What Your Supermarket Won't Tell You

While I was surfing the net, I read this one in one of Yahoo!'s Featured Articles from SmartMoney.com. Please read through it, because you might find helpful tips on how we can survive in this not-so-loose economy. Happy reading!

What Your Supermarket Won't Tell You

by Jim Rendon
Thursday, January 8, 2009provided by

1. “Feel the squeeze? Actually, so do we.”

When the economy slows and businesses begin to feel the heat, grocery stores are often exceptions to the rule. That’s because when consumers cut back on frills like eating out, they tend to make even more trips to the supermarket. Still, all bets may be off in the wake of the crash of 2008.

Citi Investment Research analyst Deborah Weinswig forecasts falling same-store sales growth at many of the major chains in 2009; for one, she sees top performer Kroger experiencing a decline in same-store sales growth, from about 5 percent in 2008 to 4 percent in the coming year. Meanwhile, supermarket chain Supervalu forecasts its own flat sales growth through 2009.

Even the big-box stores—now established contenders in the grocery industry—are facing tough headwinds in the wake of the market meltdown. Weinswig says she expects dips in same-store sales growth for BJ’s Wholesale Club, from 11 percent in 2008 to under 7 percent in 2009, and a drop from 8 to 6 percent growth over the same period for Costco. Bottom line, “it’s tough to pass through higher costs when consumers have such a laser-like focus on price,” says Mitchell Corwin, a senior equity analyst for Morningstar.

2. “You’re getting less for the same price.”

When Linda Edwards, a nurse in East Windsor, N.J., picked up her usual $4.99 jug of orange juice at Shop Rite this summer, she was surprised to discover that it contained 7 ounces less than it normally did. A few months later she noticed her Skippy peanut butter and chicken strips were also lighter but not any cheaper. “Everything seems to be shrinking, but my family hasn’t shrunk,” says the single mother of five boys. A spokesperson for Unilever, which owns Skippy, says reducing product size is one way the company is coping with higher food and fuel costs.

Manufacturers know that in a tight economy, consumers are driven away by price hikes, so they quietly shrink products, hoping a few ounces here or there won’t be missed, says Alexia Howard, a senior research analyst for Sanford C. Bernstein. But it’s starting to backfire, says Ben Popken, editor of Consumerist.com, who says he’s getting more complaints from readers about shrinking products. “People are really sensitive to any decrease in their purchasing power,” he says. Popken recommends checking the unit price between brands to see whether you’re paying the same price for less food.

3. “We jack up prices where you’re least likely to notice.”

When times are tough, super-markets know vigilant shoppers notice even tiny changes in the price of foods like milk, cereal, bread and cheese. In fact, there are about 500 such products, and stores raise prices on these staples at their own peril.

So how do markets deal with rising food costs? They tinker with the price of the roughly 45,000 items people don’t buy regularly enough to have a fixed idea of their cost—tacking on 3 to 4 percent to specialty products like, say, gourmet pasta sauce or fresh-squeezed juices, without consumers noticing. “There’s an opportunity to make some margin back on those items,” says Jim Hertel, managing partner of Willard Bishop, a consultant for the industry.

But don’t expect the savings to be passed on to you when costs come down. Many manufacturers lock in prices well in advance, and they often hold off on bringing prices back down to make up for the resulting losses, says Howard. One way to be sure you’re getting the best deal when prices drop: Stick to basics. Products like coffee and meat are likely “to reflect their underlying costs more quickly than most other foods,” Howard says.

4. “You can’t always believe our nutrition claims.”

It seems people are more concerned with their health these days, but nutrition labeling on most foods can be tough to decipher. Hoping to bridge the gap, grocery chain Hannaford Bros. developed a program called Guiding Stars, which posts nutrition ratings of one to three stars on the shelf tags of some products. “We’d like to see the FDA adopt the program nationally,” says Bruce Silverglade, legal affairs director at the Center for Science in the Public Interest.

Sounds great, but according to a Government Accountability Office report, the FDA hasn’t randomly checked the accuracy of nutrition labeling in over a decade, and of those products it has tested due to obvious red flags, more than 20 percent had errors. (An FDA spokesperson says random sampling isn’t necessary; the FDA tests products according to guidelines set by its Office of Regulatory Affairs.) With so little oversight, consumers can’t fully trust manufacturers’ nutrition labels or any ratings system based on that data.

“It’s the manufacturer’s responsibility to provide accurate information—that’s all we can use to assess products,” says Julie Greene, director of healthy living for Hannaford Bros.

5. “We won’t take your coupons.”

The Sunday paper used to be the source for grocery coupons. But now they’re increasingly available online, from sites like Coupons.com as well as manufacturers’ and supermarkets’ own Web pages. The problem is, they aren’t always easy to use. Over 10.6 million Internet coupons were redeemed last year, according to Carolina Marketing Services. While that amount is expected only to increase, it’s still a fraction of all coupons redeemed, and many stores are still unfamiliar with them.

That’s what 61-year-old retiree C.J. Shearrer discovered when he printed out about $30 worth of coupons and took them to a Wal-Mart in Midwest City, Okla. Shearrer says the manager told him the store didn’t accept online coupons; only when he showed him a printout of Wal-Mart’s coupon policy, says Shearrer, did the manager agree to take them. (A company spokesperson says Wal-Mart accepts one Internet coupon per item per customer, as long as it’s legitimate and scans at the register.) Stephanie Nelson, founder of information site CouponMom.com, suggests doing what Shearrer did: Bring along a copy of a given store’s coupon policy, which should be found on its Web site.

6. “Our loyalty cards help us cater to our biggest spenders...”

Many supermarkets offer shoppers loyalty cards that get scanned at checkout for savings on specially marked products. But saving money isn’t what these cards are really about. Whenever you use your card, stores record your purchases in vast databases that contain years’ worth of your purchasing information. That means they know what you buy year after year, how often you shop and when a coupon influences your purchases. And they use

this information for everything from promoting new products to deciding what to stock.

More important, stores tap this data to target customers who buy lots of groceries on a regular basis. Woolf says that as much as 65 percent of a store’s sales are derived from these core shoppers, who make up just 12 to 25 percent of its customers. Loyalty-card programs allow stores to cater to these folks by sending them free samples, offering special bargains other shoppers don’t get and structuring discounts to reward them for their regular, expensive shopping trips. “Those customers who contribute more profits, you look after them better,” says Woolf.

7. “...but they’re not always your best bet for big savings.”

Stores that use these loyalty programs want you to think you’ll save big by participating. But that’s not always the case: Wal-Mart, which has no such program, undercuts competitors on price, and most stores without these programs match their regular prices to competitors’ discounted card prices. In many cases, these retailers may even be able to offer lower prices than stores with elaborate loyalty-card programs, says David Livingston, managing partner with industry consultant DJL Research. “Loyalty-card programs do add an expense for stores,” Livingston says. “And stores can offer the same bargains without the card programs.”

In the end, what do consumers get for handing over their data? It depends. According to Stephen Hoch, a marketing professor at the Wharton School of the University of Pennsylvania, loyalty-card discounts really just shift higher prices onto those without cards. And even the best rewards don’t always amount to much. Supermarkets have a tight profit margin of about 2 percent, making it “hard for supermarkets to give customers big rewards,” says Hoch.

8. “Big sales may not mean lower costs for you.”

Supermarkets know you want bargains. And they’ll use bargains to get you through the door, via promotional flyers and advertised discounts. But the key is to make sure they don’t give away too much once you get inside.

How do they do it? For starters, atmosphere. Supermarkets know the first thing you see when you walk in sets the tone for your shopping trip. If it puts sale items or highly discounted products near the entrance, it can create the impression there’s real value to be had, whether that’s the case or not, says consultant Hertel. That’s also why space at the end of aisles is often used to display a small number of sale items. Stores know that you’re likely to buy lots of other products while you’re shopping—many of which will not be on sale or will be store brands—helping to cover the discounts on promotional items. Indeed, studies show that supermarkets have been effective at limiting giveaways, says K. Sudhir, a professor at the Yale School of Management. “Stores want to create the perception that customers are getting a good deal,” he says. “But they don’t want everyone to get the lowest prices.”

9. “We may carry local produce, but we’re no farmer’s market.”

When former Chicago software engineer Michael Morowitz wants to buy strawberries, he waits until summer and looks for those grown locally. “Strawberries shipped to Chicago in February are never going to be as good as those grown nearby in June,” says Morowitz, who runs The Local Beet, a Web site about locally grown food in Chicago. Like Morowitz, more people are looking for goods from nearby farms as a way of getting better, fresher foods and supporting local growers, not to mention cutting down on pollution from transportation. And supermarkets have heard the call—so much so that megaretailer Wal-Mart now touts locally grown produce.

But it’s not as clear-cut as it sounds. For one thing, there’s no agreement on what local means. For example, Wal-Mart defines local produce as that grown within the same state, but in a large state like California, that doesn’t mean much. Also, it’s tough for big chains to find enough local farms to fulfill their needs, and smaller farms can struggle to keep up with a large chain’s demands, says Julia Stewart, a spokesperson for the Produce Marketing Association. In the case of Wal-Mart, some of its local suppliers are the same massive farms that normally provide its produce. “It just makes for a positive press release,” Livingston says. A Wal-Mart spokesperson says the company works with farms of many sizes and doesn’t preclude its local farmers from selling their produce elsewhere.

