Atty. Darbin - Penalties

Republic of the Philippines
COMMISSION ON AUDIT
Penal, Civil and

Administrative
Liabilities and
Sanctions
BY: ATTY. BILLY JOE IVAN D. DARBIN, CPA
Law on Procurement and the Philippine Bidding Documents
08 August 2018
Session Overview
RA No. 9184 • Rule XXI - Penal Clause
• Rule XXII - Civil Liability
(Procurement Law) • Rule XXIII - Administrative Sanctions
• Sec. 3(a) – persuading, inducing or influencing

• Sec. 3(e) – giving unwarranted benefits…
RA No. 3019 • Sec. 3(g) - contract grossly disadvantageous
• Sec. 3(h) - having financing or pecuniary interest
(Anti-Graft Law) • Sec. 3(i) – becoming interested, for personal gain..
• Sec. 3(k) – premature disclosure
• Art. 171 - Falsification by public officer

Act No. 3815 • Art. 172 - Falsification by private individual
• Art. 210 – Direct Bribery
(Revised Penal Code) • Art. 211 – Indirect bribery
• Art. 212 – Corruption of Public Official
08 August 2018
Prohibited Practices
 The pertinent provisions of the Anti-Graft

and Corrupt Practices Act, or R.A. 3019,
shall also be applied in determining the
existence of “corrupt or fraudulent
practice.”

08 August 2018
Coverage of Penal Clause
of RA 9184 and its IRR
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.
A person previously held liable or found guilty under the
provisions of the Act and this IRR has a controlling interest
in a prospective bidder-entity, the said bidder-entity shall
be disqualified to participate in any procurement activity
being conducted by the Government (Sec. 65.5 of the IRR)

08 August 2018
Coverage of Penal Clause
of RA 9184 and its IRR
UNIFORM GUIDELINES FOR BLACKLISTING OF MANUFACTURERS,
SUPPLIERS, DISTRIBUTORS, CONTRACTORS AND CONSULTANTS
 In the case of corporations, a single stockholder, together with

his/her relatives up to the third civil degree of consanguinity or
affinity, and their assignees, holding at least twenty percent (20%) of
the shares therein, its chairman and president, shall be blacklisted
after they have been determined to hold the same controlling
interest in a previously blacklisted corporation or in two corporations
which have been blacklisted; the corporations of which they are
part shall also be blacklisted.

08 August 2018
Rule XXI - Penal Clause, RA 9184 (Sec. 65.1)
Persons Covered Penalties
• Public officers • Imprisonment of not less than
6 years and 1 day, but not
• If done in collusion with more than 15 years
private individuals, the
private individuals shall be • Public officer - penalty of
liable for the offense temporary disqualification
from public office
• Note: Acts done is without
prejudice to the provisions of • Private individual -
RA No. 3019 and other penal permanently disqualified
laws from transacting business
with the Government

08 August 2018
Sec. 65.1 (a):
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.

08 August 2018
Acts Punished under Sec. 65.1 (a):
1. Opening any sealed Bid

2. Divulging the contents of the Bid

08 August 2018
Related Provisions Under RA 9184
Section 25, IRR. Submission and Receipt of Bids
25.1. Bidders shall submit their bids through their

duly authorized representative using the forms
specified in the Bidding Documents in two (2)
separate sealed bid envelopes, and which shall
be submitted simultaneously. The first shall
contain the technical component of the bid,
including the eligibility requirements under
Section 23.1 of this IRR, and the second shall
contain the financial component of the bid.
08 August 2018
Section 29, IRR. Bid Opening
The BAC shall open the bids immediately after the

deadline for the submission and receipt of bids. The
time, date, and place of the opening of bids shall be
specified in the Bidding Documents. The bidders or
their duly authorized representatives may attend the
opening of bids. The BAC shall adopt a procedure
for ensuring the integrity, security, and confidentiality
of all submitted bids. The minutes of the bid opening
shall be made available to the public upon written
request and payment of a specified fee to recover
cost of materials.
08 August 2018
2016 IRR Amendments
Submission and Receipt of Bids
The original copy of the bid form shall be typed or written in ink and shall
be signed by the bidder or its duly authorized representative.
Unsealed or unmarked bid envelopes shall be rejected. However, bid

envelopes that are not properly sealed and marked, as required in the Bid
Docs, shall be accepted, provided that the bidder or its duly authorized
representative shall acknowledge such condition of the bid as submitted.
The BAC shall assume no responsibility for the misplacement of the contents
of the improperly sealed or marked bid, or for its premature opening

