Senator Bam Aquino on Tuesday announced the inclusion of criminal penalties in the proposed "Philippine National Budget Blockchain Act" or Senate Bill No. 1330, for government agencies that fail to disclose public budget documents as mandated by law.

During a joint hearing of the Committees on Science and Technology and on Finance, Senator Bam Aquino said the measure—now rebranded as the “CADENA Act” from its earlier title “Blockchain the Budget”—aims to institutionalize transparency and accountability in public finance through the use of blockchain technology.

The senator emphasized that Section 16 of the bill — the penalties provision — serves as the “teeth of the law.”

“Para sa akin is itong mahalagang parte ng batas na kung saan ginagawa nating penalty. Nagbibigay tayo ng penalty sa hindi pagsunod sa pagpopost ng information,” Aquino said.

“Naglagay po tayo ng penalty, kung may mga dokumento na hindi po na-publish ng ahensya sa kanilang website...This is the first time in history na maglalagay tayo ng criminal offense sa mga hindi magshe-share ng data na nakalagay sa ating batas," he added.

Under Section 5 – Disclosure of Public Budget Data, which is also described by Aquino as the “backbone of the bill, all agencies are required to upload and publish budget-related documents on the Cadena blockchain platform within seven days of approval, issuance, or completion. Documents covered include the National Expenditure Program (NEP), General Appropriations Act (GAA), disbursement vouchers, audit reports, contracts, and bills of materials.

Agencies that fail to comply within seven to 30 days without a valid reason, publish false or misleading information, or conceal and destroy required documents face imprisonment of six to fifteen years and fines of up to ₱3 million.

Aquino said these provisions directly address past issues of corruption and lack of accountability. Citing the “Flood Control scandal” as an example, which was flagged by President Ferdinand "Marcos" Jr.

He explained that the law would ensure the public has access to detailed spending information.

“If these law would pass we will know who the contractors are. We will know what are the projects have done [and] not being done. We will know magkano ang nagastos sa mga proyekto,” he said.

Aquino also noted that failure to upload documents within seven days would initially incur administrative sanctions such as suspension or reprimand. However, concealment beyond 30 days would constitute a criminal offense, particularly if found to involve fraudulent contracts.

“If found that what was hidden na kontrata is fraudulent, then the responsible officer, for sharing that data, can be charged as a co-conspirators of the groups who are involved in the fraudulent activity,” he added.

The senator also supported calls to include the names of recipients of government aid in the required disclosures, ensuring that assistance reaches real beneficiaries and not “ghost” accounts.

Aquino said that this measure ensures that every peso of taxpayers’ money reaches real people in need. The senator added that the CADENA Act empowers citizens to see how their taxes are spent, down to the cost of materials used in government projects.

He expressed confidence that with the system’s blockchain technology ensuring verifiability, traceability, and auditability, corruption could be significantly curbed.

“Solusyon at serbisyo para sa taongbayan ‘yan ang hangarin ng batas na ito, at syempre po para labanan ang korapsyon,” Aquino emphasized.

“Ang Cadena act ay isa sa pinaka klarong paraan para mabantayan ng taong-bayan ang paggastos ng kanilang buwis,” he added.

The committee aims to finalize the measure before the end of the year, with Aquino hoping to pass the law by the first quarter of 2026.