Sen. Francis “Chiz” Escudero’s push to tighten government procurement rules advanced after the Senate approved Senate Bill No. 1962, or the Government Contracting and Procurement Integrity Act, on third and final reading. The measure, filed under Committee Report No. 44, received 15 affirmative votes, zero negative vote and zero abstention during the Senate plenary session on Wednesday, September 2.
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Escudero Seeks to Close Procurement Loopholes
At the center of the measure is a restriction on relatives of public officials and personnel within the fourth civil degree of consanguinity or affinity from taking part in government contracts. Escudero, who sponsored the bill, said the measure is intended to prevent procurement rules from being manipulated to favor certain families.
“Enacting this measure will help put an end to the systemic gaming of procurement rules for the benefit of a favored few and their families,” Escudero said.
The proposed restrictions extend beyond direct bidding for government projects. Disqualified relatives would likewise be barred from joining subcontracting arrangements, consortiums, joint ventures, or similar business arrangements connected to the performance of government contracts.
The bill applies to contracts covering supplies, materials, machinery, equipment and services, as well as infrastructure projects, joint ventures, public-private partnership projects, and other similar agreements involving government funds or property.
Sworn Affidavits and Penalties
SB No. 1962 would also require private entities seeking to participate in government procurement to submit a sworn affidavit. Companies, including their officers, board members, and beneficial owners, would have to declare that they are not related to covered public officials within the prohibited degree.
The officials covered by the measure include elected local and national officials, Cabinet secretaries, undersecretaries, assistant secretaries, officers, and members of government-owned and controlled corporations (GOCCs), and state universities and colleges (SUCs), as well as their alternates.
Escudero said the restrictions are meant to reduce opportunities for officials to influence procurement decisions in favor of relatives.
“It removes temptation, shuts the side door, and makes it clear that government contracts are not a family affair,” Escudero said. “In other words, it narrows the discretion that enables corruption. Because if you minimize discretion, you minimize corruption. And when you eliminate the discretion to favor relatives and kin, you strike at corruption at its source, and help ensure that public procurement truly serves the public good,” he added.
Violators under the bill may face imprisonment of one to three years, a fine of at least P100,000, and perpetual disqualification from participating in government procurement activities. Responsible public officials may likewise face imprisonment, a fine of at least P100,000 and perpetual disqualification from public office.
The measure was authored by Senate President Sherwin Gatchalian, and Senators Escudero, Christopher “Bong” Go, Joel Villanueva, Ronald “Bato” dela Rosa, Joseph Victor “JV” Ejercito, Loren Legarda and Francis “Kiko” Pangilinan.
By limiting opportunities for family connections to influence access to government contracts, the measure seeks to strengthen public confidence that projects and services funded by taxpayers are awarded through fairer and more transparent processes.
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