NPM 142-2014

Requesting Entity: B.E. Dujali Municipal Officials and Employees Multi-Purpose Cooperative (BEDMOE-MPC)

Issues Concern: Government Employees Cooperative



1. Whether there is a provision in the Procurement Law that prohibits government employees cooperative to participate in the procurement process.

In general, government employees’ cooperatives are allowed to participate in the procurement opportunities of government subject to compliance with the eligibility criteria and the technical and financial requirements set by the Procuring Entity (PE).

However, by way of exception, the Government Procurement Policy Board, in several meetings on the matter, is of the view that employees’ cooperatives should be disqualified from participating in the procurement within their agencies as it poses undue advantage in terms of access to information, which are generally not available to outside bidders. The position of the Board is anchored on the provisions of the Generic Procurement Manual (GPM) and the Philippine Bidding Documents (PBDs), which considers the existence of general conflict of interest if a bidder has a relationship, directly or through third parties, that puts them is a position to have access to information about or influence on the bid of another bidder or influence the decisions of the PE regarding the bidding process.

2. Whether there is a conflict of interest on the part of government employees' cooperative to do business with a government agency or LGU.

The presence of conflict of interest on the part of the government employees" cooperative doing business with the government shall be determined based on the surrounding circumstances, such as when a public official or employee who is involved in the procurement process is at the same time a board member, officer or substantial owner of that cooperative.