2010-02-03

NPM 005-2010

Requesting Entity: Office of the Presidential Adviser on the Peace Process

Issues Concern: Approving Authority

 

Details

Clarification on the role of the Assistant Secretary for Finance and Administrative Services as the approving officer for procurement as well as the check signatory and concurrent Chair of the BAC.

[Section 11.2.5 of the revised IRR of RA 9184 and COA Circular No. 2003-004] have been crafted for purposes of, averting possible conflict of interest, affording check and balance, and, ensuring that the procurement and payment functions are segregated, in keeping with the rules and principles of good internal control.

Hence, it is important for the procuring entity to make a determination whether the official designated as the approving authority for the subject contracts is also the same officer who has the authority to issue payment for the same contracts. In both instances, said official cannot be appointed as the BAC Chairman, to avoid conflict of interest and to maintain the integrity of the procurement process and contract implementation.