Republic Act No.

9184

January 10, 2003

AN ACT PROVIDING FOR THE MODERNIZATION,

STANDARIZATION AND REGULATION OF THE
PROCUREMENT ACTIVITIES OF THE GOVERNMENT
AND FOR OTHER PURPOSES
Be it enacted by the Senate and Hose of Representatives of
the Philippines in Congress assembled:
ARTICLE 1
GENERAL PROVISIONS
Section 1. Short Title.- This act shall be known as the "
Government Procurement reform Act."
Section 2. Declaration of Policy.- It is the declared policy of
the State to promote the ideals of good governance in all its
branches, departments, agencies, subdivisions, and
instrumentalities, including government-owned and/or
-controlled corporations and local government units.
Section 3. Governing Principles on Government
Procurement.
All procurement of the national government, its departments,
bureaus, offices and agencies, including state universities
and colleges, government -owned and/or-controlled
corporations, government financial institutions and local
government units, shall, in all cases, be governed by these
principles:
(a) Transparency in the procurement process and
in the implementation of procurement contracts.
(b) Competitiveness by extending equal
opportunity to enable private contracting parties
who are eligible and qualified to participate in
public bidding.
(c) Streamlined procurement process that will
uniformly apply to all government procurement.
The procurement process shall simple and made
adaptable to advances in modern technology in
order to ensure an effective and efficient method.
(d) System of accountability where both the public
officials directly or indirectly involved in the
procurement process as well as in the
implementation of procurement contracts and the
private parties that deal with government are,
when warranted by circumstances, investigated
and held liable for their actions relative thereto.
(e) Public monitoring of the procurement process
and the implementation of awarded contracts with
the end in view of guaranteeing that these

contracts are awarded pursuant to the provisions

of this Act and its implementing rules and
regulations, and that all these contracts are
performed strictly according to specifications.
Section 4. Scope and Application.- This act shall apply to
the Procurement of Infrastructure Projects, Goods and
Consulting Services, regardless of source of funds, whether
local of foreign, by all branches and instrumentalities of
government, its departments, offices and agencies, including
government-owned and/or-controlled corporations and local
government units, subject to the provisions of
Commonwealth Act No. 138. Any treaty or international or
executive agreement affecting the subject matter of this Act
to which the Philippine government is signatory shall be
observed.
Section 5. Definition of Terms.- For purposes of this Act, the
following terms or words and phrases shall mean or be
understood as follows:
(a) Approved Budget for the Contract (ABC) refers to the budget for the contract duly approved
by the Head of the Procuring Entity, as provided
for in the General Appropriations Act and/or
continuing appropriations, in the National
Government Agencies; the Corporate Budget for
the contract approved by the governing Boards,
pursuant to E.O.No.518, series of 1979, in the
case of Government Financial Institutions and
State Universities and Colleges; and the Budget
for the contract approved by the respective
Sanggunian, in the case of Local Government
Units.
(b) BAC - refers to the Bids and Awards
Committee established in accordance with Article
V of this Act.
(c) Bidding Documents - refer to documents
issued by the Procuring Entity as the basis for
Bids, furnishing all information necessary for a
prospective bidder to prepare a bid for the Goods,
Infrastructure Projects, and Consulting Services to
be provided.
(d) Bid - refers to signed offer or proposal
submitted by a supplier, manufacturer, distributor,
contractor or consultant in response to the Bidding
Documents.
(e) Competitive Bidding - refers to a method of
procurement which is open to participation by any
interested party and which consist of the following
processes: advertisement, pre-bid conference,
eligibility screening of bids, evaluations of bids,
post - qualification, and award of contract, the
specific requirements and mechanics of which

shall be defined in the IRR to be promulgated

under this Act.
(f) Consulting Services - refer to services for
Infrastructure Projects and other types of projects
or activities of the Government requiring adequate
external technical and professional experts that
are beyond the capability and/or capacity of the
government to undertake such as, but not limited
to: (I) advisory and review services; (ii) pre
investment or feasibility studies; (iii) design; (iv)
construction supervision; (v) management and
related services; and (vi) other technical services
or special studies.
(g) G - EPS - refers to the Government Electronic
Procurement System as provided in Section 8 of
this Act.
(h) Goods - refer to all items, supplies, materials
and general support services, except consulting
services and infrastructure projects, which may be
needed in the transaction of the public businesses
or in the pursuit of any government undertaking,
project or activity, whether in the nature of
equipment, furniture, stationery, materials for
construction, or personal property of any kind,
including non - personal or contractual services
such as the repair and maintenance of equipment
and furniture, as well as trucking, hauling,
janitorial, security, and related or analogous
services, as well as procurement of materials and
supplies provided by the procuring entity or such
services.
(i) GPPB - refers to the Government Procurement
Policy Board established in accordance with
Article X of this Act.
(j) Head of the Procuring Entity- refers to: (I) the
head of the agency or his duly authorized official,
for national government agencies; (ii) the
governing board or its duly authorized official, for
government-owned and/or-controlled corporations;
or (iii) the local chief executive, for local
government units. Provided, That in a department,
office or agency where the procurement is
decentralized, the Head of each decentralized unit
shall be considered as the Head of the Procuring
Entity subject to the limitations and authority
delegated by the head of the department, office or
agency.
(k) Infrastructure Projects - include the
construction, improvement, rehabilitation,
demolition, repair, restoration or maintenance of
roads and bridges, railways, airports, seaports,
communication faci9lities, civil works components
of information technology projects, irrigation, flood

control and drainage, water supply, sanitation,

sewerage and solid waste management systems,
shore protection, energy/power and electrification
facilities, national buildings, school buildings and
other related construction projects of the
government.
(l) IRR - refer to the implementing rules and
regulations to be promulgated in accordance with
Section 75 of this Act.
(m) Portal - refers to a website that aggregates a
wide variety of content for the purpose of attracting
a large number of users.
(n) Procurement - refers to the acquisition of
Goods, Consulting Services, and the contracting
for Infrastructure Projects by the Procuring Entity.
Procurement shall also include the lease of goods
and real estate. With respect to real property, its
procurement shall be governed by the provisions
of Republic Act No.8974, entitled "An Act to
Facilitate the Acquisition of Right-of -Way Site or
Location of National Government Infrastructure
Projects and for Other Purposes" and other
applicable laws, rules and regulations.
(o) Procuring Entity - refers to any branch,
department, office, agency, or instrumentality of
the government, including state universities and
colleges, government-owned and/or - controlled
corporations, government financial institutions,
and local government units procuring Goods,
Consulting Services and Infrastructure Projects.
Section 6. Standardization of Procurement Process and
Forms.- To systematize the procurement process, avoid
confusion and ensure transparency, the procurement
process, including the forms to be used, shall be
standardized insofar as practicable.
For this purpose, the GPPB shall pursue the development of
generic procurement manuals and standard bidding forms,
the use of which once issued shall be mandatory upon all
Procuring Entities.
ARTICLE II
PROCUREMENT PLANNING
Section 7. Procurement Planning and Budgeting
Linkage- All procurement should be within the approved
budget of the Procuring Entity and should be meticulously
and judiciously planned by the Procuring Entity concerned.
Consistent with government fiscal discipline measures, only
those considered crucial to the efficient discharge of
governmental functions shall be included in the Annual
Procurement Plan t o be specified in the IRR.

No government Procurement shall be undertaken unless it is

in accordance with the approved Annual Procurement Plan
of the Procuring Entity. The Annual Procurement Plan shall
be approved by the Head of the Procuring Entity and must
be consistent with its duly approved yearly budget. The
Annual Procurement Plan shall be formulated and revised
only in accordance with the guidelines set forth in the IRR. In
the case of Infrastructure Projects, the Plan shall include
engineering design and acquisition of right-of-way.
ARTICLE III
PROCUREMENT BY ELECTRONIC MEANS
Section 8. Procurement By Electronic Means.- To promote
transparency and efficiency, information and
communications technology shall be utilized in the conduct
of procurement procedures. Accordingly, there shall be
single portal that shall serve as the primary source of
information on all government procurement. The G-EPS
shall serve as the primary and definitive source of
information on government procurement. Further, the GPPB
is authorized to approve changes in the procurement
process to adapt to improvements in modern technology,
provided that such modifications are consistent with
provisions of Section 3 of this Act.
To take advantage of the significant built-in-efficiencies of the
G-EPS and the volume discounts inherent in bulk
purchasing, all Procuring Entities shall utilize the G-EPS for
the procurement of common supplies in accordance with the
rules and procedures to be established by the GPPB. With
regard to the procurement of non-common use items,
infrastructure projects and consulting services, agencies
may hire service providers to undertake their electronic
procurement provided these service providers meet the
minimum requirements set by the GPPB.
Section 9. Security, Integrity and Confidentiality.- The GEPS shall ensure the security, integrity and confidentiality of
documents submitted through the system. It shall include
feature that provides for an audit trail for on-line transactions
and allow the Commission on Audit to verify the security and
integrity of the systems at any time.
ARTICLE IV
COMPETITIVE BIDDING
Section 10. Competitive Bidding.- All Procurement shall be
done through Competitive Bidding, except as provided for in
Article XVI of this Act.
ARTICLE V
BIDS AND AWARDS COMMITTEE
Section 11. The BAC and its Composition.- Each procuring
entity shall establish a single BAC for its procurement. The
BAC shall have at least five (5) members, but not more than
seven (7) members. It shall be chaired by at least a third

ranking permanent official of the procuring entity other than

its head, and its composition shall be specified in the IRR.
Alternatively, as may be deemed fit by the head of the
procuring entity, there may be separate BACs where the
number and complexity of the items to be procured shall so
warrant. Similar BACs for decentralized and lower level
offices may be formed when deemed necessary by the head
of the procuring entity. The numbers of the BAC shall be
designated by the Head of Procuring Entity. However, in no
case shall the approving authority be a member of the BAC.
Unless sooner removed for cause, the members of the BAC
shall have a fixed term of one (1) year reckoned from the
date of appointment, renewable at the discretion of the Head
of the Procuring Entity. In case of resignation, retirement,
separation, transfer, re-assignment, removal, the
replacement shall serve only for the unexpired term:
Provided, That in case of leave or suspension, the
replacement shall serve only for the duration of the leave or
suspension. For justifiable causes, a member shall be
suspended or removed by the Head of the Procuring Entity.
Section 12. Functions of the BAC.- shall have the following
functions: advertise and/or post the invitation to bid, conduct
pre-procurement and pre-bid conferences, determine the
eligibility of prospective bidders, receive bids, conduct the
evaluation of bids, undertake post-qualification proceedings,
recommend award of contracts to the Head of the Procuring
Entity of his duly authorized representative: Provided, That in
the event the Head of the Procuring shall disapprove such
recommendation, such disapproval shall be based only on
valid, reasonable and justifiable grounds to be expressed in
writing, copy furnished the BAC; recommend the imposition
of sanctions in accordance with Article XXIII, and perform
such other related functions as may necessary, including the
creation of a Technical Working Group from a pool of
technical, financial and/or legal experts to assist in the
procurement process.
In proper cases, the BAC shall also recommend to the Head
of the Procuring Entity the use of Alternative Methods of
Procurement as provided for in Article XVI hereof.
The BAC shall be responsible for ensuring that the Procuring
Entity abides by the standards set forth by this Act and the
IRR, and it shall prepare a procurement monitoring report
that shall be approved and submitted by the Head of the
Procuring Entity to the GPPB on a semestral basis. The
contents and coverage of this report shall be provided in the
IRR.
Section 13. Observers.- To enhance the transparency of the
process, the BAC shall, in all stages of the procurement
process, invite, in addition to the representative of the
Commission on Audit, at least two(2) observers to sit in its
proceedings, one(1) from a duly recognized private group in
a sector or discipline relevant to the procurement at hand,
and the other from a non-government organization:
Provided, however, That they do not have any direct or

indirect interest in the contract to be bid out. The observers

should be duly registered with the Securities and Exchange
Commission and should meet the criteria for observers as
set forth in the IRR.
Section 14. BAC Secretariat.- To assist the BAC in the
conduct of its functions, the Head of the Procuring Entity
shall create a Secretariat that will serve as the main support
unit of the BAC. The Head of the Procuring Entity may also
designate an existing organic office within the agency to
serve as the Secretariat.
Section 15. Honoraria of BAC Members.- The Procuring
Entity may grant payment of honoraria to the BAC members
in an amount not to exceed twenty five percent (25%) of their
respective basic monthly salary subject to availability of
funds. For this purpose, the Department of Budget and
Management (DBM) shall promulgate the necessary
guidelines.
Section 16. Professionalization of BAC, BAC Secretariat
and Technical Working Group Members.- The GPPB shall
establish a sustained training program for developing the
capacity of the BAC's, BAC Secretariats and technical
Working Groups of Procuring Entities, and proffessionalize
the same.
ARTICLE VI
PREPARATION OF BIDDING DOCUMENTS
Section 17. Form and Contents of Bidding Documents.- The
Bidding Documents shall be prepared by the Procuring
Entity following the standard forms and manuals prescribed
by the GPPB. The Bidding Documents shall include the
following:
(a) Approved Budget for the Contract;
(b) Instructions to Bidders, including criteria for
eligibility, bid evaluation and post-qualification, as
well as the date, time and place of the pre-bid
Conference (where applicable), submission of bids
and opening of bids;
(c) Terms of Reference;
(d) Eligibility Requirements;
(e) Plans and Technical Specifications;
(f) Form of Bid, Price Form, and List of Goods or
Bill of Quantities;