10. “We’re experts in human behavior.”

Marketers know a lot about how you shop and what’s likely to make you pick up a product. For example, stores have discovered that shoppers are more comfortable staying to the right as they move through a store, says Ron Larson, associate professor of marketing at Western Michigan University. How much difference does it make? According to market-research firm Sorensen Associates, shoppers moving counterclockwise spend
$2 more per trip than those who go the opposite direction.

How to avoid getting psyched out by savvy marketing? Know what you want to buy before you enter the supermarket. Livingston recommends planning meals for the week and sticking firmly to your list once in the store. Also, grab the smallest cart that will hold all your items, and heed the old saw “Never shop when you’re hungry.”

Copyrighted, SmartMoney.com. All Rights Reserved.

Church oppose Balikatan in Bicol

Militants welcome Church’s opposition to Balikatan Urges other sectors to do the same The militant Bagong Alyansang Makabayan-Bikol (BAYAN-Bikol) welcomed the opposition of the Catholic Church against the planned Balikatan here in the region. This developed as Bishop Lucilo Quiambao of the Diocese of Legazpi, voiced out his view that the Balikatan will just be a bane to Bicolanos because civilians will be the ones caught in the crossfire when US troops are engaged in armed encounters. The bishop also said that prostitution would increase with the presence of US troops and the morality of our youth will be endangered. According to Tessa Lopez, public information officer of BAYAN-Bikol, “this is a positive development and we hope that this will encourage other sectors to speak up against Balikatan 09. Even the good bishop does not believe that the US troops will only be engaged on their so-called “humanitarian missions” because in every Balikatan exercise, war games and even actual combat operations are part of the package,” “We are calling on all patriotic Bicolanos to stand up and oppose this new type of invasion. Oragons should join rallies, sign petitions and participate in discussions opposing Balikatan, these are just some of the ways we can show our disgust against the US troops,” ended the militant leader.

Pandesal

Pandesal (or pan de sal; literally, salt bread) is a rounded bread usually eaten by Filipinos during breakfast. It is a bread made of flour, eggs, lard, yeast, sugar, and salt. It has a soft, powdery texture and can be prepared in a number of ways by using numerous sandwich spreads. It is also used for dipping into tsokolate (from Spanish chocolate), a Spanish chocolate drink very much like hot chocolate but with pure cocoa as its main ingredient. Despite the literal meaning of its name, the taste of pandesal varies from bland to slightly sweet. It usually costs one Peso (about 4 cents U.S.), with larger varieties costing 2 Pesos.
Pandesal is the most popular yeast-raised bread in the Philippines. They are shaped like garrison caps due to its unique method of forming. The dough is rolled into long logs (baston) that are rolled in fine bread crumbs first before being cut into individual portions with a dull dough cutter and then allowed to rise and baked on sheet pans. Its taste and texture closely resemble those of the very popular rolls of the Dominican Republic called Pan de Agua and Mexico’s most popular type of bread Bolillos for the reason that they all use a lean type of dough and follow similar techniques that were learned from Spanish or Spanish trained bakers early in their history. As in most commercially produced food items, they vary in quality to meet taste requirements and economic standards of various communities in the Philippines where there are bakers in particular cities and towns that simply produce better quality pandesal such as in certain towns of Pampanga and Bulacan so that they command higher price, gain renown and their pandesal sought after by consumers all over the region.

That was the short history of pandesal here in the Philippines.

Aside from the facts mentioned above, pandesal, for the Filipino people, is the bread of the masses. In same manner, I think it is right to say that pandesal is the measuring tool of the Philippine's real economic situation.

Just last month, President Gloria Macapagal-Arroyo proudly announced to the whole world that our economy is becoming good. She was even defensive when a reporter asked a question about the credibility of her report. Know what she answered her? "Ayan ang statistics."

Yeah, nagtaray ang Lola Gloring mo. But with the price increase of pandesal, its future price increase, the alarming oil-price hike, and the Php 12.00 price increase of LPG within a month, the question now is, "Does she has the right na magtaray to those who question her good economic standing?"

As mentioned above, pandesal costs only Php 1.00 each piece. If its size before is as big as a man's fist, today, because of its too small size, you can eat pandesal in one bite. And worse, its price will increase on Monday; meaning, there will no longer be any bread that will cost you only Php 1.00. What will happen now to the masses?

Government statistics may say that poverty rate decreased, a good implication of the government's actions in addressing this root-problem of the society, reality however will falsify these statistics. No one was alleviated from this problem, worse, their worse condition became destitute. Even the independent SWS Survey said that last September this year the poverty rate increased by 21.5%, higher than that of the previous months, indication of a worsening scenario. Practical example: sugar costs only Php 6.00 before, now it's Php 9.00 per 1/4 kilo. And I am not hoping that its price will decrease. In the present situation of the country, its better not to hope but rather look for a job and earn something to augment to the expenses for the already high prices of commodities. However, the next problem will be the lack of jobs.

Going back, what will the toiling masses have for breakfast or snacks now? Php 1.00 has no more value today in the Philippines. No one can be sustained by a peso now, even one pandesal will be imposible to be bought by it. Juan dela Cruz will have to tighten his belt once again, till when he has to tighten his belt, only time knows. And, no one's hoping that Juan dela Cruz will ever loosen his belt even once.

I just want to share one instance here.

President Arroyo has a friendster account, maybe one of here fans. And all of the posted bulletins are all good news about her administration - good economy for example.
And I even had a hot discussion with the moderator of that account. He told me to visit the statistics and even said that I do not know how to do math and have no idea about economics. I told him I definitely know how to do math for my minor subject is math.

And now, all I wanted to tell him: HERE IS THE PROOF OF THE DESTITUTE Conditons of the country. Once again i would like to tell him this: Bring your statistics to hell. Look at the destitute people around you and better shut your mouth and eat yourstatistics.

P.S. When you throw your statistics for to hell, please include the President GMA.

The Coca-Cola Commercial

Coca-Cola's new commercial is something I will highly recommend to everyone.

Personally, I really hate those video games which most of the children - school children most especially, play nowadays. And the fact that those school children are only 8-12 years old! Based on my baby research on the cause of Children's Violence, focusing mainly on Televiolence, todays culture of violence among adults play a major role in shaping violent children. And modern technology - internet, video games, television, et cetera, contribute largely on that existing culture.

A very good example to that is the Simpson's show. It is being rated as a Child show but the kind of moral and culture that it presents is a culture of violence, immorality and it is for adults and not for children. Imagine, adults doing acts of violence, immodesty and even immorality, with children watching them. Maybe in their culture it is just normal, but how about us, where such things are taboo? No one can deny the violence that it shows too. Its like, "Uuhhh! What's that?!"

Violence in the television is very rampant in general. According to studies and researches, children inhibiting violence in them normally are television addicts. Even cartoons and anime programs are so violent in nature. Those children or adolescents would normally stay late at night watching t.v. Television is such a very strong and effective channel thru which anyone can induce to a person anything that that person wants to induce to another - whether be it good or bad.

Going back to the Coke commercial, that video/computer game used in the commercial, which name i do not know (not so familiar with video and computer games, especially violent ones), is very violent. I have seen it once played by children in a computer cafe near our residence. The attitude of the man in the Coke commercial is the irony of the real character in the game - violent, unkind, criminal, reckless, all negative attitude of a man that you can think of. With those circumstances, and with the fact that many children are playing and even advocating that game, no one will be able to deny the truth of its negative influence on the young minds of the children. The man in the game will drive so recklessly(!!!), will drive over anyone he wishes, will steal another man's car, every evil act that he was given a chance to do, he did it.

But the Coke commercial soften, and even changed the image of that character. I've heard one child said, "Ang bait naman ng lalaki." ("The man is so kind.") If only all those people behind this what we call technology, will use them for the good of everyone, for the growth of every human being, then, there will be no more problems in this society - no violence, no misunderstanding, only LOVE. And any LOVE done to another man will surely be repaid with LOVE.

HUMAN SECURITY ACT OF 2007 (REPUBLIC ACT 9372)

Last month of July, the Human Security Act of 2007 was implemented in spite of the numerous protests against this repressive Anti-Terror Law. What is really this HSA of 2007? Now, many people who protests against this law are from the left or known critics of the government, so the Filipino people, most of whom are apathetic and allergic to these leftists, say that this is just a nonsense move and protest for the sake of protesting. But then, I am leaving the decision to you my dear people. You read this, and you decide if the protests are for the sake of protesting, or does they really have a point.

Republic of the Philippines

CONGRESS OF THE PHILIPPINES

THIRTEENTH CONGRESS

Third Regular Session

REPUBLIC ACT NO. 9372

AN ACT
TO SECURE THE STATE AND PROTECT OUR PEOPLE FROM TERRORISM

Be it enacted by the Senate and House of Representatives of the Philippines in Congress assembled:

SECTION 1. Short Title. – This Act shall henceforth be known as the “Human Security Act of
2007.”