08 August 2018
Related Offenses Under RA 3019
Divulging valuable information of a

confidential character, acquired by his office
or by him on account of his official position
to unauthorized persons or releasing such
information in advance of its authorized
release date [Sec. 3(k)]

08 August 2018
Causing any undue injury to any party,

including the Government or giving
unwarranted benefits to any private party,
or preference in the discharge of
administrative or judicial functions thru
manifest partiality, evident bad faith or
gross inexcusable negligence [Sec. 3(e)]

08 August 2018
RA No. 3019 [Sec. 3(e)] - Corrupt practices
Two ways violated:
 Causing undue injury to any party, including

the government
 Giving any party any unwarranted benefit,

advantage or preference
 Either act qualifies as violation of Sec. 3(e)

08 August 2018
Elements:
1) The offender is a public officer
2) The act was done in the discharge of the public officer’s

official, administrative or judicial functions
3) The act was done through manifest partiality, evident

bad faith, or gross inexcusable negligence
4) The public officer caused any undue injury to any party,

including the Government, OR gave any unwarranted
benefits, advantage or preference. (Sison vs. People,
G.R. No. 170339, 170398-403, March 9, 2010)

08 August 2018
“Partiality”, “bad faith”, or “negligence” is

not enough. Partiality must be manifest, Bad
faith must be evident, and the negligent act
must be gross and inexcusable. (Sistoza vs.
Desierto, G.R. No.144784, September 3, 2002)

08 August 2018
Uriarte vs. Sandiganbayan, G.R. No. 169251 December 20, 2006
Gross Inexcusable
Manifest Partiality Evident Bad Faith Negligence
A clear, or plain Connotes not Negligence

indication or only bad characterized by
judgment but also the want of even
predilection to patently and the slightest care,
favor one side or palpably acting in a situation
where there is a duty
person rather fraudulent and to act, not
than another dishonest purpose inadvertently but
to do moral willfully and
obliquity or intentionally with
conscious conscious
wrongdoing for indifference to
some perverse consequences
insofar as other
motive or ill will persons may be
affected

08 August 2018
RA No. 3019 (Sec. 9)
Penalties for violations of the AGL:
• Imprisonment for not less than 1 year nor more

than 10 years
• Perpetual disqualification from public office
• Confiscation or forfeiture in favor of the

Government of any prohibited interest and
unexplained wealth manifestly out of proportion
to salary and other lawful income

08 August 2018
Sec. 65.1 (b):
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 action provided for in
the IRR.

08 August 2018
Elements [Sec. 65.1(b)]:
1. There is delay in the:

a. screening for eligibility (for consulting services)
b. opening of bids
c. evaluation
d. post evaluation of bids (post-qualification)
e. awarding of contracts
2. Beyond the prescribed periods of action provided in

the IRR
3. Delay without justifiable cause

08 August 2018
Sec. 24, IRR. Eligibility Requirements and Short

Listing for Consulting Services
24.5.4. The BAC shall recommend the short list

of consultants to the Head of the Procuring
Entity for consideration and approval. The entire
process of eligibility check and short listing shall
not exceed twenty (20) calendar days.