(i) Form and Amount of Performance Security and

Warranty; and,
(j) Form of Contract, and General and special
Conditions of Contract.
The Procuring Entity may require additional document
requirements or specifications necessary to complete the
information required for the bidders to prepare and submit
their respective bids.
Section 18. Reference to Brand Names.- Specifications for
the Procurement of Goods shall be based on relevant
characteristics and/or performance requirements. Reference
to brand names shall not be allowed.
Section 19. Access to Information.- In all stages of the
preparation of the Bidding Documents, the Procuring entity
shall ensure equal access to information. Prior to their official
release, no aspect of the Bidding Documents shall be
divulged or released on any prospective bidder or having
direct or indirect interest in the project to be procured.
ARTICLE VII
INVITATION TO BID
Section 20. Pre-Procurement Conference. - Prior to the
issuance of the Invitation to Bid, the BAC is mandated to
hold a pre-procurement conference on each and every
procurement, except those contracts below a certain level or
amount specified in the IRR, in which case, the holding of
the same is optional.
The pre- procurement conference shall assess the readiness
of the procurement in terms of confirming the certification of
availability of funds, as well as reviewing all relevant
documents and the draft Invitation to Bid, as well as
consultants hired by the agency concerned and the
representative of the end -user.
Section 21. Advertising and Contents of the Invitation to
Bid. - In line with the principle of transparency and
competitiveness, all Invitations to Bid contracts under
competitive bidding shall be advertised by the Procuring
Entity in such manner and for such length of time as may be
necessary under the circumstances, in order to ensure the
widest possible dissemination thereof, such as, but not
limited to, posting in the Procuring Entity's premises, in
newspapers of general circulation, the G-EPS and the
website of the Procuring Entity, if available. The details and
mechanics of implementation shall be provided in the IRR to
be promulgated under this Act.
The Invitation to Bid shall contain, among others:

(g) Delivery Time or Completion Schedule;

(h) Form and Amount of Bid Security;

(a) A brief description of the subject matter of the

Procurement;

(b) A general statement on the criteria to be used

by the Procuring entity for the eligibility check, the
short listing of prospective bidders, in the case of
the Procurement of Consulting Services the
examination and evaluation of Bids, and postqualification;
(c) The date, time and place of the deadlines for
the submission and receipt of the eligibility
requirements, the pre-bid conference if any, the
submission and receipt of bids, and the opening of
bids;
(d) The Approved Budget for the Contract to be
bid;
(e) The source of funds;
(f) The period of availability of the Bidding
Documents, and the place where these may be
secured and;

A prospective bidder may be allowed to summit his eligibility

requirement s electronically. However, said bidder shall later
on certify under oath as to correctness of the statements
made and the completeness and authenticity of the
documents submitted.
Section 24. Eligibility requirements and Short Listing for
Consulting Services.- The Eligibility of prospective bidders
for the Procurement of Consulting Services shall be
determine by their compliance with the eligibility
requirements prescribed for the competitive Bidding
concerned, within the period stated in the Invitation to bid.
The eligibility requirements shall provide for fair and equal
access to all prospective bidders. The prospective bidder
shall certify under oath as to the correctness of the
statements made, and the completeness and authenticity of
the documents submitted.
A prospective bidder may be allowed to submit his eligibility
requirements electronically. However, said bidder shall later
on certify under oath as to correctness of the statements
made and the completeness and authenticity of the
documents submitted.

(g) The contract duration; and

(h) Such other necessary information deemed
relevant by the Procuring Entity.
Section 22. Pre-bid Conference. - At least one pre-bid
conference shall be conducted for each procurement, unless
otherwise provided in the IRR. Subject to the approval of the
BAC, a pre-bid conference may also be conducted upon the
written request of any prospective bidder.
The Pre-bid conference(s) shall be held within a reasonable
period before the deadline for receipt of the bids to allow
prospective bidders to adequately prepare their bids, which
shall be specified in the IRR.
ARTICLE VIII
RECEIPT AND OPENING OF BIDS
Section 23. Eligibility Requirements for the Procurement of
Goods and Infrastructure Projects.- The BAC or, under
special circumstances specified in IRR, its duly designated
organic office shall determine the eligibility of prospective
bidders for the procurement of Goods and Infrastructure
Projects, based on the bidders' compliance with the eligibility
requirements within the period set forth in the Invitation to
Bid. The eligibility requirements shall provide for fair and
equal access to all prospective bidders. The documents
submitted in satisfaction of the eligibility requirements shall
be made under oath by the prospective bidder or by his duly
authorized representative certifying to the correctness of the
statements made and the completeness and authenticity of
the documents submitted.

The eligible prospective bidders shall then be evaluated

using numerical ratings on the basis of the short listing
requirements prescribed for the Competitive Bidding
concerned, within the period stated in the Invitation to Bid to
determine the short list of bidders who shall be allowed to
submit their respective bids.
Section 25. Submission and Receipt of Bids.- A bid shall
have two(2) components, namely the technical and financial
components which should be in separate sealed envelopes,
and which shall be submitted simultaneously. The bids shall
be received by the BAC on such date, time and place
specified in the invitation to bid. The deadline for the receipt
of bids shall be fixed by the BAC, giving the prospective
bidders sufficient time to study and prepare their bids. The
deadline shall also consider the urgency of the procurement
involved.
Bids submitted after the deadline shall not be accepted.
Notwithstanding the provisions of this Section and Section
26 of this Act, the GPPB may prescribe innovative procedure
for the submission, receipt and opening of bids through the
G-EPS.
Section 26. Modification and Withdrawal of Bids. - A bidder
may modify his bid, provided that this is done before the
deadline for the receipt of bids. The modification shall be
submitted in a sealed envelope duly identified as a
modification of the original bid and stamped received by the
BAC.
A bidder may, through a letter, withdraw his bid or express
his intention not to participate in the bidding before the

deadline for the receipt of bids. In such case, he shall no

longer be allowed to submit another Bid or the same contract
either directly or indirectly.
Section 27. Bid Security. - All Bids shall be accompanied by
a Bid security, which shall serve as guarantee that, after
receipt of the Notice of Award, the winning bidders shall
enter into contract with the Procuring Entity within the
stipulated time and furnish the required performance
security. The specific amounts and allowable forms of the
Bid security shall be prescribed in the IRR.
Section 28. Bid Validity. - Bids and Bid securities shall be
valid for such reasonable period of time indicated in the
Bidding Documents. The duration for each undertaking shall
take into account the time involved in the process of Bid
evaluation and award of contract.
Section 29. Bid Opening. - the BAC shall publicly open all
bids at the time, date, and place specified in the bidding
documents. The minutes of the bid opening shall be made
available to the public upon written request and payment of a
specified fee.
ARTICLE IX
BID EVALUATION
Section 30. Preliminary Examination of Bids. - Prior to Bid
evaluation, the BAC shall examine first the technical
components of the bids using "pass/fail" criteria to determine
whether all required documents are present. Only bids that
are determined to contain all the bid requirements of the
technical component shall be considered for opening and
evaluation of their financial component.
Section 31. Ceiling for Bid Prices. - The ABC shall be the
upper limit or ceiling for the Bid prices. Bid prices that
exceed this ceiling shall be disqualified outright from further
participating in the bidding. There shall be no lower limit to
the amount of the award.
Section 32. Bid for the Procurement of Goods and
Infrastructure Projects. - For the procurement of Goods and
Infrastructure Projects, the BAC shall evaluate the financial
component of the bids. The bids that passed the preliminary
examination shall be ranked from lowest to highest in terms
of their corresponding calculated price shall be referred to as
the "Lowest Calculated Bid".
Section 33. Bid Evaluation of Short Listed Bidders for
Consulting Services. - For the Procurement of Consulting
Services, the Bids of the short listed bidders shall be
evaluated and ranked using numerical ratings in accordance
with the evaluation criteria stated in the Bidding Documents,
which shall include factors such as, but not limited to,
experience, performance, quality or personnel, price and
methodology. The Bids shall be ranked from highest to
lowest in terms of their corresponding calculated ratings. The

Bid with the highest calculated rating shall be the "Highest

Rated Bid." After approved by the Head of the Procuring
Entity of the Highest Rated Bid, the BAC shall invite the
bidder concerned for negotiation and/or clarification on the
following item: financial proposal submitted by the bidder,
terms of reference, scope of services, methodology and
work program, personnel to be assigned to job,
services/facilities/data to be provided by the Procuring Entity
concerned, and provisions of the contract. When
negotiations with first-in-rank bidder fails, the financial
proposal of the second rank bidder shall opened for
negotiations: Provided, that the amount indicated in the
financial envelope shall be made as the basis for
negotiations and the total contract amount shall not exceed
the amount indicated in the envelope and the ABC.
Whenever necessary, the same process shall be repeated
until the bid awarded to the winning bidder.
ARTICLE X
POST-QUALIFICATION
Section 34. Objective and Process of Post-qualification.
- Post-qualification is the stage where the bidder with the
Lowest Calculated Bid, in the case of Goods and
Infrastructure Projects, or the Highest Rated Bid, in the case
of Consulting Services, undergoes verification and validation
whether he has passed all the requirements and conditions
as specified in the Bidding Documents.
If the bidder with the Lowest Calculated Bid or Highest Rated
Bid passes all the criteria for post-qualification, his Bid shall
be considered the "Lowest Calculated Responsive Bid," in
the case of Goods and Infrastructure or the "Highest Rated
Responsive Bid," in the case of Consulting Services.
However, if a bidder fails to meet any of the requirements or
conditions, he shall be "post-disqualified" and the BAC shall
conduct the post-qualification on the bidder with the second
Lowest Calculate Bid or Highest Rated Bid. If the bidder with
the second Lowest Calculated Bid or Highest Rated Bid is
post-disqualified, the same procedure shall be repeated until
the Lowest Calculated Responsive Bid or Highest Rated
Responsive Bid is finally determined.
In all cases, the contract shall be awarded only to the bidder
with the Lowest Calculated Responsive Bid or Highest Rated
Responsive Bid.
Section 35. Failure of Bidding. - there shall be a failure of
bidding if:
a. No bids are received;
b. No bid qualifies as the Lowest Calculated
Responsive Bid; or,
c. Whenever the bidder with the highest
rated/lowest calculated responsive bid refuses,

without justifiable cause to accept the award of

contract, as the case may be.
Under any of the above instances, the contract shall be readvertised and re-bid. The BAC shall observe the same
process and set the new periods according to the same rules
followed during the first bidding. After the second failed
bidding, however, the BAC may resort to negotiated
procurement as provided for in Section 53 of this Act.
Section 36. Single Calculate/Rated and Responsive Bid
Submission. - A single calculated/rated and responsive bid
shall be considered for award if it falls under of the following
circumstances:
a. If after advertisement, only one prospective
bidder submits a Letter of Intent and/or applies for
eligibility check, and meets the eligibility
requirements or criteria, after which it submits a
bide, which is found to be responsive to the
bidding requirements;
b. If after the advertisement, more than one
prospective bidder applies for eligibility check, but
only one bidder meets the eligibility requirements
or criteria, after which in submits a bid which is
found to be responsive to the bidding
requirements; or
c. If after the eligibility check, more than one
bidder meets the eligibility requirements, but only
one bidder submits a bid, and its bid is found to be
responsive to the bidding requirements.
In all instances, the Procuring Entity shall ensure that the
ABC reflects the most advantageous prevailing price for the
government.
ARTICLE XI
AWARD, IMPLEMENTATION AND TERMINATION OF THE
CONTRACT
Section 37. Notice and Executive of Award. - Within a period
not exceeding fifteen (15) calendar days from the
determination and declaration by the BAC of the Lowest
Calculated Responsive Bid or Highest Rated Responsive
Bid, and the recommendation of the award, the Head of the
Procuring Entity or his duly authorized representative shall
approve or disapprove the said recommendation. In case of
approval, the Head of the Procuring Entity or his duly
authorized representative shall immediately issue the Notice
of Award to the bidder with the Lowest Calculated
Responsive Bid or Highest Rated Responsive Bid.
Within ten (10) calendar days from receipt of the Notice of
Award, the Winning bidder shall formally enter into contract
with the Procuring Entity. When further approval of higher
authority is required, the approving authority for the contracts

