Significant new laws in 2024 (Part 3)
Part 3
RA 12009, New Government Procurement Act
This law repeals Republic Act No. 9184, the Government Procurement Reform Act, and Commonwealth Act No. 138, the Act to Give Native Products and Domestic Entities Preference in the Purchase of Articles for the Government.
It applies to the procurement of goods, infrastructure projects, and consulting services, regardless of the source of funds—whether local or foreign—by all branches and instrumentalities of the national government, including its departments, bureaus, offices, and agencies, as well as State Universities and Colleges, Government-Owned and Controlled Corporations, Government Financial Institutions, and Local Government Units.
READ: Significant new laws in 2024
The law shortens the procurement process to 60 days, standardizes procurement forms, and implements electronic procurement. It also creates an e-marketplace where government agencies can place orders for common-use supplies and equipment through the Department of Budget and Management, and mandates the use of an electronic payment system.
A notable feature of this law is its introduction of the most economically advantageous responsive bid concept. This allows for a rated criteria in selecting the winning bidder, considering not only the quantitative but also the qualitative economic value of proposals, as opposed to the previous practice of choosing the cheapest product or service.
To promote transparency, the law requires video recording and live streaming of the procurement process, making the proceedings accessible to the public. It also mandates the presence of at least two observers from the private sector or civil society organizations to monitor the procurement process.
Other modes of procurement provided under the law include:
a. Limited Source Bidding
b. Direct Contracting
c. Direct Acquisition
d. Repeat Order
e. Small Value Procurement
f. Negotiated Procurement (for emergency cases)
g. Direct Sales and Direct Procurement for Science, Technology, and Innovation
RA 12021, Magna Carta of Filipino Seafarers
According to statistics, there are over 500,000 Filipino seafarers, making the Philippines the leading supplier of seamen and seawomen worldwide.
The law covers Filipino seafarers who are employed or working in any capacity on board a ship or vessel, including cadets, navigating international waters, whether on Philippine-registered or foreign-registered ships.
Its primary aim is to protect the rights and welfare of seafarers. In addition to guaranteeing a secure workplace, the law ensures compliance with safety standards, fair employment terms and conditions, decent working and living conditions aboard ships, and access to appropriate medical care. Seafarers are also entitled to the right to self-organize, engage in collective bargaining, pursue educational advancement and training at reasonable costs, and access information and records related to their work. Other protections include safe passage, consultation rights, medical attention, protection against discrimination, harassment, and bullying, as well as the right to an appropriate grievance mechanism and the right to vote in elections.
The law establishes standard terms for seafarers’ employment contracts, work hours, salaries, wages, and limits on deductions. It also ensures leave benefits, a wage allotment of 80%, and compulsory insurance.
READ: Significant new laws in 2024 (Part 2)
Shipowners are responsible for covering all costs related to the repatriation of seafarers who have died or sustained work-related injuries.
Additionally, the law mandates improvements in maritime education and training to ensure that seafarers receive world-class instruction that meets international standards.
Finally, the law caps the fees charged by legal representatives handling seafarers’ claims to a maximum of 10% of any compensation awarded.
RA 12010, Anti-Financial Account Scamming Act
This law prohibits and penalizes the following financial crimes:
a. Money muling activities, which involve using, borrowing, allowing the use of, buying, renting, or lending a financial account. This includes opening a financial account under a fictitious name or using someone else’s identity or documents for the purpose of obtaining, receiving, depositing, transferring, or withdrawing proceeds known to be derived from crimes, offenses, or social engineering schemes.
b. Social engineering schemes, which involve obtaining sensitive identifying information through fraud, leading to unauthorized access to or control of another person’s financial account. This may include misrepresentation or the use of electronic communication to collect such information.
The crimes listed above are considered economic sabotage if committed by 3 or more individuals, against three or more victims, or using mass mailers or human trafficking methods.
The law aims to combat cybercrimes that use technology to defraud individuals and to protect bank accounts and e-wallets from unauthorized access.
It grants financial institutions the authority to place a hold on disputed funds for up to 30 days. This action can be triggered by information from another institution, a complaint from an aggrieved party, or a finding within the institution’s own Fraud Management System. If a financial institution fails to place a hold on the funds, it will be held liable for any loss or damage to account holders.
Additionally, the Bangko Sentral ng Pilipinas is granted limited authority to investigate financial accounts, including bank accounts and e-wallets, involved in prohibited activities. It can also apply for cybercrime warrants and orders related to electronic communications.
RA 12022, Anti-Agricultural Sabotage Act
The law aims to make food products more affordable, improve the livelihood of farmers, and increase tax collection.
It covers specific agricultural and fishery products, including rice, corn, beef, pork, poultry, garlic, onions, carrots, other vegetables, fruits, fish, salt, aquatic products, palm oil, palm olein, raw and refined sugar, and tobacco.
It also mandates record-keeping for businesses engaged in agricultural and fishery products, as well as the registration of businesses involved in warehousing and the operation of cold storage facilities for the covered products.
The law defines the following acts as economic sabotage:
a. Agricultural Smuggling, if the value of the products is at least PhP 10 million;
b. Agricultural Hoarding, which involves stockpiling more than 30% of the normal inventory during abnormal supply situations or in a state of emergency or calamity;
c. Agricultural Profiteering, when agricultural and fishery products are sold at a price 10% or more above the daily price index during abnormal situations or a state of emergency or calamity;
d. Engaging in Cartel Activity, when two or more individuals competing in the same market agree to artificially and unreasonably increase or manipulate the supply or prices of agricultural and fishery products.
2024 has been a busy year for our legislators. While it’s often said that the Philippines has no shortage of laws, but rather a lack of proper implementation and enforcement, we can only hope that these laws will be applied fairly and justly moving forward.
(The author, Atty. John Philip C. Siao, is a practicing lawyer and founding Partner of Tiongco Siao Bello & Associates Law Offices, an Arbitrator of the Construction Industry Arbitration Commission of the Philippines, and teaches law at the De La Salle University Tañada-Diokno School of Law. He may be contacted at jcs@tiongcosiaobellolaw.com. The views expressed in this article belong to the author alone.)
