Approving the Issuance of Position Paper on House Bill Nos. 6760 and 4732 on Insurance Policies of the Government Service Insurance System (GSIS)

March 9, 2018

GPPB RESOLUTION NO. 02-2018

APPROVING THE ISSUANCE OF POSITION PAPER ON HOUSE BILL NOS. 6760 AND 4732 ON INSURANCE POLICIES OF THE GOVERNMENT SERVICE INSURANCE SYSTEM (GSIS)

WHEREAS, on 23 January 2018, the Department of Budget and Management (DBM) Department Liaison Office (DLO) requested the GPPB-TSO to submit comments on House Bill (HB) No. 6760 entitled An Act Further Amending Section 27 of Presidential Decree 1146, Exempting the Reinsurance Policies of the Government Service Insurance System (GSIS) from the Provisions of Republic Act (RA) No. 9184, sponsored by House Speaker Pantaleon D. Alvarez;

WHEREAS, the GPPB-TSO likewise received a copy of HB No. 4732, and although the DLO did not request for comments for this HB, the GPPB-TSO finds it necessary for the GPPB to give its comments because it affects Republic Act No. 9184 and other rules and regulations on government procurement;

WHEREAS, HB No. 6760 authorizes GSIS to reinsure its interests or part thereof to any financially sound and capable private company or reinsurer whether domestic or foreign, or to any insurance institution owned and operated by a foreign government agency, and seeks to exempt from the provisions of RA 9184 the award of reinsurance policies by the GSIS provided that the contract of reinsurance policies awarded shall be the most advantageous for the government of the Philippines.

WHEREAS, HB No. 4732 requires the government to insure with or secure insurance from the GSIS on all properties or assets, contracts or agreements, causes or rights of action, or other insurable interests, to the extent of the interests of the government, with the fund against any insurable risk and pay the premiums thereon, which, however, shall not exceed the premiums charged by private insurance companies; SDAaTC

WHEREAS, under GPPB Resolution No. 38-2017, dated 7 November 2017, the GPPB delegated to the GPPB-TSO, through the Executive Director, the submission of initial comments on Senate and House Bills, subject to the annual and/or quarterly review of the IATWG and the GPPB and its issuance of a Position Paper.

WHEREAS, on 7 and 26 February 2018, the GPPB-TSO attended the deliberation of the House Committee on Government Enterprises and Privatization on various bills concerning insurance of government properties with the GSIS and provided comments thereto but during the deliberation, the House Committee requested for the Position Paper of the GPPB;

WHEREAS, during the 1st IATWG Meeting on 27 February 2017, the GPPB-TSO presented the comments on HB Nos. 6760 and 4732 and after careful deliberation, the IATWG agreed to recommend to the GPPB the confirmation of the submission of Position Paper on HB Nos. 6760 and 4732 containing the findings, comments and recommendations of the GPPB-TSO, subject to additional comments of the IATWG;

WHEREAS, after due deliberation and careful review, the GPPB, during its 1st Regular Meeting on 9 March 2018, adopted the recommendation of the IATWG and confirmed the submission of Position Paper on HB Nos. 6760 and 4732 supporting the insurance of all government properties but not limited to GSIS policies only;

NOW, THEREFORE, for and in consideration of the foregoing, WE, the Members of the GOVERNMENT PROCUREMENT POLICY BOARD, by virtue of the powers vested on US by law, hereby RESOLVE to confirm, adopt, and approve, as WE hereby confirm, adopt, and approve the issuance of Position Paper on HB Nos. 6760 and 4732, copy of which is hereto attached as Annex "A".

This resolution shall take effect immediately.

APPROVED this 9th day of March 2018 at Pasig City, Philippines.

(SGD.) __________________________________

Department of Budget and Management

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National Economic and Development Authority

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Department of Education

(SGD.) ________________________________

Department of Energy

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Department of Finance

(SGD.) _______________________________

Department of Health

(SGD.) _______________________________

Department of Information and

(SGD.) ________________________________

Department of the Interior

(SGD.) ________________________________

Department of National Defense

(SGD.) _______________________________

Department of Public Works and Highways

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Department of Science and Technology

(SGD.) ______________________________

Department of Trade and Industry

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Department of Transportation

(SGD.) _____________________________

Private Sector Representative