shall be given a maximum of twenty (20) calendar days to

approve or disapprove it.
In the case of government-owned and/or -controlled
corporations, the concerned board shall take action on the
said recommendation within thirty (30) calendar days from
receipt thereof.
The Procuring Entity shall issue the Notice to Proceed to the
winning bidder not later than seven (7) calendar days from
the date of approval of the contract by the appropriate
authority. All notices called for by the terms of the contract
shall be effective only at the time of receipt thereof by the
contractor.
Section 38. Period of Action on Procurement Activities.
- The procurement process from the opening of bids up to
the award of contract shall not exceed three (3) months, or a
sho0rter period to be determined by the procuring entity
concerned. Without prejudice to the provisions of the
preceding section, the different procurement activities shall
be completed within reasonable periods to be specified in
the IRR.
If no action on the contract is taken by the head of the
procuring entity or by his duly authorized representative, or
by the concerned board, in the case of government-owned
and/or -controlled corporations, within the periods specified
in the preceding paragraph, the contract concerned shall be
deemed approved.
Section 39. Performing Security. - Prior to the signing of the
contract, the winning bidder shall, as a measure of
guarantee for the faithful performance of an compliance with
his obligations under the contract prepared in accordance
with the Bidding Documents, be required to post a
performance security in such form and amount as specified
in the Bidding Documents.
Section 40. Failure to Enter into Contract and Post
Performance Security. - If, for justifiable causes, the bidder
with the Lowest Calculated Responsive Bid or Highest Rated
Responsive Bid fails, refuses or is otherwise unable to enter
into contract with the Procuring Entity, or if the bidder fails to
post the required performance security within the period
stipulated in the Bidding Documents, the BAC shall
disqualify the said bidder and shall undertake postqualification for the next-ranked Lowest Calculated Bid or
Highest Rated Bid. This procedure shall be repeated until an
award is made. However, if no award is possible, the
contract shall be subjected to a new bidding.
In the case of a failure to post the required performance
security, the bid security shall be forfeited without prejudice
to the imposition of sanctions prescribed under Article XXIII.
Section 41. Reservation Clause. - The Head of the Agency
reserves the right to reject any and all Bids, declare a failure

of bidding, or not award the contract in the following

situations:
a. If there is prima facie evidence of collusion
between appropriate public officers or employees
of the Procuring Entity, or between the BAC and
any of the bidders, or if the collusion is between or
among the bidders themselves, or between a
bidder and a third party, including any act which
restricts, suppresses or nullifies or tends to
restrict, suppress or nullify competition;
b. If the BAC is found to have failed in following
the prescribed bidding procedures; or
c. For any justifiable and reasonable ground where
the award of the contract will not redound to the
benefit of the government as defined in the IRR.
Section 42. Contract Implementation and Termination. - The
rules and guidelines for the implementation and termination
of contracts awarded pursuant to the provisions of this Act
shall be prescribed in the IRR. The rules and guidelines shall
include standard general and special conditions for
contracts.
ARTICLE XII
DOMESTIC AND FOREIGN PROCUREMENT
Section 43. Procurement of Domestic and Foreign Goods.
- Consistent with the country's obligations under international
treaties or agreements, Goods may be obtained for domestic
or foreign sources and the procurement thereof shall be
open to all eligible suppliers, manufacturers and distributors.
However, in the interest of availability, efficiency and timely
delivery of Goods, the Procuring Entity may give preference
to the purchase of domestically-produced and manufacturer
goods, supplies and materials that meet the specified or
desired quality.
ARTICLE XIII
BIDDING OF PROVINCIAL PROJECTS
Section 44. Bidding of Provincial Projects. - Priority
programs and infrastructure projects funded out of the
annual General Appropriations Act which are intended for
implementation within the province shall be subject to the
same public bidding and to the procurement processes
prescribed under this Act. For purposes of this Article,
Engineering District civil works projects, subject to
consultation with the concerned Members of Congress, are
included and subsumed in the term "provincial projects" and
shall be governed by this Section and Section 45 hereof.
Section 45. Provincial Bidders. - Within five (5) years from
the effectivity of this Act, contractor who participates in the
bidding of provincial priority programs and infrastructure
projects, whose principal office is within the same province,

and who submits the lowest bid among the provincial bidders
which is higher than the lowest bid made by a contractor with
principal office outside the said province shall be granted the
privilege to match the bid made by the latter: Provided,
however, That the release of funds for said projects shall be
published in a local newspaper with the widest circulation
and the website of the DBM, the mechanisms of which shall
be spelled-out in the IRR.
ARTICLE XIV
LEASE OF COMPUTERS, COMMUNICATIONS,
INFORMATION AND OTHER EQUIPMENT
Section 46. Lease Contracts. - Lease of construction and
office equipment, including computers, communication and
information technology equipment are subject to the same
public bidding and to the processes prescribed under this
Act.
ARTICLE XV
DISCLOSURE OF RELATIONS
Section 47. Disclosure of Relations. - In addition to the
proposed contents of the Invitation to Bid as mentioned
under Section 21 of this Act, all bidding documents shall be
accompanied by a sworn affidavit of the bidder that he or
she or any officer of their corporation in not related to the
Head of the Procuring Entity by consanguinity or affinity up
to the third civil degree. Failure to comply with the
aforementioned provision shall be a ground for the automatic
disqualification of the bid in consonance with Section30 of
this Act.
ARTICLE XVI
ALTERNATIVE METHODS OF PROCUREMENT
Section 48. Alternative Methods. - Subject to the prior
approval of the Head of the Procuring Entity or his duly
authorized representative, and whenever justified by the
conditions provided in this Act, the Procuring Entity may, in
order to promote economy and efficiency, resort to any of the
following alternative methods of Procurement:
a. Limited Source Bidding, otherwise known as
Selective Bidding - a method of Procurement that
involves direct invitation to bid by the Procuring
Entity from a set of pre-selected suppliers or
consultants with known experience and proven
capability relative to the requirements of a
particular contract;
b. Direct Contracting, otherwise known as Single
Source Procurement - a method of Procurement
that does not require elaborate Bidding
Documents because the supplier is simply asked
to submit a price quotation or a pro-forma voice
together with the conditions of sale, which offer

may be accepted immediately or after some

negotiations;
c. Repeat Order. - a method of Procurement that
involves a direct Procurement of Goods from the
previous winning bidder, whenever there is a need
to replenish Goods procured under a contract
previously awarded through Competitive Bidding;
d. Shopping - a method of Procurement whereby
the Procuring Entity simply requests for the
submission of price quotations for readily available
off-the-shelf Goods or ordinary/regular equipment
to be procured directly from suppliers of known
qualification; or
e. Negotiated Procurement - a method of
Procurement that may be resorted under the
extraordinary circumstances provided for in
Section 53 of this Act and other instances that
shall be specified in the IRR, whereby the
Procuring Entity directly negotiates a contract with
a technically, legally and financially capable
supplier, contractor or consultant.
In all instances, the Procuring Entity shall ensure that the
most advantageous price for the government is obtained.
Section 49. Limited Source Bidding. - Limited Source
Bidding may be resorted to only in any of the following
conditions:
a. Procurement of highly specialized types of
Goods and Consulting Services which are known
to be obtainable only from a limited number of
sources; or
b. Procurement of major plant components where
it is deemed advantageous to limit the bidding to
known eligible bidders in order to maintain an
optimum and uniform level of quality and
performance of the plant as a whole.
Section 50. Direct Contracting. - Direct Contracting may be
resorted to only in any of the following conditions:
a. Procurement of Goods of propriety nature,
which can be obtained only from the propriety
source, i.e. when patents, trade secrets and
copyrights prohibit others from manufacturing the
same items;
b. When the Procurement of critical components
from a specific manufacturer, supplier, or
distributor is a condition precedent to hold a
contractor to guarantee its project performance, in
accordance with the provisions his contract; or,

c. Those sold by an exclusive dealer or

manufacturer, which does not have sub-dealers
selling at lower prices and for which no suitable
substitute can be obtained at more advantageous
terms to the government.
Section 51. Repeat Order. - When provided for in the Annual
Procurement Plan, Repeat Order may be allowed wherein
the Procuring Entity directly procures Goods from the
previous winning bidder whenever there arises a need to
replenish goods procured under a contract previously
awarded through Competitive Bidding, subject to postqualification process prescribed in the Bidding Documents
and provided all the following conditions are present:
a. The unit price must be equal to or lower than
that provided in the original contract;
b. The repeat order does not result in splitting of
requisitions or purchase orders;
c. Except in special circumstances defined in the
IRR the repeat order shall be availed of only within
six (6) months from the date of the Notice to
Proceed arising from the original contract; and,
d. The repeat order shall not exceed twenty-five
percent (25%) of the quantity of each item of the
original contract.
Section 52. Shopping. - shopping may be resorted to under
any of the following instances:
a. When there is an unforeseen contingency
requiring immediate purchase: Provided, however,
That the amount shall not exceed Fifty thousand
pesos (P50,000); or
b. Procurement of ordinary or regular office
supplies and equipment not available in the
Procurement Service involving an amount not
exceeding Two hundred fifty thousand pesos
(P250,000): Provided, however, That the
Procurement does not result in Splitting of
Contracts: Provided, further, That at least three (3)
price quotations from bona fide suppliers shall be
obtained.
The above amounts shall be subject to a period review by
the GPPB. For this purpose, the GPPB shall be authorized
to increase or decrease the said amount in order to reflect
changes in economic conditions and for other justifiable
reasons.
Section 53. Negotiated Procurement. - Negotiated
Procurement shall be allowed only in the following instances:

a. In case of two (2) failed bidding as provided in

Section 35 hereof;
b. In case of imminent danger to life or property
during a state of calamity, or when time is of the
essence arising from natural or man-made
calamities or other causes where immediate action
is necessary to prevent damage to or loss of life or
property, or to restore vital public services,
infrastructure facilities and other public utilities;
c. Take-over of contracts, which have been
rescinded or terminated for causes provided for in
the contract and existing laws, where immediate
action is necessary to prevent damage to or loss
of life or property, or to restore vital public
services, infrastructure facilities and other public
utilities;
d. Where the subject contract is adjacent or
contiguous to an on-going infrastructure project,
as defined in the IRR: Provided, however, That the
original contract is the result of a Competitive
Bidding; the subject contract to be negotiated has
similar or related scopes of work; it is within the
contracting capacity of the contractor; the
contractor uses the same prices or lower unit
prices as in the original contract less mobilization
cost; the amount involved does not exceed the
amount of the ongoing project; and, the contractor
has no negative slippage: Provided, further, That
negotiations for the procurement are commenced
before the expiry of the original contract. Wherever
applicable, the principle shall also govern
consultancy contract, where the consultants have
unique experience and expertise to deliver the
required service; or,
e. Subject to the guidelines specified in the IRR,
purchases of Goods from another agency of the
government, such as the Procurement Service of
the DBM, which is tasked with a centralized
procurement of commonly used Goods for the
government in accordance with Letters of
Instruction No. 755 and Executive Order No. 359,
series of 1989.
Section 54. Terms and Conditions for the use of Alternative
Methods. - The specific terms and conditions, including the
limitations and restrictions, for the application of each of the
alternative methods mentioned in this Article shall be
specified in the IRR.