SEC. 2. Declaration of Policy. – It is declared a policy of the State to protect life, liberty, and property from acts of terrorism, to condemn terrorism as inimical and dangerous to the national security of the country and to the welfare of the people, and to make terrorism a crime against the Filipino people, against humanity, and against the law of nations. In the implementation of the policy stated above, the State shall uphold the basic rights and fundamental liberties of the people as enshrined in the constitution. The State recognizes that the fight against terrorism requires a comprehensive approach, comprising political, economic, diplomatic, military, and legal means duly taking into account the root causes of terrorism without acknowledging these as justifications for terrorist and/or criminal activities. Such measures shall include conflict management and post-conflict peace-building, addressing the roots of conflict by building state capacity and promoting equitable economic development. Nothing in this Act shall be interpreted as a curtailment, restriction or diminution of constitutionally recognized powers of the executive branch of the government. It is to be understood, however, that the exercise of the constitutionally recognized powers of the executive department of the government shall not
prejudice respect for human rights which shall be absolute and protected at all times.

SEC. 3. Terrorism. – Any person who commits an act punishable under any of the following
provisions of the Revised Penal Code:
A. Article 122 (Piracy in General and Mutiny in the High Seas or in the Philippine
Waters);
B. Article 134 (Rebellion or Insurrection);
C. Article 134-a (Coup d‘Etat), including acts committed by private persons;
D. Article 248 (Murder);
E. Article 267 (Kidnapping and Serious Illegal Detention);
F. Article 324 (Crimes Involving Destruction, or under
(1) Presidential Decree No. 1613 (The Law on Arson);
(2) Republic Act No. 6969 (Toxic Substances and Hazardous and Nuclear Waste Control Act of 1990);
(3) Republic Act No. 5207, (Atomic Energy Regulatory and Liability Act of 1968);
(4) Republic Act No. 6235 (Anti-Hijacking Law);
(5) Presidential Decree No. 532 (Anti-piracy and Anti-highway Robbery Law of 1974); and,
(6) Presidential Decree No. 1866, as amended (Decree Codifying the Laws on Illegal and
Unlawful Possession, Manufacture, Dealing in, Acquisition or Disposition of Firearms, Ammunitions or Explosives) thereby sowing and creating a condition of widespread and extraordinary fear and panic among the populace, in order to coerce the government to give in to an unlawful demand shall be guilty of the crime of terrorism and shall suffer the penalty of forty (40) years of imprisonment, without the benefit of parole as provided for under Act No. 4103, otherwise known as the Indeterminate Sentence Law, as amended.

SEC. 4. Conspiracy to Commit Terrorism. – Persons who conspire to commit the crime of terrorism shall suffer the penalty of forty (40) years of imprisonment. There is conspiracy when two or more persons come to an agreement concerning the commission of the crime of terrorism as defined in Section 3 hereof and decide to commit the same.

SEC. 5. Accomplice. – Any person who, not being a principal under Article 17 of the Revised
Penal Code or a conspirator as defined in Section 4 hereof, cooperates in the execution of either the crime of terrorism or conspiracy to commit terrorism by previous or simultaneous acts shall suffer the penalty of from seventeen (17) years, four (4) months one day to twenty (20) years of imprisonment.

SEC. 6. Accessory. – Any person who, having knowledge of the commission of the crime of
terrorism or conspiracy to commit terrorism, and without having participated therein, either as principal or accomplice under Articles 17 and 18 of the Revised Penal Code, takes part subsequent to its commission in any of the following manner: (a) by profiting himself or assisting the offender to profit by the effects of the crime; (b) by concealing or destroying the body of the crime, or the effects, or instruments thereof, in order to prevent its discovery; (c) by harboring, concealing, or assisting in the escape of the principal or conspirator of the crime, shall suffer the penalty of ten (10) years and one day to twelve (12) years of imprisonment. Notwithstanding the above paragraph, the penalties prescribed for accessories shall not be imposed upon those who are such with respect to their spouses, ascendants, descendants, legitimate, natural, and adopted brothers and sisters, or relatives by affinity within the same degrees, with the single
exception of accessories falling within the provisions of subparagraph (a).

SEC. 7. Surveillance of Suspects and Interception and Recording of Communications. – The
provisions of Republic Act No. 4200 (Anti-wire Tapping Law) to the contrary notwithstanding, a police or law enforcement official and the members of his team may, upon a written order of the Court of Appeals, listen to, intercept and record, with the use of any mode, form, kind or type of electronic or other surveillance equipment or intercepting and tracking devices, or with the use of any other suitable ways and means for that purpose, any communication, message, conversation, discussion, or spoken or written words between members of a judicially declared and outlawed terrorist organization, association, or group of persons or of any person charged with or suspected of the crime of terrorism or conspiracy to commit terrorism. Provided, That surveillance, interception and recording of communications between lawyers and clients, doctors and patients, journalists and their sources and confidential business correspondence shall not be authorized.

SEC. 8. Formal Application for Judicial Authorization. – The written order of the authorizing division of the Court of Appeals to track down, tap, listen to, intercept, and record communications, messages, conversations, discussions, or spoken or written words of any person suspected of the crime of terrorism or the crime of conspiracy to commit terrorism shall only be granted by the authorizing division of the Court of Appeals upon an ex parte written application of a police or of a law enforcement official who has been duly authorized in writing by the Anti-Terrorism Council created in Section 53 of this Act to file such ex parte application, and upon examination under oath or affirmation of the applicant and the witnesses he may
produce to establish: (a) that there is probable cause to believe based on personal knowledge of facts or circumstances that the said crime of terrorism or conspiracy to commit terrorism has been committed, or is being committed, or is about to be committed; (b) that there is probable cause to believe based on personal knowledge of facts or circumstances that evidence, which is essential to the conviction of any charged or suspected person for, or to the solution or prevention of, any such crimes, will be obtained; and, (c) that there is no other effective means readily available for acquiring such evidence.

SEC. 9. Classification and Contents of the Order of the Court. – The written order granted by the authorizing division of the Court of Appeals as well as its order, if any, to extend or renew the same, the original application of the applicant, including his application to extend or renew, if any, and the written authorizations of the Anti-Terrorism Council shall be deemed and are hereby declared as classified information: Provided, That the person being surveilled or whose communications, letters, papers, messages, conversations. Discussions, spoken or written words and effects have been monitored, listened to, bugged or recorded by law enforcement authorities has the right to be informed of the acts done by the law enforcement authorities in the premises or to challenge, if he or she intends to do so, the legality of the interference before the Court of Appeals which issued the written order. The written order of the authorizing division of the Court of Appeals shall specify the following: (a) the identity, such as name and
address, if known, of the charged or suspected person whose communications, messages, conversations, discussions, or spoken or written words are to be tracked down, tapped, listened to, intercepted, and recorded and, in the case of radio, electronic, or telephonic (whether wireless or otherwise) communications, messages, conversations, discussions, or spoken or written words, the electronic transmission systems or the telephone numbers to be tracked down, tapped, listened to, intercepted, and recorded and their locations or if the person suspected of the crime of terrorism or conspiracy to commit terrorism is not fully known, such person shall be subject to continuous surveillance provided there is a reasonable ground to do so; (b) the identity (name, address, and the police or law enforcement organization) of the police or of the law enforcement official, including the individual identity (names, addresses, and the police or law enforcement organization) of the members of his team, judicially authorized to track down, tap, listen to, intercept, and record the communications, messages, conversations, discussions, or spoken or written words; (c) the offense or offenses committed, or being
committed, or sought to be prevented; and, (d) the length of time within which the authorization shall be used or carried out.

SEC. 10. Effective Period of Judicial Authorization. – Any authorization granted by the authorizing division of the Court of Appeals, pursuant to Sec. 9 (d) of this Act, shall only be effective for the length of time specified in the written order of the authorizing division of the Court of Appeals, which shall not exceed a period of thirty (30) days from the date of receipt of the written order of the authorizing division of the Court of Appeals by the applicant police or law enforcement official. The authorizing division of the Court of Appeals may extend or renew the said authorization for another non-extendible period, which shall not exceed thirty (30) days from the expiration of the original period: Provided, That the authorizing division of the Court of Appeals is satisfied that such extension or renewal is in the public interest: and Provided, further, That the ex parte application for extension or renewal, which must be filed by the original applicant, has been duly authorized in writing by the Anti-Terrorism Council.
In case of death of the original applicant or in case he is physically disabled to file the application
for extension or renewal, the one next in rank to the original applicant among the members of the team named in the original written order of the authorizing division of the Court of Appeals shall file the application for extension or renewal: Provided, That, without prejudice to the liability of the police or law enforcement personnel under Section 20 hereof, the applicant police or law enforcement official shall have thirty (30) days after the termination of the period granted by the Court of Appeals as provided in the preceding paragraphs within which to file the appropriate case before the Public Prosecutor’s Office for any violation of this Act. If no case is filed within the thirty (30)-day period, the applicant police or law enforcement official shall immediately notify the person subject of the surveillance, interception and recording of the termination of the said surveillance, interception and recording. The penalty of ten (10) years and one day to twelve (12) years of imprisonment shall be imposed upon the applicant police or law enforcement official who fails to notify the person subject of the surveillance, monitoring, interception and recording as specified above.

