NPM 092-2014

Requesting Entity: Municipality of Monkayo

Issues Concern: Lease of Privately-Owned Venue; Conflict of Interest



Whether the Municipality can directly transact with the owner off the venue, the Vice-Mayor, who happens to be the brother of the Municipal Mayor.

[C]ontracts for lease of real property, such as venue, may be procured by way of negotiated procurement under Section 53.10 (Lease of Real Property) of the IRR without need of prior resort to public bidding, but subject to the rules and procedures established in the Implementing Guidelines for Lease of Privately-Owned Real Estate and Venue. Additionally, the Code of Conduct and Ethical Standards for Public Officers and Employees and the Local Government Code prohibit any local government official or employee, directly or indirectly to engage in any business transaction with the local government unit in which he is an official or employee, whereby money is to be paid out of the resources of the local government unit to such person or firm. Further, a bidder should be disqualified if he is related to the HOPE, members of the BAC, the TWG, BAC Secretariat, head of the PMO or the end-user unit, and the project consultants, within the third civil degree of consanguinity or affinity.