NPM No. 162-2015

Requesting Entity: Commission on Audit

Issues Concern: Applicability of Section 11.2.5 of the IRR of RA 9184



Whether the Bids and Awards Committee (BAC) of the Land Bank of the Philippines-Eastern Mindanao Banking Group conforms with Section 11.2.5 of the revised Implementing Rules and Regulations of Republic Act No. 9184

[T]he approving authority contemplated under Section 11 of R.A. 9184 and its revised IRR refers to the official who approves procurement transactions, who could be the Head of the Procuring Entity (HOPE) or the person authorized by the HOPE to perform said function in his or her behalf. x x x [T]he prohibition stated in Section 11.2.5 of the IRR is intended to avoid any conflict of interest on the part of the official who takes part in the selection process, and who would eventually be the same official to approve the resultant contract. Consequently, such prohibition does not apply to approving authorities where this conflict of interest is not present.

[T]he rule that no Head of the Procuring Entity and/or approving authority should be the chairman or a member of the Bids and Awards Committee also applies to the members of the BAC in government-owned and/or -controlled corporations and national government agencies.