President Ferdinand Marcos Jr. signed two new laws aimed at enhancing transparency in government procurement and protecting the public from financial cybercrimes during a ceremony at Malacañang Palace on July 20, 2024.
Key Legislative Measures
Marcos enacted Republic Act (RA) 12009, the New Government Procurement Act (NGPA), and RA 12010, the Anti-Financial Account Scamming Act (AFASA). Both laws are part of the Marcos administration’s legislative agenda and were prioritized by the Legislative Executive Development Advisory Council (LEDAC).
New Government Procurement Act
The NGPA aims to increase transparency, competitiveness, efficiency, professionalism, accountability, and sustainability in the government procurement process. It addresses existing loopholes, curbs illegal practices, and prevents wastage in public transactions. The law also reduces the procurement period from 90 days to 60 days, from bid opening to contract awarding.
Budget Secretary Amenah Pangandaman highlighted the importance of procurement reform, calling it a monumental step toward a more efficient and accountable government procurement system.
Key Features of the NGPA:
- MEARB and MARB: The law introduces the Most Economically Advantageous and Responsive Bid (MEARB) and the Most Advantageous and Responsive Bid (MARB) to ensure qualitative economic value over merely the lowest bid.
- eMarketplace: A centralized online system (PhilGEPS) will transform the procurement of common-use supplies and equipment.
- New Procurement Modes: Includes Competitive Bidding, Limited Source Bidding, Competitive Dialogue, Unsolicited Offer with Bid Matching, and more.
- Sustainable Procurement: Emphasizes minimizing environmental impact and achieving value for money.
- Inclusive Procurement Program: Ensures equal opportunities for vulnerable and marginalized sectors.
Anti-Financial Account Scamming Act
The AFASA aims to protect the public from financial cybercrimes by penalizing illegal acts such as online selling scams, phishing, and investment frauds. The law authorizes the Bangko Sentral ng Pilipinas (BSP) to investigate financial cybercrimes, apply for cybercrime warrants, and request assistance from law enforcement agencies.
BSP Governor Eli Remolona, Jr. expressed support for the new law, emphasizing its role in strengthening consumer protection and fostering trust in the financial system.
Key Provisions of the AFASA:
- Investigation Authority: BSP can examine and investigate financial accounts involved in prohibited acts.
- Risk and Fraud Management: Institutions must employ adequate systems to protect clients’ financial accounts.
- Cooperative Mechanism: Mandates collaboration among government agencies, banks, the private sector, and other stakeholders for effective enforcement.
Both laws reflect the administration’s commitment to improving government operations and safeguarding public interests in the financial sector.