CHED Policy on Conflict of Interest
CHED Order No. 002-13

October 7, 2013


SUBJECT : Policies and Procedures for Handling Conflict of Interest with CHED Officials and Employees, Auditors, Evaluators; Members of Technical Panel, Technical Committees, Technical Working Groups, and Regional Quality Assessment Teams (RQATs); Consultants, and Other Experts



This set of policies, rules and guidelines that aims to supplement the CHED


Declaration of Principles

Pursuant to Section 2 of

This policy shall likewise apply, in the appropriate cases, to officials and employees of the CHED, including but not limited to those engaged from the private or public sectors to render service or provide expertise, not generally fund in the agency but are necessary in the performance of agency functions. In the performance and discharge of their duties, they should do so with the highest degree of excellence, professionalism, intelligence and skill, and thus, shall avoid conflict of interest at all times.


Policy on General Conflict of Interest Prohibition

As a general rule, those covered under these rules and regulations, shall not personally and substantially participate in any capacity in any particular matter which, to his or her knowledge, he or she or any other person whose interests are imputed to him or her will give rise to a conflict or potential conflict of interest as defined under these rules, or if the particular matter will have a direct and predictable effect on that interest.



These policies, rules and procedures shall apply to all officials and employees of the Commission on Higher Education as far as applicable, including but not limited to auditors, assessors, evaluators, and members of the Technical Panel, Technical committees, Technical working groups, RQATs, and other outside experts/resource persons engaged by the CHED to perform specific duties or functions.


Scope of Conflict of Interest

4.1 In general, a conflict of interest occurs when the private interests of public sector officers interfere, or appear to interfere, with the performance of their official duties.

4.2 In the case of public officials and employees, pursuant to law, (

4.3 For private persons covered under these rules, a conflict of interest occurs when such individual's own personal interests, or those of a person or entity with whom he or she has a close personal relationship or as defined in these rules, conflict with his or her primary obligation to act in the interests of the CHED. A conflict of interest may be actual, perceived or potential.

4.4 Conflict of interest shall encompass competing interests or conflicting duties. This may occur where a person finds that part of his or her undertaking or engagement involves taking on another role, which presents some incompatibility due to the nature of the two entities he or she has a connection with. DaAISH


Procedures for Handling Conflict of Interest

6.1 Avoidance and Disclosures

6.1.1 Where any actual or potential conflict of interest exists for a person covered under these rules and cannot be avoided, such person shall disclose it to the immediate highest ranking official of the particular office he or she is being engaged to perform a duty or function as soon as possible after becoming aware of it;

6.1.2 In cases where the disclosure of perceived, potential or actual conflicts may involve disclosing sensitive personal information, the same shall be handled with the highest degree of discretion and privacy by the agency.

6.1.3 The DISCLOSURE OF CONFLICT ON INTEREST STATEMENT shall contain information on any existing interest in, or any existing connection with any business enterprises or entities, including but not limited to HEIs being evaluated, review centers, manning agencies, whether as proprietor, investor, promoter, partner, shareholder, officer, managing director, consultant or adviser, financial or business consultant, and the like, the name and addresses of the business enterprises or entities, the dates when such interests or connections were established, and such other details as will show the nature of the interests of connections that may give rise to either perceived, potential or actual conflict of interest.

6.2 Managing a Conflict of Interest

6.2.1 Where a conflict of interest exists, it should be dealt with in a transparent, reasonable, fair and accountable way.

6.2.2 Thus, upon knowledge of the disclosure of the conflict of interest by the covered person, the head of the office (Director) or the appropriate official of the agency shall determine whether a conflict of interest exists under these rules.

6.2.3 Where a conflict of interest has been determined to exist, the Director or the appropriate official of the agency and the concerned individual shall undertake a course of action to manage or avoid the conflict of interest.

6.2.4 A course of action may include but is not limited to the following:

(a) Withdrawal or disengagement of the person from involvement in the task or duties assigned under a designation, appointment, contract and the like;

(b) Reassignment or redirection of duties or functions to avoid conflict of interest; or

(c) Adopting safety nets or additional processes to avoid the conflict of interest or ensure objectivity and impartiality of the person in performing his or her duties


Miscellaneous Provisions

7.1 Annexes 1, 2, and 3 appended to this Order are hereby made an integral part thereof.

7.2 The head of the office (Director) or the appropriate official of the agency in coordination with the HRD Unit of the CHED shall be responsible for the enhancement, compliance, monitoring and review of the procedures and any supplemental guidelines that may be formulated in order to effectively implement these policies and rules.

7.3 Applicable provisions of the



All pertinent rules and regulations or parts thereof that are inconsistent with the provisions of this Order are hereby repealed or modified accordingly.