08 August 2018
Sec. 29, IRR. Bid Opening
The BAC shall open the bids immediately after the deadline for the submission and
receipt of bids. The time, date, and place of the opening of bids shall be specified in
the Bidding Documents.
In case the bids cannot be opened as scheduled due to justifiable reasons, the BAC
shall take custody of the bids submitted and reschedule the opening of bids on the
next working day or at the soonest possible time through the issuance of a Notice of
Postponement to be posted in the PhilGEPS website and the website of the Procuring
Entity concerned.
The bidders or their duly authorized representatives may attend the opening of bids.
The BAC shall ensure the integrity, security, and confidentiality of all submitted bids. The
abstract of bids as read and the minutes of the bid opening shall be made available
to the public upon written request and payment of a specified fee to recover cost of
materials.
08 August 2018
Sec. 32, IRR. Bid Evaluation for the Procurement of

Goods and Infrastructure Projects
32.4. The entire evaluation process for the

procurement of Goods and Infrastructure
Projects shall be completed within seven (7)
calendar days from the deadline for receipt of
proposals.

08 August 2018
Sec. 33, IRR. Bid Evaluation of Short Listed Bidders

for Consulting Services
33.4. The entire evaluation process, including

the submission of the results thereof to the Head
of the Procuring Entity for approval, shall be
completed in not more than twenty-one (21)
calendar days after the deadline for receipt of
proposals. The proposal with the highest score
shall be identified as the Highest Rated Bid.

08 August 2018
Section 34, IRR. Objective and Process of Post-Qualification
34.8. The post-qualification process shall be completed in not more

than twelve (12) calendar days from the determination of the Lowest
Calculated Bid/Highest Rated Bid. In exceptional cases, the post-
qualification period may be extended by the HoPE, but in no case
shall the aggregate period exceed forty-five (45) calendar days for
Goods and Infrastructure Projects, or thirty (30) calendar days in
Consulting Services.
In case of post-disqualification of the bidder with the lowest

calculated bid/highest rated bid, the BAC shall be given the same
fresh period to conduct the post-qualification of the next lowest
calculated bid/highest rated bid until a bidder is post-qualified or
failure of bidding is declared based on Section 35.1(c) of this IRR.
08 August 2018
Section 37, IRR. Notice and Execution of Award
37.1.2. Within a period not exceeding fifteen (15)

calendar days from the determination by the
BAC of the bidder with the LCRB, HRRB, SCRB, or
SRRB, and the recommendation to award the
contract, the HoPE or his duly authorized
representative shall approve or disapprove the
said recommendation.

08 August 2018
37.2.2. The procuring entity shall enter into contract

with the winning bidder within the same ten (10) day
period provided that all the documentary
requirements are complied with.
Note: The same ten (10) day period refers to the

period in which the winning bidder is required to post
the required Performance Security and enter into
contract with the procuring entity upon receipt of the
Notice of Award. (Sec. 37.2.1, IRR)
08 August 2018
37.3. When further approval of higher authority is

required, the approving authority for the contract or
his duly authorized representative shall be given a
maximum of twenty (20) calendar days from receipt
thereof to approve or disapprove it. In the case of
GOCCs, the concerned board or its duly authorized
representative shall be given a maximum of thirty (30)
calendar days from receipt thereof to approve or
disapprove it.

08 August 2018
37.4.1. The concerned PE shall issue the Notice to

Proceed together with a copy or copies of the
approved contract to the successful bidder
within seven (7) calendar days from the date of
approval of the contract by the appropriate
government approving authority. All notices
called for by the terms of the contract shall be
effective only at the time of receipt thereof by
the successful bidder.
08 August 2018
Sec. 38, IRR. Period of Action on Procurement Activities
38.1. The procurement process from the opening of

bids up to the award of contract shall not exceed
three (3) months, or a shorter period to be determined
by the procuring entity concerned. All members of
the BAC shall be on a “jury duty” type of assignment
until the Notice of Award is issued by the Head of the
Procuring Entity in order to complete the entire
procurement process at the earliest possible time.

08 August 2018
Sec. 38, IRR. Period of Action on Procurement

Activities
38.2. The maximum periods and the

recommended earliest possible time for action
on specific procurement activities are provided
for in Annex “C” of this IRR. In case the deadline
for each activity falls on a non-working day (i.e.
Saturday and Sunday), legal holiday, or special
non-working holiday, the deadline shall be the
next working day.(a)
08 August 2018
Sec. 65.1 (c):
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 action which favors, or tends to favor a
particular bidder.

