BENEFIT FRAUD

PROCUREMENT TRADING

CHERY MAE B. TOBIAS

ALVIN R. TUGON

BENEFIT - an advantage or profit gained from something

FRAUD - wrongful or criminal deception intended to result in
financial or personal gain.
Benefit Fraud - is committed when a person deliberately
claims benefits they are not entitled to. They might
do this by providing false information or by not
reporting a change in circumstance.
CATEGORY OF BENEFIT FRAUD
 Misinterpretation of financial circumstances
 Misrepresentation of Household Circumstances
 False identity
 Insecure Payment

EXAMPLES OF BENEFITS:
 Pantawid Pamilya Pilipino Program
 Solo Parent Benefits RA 8972
 Fringe Benefits
 Housing Benefits
 Educational Benefits
 PWD Benefits
 Health Benefits
GOVERNING LAWS RELEVANT TO BENEFIT FRAUD

 Swindling/Estafa – PUNISHABLE OF Article 315 of the

Revised Penal Code (Penal Code).
 Access Devices Law (Republic Act No 8484).
 Civil Code of the Philippines (Civil Code).
 National Internal Revenue Code (Tax Code).
 Cybercrime Prevention Act (Cybercrime Act).

ARTICLE 315 ON SWINDLING/ESTAFA OF THE REVISED

PENAL CODE (PENAL CODE).

 Misappropriating or converting to the prejudice of another,

money, goods or other personal property received by the
offender in trust or commission, or for administration or
under any other obligation involving the duty to deliver or
return such money/goods/property.

 Taking undue advantage of the signature of the offended

party in blank, and by writing any document above such
signature in blank, to the prejudice of another (forgery).

 Using a fictitious name, or falsely pretending to possess

qualifications, property, credit, agency, business or
imaginary transactions, or by means of other similar deceits.
 ACCESS DEVICES LAW (REPUBLIC ACT NO 8484).
 Producing, using, trafficking in one or more counterfeit
access devices.
 Using, with intent to defraud, an unauthorized access device.

 Inducing, enticing, permitting or in manner allowing another,

to produce, use, traffic in counterfeit access devices or
unauthorized access devices.
 Disclosing any information imprinted on the access device
(such as the account number or name or address of the
device holder) without the latter's authority or permission.
 Obtaining money or anything of value through the use of an
access device, with the intent to defraud or with intent to
gain and then fleeing thereafter.

CIVIL CODE OF THE PHILIPPINES (CIVIL CODE).RA 386

Article 1170 of the Civil Code states that those guilty of
fraud, delay, or negligence, in the performance of their
obligations, or those who, in any way, contravene the tenor of
their obligations can be held liable for damages.
CYBERCRIME PREVENTION ACT (CYBERCRIME ACT)
RA 10175

The Cybercrime Act punishes computer-related fraud, which

is defined as any unauthorized input, alteration, or deletion of
computer data or programmed or interference in the functioning of
a computer system, which causes damage with fraudulent intent 
TAX LAWS
Fraud is also prohibited under tax laws. A substantial under-
declaration of taxable sales, receipts or income, or a substantial
overstatement of deductions (as determined by the Commissioner
under the rules and regulations of the Secretary of Finance), will
constitute prima facie evidence of a false or fraudulent return.
Falsification
Article 170
Falsification of Legislative Documents as an act whereby a
person who, without proper authority alters a legislative bill,
resolution, or ordinance, enacted or approved or pending
approval by either House of the Legislature or any provincial
board or municipal council.
Article 171
Of the Revised Penal Code is a public officer, employee, or
notary, then the higher penalty of prision mayor (in addition to a
court imposed fine) is imposed. It must be noted that, to be liable,
the act must have been done by the person, taking advantage of
his or her official position.
Article 172
Falsification by private individual and use of falsified
documents. — The penalty of prision correccional in its medium
and maximum periods and a fine of not more than P5,000 pesos
shall be imposed upon:
 Procurement
Procurement - Procurement is the act of obtaining goods or
services, typically for business purposes. Procurement is
most commonly associated with businesses because
companies need to solicit services or purchase goods, usually on
a relatively large scale
-Refers to the acquisition of goods, consulting services,
and the contracting for infrastructure projects by the Procuring
Entity. In case of projects involving mixed procurements, the
nature of the procurement, i.e., Goods, Infrastructure Projects
or Consulting Services, shall be determined based on the
primary purpose of the contract. Procurement shall also
include the lease of goods and real estate.

REPUBLIC ACT 9184

GOVERNMENT PROCUREMENT REFORM ACT
(July 22, 2002)
An act providing for the modernization, standardization and
regulation of the procurement activities of the government and for
other purposes

THE 2016 REVISED IMPLEMENTING RULES AND

REGULATIONS OF REPUBLIC ACT NO. 9184
(Updated as of 31 March 2021)
Otherwise known as the government procurement reform act
R.A. 107523 - An Act Facilitating the Acquisition of Right-Of-Way
Site or Location for National Government Infrastructure
Projects,”
R.A. 6957, as amended by R.A. 7718 - An Act Authorizing the
Financing, Construction, Operation and Maintenance of
Infrastructure Projects by the Private Sector, and for Other
Purposes,