Decisions of the BAC may be protested by filing a verified

position paper and paying a non-refundable protest fee. The
amount of the protest fee and the periods during which the
protests may be filed and resolved shall be specified in the
IRR.
Section 56. Resolution of Protests. - The protest shall be
resolved strictly on the basis of records of the BAC. Up to a
certain amount to be specified in the IRR, the decisions of
the Head of the Procuring Entity shall be final.
Section 57. Non-interruption of the Bidding Process.- In no
case shall any protest taken from any decision treated in this
Article stay or delay the bidding process. Protests must first
be resolved before any award is made.
Section 58. Report to Regular Courts; Certiorari.- Court
action may be resorted to only after the protests
contemplated in this Article shall have been completed.
Cases that are filed in violation of the process specified in
this Article shall be dismissed for lack of jurisdiction. The
regional trial court shall have jurisdiction over final decision
of the head of the procuring entity. Court actions shall be
governed by Rule 65 of the 1997 Rules of Civil Procedure.
This provision is without prejudice to any law conferring on
the Supreme court the sole jurisdiction to issue temporary
restraining orders and injunctions relating to Infrastructure
Projects of Government.
ARTICLE XVIII
SETTLEMENT OF DISPUTES
Section 59. Arbitration. - Any and all disputes arising from
the implementation of a contract covered by this Act shall be
submitted to arbitration in the Philippines according to the
provisions of Republic Act No. 876, otherwise known as the
"Arbitration Law": Provided, however, That, disputes that are
within the competence of the Construction Industry
Arbitration Commission to resolve shall be referred thereto.
The process of arbitration shall be incorporated as a
provision in the contract that will be executed pursuant to the
provisions of this Act: Provided, That by mutual agreement,
the parties may agree in writing to resort to alternative
modes of dispute resolution.
Section 60. Appeals. - The arbitral award and any decision
rendered in accordance with the foregoing Section shall be
appealable by way of a petition for review to the Court of
Appeals. The petition shall raise pure questions of law and
shall be governed by the Rule of Court.

ARTICLE XVII
PROTEST MECHANISM

ARTICLE XIX
CONTRACT PRICES AND WARRANTIES

Section 55. Protests on Decisions of the BAC.- Decisions of

the BAC in all stages of procurement may be protested to
the head of the procuring entity and shall be in writing.

Section 61. Contract Prices. - For the given scope of work in

the contract as awarded, all bid prices shall be considered
as fixed prices, and therefore not subject to price escalation

during contract implementation, except under extraordinary

circumstances and upon prior approval of the GPPB.
For purposes of this Section, "extraordinary circumstances"
shall refer to events that may be determined by the National
Economic and Development Authority in accordance with the
Civil Code of the Philippines, and upon the recommendation
of the procuring entity concerned.
Section 62. Warranty. - (a) For the procurement of Goods, in
order to assure that manufacturing defects shall be corrected
by the supplier, manufacturer, or distributor, as the case
maybe, for a specific time after performance of the contract,
a warranty shall be required from the contract awardee for
such period of time as may be provided in the IRR, the
obligation for which shall be covered by either retention
money in the amount equivalent to a percentage of every
progress payment, or a special bank guarantee equivalent to
a percentage of the total contract price, to be provided in the
IRR. The said amounts shall only be released after the lapse
of the warranty period, provided that the Goods supplied are
free from defects and all the conditions imposed under the
contract have been fully met.
b. For the procurement of infrastructure projects,
the contractor shall assume full responsibility for
the contract work from the time project
construction commenced up to a reasonable
period as defined in the IRR taking into
consideration the scale and coverage of the
project from its final acceptance by the
government and shall be held responsible for any
damage or construction or works except those
occasioned by force majeure. The contractor shall
be fully responsible for the safety, protection,
security, and convenience of his personnel, third
parties, and the public large, as well as the works,
equipment, installation and the like to be affected
by his construction work and shall be required to
put up a warranty security in the form of cash,
bank guarantee, letter of credit, Government
Service Insurance System bond, or callable surety
bond.
The contractor shall undertake the repair works, at his own
expense, of any defect or damage to the infrastructure
projects on account of the use of materials of inferior quality
within ninety (90) days from the time the Head of the
Procuring Entity has issued an order to undertake repair. In
case of failure or refusal to comply with this mandate, the
governments shall undertake such repair works and shall be
entitle to full reimbursement of expenses incurred therein
upon demand.
Any contractor who fails to comply with the preceding
paragraphs shall suffer perpetual disqualification from
participating in any public bidding and his property or
properties shall be subject to attachment or garnishment

proceedings to recover the costs. All payables of

government in his favor shall be offset to recover the costs.
ARTICLE XX
THE GOVERNMENT PROCUREMENT POLICY BOARD
Section 63. Organization and Functions. - A Government
Procurement Policy Board (GPPB) is hereby established to:
(a.) protect national interest in all matters affecting public
Procurement, having due regard to the country's regional
and international obligations; (b.) formulate and amend,
whenever necessary, the IRR and the corresponding
standard forms for Procurement; (c) ensure that Procuring
Entities regularly conduct Procurement training programs
and prepare a Procurement operations manual for all offices
and agencies of government; and (d) conduct an annual
review of the effectiveness of this Act and recommend any
amendments thereto, as may be necessary.
The GPPB shall convene within fifteen (15) days from the
effectivity of this Act formulate the IRR and for other related
purposes. The GPPB shall be supported by a technical
support office.
In addition to the powers granted under this Act, the GPPB
shall absorb all the powers, function and responsibilities of
the Procurement Policy Board created under Executive
Order No. 359, series of 1989. All affected functions of the
Infrastructure Committee of the National Economic and
Development Authority Board are hereby transferred to the
GPPB.
Section 64. Membership. - The GPPB shall be composed of
the Secretary of the Department of Budget and
Management, as Chairman, the Director-General of the
National Economic and Development Authority, as Alternate
Chairman, with the following as Members; the Secretaries of
the Departments of Public Works and Highways, Finance,
Trade and Industry, Health, National Defense, Education,
Interior and Local Government, Science and Technology,
Transportation and Communications, and Energy, or their
duly authorized representatives and a representative from
the private sector to be appointed by the President upon the
recommendation of the GPPB. The GPPB may invite a
representative from the Commission on Audit to serve as a
resource person.
ARTICLE XXI
PENAL CLAUSE
Section 65. Offenses and Penalties. - (a) Without prejudice
to the provisions of Republic Act No. 3019, otherwise known
as the "Anti-Graft and Corrupt Practice Act" and other penal
laws, public officers who commit any of the following acts
shall suffer the penalty of imprisonment of not less than six
(6) years and one (1) day, but not more than fifteen (15)
years:

1. Open any sealed Bid including but not

limited to Bids that may have been
submitted through the electronic system
and any and all documents required to
be sealed or divulging their contents,
prior to the appointed time for the public
opening of Bids or other documents.

2. When a bidder maliciously submits

different Bids through two or more
persons, corporations, partnerships or
any other business entity in which he
has interest of create the appearance of
competition that does not in fact exist so
as to be adjudged as the winning bidder.

2. Delaying, without justifiable cause,

the screening for eligibility, opening of
bids, evaluation and post evaluation of
bids, and awarding of contracts beyond
the prescribed periods of Bids or other
documents.

3. When two or more bidders enter into

an agreement which call upon one to
refrain from bidding for Procurement
contracts, or which call for withdrawal of
bids already submitted, or which are
otherwise intended to secure as undue
advantage to any one of them.

3. Unduly influencing or exerting undue

pressure on any member of the BAC or
any officer or employee of the procuring
entity to take a particular bidder.
4. Splitting of contracts which exceed
procedural purchase limits and
competitive bidding.
5. When the head of the agency abuses
the exercise of his power to reject any
and all bids as mentioned under Section
41 of this Act with manifest preference
to any bidder who is closely related to
him in accordance with Section 47 of
this Act.
When any of the foregoing acts is done in
collusion with private individuals, the private
individuals shall likewise be liable for the offense.
In addition, the public officer involved shall also
suffer the penalty of temporary disqualification
from public office, while the private individual shall
be permanently disqualified from transacting
business with the government.
(b) Private individuals who commit any of the
following acts, including any public officer, who
conspires with them, shall suffer the penalty of
imprisonment of not less than six (6) years and
one (1) day but not more than fifteen (15) years:
1. When two or more bidders agree and
submit different Bids as if they were
bona fide, when they knew that one or
more of them was so much higher than
the other that it could not be honestly
accepted and that the contract will
surely be awarded to the pre-arranged
lowest Bid.

4. When a bidder, by himself or in

connivance with others, employ
schemes which tend to restrain the
natural rivalry of the parties or operates
to stifle or suppress competition and
thus produce a result disadvantageous
to the public.
In addition, the persons involved shall also suffer
the penalty of temporary or perpetual
disqualification from public office and be
permanently disqualified from transacting business
with the government.
(c) Private individuals who commit any of the
following acts, and any public officer conspiring
with them, shall suffer the penalty of imprisonment
of not less than six (6) years and one (1) day but
more than fifteen (15) years:
1. Submit eligibility requirements of
whatever kind and nature that contain
false information or falsified documents
calculated to influence the outcome of
the eligibility screening process or
conceal such information in the eligibility
requirements when the information will
lead to a declaration of ineligibility from
participating in public bidding.
2. Submit Bidding Documents of
whatever kind and nature than contain
false information or falsified documents
or conceal such information in the
Bidding Documents, in order to
influence the outcome of the public
bidding.
3. Participate in a public bidding using
the name of another or allow another to
use one's name for the purpose of
participating in a public bidding.

4. Withdraw a Bid, after it shall have

qualified as the Lowest Calculated
Bid/Highest Rated Bid, or to accept and
award, without just cause or for the
purpose of forcing the Procuring Entity
to award the contract to another bidder.
This shall include the non-submission of
requirements such as, but not limited to,
performance security, preparatory to the
final award of the contract.
(d) When the bidder is a juridical entity, criminal
liability and the accessory penalties shall be
imposed on its directors, officers or employees
who actually commit any of the foregoing acts.
Section 66. Jurisdiction. - Jurisdiction over the offenses
defined under this Article shall belong to the appropriate
courts, according to laws existing at the time of the
commission of the offenses.
ARTICLE XXII
CIVIL LIABILITY
Section 67. Civil Liability in Case of Conviction. - Without
prejudice to administrative sanctions that may be imposed in
proper cases, a conviction under this Act or Republic Act No.
3019 shall carry with it civil liability, which may either consist
of restitution for the damage done or the forfeiture in favor of
the government of any unwarranted benefit derived from the
act or acts in question or both, at the discretion of the courts.
Section 68. Liquidated Damages. - All contracts executed in
accordance with this Act shall contain a provision on
liquidated damages which shall be payable in case of breach
thereof. The amount thereof shall be specified in the IRR.
ARTICLE XXIII
ADMINISTRATIVE SANCTIONS
Section 69. Imposition of Administrative Penalties. - (a) In
addition to the provisions of Articles XXI and XXII of this Act,
the Head of the Procuring Entity, subject to the authority
delegated to the BAC, if any, shall impose on bidders or
prospective bidders, the administrative penalty of
suspension for one (1) years for the first offense, and
suspensions of two (2) years for the second offense from
participating in the public bidding process, for the following
violations:
1. Submission of eligibility requirements
containing false information or falsified
documents.
2. Submission of bids that contain false
information or falsified documents, or
the concealment of such information in
the Bids in order to influence the

outcome of eligibility screening or any

other stage of the public bidding.
3. Allowing the use of one's name, or
using the name of another for purposes
of public bidding.
4. Withdrawal of a Bid, or refusal to
accept an award, or enter into contract
with the government without justifiable
cause, after he had been adjudged as
having submitted the Lowest Calculated
Responsive Bid or Highest Rated
Responsive Bid.
5. Refusal or failure to post the require
performance security within the
prescribed time.
6. Termination of the contract due to the
default of the bidder.
Refusal to clarify or validate in writing its
Bid during post-qualification within a
period of seven (7) calendar days from
receipt of the request for clarification.
Any documented unsolicited attempt by
a bidder to unduly influence the
outcome of the bidding in his favor.
All other acts that tend to defeat the
purpose of the Competitive bidding.
(b) In addition to the penalty of suspension, the
Bid security of the performance security posted by
the concerned bidder or prospective bidder shall
also be forfeited.
(c) the Head of the Procuring Entity may delegate
to the BAC the authority to impose the
aforementioned administrative penalties.
Section 70. Preventive Suspension. - The head of the
procuring entity may preventively suspend any member of
the Technical Working Group of the Secretariat, or the BAC if
there are strong reasons or prima facie evidence showing
that the officials or employees concerned are guilty or the
charges filed against them under Articles XXI and XXII of this
Act or for dishonesty as defined by the Civil Service Laws. In
all cases, procedural and substantive due process as
mandated by the Constitution and Civil Service Laws, rules
and regulations, shall be strictly observed.
Section 71. Lifting of Suspension and Removal of
Administrative Disabilities. - Lifting of preventive suspension
pending administrative investigation, as well as removal of

