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Republic Act No. 9184

“An Act providing for the
Modernization, Standardization
and Regulation of the
Procurement Activities of the
Government and for other
Purposes”
 GPPB-RESOLUTION NO. 03-2009
dated 22 July 2009

APPROVING THE REVISED

IMPLEMENTING RULES AND
REGULATIONS OF REPUBLIC ACT NO. 9184
Who are involve in
Government
Procurements?
1. Head of Procuring Entity (HOPE)
2. Bids and Awards Committee (BAC)
3. BAC Secretariat
4. Observers
5. Technical Working Group (TWG)
6. End Users/PMOs
7. Bidders
Head of Procuring Entity
(HOPE)
• Functions of the HOPE
The hope shall designate at
least five (5) but not more
than seven (7) members to
the BAC of unquestionable
integrity and procurement
proficiency
• Functions of the HOPE
HOPE may designate alternate
members to the BAC, who shall have
the same qualifications as their
principals.
The alternate members shall have the
same term as their principals.
The accountability of the principal and
the alternate member shall be limited to
their respective acts and decisions.
• Functions of the HOPE

• HOPE has the discretion to create

a new office or to merely
designate an existing organic
office to be the BAC Secretariat
• Functions of the HOPE
Approve the Annual Procurement
Plan (APP)
Resolve “Protest” within 7 days
upon receipt thereof.
Declare a Failure of Bidding when
circumstances warrant.
Ensure compliance with R.A.9184
• Functions of the HOPE
The HOPE or his duly authorized
representative should approve or
disapprove the recommendation of
award within a period not exceeding
seven (7) calendar days from the
determination and declaration by
the BAC of the LCRB/SCRB.
• When may the HOPE exercise his right to
reject bids, declare a failure of bidding, or
not award the contract?
 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 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;
• When may the HOPE exercise his
right to reject bids, declare a failure
of bidding, or not award the
contract?
If the BAC is found to
have failed in following
the prescribed bidding
procedures
• When may the HOPE exercise his right to
reject bids, declare a failure of bidding,
or not award the contract?

For any justifiable and

reasonable ground where
the award of the contract
will not redound to the
benefit of the government
• When may the HOPE exercise his right to reject bids,
declare a failure of bidding, or not award the contract?
 Contract will not redound to the benefit of
the government:
 If the physical and economic
conditions have significantly changed
so as to render the project no longer
economically, financially or technically
feasible as determined by the HOPE;
 If the project is no longer necessary as
determined by the HOPE;
 If the source of funds for the project
has been withheld or reduced through
no fault of the Procuring Entity
Bids and Awards Committee
(BAC)
Who are disqualified to become BAC member?
Head of procuring entity (HOPE);
Official who approves procurement
transactions;
Chief Accountant / Head of the Accounting
Department & his/her staff, unless the
Accounting Department is the end-user
unit, in which case the Chief Accountant,
Head of the Accounting Department or
his/her staff may be designated as an end-
user member.
• Functions of the BAC
(a)advertise and/or post the invitation to bid/request for
expressions of interest;
(b)conduct pre-procurement and pre-bid conferences;
(c)determine the eligibility of prospective bidders;
(d)receive bids;
(e)conduct the evaluation of bids;
(f)undertake post-qualification proceedings;
(g)resolve motions for reconsideration;
(h)recommend award of contracts to the HOPE
(i)recommend the imposition of sanctions in accordance
with Rule XXIII;
(j)recommend to the HOPE the use of AMPs; and
(k)perform such other related functions as may be
necessary,
• Other Functions of the BAC (cont.)

