Business Groups Urge Swift Passage of Strengthened Procurement Integrity Bill

BUSINESS GROUPS on Wednesday urged Congress to preserve core prohibitions under the Senate version of a bill barring relatives of public officials from government contracts, while pressing for stronger safeguards and the swift passage of the procurement integrity law. In a joint statement on Wednesday, the Institute of Corporate Directors, Justice Reform Initiative, and Management Association of the Philippines commended Senate Bill (SB) No. 1962, or the Government Contracting and Procurement Integrity Act, as it restricts conflicted relationships. “Congress should preserve SB 1962’s core prohibition, strengthen its safeguards and enforcement mechanisms, and swiftly enact the Government Contracting and Procurement Integrity Act to restore public confidence, protect public funds, and ensure integrity, fairness, and accountability in government contracting,” the groups said as lawmakers reconcile Senate Bill No. 1962 and House Bill No. 7917. The groups, however, urged refinements, including requiring the disclosure of beneficial owners and allowing procurement authorities to sift through layered corporate structures. A strict enforcement of the disclosure rule and procurement restrictions to block nominees, dummies, or layered entities from skirting ownership and control limits could reinforce the Anti-Dummy Law, the group said. Other recommendations include: narrowing the de minimis exception for small, non-controlling interests in listed companies to protect passive minority investors; providing transition rules for existing contracts; and clarifying enforcement through designated agencies for pre-bid verification and setting up a disqualification registry. Lawmakers may also strengthen reporting safeguards by protecting good-faith whistleblowers and providing effective channels for reports on undisclosed relationships and beneficial ownership. The groups also noted a need to harmonize definitions between the Senate and House bills as well as other existing anti-graft and procurement laws. — Francessca S. Abalos