Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City, Metro Manila

TWENTIETH CONGRESS
First Regular Session

nouse BL No. 3661

Introduced by Rep. FERDINAND ALEXANDER A. MARCOS
1* District, locos Norte

EXPLANATORY NOTE

“Public office is a public trust’, declares the 1987 Philippine Constitution. It
continues, “Public officers and employees must at all times be accountable to the
people, serve them with utmost responsibility, integrity, loyalty, and efficiency, act
with patriotism and justice, and lead modest lives.” (Section 1, Article XI)

The government procurement system — which includes the laws (primarily Republic
‘Act No. 12009), rules and regulations (e.g., the IRR of RA 12009), as well as the
standard bidding documents (i.e, affidavit of disclosure of relationships) ~ provides
for the mandatory disclosure of relationship, by consanguinity or affinity up to the
third civil degree, between the private bidder and the head of the procuring entity, the
procurement agent, members and secretariat of the bids and awards committee, the
technical working group (TWG), head of the project management office (PMO), or
the end-user or implementing unit, and the project consultants; and disqualifies
bidders related to such persons from participating in the procurement contracts of the
procuring entity concemed.

The said regulatory disclosures and corresponding disqualification are designed to
uphold fairness and impartiality in the procurement process by preventing undue
influence or favoritism. In tur, this is intended to protect public interest and scarce
resources. Notwithstanding such guardrail, many instances of irregularities and
corruption are still committed that compromise the principles of transparency,
accountability and integrity in the government procurement process.

This bill, therefore, seeks to tighten the process by expanding the ambit of
disqualification so as to prohibit relatives of public officials within the fourth civil
degree of consanguinity or affinity from entering into contracts with any government
agency or instrumentality, including government owned or controlled corporations
and local government units.

In view of the foregoing, the immediate approval of this bill is earnestly sought.

FERDINAND ALEXANDER A. MARCOS


Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City, Metro Manila

TWENTIETH CONGRESS
First Regular Session

HOUSE BILL NO.366

Introduced by Rep. FERDINAND ALEXANDER A. MARCOS
1* District, locos Norte

AN ACT
DISQUALIFYING RELATIVES OF PUBLIC OFFICIALS WITHIN THE
FOURTH CIVIL DEGREE OF CONSANGUINITY OR AFFINITY IN ALL
GOVERNMENT CONTRACTS

Be it enacted by the Senate and the House of Representatives of the Philippines in
Congress assembled:

SECTION 1. Disqualification on the Basis of Relations. — Notwithstanding any
provision of law to the contrary, all relatives of public officials within the fourth civil
degree of consanguinity or affinity shall be barred from entering into any government
contract.

For purposes of this Act, the term “public official” shall refer to heads of agency,
heads of procuring entity, members of governing board, or any public officer or
employee exercising policy-determining, supervisory, or managerial functions,
whether in the career or non-career service, including military and uniformed
personnel, whether or not they receive compensation, regardless of amount.

Moreover, the term “government contract” shall refer to any contract between a
private entity and any government agency or instrumentality, including government
owned or controlled corporations (GOCCs) and local government units, that pertains
to (a) supplies, materials, machinery, equipment, and services; (b) infrastructure
projects; (c) joint ventures; (4) public-private partnership projects; and (e) other
similar or analogous agreements or undertaking to which the latter is the procuring
party, partner, shareholder, implementing agency, end user, or a party contributing
public funds or property: Provided, That, this shall exclude contracts that are highly
technical, proprietary, or confidential in nature.

SEC. 2. Implementing Rules and Regulations (IRR). ~ Within sixty (60) days from
the effectivity of this Act, the Government Procurement Policy Board, the Department
of the Interior and Local Government, the Public-Private Partnership Center, and the
Governance Commission for GOCCs, in consultation with government agencies
concerned, shall jointly promulgate the rules and regulations to effectively implement
the provisions of this Act.


SEC. 3. Repealing Clause. — All laws, decrees, orders, rules and regulations, other
issuances, and parts thereof, which are inconsistent with the provisions of this Act, are
hereby repealed or modified accordingly.

SEC. 4. Effectivity. — This Act shall take effect fifteen (15) days after its complete
publication in the Official Gazette or in a newspaper of general circulation.

Approved,