Children reading books in a classroom in southern Philippines. ©World Bank/Jed Regala Films
The enactment of the Government Procurement Reform Act in 2003 was pivotal for Philippine procurement. This legislation not only modernized the processes of bidding and awarding contracts but also empowered civil society organizations (CSOs) to play a vital role as observers in public procurement.
CSOs often act as watchdogs, ensuring that the bidding process is transparent. Their involvement can help to hold government agencies and contractors accountable, reducing the risk of fraud and mismanagement of public funds. By monitoring procurement activities, they can help prevent fraud and misuse of funds, which can lead to cost savings.
Our experience with the Textbook Count initiative in 2003-2007, spearheaded by G-Watch Citizen Action for Accountability along with approximately 40 other CSOs, proved the point. More than just observers, these CSO groups became custodians of public trust, ensuring the delivery of millions of textbooks procured by the Department of Education to over 5,000 public schools and drop-off points. Boy Scouts and Girl Scouts assisted in the counting and physical inspection of textbooks. Their efforts led to a reduction of at least 40% in textbook prices and halved the time required for procurement.
In a way, this is consistent with global experience. In 2013, Transparency International have documented how citizen oversight of procurement activities has led to less corruption, better service delivery, and more savings in contexts as diverse as the Philippines, Pakistan, Germany, and Colombia.
In July 2024, the Philippines has taken another big step forward with the enactment of the New Government Procurement Act. This new legislation strengthens the ability of CSOs to participate in public monitoring of procurement processes and in contract implementation. The new Act also mandates the creation of a registry for procurement observers, allowing procuring entities to invite CSOs to engage in public procurement activities.
The World Bank has been supporting the country in this reform agenda. It is among the first multilateral organizations to support the demand side of social accountability. The Bank established the Small Grants Program in 1983 and the Global Partnership for Social Accountability in 2012 to help build the capacity of CSOs in fostering the monitoring of, and constructive engagement with, public institutions by citizens.
Digitalization of CSO Monitoring
Recently the Government Procurement Policy Board, with World Bank support, launched a Procurement Observers’ Portal, a digital hub where CSO observers can access essential documents such as bids, budgets, technical specifications, and supplier profiles.
Budget Secretary Amenah Pangandaman called the portal a “groundbreaking endeavor” as it facilitates better communication between NGOs and government agencies, allowing for the exchange of alerts regarding upcoming contracts and red flags, as well as providing a platform for NGOs to submit their reports after participating as observers in public bids. For CSO observers, the portal has greatly simplified the task of uploading reports and observations during the procurement process.
The digitalization of CSO monitoring is timely, as public spending has soared from approximately $34 billion in 2010 to $95 billion in 2024, with projections to reach $140 billion by 2028. With this increase in spending, the role of CSOs in overseeing procurement becomes increasingly vital in ensuring the integrity and transparency of government decisions involving taxpayers' money, loans from multilateral and bilateral agencies, and borrowing from private financing.
Increase in the Philippines’ Public Spending, 2010-28
The Philippines is also updating the Procurement Observers' Guide, a resource originally published in 2014 as a component of the Government Procurement Reform Act. The guide details the principles, standards, and procedures for monitoring public procurement, ensuring that CSOs are well-equipped in their role as observers. The forthcoming update includes new sections on digitalization and aligns the guide with recent policy changes.
Digital Tools for Real-Time Monitoring
The continuing increase in public spending makes digital tools such as the portal and the updated guide indispensable for real-time monitoring and management of procurement. Informed by the recommendations of the 2021 Philippines Assessment of Public Procurement System, we view these tools as crucial in expanding the role of civil society organizations, from identifying red flags in procurement to actively monitoring contract implementation.
Our World Bank Procurement Practice Manager for East Asia and the Pacific, Diomedes Berroa, reminded us that the portal is yet another milestone for the country, adding to its many 'firsts’. The Government Procurement Reform Act of 2003 has been globally recognized as a forerunner in civil society engagement, years before the practice was adopted by other countries. He emphasized that the portal is a cornerstone of digitalization, serving as both an enabler and a catalyst for better governance and enhanced delivery of services to citizens.
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