SEC. 11. Custody of Intercepted and Recorded Communications. – All tapes, discs, and
recordings made pursuant to the authorization of the authorizing division of the Court of Appeals, including all excerpts and summaries thereof as well as all written notes or memoranda made in connection therewith, shall, within forty-eight (48) hours after the expiration of the period fixed in the written order of the authorizing division of the Court of Appeals or within forty-eight (48) hours after the expiration of any extension or renewal granted by the authorizing division of the Court of Appeals, be deposited with the authorizing Division of the Court of Appeals in a sealed envelope or sealed package, as the case may be, and shall be accompanied by a joint affidavit of the applicant police or law enforcement official and the
members of his team. In case of death of the applicant or in case he is physically disabled to execute the required affidavit, the one next in rank to the applicant among the members of the team named in the written order of the authorizing division of the Court of Appeals shall execute with the members of the team that required affidavit. It shall be unlawful for any person, police officer or any custodian of the tapes, discs and recording, and their excerpts and summaries, written notes or memoranda to copy in whatever form, to remove, delete, expunge, incinerate, shred or destroy in any manner the items enumerated above in whole or in part under any pretext whatsoever. Any person who removes, deletes, expunges incinerates, shreds or destroys the items enumerated above shall suffer a penalty of not less than six (6) years and one day to twelve (12) years of imprisonment.

SEC. 12. Contents of Joint Affidavit. – The joint affidavit of the police or of the law enforcement
official and the individual members of his team shall state: (a) the number of tapes, discs, and recordings that have been made, as well as the number of excerpts and summaries thereof and the number of written notes and memoranda, if any, made in connection therewith; (b) the dates and times covered by each of such tapes, discs, and recordings; (c) the number of tapes, discs, and recordings, as well as the number of excerpts and summaries thereof and the number of written notes and memoranda made in connection therewith that have been included in the deposit; and (d) the date of the original written authorization granted by the Anti-Terrorism Council to the applicant to file the ex parte application to conduct the tracking down, tapping, intercepting, and recording, as well as the date of any extension or renewal of the original written authority granted by the authorizing division of the Court of Appeals. The joint affidavit shall also certify under oath that no duplicates or copies of the whole or any part of any of such tapes, discs, and recordings, and that no duplicates or copies of the whole or any part of any of such excerpts, summaries, written notes, and memoranda, have been made, or, if made, that all
such duplicates and copies are included in the sealed envelope or sealed package, as the case may be, deposited with the authorizing division of the Court of Appeals. It shall be unlawful for any person, police or law enforcement official to omit or exclude from the joint affidavit any item or portion thereof mentioned in this Section. Any person, police or law enforcement officer who violates any of the acts proscribed in the preceding paragraph shall suffer the penalty of not less than ten (10) years and one day to twelve (12) years of imprisonment.

SEC. 13. Disposition of Deposited Materials. – The sealed envelope or sealed package and the
contents thereof, which are deposited with the authorizing division of the Court of Appeals, shall be deemed and are hereby declared classified information, and the sealed envelope or sealed package shall not be opened and its contents (including the tapes, discs, and recordings and all the excerpts and summaries thereof and the notes and memoranda made in connection therewith) shall not be divulged, revealed, read, replayed, or used as evidence unless authorized by written order of the authorizing division of the Court of Appeals, which written order shall be granted only upon a written application of the Department of Justice filed before the authorizing division of the Court of Appeals and only upon a showing that the Department of Justice has been duly authorized in writing by the Anti-Terrorism Council to file the application with proper written notice the person whose conversation, communication, message discussion or spoken or written words have been the subject of surveillance, monitoring, recording and interception to
open, reveal, divulge, and use the contents of the sealed envelope or sealed package as evidence. Any person, law enforcement official or judicial authority who violates his duty to notify in writing the persons subject of the surveillance as defined above shall suffer the penalty of six (6) years and one day to eight (8) years of imprisonment.

SEC. 14. Application to Open Deposited Sealed Envelop or Sealed Package. – The written
application with notice to the party concerned to open the deposited sealed envelope or sealed package shall clearly state the purpose or reason: (a) for opening the sealed envelope or sealed package; (b) for revealing or disclosing its classified contents; (c) for replaying, divulging, and or reading any of the listened to, intercepted, and recorded communications, messages, conversations, discussions, or spoken or written words (including any of the excerpts and summaries thereof and any of the notes or memoranda made in connection therewith); and, (d) for using any of said listened to ,intercepted, and recorded communications, messages, conversations, discussions, or spoken or written words (including any of the excerpts and
summaries thereof and any of the notes or memoranda made in connection therewith) as evidence. Any person, law enforcement official or judicial authority who violates his duty to notify as defined above shall suffer the penalty of six (6) years and one day to eight (8) years of imprisonment.

SEC. 15. Evidentiary Value of Deposited Materials. – Any listened to, intercepted, and recorded
communications, messages, conversations, discussions, or spoken or written words, or any part or parts thereof, or any information or fact contained therein, including their existence, content, substance, purport, effect, or meaning, which have been secured in violation of the pertinent provisions of this Act, shall absolutely not be admissible and usable as evidence against anybody in any judicial, quasi-judicial, legislative, or administrative investigation, inquiry, proceeding, or hearing.

SEC. 16. Penalty for Unauthorized or malicious Interceptions and/or Recordings. – Any police or law enforcement personnel who, not being authorized to do so by the authorizing division of the Court of Appeals, tracks down, taps, listens to, intercepts, and records in whatever manner or form any communication, message, conversation, discussion, or spoken or written word of a person charged with or suspected of the crime of terrorism or the crime of conspiracy to commit terrorism shall be guilty of an offense and shall suffer the penalty of ten (10) years and one day to twelve (12) years of imprisonment. In addition to the liability attaching to the offender for the commission of any other offense, the penalty of ten (10) years and one day to twelve (12) years of imprisonment and the accessory penalty of perpetual absolute disqualification from public office shall be imposed upon any police or law enforcement personnel who maliciously obtained an authority from the Court of Appeals to track down, tap, listen to, intercept, and record in whatever manner or form any communication, message, conversation, discussion, or spoken or written words of a person charged with or suspected of the crime of terrorism or conspiracy to
commit terrorism: Provided, That notwithstanding Section 13 of this Act, the party aggrieved by such authorization shall be allowed access to the sealed envelope or sealed package and the contents thereof as evidence for the prosecution of any police or law enforcement personnel who maliciously procured said authorization.

SEC. 17. Proscription of Terrorist Organizations, Association, or Group of Persons. – Any
organization, association, or group of persons organized for the purpose of engaging in terrorism, or which, although not organized for that purpose, actually uses the acts to terrorize mentioned in this Act or to sow and create a condition of widespread and extraordinary fear and panic among the populace in order to coerce the government to give in to an unlawful demand shall, upon application of the Department of Justice before a competent Regional Trial Court, with due notice and opportunity to be heard given to the organization, association, or group of persons concerned, be declared as a terrorist and outlawed organization, association, or group of persons by the said Regional Trial Court.

SEC. 18. Period of Detention Without Judicial Warrant of Arrest. – The provisions of Article 125 of the Revised Penal Code to the contrary notwithstanding, any police or law enforcement personnel, who, having been duly authorized in writing by the Anti-Terrorism Council has taken custody of a person charged with or suspected of the crime of terrorism or the crime of conspiracy to commit terrorism shall, without incurring any criminal liability for delay in the delivery of detained persons to the proper judicial authorities, deliver said charged or suspected person to the proper judicial authority within a period of three (3) days counted from the moment the said charged or suspected person has been apprehended or arrested, detained, and taken into custody by the said police, or law enforcement personnel: Provided, That the arrest of those suspected of the crime of terrorism or conspiracy to commit terrorism must result from the surveillance under Section 7 and examination of bank deposits under Section 27 of this Act.
The police or law enforcement personnel concerned shall, before detaining the person suspected
of the crime of terrorism, present him or her before any judge at the latter’s residence or office nearest the place where the arrest took place at any time of the day or night. It shall be the duty of the judge, among other things, to ascertain the identity of the police or law enforcement personnel and the person or persons they have arrested and presented before him or her, to inquire of them the reasons why they have arrested the person and determine by questioning and personal observation whether or not the suspect has been subjected to any physical, moral or psychological torture by whom and why. The judge shall the submit a written report of what he/she had observed when the subject was brought before him to the proper court that has jurisdiction over the case of the person thus arrested. the judge shall forthwith submit his/her
report within three (3) calendar days from the time the suspect was brought to his/her residence or office. Immediately after taking custody of a person charged with or suspected of the crime of terrorism or conspiracy to commit terrorism, the police or law enforcement personnel shall notify in writing the judge of the court nearest the place of apprehension or arrest: Provided, That where the arrest is made during saturdays, sundays, holidays or after office hours, the written notice shall be served at the residence of the judge nearest the place where the accused was arrested. The penalty of ten (10) years and one day to twelve (12) years of imprisonment shall be imposed upon the police or law enforcement personnel who fails to notify any judge as provided in the preceding paragraph.

SEC. 19. Period of Detention in the Event of an Actual or Imminent Terrorist Attack. – In the event of an actual or imminent terrorist attack, suspects may not be detained for more than three (3) days without the written approval of a municipal, city, provincial or regional official of a Human Rights Commission or judge of the municipal, regional trial court, the Sandiganbayan or a justice of the Court of Appeals nearest the place of the arrest. If the arrest is made during Saturdays, Sundays, holidays or after office hours, the arresting police or law enforcement personnel shall bring the person thus arrested to the residence of any of the officials mentioned above that is nearest the place where the accused was arrested. The approval in writing of any of the said officials shall be secured by the police or law enforcement personnel concerned
within five (5) days after the date of the detention of the persons concerned: Provided, however, That within three (3) days after the detention the suspects, whose connection with the terror attack or threat is not established, shall be released immediately.

