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FOURTEENTH,CONGRESS OF THE 
) 
REPUBLIC OF THE PHILIPPINES ) 
Second Regular Session 
) 
S E N A T E  
fntroduced by Senator Richard J.,Gordon, Chairman and Members of the 
,Committee on Accountability of Public Officers and Investigations 
~- 
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EXPLANATORYNOTE 
The Government Procurement Reform Act (Republic Act No. 9184) enacted 
on, January I O ,  2003 was envisioned to employ the much needed reforms in the 
country's p,rocurementsystem. Six years afler its enacbnent, corruption in the public 
and private sector in the country is still pervasive and deeprooted, according to both 
government and international sources. 
The Philippineshas fallen further in a global survey ranking counties in terms 
of perceived corruption, dropping to 141", 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 10 is 
the highest possible grade. Compared to its ,neighbors, the Philippines scored lower 
than Singapore (9.2), Malaysia (5.7), Thailand ( 3 3 ,  Vietnam (2.7); and Indonesia 
In the case of the fertilizer fund scam, a number of foundations, peoples' 
organizations, ,non-governmenb organiktions and associations have become agents 
for money laundering transactions, together with the National Agricultural and 
Fisheries Council, a regular attached agency of the Deparbnent of Agriculture. 
Findings of the Anti-Money Laundering Council (AMLC) revealed that a firm - 
LiveIihoodCorporation -where former Undersecretary Bolante of the Department of 
Agriculture transferred P172.6'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, peoples 
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.eniities, NGOs, and POs. 
sought. 
(23). 
' 
, 
In view of the foregoing, 
measure is earnestly 
- 
Chairman 


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FOURTEENTH CONGRESS OF THE 
) 
REPUBLIC OF THE PHILIPPINES 
) 
Second Regular Session 
) 
'3 
MjR -3 
p i :sj9 
S E N A T E  
Introduced by Senator Richard J. Gordon, Chairman and Members of the 
Committee on Accountability of Public Officers and Investigations 
AN ACT 
AMENDING SECTION 4 OF REPUBLIC ACT NO. 9194, OTHERWISE 
KNOWN ASTHE 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: 
SECTION I .  Section 4 of Rep.ublic Act No. 9184 is hereby amended to read 
as follows: 
ARTILE I 
GENERAL PROVISIONS 
x x x  
SEC. 4. Scope and Application. - This Act shall apply 
to the Procurement and Infrastructure Projects, Goods, and 
Consulting Services, regardless of source of funds, whether 
local or ' foreign, by all branches and instrumentalities of 
government,. its department, offices and agencies, including 
government-owned and/or controlled corporations and local 
government units; subject to the provisions of Commonwealth 


Act No. 138; PROVIDED THAT, PRIVATE INSTITUTIONS, 
NONGOVERNMENT 
ORGANIZATIONS, 
PEOPLES’ 
ORGANIZATIONS AND OTHER PRIVATE ENTITIES WHO OR 
WHICH ARE RECIPIENTS OF GOVERNMENT FUNDS ARE 
LIKEWISE COVERED BY THIS SECTION INSOFAR AS THE 
AMOUNT THEY HAVE RECEIVED FROM GOVERNMENT. 
Any treaty or international or executive agreement affecting the 
subject matter of this Act to which the Philippine government is a 
signatory shall be observed. 
x x x  
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 of this Act is hereby 
repealed, modified or amended accordingly. 
SEC. 3. Effectivity Clause. - This Act shall take effect fifteen 
(15) days following its publication in the Official Gazette or in two (2) 
newspapers of general circulation. 
Approved,