• The BAC shall be responsible for ensuring that

the Procuring Entity abides by the standards
set forth by R.A. 9184 and the IRR, and
• 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.
Other Functions of the BAC (cont.)
• The Chairman or, in his absence,
the Vice-Chairman, shall preside
at all meetings of the BAC.
• The Chairman or, in his absence,
the Vice-Chairman, shall vote
only in case of a tie.
Other Functions of the BAC (cont.)
• BAC shall respond to request for
clarification by issuing a
Supplemental/Bid Bulletin, duly signed
by the BAC chairman, to be made
available to all those who have properly
secured the Bidding Documents, at
least 7 cd before the deadline for the
submission and receipt of bids.
(section 22.5.1Revised IRR)
• Annual Procurement Plan:
 The APP is prepared by the BAC through the
BAC Secretariat upon submission by the
PMOs and end-user units of their respective
PPMPs and finalized after the ABM has been
approved by the DBM.
 It reflects the entirety of the
procurement activities that will be
undertaken by the Procuring Entity
within the calendar year.
• Factors to consider in the preparation of APP:

The approved APP shall

be the basis for the Procuring
Entity’s procurement, and only
those projects / procurement
included therein shall be
undertaken.
• 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 (APP).
A procurement project shall be
considered crucial to the
efficient discharge of
governmental functions if it is
required for the day-to-day
operations or is in pursuit of
the principal mandate of the
curing entity concerned.
• The APP
–shall bear the approval of the
HOPE or second-ranking official
designated by the Head of the
Procuring Entity to act on his
behalf, and
–must be consistent with its duly
approved yearly budget.
• The APP
• shall include provisions for
foreseeable emergencies
based on historical records.
(Sec 7,par1, IRR-2009)
 “No procurement
shall be undertaken
unless it is in accordance
with the approved APP
of the procuring entity.”
BAC SEcretariat
 BAC Secretariat the
main support unit of BAC

a. Provide administrative f. Advertise and/or post bidding

support to BAC. opportunities, including Bidding
b. Organize and make all Documents, and notices of
necessary arrangement for awards.
the BAC meeting. g. Monitor procurement activities
and milestones for proper
c. Prepare minutes of BAC reporting to relevant
meeting.
agencies when required.
d. Take custody of
procurement documents h. Consolidate PPMPs from
various units of the procuring
e. Manage the sale and entity.
distribution of Bidding i. Be the Central channel of
Documents to interested communication for the BAC.
bidders
Manner of Creation of BAC Secretariat

An existing organic office

within the procuring entity
may also be designated
to serve as Secretariat.
Other functions of BAC Secretariat

Monitor the status of the procurements

routed for approval, and cause the
correction of any formal deficiencies in
the said procurement documents to
facilitate action on the part of the
approving authorities.
 Other functions of BAC Secretariat
• It shall create, maintain and update the
registry of suppliers, contractors, and
consultants.
• It shall create, maintain and update a price
monitoring list, if one is maintained by the
Procuring Entity.
• It shall transact with the PhilGEPS and PS-
DBM in behalf of the Procuring Entity.
Additional functions of BAC Secretariat
 Responsible for the consolidation of
PPMP to APP.
 Updating of the PPMP and the
consolidation thereof to APP every six
(6) months or as OFTEN as required by
the Head of the Agency.
 Project Management Office (PMO) / End-
User - responsible for preparation and
update of PPMP.
 Caveat!

Implementation of any
project not included in the
APP shall not be allowed.
Updates and revisions in
the APP shall be submitted
to the GPPB for
information.
Technical Working Group
(TWG)
 Technical Working Group (TWG)
 Created by the BAC from a pool of
technical, financial and/or legal
experts.
 In highly meritorious cases, the
Procuring Entity may also engage the
services of consultants in accordance
with the IRR-A, subject to the
availability of funds
Functions of Technical Working Group
a. Assist the BAC in the preparation of the
bidding documents.
b. Assist the BAC in the conduct of eligibility
screening of prospective bidders, and in the
short listing of prospective bidders in case of
biddings for consulting services.
c. Assist the BAC in the evaluation of bids and
prepare the accompanying reports for the
BAC’s consideration and approval.
Functions of Technical Working Group
d. Assist the BAC in the conduct of post-
qualification activities and prepare the post-
qualification summary report for the BAC’s
approval.
e. Assist the BAC and BAC Secretariat in
preparing the resolution recommending award.
f. Provide utmost priority to BAC assignments
over all other duties and responsibilities,
until the requirements for the procurement at hand
are completed (Jury Duty).
Observers
 OBSERVERS
In addition to the representative
of COA, the BAC SHALL INVITE
in all stages of the procurement
process, TWO (2) OBSERVERS
to sit and monitor the
Procurement Proceedings”
 One (1) Observer
Duly registered
from a Duly recognized with the Securities
private group in a sector and Exchange
Commission (SEC)
or discipline relevant to or the Cooperative
the procurement at Development
Authority (CDA),
hand

