PRESIDENT Rodrigo Duterte's directive to review contracts entered into by each government office covers all deals with private firms and other countries, MalacaƱang said on Tuesday, April 2.
The President issued the order to ensure that all government contracts are advantageous to the Filipino people, Presidential Spokesperson Salvador Panelo said in a press conference.
Panelo explained that Duterte had given such directive deal upon learning that the government was barred from "intruding into the terms of the contract" with private water concessionaire Maynilad Water Services, which eventually resulted in its defeat in the arbitration case lodged in Singapore.
The ruling of Singapore high court, which became final in October 2018, has favored the Maynilad, as it compels the Philippine government to pay P3.42 billion to the water concessionaire for not implementing a water tariff hike from March 2015 to August 2016.
From now on, all of the government's existing contracts will be subject to scrutiny by the offices of the Solicitor General and the Department of Justice, as well as the legal departments.
"The President could not believe that how can a contract like this entered [into] by the government [impose] a ban on the government to take government action, with respect to such item as water services?" the Palace official said.
"He directed the Solicitor General, the Department of Justice Secretary, and all legal departments to review, evaluate, scrutinize every contract entered by the government and/or each agency with private corporations and/or countries," he added.
Panelo said the President has wanted to remove all "onerous" provisions included in any contracts that "will put the Filipino people [at] disadvantage or [are] in violation of the Constitution."
He stressed that contracts found to be illegal or unconstitutional would either be amended or revoked.
"We'll have to examine every provision of the contract. Anything that is against public policy or against the law or against the Constitution, we will have to strike down," Panelo said.
Panelo said concerned agencies were ordered to "immediately" review the contracts, including the Philippines's $62-million deal with China.
"It will be a continuing investigation on the contracts," he said.
"The President is warning all and sundry that for as long as he is the President, he will not allow anything that will go against the interest of the Filipino people. He will use the Constitution, all the powers given [to] him, to protect the Filipino people and to serve them faithfully," Panelo added.
Panelo expressed optimism that Duterte's latest directive would not scare potential investors in the country.
He told investors not to worry and to instead take the President's order as an advance warning that they should not engage in an unlawful contract.
Asked if Duterte's pronouncement has an impact to any firms planning to invest in the country, Panelo said: "No, I don't think so because as I have said some time ago, the considerations being looked at by potential investors are one, the peace and order situation, the lack of bureaucracy or bureaucratic red tape, and the business climate."
"On the contrary, in fact, it will forewarn them that they cannot enter into any agreement that is in violation of the Constitution or public policy. Alam na nila 'yun kaya hindi nila papasukan 'yun (They're forewarned so they would not enter into an illegal deal)," Panelo added. (SunStar Philippines)