House panel approves ban on relatives of officials in gov't contracts

The House Committee on Revision of Laws on Monday approved a measure prohibiting relatives of public officials up to the fourth degree of consanguinity from entering into government contracts.

The development came after the panel, chaired by Rizal Rep. Emigdio Tanjuatco III, approved a motion to consolidate several bills related to the proposal, including one filed by House Majority Floor Leader and Ilocos Norte 1st District Rep. Sandro Marcos, son of President Ferdinand Marcos Jr.

“We were able to harmonize the provisions on post-employment disqualification, beneficial ownership definitions, penalties, subcontracting, and treatment of existing contracts, while at the same time balancing anti-corruption goals with practical considerations for local governments and constitutional concerns,” Tanjuatco said.

Representative Marcos’ bill defines public officials as heads of agencies, heads of procuring entities, or members of governing boards, as well as any public officer or employee exercising policy-determining, supervisory, or managerial functions.

This covers both career and non-career service personnel, including military and uniformed personnel, whether or not they receive compensation.

The proposal comes amid ongoing congressional and executive scrutiny of possible conflicts of interest involving some lawmakers and their ties to companies that secure government contracts, sometimes referred to as “contractors.”

In recent months, several House members and officials have been included in investigations or disclosures related to alleged involvement in government infrastructure projects, including flood control programs.

The proposed measure seeks to bar relatives down to the fourth degree of consanguinity from securing government contracts—or from parents down to grandchildren, siblings, and extended relatives like cousins and great-uncles or -aunts.

Under Republic Act 6713 or the Code of Conduct and Ethical Standards for Public Officials and Employees, officials are already prohibited from directly or indirectly having financial or material interest in any transaction requiring the approval of their office.

The law likewise requires public officials and employees to avoid conflicts of interest at all times and mandates divestment from private business interests within a prescribed period upon assumption of office.

Marcos said government funds should serve the public interest and not be used to benefit relatives or create undue advantage.

“By closing this loophole, we take another step toward a government that is fair, transparent, and truly for the people,” he said.

The bill also defines government contracts as agreements between private entities and government agencies or instrumentalities, including government-owned or -controlled corporations (GOCCs) and local government units, covering supplies, infrastructure projects, joint ventures, public-private partnerships, and similar arrangements involving public funds or property.

The proposed restriction, however, excludes contracts that are highly technical, proprietary, or confidential in nature.—MCG, GMA News