one (1) Observer

from a Non-
Government
Organization (NGO)
 Qualifications of Observers:

a. Knowledge, experience or
expertise in procurement or in the
subject matter of the contract to be
bid;
b. Have no direct or indirect interest
in the contract to be bid out;
c. Comply with other criteria
determined by the BAC.
At least one (1) Observer shall come from a duly
recognized private group in a sector or discipline
relevant to the procurement at hand, for example:
For infrastructure projects, national associations
of constructors duly recognized by the
Construction Industry Authority of the Philippines
(CIAP), such as, but not limited to the following:
(1) Philippine Constructors Association,
Inc.;
(2) National Constructors Association of the
Philippines, Inc.; and
(3) Philippine Institute of Civil Engineers
(PICE).
At least one (1) Observer shall come from a duly
recognized private group in a sector or discipline
relevant to the procurement at hand, for example:

For goods, a specific

relevant chamber-member
of the Philippine Chamber
of Commerce and Industry
(PCCI).
At least one (1) Observer shall come from a duly
recognized private group in a sector or discipline
relevant to the procurement at hand, for example:

For consulting services, a project-related

professional organization accredited or duly
recognized by the Professional Regulation
Commission (PRC) or the Supreme Court
(SC), such as, but not limited to:
(1) PICE;
(2) Philippine Institute of Certified Public
Accountants (PICPA); and
(3) Confederation of Filipino Consulting
Organizations;
• Notice should be sent at least 3
days before the stage of
Procurement
• Observers shall Prepare a report
Sign the abstract of bids
• Sign the post qualification summary
report
Additional Duties of the Observers:

Prepare a report either jointly or

separately indicating their
observations made on the
procurement activities conducted by
the BAC for submission to
the Head of the Procuring Entity,
copy furnished the BAC Chairman.
(Sec 13.4 Revised IRR)
Additional Duties of the Observers:

 To submit their report to the procuring

entity and furnish a copy to the GPPB
and Office of the Ombudsman/Resident
Ombudsman.

 If no report is submitted by the

observer, then it is understood that the
bidding activity conducted by
the BAC followed the correct procedure.
(Sec 13.4 Revised IRR)
Additional Duties of the Observers:

Observers shall be allowed access to the

following documents upon their request,
subject to signing of a confidentiality
agreement:
(a) minutes of BAC meetings;
(b) abstract of Bids;
(c) post-qualification summary report;
(d) APP and related PPMP;and
(e) opened proposals.
(Sec 13.5 Revised IRR)
PMOs/ End-Users
• Functions of the PMOs or end-users
 Provide the technical specifications of
the goods it will procure
 Conduct a market survey that will include a
study of the available products or services,
industry developments
 Recommend the ABC
 Provide technical advice
 Assist in the preparation of bidding documents
 Attend all stages of the procurement
Function of the PMOs/ End Users

The end users shall always

be represented in the BAC
Determine the period of
contract implementation
during the procurement
planning stage, and include
it in the PPMP.
• Functions of the PMOs or end-users
 determines the existence of condition/s
that require an amendment to order.
 determines the existence of a force
majeure or fortuitous event that will be
the basis for the issuance of a
suspension order.
 either approve or disapprove the
request for extension.
• Functions of the PMO or end-users

