Pangandaman: 'Style n’yo bulok' — dummy bidders barred under new procurement law

A stern warning was issued by Department of Budget and Management (DBM) Secretary Amenah F. Pangandaman, declaring, “Style n’yo bulok. The shady dummy bidding schemes in government projects will no longer get through under the New Government Procurement Act (NGPA).”

Pangandaman said one of the key features of the NGPA is the mandatory disclosure of beneficial ownership information—requiring companies participating in public procurement to reveal the identities of those who actually own, control, or have significant influence over them.

According to the Secretary, the disclosure of beneficial ownership information is mandated under Sections 81 and 82 of Republic Act No. 12009, or the NGPA, signed by President Ferdinand R. Marcos Jr. in July 2024.

“The disclosure of beneficial ownership is a powerful feature of the new law because it ensures that conflicts of interest in public procurement are avoided. We are closing the doors on corruption and collusion in bidding for government projects. Under the NGPA, the old tricks of palit-pangalan, palit-ulo, at dummy company owners will no longer work,” she said.

Pangandaman emphasized that this measure will promote integrity, fair competition, and full transparency in the public procurement process.

This provision is crucial, she said, because a study conducted by the Government Procurement Policy Board–Technical Support Office (GPPB-TSO) revealed that most bidders in public procurement share common owners.

“Based on a 2023 TSO survey, we found out that 65.8% of bidders have common owners, based on a random sampling of 180 procuring entities. Meanwhile, we found out that 71.6% of bidders were related to government officials. With the disclosure of beneficial ownership in place, we can deter unfair competition in public contracts and improve our services to benefit our citizens,” said GPPB-TSO Officer-in-Charge Atty. Maria Dionesia Rivera-Guillermo.

In line with this provision of the NGPA, the beneficial ownership information is now among the required eligibility documents that must be submitted to the Philippine Government Electronic Procurement System (PhilGEPS) of the Procurement Service–DBM (PS-DBM) to obtain a PhilGEPS Platinum registration, which is mandatory for all bidders participating in public procurement.

This requirement aligns with Section 20.2.9.1(b) of the Implementing Rules and Regulations (IRR) of the NGPA, approved by the GPPB, chaired by Secretary Pangandaman, on 4 February 2025.

“As of now, out of 12,769 PhilGEPS Platinum-registered corporations for this year, only 6,766 have submitted their beneficial ownership documents to PhilGEPS. The non-submission of this document automatically suspends their Platinum registration, which is the only eligibility document required from bidders. This ensures that only bidders with declared beneficial owners can participate in government bidding—and those beneficial owners must have no conflict of interest with the procuring entity or with other participating bidders,” said PS-DBM Executive Director Genmaries S. Entredicho-Caong.

As part of the NGPA’s implementation, the GPPB, through PS-DBM PhilGEPS, with partners such as the World Bank and Open Ownership, is establishing a public online beneficial ownership registry of bidders and an analytical tool prototype to help procuring entities identify red flags and prevent irregularities.

Beyond preventing conflicts of interest and fraud, publishing information about bidders, merchants, and contractors will enhance oversight and accountability, empowering civil society and the public to take part in monitoring government procurement.

The NGPA upholds transparency, accountability, and strengthened public participation—principles actively championed by the DBM under the Philippine Open Government Partnership.