Title
Foreign Participation in Gov't Contracts Limited
Law
Republic Act No. 5183
Decision Date
Sep 8, 1967
Republic Act No. 5183 regulates the awarding of contracts in the Philippines, requiring that contracts be awarded to Filipino citizens or corporations with at least 60% Filipino ownership, with penalties including fines, imprisonment, and deportation for violations.

Citizenship and Ownership Requirements for Bidders

  • Contracts can only be awarded to contractors or bidders who are:
    • Citizens of the Philippines, or
    • Corporations or associations with at least 60% Filipino ownership of capital.
  • Exception: Citizens or entities of countries granting reciprocal rights to Filipino citizens.
  • The Flag Law remains applicable in cases of reciprocity.

Penalties for Violations

  • Violators are subject to:
    • Fines ranging from five thousand pesos to ten thousand pesos.
    • Imprisonment from two to four years.
  • When violations involve corporations or associations, penalties apply to responsible officials such as presidents, directors, managers, or managing partners.
  • Foreign nationals found guilty will be deported after serving their sentence without further deportation proceedings.
  • Government officials or employees violating the Act face additional penalties including temporary or permanent disqualification from public office.

Repeal Clause

  • All laws or parts of laws inconsistent with this Act are repealed.

Effectivity

  • The Act took effect immediately upon approval on September 8, 1967.

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