Budget Secretary Amenah Pangandaman has warned government contractors, suppliers, and consultants of the strict enforcement of a “perpetual ban” from participating in any future government bidding for those found guilty of serious or repeated violations of procurement rules under Republic Act No. 12009, or the New Government Procurement Act (NGPA).
Pangandaman said the NGPA seeks to modernize and tighten accountability in public procurement by upholding the principle of “quality over connections.”
Among the key features of the new law are provisions that expand public access to contract implementation data, require beneficial ownership declarations to prevent conflicts of interest, and strengthen citizen and media participation in project monitoring.
The NGPA introduces an “enforcement ladder” or graduated system of penalties, starting with corrective actions such as fines, retraining, and inclusion in a performance watchlist for minor or rectifiable violations.For procedural violations, government agencies may impose suspensions—typically one year for the first offense and two years for subsequent ones.
Meanwhile, cases involving document falsification, collusion, or fraud may result in blacklisting for one to two years.
However, Pangandaman emphasized that for grave or repeated violations, the NGPA authorizes perpetual disqualification—a lifetime ban from engaging in any transaction or project with the government.
“This accountability system protects taxpayers and rewards honest public servants,” Pangandaman said. “We are raising the standards for anyone who wishes to do business with the government.
”While the NGPA primarily covers administrative sanctions, Pangandaman noted that violations may also lead to criminal prosecution if there is evidence of fraud or misuse of public funds.
She added that the blacklisting and disqualification mechanisms are part of the government’s broader reforms to eliminate corruption, inefficiency, and abuse in the use of public resources.
The law likewise establishes an integrated procurement monitoring system to improve transparency, track compliance, and ensure the performance of government agencies in all stages of the procurement process.