• 
FIFTEENTH CONGRESS OF THE 
REPUBLIC OF THE PHILIPPINES 
First Regular Session 
SENATE" 
S.B" NO. 2570 
" 
INTRODUCED BY SENATOR VILLAR 
EXPLANATORY NOTE 
1 0 [lCT 26 P.:: :Q/I 
Several companies from the Philippines were blacklisted by the World Bank for 
engaging in "collusive practices" during the bidding of projects financed by the bank. 
These corrupt incidents should not be allowed to recur in any manner or form in this 
country so that we do not perpetuate corruption in the country. 
This bill prohibits corporations, constructions firms, companies, partnerships, 
associations, legal entities or individuals which or who are officially banned by 
international funding agencies like the World Bank, for engaging in bribery, corruption or 
rigging of public biddings, or any act that taints those transactions from participating in 
any public bidding for construction contracts or agreements of any kind with the 
government. 
The bill also provides that existing contracts of private corporations, construction 
firms, companies, partnerships, associations, legal entities or individuals entered into with 
the government that are officially declared by international funding agencies to be 
impaired by anomalies, irregularities or corruption of any kind shall be rescinded 
forthwith by the government. 
This legislative measure provides that in case of violations of this Act committed 
by corporations, construction firms, companies, partnerships, associations or legal entities 
the president, chief executive officer, manager, administrator, directors, or any other 
officer in charge of the management and administration of the business shall suffer the 
penalty of imprisonment of not less than six (6) years and one (I) day, but, not more than 
ten (I 0) years and a fine of not less than One Million (Pl,OOO,OOO.OO) Pesos at the 
of the Court. Likewise, they shall be held civilly and criminally liable under other 
applicable laws. 
In case of government officials violating tM provisions of this Act, they shall 
suffer the penalty of imprisonment of not less than six (6) years and one (I) day, but not 
more than twelve (12) years and a fine of not less than Five Hundred Thousand 
(P500,OOO.OO) Pesos nor more than Two Million (P2,OOO,OOO.OO) Pesos at the 
discretion of the Court. In addition, the public officer involved shall also suffer the 
penalty of perpetual absolute disqualification from public office. This is without 
prejudice to other civil, criminal and administrative cases that may be filed against the 
public officers concerned. 
The Government must be vigilant in defending the integrity and reliability of 
public transactions, and should hold wrongdoers accountable under the law. 


In view thereof, the immediate approval of this bill is e 
., 
MANNY V LLAR 


FIFTEENTH CONGRESS OF THE 
REPUBLIC OF THE PHILIPPINES 
First Regular Session 
SENATE 
S.B. NO. 2570 
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INTRODUCED BY SENATOR VILLAR 
AN ACT PROHIBITING CORPORATIONS, CONSTRUCTION COMPANIES, 
FIRMS, PARTNERSHIPS, LEGAL ENTITIES' OR INDIVIDUALS WHICH OR 
WHO ARE BANNED BY INTERNATIONAL FUNDING AGENCIES LIKE THE 
WORLD BANK, FROM PARTICIPATING IN ANY PUBLIC BIDDING OR 
CONSTRUCTION CONTRACT OR AGREEMENT OF ANY KIND WITH THE 
GOVERNMENT, AND PROVIDING PENALTIES IN VIOLATION THEREOF 
Be it enacted by the Senate and House of Representatives of the 
Philippines in Congress assembled: 
SECTION 1. Statement of Policy. It is the policy of the State to maintain integrity 
and honesty in the public service and institute appropriate measures to curb graft 
and corruption. The principle of transparency and accountability in government 
service, shall, at all times be observed. 
SECTION 2. (A) Prohibition. Private corporations, construction companies, firms, 
partnerships, associations, legal entities or persons which or who are banned by 
international funding agencies like the World Bank, for engaging in bribery, 
corruption or rigging of public biddings, or any act that corrupts transactions with 
the government are prohibited from participating in any public bidding or from 
being awarded construction contracts or any other agreement in any manner or 
form by government agencies local or national. ' 
(B) The prohibition defined above shall continue,to be applicable notwithstanding 
any change in the names of the private corporations, construction firms, 
companies, partnerships, associations, legal entities or persons or any alteration 
in the membership in their boards of directors. The president, chief executive 
officer, manager, administrative officer, directors, or any other officer who were 
involved in the proscribed acts either in their personal capacity or as officer(s) of 
,the corporations, construction firms, companies, partnerships, associations or 
legal entities as the persons-in-charge of the management and administration of 
the business or businesses concerned shall likewise be banned as provided 
under the first paragraph of this section. 
(C) The prohibition on the persons or individuals mentioned in this section shall 
likewise apply to them personally and to the corporations, construction 
companies, firms, partnerships, associations, legal entities or persons in which 
they are stock or share holders, counsel, conSUltants or investors, officers or 
employees in any capacity. The prohibition also applies where the individual 
spouses, children or relatives by consanguini,ty or affinity of the persons or 
individuals mentioned in the preceding sentence up to the third civil degree are 