08 August 2018
Legal Basis Under Other Laws
There is undue influence when a person takes

improper advantage of his power over the will of
another, depriving the latter of a reasonable
freedom of choice. The following circumstances
shall be considered: confidential, family, spiritual,
and other relations between the parties, or the fact
that the person alleged to have been unduly
influenced was suffering from mental weakness, or
was ignorant or in financial distress. (Article 1337 of
the New Civil Code of the Philippines)

08 August 2018
Persuading, inducing or influencing another

public officer to perform an act constituting a
violation of rules and regulations duly
promulgated by competent authority or an
offense in connection with the official duties
of the latter, or allowing himself to be
persuaded, induced, or influenced to commit
such violation or offense [Section 3(a)]

08 August 2018
RA No. 3019 [Sec. 3(a)] - Corrupt practices
Two ways of violating:
 Persuading, inducing, influencing another public

officer
 Allowing himself to be persuaded, induced or

influenced

08 August 2018
Sec. 65.1 (d):
Splitting of contracts which exceed

procedural purchase limits and competitive
bidding.

08 August 2018
Prohibition on Splitting of Government Contracts.

Splitting of Government Contracts, which means
the division or breaking up of government
contracts into smaller quantities and amounts, or
dividing contract implementation into artificial
phases or sub-contracts for the purpose of evading
or circumventing the requirements of R.A. 9184 and
its IRR, particularly the necessity of competitive
bidding and the requirements for the alternative
methods of procurement, is prohibited. (Sec. B,
General Guidelines, Annex “H”)

08 August 2018
Sec. 54, IRR. Terms and Conditions for the use of Alternative
Methods
Sec. 54.1. Splitting of Government Contracts is not allowed. Splitting of
Government Contracts means the division or breaking up of GoP contracts
into smaller quantities and amounts, or dividing contract implementation into
artificial phases or sub-contracts for the purpose of evading or circumventing
the requirements of law and this IRR, particularly the necessity of competitive
bidding and the requirements for the alternative methods of procurement.
For Infrastructure Projects to be implemented by phases, the Procuring Entity

shall ensure that there is a clear delineation of work for each phase, which
must be usable and structurally sound. It shall also ensure the conduct of the
detailed engineering activities for each phase as provided for in Annex “A”
of this IRR.(a)
(See also Sec. B, General Guidelines, Annex H)

08 August 2018
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 post-qualification process prescribed in
the Bidding Documents and provided all the following
conditions are present:
xxx
b. The repeat order does not result in splitting of requisitions
or purchase orders;
08 August 2018
Sec. 65.1 (e):
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.

08 August 2018
Element of Sec. 65.1 (e):
1. The offender is a Head of the Agency;

2. The Head of the Agency exercised his power
under Section 41 of RA 9184 and its IRR;
3. The Head of the Agency abused the exercise of
power with manifest preference to a bidder; and
4. The bidder is closely related to the Head of the
Agency in accordance with the provision of
Section 47 of RA 9184 and its IRR.

08 August 2018
Sec. 41, IRR. 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 PE, 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;

08 August 2018
Sec. 41, IRR. Reservation Clause (cont.)
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 GoP, as follows:
(i) 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; (ii) if
the project is no longer necessary as determined by the HoPE; or
(iii) if the source of funds for the project has been withheld or
reduced through no fault of the Procuring Entity. (a)

