Three business and governance groups are urging Congress to tighten safeguards against hidden ownership, conflicts of interest and circumvention of procurement rules as lawmakers work to finalize a proposed government contracting integrity law.
The Institute of Corporate Directors, Justice Reform Initiative and Management Association of the Philippines welcomed the Senate’s approval of Senate Bill No. 1962, commending Senate President Sherwin Gatchalian and the bill’s co-authors for advancing the measure.
In a joint statement, the groups said stronger safeguards are needed as Congress reconciles the Senate and House versions of the proposed Government Contracting and Procurement Integrity Act.
They recommended requiring companies participating in government procurement to disclose their ultimate beneficial owners, while giving procurement authorities sufficient powers to scrutinize nominee arrangements and complex corporate structures that could conceal relationships among bidders.
“Family-linked procurement creates inherent conflicts of interest, weakens competitive bidding, and undermines public confidence even where transactions are technically compliant,” the groups said.
The organizations also proposed a narrowly defined exemption for passive minority investors in publicly listed companies, along with transition rules for existing lawful contracts that would provide reasonable periods for divestment or orderly wind-downs.
Beyond ownership disclosure, the groups called for clearer enforcement responsibilities, a disqualification registry, stronger whistleblower protections and closer coordination among procurement agencies, the Commission on Audit and the Office of the Ombudsman.
They also urged Congress to strengthen the Anti-Dummy Law by preventing nominees and layered corporate entities from being used to evade ownership restrictions. The groups said definitions should be harmonized with House Bill No. 7919 and existing procurement and anti-graft laws to avoid gaps or conflicting requirements.
The business organizations called on the House of Representatives to move quickly on its counterpart measure, while preserving what they described as the Senate bill’s core prohibition and strengthening its enforcement provisions.
They said the proposed reforms should ultimately protect public funds while promoting fair competition, transparency and accountability in government contracting.
“Congress should preserve SB 1962’s core prohibition, strengthen its safeguards and enforcement mechanisms, and swiftly enact the Government Contracting and Procurement Integrity Act to restore public confidence, protect public funds, and ensure integrity, fairness, and accountability in government contracting,” the groups said.
