2016-11-15

NPM No. 094-2016

Requesting Entity: National Irrigation Administration (NIA) Magat River Integrated Irrigation System

Issues Concern: Submission of Special Power of Attorney

 

Details

Whether the NIA Administrator may validly issue a Memorandum Circular which prohibits the use of a Special Power of Attorney (SPA) in the biddings of NIA Projects

 

[I]n the case of a sole proprietorship where the general manager or the sole proprietor himself submits the bid for the company, an affidavit stating that the fact of his representation in the company, and that he possesses the authority to represent and bind the same may be considered sufficient compliance to the subject requirement. On the other hand, if a person other than the general manager or sole proprietor submits a bid for or represents the company, a SPA delegating such authority to the person is sufficient. Failure to submit a document to this effect will merit a rating of "failed" for the subject requirement, and disqualifies the bidder.

 

As to the propriety of the issued Memorandum Circular No. 52, the directive does not augur well with the provisions of Republic Act (RA) No. 9184 specifically on the matter of competition and efficiency. In addition, such issuance limits the bidder`s capacity to act, which could very well be addressed by the Law on Agency, particularly the use of the SPA. Nonetheless, Section 25.3 of the 2016 revised Implementing Rules and Regulations of RA 9184 provides that the Omnibus Sworn Statement executed by the bidder, or its duly authorized representative, in case of sole proprietorship shall be accompanied by the duly notarized SPA.