SEC. 20. Penalty for Failure to Deliver Suspect to the Proper Judicial Authority Within Three (3) Days. – The penalty of ten (10) years and one day to twelve (12) years of imprisonment shall be imposed upon any police or law enforcement personnel who has apprehended or arrested, detained and taken custody of a person charged with or suspected of the crime of terrorism or conspiracy to commit terrorism and fails to deliver such charged or suspected person to the proper judicial authority within the period of three (3) days.

SEC. 21. Rights of a Person Under Custodial Detention. – The moment a person charged with or
suspected of the crime of terrorism or the crime of conspiracy to commit terrorism is apprehended or arrested and detained, he shall forthwith be informed, by the arresting police or law enforcement officers or by the police or law enforcement officers to whose custody the person concerned is brought, of his or her right: (a) to be informed of the nature and cause of his arrest, to remain silent and to have competent and independent counsel preferably of his choice. If the person cannot afford the services of counsel of his or her choice, the police or law enforcement officers concerned shall immediately contact the free legal assistance unit of the Integrated Bar of the Philippines (IBP) or the Public Attorney’s Office (PAO). It shall be the duty of the free legal assistance unit of the IBP or the PAO thus contacted to immediately visit the person(s) detained and provide him or her with legal assistance. These rights cannot be waived except in writing and in the presence of the counsel of choice; (b) informed of the cause or causes of his detention in the presence of his legal counsel; (c) allowed to communicate freely with his legal counsel and to confer with them at any time without restriction; (d) allowed to communicate freely and privately without restrictions with the members of his family or with his nearest relatives and to be visited by them; and, (e) allowed freely to avail of the service of a physician or physicians of choice.

SEC. 22. Penalty for Violation of the Rights of a Detainee. – Any police or law enforcement
personnel, or any personnel of the police or other law enforcement custodial unit that violates any of the aforesaid rights of a person charged with or suspected of the crime of terrorism or the crime of conspiracy to commit terrorism shall be guilty of an offense and shall suffer the penalty of ten (10) years and one day to twelve (12) years of imprisonment. Unless the police or law enforcement personnel who violated the rights of a detainee or detainees as stated above is duly identified, the same penalty shall be imposed on the police officer or head or leader of the law enforcement unit having custody of the detainee at the time the violation was done.

SEC. 23. Requirement for an Official Custodial Logbook and Its Contents. – The police or other
law enforcement custodial unit in whose care and control the person charged with or suspected of the crime of terrorism or the crime of conspiracy to commit terrorism has been placed under custodial arrest and detention shall keep a securely and orderly maintained official logbook, which is hereby declared as a public document and opened to and made available for the inspection and scrutiny of the lawyer or lawyers of the person under custody or any member of his or her family or relative by consanguinity or affinity within the fourth civil degree or his or her physician at any time of the day or night without any form of restriction. The logbook shall contain a clear and concise record of: (a) the name, description, and address of the detained person; (b) the date and exact time of his initial admission for custodial arrest and detention; (c) the name and address of the physician or physicians who examined him physically and medically; (d) the state of his health and physical condition at the time of his initial admission for custodial detention; (e) the date and time of each removal of the detained person from his cell for interrogation or for any purpose; (f) the date and time of his return to his cell; (g) the name and address of the physician or physicians who physically and medically examined him after each interrogation; (h) a summary of the physical and medical findings on the detained person after each of such interrogation; (i) the names and addresses of his family members and nearest relatives, if any and if available; (j) the names and addresses of persons who visit the detained person; (k) the date and time of each of such visits; (l) the date and time of each request of the detained person to communicate and confer with his legal counsel or counsels; (m) the date and time of each visit, and date and time of each departure of his legal counsel or counsels; and,
(n) all other important events bearing on and all relevant details regarding the treatment of the detained person while under custodial arrest and detention. The said police or law enforcement custodial unit shall upon demand of the aforementioned awyer or lawyers or members of the family or relatives within the fourth civil degree of consanguinity or affinity of the person under custody or his or her physician issue a certified true copy of the entries of the logbook relative to the concerned detained person without delay or restriction or requiring any fees whatsoever including documentary stamp tax, notarial fees, and the like. This certified true copy may be attested by the person who has custody of the logbook or who allowed the party concerned to scrutinize it at the time the demand for the certified true copy is made. The police or other law enforcement custodial unit who fails to comply with the preceding paragraph to keep an official logbook shall suffer the penalty of ten (10) years and one day to twelve (12) years of imprisonment.

SEC. 24. No Torture or Coercion in Investigation and Interrogation. – No threat, intimidation, or coercion, and no act which will inflict any form of physical pain or torment, or mental, moral, or
psychological pressure, on the detained person, which shall vitiate his free-will, shall be employed in his investigation and interrogation for the crime of terrorism or the crime of conspiracy to commit terrorism; otherwise, the evidence obtained from said detained person resulting from such threat, intimidation, or coercion, or from such inflicted physical pain or torment, or mental, moral, or psychological pressure, shall be, in its entirety, absolutely not admissible and usable as evidence in any judicial, quasi-judicial, legislative, or administrative investigation, inquiry, proceeding, or hearing.

SEC. 25. Penalty for Threat, Intimidation, Coercion, or Torture in the Investigation and
Interrogation of a Detained Person. – Any person or persons who use threat, intimidation, or coercion, or who inflict physical pain or torment, or mental, moral, or psychological pressure, which shall vitiate the freewill of a charged or suspected person under investigation and interrogation for the crime of terrorism or the crime of conspiracy to commit terrorism shall be guilty of an offense and shall suffer the penalty of twelve (12) years and one day to twenty (20) years of imprisonment. When death or serious permanent disability of said detained person occurs as a consequence of the use of such threat, intimidation, or coercion, or as a consequence of the infliction on him of such physical pain or torment, or as a consequence of the infliction on him of such mental, moral, or psychological pressure, the penalty shall be twelve (12) years and one day to twenty (20) years of imprisonment

SEC. 26. Restriction on Travel. - In cases where evidence of guilt is not strong, and the person
charged with the crime of terrorism or conspiracy to commit terrorism is entitled to bail and is granted the same, the court, upon application by the prosecutor, shall limit the right of travel of the accused to within the municipality or city where he resides or where the case is pending, in the interest of national security and public safety, consistent with Article III, Section 6 of the Constitution. Travel outside of said municipality or city, without the authorization of the court, shall be deemed a violation of the terms and conditions of his bail, which shall then be forfeited as provided under the Rules of Court. He or she may also be placed under house arrest by order of the court at his or her usual place of residence. While under house arrest, he or she may not use telephones, cellphones, e-mails, computers, the internet or other means of communications with people outside the residence until otherwise ordered by the court. The restrictions abovementioned shall be terminated upon the acquittal of the accused or of the dismissal of the case filed against him or earlier upon the discretion of the court on motion of the prosecutor or of the accused.

SEC. 27. Judicial Authorization Required to Examine Bank Deposits, Accounts, and Records. –
The provisions of Republic Act No. 1405 as amended, to the contrary notwithstanding, the justices of the Court of Appeals designated as a special court to handle anti-terrorism cases after satisfying themselves of the existence of probable cause in a hearing called for that purpose that (1) a person charged with or suspected of the crime of terrorism or conspiracy to commit terrorism, (2) of a judicially declared and outlawed terrorist organization, association, or group of persons, and (3) of a member of such judicially declared and outlawed organization, association, or group of persons, may authorize in writing any police or law enforcement officer and the members of his/her team duly authorized in writing by the anti-terrorism council to: (a) examine, or cause the examination of, the deposits, placements, trust accounts, assets and records in a bank or financial institution; and (b) gather or cause the gathering of any relevant information about such deposits, placements, trust accounts, assets, and records from a bank or financial institution. the bank or financial institution concerned shall not refuse to allow such examination or to provide the desired information, when so ordered by and served with the written order of the Court of Appeals.

SEC. 28. Application to Examine Bank Deposits, Accounts, and Records. – The written order of
the Court of Appeals authorizing the examination of bank deposits, placements, trust accounts, assets, and records: (1) of a person charged with or suspected of the crime of terrorism or conspiracy to commit terrorism, (2) of any judicially declared and outlawed terrorist organization, association, or group of persons, or (3) of any member of such organization, association, or group of persons in a bank or financial institution, and the gathering of any relevant information about the same from said bank or financial institution, shall only be granted by the authorizing division of the Court of Appeals upon an ex parte application to that effect of a police or of a law enforcement official who has been duly authorized in writing to file such ex parte application by the Anti-Terrorism Council created in Section 53 of this Act to file such ex parte application, and upon examination under oath or affirmation of the applicant and the witnesses he may produce to establish the facts that will justify the need and urgency of examining and freezing the bank deposits, placements, trust accounts, assets, and records: (1) of the person charged with or suspected of the crime of terrorism or conspiracy to commit terrorism, (2) of a judicially declared and outlawed terrorist organization, association or group of persons, or (3) of any member of such organization, association, or group of persons.

