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Issue on Nantionalize Business

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Issue on Nantionalize Business

Post by Lord Rake on Tue Feb 22, 2011 3:11 pm

Does GPPB considered Government Bidding as Nationalized Business? Nationalized Business wherein Foreign companies are not allowed to participate or if they participate through a "dummy corporation" they will be liable for anti-dummy.
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Re: Issue on Nantionalize Business

Post by RDV @ GP3i on Tue Feb 22, 2011 3:32 pm

Lord Rake wrote:Does GPPB considered Government Bidding as Nationalized Business? Nationalized Business wherein Foreign companies are not allowed to participate or if they participate through a "dummy corporation" they will be liable for anti-dummy.

As provided in the Implementing Rules and Regulations of the Government Procurement Reform Act, foreign bidders are allowed to participate, in case of procurement of Goods, in any of the situations provided therein, to wit:

"23.5.1.2. Foreign bidders may be eligible to participate under any of the following circumstances:

a) When provided for under any Treaty or International or Executive
Agreement as provided in Section 4 of the Act and this IRR;

b) When the foreign supplier is a citizen, corporation or association of a country, included in Annex “I” to be issued by the GPPB, the laws or regulations of which grant reciprocal rights or privileges to citizens, corporations or associations of the Philippines;

c) When the goods sought to be procured are not available from local suppliers; or

d) When there is a need to prevent situations that defeat competition or restrain trade.
"
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Re: Issue on Nantionalize Business

Post by Lord Rake on Tue Feb 22, 2011 4:22 pm

My issue is this, there is this Company which is 100% Filipino (Company A) but being managed by a 100% Foreign Company (Company B). Managed in a way that all of the top management of company A are employees of Company B.

Can they join bidding under the name of Company A?

Can Company A be classified too as a Foreign Bidder?

Is there a violation of anti-dummy? or just a change in classification of Company A from a domestic company to a foreign company?

Thanks
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Re: Issue on Nantionalize Business

Post by Guest on Tue Feb 22, 2011 5:31 pm

Well the basic determination whether a company is a foreign or domestic corporation is percentage of ownership, and not the employees / management.. It does not mean that a foreign company is a "Domestic Company" if all employees are Filipino, so vice versa.

With the question of violation of the anti dummy.. I think there is a violation if such company is used for fraud. It is beyond the BAC or TWG to determine such violation, so, let us leave that to the courts to clarify.

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Re: Issue on Nantionalize Business

Post by sunriser431 on Tue Feb 22, 2011 8:18 pm

The GPPB has issued Resolution No.018-2005, dated 12 September 2005 to address this issues, for further readings try this LINK bounce
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