NPM 034-2009

Requesting Entity: Department of Agrarian Reform - Quezon II Provincial Office

Issues Concern: Participation of an Employees' Cooperative in the Bidding and Purchasing Process



Whether or not the participation of an employees` cooperative in the bidding and purchasing process of the government agency where they are employed, is a case of conflict of interest and therefore violates the Rule XV, Section 47 of the IRR-A of RA 9184.

[T]he determination of the existence of a conflict of interest is essentially and primarily lodged with the BAC of the procuring entity. For this purpose, it is incumbent upon the BAC to ascertain whether the relationship of the bidder to the procuring entity or any of its BAC, TWG, Secretariat, or officers or employees having direct access to information that may substantially affect the result of the bidding or any procurement processes, puts it in a position to unduly influence or be given preference in the award of the contract.

Relative to the above, and consistent with the Rules Implementing the Code of Conduct and Ethical Standards for Public Officials and Employees or RA 6713, a conflict of interest occurs when the official or employee is a member of the Board of Directors and the interest of such corporation or business, or the official or employee's rights or duties therein, are opposed to or affected by the faithful performance of official duty.

Further, in the event that a conflict of interest arises, the official or employee involved shall resign from his position and/or divest himself of his shareholdings or interest within the prescribed period, reckoned from the date when the conflict of interest had arisen. In any case, it shall be incumbent for any public official or employee to avoid conflict of interest at all times.