The Senate has approved a bill that would stop the relatives of certain government officials from joining government contracts, in a move aimed at preventing favoritism and corruption in public procurement.
Senate Bill No. 1962, or the Government Contracting and Procurement Integrity Act, was approved on third and final reading Wednesday, Sept. 2, with 15 votes in favor, none against and no abstentions.
The bill covers government deals involving supplies, equipment, services, infrastructure projects, joint ventures, public-private partnerships and other contracts using government funds or property.
It would also bar relatives within the fourth degree of consanguinity or affinity from taking part in subcontracting, consortiums, joint ventures and similar arrangements connected to government contracts.
“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. It removes temptation, shuts the side door, and makes it clear that government contracts are not a family affair,” said Senator Francis “Chiz” Escudero, the bill’s sponsor.
Private companies joining government bidding would also have to submit a sworn statement declaring that their officers, board members and beneficial owners are not related to covered officials within the prohibited degree.
Those who violate the proposed law could face one to three years in prison, a fine of at least P100,000 and permanent disqualification from government procurement.
Public officials who allow or participate in the prohibited transactions could face the same penalties, including permanent disqualification from holding public office.
Escudero said limiting the discretion of officials in awarding contracts would also help prevent 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,” he said.IMT