administrative investigation, as well as removal of

administrative penalties and disabilities shall be in
accordance with the provisions of Sections 52 and 53,
Chapter 6 (Civil Service Commission), Book V of Executive
Order No. 292, the Administrative Code of 1987.
ARTICLE XXIV
LEGAL ASSISTANCE AND INDEMNIFICATION OF BAC
MEMBERS
Section 72. Private Legal Assistance. - All the members of
the BAC are hereby authorized to engage the service of
private lawyers or extend counsel immediately upon receipt
of Court Notice that a civil or criminal action, suit or
proceeding is filed against them. The lawyer's fee shall be
part of the indemnification package for the BAC members,
subject to the provisions of Section 73 hereof.
Section 73. Indemnification of BAC Members. - The GPPB
shall establish an equitable indemnification package for
public officials providing services in the BAC, which may be
in the form of free legal assistance, liability insurance, and
other forms of protection and indemnification for all cost and
expenses reasonably incurred by such persons in
connection with any civil or criminal actions, suit or
proceeding to which they may be, or have been made, a
party by reason of the performance of their functions or
duties, unless they are finally adjudged in such action or
proceeding to be liable for gross negligence or misconduct
or grave abuse of discretion.
In the event of settlement or compromise, indemnification
shall be confined only on matters covered by the settlement,
as to which the Procuring Entity had been advised by
countset that the public officials to be indemnified have not
committed gross negligence or misconduct in the
performance of their functions and duties.
The members of the BAC and the BAC Secretariat shall also
be entitled to medical assistance for injuries incurred in the
performance of their functions.
REPUBLIC ACT NO. 9851
AN ACT DEFINING AND PENALIZING CRIMES AGAINST
INTERNATIONAL HUMANITARIAN LAW, GENOCIDE AND
OTHER CRIMES AGAINST HUMANITY, ORGANIZING
JURISDICTION, DESIGNATING SPECIAL COURTS, AND
FOR RELATED PURPOSES
Be it enacted by the Senate and House of Representatives
of the Philippines in Congress assembled:
CHAPTER I
INTRODUCTORY PROVISIONS
Section 1. Short Title. - This Act shall be known as
the "Philippine Act on Crimes Against International

Humanitarian Law, Genocide, and Other Crimes Against

Humanity".
Section 2. Declaration of Principles and State Policies. (a) The Philippines renounces war as an
instrument of national policy, adopts the generally
accepted principles of international law as part of
the law of the land and adheres to a policy of
peace, equality, justice, freedom, cooperation and
amity with all nations.
(b) The state values the dignity of every human
person and guarantees full respect for human
rights, including the rights of indigenous cultural
communities and other vulnerable groups, such as
women and children;
(c) It shall be the responsibility of the State and all
other sectors concerned to resolved armed conflict
in order to promote the goal of "Children as Zones
of Peace";
(d) The state adopts the generally accepted
principles of international law, including the Hague
Conventions of 1907, the Geneva Conventions on
the protection of victims of war and international
humanitarian law, as part of the law our nation;
(e) The most serious crimes of concern to the
international community as a whole must not go
unpunished and their effective prosecution must
be ensured by taking measures at the national
level, in order to put an end to impunity for the
perpetrators of these crimes and thus contribute to
the prevention of such crimes, it being the duty of
every State to exercise its criminal jurisdiction over
those responsible for international crimes;
(f) The State shall guarantee persons suspected
or accused of having committed grave crimes
under international law all rights necessary to
ensure that their trial will be fair and prompt in
strict accordance with national and international
law and standards for fair trial, It shall also protect
victims, witnesses and their families, and provide
appropriate redress to victims and their families, It
shall ensure that the legal systems in place
provide accessible and gender-sensitive avenues
of redress for victims of armed conflict, and
(g)The State recognizes that the application of the
provisions of this Act shall not affect the legal
status of the parties to a conflict, nor give an
implied recognition of the status of belligerency
CHAPTER II
DEFINITION OF TERMS

Section 3. For purposes of this Act, the term:

(a) "Apartheid' means inhumane acts committed in
the context of an institutionalized regime of
systematic oppression and domination by one
racial group or groups and committed with the
intention of maintaining that regime
(b) "Arbitrary deportation or forcible transfer of
population" means forced displacement of the
persons concerned by expultion by expulsion or
other coercive acts from the area in which they are
lawfully present, without grounds permitted under
domestic or international law.
(c) "Armed conflict" means any use of force or
armed violence between States or a protracted
armed violence between governmental authorities
and organized armed groups or between such
groups within that State: Provided, That such force
or armed violence gives rise, or may give rise, to a
situation to which the Geneva Conventions of 12
August 1949, including their common Article 3,
apply. Armed conflict may be international, that is,
between two (2) or more States, including
belligerent occupation; or non-international, that is,
between governmental authorities and organized
armed groups or between such groups within a
state. It does not cover internal disturbances or
tensions such as riots, isolated and sporadic acts
of violence or other acts of a similar nature.
(d) "Armed forces" means all organized armed
forces, groups and units that belong to a party to
an armed conflict which are under a command
responsible to that party for the conduct of its
subordinates. Such armed forces shall be subject
to an internal disciplinary system which enforces
compliance with International Humanitarian Law
(e) "Attack directed against any civilian population"
means a course of conduct involving the multiple
commission of acts referred to in Section 6 of this
Act against any civilian population, pursuant to or
in furtherance of a State or organizational policy to
commit such attack.
(f) "Effective command and control" or " effective
authority and control" means having the material
ability to prevent and punish the commission of
offenses by subordinates.
(g) "Enforced or involuntary disappearance of
persons" means the arrest, detention, or abduction
of persons by, or with the authorization support or
acquiescence of, a State or a political organization
followed by a refusal to acknowledge that
deprivation of freedom or to give information on
the fate or whereabouts of those persons, with the

intention of removing from the protection of the law

for a prolonged period of time
(h) "Enslavement" means the exercise of any or all
of the powers attaching to the right of ownership
over a person and includes the exercise of such
power in the course of trafficking in persons, in
particular women and children.
(i) "Extermination" means the international
infliction of conditions of life, inter alia, the
deprivation of access to food and medicine,
calculated to bring about the destruction of a part
of a population.
(j) " Forced pregnancy" means the unlawful
confinement of a women to be forcibly made
pregnant, with the intent of affecting the ethnic
composition of any population carrying out other
grave violations of international law.
(k) "Hors de Combat" means a person who:
(1) is in the power of an adverse party;
(2) has clearly expressed an intention to
surrender; or
(3) has been rendered unconscious or
otherwise incapacitated by wounds or
sickness and therefore is incapable of
defending himself: Provided, that in any
of these cases, the person form any
hostile act and does not attempt to
escape.
(l) "Military necessity" means the necessity of
employing measures which are indispensable to
achieve a legitimate aim of the conflict and are not
otherwise prohibited by International Humanitarian
Law
(m) "Non-defended locality" means a locality that
fulfills the following conditions:
(1) all combatants, as well as mobile
weapons and mobile military equipment,
must have been evacuated;
(2) no hostile use of fixed military
installations or establishments must
have been made;
(3) no acts of hostility must have been
committed by the authorities or by the
population; and

(4) no activities in support of military

operations, must have been undertaken.
(n) "No quarter will be given' means refusing to
spare the life of anybody, even of persons
manifestly unable to defend themselves or who
clearly express their intention to surrender.
(o) "Perfidy" means acts which invite the
confidence of an adversary to lead him/her to
believe he/she is entitled to, or is obliged to
accord, protection under the rules of International
Humanitarian Law, with the intent to betray that
confidence, including but not limited to:
(1) feigning an intent to negotiate under
a flag of truce;
(2) feigning surrender;
(3) feigning incapacitation by wounds or
sickness;
(4) feigning civilian or noncombatant
status; and
(5) feigning protective status by use of
signs, emblems or uniforms of the
United Nations or of a neutral or other
State not party to the conflict.
(p) "Persecution" means the international and
severe deprivation of fundamental rights contrary
to international law by reason of identity of the
group or collectivity.
(q) "Protect person" in an armed conflict means:
(1) a person wounded, sick or
shipwrecked, whether civilian or military;
(2) a prisoner of war or any person
deprived of liberty for reasons related to
an armed conflict;
(3) a civilian or any person not taking a
direct part or having ceased to take part
in the hostilities in the power of the
adverse party;
(4) a person who, before the beginning
of hostilities, was considered a stateless
person or refugee under the relevant
international instruments accepted by
the parties to the conflict concerned or
under the national legislation of the state
of refuge or state of residence;

(5) a member of the medical personnel

assigned exclusively to medical
purposes or to the administration of
medical units or to the operation of or
administration of medical transports; or
(6) a member of the religious personnel
who is exclusively engaged in the work
of their ministry and attached to the
armed forces of a party to the conflict,
its medical units or medical transports,
or non-denominational, noncombatant
military personnel carrying out functions
similar to religious personnel.
(r) " Superior" means:
(1) a military commander or a person
effectively acting as a military
commander; or
(2) any other superior, in as much as the
crimes arose from activities within the
effective authority and control of that
superior.
(s) "Torture" means the intentional infliction of
severe pain or suffering, whether physical, mental,
or psychological, upon a person in the custody or
under the control of the accused; except that
torture shall not include pain or suffering arising
only from, inherent in or incidental to, lawful
sanctions.
(t) "Works and installations containing dangerous
forces" means works and installations the attack of
which may cause the release of dangerous forces
and consequent severe losses among the civilian
population, namely: dams, dikes, and nuclear,
electrical generation stations.
CHAPTER III
CRIMES AGAINST INTERNATIONAL HUMANITARIAN
LAW,
GENOCIDE AND OTHER CRIMES AGAINST HUMANITY
Section 4. War Crimes. - For the purpose of this Act, "war
crimes" or "crimes against Interntional Human Humanitarian
Law" means:
(a) In case of an international armed conflict ,
grave breaches of the Geneva Conventions of 12
August 1949, namely, any of the following acts
against persons or property protected under
provisions of the relevant Geneva Convention:
(1) Willful killing;

(2) Torture or inhuman treatment,

including biological experiments;
(3) Willfully causing great suffering, or
serious injury to body or health;
(4) Extensive destruction and
appropriation of property not justified by
military necessity and carried out
unlawfully and wantonly;
(5) Willfully depriving a prisoner of war
or other protected person of the rights of
fair and regular trial;
(6) Arbitrary deportation or forcible
transfer of population or unlawful
confinement;
(7) Taking of hostages;
(8) Compelling a prisoner a prisoner of
war or other protected person to serve
in the forces of a hostile power; and
(9) Unjustifiable delay in the repatriation
of prisoners of war or other protected
persons.
(b) In case of a non-international armed conflict,
serious violations of common Article 3 to the four
(4) Geneva Conventions of 12 August 1949,
namely , any of the following acts committed
against persons taking no active part in the
hostilities, including member of the armed forces
who have laid down their arms and those
placed hors de combat by sickness, wounds,
detention or any other cause;
(1) Violence to life and person, in
particular, willful killings, mutilation, cruel
treatment and torture;
(2) Committing outrages upon personal
dignity, in particular, humiliating and
degrading treatment;
(3) Taking of hostages; and
(4) The passing of sentences and the
carrying out of executions without
previous judgment pronounced by a
regularly constituted court, affording all
judicial guarantees which are generally
recognized as indispensable.

