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Republic Acts

AN ACT REGULATING THE AWARD OF CONTRACTS FOR THE SUPPLY TO

Republic Act No. 5183

REPUBLIC ACT No. 5183

AN ACT REGULATING 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 PROVIDING PENALTY FOR THE VIOLATION THEREOF.

Section 1. No contract either through a public bidding or negotiated contract for the supply to, or procurement by, any government-owned or controlled corporation, company, agency or municipal corporation of materials, equipment, goods and commodities shall be awarded to any contractor or bidder who is not a citizen of the Philippines or which is not a corporation or association at least sixty percent of the capital of which is owned by Filipino citizens, except, as to a citizen, corporation or association of a country the laws or regulations of which grant similar rights or privileges to citizens of the Philippines. In the latter case the Flag Law shall continue to be applicable.

Section 2. Any violation of this Act shall be punished with a fine of not less than five thousand...

Summary of Republic Act No. 5183

Eligibility for Government Contracts (Section 1):
- Contracts for supply or procurement by government entities shall only be awarded to:
  • Filipino citizens, or
  • Corporations or associations with at least 60% Filipino ownership
- Exception: Citizens, corporations, or associations from countries that grant similar rights to Filipinos

Penalties for Violation (Section 2):
- Fine of ₱5,000 to ₱10,000 and imprisonment of 2 to 4 years for individuals
- For corporations or associations, penalties imposed on responsible officials (president, directors, managers, etc.)
- Alien violators shall be deported after serving sentence
- Government officials or employees who violate the law shall be temporarily or perpetually disqualified from public office, in addition to other penalties

Repealing Clause and Effectivity (Sections 3 and 4):
- Any inconsistent laws or parts of laws are repealed
- The Act took effect upon its approval on September 8, 1967

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