Question & AnswerQ&A (Republic Act No. 5183)
Republic Act No. 5183 regulates the award of contracts for the supply to, or procurement by, any government-owned or controlled corporation, company, agency, or municipal corporation of materials, equipment, goods, and commodities, and provides penalties for violations thereof.
Contracts may only be awarded to contractors or bidders who are Filipino citizens or corporations/associations where at least 60% of the capital is owned by Filipino citizens, except when the country of the foreign citizen or corporation grants similar rights to Filipinos.
Yes, this law applies to contracts awarded either through public bidding or negotiated contracts.
Violators face a fine of not less than five thousand pesos and not more than ten thousand pesos and imprisonment of not less than two years and not more than four years.
The penalty shall be imposed upon the president, director or directors, managers, managing partner, or other responsible officials of the corporation or association.
Any alien who violates this Act shall, upon completion of the sentence, be deported without further proceedings by the Deportation Board.
In addition to the principal penalty, government officials or employees found guilty may be temporarily or perpetually disqualified from holding any public office.
Yes, the Flag Law continues to apply when the law or regulations of the foreign country grant similar rights or privileges to Filipino citizens as provided in this Act.
The law covers government-owned or controlled corporations, companies, agencies, and municipal corporations.
This Act took effect upon its approval on September 8, 1967.