(c) Other serious violations of the laws and

customs applicable in armed conflict, within the
established framework of international law,
namely:
(1) Internationally directing attacks
against the civilian population as such or
against individual civilians not taking
direct part in hostilities;
(2) Intentionally directing attacks against
civilian objects, that is, object which are
not military objectives;
(3) Intentionally directing attacks against
buildings, material, medical units and
transport, and personnel using the
distinctive emblems of the Geneva
Conventions or Additional Protocol III in
conformity with intentional law;
(4) Intentionally directing attacks against
personnel, installations, material, units
or vehicles involved in a humanitarian
assistance or peacekeeping mission in
accordance with the Charter of the
United Nations, as ling as they are
entitled to the protection given to
civilians or civilian objects under the
international law of armed conflict;
(5) Launching an attack in the
knowledge that such attack will cause
incidental loss of life or injury to civilians
or damage to civilian objects or
widespread, long-term and severe
damage to the natural environment
which would be excessive in relation to
the concrete and direct military
advantage anticipated;
(6) Launching an attack against works
or installations containing dangerous
forces in the knowledge that such attack
will cause excessive loss of life, injury to
civilians or damage to civilian objects,
and causing death or serious injury to
body or health .
(7) Attacking or bombarding, by
whatever means, towns, villages,
dwellings or buildings which are
undefended and which are not military
objectives, or making non-defended
localities or demilitarized zones the
object of attack;

(8) Killing or wounding a person in the

knowledge that he/she is hors de
combat, including a combatant who,
having laid down his/her arms or no
longer having means of defense, has
surrendered at discretion;
(9) Making improper use of a flag of
truce, of the flag or the military insignia
and uniform of the enemy or of the
United Nations, as well as of the
distinctive emblems of the Geneva
Conventions or other protective signs
under International Humanitarian Law,
resulting in death, serious personal
injury or capture;
(10) Intentionally directing attacks
against buildings dedicated to religion,
education, art, science or charitable
purposes, historic monuments, hospitals
and places where the sick and wounded
are collected, provided they are not
military objectives. In case of doubt
whether such building or place has been
used to make an effective contribution to
military action, it shall be presumed not
to be so used;
(11) Subjecting persons who are in the
power of an adverse party to physical
mutilation or to medical or scientific
experiments of any kind, or to removal
of tissue or organs for transplantation,
which are neither justified by the
medical, dental or hospital treatment of
the person concerned nor carried out in
his/her interest, and which cause death
to or seriously endanger the health of
such person or persons;
(12) Killing, wounding or capturing an
adversary by resort to perfidy;
(13) Declaring that no quarter will be
given;
(14) Destroying or seizing the enemy's
property unless such destruction or
seizure is imperatively demanded by the
necessities of war;
(15) Pillaging a town or place, even
when taken by assault;
(16) Ordering the displacements of the
civilian population for reasons related to
the conflict, unless the security of the

civilians involved or imperative military

reasons so demand;
(17) Transferring, directly or indirectly,
by the occupying power of parts of its
own civilian population into the territory
it occupies, or the deportation or transfer
of all or parts of the population of the
occupied territory within or outside this
territory;
(18) Commiting outrages upon personal
dignity, in particular, humiliating and
degrading treatments;
(19) Commiting rape, sexual slavery,
enforced prostitution, forced pregnancy,
enforced sterilization, or any other form
of sexual violence also constituting a
grave breach of the Geneva
Conventions or a serious violation of
common Article 3 to the Geneva
Convensions;
(20) Utilizing the presence of a civilian
or other protected person to render
certain points, areas or military forces
immune from military operations;
(21) Intentionally using starvation of
civilians as a method of warfare by
depriving them of objects indespensable
to their survival, including willfully
impeding relief supplies as provided for
under the Geneva Conventions and
their Additional Protocols;
(22) In an international armed conflict,
compelling the nationals of the hostile
party to take part in the operations of
war directed against their own country,
even if they were in the belligerent's
service before the commencement of
the war;
(23) In an international armed conflict,
declaring abolished, suspended or
inadmissible in a court of law the rights
and actions of the nationals of the
hostile party;
(24) Commiting any of the following
acts:
(i) Conscripting, enlisting or
recruiting children under the
age of fifteen (15) years into
the national armed forces;

(ii) Conscripting, enlisting or

recruiting children under the
age of eighteen (18) years
into an armed force or group
other than the national armed
forces; and
(iii) Using children under the
age of eighteen (18) years to
participate actively in
hostilities; and
(25) Employing means of warfare which
are prohibited under international law,
such as:
(i) Poison or poisoned
weapons;
(ii) Asphyxiating, poisonous or
other gases, and all
analogous liquids, materials
or devices;

(3) Deliberately inflicting on the group

conditions of life calculated to bring
about its physical destruction in whole or
in part;
(4) Imposing measures intended to
prevent births within the group; and
(5) Forcibly transferring children of the
group to another group.
(b) It shall be unlawful for any person to directly
and publicly incite others to commit genocide.
Any person found guilty of committing any of the acts
specified in paragraphs (a) and (b) of this section shall suffer
the penalty provided under Section 7 of this Act.
Section 6. Other Crimes Against Humanity. - For the
purpose of this act, "other crimes against humanity" means
any of the following acts when committed as part of a
widespread or systematic attack directed against any civilian
population, with knowledge of the attack:

(iii) Bullets which expand or

flatten easily in the human
body, such as bullets with
hard envelopes which do not
entirely cover the core or are
pierced with incisions; and

(a) Willful killing;

(iv) Weapons, projectiles and

material and methods of
warfare which are of the
nature to cause superfluous
injury or unecessary suffering
or which are inherently
indiscriminate in violation of
the international law of armed
conflict.

(d) Arbitrary deportation or forcible transfer of

population;

Any person found guilty of commiting any of the

acts specified herein shall suffer the penalty
provided under Section 7 of this Act.
Section 5. Genocide - (a) For the purpose of this Act,
"genocide" means any of the following acts with intent to
destroy, in whole or in part, a national, ethnic, racial,
religious, social or any other similar stable and permanent
group as such:

(b) Extermination;
(c) Enslavement;

(e) Imprisonment or other severe deprivation of

physical liberty in violation of fundamental rules of
international law;
(f) Torture;
(g) Rape, sexual slavery, enforced prostitution,
forced pregnancy, enforced sterilization, or any
other form of sexual violence of comparable
gravity;

(1) Killing members of the group;

(h) Persecution against any identifiable group or

collectivity on political, racial, national, ethnic,
cultural, religious, gender, sexual orientation or
other grounds that are universally recognized as
impermissible under international law, in
connection with any act referred to in this
paragraph or any crime defined in this Act;

(2) Causing serious bodily or mental

harm to members of the group;

(i) Enforced or involuntary disappearance of

persons;
(j) Apartheid; and

(k) Other inhumane acts of a similar character

intentionally causing great suffering, or serious
injury to body or to mental or physical health.
Any person found guilty of committing any of the acts
specified herein shall suffer the penalty provided under
Section 7 of this Act.
CHAPTER IV
PENAL PROVISIONS
Section 7. Penalties. - Any person found guilty of committing
any of the acts provided under Sections 4, 5 and 6 of this Act
shall suffer the penalty of reclusion temporal in its medium to
maximum period and a fine ranging from One hundred
thousand pesos (Php 100,000.00) to Five hundred thousand
pesos (Php 500,000.00).
When justified by the extreme gravity of the crime, especially
where the commision of any of the crimes specified herein
results in death or serious physical injury, or constitutes rape,
and considering the individual circumstances of the accused,
the penalty of reclusion perpetua and a fine ranging from
Five hundred thousand pesos (Php 500,000.00) to One
million pesos (Php 1,000,000.00) shall be imposed.
Any person found guilty of inciting others to commit genocide
referred to in Section 5(b) of this Act shall suffer the penalty
of prision mayor in its minimum period and a fine ranging
from Ten thousand pesos (Php 10,000.00) to Twenty
thousand pesos (Php 20,000.00).
In addition, the court shall order the forfeiture of proceeds,
property and assets derived, directly or indirectly, from that
crime, without prejudice to the rights of bona fide third (3rd)
parties. The court shall also impose the corresponding
accessory penalties under the Revised Penal Code,
especially where the offender is a public officer.
CHAPTER V
SOME PRINCIPLES OF CRIMINAL LIABILITY
Section 8. Individual Criminal Responsibilities. - (a) In
addition to existing provisions in Philippine law on principles
of criminal responsibility, a person shall be criminally liable
as principal for a crime defined and penalized in this Act if
he/she:
(1) Commits such a crime, whether as
an individual, jointly with another or
through another person, regardless of
whether that other person is criminally
responsible;
(2) Orders, solicits or induces the
commission of such a crime which in
fact occurs or is attempted;

(3) In any other way contributes to the

commission or attempted commission of
such a crime by a group of person
acting with a common purpose. Such
contribution shall be intentional and
shall either:
(i) be made with the aim of
furthering the criminal activity
or criminal purpose of the
group, where such activity or
purpose involves the
commission of a crime
defined in this Act; or
(ii) be made in the knowledge
of the intention of the group to
commit the crime.
(b) A person shall be criminally liable as
accomplice for facilitating the commission of a
crime defined and penalized in this Act if he/she
aids, abets or otherwise assists in its commission
or attempted commission, including providing the
means for its commission.
(c) A person shall be criminally liable for a crime
defined and penalized in this Act if he/she
attempts to commit such a crime by taking action
that commences its execution by means of a
substantial step, but the crime does not occur
because of circumstances independent of the
person's intention. However, a person who
abandons the effort to commit the crime or
otherwise prevents the completion of the crime
shall not be liable for punishment under this Act for
the attempt to commit the same if he/she
completely and voluntarily gave up the criminal
purpose.
Section 9. Irrelevance of Official Capacity. - This Act shall
apply equally to all persons without any distinction based on
official capacity. In particular, official capacity as a head of
state or government, a member of a government or
parliament, an elected representative or a government
official shall in no case exempt a person from criminal
responsibility under this Act, nor shall it, in and of itself,
constitute a ground for reduction of sentence. However:
(a) Immunities or special procedural rules that may
be attached to the official capacity of a person
under Philippine law other than the established
constitutional immunity from suit of the Philippine
President during his/her tenure, shall not bar the
court from exercising jurisdiction over such a
person; and
(b) Immunities that may be attached to the official
capacity of a person under international law may

limit the application of this Act, nut only within the

bounds established under international law.
Section 10. Responsibility of Superiors. - In addition to other
grounds of criminal responsibility for crimes defined and
penalized under this Act, a superior shall be criminally
responsible as a principal for such crimes committed by
subordinates under his/her effective command and control,
or effective authority and control as the case may be, as a
result of his/her failure to properly exercise control over such
subordinates, where:
(a) That superior either knew or, owing to the
circumstances at the time, should have known that
the subordinates were committing or about to
commit such crimes;
(b) That superior failed to take all necessary and
reasonable measures within his/her power to
prevent or repress their commission or to submit
the matter to the competent authorities for
investigation and prosecution.
Section 11. Non-prescription. - The crimes defined and
penalized under this Act, their prosecution, and the
execution of sentences imposed on their account, shall not
be subject to any prescription.
Section 12. Orders from a Superior. - The fact that a crime
defined and penalized under this Act has been committed by
a person pursuant to an order of a government or a superior,
whether military or civilian, shall not relieve that person of
criminal responsibility unless all of the following elements
occur:
(a) The person was under a legal obligation to
obey orders of the government or the superior in
question;
(b) The person did not know that the order was
unlawful; and
(c) The order was not manifestly unlawful.
For the purposes of this section, orders to commit genocide
or other crimes against humanity are manifestly unlawful.
CHAPTER VI
Protection of Victims and Witnesses
Section 13. Protection of Victims and Witnesses. - In
addition to existing provisions in Philippine law for the
protection of victims and witnesses, the following measures
shall be undertaken:
(a) The Philippine court shall take appropriate
measures to protect the safety, physical and

physiological well-being, dignity and privacy of

victims and witnesses. In so doing, the court shall
have regard of all relevant factors, including age,
gender and health, and the nature of the crime, in
particular, but not limited to, where the crime
involves sexual or gender violence or violence
against children. The prosecutor shall take such
measures particularly during the investigation and
prosecution of such crimes. These measures shall
not be prejudicial to or inconsistent with the rights
of the accused and to a fair and impartial trial;
(b) As an exception to the general principle of
public hearings, the court may, to protect the
victims and witnesses or an accused, conduct any
part of the proceedings in camera or allow the
presentation of evidence by electronic or other
special means. In particular, such measures shall
be implemented in the case of the victim of sexual
violence or a child who is a victim or is a witness,
unless otherwise ordered by the court, having
regard to all the circumstances, particularly the
views of the victim or witness;
(c) Where the personal interests of the victims are
affected, the court shall permit their views and
concerns to be presented and considered at
stages of the proceedings determined to be
appropriate by the court in manner which is not
prejudicial to or inconsistent with the rights of the
accused and a fair and impartial trial. Such views
and concerns may be presented by the legal
representatives of the victims where the court
considers it appropriate in accordance with the
established rules of procedure and evidence; and
(d) Where the disclosure of evidence or
information pursuant to this Act may lead to the
grave endangerment of the security of a witness
for his/her family, the prosecution may, for the
purposes of any proceedings conducted prior to
the commencement of the trial, withhold such
evidence or information and instead submit a
summary thereof. Such measures shall be
exercised in a manner which is not prejudicial to or
inconsistent with the rights of the accused and to a
fair and impartial trial.
Section 14. Reparations to Victims. - In addition to existing
provisions in Philippine law and procedural rules for
reparations to victims, the following measures shall be
undertaken:
(a) The court shall follow the principles relating to
the reparations to, or in respect of,
victims,including restitution, compensation and
rehabilitation. On this basis, in its decision, the
court may, wither upon request or on its own
motion in exceptional circumstances, determine

