To ensure a higher level of transparency and accountability in public spending, Department of Budget and Management (DBM) Secretary Amenah Pangandaman is pushing for stricter rules against erring contractors, suppliers, and consultants.

Under the New Government Procurement Act (NGPA), contractors or bidders repeatedly violating procurement regulations will face lifetime blacklisting from government projects.

This blacklisting provision under the law aims to ensure that public funds are awarded only to reliable and reputable companies, thereby preventing any form of waste, abuse, or misuse.

“With our new procurement law, we are modernizing and tightening the implementation of transparency in the procurement process to fight corruption,” Pangandaman said in an Oct. 8 statement.

Pangandaman explained that this includes making contract implementation details accessible, requiring beneficial ownership declarations to avoid conflicts of interest, and strengthening participatory governance.

“One of the main provisions of the NGPA is the imposition of heavier penalties on private entities that neglect or violate their government contracts,” the DBM said.

There are two levels of penalties outlined in the new law before cases are escalated to blacklisting.

Corrective measures are the first level, which involve giving erring suppliers or contractors a chance to fix deficiencies through fines, mandatory retraining, and inclusion in a performance watchlist to track compliance.

Suspension is the second level, which bars violators from participating in government bidding—one year for the first offense and two years for the second—for procedural lapses such as missing bid requirements or failing to submit mandatory documents.

Blacklisting is the final level, where companies found guilty of serious violations, such as fraud, falsification, collusion, or any form of conspiracy, will be barred from participating in government bidding for one to two years.

Additionally, the NGPA introduces blacklisting with perpetual disqualification, which permanently bars companies with serious or repeated violations from participating in any government bidding.

“Once a company is subjected to this penalty, it will no longer be allowed to transact with any government agency,” the DBM said.

“These cases may also serve as grounds for criminal cases, especially if there is evidence of fraud or misuse of public funds,” it added.

The new provisions are part of the government’s reform drive to ensure proper use of funds and rebuild public trust in state-funded projects, backed by an integrated procurement monitoring system.