Manila (The Philippines), 9 September 2024 - The Philippines has achieved a significant milestone in its fight against corruption with the enactment of the new Republic Act No. 12009 on public procurement this summer. The legislation marks a crucial step towards enhancing transparency, accountability and efficiency in the public sector.
“As legislators, we felt the urgent need to enhance, update and create a game-changing public procurement legal framework which primarily intends to make it more transparent and efficient so that Filipinos would get the best value-for-money for supplies needed in government operations while safeguarding public funds,” said Edward Michael Maceda, Chairman of the Parliament and Revision of Laws Committee of the House of Representatives of the Philippines.
The aim is for the law to streamline the procurement process by institutionalising electronic procurement and allowing greater flexibility with the introduction of new procurement modalities and concepts. As reiterated in article 9 of the United Nations Convention against Corruption (UNCAC), establishing a sound public procurement system based on transparency, competition and objective criteria in decision-making is an imperative for preventing corruption. This is because public procurement procedures are inherently vulnerable to corruption. The large amounts of money involved, size of the market, complexity of procurement processes, multitude of stakeholders, and close interaction between public and private interests provide huge incentives for unethical behaviour.
The enactment of this new legislation marks a cumulation of two decades of reforms. This includes the adoption of the public procurement Republic Act in 2003 and the introduction of the Government Procurement Policy Board, the Agency Procurement Compliance and Performance Indicators system, and the Philippine Government Electronic Procurement System (PhilGEPS), to support procurement regulation, monitoring and transparency.
“Now that we have the legislation in place, we have to get the implementation right. We need to upgrade professionalization for our procurement officials – with licensing and a Code of Ethics,” said Rowena Candice Ruiz, Executive Director V of the Government Procurement Policy Board (GPPB).
The latest landmark in the Philippines’ public procurement reforms, the Republic Act No. 12009 (RA 12009) enacted on 20 July 2024, represents a significant step to address the recommendations arising from the second cycle of the Philippines’ UNCAC review. Reflecting areas of UNODC’s technical assistance provided to date, this new legislation aims to:
Key aspects of the new Republic Act will require updating the Implementing Rules and Regulations (IRR) and accompanying procurement forms and manuals, modernizing procurement systems like PhilGEPS while institutionalizing electronic procurement, and building capacities in procurement practitioners. The focus on integrating beneficial ownership data and engaging non-State actors offers opportunities to set regional standards and strengthen anti-corruption efforts in Southeast Asia.
UNODC support
UNODC has partnered with the government of the Philippines in this long-term effort. For instance, UNODC actively contributed to the Government Procurement Policy Board’s initiative to automate procurement reports, enhancing efficiency and transparency in procurement processes.
“Addressing risks in public procurement processes remains a universal challenge in the fight against corruption,” said Daniele Marchesi, UNODC Country Manager for the Philippines. “UNODC is proud to have been supporting the Philippines in tackling this issue and to witness this significant milestone in the country's ongoing reform efforts. I hope the enactment of this new law will inspire other countries facing similar challenges in improving public procurement transparency.”
UNODC also conducted data mapping activities with the PhilGEPS and the GPPB, contributing to compliance with the Open Contracting Data Standard and interoperability between agencies. A Roundtable Discussions on Public Procurement Corruption and four consultative meetings played a pivotal role in shaping the final version of the recently approved procurement law. Most recently, UNODC conducted a roundtable discussion on the role of parliament in strengthening anti-corruption in the light of the new Act for members of the Congress and Senate.
While enacting this new law is a significant achievement, further efforts are essential to ensure its effective implementation, Marchesi added. “UNODC stands committed to supporting these efforts, working alongside the Philippines to achieve the desired impact.”
