NPM 053-2009

Requesting Entity: National Kidney and Transplant Institute (NKTI)

Issues Concern: Incentive Bonus



Whether or not the formula for the computation of Incentive Bonus stated under Contract Implementation (CI) Clause 9 of the Implementing Rules and Regulations (IRR) of Presidential Decree No. 1594 (PD 1594), as amended, may be applied for contracts awarded under RA 9184.

[I]f it were the clear and real intent of the legislators to still allow payment of incentive bonus, then they should have specifically provided for the same in RA 9184 and its IRR-A. On the contrary, they have categorically and expressly stated in Section 42.4 of the IRR-A of RA 9184 that no incentive bonus, in whatever form or for whatever purpose, shall be allowed.

Furthermore, based on consultations on the revision of the IRR-A of RA 9184, it was revealed that incentive bonus is being prohibited so as to deter possible opportunities for collusion and graft and corruption.