G.R. No. 253688 , February 8, 2023
MEHOL K. SADAIN, PETITIONER, VS. OFFICE OF THE OMBUDSMAN, RESPONDENT.

FACTS

The case involves the selection of a non-governmental organization (NGO) for a project funded by former Senator Gregorio Honasan II’s Priority Development Assistance Fund (PDAF). Petitioner Mehol K. Sadain, along with the National Commission on Muslim Filipinos (NCMF), was involved in the accreditation and selection process of Focus on Development Goals Foundation, Inc. (Focus) as the partner NGO. The issue revolves around whether public bidding was required for this selection, specifically under Government Procurement Policy Board (GPPB) Resolution No. 12-2007.

ISSUE

Whether GPPB Resolution No. 12-2007, which prescribes guidelines for NGO participation in public procurement, is applicable to the selection of an NGO for a PDAF-funded project, thereby requiring public bidding.

RULING

No. GPPB Resolution No. 12-2007 is not applicable. The Resolution’s Annex A, entitled “Guidelines on Non-Governmental Organization Participation in Public Procurement,” limits its scope and application to situations where “an appropriation law or ordinance specifically earmarks an amount for projects to be specifically contracted out to NGOs.” In this case, the funds were sourced from Senator Honasan’s PDAF under the 2012 General Appropriations Act (GAA), which did not contain a specific appropriation earmarked for NGOs. Therefore, public bidding was not required. The applicable rule was Commission on Audit (COA) Circular No. 2007-001, which allows the accreditation and selection of an NGO partner through a committee created for the purpose, such as the NCMF’s “PDAF Accreditation Committee,” which conducted the evaluation of Focus. Furthermore, the project was implemented prior to the Supreme Court’s Decision in Belgica v. Hon. Exec. Sec. Ochoa, Jr., which declared certain PDAF-related practices unconstitutional but applies prospectively. Thus, Sadain cannot be faulted for adhering to the then-prevailing system, and he and the NCMF complied with the relevant COA guidelines by conducting their own evaluation beyond the Senator’s endorsement.