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government agency

Post by shobe on Mon Mar 16, 2009 3:19 pm

Hi procurement practitioners.

Will the provisions of R.A. 9184 and its IRR-A be applicable to a government entity which is procuring without the use of public funds? Question

PS
No subsidy from the government as well.
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Re: government agency

Post by Mikel on Tue Mar 17, 2009 9:54 am

good morning atty;

i don't know if this may help (probably you have already read it), but let me just quote Sec. 4 of the GPRA -
"This Act shall apply to the procurement of infra, goods, and consulting services, regardless of source of funds, local or foreign, by all branches and instrumentalities of the government, x x x."

if the government entity subject of your query is included in the government offices/ instrumentalities enumerated in the Administrative Code of 1987 (Revised?), i think that it has to follow the GPRA. i think if private funds, if it enters the coffers of the government (be it general fund or trust fund), assumes the nature of a public fund, unless the trustor (in case of trust funds) specifically states otherwise.

if you can elaborate more on the details of your query, maybe others can offer their own opinion.

just sharing my view.

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Re: government agency

Post by RDV @ GP3i on Tue Mar 17, 2009 3:50 pm

I share the same view with Mikel.

If it enters the coffers of the government agency, then it partakes the nature of a public fund. If it is used in the procurement of either goods and services, infra, and/or consulting services, then the provisions of RA 9184 and IRR-A will apply.

Is it, however, a "trust" fund, which has a specific purpose for which the fund has been established, or for which it is kept?
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Re: government agency

Post by shobe on Wed Mar 18, 2009 10:05 am

Thanks for the responses.

Sorry if i can't elaborate on the facts (still subject of a congressional inquiry). I just had the impression (which may be wrong) that the the GPRA was primarily crafted to safeguard public funds, with transparency, accountability and public monitoring as its guiding principles.

Nonetheless, I'd like to clarify that there's no trust fund involved nor are their private funds entering the coffers of government.
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Re: government agency

Post by RDV @ GP3i on Thu Mar 19, 2009 4:58 pm

shobe wrote:No subsidy from the government as well.

Government corporations, which do not receive government subsidy, procuring using their own internally-generated funds are not exempted from R.A. 9184 and its IRR-A, as well.
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Re: government agency

Post by engrjhez® on Sat Mar 21, 2009 4:31 pm

shobe wrote:Hi procurement practitioners.

Will the provisions of R.A. 9184 and its IRR-A be applicable to a government entity which is procuring without the use of public funds? Question

Hi, procurement lawyers! Very Happy

May we first define what is a public fund? Webster defines PUBLIC as "of or pertaining to people; belonging to the people; relating to, or affecting, a nation, state or community; while FUNDS is:

1. An aggregation or deposit of resources from which supplies are or may be drawn for carrying on any work, or for maintaining existence.
2. A stock or capital; a sum of money appropriated as the foundation of some commercial or other operation undertaken with a view to profit; that reserve by means of which expenses and credit are supported; as, the fund of a bank, commercial house, manufacturing corporation, etc.
3. The stock of a national debt; public securities; evidences (stocks or bonds) of money lent to government, for which interest is paid at prescribed intervals; - called also public funds.
4. An invested sum, whose income is devoted to a specific object; as, the fund of an ecclesiastical society; a fund for the maintenance of lectures or poor students; also, money systematically collected to meet the expenses of some permanent object.
5. A store laid up, from which one may draw at pleasure; a supply; a full provision of resources; as, a fund of wisdom or good sense.


I can never think of a government agency operating with private funds (except the individual employees' personal funds). I hope such fund is not "laundered" Shocked
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Re: government agency

Post by shobe on Mon Mar 23, 2009 11:46 am

Hi Engrjhez.

Just wanted to elaborate on the nature of public funds in relation to your previous post...

It would be good to note that one of the basic principles in the disbursement and utilization of government funds is that these should only be used for public purpose.

Section 29 (1) Article VI of the Constitution mandates that no money shall be paid out of the Treasury except in pursuance of an appropriation made by law.

Likewise, Section 4 of PD 1445 provides:
Section 4. Fundamental Principles. Financial transactions and operations of any government agency shall be governed by the fundamental principles set forth hereunder to wit:

1. xxx
2. Government funds or property shall be spent or used solely for public purposes.

Public purpose has for its objective the promotion of the public health, safety, morals, security, contentment and the general welfare of the inhabitants (Tantuico, Justice F.S. State Audit Code of the Philippines Annotated 1982 Edition).


PS
Had the agency, I'm referring to, been classified as a GOCC, the original query would not have been posted. Smile Nonetheless, let me thank those who responded. I would love inform all of you regarding the updates on the status of this agency as soon as the bill in relation thereto is approved. (i heard the resolution as regards the nature of this agency is now the subject of BiCam deliberations). I hope legislators will have time to peek in this very informative forum. Ciao! Wink
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Re: government agency

Post by engrjhez® on Wed Mar 25, 2009 2:49 pm

shobe wrote:
Had the agency, I'm referring to, been classified as a GOCC, the original query would not have been posted. Smile Nonetheless, let me thank those who responded. I would love inform all of you regarding the updates on the status of this agency as soon as the bill in relation thereto is approved. (i heard the resolution as regards the nature of this agency is now the subject of BiCam deliberations). I hope legislators will have time to peek in this very informative forum. Ciao! Wink
This is becoming more interesting. Since you have mentioned a possible BiCam deliberation, this only suggest a scale of significant importance. Let us wait for this telenovela... Very Happy
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