 Ensure that the Chief Accountant of the

procuring entity issues a CAF for the
project.
Only with a CAF can the contract be valid.
The Chief Accountant must also sign the
contract as a witness.
(Section 5, GPM)
Bidders
• Functions of the Bidders
All bidders shall submit a sworn affidavit
that it is not related by consanguinity or
affinity up to the third (3rd) civil degree
to the:
 HOPE
 Members of the BAC,
 the TWG, and
 the BAC Secretariat,
 the head of the PMO or the end-
user unit, and
 the project consultants,
• Functions of the Bidders

 Bidders shall submit

their bids through their
duly authorized
representative using the
forms specified in the
Bidding Documents.
 Functions of the Bidders
• It shall be the responsibility of all those
who have properly secured the Bidding
Documents to inquire and secure
Supplemental/Bid Bulletins that may be
issued by the BAC.
• However, bidders who have submitted
bids before the issuance of the
Supplemental/Bid Bulletin must be
informed and allowed to modify or
withdraw their bids
• Rights of the Bidders

A bidder may modify its bid,

provided that this is done before the
deadline for the submission and
receipt of bids.
A bidder may, through a letter,
withdraw its bid before the deadline
for the receipt of
bids.
• We now know the functions of the following:

1. Head of Procuring Entity (HOPE)

2. Bids and Awards Committee (BAC)
3. BAC Secretariat
4. Technical Working Group
5. Observers
6. End Users
7. Bidders
 Definition of Goods and Services
Refer to all items, supplies, materials and general
support services, x x x which may be needed in the
transaction of 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 for such services.
 Definition of Goods and Services

The term “related” or “analogous

services” shall include, but not be
limited to, lease or purchase of office
space, media advertisements, health
maintenance services, and other
services essential to the operation of
the procuring entity.
 Definition of Goods and Services
It also refers to trucking, hauling, janitorial, security,
and related or analogous services (e.g. rental of
venues and facilities, catering services, attendance to
trainings and seminars, short term services not
considered as consulting services), as well as
procurement of materials and supplies provided by
the Procuring Entity for such services.
The term “related”
“ or “analogous services” shall
include, but not be limited to, lease or purchase of
office space, media advertisements, health
maintenance services, and other services essential to
the operation of the Procuring Entity. (OLD
DEFINITION)
Three (3) fold
Accountability of BAC et al

Administrative

Criminal
Civil
 Criminal Liability

- Imprisonment for
not less than SIX (6)
YEARS and ONE (1)
DAY, but not more
than FIFTEEN (15)
YEARS
Criminal Liability (cont.)
• ARTICLE 210- DIRECT BRIBERY
•   ARTICLE 211 - INDIRECT BRIBERY
• ARTICLE 217 - MALVERSATION OF
PUBLIC FUNDS OR PROPERTY
• ARTICLE 220 - ILLEGAL USE OF
PUBLIC FUNDS OR PROPERTY
Criminal Liability (cont.)
 Article 210. Direct Bribery
  Acts punished:

  1. Agreeing to perform, or
performing, in consideration of any
offer, promise, gift or present - an
act constituting a crime, in
connection with the performance of
his official duties;
Criminal Liability (cont.)
 Article 210. Direct Bribery
  Acts punished
  2. Accepting a gift in
consideration of the execution
of an act which does not
constitute a crime, in
connection with the
performance of his official duty;
Criminal Liability (cont.)
 Article 210. Direct Bribery
  Acts punished
3. Agreeing to refrain, or by
refraining, from doing something
which it is his official duty to do,
in consideration of gift or
promise.
 
