A ₱P91.2-million procurement for 80 vans for deployment to barangays in Laoag City has sparked a legal dispute after the city’s Bids and Awards Committee (BAC) disqualified one bidder before opening its financial proposal.

Documents obtained by the DAILY TRIBUNE show that Northpoint Alliance Motors Corp. (NAMCO) questioned its disqualification in a letter to Mayor James Bryan Q. Alcid, while the BAC defended its decision, saying it complied with procurement laws.

The dispute centers on the BAC’s application of Republic Act (RA) 12009, or the New Government Procurement Act, and Section 89 of the Local Government Code. NAMCO argued the committee misapplied both laws and prevented the opening of what it claimed was the lowest bid.

The project covers the supply and delivery of 80 vans with an approved budget of P91.2 million. NAMCO said it submitted a bid of P83.98 million, about P7.18 million lower than the reported winning bid of ₱P91.16 million submitted by MCX International Inc.

NAMCO maintained that Section 89 of the Local Government Code does not apply because a member of the Sangguniang Panlalawigan has no direct or indirect influence over Laoag City’s procurement decisions or appropriations.

The BAC, however, said NAMCO was disqualified on two independent grounds. It alleged the company failed to comply with the mandatory beneficial ownership disclosure requirement under RA 12009 after its certification listed only one beneficial owner despite other shareholders appearing in its General Information Sheet.

The BAC also identified NAMCO president Johanson T. Chua, an incumbent Ilocos Norte provincial board member, as a beneficial owner whose relationship with the company should have been disclosed.

The BAC further argued that Chua’s position placed the company within the prohibition under Section 89 because the Provincial Board reviews city ordinances and appropriations.