JV, 4 other senators favor review of govt contracts
Credit to Author: BERNADETTE E. TAMAYO| Date: Wed, 03 Apr 2019 19:00:15 +0000
Five senators on Wednesday said they were in favor of a transparent and fair assessment of all government contracts, including those signed with China, as ordered by President Rodrigo Duterte.
“In particular, the review should focus on concessionaire agreements in water and power-important utilities that impact the daily lives of our people,” Sen. Joseph Victor “JV” Ejercito said.
The President, in calling for a second look at the contracts, was simply doing his job to protect the interest of the nation, Ejercito added.
“We have to be wary of debt traps. The least burdensome for the country should be the option,” he said.
Senate Minority Leader Franklin Drilon said he was amenable to reviewing the contracts with China, as well as bilateral or multilateral international agencies, such as the World Bank, Asian Development Bank and even private firms.
“But I must caution that existing and binding contracts cannot simply be classified as onerous and unilaterally canceled. The government must avail of the procedure outlined in the contract[s]. To do otherwise would constitute a breach of the government’s obligations under the contract,” he added.
Drilon said the government “must respect the sanctity of the agreements, otherwise, no country or entity would enter into contracts with us because we cannot be trusted to honor our obligations.”
“If the government thinks a contract duly executed is disadvantageous or onerous, it can renegotiate its terms, or go to court for its reformation. Or, bring it to the Ombudsman if it violates the anti-graft law. This power to review, moreover, must not be used to harass,” he added.
Sen. Sherwin Gatchalian said the thorough and systematic review of all contracts made by the government with companies and other countries “is the first step toward ensuring that the sovereign and fiscal interests of the Filipino people are preserved and protected.”
“It is also a good exercise to know whether the country is benefiting from past contracts and loans entered into by previous administrations. We should never repeat onerous provisions moving forward,” he added.
“I trust that the Office of the Solicitor General and the Department of Justice will make this review as transparent to the public as possible,” Gatchalian, chairman of the Senate Committee on Economic Affairs, said.
According to him, “[h]owever, the review should not be meant to rescind live contacts. Reneging on contracts will tarnish the reputation of the our country in terms of attracting potential investors and the much needed FDIs (foreign direct investments).”
Sen. Panfilo “Ping” Lacson said, “I assume it (review) includes an inventory of all government contracts, simultaneous with the review. It should not stop there.”
“Those responsible for tying us up with onerous contracts, which are obviously grossly disadvantageous to the government, should be made accountable and made liable,” Lacson added.
Sen. Gregorio “Gringo” Honasan 2nd also agreed with the President’s move.
“But beyond [the] review, performance audit of all multilateral bilateral economic, security engagements and arrangements [should also be conducted] to determine if they have served mutual interests in the short, medium and long term.”
The two water concessionaires of the government have expressed their openness to the government’s review of all government contracts.
The President had directed Solicitor General Jose Calida and Justice Secretary Menardo Guevarra to study, among others, the arbitration case involving Maynilad Water Services Inc. and the Philippine government.
Maynilad welcomed Duterte’s order to delve into the contracts as stipulated in the concession agreement of the Metropolitan Waterworks and Sewerage System with the two water firms signed on Feb. 21, 1997.
The accord ends in 2037.
“Maynilad has always believed in the sanctity of the concession agreement and the merits of this public-private partnership as seen in the vast improvement in the service levels enjoyed by our customers since we took over. We welcome any review of our obligations under this agreement as has been undertaken by our regulator since the start of the concession,” Maynilad said in a statement also on Wednesday.
Manila Water said its doors were open for discussions aimed at ensuring sufficient water supply for residents in its concession area.
“As long-time partners of the government, we are always open to dialogue with the government to find ways to deal with the challenge of ensuring sustainable water security solutions,” Manila Water said also in a statement on the same day.
In October last year, Maynilad scored a victory when Singapore’s Supreme Court upheld a ruling ordering the government to pay P3.44 billion to the West Zone concessionaire for revenue losses caused by delayed rate adjustments.
The ruling came after the government opted to no longer escalate the case to the Court of Appeals, the upper division of Singapore’s high court.
Last month, a water supply shortage hit about 1.2 million households in Metro Manila and neighboring provinces.
Manila Water has an allocation of 1,600 million liters per day (MLD) from Angat Dam.
The company, however, was forced to tap its reserves in La Mesa Dam to make up for the supply deficit, as demand has increased to about 1,750 MLD over the previous weeks.
Maynilad, majority owned by listed Metro Pacific Investments Corp. led by Manuel V. Pangilinan, services the cities of Manila, Pasay, Parañaque, Caloocan, Muntinlupa, Las Piñas, Valenzuela, parts of Makati and Quezon City, as well as portions of Cavite.
The listed utility of the Ayala Group, Manila Water, services the cities of Mandaluyong, Marikina, Pasig, San Juan, Taguig, Makati and and parts of Quezon City and Manila, as well as Pateros town.
It also serves Antipolo City and the Rizal towns of Angono, Baras, Binangonan, Cainta, Cardona, Jala-Jala, Morong, Pililla, Rodriguez, Tanay, Taytay and San Mateo.
The opposition also on Wednesday questioned the President’s order.
“In practice, contracts should be reviewed first before they get signed. Doing otherwise puts the country and our citizens in great jeopardy,” Magdalo party-list Rep. Gary Alejano said.
Former House deputy speaker and fellow Otso Diretso Senate candidate Erin Tañada agreed, saying the order was “far too little, much too late.”
Meanwhile, Foreign Affairs Secretary Teodoro Locsin Jr. also on Wednesday chided the President’s critics who questioned his sincerity in ordering the review to ensure that there were no onerous provisions in the deals.
“So what if there was oversight? He’s being open, ayaw n’yo pa (and still you reject it). He can’t do right, only wrong and yet whenever I offer a selfie with people I just met they insist on doing the fist [sign] for Duterte,” Locsin said on Twitter.
With a reports from JORDEENE B. LAGARE AND GLEE JALEA
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