Leopoldo Oani vs People of the Philippines

G.R. No. 139984 (March 31, 2005)

Legal Issue: Whether the accused acquired overpriced re extinguishers and of ce equipment and supplies
when he purchased these without a public bidding.

Facts: Accused Leopoldo Oani, Principal of Panabo High School, purchased for the use of the school the
following: 12 re extinguishers for P15,000 each, a set of ampli ers for P35,650.00, and of ce supplies for
P227,857.45. He purchased these without a public bidding and paid a higher price.

Opinion of the Court: The report of the investigation Audit Team showed that the accused used government
funds from the DECS for Maintenance and Other Operating Expenses to purchase the re extinguishers and
of ce equipment and supplies without conducting a canvassing of prices and a public bidding. Non-bona de
dealers were granted the contracts: Powerline Manufacturing Industry, ASM Enterprises, and Red Lion
Marketing. The accused pointed out that the acquisition of these equipment and supplies bene ted Panabo
High School; however, the Court pointed out that these purchases were injurious to the government.

It is important that government purchases should undergo valid and credible canvassing and a public bidding
"to protect the public interest by giving the public the best possible advantages thru open competition [and] xxx
to avoid or preclude suspicion of favoritism and anomalies in the execution of public contracts” (Danville
Maritime, Inc. vs. COA)

The Court emphasized that the core of a public bidding is legitimate, fair, and valid competition. It is “an offer to
the public; an opportunity for competition; and a basis for exact comparison of bids." Sans these three, the
"contract granted without the competitive bidding required by law is void, and the party to whom it is awarded
cannot bene t from it.”

Holding: Yes, the accused deliberately paid a considerably higher price for the re extinguishers and of ce
equipment and supplies when he purchased these without a public bidding.

Policy: In a public bidding, there must be competition that is legitimate, fair and honest so that the awardee
can bene t from it.
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