Normally, there’s no problem or shame if your father names his company after you or after your initials. That’s part of the freedom of doing business, and the relationships between fathers and their children.

But not all businesses and paternal relations are the same. Some are more important and more beneficial than others.

The problem or shame starts if you are a high government official, making your name or initials too precious and too untouchable. The problem or shame gets worse if your father’s business involves getting government contracts.

I don’t know which gets a bigger problem or shame here. You or the public. Because in this hypothetical example, taxpayer funds are involved.

There are other hypothetical examples, like businessmen becoming lawmakers, and former lawmakers turning into businessmen. In such instances, divestment would prevent any problem.

But if lawmakers continue to do business while in office, and former lawmakers-turned-business mobilize their lawmaking knowledge for the benefit of their business, there would be many problems to the public the lawmaker swore to serve and with the law one pledged to obey.

The recent decision of the new Ombudsman to end strict requirements on the disclosure of Statements of Assets, Liability and Net-worth is thus a welcome development.

Public officials and public servants are required to submit their sworn SALNs annually.

This SALN requirement is contained in Republic Act 6713 titled Code of Conduct and Ethical Standards for Public Officials and Employees: “All public officials and employees, except those who serve in an honorary capacity, laborers and casual or temporary workers, shall file under oath their Statement of Assets, Liabilities and Net Worth and a Disclosure of Business Interests and Financial Connections and those of their spouses and unmarried children under eighteen (18) years of age living in their households.”

The law lays down specifics about this SALN requirement, as to who, how, and when the statement would be filed.

This requirement is also in Section 17 of the Constitution: “A public officer or employee shall, upon assumption of office and as often thereafter as may be required by law, submit a declaration under oath of his assets, liabilities, and net worth. In the case of the President, the Vice-President, the members of the Cabinet, the Congress, the Supreme Court, the Constitutional Commissions and other constitutional offices, and officers of the armed forces with general or flag rank, the declaration shall be disclosed to the public in the manner provided by law.”

The Constitution is clear: The SALN shall not just be submitted. It shall be disclosed to the public. In other words, there’s no use for the public if the SALN is submitted but not disclosed to the public.

As to businesses doing business with government, like contractors, the operating law is the Republic Act 12009 or the New Government Procurement Reform Act.

Titled “Disclosure of Relations,” this law’s Article XV Section 81 states that: [A]ll bidding documents shall be accompanied by a sworn affidavit of the bidder that he or she, any partner, member of the board, or officer of the juridical entity is not related to the Head of Procuring Entity; the members of the Bids and Awards Committee, the Technical Working Group, and the BAC Secretariat, the head of the Project Management Office or the end-user unit or implementing unit, and the project consultants of the Procuring Entity, or of the procurement agent, whichever is applicable, by consanguinity or affinity up to the third civil degree.”

The section continues: “In order to determine the ultimate beneficiary and prevent collusion, the ultimate beneficial ownership of an entity shall be disclosed by the bidder. Failure to comply with the aforementioned provision shall be a ground for the automatic disqualification of the bid... For this reason, relation to the aforementioned persons within the third civil degree of consanguinity or affinity shall automatically disqualify the bidder from participating in the procurement of contracts of the Procuring Entity notwithstanding the act of such persons inhibiting themselves from the procurement process.”

This looks good and pro-active, until we notice that the disclosure requirements is silent about relationships with lawmakers and other public officials. This is a loophole that must be addressed in an amendment to RA 12009. Contracting companies’ officers and owners should be required to disclose their relations of affinity and consanguinity with any lawmaker or public official.

RA 6713 should also be amended to include a perpetual ban on former lawmakers and retired/resigned public officials, and their relatives up to the third degree, from applying for or obtaining big business transactions with government.