CEBU City Councilor Harry Eran has proposed an ordinance seeking to prohibit relatives of city officials and employees within the fourth civil degree of consanguinity or affinity from entering into contracts or business dealings with the City Government.
The proposed measure, titled the Cebu City Anti-Nepotism in Government Contracts Ordinance 2025, aims to promote transparency, accountability and fairness in all transactions and to prevent conflicts of interest in government dealings.
The fourth civil degree of consanguinity refers to relatives connected by blood up to the level of first cousins. The fourth civil degree of affinity refers to relatives by marriage up to the same level such as a spouse’s first cousins.
In the measure’s explanatory note, Eran cited constitutional and legal principles mandating integrity in public service, including the 1987 Constitution, 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.
“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,” read a portion of the draft ordinance.
However, the proposed ordinance does not specify what prompted its drafting or if there were particular incidents that led to its filing.
Provisions
Under the proposal, City officials are barred from having any financial or pecuniary interest, directly or indirectly, in any contract, transaction or application involving their relatives within the fourth degree of consanguinity or affinity.
The prohibition covers all forms of contracts, including those for public services, supply of materials or equipment, infrastructure projects, joint ventures or conveyance of city property.
The ordinance also disqualifies any relative of a City official within the prohibited degree from participating in bidding, entering into or being awarded any city contract or license.
Officials who learn that a relative is involved in a transaction with the City are required to disclose the relationship in writing to their department head and the appropriate office, such as the Bids and Awards Committee. They must also recuse themselves from any related proceedings.
Violators face both criminal and administrative penalties, including imprisonment of six months to one year or a fine of P5,000.
Contracts entered into in violation of the ordinance will be null and void, and all payments made under such agreements must be refunded to the city treasury.
Relatives and business entities found violating the ordinance will be perpetually disqualified from transacting with the City, while public officials who fail to comply with the disclosure requirement may face administrative sanctions for grave misconduct or gross neglect of duty, which could lead to suspension or dismissal.
Exceptions
The ordinance, however, provides exceptions for certain transactions, including those related to socialized housing projects, right-of-way acquisitions, construction of government centers and facilities, and intergovernmental agreements.
Also exempted are transactions with publicly listed companies where the relative holds only minority shares, as well as the payment of lawful salaries, wages, allowances, and benefits to city officials and employees.
The measure authorizes the Office of the City Mayor to issue implementing rules and regulations once the ordinance takes effect.
Eran, who chairs the committee on public service and serves as vice chairperson of the committees on housing, infrastructure and barangay affairs, authored the measure.
The proposal has been referred to the City Council’s committee on laws for further deliberation and study. (CAV)