Manila: The Department of Education (DepEd) has entered into a partnership with Open Ownership to enhance transparency in the procurement process within the education sector. Under this newly signed memorandum of agreement (MOA), the DepEd will initiate the use of beneficial ownership data in procurement activities.

According to Philippines News Agency, beneficial ownership refers to the individuals who ultimately own, control, or benefit from companies involved in government contracts, beyond just the named incorporators or signatories. Education Secretary Sonny Angara emphasized that this initiative will help protect the substantial budget allocated for education by identifying the companies engaged in government transactions.

Angara stated that clear identification of beneficial ownership will facilitate the avoidance of problems and expedite the delivery of classrooms, books, and other essential resources to learners. He further noted that this partnership will help mitigate risks of corruption and other illicit activities in procurement processes, ensuring that funds are allocated to schools rather than being misappropriated.

The agreement between DepEd and Open Ownership will allow both parties to explore how beneficial ownership information can reinforce the transparency and integrity of procurement contracts. They will examine whether the data can be used to identify potential conflicts of interest, undisclosed related parties, bid rotation, and market concentration.

Through the pilot utilization of beneficial ownership data, DepEd aims to identify useful data points and assess their impact on various stages of procurement. Open Ownership will offer technical assistance, capacity-building, and analytical tools, which include organizing workshops and co-developing an impact measurement framework for the agency's procurement officials.

Open Ownership is an international organization that aids governments in implementing transparency in beneficial ownership.