Terms Used:
Bidder - Refers to a contractor, manufacturer, supplier, distributor
and/or consultant who submits a bid in response to the
requirements of the Bidding Documents.
Approved Budget for the Contract (ABC) - Refers to the budget
for the contract duly approved.
Bid - Refers to a signed offer or proposal to undertake a contract
submitted by a bidder in response to and in consonance with
the requirements of the Bidding Documents.
Domestic Bidder - Refers to any person or entity offering
unmanufactured articles, materials or supplies of the growth or
production of the Philippines, or manufactured articles,
materials, or supplies manufactured or to be manufactured in
the Philippines
Foreign Bid - Refers to any offer of articles, materials or supplies
not manufactured or not to be manufactured in the Philippines.
 PROCUREMENT BY ELECTRONIC MEANS
To promote transparency and efficiency, information and
communications technology shall be utilized in the conduct of
procurement procedures. Accordingly, there shall be a single
portal that shall serve as the primary source of information on all
government procurement.
PhilGEPS
Philippine Government Electronic Procurement System
https://ps-philgeps.gov.ph/home/

DUTIES OF PhilGEPS

a. Security – The PhilGEPS shall be protected from

unauthorized access or interference through the
incorporation of security features.
b. Integrity – The PhilGEPS shall ensure that no person,
including the system administrators and chairperson and
members of the BAC, shall be able to alter the contents of
bids submitted through the system or read the same
c. Confidentiality – The PhilGEPS shall ensure the privacy of
parties transacting with it.
d. Audit Trail – The PhilGEPS shall include a feature that
provides for an audit trail for online transactions, and allows
the Commission on Audit (COA) to verify the security and
integrity of the system at any time.
Performance Tracking – The performance of manufacturers,
suppliers, distributors, contractors and consultants shall be
tracked to monitor compliance with delivery schedules and other
performance indicators.
REPUBLIC ACT No. 5183

An act regulating the award of contracts for the supply to, or

procurement by, any government-owned or controlled
corporation, company, agency or municipal corporation of
materials, equipment, goods and commodities, and providing
penalty for the violation thereof.

Any violation of this Act shall be punished with a fine of not

less than five thousand pesos and not more than ten thousand
pesos and imprisonment of not less than two years and not more
than four years.
If the violation is committed by a corporation or association,
the penalty shall be imposed upon the president, director or
directors, managers, managing partner, or other official thereof
responsible for such violation.
Any alien violating or responsible for the violation of this Act
shall, upon completion of the service of sentence, be deported
without any further proceedings on the part of the Deportation
Board.
Any government official or employee who violates this Act,
shall, in addition to the penalty which may be imposed upon him
as principal, be temporarily or perpetually disqualified from
holding any public office.
 Trading
REPUBLIC ACT NO. 8762

Retail Trade Liberalization Act of 2000

AN ACT LIBERALIZING THE RETAIL TRADE BUSINESS,
REPEALING FOR THE PURPOSE REALING FOR THE
PURPOSE REPUBLIC ACT NO. 1180, AS AMENDED, AND
FOR OTHER PURPOSES
It is the policy of the State to promote consumer welfare in
attracting promoting and welcoming productive investment that
will bring down price for the Filipino consumer, create more jobs,
promote tourism, assist small manufacturers, stimulate economic
growth and enable Philippine goods and services to become
globally competitive through the liberalization of the retail trade
sector.

Definition

Retail trade - shall mean any act, occupation or calling of

habitually selling direct to the general public merchandise,
commodities or good for consumption
High-end or luxury goods - shall refer to goods which are not
necessary for life maintenance and whose demand is
generated in large part by the higher income groups.
Foreign Equity Participation. - Foreign-owned partnerships,
associations and corporation formed and organized under the
laws of the Philippines may, upon registration with the
Securities and Exchange Commission (SEC) and the Department
of Trade and Industry (DTI), or in case of foreign owned single
proprietorships, with the DTI.
REPUBLIC ACT No. 1180
An Act to Regulate the Retail Business

No person who is not a citizen of the Philippines, and no

association, partnership, or corporation the capital of which is not
wholly owned by citizens of the Philippines, shall engage directly
or indirectly in the retail business: Provided, That a person who is
not a citizen of the Philippines, or an association, partnership, or
corporation not wholly owned by citizens of the Philippines,
Any violation of this Act shall be punished by imprisonment for
not less than three years and not more than five years and by a
fine of not less than three thousand pesos and not more than five
thousand pesos.
In the case of associations, partnerships or corporations, the
penalty shall be imposed upon its partners, president, directors,
managers, and other officers responsible for the violation.
If the offender is not a citizen of the Philippines, he shall be
deported immediately after service of sentence.
If the offender is a public officer or employee, he shall, in
addition to the penalty prescribed herein, be dismissed from the
public service, perpetually disenfranchised, and perpetually
disqualified from holding any public office.
REPUBLIC ACT NO. 8799
"The Securities Regulation Code“
The State shall establish a socially conscious, free market
that regulates itself, encourage the widest participation of
ownership in enterprises, enhance the democratization of wealth,
promote the development of the capital market, protect investors,
ensure full and fair disclosure about securities, minimize if not
totally eliminate insider trading and other fraudulent or
manipulative devices and practices which create distortions in the
free market.

SECURITIES AND EXCHANGE COMMISSION

Have jurisdiction and supervision over all corporations,
partnership or associations who are the grantees of primary
franchises and/or a license or a permit issued by the Government.
Approve, reject, suspend, revoke or require amendments to
registration statements, and registration and licensing
applications.

PURCHASE
 to obtain by paying money or its equivalent 
  to acquire (real estate) by means other than descent
 to obtain by labor, danger, or sacrifice