Criminal Liability (cont.)
 Article 211. Indirect Bribery
• The public official does not undertake to
perform an act or abstain from doing an
official duty from what he received. Instead,
the official simply receives or accepts gifts or
presents delivered to him with no other reason
except his office or public position.
• This is always in the consummated stage.
There is no attempted much less frustrated
stage in indirect bribery.
Criminal Liability (cont.)
 Article 211. Indirect Bribery
• for indirect bribery to be committed,
the public officer must have performed
an act of appropriating of the gift for
himself, his family or employees. It is
the act of appropriating that signifies
acceptance. Merely delivering the gift
to the public officer does not bring
about the crime.
Criminal Liability (cont.)
 Article 213. Frauds against the
Public Treasury
Entering into an agreement with any
interested party or speculator or making
use of any other scheme, to defraud the
government, in dealing with any person
with regard to furnishing supplies, the
making of contracts, or the adjustment or
settlement of accounts relating to public
property or funds;
Criminal Liability (cont.)
 Article 213. Frauds against the Public Treasury
• This occurs usually in cases where a public
officer whose official duty is to procure supplies
for the government or enter into contract for
government transactions, connives with the
said supplier with the intention to defraud the
government.
• Also when certain supplies for the government
are purchased for the high price but its
quantity or quality is low.
Test case:
The BAC Secretariat “x” demanded
P1500.00 as price of bid docs
instead of P1000.00. He issued the
receipt at P1000.00 and explained to
Bidder that the P500 was for
documentary stamps. The BAC
Secretariat placed the entire
P1500.00 in the vault of the office.
When he needed money, he took
the P500.00 and spent it.
The following crimes were committed:

(a) Illegal exaction - for demanding a

different amount
(b) Estafa - for deceiving the Bidder; and
(c) Malversation - for getting the P500.00
from the vault.
 
Although the excess P500.00 was not
covered by the Official Receipt, it was
commingled with the other public funds in the
vault; hence, it became part of public funds
and subsequent extraction thereof constitutes
malversation.
Criminal Liability (cont.)
 Article 217. Malversation of Public
Funds or Property
• The crime of malversation
can be committed only by
an officer accountable for
the funds or property which
is appropriated.
 Article 217. Malversation of Public Funds or Property

• There was a long line of Bidders on the last day

of sale/issuance of Bid Docs. Employee A of
the municipality placed all his collections
inside his table and requested his employee B
to watch over his table while he goes to the
restroom. B took advantage of A’s absence
and took P5,000.00 out of the collections. A
returned and found his money short. What
crimes have been committed?
 Article 217. Malversation of Public Funds or Property

• A is guilty of malversation through

negligence because he did not
exercise due diligence in the
safekeeping of the funds when he did
not lock the drawer of his table.
• Insofar as B is concerned, the crime is
qualified theft.
 A public officer may be liable for
malversation even if he does not
use public property or funds under
his custody for his personal
benefit, but consents to the taking
thereof by another person, or,
through abandonment or
negligence, permitted such taking.
• In all cases, persons guilty of
malversation shall also suffer the
penalty of perpetual special
disqualification and a fine equal to
the amount of the funds
malversed or equal to the total
value of the property embezzled.
  Republic Act No. 7080 (Plunder)
• By receiving, directly or indirectly, any
commission, gift, share, percentage,
kickbacks or any other form of pecuniary
benefit from any person and/or entity in
connection with any government
contract or project by reason of the
office or position of the public officer;
• when the ill-gotten wealth amounts to a
total value of P50,000,000.00.
Additional Criminal Liability:
•   REPUBLIC ACT NO. 3019
(ANTI-GRAFT AND CORRUPT PRACTICES ACT)
Sec. 3:
• (b) Directly or indirectly requesting or receiving any
gift, present, share, percentage, or benefit, for
himself or for any other person, in connection with
any contract or transaction between the Government
and any other party, wherein the public officer in his
official capacity has to intervene under the law.
Grounds for Criminal Liability under RA 9184
- Public Official
a. Open any sealed bid or divulging its contents
before bid opening;
b. Delaying the procurement process without
justifiable cause;
c. Undue influence or pressure to a member of the
BAC to take an action that favors a particular
bidder;
d. Splitting of Contracts;
e. Abuse by the HOPE of his power to reject any
and all bids in order to favor a bidder who is
closely related to him
 What is “splitting of contract”?
• Splitting of contracts is the act of dividing or
breaking up government contracts into smaller
quantities and amounts.
• It also is the act of dividing contract
implementation into artificial phases or sub-
contracts.
• Both actions are for the purpose of evading or
circumventing the requirements of law and the
IRR-A of R.A. 9184, especially the necessity of
public bidding and the requirements for the
alternative methods of procurement. (IRR-A
Section 54.1)
 EXCERPTS OF COA CIRCULAR NO. 76-41

