The New Government Procurement Act (NGPA) or Republic Act No. 12009 aims to enhance transparency, strengthen accountability, prevent conflicts of interest, and combat corruption in government procurement by mandating the disclosure of beneficial owners involved in the procurement process.
- Definition of Beneficial Owners
The NGPA defines beneficial owners as natural persons who:
1. Ultimately owns the corporation;
2. dominantly influences the management or policies of the corporation; or
3. Exercises ultimate effective control over the corporation.
The NGPA now requires bidders to disclose beneficial ownership information to identify the ultimate owner and prevent collusion in public procurement.
- Section 82 Requirements
Section 82 of the NGPA mandates that legal entities, including corporations, partnerships, private sector organizations, foundations, and associations participating in procurement projects, must safeguard the government from actions that undermine a transparent, fair, and competitive procurement process. The beneficial ownership information of suppliers, manufacturers, distributors, contractors, or consultants is required for participation in government procurement. This section also authorizes the Government Procurement Policy Board to maintain an online registry of beneficial ownership information of bidders, accessible to the public for transparency and monitoring.
Penalties of Non-Disclosure and False Entries on the Beneficial Ownership Information
1. Automatic disqualification for failure to disclose beneficial owners
2. Blacklisting for the submission of false beneficial ownership information. Section 105 of the NGPA specifies that the administrative penalty of blacklisting also applies to any beneficial owner of the blacklisted entity.
Requiring the Declaration of Beneficial Ownership is a crucial step and a commitment to strengthening the integrity of government procurement.
Let’s work together to successfully implement NGPA’s anti-corruption measures!