Philippines Enacts New Laws to Streamline Government Procurement and Combat Financial Scams
MALACAÑAN PALACE – President Ferdinand R. Marcos Jr. signed two significant pieces of legislation on Saturday: the New Government Procurement Act (Republic Act 12009) and the Anti-Financial Account Scamming Act (AFASA, RA 12010). These laws aim to enhance the efficiency of government procurement and strengthen defenses against financial scams, respectively.
According to Philippines News Agency, the New Government Procurement Act revises and updates the existing Government Procurement Reform Act (RA 9184), reducing the procurement process timeline from three months to 60 days. This act not only standardizes procurement documents but also embraces electronic procurement to streamline operations. President Marcos highlighted the introduction of 11 new procurement modalities under this law, offering government agencies more flexibility in obtaining goods and services. Furthermore, the legislation introduces the concept of the “most economically advantageous responsive bid,” which incorporates rated criteria to evaluate bids beyond just cost considerations.
“This is actually an attempt to consider not only the purely quantitative but the qualitative economic value of any proposal as an alternative to the prevailing practice of which we now do of choosing just the cheapest product, or what we call the lowest calculated and responsive bid,” Marcos explained. He emphasized that this approach would help secure not only the best prices but also the best overall deals for the Filipino people.
The Anti-Financial Account Scamming Act (AFASA) addresses the rising concerns over online financial scams. This new law criminalizes activities such as acting as money mules, engaging in social engineering schemes, and committing acts of economic sabotage. “This is essential in this time as cybercriminals use technology to defraud fellow Filipinos, causing not only personal economic loss through them but also a loss of trust in financial institutions,” said Marcos. He pointed out that the law aims to protect individuals from scams targeting their bank and e-wallet accounts.
AFASA grants the Bangko Sentral ng Pilipinas (BSP) specific powers to investigate these crimes, including the ability to apply for “cybercrime warrants and orders” related to electronic communications involved in financial scams. The law mandates BSP-supervised institutions to implement effective risk and fraud management systems to safeguard their clients’ financial accounts. It also requires a cooperative framework among government agencies, banks, financial institutions, and other stakeholders to ensure robust prosecution and law enforcement.
Both laws are part of Marcos’ priority legislative agenda, as outlined by the Legislative Executive Development Advisory Council. Following the enactment, BSP Governor Eli Remolona Jr. expressed strong support for AFASA, stating, “We express our full support for the new anti-financial account scamming law. This will help us strengthen consumer protection and foster trust and confidence in the Philippine financial system.”