FIFTEENTH CONGRESS OF THE 
REPUBLIC OF THE PHILIPPINES 
First Regular Sessiou 
) 
) 
) 
SENATE 
S. NO. _-=-4=2=6_ 
Introduced by Senator Antonio "Sonny" F. Trillanes IV 
Explanatory Note 
The Government Procurement Reform Act (Republic Act No. 9184) enacted on, January 10, 
2003 was envisioned to employ the much needed refonns in the country's procurement system. 
Six years after its enactment, corruption in the public and private sector in the country is still 
pervasive and deep-rooted, according to both government and international sources. 
The Philippines has fallen further in a global survey ranking counties in terms of perceived 
corruption, dropping to 141 st, down 10 places from last year, among 180 countries surveyed by 
Transparency International. The country scored a 2.3 in the Corruption Perceptions Index (CPI), 
lower than last year's 2.5, on a scale where lOis the highest possible grade. Compared to its 
,neighbors, the Philippines scored lower than Singapore (9.2), Malaysia (5.7), Thailand (33, 
Vietnam (2.7); and Indonesia (2.6). 
In the case of the fertilizer fund scam, a number of foundations, peoples' organizations, ,non-
government organizations and associations have become agents for money laundering 
transactions, together with the National Agricultural and Fisheries Council, a regular attached 
agency of the Department of Agriculture. Findings of the Anti-Money Laundering Council 
(AMLC) revealed that a fIrm - Livelihood Corporation -where fonner Undersecretary Bolante of 
the Department of Agriculture transferred PI72.6'tqillion to Molugan Foundation, Inc. and P40 
million to Assembly of Gracious Samaritan Foundation, Inc. (AGS). AMLC also found out that 
Molugan Foundation transferred P38 million to the AGS. 
In this light, this Act seeks to amend the Government Procurement Reform Act of 2002 by 
including private institutions, non-government organizations, people's organizations and other 
private entities that receive government monies in the coverage of the Procurement Act. It is 
hoped that the enactment of this measure would make far implementation stricter and would 
tighten the registration and regulation of private entities, NGOs, and POs. 
In view of the foregoing, immediate approval of this measure is earnestly sought. 
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FIFTEENTH CONGRESS OF THE 
REPUBLIC OF THE PHILIPPINES 
First Regular Session 
) 
) 
) 
SENATE 
S. NO. _4=.=2-=6_ 
\ 
, 
Introduced by Senator Antonio "Sonny" F. Trillanes IV 
AN ACT 
AMENDING SECTION 4 OF REPUBLIC ACT NO. 9194, OTHERWISE KNOWN AS 
THE GOVERNMENT PROCUREMENT REFORM ACT ON ITS SCOPE AND 
APPLICATION 
Be it enacted by the Senate and House of Representatives of the Philippines in Congress 
assembled,' 
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SECTION 1. Section 4 of Republic Act No. 9184 is hereby amended to read as follows: 
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ARTICLE I 
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GENERAL PROVISIONS 
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SEC. 4. Scope and Application. - This Act shall apply to 
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the Procurement and 
Infrastructure Proj ects, 
Goods, 
and 
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Consulting Services, regardless of source of funds, whether local 
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or ' foreign, by all branches and instrumentalities of government,. 
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its department, offices and agencies, including government-owned 
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and/or controlled corporations and local government units; subject 
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to the provisions of Commonwealth Act No. 138; PROVIDED 
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THAT, PRIVATE INSTITUTIONS, NONGOVERNMENT 
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ORGANIZATIONS, PEOPLES' ORGANIZATIONS AND 
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OTHER PRIVATE ENTITIES WHO OR WHICH ARE 
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RECIPIENTS OF GOVERNMENT FUNDS ARE LIKEWISE 
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COVERED BY THIS SECTION INSOFAR AS 
THE 
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AMOUNT 
THEY 
HAVE 
RECEIVED 
FROM 
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GOVERNMENT. Any treaty or international or executive 
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agreement affecting the ,subject matter of this Act to which the 
Philippine government is a signatory shall be observed, 
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SEC. 2. Repealing Clause. - Any other law, presidential 
decree or issuance, executive order, letter of instruction, 
administrative order, proclamation, charter, rule or regulation 
and/or parts thereof contrary to or inconsistent with the provisions 
ofthis Act is hereby repealed, modified or amended accordingly. 
SEC. 3. Effectivity Clause. - This Act shall take effect 
fifteen (IS) days foHowing its publication in the Official Gazette or 
in two (2) newspapers of general circulation. 
Approved, 
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