connected in any of the capacities above mentioned with the aforementioned 
banned corporations, construction companies, firms, partnerships, associations, 
legal entities or persons. 
SECTION 3. Rescission of Contract. Contracts of private corporations, 
construction firms, companies, partnerships, associations, legal entities or 
persons entered into with the government which are officially declared by 
international funding agencies to be impaired by acts of bribery, rigging of bids or 
any similar corrupt acts or irregularities shall be rescinded by the government 
within one (1) month from such declaration. Thereafter, the Office of the Solicitor 
General shall initiate within ten (10) days from the rescission thereof, proper 
cases for the recovery of funds previously paid to the offending corporations, 
construction firms, companies, partnerships, legal entities or persons and file the 
appropriate criminal and civil cases against them. 
SECTION 4. Penalfy Clause. In case of violations of this Act committed by 
corporations, construction firms, companies, partnerships, associations, or legal 
entities, the president, chief executive officer, manager, administrator, directors 
of the board, any other officer in charge of the management and administration 
of, or the individual running the business or businesses concerned shall suffer 
the penalty of imprisonment of not less than six (6) years and one (I)da y to ten 
years and a fine of not less than One Million (PI ,000,000.00) Pesos or more than 
Five Million (P5,000,000.00) Pesos. Likewise, the person concerned shall be 
held civilly and criminally liable under other applicable laws. In the case of 
government officials violating the provisions of this Act, they shall suffer the 
penalty of imprisonment of not less than six (6) years and one (1) day, but not 
more than twelve (12) years and a fine of not less than Five Hundred Thousand 
(P500,000.00) Pesos nor more than Two Million (P2,000,000.00) Pesos. In 
addition, the public officer involved shall also suffer the penalty of perpetual 
absolute disqualification from public office. The penalties above mentioned shall 
be without prejudice to other civil, criminal and administrative cases that may be 
filed against them. 
SECTION 5. Implemenfing Rules and Regulations. - Within sixty (60) days from 
the approval of this bill, the National Economic Development Authority (NEDA) 
shall issue such guidelines, orders or rules and regulations as may be necessary 
to facilitate the implementation of the provisions of this Act. 
SECTION 6. Repealing Clause. All laws, orders, decrees, proclamations, rules 
and regulations or parts thereof inconsistent with the provisions of this Act are 
hereby repealed or modified accordingly. 
SECTION 7. Separability Clause. If, for any reason, any section or provision of 
this Act is held unconstitutional or invalid, the other sections or prOVisions hereof 
shall not be affected and thereby remain in full force and effect. 
SECTION 8. Efecfivity Clause. This Act shall take effect fifteen (15) days after its 
complete publication in at least two (2) newspap~rs of general circulation. 
Approved,