NPM No. 017-2016

Requesting Entity: Philippine Postal Savings Bank (PostBank)

Issues Concern: Applicability of Republic Act No. 9184



Whether the proposed Memorandum of Agreement (MOA) for the use of Automated Teller Machines (ATMs) involving a revenue sharing scheme is a procurement activity within the coverage of Republic Act (RA) No. 9184 and its revised Implementing Rules and Regulations (IRR).

[I]f the proposed MOA involving the use of ATMs does not involve public expenditure on the part of PostBank, it is our considered view that RA 9184 and its associated rules and regulations are inapplicable. However, we note that the proposed MOA is akin to a Joint Venture Agreement between PostBank and the private supplier. For this reason, the Revised Guidelines and Procedures for Entering into Joint Venture Agreements between Government and Private Entities issued by the National Economic and Development Authority (NEDA) is the relevant issuance under the circumstances as it prescribes the rules, guidelines and procedures for Joint Venture Agreements between private entities and government corporations, particularly Government-Owned and/or Controlled Corporations (GOCCs), Government Corporate Entities (GCEs), Government Instrumentalities with Corporate Powers (GICPs), Government Financial Institutions (GFIs), and State Universities and Colleges (SUCs).