CEBU City Councilor Harry Eran has proposed a new ordinance, the “Cebu City Anti-Nepotism in Government Contracts Ordinance 2025.” The measure seeks to prohibit relatives of city officials and employees, up to the fourth civil degree of consanguinity or affinity (which includes first cousins and a spouse’s first cousins), from entering into business contracts or transactions with the City Government.
TARGETING CONFLICT OF INTEREST. The primary goal of the ordinance is to promote transparency, accountability and fairness in all transactions of the City Government. According to the explanatory note, the proposal is grounded in several key legal principles mandating integrity in public service, including the 1987 Constitution and laws like Republic Act (RA) 7160, or the Local Government Code, RA 6713, or the Code of Conduct and Ethical Standards for Public Officials and Employees, and RA 9184, or the Government Procurement Reform Act.
As the draft ordinance states, “The existence of contracts between the City Government and relatives of public officials creates a clear conflict of interest, undermines public trust, and can lead to perceptions of favoritism, nepotism, and corruption.”
WHAT THE PROPOSAL BANS (AND ALLOWS). The proposed ordinance lays out specific prohibitions, penalties and a few key exceptions.
The prohibitions: Under the measure, City officials are barred from having any financial interest, direct or indirect, in any city contract or transaction that involves their relatives. This ban covers a wide range of agreements, including public services, supply contracts, infrastructure projects and joint ventures. It also disqualifies any covered relative from bidding on or being awarded any city contract or license.
The penalties: Violators could face serious consequences. The ordinance proposes both criminal and administrative penalties, including imprisonment for six months to one year or a fine of P5,000. Any contract made in violation of the ordinance would be considered null and void, with all payments required to be refunded to the City. Relatives and businesses found in violation would be perpetually disqualified from transacting with the City. Meanwhile, officials who fail to disclose a relative’s involvement in a transaction could face sanctions for grave misconduct or gross neglect of duty, potentially leading to suspension or dismissal.
The exceptions: The ban is not absolute. The proposal exempts certain transactions, such as those related to socialized housing projects, right-of-way acquisitions for government facilities and intergovernmental agreements. It also does not apply to transactions with publicly listed companies where a relative holds only minority shares, or to the payment of lawful salaries and benefits to city employees.
THE UNANSWERED QUESTION. A key piece of information remains missing. The proposed ordinance does not specify what prompted its drafting or if any particular incidents of alleged nepotism in city contracts led to its filing. The document focuses on the principles of good governance without citing a specific case or controversy it aims to address.
WHAT’S NEXT. The proposal is currently in its early stages. It has been referred to the City Council’s committee on laws for further deliberation and study. This means the committee will review the measure, potentially hold hearings, and decide whether to recommend it for a vote before the full council. If passed and signed into law, the Office of the City Mayor would be authorized to issue its implementing rules and regulations. / CAV