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II. THE NORTHRAIL CONTRACT IS VOID FOR FAILURE TO
COMPLY WITH THE PROVISIONS OF THE GOVERNMENT
AUDITING CODE AND THE ADMINISTRATIVE CODE OF 1987;
III. THE NORTHRAIL CONTRACT IS VOID FOR CNMEC’S FAILURE
TO COMPLY WITH R.A. NO. 4566 OR THE “CONTRACTOR’S
LICENSE LAW;”
IV. THE LOAN AGREEMENT (BCLA No. BLA 04055) IS VOID AB
INITIO;
V. PETITIONERS ARE ENTITLED TO THE ISSUANCE OF A WRIT OF
CERTIORARI AND PROHIBITION TO DECLARE AS NULL AND
VOID THE NORTHRAIL AGREEMENTS AND TO PERMANENTLY
PROHIBIT THE IMPLEMENTATION OF THE SAME AND ANY
DISBURSEMENT OF PUBLIC FUNDS FOR SUCH PURPOSE;
VI. PETITIONERS ARE ENTITLED TO A PRELIMINARY INJUNCTION
AND/OR A TEMPORARY RESTRAINING ORDER IMMEDIATELY
ENJOINING THE IMPLEMENTATION OF THE NORTHRAIL
CONTRACT AND THE LOAN AGREEMENT AND THE
DISBURSEMENT OF PUBLIC FUNDS FOR SUCH PURPOSE,
DURING THE PENDENCY OF THIS CASE.
DISCUSSION
I. THE NORTHRAIL CONTRACT IS VOID FOR HAVING BEEN
AWARDED WITHOUT COMPETITIVE BIDDING, IN VIOLATION
OF THE PROVISIONS OF REPUBLIC ACT NO. 9184.
27. The Northrail Contract was awarded to CNMEC without
competitive bidding, in violation of the provisions of Republic Act No.
9184, otherwise known as the “Government Procurement Reform Act,”
particularly Section 10 thereof, to wit:
“Sec. 10. Competitive Bidding.- All Procurement shall
be done through Competitive Bidding, except as provided for
in Article XVI of this Act.”
28. Under Section 4 of the Act, the law covers procurement of
infrastructure projects, described under Section 5(k) as including “the
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