By Benjamin Cuaresma
MANILA — The Senate on Wednesday approved a measure that would bar relatives of key government officials and procurement personnel from securing government contracts, strengthening safeguards against conflicts of interest in public bidding.
Senate Bill No. 1962, or the proposed Government Contracting and Procurement Integrity Act, was approved with 15 affirmative votes, with no negative vote and no abstention.
The bill prohibits relatives within the fourth civil degree of consanguinity or affinity from entering into contracts with government agencies where their relatives exercise official functions.
Senate Majority Leader Juan Miguel Zubiri, however, warned that the bill’s broad coverage could extend beyond procurement to transactions such as environmental compliance certificates, foreshore and pasture leases, permits and licenses.
“So, these are questions that we want to make sure that we are answered during the time of the bicameral conference committee, Mr. President,” Zubiri said.
He said the measure must not inadvertently expose public officials to criminal liability over ordinary government transactions that are not procurement contracts.
Senate President Win Gatchalian acknowledged the concern but said the bill was primarily intended to stop relatives of public officials from cornering government contracts.
“The intention of the measure is very noble and timely because of what happened with the flood control issue,” Gatchalian said.
He said the proposal seeks to prevent families from circumventing procurement rules to secure construction projects, particularly those involving the Department of Public Works and Highways and other infrastructure agencies.
Gatchalian agreed that some provisions could be refined during the bicameral conference committee to address possible unintended consequences.
“There might be unseen consequences or unseen impact to some of the examples that you mentioned earlier,” he said.
Zubiri agreed to let the measure proceed after receiving assurances that the concerns would be addressed during bicameral deliberations.
The prohibition covers relatives of Cabinet secretaries, undersecretaries and assistant secretaries, as well as officers and governing board members of government-owned or -controlled corporations and state universities and colleges.
It also covers officials and personnel involved in procurement, including procurement agents, members of bids and awards committees and technical working groups, BAC secretariat personnel, project management office heads, end users or implementing units, and project consultants.
The restriction applies to contracts for supplies, materials, machinery, equipment and services, infrastructure projects, joint ventures, public-private partnerships and similar government-private arrangements.
Corporations would also be covered if a prohibited relative is a beneficial owner, corporate officer, director or trustee.
Private entities seeking government contracts must submit a sworn affidavit declaring that their officers, directors, trustees and beneficial owners are not related within the prohibited degree to covered officials or personnel.
They must maintain compliance throughout the contract and report within 15 days any prohibited relationship that subsequently arises. The disqualified individual must then be removed or divested within a period prescribed by the appropriate sectoral regulatory agency.
Violators face one to three years’ imprisonment, a fine of at least PHP100,000 and perpetual disqualification from government procurement.
Public officials who knowingly help a disqualified entity obtain a government contract, or knowingly allow a violation, would face the same penalties and perpetual disqualification from public office, without prejudice to liability under anti-graft, procurement and other laws.
The bill exempts highly technical, proprietary, exclusive or confidential contracts duly certified by the appropriate sectoral regulatory agency.
If enacted, implementing rules must be issued within 60 days by the Government Procurement Policy Board, Department of the Interior and Local Government, and Governance Commission for GOCCs, in consultation with concerned agencies.
The measure would amend relevant provisions of Republic Act No. 12009, or the New Government Procurement Act.
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