Marcos signs new gov't procurement, anti-financial account scamming laws

President Ferdinand Marcos Jr. on Saturday signed two new pieces of legislation aimed at increasing transparency in the government procurement process and protecting the public from financial cybercrimes.

Marcos inked Republic Act 12009 or the New Government Procurement Act and RA 12010 or the Anti-Financial Account Scamming Act in a ceremony at Malacañang Palace on July 20.

Both measures form part of the Marcos administration's legislative agenda and were designated as priority bills by the Legislative Executive Development Advisory Council (LEDAC).

“We have just signed into law two new bills that will move us closer to attaining a strong, more responsive, and efficient bureaucracy and to establishing safeguards for the financial rights and welfare of every Filipino,” Marcos said in his keynote speech at the signing ceremony.

The New Government Procurement Act (NGPA) seeks to promote greater transparency, competitiveness, efficiency, professionalism, accountability, and sustainability in the government procurement process.

The NGPA is seen to address existing loopholes in the current government procurement system by clamping down on illegal practices to eliminate opportunities for corruption, thereby preventing wastage in public transactions and resulting in delivery of better services.

The new law will also speed up procurement activities since the period of action is shortened from 90 days to 60 days—from the opening of bids to the awarding of contracts.

The new law will also speed up procurement activities since the period of action is shortened from 90 days to 60 days—from the opening of bids to the awarding of contracts.

'Paramount priority'

In a statement, Budget Secretary Amenah Pangandaman said that the “procurement reform has been a paramount priority on my agenda.”

“The signing of the NGPA is a monumental step forward in our pursuit of a more efficient, transparent, and accountable government procurement system,” Pangandaman said.

“It will undoubtedly enhance the implementation of projects and the procurement of goods and supplies, ensuring better public service delivery for the Filipino people," she said.

The NGPA amends the decades-old RA 9184 or the Government Procurement Reform Act.

The new procurement law also introduces new concepts such as the Most Economically Advantageous and Responsive Bid (MEARB) and the Most Advantageous and Responsive Bid (MARB).

“This [MEARB] is an attempt to consider the qualitative economic value not the quantitative value of any proposal. It’s an alternative to the prevailing practice of choosing just the cheapest product or, what we now call, the Lowest Calculated and Responsive Bid,” Marcos said.

“This frees us from the obligation of selecting the lowest-priced bid when there is a better choice. This will ensure that we get not only the best prices, but the best deals for our clients—the Filipino people,” the President said.

The NGPA also brings in electronic procurement through a centralized online system (PhilGEPS).

The eMarketplace will transform the procurement of common-use supplies and equipment (CSE) by acting as the government’s main e-commerce platform.

In an interview, Pangandaman said that the new platform acts similar to regular e-commerce platforms, which feature add-to-cart functions, delivery dates, and pick-up dates. 

“We’re already finalizing the backend and the frontend. Hindi ako masyado [well-versed] sa systems but siguro once we finish… Mahabang proseso pa ito after the law… We will come up with separate rules and regulations per new alternatives, so siguro give it two months baka naka up na yung E-Marketplace,” said Pangandaman.

(We’re already finalizing the backend and the frontend. I’m not usually [well-versed] in systems but perhaps once we finish… It’s still a long process after the law… We will come up with separate rules and regulations per new alternatives, so maybe give it two months and maybe the E-Marketplace will be up.)

Pangandaman also said that common-use supplies from national government agencies would be ready-to-order from the warehouses, but bidding would remain for other products for specific government projects.

“Itong malalaking products (These big products) like DOTr, DPWH, other departments, they will still have their own BAC [bids and awards committee] but now [the] process will be shortened, it will be streamlined,” she said.

She added that the bidding process can be done online and will be “more transparent.”

“Sabi ko nga [with] the use of technology, lahat ng bidding process natin, (all our bidding processes), everything can be online. Tapos, yung citizen’s participation in the law so the civil society can participate, if they are observers in the process,” Pangandaman said.

“I think every step of the way meron tayong mga safeguards (we have safeguards),” she added.

Procurement modes

The President also mentioned some of the safety of the NGPA, which includes the provision of 11 new modalities in procurement to provide government agencies with greater flexibility in acquiring goods and services.

The procurement modes include Competitive Bidding, Limited Source Bidding, Competitive Dialogue, Unsolicited Offer with Bid Matching, Direct Contracting, Direct Acquisition, Repeat Order, Small Value Procurement, Negotiated Procurement, Direct Sales, and Direct Procurement for Science, Technology, and Innovation.

The law also incorporated the principle of sustainable procurement to achieve value for money while minimizing environmental impact.

The Green Public Procurement approach requires procuring entities to prioritize goods, infrastructure projects, and consulting services with reduced environmental impact throughout their lifecycle.

The NGPA further helps an Inclusive Procurement Program, ensuring equal opportunities for vulnerable and marginalized sectors, including microenterprises, social enterprises, and startups. Procuring entities are encouraged to actively involve these sectors in procurement activities, emphasizing inclusivity in programs related to gender and ethnic equity, poverty reduction, and adherence to fundamental labor standards.

Additionally, the NGPA establishes a Joint Congressional Oversight Committee to monitor the implementation of the Act.

Protection from online crooks

On the other hand, the Anti-Financial Account Scamming Act (AFASA) seeks to protect the public from cybercriminals and criminal syndicates by penalizing financial cybercrimes and imposing harsher penalties for illegal acts committed under the Revised Penal Code such as online selling and investment scams, phishing and other schemes of fraud.

The AFASA authorizes the Bangko Sentral ng Pilipinas (BSP) to investigate cases involving violations of the law, apply for cybercrime warrants and orders, and request the assistance of law enforcers in the investigation of cases.

The BSP will also be exempted from existing laws on bank secrecy and data privacy to gather sufficient information relative to the commission of prohibited acts under the law.

In a separate statement, the BSP said it welcomes the passage of the AFASA.

"We express our full support for the new anti-financial account scamming law. This will help us strengthen consumer protection and foster trust and confidence in the Philippine financial system," said BSP Governor Eli Remolona Jr.

The central bank said the AFASA prohibits and punishes financial crimes, such as acting as money mules, performing social engineering schemes, and committing economic sabotage.

The law also authorizes the BSP to investigate cases involving violations of the law, apply for cybercrime warrants and orders, and request the assistance of the National Bureau of Investigation and the Philippine National Police in the investigation of cases, it said.

The AFASA also includes a limited authority for the BSP to examine and investigate bank accounts, e-wallets, and other financial accounts that are involved in the prohibited acts.

Responsible institutions are also given the authority to hold disputed funds in financial accounts under certain conditions, as well as initiate a coordinated verification process to validate the disputed transactions.

Moreover, the AFASA imposes responsibilities on BSP-supervised institutions to employ adequate risk and fraud management systems to ensure that their clients' financial accounts are protected.

Government agencies concerned, banks and covered financial institutions, the private sector, and other stakeholders are mandated to establish a cooperative mechanism to ensure effective prosecution of cases and enforcement of the law.

The AFASA is in line with the BSP's goals of promoting a strong financial system and an efficient, safe, and secure digital payments ecosystem that supports the diverse needs and capabilities of individuals and firms, according to the central bank. — VDV/KG/VBL, GMA Integrated News