What is “Splitting”? – Splitting, in

its literal sense, means dividing or
breaking up into separate parts or
portions, or an act resulting in a
fissure, rapture, breach.
Within the sphere of government
procurement, splitting is
associated with requisitions,
purchase orders, deliveries and
payments.
 FORMS OF SPLITTING
UNDER COA CIRCULAR NO. 76-41
1) Splitting of Requisitions consist in the
non-consolidation of requisitions for one
or more items needed at or about the
same time by the requisitioner.
2) Splitting of Purchase Orders consists in
the issuance of two or more purchase
orders based on two or more requisitions
for the same or at about the same time by
different requisitioners; and
3) Splitting of Payments consists in making
two or more payments for one or more
items involving one purchase order.
• Grounds for Criminal Liability (cont.)
- Private Individual

a. Agreement between two (2) or more bidders

to submit different bids where one or more bid
is too high so that the project will be awarded
to the pre-arranged lowest bid;
b. When a bidder submits two (2) or more bids
through other entities to create the appearance
of a competition;
c. When two (2) or more bidders agree not to
submit bids or withdraw those already
submitted to secure advantage to any of them;
d. When bidders connive to employ scheme to
restrain rivalries or to stifle or suppress
competition to the prejudice of the public.
•Grounds for Imposition of Admin. Penalty
- Submission of eligibility requirements containing false info
and/or falsified document;
- Submission of bids that contain false info or falsified
documents or concealment thereof;
- Use of another name or allowing another bidder to use its
name;
- Withdrawal of bid, refusal to accept an award or enter into

a contract with government without justifiable cause;

- Refusal to post Performance Security;
- Termination of the contract due to its default;
- Refusal to make clarification or validation during post
qualification;
- Documented unsolicited attempt by a bidder to unduly
influence the outcome of the bidding;
- Other acts that tend to defeat the purpose of the bidding
 Administrative
1. Administrative Liability
- 1st offense - 1 yr. suspension
- 2nd offense - 2 yrs. Suspension
Disqualification
to participate in
any specific
bidding
- Decision must be in a form of
Blacklisting Order
2. Civil Liability

- A conviction shall carry with it

civil liability, in the form of:
1. Restitution for the damage
done; or
2. Forfeiture of unwarranted
benefit.
Problem areas in
Competitive Public
Bidding
COA vs. Linkworth

Rule:
“STICK TO THE TECHNICAL
SPECIFICATIONS ONCE BIDS ARE
OPENED”
Demosthenes P. AGAN,JR., et. al., vs. (PIATCO) Inc.,
(MIAA), and (DOTC)

Rule:
“DO NOT VARY THE TERMS AND
CONDITIONS OF THE CONTRACT
AFTER THE AWARD”
Demosthenes P. AGAN,JR., et. al., vs. (PIATCO) Inc., MIAA, & DOTC

PIATCO Contracts:
1. Concession agreement July 12, 1997
2. Amended and Restated Concession
Agreement (ARCA) November 26, 1998
3. 1st Supplement to ARCA- Aug. 27, 1999
4. 2nd Supplement to ARCA- Sept. 4, 2000
5. 3rd Supplement to ARCA- June 22, 2001
Demosthenes P. AGAN,JR., et. al., vs. (PIATCO) Inc., MIAA, & DOTC

“Any government action

which permits any substantial
variance between the conditions
under which the bids are invited
and the contract executed after
the award thereof is a grave
abuse of discretion”
 MANUEL LEYCANO, JR., vs.
COA
G.R. No. 154665  February 10, 2006
Rule:
“THINK TWICE BEFORE SIGNING
THE CERTIFICATE OF
INSPECTION”
• Manuel Leycano, Jr. was the Provincial
Treasurer of Oriental Mindoro and at the
same time a member of the Provincial
School Board (PSB) of that province.
• During his tenure, he was appointed by
the PSB as a member of its Inspectorate
Team which, according to him, had the
function of "monitoring the progress of
PSB projects.”
• The Special Audit Team, COA Regional
Office No. IV, audited selected
transactions under the SEF of the Province
of Oriental Mindoro.