SEC. 29. Classification and Contents of the Court Order Authorizing the Examination of Bank
Deposits, Accounts, and Records. – The written order granted by the authorizing division of the Court of Appeals as well as its order, if any, to extend or renew the same, the original ex parte application of the applicant, including his ex parte application to extend or renew, if any, and the written authorizations of the Anti Terrorism Council, shall be deemed and are hereby declared as classified information: Provided, That the person whose bank deposits, placements, trust accounts, assets, and records have been examined, frozen, sequestered and seized by law enforcement authorities has the right to be informed of the acts done by the law enforcement authorities in the premises or to challenge, if he or she intends to do so, the legality of the interference. The written order of the authorizing division of the Court of Appeals designated
to handle cases involving terrorism shall specify: (a) the identity of the said: (1) person charged with or suspected of the crime of terrorism or conspiracy to commit terrorism, (2) judicially declared and outlawed terrorist organization, association, or group of persons, and (3) member of such judicially declared and outlawed organization, association, or group of persons, as the case may be, whose deposits, placements, trust accounts, assets, and records are to be examined or the information to be gathered; (b) the identity of the bank or financial institution where such deposits, placements, trust accounts, assets, and records are held and maintained; (c) the identity of the persons who will conduct the said examination and the gathering of the desired information; and, (d) the length of time the authorization shall be carried out.

SEC. 30. Effective Period of Court Authorization to Examine and Obtain Information on Bank
Deposits, Accounts, and Records. – The authorization issued or granted by the authorizing division of the Court of Appeals to examine or cause the examination of and to freeze bank deposits, placements, trust accounts, assets, and records, or to gather information about the same, shall be effective for the length of time specified in the written order of the authorizing division of the Court of Appeals, which shall not exceed a period of thirty (30) days from the date of receipt of the written order of the authorizing division of the Court of Appeals by the applicant police or law enforcement official. The authorizing division of the Court of Appeals may extend or renew the said authorization for another period, which shall not exceed thirty (30) days renewable to another thirty (30) days from the expiration of the original period, provided that the authorizing division of the Court of Appeals is satisfied that such extension or renewal is in the public interest, and provided further that the application for extension or renewal, which must be filed by the original applicant, has been duly authorized in writing by the Anti-Terrorism Council. In case of death of the original applicant or in case he is physically disabled to file the application for extension or renewal, the one next in rank to the original applicant among the members of the team named in the original written order of the authorizing division of the Court of Appeals shall file the application for extension or renewal: Provided, That, without prejudice to the liability of the police or law enforcement personnel under Section 19 hereof, the applicant police or law enforcement official shall have thirty (30) days after the termination of the period granted by the Court of Appeals as provided in the preceding paragraphs within which to file the appropriate case before the Public Prosecutor’s Office for any violation of this Act.If no case is filed within the thirty (30)-day period, the applicant police or law enforcement official shall immediately notify in writing the person subject of the bank examination and freezing of bank deposits, placements, trust accounts, assets and records. The penalty of ten (10) years and one day to twelve (12) years of imprisonment shall be imposed upon the applicant police or law enforcement official who fails to notify in writing the person subject of the bank examination and freezing of bank deposits, placements, trust accounts, assets and records.
Any person, law enforcement official or judicial authority who violates his duty to notify in writing as defined above shall suffer the penalty of six (6) years and one day to eight (8) years of imprisonment.

SEC. 31. Custody of Bank Data and Information Obtained after Examination of Deposits,
Placements, Trust Accounts, Assets and Records. – All information, data, excerpts, summaries, notes, memoranda, working sheets, reports, and other documents obtained from the examination of the bank deposits, placements, trust accounts, assets and records of: (1) a person charged with or suspected of the crime of terrorism or the crime of conspiracy to commit terrorism, (2) a judicially declared and outlawed terrorist organization, association, or group of persons, or (3) a member of any such organization, association, or group of persons shall, within forty-eight (48) hours after the expiration of the period fixed in the written order of the authorizing division of the Court of Appeals or within forty-eight (48) hours after the expiration of the extension or renewal granted by the authorizing division of the Court of Appeals, be
deposited with the authorizing division of the Court of Appeals in a sealed envelope or sealed package, as the case may be, and shall be accompanied by a joint affidavit of the applicant police or law enforcement official and the persons who actually conducted the examination of said bank deposits, placements, trust accounts, assets and records.

SEC. 32. Contents of Joint Affidavit. – The joint affidavit shall state: (a) the identifying marks,
numbers, or symbols of the deposits, placements, trust accounts, assets, and records examined; (b) the identity and address of the bank or financial institution where such deposits, placements, trust accounts, assets, and records are held and maintained; (c) the number of bank deposits, placements, trust accounts, assets, and records discovered, examined, and frozen; (d) the outstanding balances of each of such deposits, placements, trust accounts, assets; (e) all information, data, excerpts, summaries, notes, memoranda, working sheets, reports, documents, records examined and placed in the sealed envelope or sealed package deposited with the authorizing division of the Court of Appeals; (f) the date of the original written authorization granted by the Anti-Terrorism Council to the applicant to file the ex parte application to conduct the examination of the said bank deposits, placements, trust accounts, assets and records, as well as the date of any extension or renewal of the original written authorization granted by the authorizing division of the Court of Appeals; and (g) that the items enumerated were all that were found in the bank or financial institution examined at the time of the completion of the examination. The joint affidavit shall also certify under oath that no duplicates or copies of the information, data, excerpts, summaries, notes, memoranda, working sheets, reports, and documents acquired from the examination of the bank deposits, placements, trust accounts, assets and records have been made, or, if made, that all such duplicates and copies are placed in the sealed envelope or sealed package deposited with the authorizing division of the Court of Appeals. It shall be unlawful for any person, police officer or custodian of the bank data and information obtained after examination of deposits, placements, trust accounts, assets and records to copy, to remove, delete, expunge, incinerate, shred or destroy in any manner the items enumerated above in whole or in part under any pretext whatsoever. Any person who copies, removes, deletes, expunges incinerates, shreds or destroys the items enumerated above shall suffer a penalty of not less than six (6) years and one day to twelve (12) years of imprisonment.

SEC. 33. Disposition of Bank Materials. – The sealed envelope or sealed package and the
contents thereof, which are deposited with the authorizing division of the Court of Appeals, shall be deemed and are hereby declared classified information, and the sealed envelope or sealed package shall not be opened and its contents shall not be divulged, revealed, read, or used as evidence unless authorized in a written order of the authorizing division of the Court of Appeals, which written order shall be granted only upon a written application of the Department of Justice filed before the authorizing division of the Court of Appeals and only upon a showing that the Department of Justice has been duly authorized in writing by the Anti-Terrorism Council to file the application, with notice in writing to the party concerned not later than three (3) days before the scheduled opening, to open, reveal, divulge, and use the contents of the sealed envelope or sealed package as evidence. Any person, law enforcement official or judicial authority who violates his duty to notify in writing as defined above shall suffer the penalty of six (6) years and one day to eight (8) years of imprisonment.

SEC. 34. Application to Open Deposited Bank Materials. – The written application, with notice in writing to the party concerned not later than three (3) days of the scheduled opening, to open the sealed envelope or sealed package shall clearly state the purpose and reason: (a) for opening the sealed envelope or sealed package; (b) for revealing and disclosing its classified contents; and, (c) for using the classified information, data, excerpts, summaries, notes, memoranda, working sheets, reports, and documents as evidence.

SEC. 35. Evidentiary Value of Deposited Bank Materials. – Any information, data, excerpts,
summaries, notes, memoranda, work sheets, reports, or documents acquired from the examination of the bank deposits, placements, trust accounts, assets and records of: (1) a person charged or suspected of the crime of terrorism or the crime of conspiracy to commit terrorism, (2) a judicially declared and outlawed terrorist organization, association, or group of persons, or (3) a member of such organization, association, or group of persons, which have been secured in violation of the provisions of this Act, shall absolutely not be admissible and usable as evidence against anybody in any judicial, quasi-judicial, legislative, or administrative investigation, inquiry, proceeding, or hearing.

SEC. 36. Penalty for Unauthorized or Malicious Examination of a Bank or a Financial Institution. – Any person, police or law enforcement personnel who examines the deposits, placements, trust accounts, assets, or records in a bank or financial institution of: (1) a person charged with or suspected of the crime of terrorism or the crime of conspiracy to commit terrorism, (2) a judicially declared and outlawed terrorist organization, association, or group of persons, or (3) a member of such organization, association, or group of persons, without being authorized to do so by the Court of Appeals, shall be guilty of an offense and shall suffer the penalty of ten (10) years and one day to twelve (12) years of imprisonment. In addition to the liability attaching to the offender for the commission of any other offense, the penalty of ten (10) years and one day to twelve (12) years of imprisonment shall be imposed upon any police or law enforcement personnel, who maliciously obtained an authority from the Court of Appeals to examine the deposits, placements, trust accounts, assets, or records in a bank or financial institution of: (1)
a person charged with or suspected of the crime of terrorism or conspiracy to commit terrorism, (2) a judicially declared and outlawed terrorist organization, association, or group of persons, or (3) a member of such organization, association, or group of persons: Provided, That notwithstanding Section 33 of this Act, the party aggrieved by such authorization shall upon motion duly filed be allowed access to the sealed envelope or sealed package and the contents thereof as evidence for the prosecution of any police or law enforcement personnel who maliciously procured said authorization.

SEC. 37. Penalty of Bank Officials and Employees Defying a Court Authorization. – An employee, official, or a member of the board of directors of a bank or financial institution, who refuses to allow the examination of the deposits, placements, trust accounts, assets, and records of: (1) a person charged with or suspected of the crime of terrorism or the crime of conspiracy to commit terrorism, (2) a judicially declared and outlawed terrorist organization, association, or group of persons, or (3) a member of such judicially declared and outlawed organization, association, or group of persons in said bank or financial institution, when duly served with the written order of the authorizing division of the Court of Appeals, shall be guilty of an offense and shall suffer the penalty of ten (10) years and one day to twelve (12) years of imprisonment.

