NPM No. 113-2015

Requesting Entity: Fishers Multi-Purpose Cooperative (FMPC)

Issues Concern: Conflict of Interest on Government Employees' Cooperative



Basis of the prohibition against government employees cooperative to participate in the procurement within its agency on the ground of conflict of interest.

[C]onsidering the principles of competition, transparency and accountability as clearly expressed in RA 9184 and its IRR and the provisions on conflict of interest found in RA 6713, the GPM and the PBDs, it is our considered view that government employees' cooperatives should be disqualified from participating in the procurement within their agencies because it poses undue advantage in terms of access to information, which are generally not available to other bidders, and it sows suspicion of partiality or familiarity among market operators participating in the procurement process. This notwithstanding, government employee's cooperatives may still participate in the procurement opportunities of other procuring entities. It bears stressing that the determination of the existence of a conflict of interest is essentially and primarily lodged with the BAC of the PE.