Senate OKs bill barring officials’ kin from gov’t…
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Senate OKs bill barring officials’ kin from gov’t contracts
**MANILA –** The Senate on Wednesday approved a bill barring relatives of key government officials and personnel from entering into government contracts, while agreeing to clarify in the bicameral conference committee possible unintended consequences of its broad coverage.
Senate Bill No. 1962, or the proposed Government Contracting and Procurement Integrity Act, received 15 affirmative votes, with no negative vote and no abstention.
The measure prohibits relatives within the fourth civil degree of consanguinity or affinity from entering into contracts involving government agencies where their relatives exercise official functions.
Before the vote, Senate Majority Leader Juan Miguel Zubiri raised concerns that the measure could be interpreted to cover transactions beyond procurement, including environmental compliance certificates, foreshore and pasture lease agreements, 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 Senate should ensure that the prohibition does not unintentionally expose public officials to criminal liability over ordinary government permits, leases or similar arrangements.
Senate President Win Gatchalian acknowledged the concern but said the bill was intended primarily to prevent 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 aims to prevent families from circumventing procurement rules to secure construction contracts in the Department of Public Works and Highways and other infrastructure agencies.
Gatchalian agreed that some provisions may need further refinement during bicameral deliberations.
“There might be unseen consequences or unseen impact to some of the examples that you mentioned earlier,” he said.
Zubiri subsequently agreed not to delay the measure after receiving assurance that the concerns would be clarified during the bicameral conference committee.
Under SB 1962, the prohibition covers relatives of Cabinet secretaries, undersecretaries and assistant secretaries, as well as officers and members of governing boards of government-owned or -controlled corporations and state universities and colleges.
Also covered are officials of procuring entities, 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 involving supplies, materials, machinery, equipment and services; infrastructure projects; joint ventures; public-private partnerships; and similar arrangements involving private entities and the government.
It also applies to corporations when a prohibited relative is a beneficial owner, corporate officer, director or trustee.
Private entities seeking government contracts would be required to submit a sworn affidavit declaring that their officers, directors, trustees and beneficial owners are not related within the prohibited degree to covered government officials or personnel.
They must maintain compliance throughout the duration of the contract and disclose within 15 days any prohibited relationship that subsequently arises.
The company would then be required to remove or divest the disqualified person within a reasonable period prescribed by the appropriate sectoral regulatory agency.
Violators face imprisonment of one to three years, a fine of at least PHP100,000 and perpetual disqualification from participating in government procurement.
Responsible corporate officers, directors, trustees or beneficial owners who knowingly participated in or authorized the violation, or whose gross negligence allowed it, may also be held liable.
Public officials who knowingly help a disqualified entity secure a government contract, or knowingly allow the violation, would face the same imprisonment and fine, as well as perpetual disqualification from public office, without prejudice to liabilities under anti-graft, procurement and other laws.
The bill exempts highly technical, proprietary, exclusive or confidential contracts duly certified as such by the concerned sectoral regulatory agency.
Once enacted, implementing rules must be jointly 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. ***(PNA)***
#philippines #pinoy #ph
**MANILA –** The Senate on Wednesday approved a bill barring relatives of key government officials and personnel from entering into government contracts, while agreeing to clarify in the bicameral conference committee possible unintended consequences of its broad coverage.
Senate Bill No. 1962, or the proposed Government Contracting and Procurement Integrity Act, received 15 affirmative votes, with no negative vote and no abstention.
The measure prohibits relatives within the fourth civil degree of consanguinity or affinity from entering into contracts involving government agencies where their relatives exercise official functions.
Before the vote, Senate Majority Leader Juan Miguel Zubiri raised concerns that the measure could be interpreted to cover transactions beyond procurement, including environmental compliance certificates, foreshore and pasture lease agreements, 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 Senate should ensure that the prohibition does not unintentionally expose public officials to criminal liability over ordinary government permits, leases or similar arrangements.
Senate President Win Gatchalian acknowledged the concern but said the bill was intended primarily to prevent 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 aims to prevent families from circumventing procurement rules to secure construction contracts in the Department of Public Works and Highways and other infrastructure agencies.
Gatchalian agreed that some provisions may need further refinement during bicameral deliberations.
“There might be unseen consequences or unseen impact to some of the examples that you mentioned earlier,” he said.
Zubiri subsequently agreed not to delay the measure after receiving assurance that the concerns would be clarified during the bicameral conference committee.
Under SB 1962, the prohibition covers relatives of Cabinet secretaries, undersecretaries and assistant secretaries, as well as officers and members of governing boards of government-owned or -controlled corporations and state universities and colleges.
Also covered are officials of procuring entities, 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 involving supplies, materials, machinery, equipment and services; infrastructure projects; joint ventures; public-private partnerships; and similar arrangements involving private entities and the government.
It also applies to corporations when a prohibited relative is a beneficial owner, corporate officer, director or trustee.
Private entities seeking government contracts would be required to submit a sworn affidavit declaring that their officers, directors, trustees and beneficial owners are not related within the prohibited degree to covered government officials or personnel.
They must maintain compliance throughout the duration of the contract and disclose within 15 days any prohibited relationship that subsequently arises.
The company would then be required to remove or divest the disqualified person within a reasonable period prescribed by the appropriate sectoral regulatory agency.
Violators face imprisonment of one to three years, a fine of at least PHP100,000 and perpetual disqualification from participating in government procurement.
Responsible corporate officers, directors, trustees or beneficial owners who knowingly participated in or authorized the violation, or whose gross negligence allowed it, may also be held liable.
Public officials who knowingly help a disqualified entity secure a government contract, or knowingly allow the violation, would face the same imprisonment and fine, as well as perpetual disqualification from public office, without prejudice to liabilities under anti-graft, procurement and other laws.
The bill exempts highly technical, proprietary, exclusive or confidential contracts duly certified as such by the concerned sectoral regulatory agency.
Once enacted, implementing rules must be jointly 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. ***(PNA)***
#philippines #pinoy #ph
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