SEC. 38. Penalty for False or Untruthful Statement or Misrepresentation of Material Fact in Joint Affidavits. – Any false or untruthful statement or misrepresentation of material fact in the joint affidavits required respectively in Section 12 and Section 32 of this Act shall constitute a criminal offense and the affiants shall suffer individually the penalty of ten (10) years and one day to twelve (12) years of imprisonment.

SEC. 39. Seizure and Sequestration. – The deposits and their outstanding balances, placements,
trust accounts, assets, and records in any bank or financial institution, moneys, businesses, transportation and communication equipment, supplies and other implements, and property of whatever kind and nature belonging: (1) to any person suspected of or charged before a competent Regional Trial Court for the crime of terrorism or the crime of conspiracy to commit terrorism; (2) to a judicially declared and outlawed organization, association, or group of persons; or (3) to a member of such organization, association, or group of persons shall be seized, sequestered, and frozen in order to prevent their use, transfer, or conveyance for purposes that are inimical to the safety and security of the people or injurious to the interest of the State. The accused or a person suspected of may withdraw such sums as may be reasonably needed by the monthly needs of his family including the services of his or her counsel and his or her family’s medical needs upon approval of the court. He or she may also use any of his property that is under seizure or sequestration or frozen because of his or her indictment as a terrorist upon permission of the court for any legitimate reason. Any person who unjustifiably refuses to follow the order of the proper division of the Court ofAppeals to allow the person accused of the crime of terrorism or of the crime of conspiracy to commit terrorism to withdraw such sums from sequestered or frozen deposits, placements, trust accounts, assets and records as may be necessary for the regular sustenance of his or her family or to use any of his or her
property that has been seized, sequestered or frozen for legitimate purposes while his or her case is pending shall suffer the penalty of ten (10) years and one day to twelve (12) years of imprisonment.

SEC. 40. Nature of Seized, Sequestered and Frozen Bank Deposits, Placements, Trust Accounts,
Assets and Records. – The seized, sequestered and frozen bank deposits, placements, trust accounts, assets and records belonging to a person suspected of or charged with the crime of terrorism or conspiracy to commit terrorism shall be deemed as property held in trust by the bank or financial institution for such person and the government during the pendency of the investigation of the person suspected of or during the pendency of the trial of the person charged with any of the said crimes, as the case may be and their use or disposition while the case is pending shall be subject to the approval of the court before which the case or cases are pending.

SEC. 41. Disposition of the Seized, Sequestered and Frozen Bank Deposits, Placements, Trust
Accounts, Assets and Record. – If the person suspected of or charged with the crime of terrorism or conspiracy to commit terrorism is found, after his investigation, to be innocent by the investigating body, or is acquitted, after his arraignment or his case is dismissed before his arraignment by a competent court, the seizure, sequestration and freezing of his bank deposits, placements, trust accounts, assets and records shall forthwith be deemed lifted by the investigating body or by the competent court, as the case may be, and his bank deposits, placements, trust accounts, assets and records shall be deemed released from such seizure, sequestration and freezing, and shall be restored to him without any delay by the bank or financial institution concerned without any further action on his part. The filing of any appeal on motion for reconsideration shall not state the release of said funds from seizure, sequestration and freezing. If the person charged with the crime of terrorism or conspiracy to commit terrorism is convicted by a final judgment of a competent trial court, his seized, sequestered and frozen bank deposits, placements, trust accounts, assets and records shall be automatically forfeited in favor of the government. Upon his or her acquittal or the dismissal of the charges against him or her, the amount of Five Hundred Thousand Pesos (P500,000.00) a day for the period in which his properties, assets or funds were seized shall be paid to him on the concept of liquidated damages. The amount shall be taken from the appropriations of the police or law enforcement agency that caused the filing of the enumerated charges against him or her.

SEC. 42. Penalty for Unjustified Refusal to Restore or Delay in Restoring Seized, Sequestered
and Frozen Bank Deposits, Placements, Trust Accounts, Assets and Records. – Any person who
unjustifiably refuses to restore or delays the restoration of seized, sequestered and frozen bank deposits, placements, trust accounts, assets and records of a person suspected of or charged with the crime of terrorism or conspiracy to commit terrorism after such suspected person has been found innocent by the investigating body or after the case against such charged person has been dismissed or after he is acquitted by a competent court shall suffer the penalty of ten (10) years and one day to twelve (12) years of imprisonment.

SEC. 43. Penalty for the Loss, Misuse, Diversion or Dissipation of Seized, Sequestered and
Frozen Bank Deposits, Placements, Trust Accounts, Assets and Records. – Any person who is responsible for the loss, misuse, diversion, or dissipation of the whole or any part of the seized, sequestered and frozen bank deposits, placements, trust accounts, assets and records of a person suspected of or charged with the crime of terrorism or conspiracy to commit terrorism shall suffer the penalty of ten (10) years and one day to twelve (12) years of imprisonment.

SEC. 44. Infidelity in the Custody of Detained Persons. – Any public officer who has direct custody of a detained person under the provisions of this Act and who by his deliberate act, misconduct, or inexcusable negligence causes or allows the escape of such detained person shall be guilty of an offense and shall suffer the penalty of: (a) twelve (12) years and one day to twenty (20) years of imprisonment, if the detained person has already been convicted and sentenced in a final judgment of a competent court; and (b) six (6) years and one day to twelve (12) years of imprisonment, if the detained person has not been convicted and sentenced in a final judgment of a competent court.

SEC. 45. Immunity and Protection of Government Witnesses. – The provisions of Republic Act No. 6981 (Witness Protection, Security and Benefits Act) to the contrary notwithstanding, the immunity of government witnesses testifying under this Act shall be governed by Sections 17 and 18 of Rule 119 of the Rules of Court: Provided, however, That said witnesses shall be entitled to benefits granted to witnesses under said Republic Act No. 6981.

SEC. 46. Penalty for Unauthorized Revelation of Classified Materials. – The penalty of ten (10)
years and one day to twelve (12) years of imprisonment shall be imposed upon any person, police or law enforcement agent, judicial officer or civil servant who, not being authorized by the Court of Appeals to do so, reveals in any manner or form any classified information under this Act.

SEC. 47. Penalty for Furnishing False Evidence, Forged Document, or Spurious Evidence. – The
penalty of twelve (12) years and one day to twenty (20) years of imprisonment shall be imposed upon any person who knowingly furnishes false testimony, forged document or spurious evidence in any investigation or hearing under this Act.

SEC. 48. Continuous Trial. - In cases of terrorism or conspiracy to commit terrorism, the judge
shall set the case for continuous trial on a daily basis from Monday to Friday or other short-term trial calendar so as to ensure speedy trial.

SEC. 49. Prosecution Under This Act Shall Be a Bar to Another Prosecution Under the Revised
Penal Code or Any Special Penal Laws. - When a person has been prosecuted under a provision of this Act, upon a valid complaint or information or other formal charge sufficient in form and substance to sustain a conviction and after the accused had pleaded to the charge, the acquittal of the accused or the dismissal of the case shall be a bar to another prosecution for any offense or felony which is necessarily included in the offense charged under this Act.

SEC. 50. Damages for Unproven Charge of Terrorism. – Upon acquittal, any person who is accused of terrorism shall be entitled to the payment of damages in the amount of Five Hundred Thousand Pesos (P500,000.00) for every day that he or she has been detained or deprived of liberty or arrested without a warrant as a result of such an accusation. The amount of damages shall be automatically charged against the appropriations of the police agency or the Anti-Terrorism Council that brought or sanctioned the filing of the charges against the accused. It shall also be released within fifteen (15) days from the date of the acquittal of the accused. The award of damages mentioned above shall be without prejudice to the right of the acquitted accused to file criminal or administrative charges against those responsible for charging him with the case of terrorism. Any officer, employee, personnel, or person who delays the release or refuses to release the amounts awarded to the individual acquitted of the crime of terrorism as directed in the paragraph immediately preceding shall suffer the penalty of six (6) months of imprisonment. If the deductions are less than the amounts due to the detained persons, the amount needed to complete the compensation shall be taken from the current appropriations for intelligence, emergency, social or other funds of the Office of the President. In the event that the amount cannot be covered by the current budget of the police or law enforcement agency concerned, the amount shall be automatically included in the appropriations of the said agency for the coming year.

SEC. 51. Duty to Record and Report the Name and Address of the Informant. - The police or law enforcement officers to whom the name of a suspect in the crime of terrorism was first revealed shall record the real name and the specific address of the informant. The police or law enforcement officials concerned shall report the informant’s name and address to their superior officer who shall transmit the information to the Congressional Oversight Committee or to the
proper court within five (5) days after the suspect was placed under arrest or his properties were sequestered, seized or frozen. The name and address of the informant shall be considered confidential and shall not be unnecessarily revealed until after the proceedings against the suspect shall have been terminated.

SEC. 52. Applicability of the Revised Penal Code. - The provisions of Book I of the Revised Penal Code shall be applicable to this Act.

