R.A No. 7160 and its significant role in local governance. These rulings provide a
compelling precedent for the broader classification of all leagues and federations
of local elective officials as government entities
11.3 Additionally, the PCL derives its existence and authority from R.A No. 7160. It
receives government funding, performs public functions, and maintains structural
ties to official government operations, making it a government institution rather
than a private organization. The Commission on Audit (COA) Resolution No.
2011-014 dated December 13, 2011, further reinforces this status by subjecting
these leagues and federations to government audit, confirming their accountability
under state regulations.
11.4 R.A No. 9184, also known as the “Government Procurement Reform Act” applies
to the procurement of infrastructure projects, goods, and consulting services,
regardless of the source of funds, whether local or foreign, by all branches and
instrumentalities of government, its departments, offices and agencies, including
government-owned and/or -controlled corporations and local government units,
subject to the provisions of Commonwealth Act No. 138.
11.5 Section 10 of R.A No. 9184 mandates that all procurement must be conducted
through competitive bidding, except as provided in Article XVI of this Act.
Furthermore, Section 4 of PD No. 1445 requires that claims against government
funds be supported by complete documentation.
11.6 Verification of Official Receipt (OR) No. 6744545 dated February 28, 2023,
confirms that the Municipality of Sibulan received a check amounting to
₱800,000.00 from the City Government of Tanjay as membership dues for the
PCL for Calendar Year 2023. The funds were remitted to Sibulan because the PCL
Treasurer at the time was a Sangguniang Bayan Member of the Municipality. On
March 1, 2023, the check was deposited into the Municipality’s Trust Fund
account. A review of Disbursement Voucher (DV) No. 221-22-03-0132 dated
March 17, 2023, revealed that the Municipality subsequently issued a check for
₱800,000.00 payable to the PCL.
11.7 However, a review of the documents submitted by the Office of the Municipal
Accountant on March 17, 2025, for the liquidation of funds transferred to PCL did
not include any bidding documents or any records indicating that an alternative
mode of procurement was used. In addition, basic documentary requirements such
as DVs, Purchase Requests, Purchase Orders, Acceptance and Inspection Reports,
Requisition and Issue Slips, and Activity Designs were not submitted. Instead, the
documents provided consisted of ORs with the following details:
Establishment OR No. Date Amount Particulars
Supplier 1 228 06/05/23 ₱175,000.00 Various office supplies
Supplier 2 002102 07/03/23 150,000.00 Cellcards
Trophies, chairs and
Supplier 3 09293 05/23/23 100,730.00
balls
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