Republic of he Phitippine 1.4, ABAYA TORY Hi Peputile Act 9184, othensise known as tho "Governmant Procurem: Raform Act’, dated Janucry 10, 2003 was enacted primarily to eredicate grat and corruption in the government procurement system. The law lkewiss aims to minimize vinctage and thus maxinize utlizetion of our government's maager resaweoes, sage of RA 9184 was ha! commitment to reform pt ne oF the best in the world” by Joachim von Amsbar 25 a milestone that marked our volic procurement. It was even World Region, during a tsiay table discussion st 11, 2008 fesue of The Philippine Star. PGMA, as published in ion 4 of RA S104 states that *S: to the Fi Consuiting Services, revarstess feveign, by all branches and knit and agencies, in and focal gover th Act Ne. enreement aifo Go clear - to bring within is prniseis cop2 anc! Application - This Act frasiructure Projects, Goods and souree of funds, whether Ica! or igs of government, ils departments, ding government-owned ‘and/or-controlled nore unis, subject t9 the provisions of 28. Any trealy of Intemational or executive aioe ‘The intent of the law is very ly funded and foreign-funded Soction 31 of RA G164 provicies thet the Approved Budget for the Contis2t (ABC) shal be the upper limit oF ceiling for bid prices, and that bid prices that epeeed this ceifng shall bo cicquatied autright fom fur pavtisipating in the bidding. This provision is intended to prevent the goverment from entering into highly oneraus and overpriced contracts and, consequently reduce op: s for graft and covuplion. Unfortunately, whilo this pargcular provi ng sirictly enforced as regard domesticaForsign landing insttutens, hoviever, claim that projects which thoy hewe finded through @ loan 2a from the coverage of the law by invoking the provision under Se ty oF ymneat are &: fon 4 whi Intarnational or exooutive egroomeni alfeoiins the subject maxer of this Act io which the Puilizpixe Covernment is a signatory shall be respected.” The above-ciiod provisicn sneaks of ary treaty or Intemational or nt is already a signatory. seulive cgreement whieh the P Wi does net refer to those which srarrent will enter into subsecuant to the enactment of RA 9184 jssuming for the sake of argument thet loan agraemants pariake of the nature ef intemational or executive agreement, only those ican agreements entered into prior to the passage of RA 9184 are exempt from its coverage and not those which the government will contract afier te effectivity of the law. The Dopariment of Justice (DOJ) just recently declared that the National Broadband Network (NBN) project is valid and thus exempted frern the coverage of RA 9194 based on the interpretation that Ioan agreements partake of the nature of international or executlve agreement and that it applies even to loan agreements contracted after the enactment of the said law. In view of this cevalopmant, a similar opinion could be expected as regards the Cyber Educsiian Project (CEP) and other fulure projects that will be contracted by the gevernment mpling foreign-funded projects fram the coverage of RA 9134, particularly in allowing bids or tenders over and above the Approved Budget for the Contract (ABC), would defeat the purpose and the spirit behind its enactment. There would be no genuine reform to speak of end the government procurement =ystem will remain grait ridden. Moreover, it will amount to unnecessary wastage of government resources. This bill seeks {9 remove any ambiguity in the interpretation of the scope and application of RA 9184 by amending Section 4 thereof to make il very clear that it applies to al! government procurement activities, regardless of source of funds, whether local or foreign, and that only treallas or intemational or executive agreements entered into by the government prior to its enactment shall be exempt from its coverage, In view of the foregoing, immediate passage of this bill Is eamestly CLDfo PH EMILIO A. ABAYARepublic of the Phifippines HOUSE GF REPRESENTATIVES ‘Quezon City FOURTEENTH CONGRESS First Reguler Session fe 2203 HON, JOSEPH EMILIO A. ABAYA AMENDING SECTION 4 OF REPUBLIC ACT 9184, OTHERWISE KNOWN AS THE “COVERNMENT PROCUREMENT REFORM ACT.” Be it enacled by the Senate and the House of Representatives of the Philippines in Congress assembled. Section 1. Seclion 4 (Scope and Application) of Republic Act 9184 shall be amended to read as follows: "Section 4, Scope and Application - This Act shall apply to the Procurement of Infrastructure Projects, Goods and Consulting Services, regardless of source of funds, whether focal or foreign, by alt branches and instrumeniaiities of government, its depariments, offices and agencies, including govemment-owned — and/or-controlled corporations and local government units, subject to the provisions of Commanwealth Act No. 128. Any treaty or international or executive agreomont affecting the subject mater of this Act [fo which] ENTERED igTO BY the Philippine Government [is @ signatory] BEFORE THE PASSAGE OF THIS ACT shal be respected.” Section 2. Effectivily Clause ~ This Act shall take effect fifteen (18) days aiter its publication in at least two (2) national papers of general circulation. Approved.