supreme Court
ATTY. AMOR P. ENTILA (x)
Officer-in-Charge ATTY. EDUARDO C. TOLENTINO (x)
Office of the Bar-Confidant Acting Executive Director
Supreme Court Office of the Executive Director
Judicial Integrity Board
ATTY. MARIFE M. LOMIBAO-CUEVAS (x) 2nd Floor, SC-CA Building, Supreme Court
Clerk of Court and Chairperson
'AJTY. MARIA LUISA M. SANTILLA (x) ATTY. JED SHERWIN G. UY (x) •
Deputy Clerk of Court and Executive Officer Deputy Clerk of Court and
and Secretariat Chief Technology Officer
Supreme Court Disposal Committee Management Information Systems Office
Office of the Clerk of Court - En Banc Supreme Court
Supreme Court
Notice of Resolution - 20 - A.M. No. 23-06-14-SC
August29,2023

Court Administrator HON. MARIFLOR P. PUNZALAN CASTILLO (x)


*HON. RAUL B. VILLANUEVA (x) Presiding Justice
Deputy Court Administrators ATTY. ANITA JAMERLAN REY (x)
HON. JENNY LIND R. ALDECOA-DELORINO (x) Executive Clerk of Court IV
HON. LEO T. MADRAZO (x) .. Court of Appeals
Assistant Court Administrators Manila
HON. LILIAN C. BARRIBAL-CO (x)
HON. MARIA REGINAADORACION HON. AMPARO M. CABOTAJE-TANG (x)
FILOMENA M. IGNACIO (x) Presiding Justice
Supreme Court " ATTY. MA. TERESA S. PABULAYAN (x)
Executive Clerk of Court IV
ATTY. MARIA TERESA 0. DEMESA-RAZAL (x) Sandiganbayan
OIC Chief of Office, Office of Administrative ·services Commonwealth Ave., Diliman
ATTY. GILDA SUMPO-GARCIA (x) 1121 Quezon City
OIC Chief of Office, Financial Management Office
ATTY. MARILOU M. ANIGAN (x) HON. ROMAN G. DEL ROSARIO (x)
Chief, Court Management Office Presiding Justice
ATTY. ANALIZA 0. THOMAS-PARRA (x) ATTY. DANILO IB. FERNANDO (x)
OIC Chief of Office, Legal Office Executive Clerk of Court IV
Office of the Court Administrator, Supreme Court Court of Tax Appeals
National Government Center
ATTY. RAQUEL M. LADRILLANO (x) Agham Road, Diliman 1128 Quezon City
Chief, Office on Halls of Justice
Office of the Court Administrator, Supreme Court ATTY. ROMULO A. PARAS, JR. (x)
General Counsel
DR. ELMER A. RUNEZ (x) Judicial Integrity Board
SC Senior Chief Staff Officer 2nd Floor, SC-CA Building
Medical and Dental Services, Supreme Court Supreme Court

MR. RAMIL ANGEL I. MENDOZA (x) ATTY. LEAH EASTER P. LAJA-OTTO (x)
SC Senior Chief Staff Officer Executive Officer
Printing Services, Supreme Court JBC, Supreme Court

ATTY. JOYCE JAZMIN G. DIMAISIP-CUNANAN (x) ATTY. RONALD PAZ CARAIG (x)
Acting SC Senior Chief Staff Officer Executive Officer
Library Services, Supreme Court Mandatory Continuing Legal Education Office
4th Fir., IBP Bldg.,15 Dona Julia Vargas Ave.
CHIEF JUDICIAL STAFF OFFICER (x) Ortigas Center, Pasig City
Personnel Division
Court of Appeals, Manila THE CHIEF (x)
Budget and Finance Division
CHIEF JUDICIAL STAFF OFFICER (x) Sandiganbayan
Fiscal Management and Budget Division Commonwealth Ave., Diliman
Court of Appeals, Manila 1121 Quezon City

THE CHIEF (x) THE CHIEF OF OFFICE (x)


Administrative Division Office of Administrative and Finance Services
Sandiganbayan Court of Tax Appeals
Commonwealth Ave., Diliman National Government Center
1121 Quezon City Agham Road, Diliman 1128 Quezon City

PUBLIC INFORMAT1ON OFFICE (x)


LIBRARY SERVICES (x)
~
[For uploading pursuant toA.M. No. 12-7-1-SC]
A.M. No. 23-06-14-SC
Sarah 082923 (SRes52) 042424
*Attention

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