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Friday, April 29, 2005
Dads hit lottery system in award of projects

INFRASTRUCTURE projects that would be brought to the Baguio City Council for confirmation might not get the body's approval if Mayor Braulio Yaranon fails to recall his order employing the lottery system in the award of projects to contractors.

This developed after the council observed that Administrative Order (AO) 40 issued on March 16, violates Republic Act (RA) 9184 or the Government Procurement Reform Act, the law that provides for the modernization, standardization and regulation of the procurement activities of the government.

Under AO 40, the award of contracts shall be done through lottery. Yaranon explained, this is to avoid the usual practice of one contractor "dominating" every project in the city.

"It is of public interest that all qualified contractors should be given equal opportunity in the direct award of public works projects," Yaranon said in his AO.

But Councilor Elmer Datuin, chair of the committee on laws, said while the mayor's intent may be laudable, there is a national law that mandates the conduct of bidding for every project.

"A mere AO could not supersede a national law," he added.

The committee is in charge of confirming contracts entered into between the city government and a private party.

"The City Council should not be a party in the implementation of the AO," Councilor Edilberto Tenefrancia added, as he concurred with the observation that if they approve a contract, the council could be held liable for violating RA 9184.

Sections 3(A) and (B) of RA 9184 provide that there should be transparency in the procurement process and in the implementation of procurement contracts so that equal opportunity should be extended to private contracting parties who are eligible and qualified to participate in a public bidding. (RO)

(April 29, 2005 issue)
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