Public trust in government often hinges on transparency. One of the most important tools for ensuring accountability among public officials is the Statement of Assets, Liabilities, and Net Worth (SALN). While this requirement is specific to the Philippines, the principles behind it—financial disclosure, ethical governance, and accountability—resonate globally, including in the United States.
This blog post explores the features of the SALN, its legal basis, and why it remains a cornerstone of public service integrity.
What Is the SALN?
The SALN is a sworn declaration required of public officials and employees in the Philippines. It details:
Assets: Real properties, personal properties, investments, and other holdings.
Liabilities: Loans, mortgages, credit card debts, and other obligations.
Net Worth: The difference between assets and liabilities.
Business Interests and Financial Connections: Any ties to enterprises or organizations.
Relatives in Government Service: Disclosure of family members up to the fourth civil degree.
This comprehensive form ensures that public officials remain transparent about their financial standing, preventing conflicts of interest and discouraging corruption.
Legal Foundation of the SALN
The SALN is grounded in Republic Act No. 6713, also known as the Code of Conduct and Ethical Standards for Public Officials and Employees. This law requires honesty and integrity in public service.
Key points include:
RA 6713 supersedes older laws like RA 3019 (Anti-Graft and Corrupt Practices Act).
Officials must declare assets truthfully and in detail.
Spouses and dependent children’s assets must also be disclosed if they live in the household.
Features of the SALN Form
The SALN form has evolved to be more user-friendly and precise. Some notable features include:
Joint or Separate Filing for Spouses: Couples in government service can file jointly, with both considered declarants.
Exact Property Location: Real properties must include specific addresses.
Assessed and Fair Market Values: Based on tax declarations from local assessor’s offices.
Simplification: Older requirements like gross income and family expenses have been removed.
Identification of Relatives: Required “to the best of knowledge,” ensuring honesty without overburdening declarants.
Declaring Real Properties
Real properties are a major part of the SALN. Declarants must provide:
Description and Location
Assessed Value and Fair Market Value
Acquisition Cost
Special cases include:
Inherited Properties: Declared with acquisition cost as zero.
Co-owned Properties: Only the declarant’s share is listed.
Properties Under Construction: Declared as improvements with expenses incurred.
Preselling Payments: Declared as equity or interest under personal property.
Declaring Personal Properties
Personal properties range from vehicles to stocks, insurance policies, and even pets. The SALN requires:
Acquisition Cost: The amount paid, not current market value.
Minimal Valued Properties: Books, plants, or collections can be declared in bulk.
Insurance Policies: Premiums paid are declared as acquisition cost.
Pensions: Declared as cash on hand or in bank.
Liabilities and Net Worth
Transparency isn’t just about assets—it’s also about debts. Declarants must list:
Credit Card Balances
Personal Loans and Creditors
Utility Bills and Tuition Fees (if outstanding as of December 31)
Insurance Policy Balances
Net worth is then calculated by subtracting liabilities from assets. Importantly, a negative net worth is acceptable as long as it is truthful.
Business Interests and Financial Connections
Officials must disclose:
Business Interests: Ownership in enterprises.
Financial Connections: Roles such as consultant, advisor, or board member. Even closed businesses must be declared if they existed during the reporting year.
Relatives in Government Service
The SALN requires disclosure of relatives up to the fourth civil degree of consanguinity or affinity. This includes:
Parents, children, siblings, grandparents, grandchildren.
In-laws, cousins, nieces, nephews, uncles, and aunts. This ensures transparency in potential nepotism or conflicts of interest.
Signatures and Oath
The SALN must be signed by both the declarant and their spouse, even if the spouse is unemployed or in the private sector. If a spouse refuses to sign, an explanation must be attached.
The oath can be administered by the head of agency, a delegated officer, or even a notary public.
Filing Deadlines and Submission
There are two critical deadlines:
April 30: Submission to the head of agency.
June 30: Transmission of all SALNs to the repository agency.
Electronic filing and digital signatures are allowed under CSC Resolution No. 2100339, especially during exceptional circumstances.
Why the SALN Matters Globally
While the SALN is unique to the Philippines, the principle of financial disclosure is universal. In the U.S., similar mechanisms exist through ethics filings, tax disclosures, and conflict-of-interest statements.
For citizens everywhere, these tools build trust, ensure accountability, and safeguard democracy.
Transparency Builds Trust
The SALN is more than paperwork—it is a safeguard against corruption and a symbol of integrity in public service. For U.S. readers, it offers a glimpse into how other nations enforce accountability, reminding us that transparency is a shared democratic value.