What constitutes prima facie evidence of corporate liability when the corporation is used for graft and corrupt practices?
A corporation used for fraud or for committing or concealing graft and corrupt practices shall be liable for a fine ranging from One hundred thousand pesos (P100,000.00) to Five million pesos (P5,000,000.00) (SEC. 166, Revised Corporation Code of the Philippines). If there is a finding that any of its directors, officers, or employees are engaged in graft and corrupt practices, the corporation’s failure to install two key internal controls constitutes prima facie evidence of corporate liability under this section. These failures include not installing safeguards for the transparent and lawful delivery of services and not implementing policies, a code of ethics, and procedures against graft and corruption. The establishment of these internal controls shifts the burden of proof to the corporation in corruption cases.
02 November 2025
About Nicolas and De Vega Law Offices
Nicolas and De Vega Law Offices is a full-service law firm in the Philippines. You may visit us at the 16th Flr., Suite 1607 AIC Burgundy Empire Tower, ADB Ave., Ortigas Center, 1605 Pasig City, Metro Manila, Philippines. You may also call us at +632 84706126, +632 84706130, +632 84016392 or e-mail us at [email protected]. Visit our website https://ndvlaw.com/.