08 August 2018
Sec. 47, IRR. Disclosure of Relations
All bids shall be accompanied by a sworn affidavit of the bidder

that it is not related to the Head of the Procuring Entity, members of
the BAC, the TWG, and the BAC Secretariat, the head of the PMO or
the end-user unit, and the project consultants, 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 Section 30 of this IRR.
For this reason, relation to the aforementioned persons within the
third civil degree of consanguinity or affinity shall automatically
disqualify the bidder from participating in the procurement of
contracts of the procuring entity notwithstanding the act of such
persons inhibiting themselves from the procurement process.
08 August 2018
Sec. 47, IRR. Disclosure of Relations (cont.)
On the part of the bidder, this provision shall apply to the following
persons:
a) If the bidder is an individual or a sole proprietorship, to the bidder

himself;
b) If the bidder is a partnership, to all its officers and members;
c) If the bidder is a corporation, to all its officers, directors, and
controlling stockholders;
d) If the bidder is a cooperative, to all its officers, directors, and
controlling shareholders or members; and
e) If the bidder is a joint venture, the provisions of items (a), (b), (c),
or (d) of this Section shall correspondingly apply to each of the
members of the said joint venture, as may be appropriate.

08 August 2018
Directly or indirectly having financing or

pecuniary interest in any business, contract
or transaction in connection with which he
intervenes or takes part in his official
capacity, or in which he is prohibited by the
Constitution or by any law from having any
interest [Sec. 3(h)]

08 August 2018
Directly or indirectly becoming interested, for personal gain,
or having a material interest in any transaction or act
requiring the approval of a board, panel or group of which
he is a member, and which exercises discretion in such
approval, even if he votes against the same or does not
participate in the action of the board, committee, panel or
group.
Interest for personal gain shall be presumed against those

public officers responsible for the approval of manifestly
unlawful, inequitable, or irregular transaction or acts by the
board, panel or group to which they belong [Sec. 3(i)]
.
08 August 2018
Rule XXI - Penal Clause , RA 9184 (Sec. 65.2)
Persons Covered:
• Private individuals
• Public officer who conspires with private
individuals
Penalties:
• Imprisonment of not less than 6 years and 1
day, but not more than 15 years
• Public officer - penalty of penalty of
temporary or perpetual disqualification from
public office
• Private individual - permanently disqualified
from transacting business with the
Government
08 August 2018
Sec. 65.2 (a):
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.

08 August 2018
Sec. 41, IRR. Reservation Clause
The Head of the Procuring Entity 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; xxx
08 August 2018
Sec. 65.2 (b):
When a bidder maliciously submits different

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

08 August 2018
To ensure transparency and accurate

representation of the bid submission, the BAC
Secretariat shall notify in writing all bidders whose
bids it has received through its PhilGEPS-registered
physical address or official e-mail address. The
notice shall be issued within seven (7) cd from the
date of the bid opening. (Sec. 25.7, 2016 IRR of RA
9184)

08 August 2018
Sec. 65.2 (c):
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 an undue advantage to any one of
them.

08 August 2018
Sec. 26, IRR. Modification and Withdrawal of Bids
26.2. A bidder may, through a letter, withdraw its bid

before the deadline for the receipt of bids. Withdrawal of
bids after the applicable deadline shall be subject to
appropriate sanctions as prescribed in this IRR. A bidder
may also express its intention not to participate in the
bidding through a letter which should reach and be
stamped received by the BAC before the deadline for
the receipt of bids. A bidder that withdraws its bid shall
not be permitted to submit another bid, directly or
indirectly, for the same contract.
08 August 2018
Sec. 65.2 (d):
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.

08 August 2018
Entering into contract or

transaction manifestly and
grossly disadvantageous to the
government whether or not the
officer profited or will profit
thereby [Sec. 3(g)]

08 August 2018
RA No. 3019 [Sec. 3(g)] - Corrupt practices
ELEMENTS:
 The accused is a public officer
 He entered into a contract or transaction in

behalf of the government
 Such contract or transaction is grossly and

manifestly disadvantageous to the government.
(Nava vs. Palattao et al., G.R. No. 160211
August 28, 2006)

08 August 2018
Rule XXI - Penal Clause , RA 9184 (Sec. 65.3)

08 August 2018
Sec. 65.3 (a):
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.

08 August 2018
Sec. II. Instructions to Bidders, Philippine Bidding
Documents
6. Bidder’s Responsibilities
(f) Ensuring that each of the documents

submitted in satisfaction of the bidding
requirements is an authentic copy of the
original, complete, and all statements and
information provided therein are true and
correct;

08 August 2018
Sec. VIII. Bidding Forms, Philippine Bidding

Documents
Omnibus Sworn Statement
4. Each of the documents submitted in

satisfaction of the bidding requirements is an
authentic copy of the original, complete, and
all statements and information provided
therein are true and correct;

08 August 2018
Sec. 65.3 (b):
Submit Bidding Documents of whatever kind

and nature that contain false information or
falsified documents or conceal such
information in the Bidding Documents, in
order to influence the outcome of the public
bidding.