the scope and extent of any damage, loss and

injury to, or in respect of, victims and state the
principles on which it is acting;1avvphi1
(b) The court may make an order directly against a
convicted person specifying appropriate
reparations to, or in respect of, victims, including
restitution, compensation and rehabilitation; and
(c) Before making an order under this section, the
court may invite and shall take account of
representations from or on behalf of the convicted
person, victims or other interested persons.
Nothing in this section shall be interpreted as prejudicing the
rights of victims under national or international law.
CHAPTER VII
Applicability of International Law and Other Laws
Section 15. Applicability of International Law.- In the
application and interpretation of this Act, Philippine courts
shall be guided by the following sources:
(a) The 1948 Genocide Convention;
(b) The 1949 Genava Conventions I-IV, their 1977
Additional Protocols I and II and their 2005
Additional Protocol III;
(c) The 1954 Hague Convention for the Protection
of Cultural Property in the Event of Armed Conflict,
its First Protocol and its 1999 Second Protocol;
(d) The 1989 Convention on the Rights of the
Child and its 2000 Optional Protocol on the
Involvement of Children in Armed Conflict;
(e) The rules and principles of customary
international law;
(f) The judicial decisions of international courts and
tribunals;
(g) Relevant and applicable international human
rights instruments;
(h) Other relevant international treaties and
conventions ratified or acceded to by the Republic
of the Philippines; and
(i) Teachings of the most highly qualified publicists
and authoritative commentaries on the foregoing
sources as subsidiary means for the determination
of rules of international law.

Section 16. Suppletory Application of the Revised Penal

Code and Other General or Special Laws. - The provisions
of the Revised Penal Code and other general or special laws
shall have a suppletory application to the provisions of this
Act.
CHAPTER VII
JURISDICTION
Section 17. Jurisdiction.- The State shall exercise
jurisdiction over persons, whether military or civilian,
suspected or accused of a crime defined and penalized in
this Act, regardless of where the crime is committed,
provided, any one of the following conditions is met:
(a) The accused is a Filipino citizen;
(b) The accused, regardless of citizenship or
residence, is present in the Philippines; or
(c) The accused has committed the said crime
against a Filipino citizen.
In the interest of justice, the relevant Philippine authorities
may dispense with the investigation or prosecution of a
crime punishable under this Act if another court or
international tribunal is already conducting the investigation
or undertaking the prosecution of such crime. Instead, the
authorities may surrender or extradite suspected or accused
persons in the Philippines to the appropriate international
court, if any, or to another State pursuant to the applicable
extradition laws and treaties.
No criminal proceedings shall be initiated against foreign
nationals suspected or accused of having committed the
crimes defined and penalized in this Act if they have been
tried by a competent court outside the Philippines in respect
of the same offense and acquitted, or having been
convicted, already served their sentence.
Section 18. Philippine Court, Prosecutors and
Investigators. - The Regional Trial Court of the Philippines
shall have original and exclusive jurisdiction over the crimes
punishable under this Act. Their judgments may be appealed
or elevated to the Court of Appeals and to the Supreme
Court as provided by law.
The Supreme Court shall designate special courts to try
cases involving crimes punishable under this Act. For these
cases, the Commission on Human Rights, the Department of
Justice, the Philippine National Police or other concerned
law enforcement agencies shall designate prosecutors or
investigators as the case may be.
The State shall ensure that judges, prosecutors and
investigators, especially those designated for purposes of
this Act, receive effective training in human rights,

International Humanitarian Law and International Criminal

Law.
CHAPTER IX
FINAL PROVISIONS
Section 19. Separability Clause. - If, for any reason or
reasons, any part or provision of this Statute shall be held to
be unconstitutional or invalid, other parts or provisions
hereof which are not affected thereby shall continue to be in
full force and effect.
Section 20. Repealing Clause. - All laws, presidential
decrees and issuances, executive orders, rules and
regulations or parts thereof inconsistent with the provisions
of this Statute are hereby repealed or modified accordingly.

derivatives based thereon, valuable

objects, cash substitutes and other
similar monetary instruments or property
supervised or regulated by the
Securities and Exchange Commission
(SEC);
"(4) jewelry dealers in precious metals,
who, as a business, trade in precious
metals, for transactions in excess of
One million pesos (P1,000,000.00);
"(5) jewelry dealers in precious stones,
who, as a business, trade in precious
stones, for transactions in excess of
One million pesos (P1,000,000.00);

Be it enacted by the Senate and House of Representatives

of the Philippines in Congress assembled:

"(6) company service providers which,

as a business, provide any of the
following services to third parties: (i)
acting as a formation agent of juridical
persons; (ii) acting as (or arranging for
another person to act as) a director or
corporate secretary of a company, a
partner of a partnership, or a similar
position in relation to other juridical
persons; (iii) providing a registered
office, business address or
accommodation, correspondence or
administrative address for a company, a
partnership or any other legal person or
arrangement; and (iv) acting as (or
arranging for another person to act as) a
nominee shareholder for another
person; and

Section 1. Section 3(a) of Republic Act No. 9160, as

amended, is hereby amended to read as follows:

"(7) persons who provide any of the

following services:

Section 21. Effectivity. - This Act shall take effect fifteen (15)
days after its complete publication in the Official Gazette or
in two (2) newspapers general circulation.
REPUBLIC ACT NO. 10365
AN ACT FURTHER STRENGTHENING THE ANTI-MONEY
LAUNDERING LAW, AMENDING FOR THE
PURPOSE REPUBLIC ACT NO. 9160, OTHERWISE
KNOWN AS THE "ANTI-MONEY LAUNDERING ACT OF
2001, AS AMENDED

"(a) Covered persons, natural or juridical, refer to:

"(1) banks, non-banks, quasi-banks,
trust entities, foreign exchange dealers,
pawnshops, money changers,
remittance and transfer companies and
other similar entities and all other
persons and their subsidiaries and
affiliates supervised or regulated by the
Bangko Sentral ng Pilipinas (BSP);
"(2) insurance companies, pre-need
companies and all other persons
supervised or regulated by the
Insurance Commission (IC);
"(3) (i) securities dealers, brokers,
salesmen, investment houses and other
similar persons managing securities or
rendering services as investment agent,
advisor, or consultant, (ii) mutual funds,
close-end investment companies,
common trust funds, and other similar
persons, and (iii) other entities
administering or otherwise dealing in
currency, commodities or financial

(i) managing of client money,

securities or other assets;
(ii) management of bank,
savings or securities
accounts;
(iii) organization of
contributions for the creation,
operation or management of
companies; and
(iv) creation, operation or
management of juridical
persons or arrangements, and
buying and selling business
entities.
"Notwithstanding the
foregoing, the term covered
persons shall exclude lawyers
and accountants acting as
independent legal
professionals in relation to
information concerning their
clients or where disclosure of

information would
compromise client
confidences or the attorneyclient
relationship: Provided, That
these lawyers and
accountants are authorized to
practice in the Philippines and
shall continue to be subject to
the provisions of their
respective codes of conduct
and/or professional
responsibility or any of its
amendments."
Section 2. Section 3(i) of the same Act is hereby amended
to read as follows:
"(i) Unlawful activity refers to any act or omission
or series or combination thereof involving or
having direct relation to the following:
"(1) Kidnapping for ransom under Article
267 of Act No. 3815, otherwise known
as the Revised Penal Code, as
amended;
"(2) Sections 4, 5, 6, 8, 9, 10, 11, 12, 13,
14, 15 and 16 of Republic Act No. 9165,
otherwise known as the Comprehensive
Dangerous Drugs Act of 2002;
"(3) Section 3 paragraphs B, C, E, G, H
and I of Republic Act No. 3019, as
amended, otherwise known as the AntiGraft and Corrupt Practices Act;
"(4) Plunder under Republic Act No.
7080, as amended;
"(5) Robbery and extortion under
Articles 294, 295, 296, 299, 300, 301
and 302 of the Revised Penal Code, as
amended;
"(6) Jueteng and Masiao punished as
illegal gambling under Presidential
Decree No. 1602;
"(7) Piracy on the high seas under the
Revised Penal Code, as amended and
Presidential Decree No. 532;
"(8) Qualified theft under Article 310 of
the Revised Penal Code, as amended;
"(9) Swindling under Article 315 and
Other Forms of Swindling under Article
316 of the Revised Penal Code, as
amended;
"(10) Smuggling under Republic Act
Nos. 455 and 1937;

"(11) Violations of Republic Act No.

8792, otherwise known as the Electronic
Commerce Act of 2000;
"(12) Hijacking and other violations
under Republic Act No. 6235;
destructive arson and murder, as
defined under the Revised Penal Code,
as amended;
"(13) Terrorism and conspiracy to
commit terrorism as defined and
penalized under Sections 3 and 4 of
Republic Act No. 9372;
"(14) Financing of terrorism under
Section 4 and offenses punishable
under Sections 5, 6, 7 and 8 of Republic
Act No. 10168, otherwise known as the
Terrorism Financing Prevention and
Suppression Act of 2012:
"(15) Bribery under Articles 210, 211 and
211-A of the Revised Penal Code, as
amended, and Corruption of Public
Officers under Article 212 of the Revised
Penal Code, as amended;
"(16) Frauds and Illegal Exactions and
Transactions under Articles 213, 214,
215 and 216 of the Revised Penal
Code, as amended;
"(17) Malversation of Public Funds and
Property under Articles 217 and 222 of
the Revised Penal Code, as amended;
"(18) Forgeries and Counterfeiting under
Articles 163, 166, 167, 168, 169 and
176 of the Revised Penal Code, as
amended;
"(19) Violations of Sections 4 to 6 of
Republic Act No. 9208, otherwise known
as the Anti-Trafficking in Persons Act of
2003;
"(20) Violations of Sections 78 to 79 of
Chapter IV, of Presidential Decree No.
705, otherwise known as the Revised
Forestry Code of the Philippines, as
amended;
"(21) Violations of Sections 86 to 106 of
Chapter VI, of Republic Act No. 8550,
otherwise known as the Philippine
Fisheries Code of 1998;
"(22) Violations of Sections 101 to 107,
and 110 of Republic Act No. 7942,
otherwise known as the Philippine
Mining Act of 1995;

"(23) Violations of Section 27(c), (e), (f),

(g) and (i), of Republic Act No. 9147,
otherwise known as the Wildlife
Resources Conservation and Protection
Act;
"(24) Violation of Section 7(b) of
Republic Act No. 9072, otherwise known
as the National Caves and Cave
Resources Management Protection Act;
"(25) Violation of Republic Act No. 6539,
otherwise known as the Anti-Carnapping
Act of 2002, as amended;
"(26) Violations of Sections 1, 3 and 5 of
Presidential Decree No. 1866, as
amended, otherwise known as the
decree Codifying the Laws on
Illegal/Unlawful Possession,
Manufacture, Dealing In, Acquisition or
Disposition of Firearms, Ammunition or
Explosives;
"(27) Violation of Presidential Decree
No. 1612, otherwise known as the AntiFencing Law;
"(28) Violation of Section 6 of Republic
Act No. 8042, otherwise known as the
Migrant Workers and Overseas Filipinos
Act of 1995, as amended by Republic
Act No. 10022;
"(29) Violation of Republic Act No. 8293,
otherwise known as the Intellectual
Property Code of the Philippines;
"(30) Violation of Section 4 of Republic
Act No. 9995, otherwise known as the
Anti-Photo and Video Voyeurism Act of
2009;
"(31) Violation of Section 4 of Republic
Act No. 9775, otherwise known as the
Anti-Child Pornography Act of 2009;
"(32) Violations of Sections 5, 7, 8, 9,
10(c), (d) and (e), 11, 12 and 14 of
Republic Act No. 7610, otherwise known
as the Special Protection of Children
Against Abuse, Exploitation and
Discrimination;
"(33) Fraudulent practices and other
violations under Republic Act No. 8799,
otherwise known as the Securities
Regulation Code of 2000; and
"(34) Felonies or offenses of a similar
nature that are punishable under the
penal laws of other countries."

