DBM: Lifetime ban on erring contractors under new procurement law

Budget Secretary Amenah Pangandaman (PNA file photo)
Budget Secretary Amenah Pangandaman (PNA file photo)
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MANILA – The Department of Budget and Management (DBM) on Wednesday pushed for the strict enforcement of the lifetime blacklisting clause under Republic Act 12009 or the New Government Procurement Act (NGPA), which permanently bars erring contractors, suppliers, and consultants from transacting with the government.

Budget Secretary Amenah Pangandaman made the call as the government doubles down on its sweeping investigation into the multi-billion flood control projects marred with anomalies, including collusion between officials and private contractors.

The new rule targets entities with serious or repeated violations of procurement laws, ensuring they are banned forever from joining any government bidding, Pangandaman said.

“Sa bisa ng NGPA, tinutupad po natin ang adhikain ni Pangulong Ferdinand R. Marcos Jr. na palakasin ang ating kampanya tungo sa isang gobyernong bukas, ingklusibo at tumutugon sa pangangailangan ng taumbayan (Through the NGPA, we are fulfilling President Ferdinand R. Marcos Jr.’s goal of strengthening our campaign toward a government that is open, inclusive, and responsive to the people’s needs),” Pangandaman said in a DBM news release.

Under the new rule, firms found guilty of fraud, falsification, collusion, or repeated non-compliance can be permanently disqualified after three violations — a measure patterned after the “recidivist” principle that penalizes habitual offenders.

“Sa pamamagitan ng ating bagong procurement law, mas moderno at mas maigting po ang ating pagpapatupad ng transparency sa procurement process para labanan ang korapsyon (Through our new procurement law, we are enforcing a more modern and rigorous system of transparency in the procurement process to fight corruption),” Pangandaman said.

Aside from lifetime bans, the law also imposes stricter penalties, including corrective measures, temporary suspensions, and two-year blacklisting for grave offenses.

Pangandaman said the reform aims to end the “palakasan” (favoritism) system and ensure that public funds go only to responsible and trustworthy partners. (PNA)

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