08 August 2018
Sec. 34, IRR. Objective and Process of Post-
Qualification
34.2. Within five (5) calendar days from receipt

by the bidder of the notice from the BAC that the
bidder has the Lowest Calculated Bid or Highest
Rated Bid, the bidder shall submit to the BAC its
latest income and business tax returns, and other
appropriate licenses and permits required by law
and stated in the Bidding Documents.

08 August 2018
Sec. 65.3 (c):
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.

08 August 2018
To ensure transparency and accurate

representation of the bid submission, the BAC
Secretariat shall notify in writing all bidders whose
bids it has received through its PhilGEPS-registered
physical address or official e-mail address. The
notice shall be issued within seven (7) cd from the
date of the bid opening. (Sec. 25.7, 2016 IRR of RA
9184)

08 August 2018
Elements:
Two ways of committing Sec. 65.3 (c):
PARTICIPATING IN A PUBLIC BIDDING
THRU ANOTHER PERSON
Bidder submits a bid using another’s Bidder submits a bid using another’s
name name with his consent
The 3rd party does not know that his The 3rd party has knowledge that his
name was used in the bidding name was used to join the bidding
Purpose is to make it appear that there Purpose is to make it appear that there
is competition is competition
Only the bidder is liable The Bidder and the name-Lender are
both liable

08 August 2018
Sec. 65.3 (d):

Withdraw a Bid, after it shall have qualified as the
Lowest Calculated Bid/Highest Rated Bid, or refuse
to accept an 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 within the prescribed time, or
delaying the submission of requirements such as,
but not limited to, performance security,
preparatory to the final award of the contract.
08 August 2018
Elements Sec. 65.3 (d)
1. The bidder either:
a) Withdraws his/her bid or
b) Refuses to accept an award *
c) Fails to submit requirements prior to award within
the prescribed time *
d) Delays to submit requirements prior to award *
* A bidder is qualified as the Lowest Calculated

Bid/Highest Rated Bid; and
The withdrawal or refusal is without just cause or for the

purpose of forcing the procuring entity to award the
contract to another bidder;
08 August 2018
Directly or indirectly requesting or receiving any

gift or benefit in connection with any contract or
transaction between a government agency and
another person wherein the public officer in his
capacity has to intervene under the law [Sec.
3(b)].

08 August 2018
Sec. 3(b)
Three distinct acts penalized:

 Demanding or requesting;
 Receiving; or
 Demanding, requesting and receiving any
gift, etc.
 These are distinct from each other; proof of one
suffices.
 Demand immaterial because of “or” between
requesting and receiving.
08 August 2018
Article 171 - Falsification by public officer,
Revised Penal Code
Elements of the offense:
1. Offender is a public officer, employee, or notary public
2. He takes advantage of his official position. This is proven by

evidence that the accused has:
a. The duty to make or prepare or
b. Intervene in the preparation of, or
c. He has the official custody of the falsified document;
3. He falsifies a document by committing any of the 8 acts.
Penalty:
 Prision mayor and a fine not to exceed P1,000,000.00

08 August 2018
Acts of Falsification
1st Act: Counterfeiting or imitating any handwriting, signature

or rubric
 Elements:
1. That there be an intent to imitate, or an attempt to

imitate; and
2. That the two signatures or handwritings, the genuine and

the forged, bear some resemblance, to each other.

