2008-09-16

NPM 024-2008

Requesting Entity: Philippine Health Insurance Corporation

Issues Concern: Coverage of the Indemnification Package

 

Details

1. Whether or not Section 72 in relation to Section 73 of R.A. 9184 can be legally interpreted to cover other officers, particularly PhilHealth's selected third level officers whose regular functions "occassionally" include direct involvement and participation in procurement activities.

[S]hould the selected third level officers of PhilHealth assume the role of either a BAC provisional member, or a member of the Technical Working Group or a member of the BAC Secretariat, we find said employees/officers appropriately covered by [Section 73] providing for [free legal assistance, liability insurance, and other forms of protection and indemnification] relative to their participation in PhilHealth's procurement transactions.


2. Whether or not PhilHealth can extend the Directors and Officers Liability Insurance to PhilHealth Board of Directors whose functions similarly expose them to the risk of civil and/or criminal actions as a potential incident of the procurement process.

In the same vein, should the PhilHealth Board of Directors whose functions, as represented, similarly expose them to the risk of civil and/or criminal actions as a potential incident of the procurement process, we find nothing in the provisions of the procurement law which would prohibit extending the same privileges accorded to the procurement officers, to those who are similarly situated. To add, PhilHealth is clearly with mandate to give its employees benefits, whether it be in the form of an indemnification package or liability insurance, which it may deem appropriate and beneficial to its employees, subject, nonetheless, to the availability of funds. This would apparently fall within the ambit of PhilHealth's management prerogative and not sanctioned under the provisions of R.A. 9184.