Section 3. Section 3 of the same Act shall have new

paragraphs (j) and (k).
"(j) Precious metals shall mean gold, silver,
platinum, palladium, rhodium, ruthenium, iridium
and osmium. These include alloys of precious
metals, solders and plating chemicals such as
rhodium and palladium plating solutions and
potassium gold cyanide and potassium silver
cyanide and silver cyanide in salt solution.
"(k) Precious stones shall mean diamond, ruby,
emerald, sapphire, opal, amethyst, beryl, topaz,
and garnet that are used in jewelry making,
including those formerly classified as semiprecious stones."
Section 4. Section 4 of the same Act is hereby amended to
read as follows:
"SEC. 4. Money Laundering Offense. Money
laundering is committed by any person who,
knowing that any monetary instrument or property
represents, involves, or relates to the proceeds of
any unlawful activity:
"(a) transacts said monetary instrument
or property;
"(b) converts, transfers, disposes of,
moves, acquires, possesses or uses
said monetary instrument or property;
"(c) conceals or disguises the true
nature, source, location, disposition,
movement or ownership of or rights with
respect to said monetary instrument or
property;
"(d) attempts or conspires to commit
money laundering offenses referred to in
paragraphs (a), (b) or (c);
"(e) aids, abets, assists in or counsels
the commission of the money laundering
offenses referred to in paragraphs (a),
(b) or (c) above; and
"(f) performs or fails to perform any act
as a result of which he facilitates the
offense of money laundering referred to
in paragraphs (a), (b) or (c) above.
"Money laundering is also committed by any
covered person who, knowing that a covered or
suspicious transaction is required under this Act to
be reported to the Anti-Money Laundering Council
(AMLC), fails to do so."
Section 5. Section 6(a) of the same Act is hereby amended
to read as follows:
"SEC. 6. Prosecution of Money Laundering.

"(a) Any person may be charged with

and convicted of both the offense of
money laundering and the unlawful
activity as herein defined.
"(b) The prosecution of any offense or
violation under this Act shall proceed
independently of any proceeding
relating to the unlawful activity."

"Lawyers and accountants acting as independent

legal professionals are not required to report
covered and suspicious transactions if the relevant
information was obtained in circumstances where
they are subject to professional secrecy or legal
professional privilege.
"x x x
"x x x

Section 6. Section 7 of the same Act is hereby amended to

read as follows:
"SEC. 7. Creation of Anti-Money Laundering
Council (AMLC). The Anti-Money Laundering
Council is hereby created and shall be composed
of the Governor of the Bangko Sentral ng Pilipinas
as Chairman, the Commissioner of the Insurance
Commission and the Chairman of the Securities
and Exchange Commission, as members. The
AMLC shall act unanimously in the discharge of its
functions as defined hereunder:
"x x x
"(6) to apply before the Court of Appeals, ex
parte, for the freezing of any monetary instrument
or property alleged to be laundered, proceeds
from, or instrumentalities used in or intended for
use in any unlawful activity as defined in Section
3(i) hereof;
"x x x
"(12) to require the Land Registration Authority
and all its Registries of Deeds to submit to the
AMLC, reports on all real estate transactions
involving an amount in excess of Five hundred
thousand pesos (P500,000.00) within fifteen (15)
days from the date of registration of the
transaction, in a form to be prescribed by the
AMLC. The AMLC may also require the Land
Registration Authority and all its Registries of
Deeds to submit copies of relevant documents of
all real estate transactions."
Section 7. Section 9(c), paragraphs 1 and 4 of the same Act
are hereby amended to read as follows:
"SEC. 9. Prevention of Money Laundering;
Customer Identification Requirements and Record
Keeping.
"(a) x x x
"(b) x x x
"(c) Reporting of Covered and Suspicious
Transactions. Covered persons shall report to
the AMLC all covered transactions and suspicious
transactions within five (5) working days from
occurrence thereof, unless the AMLC prescribes a
different period not exceeding fifteen (15) working
days.

"When reporting covered or suspicious

transactions to the AMLC, covered persons and
their officers and employees are prohibited from
communicating, directly or indirectly, in any
manner or by any means, to any person or entity,
the media, the fact that a covered or suspicious
transaction has been reported or is about to be
reported, the contents of the report, or any other
information in relation thereto. Neither may such
reporting be published or aired in any manner or
form by the mass media", electronic mail, or other
similar devices. In case of violation thereof, the
concerned officer and employee of the covered
person and media shall be held criminally liable."
Section 8. Section 10 of the same Act, as amended by
Republic Act No. 10167, is hereby amended to read as
follows:
"SEC. 10. Freezing of Monetary Instrument or
Property. Upon a verified ex parte petition by the
AMLC and after determination that probable cause
exists that any monetary instrument or property is
in any way related to an unlawful activity as
defined in Section 3(i) hereof, the Court of Appeals
may issue a freeze order which shall be effective
immediately, and which shall not exceed six (6)
months depending upon the circumstances of the
case: Provided, That if there is no case filed
against a person whose account has been frozen
within the period determined by the court, the
freeze order shall be deemed ipso
facto lifted:Provided, further, That this new rule
shall not apply to pending cases in the courts. In
any case, the court should act on the petition to
freeze within twenty-four (24) hours from filing of
the petition. If the application is filed a day before
a nonworking day, the computation of the twentyfour (24)-hour period shall exclude the nonworking
days.
"A person whose account has been frozen may file
a motion to lift the freeze order and the court must
resolve this motion before the expiration of the
freeze order.
"No court shall issue a temporary restraining order
or a writ of injunction against any freeze order,
except the Supreme Court."
Section 9. Section 12 of the same Act is hereby amended to
read as follows:

"(a) Civil Forfeiture. Upon determination by the

AMLC that probable cause exists that any
monetary instrument or property is in any way
related to an unlawful activity as defined in Section
3(i) or a money laundering offense under Section
4 hereof, the AMLC shall file with the appropriate
court through the Office of the Solicitor General, a
verified ex parte petition for forfeiture, and the
Rules of Court on Civil Forfeiture shall apply.
"The forfeiture shall include those other monetary
instrument or property having an equivalent value
to that of the monetary instrument or property
found to be related in any way to an unlawful
activity or a money laundering offense, when with
due diligence, the former cannot be located, or it
has been substantially altered, destroyed,
diminished in value or otherwise rendered
worthless by any act or omission, or it has been
concealed, removed, converted, or otherwise
transferred, or it is located outside the Philippines
or has been placed or brought outside the
jurisdiction of the court, or it has been commingled
with other monetary instrument or property
belonging to either the offender himself or a third
person or entity, thereby rendering the same
difficult to identify or be segregated for purposes of
forfeiture.
"(b) Claim on Forfeited Assets. Where the court
has issued an order of forfeiture of the monetary
instrument or property in a criminal prosecution for
any money laundering offense defined under
Section 4 of this Act, the offender or any other
person claiming an interest therein may apply, by
verified petition, for a declaration that the same
legitimately belongs to him and for segregation or
exclusion of the monetary instrument or property
corresponding thereto. The verified petition shall
be filed with the court which rendered the
judgment of forfeiture, within fifteen (15) days from
the date of the finality of the order of forfeiture, in
default of which the said order shall become final
and executor. This provision shall apply in both
civil and criminal forfeiture.
"(c) Payment in Lieu of Forfeiture. Where the
court has issued an order of forfeiture of the
monetary instrument or property subject of a
money laundering offense defined under Section
4, and said order cannot be enforced because any
particular monetary instrument or property cannot,
with due diligence, be located, or it has been
substantially altered, destroyed, diminished in
value or otherwise rendered worthless by any act
or omission, directly or indirectly, attributable to the
offender, or it has been concealed, removed,
converted, or otherwise transferred to prevent the
same from being found or to avoid forfeiture
thereof, or it is located outside the Philippines or
has been placed or brought outside the jurisdiction
of the court, or it has been commingled with other
monetary instruments or property belonging to
either the offender himself or a third person or
entity, thereby rendering the same difficult to
identify or be segregated for purposes of forfeiture,
the court may, instead of enforcing the order of
forfeiture of the monetary instrument or property or

part thereof or interest therein, accordingly order

the convicted offender to pay an amount equal to
the value of said monetary instrument or property.
This provision shall apply in both civil and criminal
forfeiture."
Section 10. Section 14 of the same Act, as amended, is
hereby further amended to read as follows:
"SEC. 14. Penal Provisions. (a) Penalties for the
Crime of Money Laundering. The penalty of
imprisonment ranging from seven (7) to fourteen
(14) years and a fine of not less than Three million
Philippine pesos (Php3,000,000.00) but not more
than twice the value of the monetary instrument or
property involved in the offense, shall be imposed
upon a person convicted under Section 4(a), (b),
(c) and (d) of this Act.
"The penalty of imprisonment from four (4) to
seven (7) years and a fine of not less than One
million five hundred thousand Philippine pesos
(Php1,500,000.00) but not more than Three million
Philippine pesos (Php3,000,000.00), shall be
imposed upon a person convicted under Section
4(e) and (f) of this Act.
"The penalty of imprisonment from six (6) months
to four (4) years or a fine of not less than One
hundred thousand Philippine pesos
(Php100,000.00) but not more than Five hundred
thousand Philippine pesos (Php500,000.00), or
both, shall be imposed on a person convicted
under the last paragraph of Section 4 of this Act.
"(b) x x x
"(c) x x x
"(d) x x x
"(e) The penalty of imprisonment ranging from four
(4) to seven (7) years and a fine corresponding to
not more than two hundred percent (200%) of the
value of the monetary instrument or property
laundered shall be imposed upon the covered
person, its directors, officers or pesonnel who
knowingly participated in the commission of the
crime of money laundering.
"(f) Imposition of Administrative Sanctions. The
imposition of the administrative sanctions shall be
without prejudice to the filing of criminal charges
against the persons responsible for the violation.
"After due notice and hearing, the AMLC shall, at
its discretion, impose sanctions, including
monetary penalties, warning or reprimand, upon
any covered person, its directors, officers,
employees or any other person for the violation of
this Act, its implementing rules and regulations, or
for failure or refusal to comply with AMLC orders,
resolutions and other issuances. Such monetary
penalties shall be in amounts as may be
determined by the AMLC to be appropriate, which

shall not be more than Five hundred thousand

Philippine pesos (P500,000.00) per
violation.1wphi1
"The AMLC may promulgate rules on fines and
penalties taking into consideration the attendant
circumstances, such as the nature and gravity of
the violation or irregularity.
"(g) The provision of this law shall not be
construed or implemented in a manner that will
discriminate against certain customer types, such
as politically-exposed persons, as well as their
relatives, or against a certain religion, race or
ethnic origin, or such other attributes or profiles
when used as the only basis to deny these
persons access to the services provided by the
covered persons. Whenever a bank, or quasibank, financial institution or whenever any person
or entity commits said discriminatory act, the
person or persons responsible for such violation
shall be subject to sanctions as may be deemed
appropriate by their respective regulators."
Section 11. New sections are hereby inserted after Section
19 of the same Act, as amended, to read as follows:
"SEC. 20. Non-intervention in the Bureau of
Internal Revenue (BIR) Operations. Nothing
contained in this Act nor in related antecedent
laws or existing agreements shall be construed to

allow the AMLC to participate in any manner in the

operations of the BIR."
"SEC. 21. The authority to inquire into or examine
the main account and the related accounts shall
comply with the requirements of Article III,
Sections 2 and 3 of the 1987 Constitution, which
are hereby incorporated by reference. Likewise,
the constitutional injunction against ex post
facto laws and bills of attainder shall be respected
in the implementation of this Act."
Section 12. The succeeding sections are hereby
renumbered accordingly.
Section 13. Separability Clause. If any provision of this Act
is declared unconstitutional, the same shall not affect the
validity and effectivity of the other provisions hereof.
Section 14. Repealing Clause. All laws, decrees, orders,
and issuances or portions thereof, which are inconsistent
with the provisions of this Act, are hereby repealed,
amended or modified accordingly.
Section 15. Effectivity. This Act shall take effect fifteen (15)
days following its publication in at least two (2) national
newspapers of general circulation.