08 August 2018
 There must be an attempt to imitate the genuine

handwriting or signature and that the two have
some resemblance, otherwise the offense may fall
under Article 171, 2nd par
 Evidence of this may occur in ghost deliveries,

misappropriation, diversion of funds or property,
fabricated board or council resolutions

08 August 2018
2nd Act: Causing it to appear that persons have participated in
any act or proceeding when they did not in fact so participate;
 ELEMENTS:
1. That the offender caused it to appear in a document that a

person or persons participated in an act or a proceeding; and
2. That such person did not in fact participate in the act or

proceeding.
 May be committed in case of rigged biddings

08 August 2018
4th Act: Making untruthful statements in a narration of facts
 There must be a narration of facts, not a conclusion of law.

Narration must be on a material matter
 The person making the narration of facts must be aware of

the falsity of the facts narrated by him. This kind of
falsification may be committed by omission
 Legal obligation means that there is a law requiring the

disclosure of the truth of the facts narrated

08 August 2018
5th Act: Altering true dates
ELEMENTS:
1. Date must be essential
2. Alteration must affect veracity of document or effects
 If a document is suspected to have been ante-dated, look for

inconsistencies in the date of supporting documents or other
records or by cross-checking numbered forms in order to
uncover and prove falsification
Ex: Falsification of date of bidding documents, official receipts,

purchase orders, delivery receipts, etc.
6th act: Making any alteration or intercalation in a genuine
document which changes its meaning
 ELEMENTS:
1. There is an alteration (change) or intercalation (insertion)

on a document
2. It was made on a genuine document
3. The alteration or intercalation has changed the meaning
of a document
4. The change made the document speaks something
false

08 August 2018
Article 171 - Falsification by public officer ,
RPC
If offender does not take advantage of his public
position, he may still be liable for falsification of
documents by a private person under Art. 172
(Falsification by private individual and use of falsified
documents)
Penalty:
Prision correccional in its medium and maximum
periods and a fine of not more than P1,00,000.00

08 August 2018
Article 183 - False Testimony in Other Cases
and Perjury in Solemn Affirmation, RPC
Any person, who knowingly makes untruthful

statements and not being included in the provisions
of the next preceding articles, shall testify under
oath, or make an affidavit, upon any material
matter before a competent person authorized to
administer an oath in cases in which the law so
requires.

08 August 2018
 The next three preceding articles referred to

above are:
1. Art. 180. False testimony against a defendant
2. Art. 181. False testimony favorable to the
defendants
3. Art. 182. False testimony in civil cases

08 August 2018
 Acts punished
 1. By falsely testifying under oath;
 2. By making a false affidavit.

08 August 2018
 Elements of perjury:
1. Offender makes a statement under oath or executes an
affidavit upon a material matter;
2. The statement or affidavit is made before a competent
officer, authorized to receive and administer oaths;
3. Offender makes a willful and deliberate assertion of a
falsehood in the statement or affidavit;
4. The sworn statement or affidavit containing the falsity is
required by law, that is, it is made for a legal purpose.
Example: willful and deliberate assertion of a falsehood in

the SALN and bidding documents

08 August 2018
Rule XXII - Civil Liability, IRR, RA 9184
Section 67. Civil Liability in Case of Conviction
Without prejudice to administrative sanctions that

may be imposed in proper cases, a conviction
under RA No. 9184 and its IRR or RA 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/s in
question, or both, at the discretion of the courts.

08 August 2018
Rule XXII - Civil Liability
Section 68. Liquidated Damages
At least equal to 1/10th of 1% (0.001) of the

cost of the unperformed portion for every day
of delay. Once the cumulative amount of
liquidated damages reaches 10% of the
amount of the contract, the PE may rescind
or terminate the contract, without prejudice to
other courses of action and remedies
available under the circumstances.

