February 9, 1999

DAR OPINION NO. 08-99

ROEL C . SICCION

General Manager

Phil-Tek International Centre, Inc.

G/F Cayebel Building

1169 Pasong Tamo St.

Makati City

Dear Mr. Siccion:

This refers to your letter dated 06 January 1999 addressed to Assistant Secretary Wilfredo M. Peñaflor of Legal Affairs, and Policy and Planning (PPLAO), seeking for reconsideration of his previous opinion limiting Phil-Tek, Geotech and Siccion Marketing corporations to just one bid, Re: Bidding for the Swede Survey Cadastral Project.

In a Memorandum dated 28 December 1998 of DAR Assistant Secretary Wilfredo M. Peñaflor to Assistant Secretary Carlito M. Añonuevo of Support Services Office (SSO), he opined that Siccion Marketing, Inc., Phil-Tek International Centre, Inc., and Geotech Mercantile Company, respectively, shall be entitled to only one bid and not to three (3) separate bids. The opinion to treat these entities as one is an offshoot of the letter query dated 23 December 1998 of Mr. Salvador N. Enriquez, Jr., President and General Manager of HVJ Trading and Services Inc., seeking clarification on whether or not to allow group or sister companies to participate in the bidding for the Swede Survey Cadastral Project. Mr. Enriquez states that the three (3) aforementioned companies are among the Group of Companies of Siccion. Thus, the participation of these entities is undeniably intended to ensure that the Siccion Group prevails in the bidding.

One of the instructions for bidders as a condition to the award for the Swede Survey Cadastral Project is that "participation is open on equal terms to all natural and legal persons, firms and companies in the Philippines as well as abroad". This unqualified invitation is designed to attract qualified bidders towards competitive bidding among the participants so as to yield the best possible desired bid. Implied from this instruction is that bidders must observe honesty, integrity and fairplay and, above all, the bidding process must be above suspicion so as to dispel any doubts incident thereto.

Considering the above unresolved allegation leveled against Phil-Tek, Geotech and Siccion companies, prudence and equity demand that they should have stayed away from the bidding process until the issue raised therein is rebutted by clear and convincing evidence. However, any attempt to bar Phil-Tek and Geotech from participating in said bidding now seems to be futile because they were nonetheless allowed by the Prequalification, Bids and Awards Committee (PBAC) to participate during the scheduled bidding last 08 January 1999.

In view of the foregoing, the issue of reconsidering the previous opinion dated 28 December 1998 has now become moot and academic by reason of their participation on 08 January 1999 inspite of the said opinion.

Thank you for communicating with us and we hope to have addressed the matter with you.

Very truly yours,

(SGD.) DANILO T. LARA

Undersecretary for Legal Affairs, and Policy and Planning

Copy furnished:

Wilfredo M. Peñaflor

Assistant Secretary

Legal Affairs, and Policy and Planning

Carlito M. Añonuevo

Assistant Secretary

Support Services Office