Delicana 09:17 AM, Oct 05, 2022
Hi! I would like to inquire about the following:
1. Is the rule on the provision of Liability Insurance for BAC Members mandatory, directive or merely optional?
2. Are ALL government agencies and instrumentalities required to provide Liability Insurance for their BAC Members?
3. Who is mandated to process the purchase of Liability insurance for BAC Members (if any)?
Officer 11:56 AM, Oct 20, 2022
October 20, 2022
Dear Mr. Delicana,
Thank you for your request dated Oct 05, 2022 09:17:51 AM under Executive Order No. 2 (s. 2016) on Freedom of Information in the Executive Branch.
You inquired about the following:
1. Is the rule on the provision of Liability Insurance for Bids and Awards Committee (BAC) Members mandatory, directive or merely optional?
2. Are all government agencies and instrumentalities required to provide Liability Insurance for their BAC Members?
3. Who is mandated to process the purchase of Liability Insurance for BAC Members?
Response to Request
Your FOI request is approved.
It must be emphasized that Section 73 of Republic Act No. 9184 or the Government Procurement Reform Act required the establishment of an equitable indemnification package for public officials serving the BAC. Such indemnification may be in the form of free legal advice, liability insurance, and other forms of protection and indemnification for all costs and expenses incurred by persons in connection with any civil or criminal action, suit or proceeding to which they may be, or have been made, a party by reason of the performance of their functions or duties, unless they are finally adjudged in such action or proceeding to be liable for gross negligence or misconduct or grave abuse of discretion.
Based therefrom, the GPPB has issued the Guidelines for Legal Assistance of BAC Members and its Supporting Staff, or Appendix 18 of the 2016 revised Implementing Rules and Regulations of Republic Act No. 9184.
Finally, hereunder is our response to your queries:
In this jurisdiction the tendency has been to interpret the word "shall" as the context or a reasonable construction of the statute in which it is used demands or requires. While Section 73 of RA No. 9184 required the GPPB to establish an equitable indemnification package, it only made mention of liability insurance as one of the forms which may be granted by the Procuring Entity to form part of its indemnification package for its procurement personnel. Thus, the law did not specifically require liability insurance for procurement personnel.
If the PE decides to provide liability insurance to form the equitable indemnification package for procurement personnel, it shall be the responsibility of the PE concerned to procure and maintain adequate liability insurance for and in their behalf. The funds to be used for its grant shall be taken from the agency’s annual appropriation.
Your right to request a review
If you are unhappy with this response to your FOI request, you may ask us to carry out an internal review of the response by writing to Executive Director, Atty. Rowena Candice M. Ruiz, thru e-mail address at firstname.lastname@example.org. Your review request should explain why you are dissatisfied with this response and should be made within fifteen (15) calendar days from the date when you received this letter. We will complete the review and tell you about the result within thirty (30) calendar days from the date when we receive your review request.
If you are not satisfied with the result of the review, you then have the right to appeal to the Office of the President under Administrative Order No. 22 (s. 2011).
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Legal Assistance and Indemnification.pdf