PH Senate passes bill banning officials' relatives from gov't contracts

MANILA — The Senate on Wednesday passed on third and final reading a landmark measure barring relatives of certain public officials and government personnel from securing government contracts.

Voting 15–0 with no abstentions on September 2, 2026, the chamber approved Senate Bill No. 1962, officially known as the Government Contracting and Procurement Integrity Act.

Broad Conflict-of-Interest Ban

The bill prohibits relatives of covered public officials up to the fourth civil degree of consanguinity or affinity (including parents, children, siblings, first cousins, and in-laws) from participating in any government procurement.

The anti-nepotism ban applies broadly across:

Procurement: Contracts for supplies, materials, machinery, equipment, services, and infrastructure projects.

Agreements: Joint ventures, public-private partnerships (PPPs), and other arrangements involving public funds or government property.

Executions: Subcontracting, consortiums, and similar business structures designed to carry out public contracts.

Striking at Corruption at Its Source

Senator Francis “Chiz” Escudero, the bill's principal sponsor, stressed that the restrictions aim to prevent officials from manipulating procurement rules to enrich their families.

"Enacting this measure will help put an end to the systemic gaming of procurement rules for the benefit of a favored few and their families. It removes temptation, shuts the side door, and makes it clear that government contracts are not a family affair," Escudero said during plenary session.

Escudero emphasized that curbing administrative discretion is key to stopping official graft.

"It narrows the discretion that enables corruption. Because if you minimize discretion, you minimize corruption. When you eliminate the discretion to favor relatives and kin, you strike at corruption at its source and help ensure that public procurement truly serves the public good," he added.

Strict Affidavits & Steep Penalties

To prevent loopholes and circumvention, private firms bidding for government projects must submit a sworn affidavit declaring that their board members, key officers, and beneficial owners are not related to covered officials within the prohibited degree.

The bill outlines strict criminal and administrative penalties for non-compliance:

Private Contractors: Face 1 to 3 years imprisonment, a minimum fine of ₱100,000, and perpetual disqualification from future government procurement.

Public Officials: Face 1 to 3 years imprisonment, a minimum fine of ₱100,000, and perpetual disqualification from holding public office.