On COA’s Audit Observation Memorandum AOM 11-004 (2010) dated 25 February 2011, PNCC invoked the ruling stated in PNCC vs. Pabion& Ramiro (GR No. 131715, 8 December 1999) that PNCC is a private corporation long before the promulgation of Republic Act 9184, and being so, PNCC has its own Board approved policy on procurement. PNCC’s procurement manual is moreover certified under ISO. An examination of PNCC’s procurement manual and the provisions of R.A. 9184 (from which PhilGEPs draw its inspiration) will show that the state’s policy on procurement and that of PNCC are identical, and does not depart from one another. PNCC’s Procurement Manual is consistent with best practices in the industry.

At best, the provisions in the government procurement system can only be applied to PNCC suppletorily.