This Order shall take effect immediately.

Done in the City of Quezon this 7th day of October, in the year of Our Lord, two thousand and thirteen, Quezon City, Philippines.

Commission on Higher Education


Definitions of Terms

Close personal relationship Family relationships, include but are not limited to siblings, parent, child, spouse including de facto spouse, partner, relations by marriage, grandchild and grandparent, relationships up to the civil degree of consanguinity as prescribed in relevant laws.

Financial interest Any right, claim, title or legal share in something having a monetary or equivalent value. Examples of financial interest include, but are not limited to, shares, share options, and the right to receive remuneration, such as salary, consulting fees, allowances, discounts and the like.

Perceived conflict of interest Exists where it could appear to a reasonable person that the person's personal interests or otherwise could improperly influence the performance of his or her duties, whether or not this is in fact the case.

Personal interests Personal or private interests include but not limited to financial/business interests and interests arising from close personal relationships or involvement in professional, cultural, sporting, religious or social activities. They also include interests that may lead to a tendency or predisposition to favor or to be prejudiced against a person or a group of persons or an entity. They also include the personal, professional or business interests of individuals or groups the person associates with (e.g., relatives, friends or competitors). Other private interests would include, among others: CHIEDS

financial and economic interests (such as debts or assets)

family or private businesses

affiliations with the stock and non-stock organizations or NGOs

affiliations with political, or professional organizations and other personal interests

involvement in secondary employment that potentially conflicts with an official's public duties

undertakings and relationships (such as obligations to professional, community, ethnic, family, or religious groups in a personal or professional capacity, or relationships to people living in the same household)

enmity towards, or competition with, another person or group.

Potential conflict of interest Arises where a person has personal interests that could conflict with the discharge of his or her duties in the agency in the future. Areas of work or organizational functions that create a high risk for potential conflicts of interest include (but are not limited to):

interacting regularly with the private sector

contracting and procurement

inspecting, regulating or monitoring of standards, businesses, equipment or premises

issuing qualifications or licenses

providing a service where demand exceeds supply

allocating grants of public funds

issuing, or reviewing the issue of, fines or other sanctions

providing subsidies, financial assistance, concessions or other relief to those in need

making determinations or handing down judgment about individuals or disputes

having discretion concerning planning or development applications

carrying out regulatory tests and procedures

making appointments to positions

carrying out functions that are subject to close public or media scrutiny.

Actual conflict of interests This involves a direct conflict between a person's current duties and responsibilities and existing private interests.

Competing interest/conflicting duty Examples of competing interest or conflicting duties when a position in a major government department includes being a member of the board of a statutory authority over which the department has some responsibility; or the agency of the person he belongs to has a competitive relationship, or where one has a regulatory or review role in relation to the other; or when the person has multiple roles, and finds that confidential information acquired in the course of their principal role could be useful to their work in another role.


Guide to Disclosure of Conflict of Interest Statement

I. Rationale for Disclosure

In accordance with the policy of the Commission on conflict of interests, officials and employees of the CHED, including but not limited to those engaged from the private or public sectors to render service or provide expertise, not generally found in the agency but are necessary in the performance of agency functions, shall perform and discharge their duties with the highest degree of excellence, professionalism, intelligence and skill, and thus, shall avoid conflict of interest in the performance of their duties and functions.

II. Disclosing Conflicts of Interest

The foregoing guidelines are formulated to ensure that actual, potential or perceived conflicts of interest are identified and addressed in a robust, fair and transparent manner.

a) Covered persons under the rules (RULE III) have the obligation to disclose an actual, apparent or potential conflict of interest in relation to their work or engagement in the Commission. Thus, persons covered under these rules must consider the potential for conflict in all possible interests including but not limited to the following:

professional, teaching positions;

membership in committees of or role in other organizations;

employment and/or consultancies;

membership in boards of directors, advisory groups;

family and personal relationships; or

business or financial interests

b) A person appointed or engaged by the Commission to perform a service, work or provide expertise in various capacity such as including but not limited to engagement as quality auditors, assessors evaluators and members of the Technical Panel, Technical Committees, Technical Working Groups, must also complete and sign a NON-DISCLOSURE AGREEMENT and lodge a DISCLOSURE OF CONFLICT OF INTEREST STATEMENT. The individual shall clearly state any conflicts of interest that may impact on his or her ability to undertake the task or service for which he or she has been engaged by the Commission. IHTaCE

c) When disclosing private interests or conflicts of interests an individual must provide sufficient detail to the Commission to enable an adequately informed decision to be made about identification of any conflict of interest.

d) If an individual appointed or engaged to undertake CHED activities or functions has, or acquires, an interest, pecuniary or otherwise, in an HEI that could conflict with the proper performance of his or her services or functions with the CHED, he or she must disclose to the concerned CHED official, in writing, details of the nature of the interest as soon as possible.

