Law Summary

I. Preliminary Investigation

• Legal Principle: All administrative cases requiring a Show-Cause Letter must undergo preliminary investigation by the Audit and Inspection Division.
• Definitions:
  • Show-Cause Letter: A formal document requiring a firm to explain findings from an audit.
• Procedures:
  • Cases are forwarded to the Audit and Inspection Division for investigation.
  • A report detailing findings is prepared by the division.
• Timeframe: Immediate forwarding of cases upon identification.

II. Audit Findings and Notification

• Legal Principle: The Audit and Inspection Division must report findings post-investigation.
• Procedures:
  • If audit findings are adverse, a Show-Cause Letter is issued.
  • Non-adverse findings require written notification to the firm.

III. Response to Show-Cause Letter

• Legal Principle: Firms must respond under oath to the Show-Cause Letter.
• Requirements:
  • Firms have five (5) working days to submit their explanation.

IV. Evaluation of Response

• Legal Principle: The Audit and Inspection Division reviews the firm's response.
• Procedures:
  • A Summary Report is prepared regardless of whether a response is received.
  • The report is forwarded to the Legal Division for consideration.

V. Determination of Prima Facie Case

• Legal Principle: The Legal Division assesses if a prima facie case exists.
• Procedures:
  • The Legal Division has five (5) working days to inform the Audit and Inspection Division of its determination.

VI. Preparation of Charge Sheet

• Legal Principle: If a prima facie case is found, charges are formally prepared.
• Requirements:
  • The Charge Sheet will include audit findings and specific GTEB rules violated.
  • Affidavits of prosecution witnesses and case materials are included.

VII. Notice to Respondents

• Legal Principle: Respondents must be notified of the charges and hearing.
• Procedures:
  • A Notice to File Reply and Notice of Hearing is sent to the firm.
  • Respondents must file an Answer within fifteen (15) working days.
• Consequences:
  • Failure to reply results in being declared in default, leading to a decision based solely on prosecution evidence.

VIII. Hearing Procedures

• Legal Principle: Hearings allow for witness testimonies and cross-examinations.
• Procedures:
  • Affidavits serve as direct testimony; witnesses must appear for cross-examination.

IX. Stipulation of Facts

• Legal Principle: Efforts to expedite proceedings through stipulation are encouraged.
• Requirements:
  • Prosecution and defense should agree on facts and issues at the initial hearing.

X. Suspension of Bidding

• Legal Principle: Suspension of bidding rights can occur under certain conditions.
• Requirements:
  • Suspension begins sixty (60) days after initial hearing if caused by the respondent.

XI. Hearing Panel Report

• Legal Principle: The Hearing Panel must submit a report post-evidence presentation.
• Timeframe:
  • Report due within thirty (30) working days, extendable by ten (10) days under justified circumstances.

Key Takeaways

• The Revised Rules establish a structured process for administrative proceedings against garment firms.
• Timely responses and adherence to procedural requirements are critical to avoid default.
• The process emphasizes the importance of documentation and formal notifications to ensure compliance with the rules.
• The outcomes of these proceedings can significantly impact a firm's operational capabilities, particularly regarding bidding rights.