Diokno: No plans to ask Congress to amend procurement law

MANILA, Philippines — Despite President Rodrigo Duterte’s aversion to the lowest-bid rule in government procurement, his economic advisers have no plans to push for legislation to get rid of the process that the firebrand leader calls a "source of corruption."

 

The procurement law directs the government to bid out its projects and the lowest bidder is usually awarded the contract.

 

While complaining about the public bidding system for supposedly breeding corruption and causing delays, Duterte had repeatedly said he would push for amendments to the law to put more emphasis on quality of goods rather than on the lowest bidder in government procurement projects.

Asked how policymakers would make that happen, Budget Secretary Benjamin Diokno explained the procurement law must be “changed” to eliminate the lowest-bid requirement.

 

However, Diokno said, the country’s economic managers will not pursue such a move.

 

"Because it would be difficult if we would push for a legislation. We're not sure what will come out of Congress,” the Budget chief told reporters in a chance interview on Tuesday.

 

He said government can just revise the law's implementing rules and regulations.

 

Last month, the president said "all projects of the Philippines" should be implemented through Swiss challenge. But Diokno said that is not applicable to all government projects.

 

Under a Swiss challenge system—the process which the government takes when dealing with unsolicited proposals—third parties can submit competing offers. The original proponent will be given the right to match these offers. 

 

But according to Republic Act 7718, or the Philippine Build-Operate-Transfer Law, “priority projects” are not eligible to be accepted as unsolicited proposals unless “involving new concept or technology.”

 

 

The Duterte administration has set an P8.44-trillion infrastructure spending plan until 2022 to spur gross domestic product growth to 7-8 percent starting this year from a targeted 6.5-7.5 percent in 2017.