SEC. 53. Anti-Terrorism Council. – An Anti-Terrorism Council, hereinafter referred to, for brevity, as the “Council,” is hereby created. The members of the Council are: (1) the Executive Secretary, who shall be its chairperson; (2) the Secretary of Justice, who shall be its Vice Chairperson; and (3) the Secretary of Foreign Affairs; (4) the Secretary of National Defense; (5) the Secretary of the Interior and Local Government; (6) the Secretary of Finance; and (7) the National Security Advisor, as its other members. The Council shall implement this Act and assume the responsibility for the proper and effective implementation of the anti-terrorism policy of the country. The Council shall keep records of its proceedings and decisions. All records of the Council shall be subject to such security classifications as the Council may, in its judgment and discretion, decide to adopt to safeguard the safety of the people, the security of the Republic, and the welfare of the nation. The National Intelligence Coordinating Agency shall be the Secretariat of the Council. The Council shall define the powers, duties, and functions of the National Intelligence Coordinating Agency as Secretariat of the Council. The National Bureau of Investigation, the Bureau of Immigration, the Office of Civil Defense, the Intelligence Service of the Armed Forces of the Philippines, the Anti-Money Laundering Council, the Philippine Center on Transnational Crime, and the Philippine National Police intelligence and investigative elements shall serve as support agencies for the Council. The Council shall formulate and adopt comprehensive, adequate, efficient, and effective antiterrorism plans, programs, and counter-measures to suppress and eradicate terrorism in the country and to protect the people from acts of terrorism. Nothing herein shall be interpreted to empower the Anti-Terrorism Council to exercise any judicial or quasi-judicial power or authority.

SEC. 54. Functions of the Council. – In pursuit of its mandate in the previous Section, the Council shall have the following functions with due regard for the rights of the people as mandated by the Constitution and pertinent laws:
1. Formulate and adopt plans, programs and counter-measures against terrorists and acts of
terrorism in the country;
2. Coordinate all national efforts to suppress and eradicate acts of terrorism in the country
and mobilize the entire nation against terrorism proscribed in this Act;
3. Direct the speedy investigation and prosecution of all persons accused or detained for the
crime of terrorism or conspiracy to commit terrorism and other offenses punishable under
this Act, and monitor the progress of their cases;
4. Establish and maintain comprehensive data-base information systems on terrorism, terrorist activities, and counter-terrorism operations;
5. Freeze the funds property, bank deposits, placements, trust accounts, assets and records
belonging to a person suspected of or charged with the crime of terrorism or conspiracy to
commit terrorism, pursuant to Republic Act No. 9160 otherwise known as the Anti-Money
Laundering Act of 2001, as amended;
6. Grant monetary rewards and other incentives to informers who give vital information
leading to the apprehension, arrest, detention, prosecution, and conviction of person or
persons who are liable for the crime of terrorism or conspiracy to commit terrorism;
7. Establish and maintain coordination with and the cooperation and assistance of other
nations in the struggle against international terrorism; and
8. Request the Supreme Court to designate specific divisions of the Court of Appeals and
regional trial courts in Manila, Cebu City and Cagayan de Oro City, as the case may be, to
handle all cases involving the crime of terrorism or conspiracy to commit terrorism and all
matters incident to said crimes. The Secretary of Justice shall assign a team of prosecutors from: (a) Luzon to handle terrorism cases filed in the regional trial court in Manila; (b) from the Visayas to handle cases filed in Cebu City; and (c) from Mindanao to handle cases filed in Cagayan de Oro City.

SEC. 55. Role of the Commission on Human Rights. - The Commission on Human Rights shall
give the highest priority to the investigation and prosecution of violations of civil and political rights of persons in relation to the implementation of this Act; and for this purpose, the commission shall have the concurrent jurisdiction to prosecute public officials, law enforcers, and other persons who may have violated the civil and political rights of persons suspected of, accused of, or detained for the crime of terrorism or conspiracy to commit terrorism.

SEC. 56. Creation of a Grievance Committee. - There is hereby created a Grievance Committee
composed of the Ombudsman, as chair, and the Solicitor General, and an undersecretary from the Department of Justice (DOJ), as members, to receive and evaluate complaints against the actuations of the police and law enforcement officials in the implementation of this Act. The Committee shall hold office in Manila. The Committee shall have three (3) subcommittees that will be respectively headed by the Deputy Ombudsmen in Luzon, the Visayas and Mindanao. The subcommittees shall respectively hold office at the Offices of Deputy Ombudsmen. Three (3) Assistant Solicitors General designated by the Solicitor General, and the regional prosecutors of the DOJ assigned to the regions where the Deputy Ombudsmen hold office shall be members thereof. The three (3) subcommittees shall assist the Grievance Committee in receiving, investigating and evaluating complaints against the police and other law enforcement officers in
the implementation of the Act. If the evidence warrants it, they may file the appropriate cases against the erring police and law enforcement officers. Unless seasonably disowned or denounced by the complainants, decisions or judgments in the said cases shall preclude the filing of other cases based on the same cause or causes of action as those that were filed with the Grievance Committee or its branches.

SEC. 57. Ban on Extraordinary Rendition. - No person suspected or convicted of the crime of
terrorism shall be subjected to extraordinary rendition to any country unless his or her testimony is needed for terrorist related police investigations or judicial trials in the said country and unless his or her human rights, including the right against torture, and right to counsel, are officially assured by the requesting country and transmitted accordingly and approved by the Department of Justice.

SEC. 58. Extra-Territorial Application of this Act. – Subject to the provision of an existing treaty of which the Philippines is a signatory and to any contrary provision of any law of preferential application, the provisions of this Act shall apply: (1) to individual persons who commit any of the crimes defined and punished in this Act within the terrestrial domain, interior waters, maritime zone, and airspace of the Philippines; (2) to individual persons who, although physically outside the territorial limits of the Philippines, commit, conspire or plot to commit any of the crimes defined and punished in this Act inside the territorial limits of the Philippines; (3) to individual persons who, although physically outside the territorial limits of the Philippines, commit any of the said crimes on board Philippine ship or Philippine airship; (4) to individual
persons who commit any of said crimes within any embassy, consulate, or diplomatic premises belonging to or occupied by the Philippine government in an official capacity; (5) to individual persons who, although physically outside the territorial limits of the Philippines, commit said crimes against Philippine citizens or persons of Philippine descent, where their citizenship or ethnicity was a factor in the commission of the crime; and (6) to individual persons who, although physically outside the territorial limits of the Philippines, commit said crimes directly against the Philippine government.

SEC. 59. Joint Oversight Committee. - There is hereby created a Joint Oversight Committee to
oversee the implementation of this Act. The Oversight Committee shall be composed of five (5) members each from the Senate and the House in addition to the Chairs of the Committees of Public Order of both Houses who shall also Chair the Oversight Committee in the order specified herein. The membership of the Committee for every House shall at least have two (2) opposition or minority members. The Joint Oversight Committee shall have its own independent counsel. The Chair of the Committee shall rotate every six (6) months with the Senate chairing it for the first six (6) months and the House for the next six (6) months. In every case, the ranking opposition or minority member of the Committee shall be the Vice Chair. Upon the expiration of one year after this Act is approved by the President, the Committee shall review the Act particularly the provisions that authorize the surveillance of suspects of or persons charged with the crime of terrorism. To that end, the Committee shall summon the police and law enforcement officers and the members of the Anti-Terrorism Council and require them to answer questions from the members of Congress and to submit a written report of the acts they have done in the implementation of the law including the manner in which the persons suspected of or charged with the crime of terrorism have been dealt with in their custody and from the date when the movements of the latter were subjected to surveillance and his or her correspondences, messages, conversations and the like were listened to or subjected to monitoring, recording and tapping. Without prejudice to its submitting other reports, the Committee shall render a semi-annual report to both Houses of Congress. The report may include where necessary a recommendation to reassess the effects of globalization on terrorist activities on the people, provide a sunset clause to or amend any portion of the Act or to repeal the Act in its entirety. The courts dealing with anti-terrorism cases shall submit to Congress and the President a report every six (6) months of the status of anti-terrorism cases that have been filed with them starting from the date this Act is implemented.

SEC. 60. Separability Clause. – If for any reason any part or provision of this Act is declared
unconstitutional or invalid, the other parts or provisions hereof which are not affected thereby shall remain and continue to be in full force and effect.

SEC. 61. Repealing Clause. – All laws, decrees, executive orders, rules or regulations or parts
thereof, inconsistent with the provisions of this Act are hereby repealed, amended, or modified accordingly.

SEC. 62. Special Effectivity Clause. - After the bill shall have been signed into law by the
President, the Act shall be published in three (3) newspapers of national circulation; three (3) newspapers of local circulation, one each in Ilocos Norte, Baguio City and Pampanga; three (3) newspapers of local circulation, one each in Cebu, Iloilo and Tacloban; and three (3) newspapers of local circulation, one each in Cagayan de Oro, Davao and General Santos City. The title of the Act and its provisions defining the acts of terrorism that are punished shall be aired everyday at primetime for seven (7) days, morning, noon and night over three (3) national television and
radio networks; three (3) radio and television networks, one each in Cebu, Tacloban and Iloilo; and in five (5) radio and television networks, one each in Lanao del Sur, Cagayan de Oro, Davao City, Cotabato City and Zamboanga City. The publication in the newspapers of local circulation and the announcements over local radio and television networks shall be done in the dominant language of the community. After the publication required above shall have been done, the Act shall take effect two (2) months after the elections are held in May 2007. Thereafter, the provisions of this Act shall be automatically suspended one month before and two months after the holding of any election.