08 August 2018
Rule XXIII - Administrative Sanctions,
IRR of RA 9184
Section 69. Imposition of Administrative Penalties

08 August 2018
Rule XXIII - Administrative Sanctions
Submission of eligibility requirements containing false
information or falsified documents [Sec. 69.1(a)]
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 competitive bidding [Sec. 69.1(b)]
Allowing the use of one’s name, or using the name

of another for purposes of competitive bidding
[Sec. 69.1(c)]
08 August 2018
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
LCRB or HRRB [Sec. 69.1(d)]
Refusal or failure to post the required performance

security within the prescribed time [Sec. 69.1(e)]
Termination of the contract due to the default of

the bidder [Sec. 69.1(f)]

08 August 2018
Refusal to clarify or validate in writing its bid during
post-qualification within a period of 7 calendar
days from receipt of the request for clarification
[Sec. 69.1(g)]
Any documented attempt by a bidder to unduly

influence the outcome of the bidding in his favor
[Sec. 69.1(h)]
All other acts that tend to defeat the purpose of the

competitive bidding, such as habitually withdrawing from
bidding, submitting late Bids or patently insufficient bid,
for at least 3 times within a year, except for valid reasons
[Sec. 69.1(i)]
08 August 2018
Section 70. Preventive Suspension

08 August 2018
Exercise 1.0
Case Study
Penal, Civil and Administrative
Liabilities and Sanctions

08 August 2018
08 August 2018
THANK
Y U!!!

Atty. Darbin - Penalties

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Republic of the Philippines

Penal, Civil and

• Sec. 3(a) – persuading, inducing or influencing

• Art. 171 - Falsification by public officer

 The pertinent provisions of the Anti-Graft

Law on Procurement and the Philippine Bidding Documents

Law on Procurement and the Philippine Bidding Documents

 In the case of corporations, a single stockholder, together with

Law on Procurement and the Philippine Bidding Documents

Law on Procurement and the Philippine Bidding Documents

Sec. 65.1 (a):

Open any sealed Bid including but not limited to

Law on Procurement and the Philippine Bidding Documents

Acts Punished under Sec. 65.1 (a):

1. Opening any sealed Bid

Law on Procurement and the Philippine Bidding Documents

Section 25, IRR. Submission and Receipt of Bids

25.1. Bidders shall submit their bids through their

The BAC shall open the bids immediately after the

Unsealed or unmarked bid envelopes shall be rejected. However, bid

Law on Procurement and the Philippine Bidding Documents

Divulging valuable information of a

Law on Procurement and the Philippine Bidding Documents

Causing any undue injury to any party,

Law on Procurement and the Philippine Bidding Documents

Two ways violated:

 Causing undue injury to any party, including

 Giving any party any unwarranted benefit,

 Either act qualifies as violation of Sec. 3(e)

Law on Procurement and the Philippine Bidding Documents

1) The offender is a public officer

2) The act was done in the discharge of the public officer’s

3) The act was done through manifest partiality, evident

4) The public officer caused any undue injury to any party,

Law on Procurement and the Philippine Bidding Documents

“Partiality”, “bad faith”, or “negligence” is

Law on Procurement and the Philippine Bidding Documents

A clear, or plain Connotes not Negligence

Law on Procurement and the Philippine Bidding Documents

• Imprisonment for not less than 1 year nor more

• Perpetual disqualification from public office

• Confiscation or forfeiture in favor of the

Law on Procurement and the Philippine Bidding Documents

Sec. 65.1 (b):

Delaying, without justifiable cause, the

Law on Procurement and the Philippine Bidding Documents

1. There is delay in the:

2. Beyond the prescribed periods of action provided in

3. Delay without justifiable cause

Sec. 24, IRR. Eligibility Requirements and Short

24.5.4. The BAC shall recommend the short list

Law on Procurement and the Philippine Bidding Documents

Sec. 32, IRR. Bid Evaluation for the Procurement of

32.4. The entire evaluation process for the

Law on Procurement and the Philippine Bidding Documents

Sec. 33, IRR. Bid Evaluation of Short Listed Bidders

33.4. The entire evaluation process, including

Law on Procurement and the Philippine Bidding Documents

34.8. The post-qualification process shall be completed in not more

In case of post-disqualification of the bidder with the lowest

37.1.2. Within a period not exceeding fifteen (15)

Law on Procurement and the Philippine Bidding Documents

37.2.2. The procuring entity shall enter into contract