Manila: The Senate approved a bill on Wednesday that prohibits relatives of key government officials from engaging in government contracts. The Senate Bill No. 1962, known as the Government Contracting and Procurement Integrity Act, received unanimous support with 15 affirmative votes. While the bill aims to prevent the abuse of procurement processes by officials' families, the Senate agreed to further refine its scope in the bicameral conference committee to address potential unintended consequences.
According to Philippines News Agency, the proposed legislation restricts relatives within the fourth civil degree of consanguinity or affinity from entering contracts with government bodies where their relatives have official functions. Senate Majority Leader Juan Miguel Zubiri expressed concerns that the bill's broad language might inadvertently impact other transactions like environmental compliance certificates and lease agreements. Zubiri emphasized the importance of ensuring that the bill does not inadvertently impose criminal liability on public officials over routine permits and leases.
Senate President Win Gatchalian recognized the need for clarity but asserted that the bill primarily aims to prevent public officials' relatives from monopolizing government contracts. He highlighted that the bill seeks to address issues like those seen in flood control projects, where families exploited procurement rules to secure contracts. Gatchalian agreed that the provisions might require adjustments during the bicameral discussions.
The bill covers relatives of various government officials, including Cabinet secretaries and members of government-owned corporations' boards. It extends to contracts related to supplies, infrastructure projects, joint ventures, and public-private partnerships. Corporations with prohibited relatives as beneficial owners or officers are also included. Private entities must declare their compliance with these restrictions and disclose any arising conflicts within 15 days. Violations could result in imprisonment, fines, and disqualification from government procurement.
Public officials who facilitate disqualified entities in securing contracts face similar penalties. However, the bill exempts contracts deemed highly technical or exclusive, as certified by the relevant sectoral agency. Once enacted, the law will require implementing rules to be issued within 60 days by various government bodies. The bill aims to amend the New Government Procurement Act to enhance integrity in government contracting.