Form A

Disclosure of Conflict of Interest Statement






Non-Disclosure Agreement Between the Commission on Higher Education



Relating to Various Matters in Connection with the Conduct of Monitoring and Evaluation of Higher Education Programs

Manila, Philippines ___________, 2013

I. The Parties

THIS NON-DISCLOSURE AGREEMENT is entered into this _______ day of 2013


THE COMMISSION ON HIGHER EDUCATION, a government agency with office address at ____________________, where it could be served summons and notices, and represented herein by its CHAIRPERSON, PATRICIA B. LICUANAN, PhD, hereinafter referred to as the FIRST PARTY;


_________________________, (Consultant, assessor, evaluator), with address at ______________________________, where it could be served with summons and notices, hereinafter referred to as the SECOND PARTY.

II. Scope of Agreement and Definition of Confidential Information.

(A) Definition of Confidential Information

For purposes of this Agreement, "confidential, information" means any data or information that has been determined by the FIRST PARTY as confidential and those not generally known to the public, whether in tangible or intangible form, whenever and however disclosed, including, but not limited to:

1. monitoring plans, schedule of activities, specific strategies, present and projected future actions relating to the evaluation and monitoring of HEIs and their programs;

2. any technical information, results of evaluation, reports, data;

3. any other information that should reasonably be recognized as confidential information of the FIRST PARTY such as but not limited to drafts of policies and guidelines and similar documents not intended for general circulation.

Notwithstanding anything in the foregoing to the contrary, confidential Information shall not include information: (1) which was already known by the SECOND PARTY prior to receiving the Confidential Information from the FIRST PARTY; (2) which became rightfully known to the SECOND PARTY from a third-party source not known (after diligent inquiry) by the FIRST PARTY to be under an obligation to SECOND PARTY to maintain confidentiality; (3) that has been or became publicly available through no fault of or failure to act by the SECOND PARTY in breach of this Agreement; (4) that is required to be disclosed in a judicial or administrative proceeding, or is otherwise requested or required to be disclosed by law or regulation.

B. Disclosure of Confidential Information.

From time to time, the FIRST PARTY may disclose Confidential Information to the SECOND PARTY. However, the SECOND PARTY shall: (1) limit disclosure of any Confidential Information and only to those who have a need to know such Confidential Information in connection with the current or contemplated relationship between the parties to which this Agreement relates, and only for that purpose; (2) advise persons connected with the SECOND PARTY of the sensitive nature of the Confidential Information and of the obligations set forth in this Agreement and require such person to keep the Confidential Information confidential; (3) keep all Confidential Information strictly confidential by using a reasonable degree of care, but not less than the degree of care used by it in safeguarding its own confidential information; and (4) not disclose any Confidential Information received by it to any third parties (except as otherwise provided for herein). cDAEIH

C. Use of Confidential Information.

The SECOND PARTY agrees to use the Confidential Information solely in connection with the current or contemplated engagement of the SECOND PARTY in connection with the conduct of monitoring and evaluation of higher education programs and not for any purpose other than as authorized by this Agreement without the prior written consent of an authorized representative of the FIRST PARTY. All use of Confidential Information by the SECOND PARTY shall be for the benefit of the FIRST PARTY.

D. Compelled Disclosure of Confidential Information.

Notwithstanding anything in the foregoing to the contrary, the SECOND PARTY may disclose Confidential Information pursuant to any governmental, judicial, or administrative order, subpoena, discovery request, regulatory request or similar method, provided that the SECOND PARTY promptly notifies, to the extent practicable, the FIRST PARTY in writing of such demand for disclosure so that the FIRST PARTY, at its sole expense, may seek to make such disclosure subject to a protective order or other appropriate remedy to preserve the confidentiality of the Confidential Information.

D. * Duration of the Agreement.

This Agreement shall remain in effect for a period of one (1) year. Notwithstanding the foregoing, the parties' duty to hold in confidence Confidential Information that was disclosed during the term shall remain in effect indefinitely.

E. Remedies.

Both parties acknowledge that the Confidential Information covered in this Agreement is of a sensitive nature and character, and that the unauthorized dissemination of the Confidential Information would result to some damage or prejudice to concerned parties and such might give rise to lawsuits or other remedies directed against the FIRST PARTY. Therefore, both parties hereby agree that the FIRST PARTY shall be entitled to injunctive relief preventing the dissemination of any Confidential Information in violation of the terms hereof. Such injunctive relief shall be in addition to any other remedies available hereunder, whether at law or in equity.

