Requesting Entity: Development Bank of the Philippines (DBP)

Issues Concern: Proposed DBP Venture Capital Program (VCP)

Details

Whether the divestment of equity process through the proposed exit mechanisms under the DBP-VCP is covered by Republic Act (RA) No. 9184 and its revised Implementing Rules and Regulations (IRR).

[T]here are two important elements to be considered in determining whether an activity is procurement that is covered by RA 9184 and its IRR, thus:

1. the activity involves the acquisition of goods, consulting services, and the contracting for infrastructure projects; and

2. public funds are utilized or is contemplated to be spent.

As opposed to investment which signifies the delivery of possession of anything to another, divestment connotes taking away and/or withdrawal of such possession and title.

In this regard, considering that divestment of equity process through the proposed exit mechanisms under the DBP-VCP does not involve an acquisition of goods, consulting services, and the contracting for infrastructure projects utilizing public funds, such divestment equity process is not considered as procurement, and considered to be beyond the coverage of RA 9184 and its IRR.