• The Special Audit Team found deficiencies

in the projects, hence, it issued the
questioned Notices of Disallowance
holding liable for signing the Certificates
of Inspection falsely attesting to their
100% completion.
 MANUEL LEYCANO, JR., vs. COA
G.R. No. 154665  February 10, 2006

• Petitioner admits having signed the Certificate of

Inspection in which he attested that the projects
were 100% completed.
• He does not dispute the finding of the COA that the
subject projects were not completed.
• He alleges, however, that the COA overlooked the
fact that the PSB merely intended the inspectorate
Team, of which he was a member, to perform
monitoring functions, leaving the strict
implementation and supervision of the projects in
the hands of the Provincial Engineering Office.
 MANUEL LEYCANO, JR., vs. COA
G.R. No. 154665  February 10, 2006

• Leycano concludes that he is not

the accountable officer and instead
points to the Project Engineer and
Provincial Engineer, who are in
charge of the supervision and
control of PSB Projects.
 MANUEL LEYCANO, JR., vs. COA
G.R. No. 154665  February 10, 2006

• Leycano invokes good faith, claiming that he

merely relied on the reports and representations
of subordinates and other officers that the
subject projects were already completed.
• He alleges that, due to the geographical location
of the various PSB projects, coupled with his
immense responsibilities as Provincial Treasurer,
he had to delegate the actual inspection of PSB
projects to the Municipal Treasurers.
 MANUEL LEYCANO, JR., vs. COA
G.R. No. 154665  February 10, 2006

• Moreover, he claims that he was convinced

to sign the Certificate of Inspection by the
representation of the Project Engineer and
Provincial Engineer appearing in the
Statements of Work Accomplished that
there was 100% project completion, as well
as by the existence of Acceptance Reports
issued by officials of the Department of
Education Culture and Sports (DECS).
 MANUEL LEYCANO, JR., vs. COA
G.R. No. 154665  February 10, 2006

• Arias v. Sandiganbayan
G.R. No. 81563, December 19, 1989, 180 SCRA 309, 316.

All heads of offices have to rely to a reasonable extent on

their subordinates and on the good faith of those who
prepare bids, purchase supplies, or enter into
negotiations.

If a department secretary entertains important visitors, the

auditor is not ordinarily expected to call the restaurant about
the amount of the bill, question each guest whether he was
present at the luncheon, inquire whether the correct amount of
food was served, and otherwise personally look into the
reimbursement voucher's accuracy, propriety, and
sufficiency
 Mega Pacific Consortium Case
G.R. No. 159139, January 13, 2004

“Cart-Before-the-Horse Maneuver”
“Cart-Before-the-Horse Maneuver”

Awarding of the Contract

ahead of the BAC’s written
report/recommendation
 Mega Pacific Consortium Case
G.R. No. 159139, January 13, 2004

WHEREFORE, the Petition is GRANTED. The Court hereby

declares NULL and VOID Comelec Resolution No. 6074 awarding the
contract for Phase II of the AES to Mega Pacific Consortium (MPC). Also
declared null and void is the subject Contract executed between Comelec
and Mega Pacific eSolutions (MPEI).
Comelec is further ORDERED to refrain from implementing
any other contract or agreement entered into with regard to this
project.
Let a copy of this Decision be furnished the Office of the
Ombudsman which shall determine the criminal liability, if any, of the
public officials (and conspiring private individuals, if any) involved in
the subject Resolution and Contract.

Let the Office of the Solicitor General also take measures to

protect the government and vindicate public interest from the ill
effects of the illegal disbursements of public funds made by reason of
the void Resolution and Contract.