FIRST PARTY shall be entitled to recover its costs and fees, including reasonable attorneys' fees, incurred in obtaining any such relief. Further, in the event of litigation relating to this Agreement, the prevailing party shall be entitled to recover its reasonable attorney's fees and expenses.

F. Return of Confidential Information.

SECOND PARTY shall immediately return and redeliver to the FIRST PARTY all tangible material embodying the Confidential Information provided hereunder and all reports, records, and all other documents or materials and all copies of any of the foregoing, including "copies" that have been converted to computerized media in the form of image, data or word processing files either manually or by image capture based on or including any Confidential Information, in whatever form of storage or retrieval, upon (or earlier) (1) the completion or termination of the dealings between the parties contemplated hereunder; (2) the termination of this Agreement; or (3) at such time as the FIRST PARTY may so request.

G. Notice of Breach.

SECOND PARTY shall notify the FIRST PARTY immediately upon discovery of any unauthorized use or disclosure of Confidential Information by SECOND PARTY or its Representatives, or any other breach of this Agreement by SECOND PARTY or its Representatives, and will cooperate with efforts by the FIRST PARTY to help the FIRST PARTY regain possession of Confidential Information and prevent its further unauthorized use.

H. Warranty.

The FIRST Party is not under any obligation under this Agreement to disclose any Confidential Information it chooses not to disclose. Neither Party hereto shall have any liability to the other party nor to the other party's representatives resulting from any use of the Confidential Information except with respect to disclosure of such Confidential Information in violation of this Agreement.

I. Mutual Trust

The Parties declare it their intention that this NON DISCLOSURE Agreement shall operate between them with fairness, transparency and without detriment to either of them in accordance with the provisions and purposes of the Agreement. Therefore, nothing in this Agreement shall prevent the Parties in executing more detailed and specific agreements or contracts duly negotiated in good faith and in the spirit of equity, fairness and mutual benefit.

J. Further Assurance

The Parties likewise agree to execute and do all documents and acts as shall be reasonably necessary to realize the purposes of this Agreement and to give it full force and effect.

K. Miscellaneous.

(1) This Agreement constitutes the entire understanding between the parties and supersedes any and all prior or contemporaneous understandings and agreements, whether oral or written, between the parties, with respect to the subject matter hereof. This Agreement can only be modified by a written amendment signed by the party against whom enforcement of such modification is sought. CcaASE

(2) The validity, construction and performance of this Agreement shall be governed and construed in accordance with Philippine laws (state) applicable to contracts as well as other related laws.

(3) Any failure by either party to enforce the other party's strict performance of any provision of this Agreement will not constitute a waiver of its right to subsequently enforce such provision or any other provision of this Agreement.

(4) This Agreement is personal in nature, and neither party may directly or indirectly assign or transfer it by operation of law or otherwise without the prior written consent of the other party, which consent will not be unreasonably withheld. All obligations contained in this Agreement shall extend to and be binding upon the parties to this Agreement and their respective successors, assigns and designees.

L. Effectivity

This Agreement shall take effect upon its execution and shall be in full force and effect until the duration of the Agreement as stipulated in item II above unless sooner terminated in accordance with the terms and conditions of the Agreement.


BEFORE ME, a Notary Public this ________ day of _________ 2013 in _________ personally appeared the following:

_________________________ CTC/Passport No. ____________ Place Issued/Data ____________________________

__________________________ CTC/Passport No. _______________

Place Issued/Date ___________________

known to me and to me known to be the same persons who executed the foregoing instrument and acknowledged to me that the same is their free and voluntary act and deed and of the corporation they represented.

IN WITNESS WHEREOF, I have hereunto set my hand on the date and place first above written.

Notary Public

Doc. No. _______
Page No. _______
Book No. _______
Series of 2013.

M. Signatories.

IN WITNESS WHEREOF, the Parties have executed Agreement, agree to abide by its provisions, and hereto affixed their signatures accordingly this ______ day of _______ at _________________________.

The First Party
The Second Party
By: __________________
By: __________________
Signed in the presence of:


Policies and Procedures for Handling Conflicts of Interest with FDA Advisory Committee Members, Consultants, and Experts



DATE : OCTOBER 22, 2013

Attached for your information and guidance is CHED Order No. 01, series of 2013, a set of policies, rules and guidelines that will serve as a supplement to the CHED

Provisions for disclosure and the management of conflict of interest have been included in the CHED Order to ensure objectivity and impartiality of the person in performing his/her duties, particularly in the monitoring and evaluation of higher education programs. Disclosure of Conflict of Interest Statement and the Non-Disclosure Agreement forms have to be accomplished by both CHED and the covered persons identified in the CHED Order.

For strict implementation.


Published in the Official Gazette, Vol. 110, No. 31, page 4947 on August 4, 2014.