Econo
Legislators caution against reneging on contracts, support
SENATE l"linority Leader Franktin M.
DIilon cautioned agaimt cancelling
government contracts found to be
onerout after a reviewwas ordered by
Presideni Rodrigo R. Duterte.
"lmust caution that existing and
binding conkacts cannoi simply be
classified as onerous and unilaterally
cancelled," f4r. Drilon said in a state-
ment on Wednesday.
Mr Dutert€ at l"londay,s 36rh cabi-
net meeting directed the Office ofthe
solicitor General and the Department
of Justice to review allgovernment
contracts.
While he supportsthe revi€w 0f bilat-
eml and multilateral agreements enteaed
into by the government, Mr. Drilon said
arbitration
the goyernmentshould act accordjng to
the provisions ofthe contncts
"To do otherwise would constitute
a breach of the governm€rt's obliga-
tions underthe conhact,,,he also said,
noting this (ouldsend signalto other
countries that the philippine govern-
ment does not honorits obliqations.
"lf the government thinks a
contract duly executed js disadvanta-
geous oronerous, it can renegotiate
its
terms, or 90 to court for its reforma-
tion.0r, bring it to the Ombudsmdn
il it violates the anti-graft law This
power to review, moreovet, must not
be used to harass," hesaid.
I
Senator Sherwin Gatchalian con-
curred, saying the review ofthe con-
tractsshould not result in the country,s
. withdrawalfrom dgreements as this
could reduce foreign jnvestment.
"The review should not be meant
to rescind livo contracts. Reneging on
conhacts willtarnish the reputa-
tion of the our country in terms ol
altactii! pbtentiat investors and the
much needed FDI(Foreign Direct
lnvestment," Mr. Gatchaliansaid in a
statement on Wednesday.
He said that io remedya disadvan-
tageous agreem€nt, the government
should follow the contract\ arbitration
provisions. "/-trigger rrg arbitrati0n
proceedings or provisions at doo,
pag-unpan Rung paano dyusin 'yung
,fidi tdmarg provision,', he said in a
chance interview on Wednesday (,'The
government needs to trigger arbitra-
tion proceedings and there discuss
which provisions need to be fixed.,,)
Senator Gregorio B. Honasan llalso
proposed t0 subject all bilateral and
multilaterdl agreements entered into
by the govornment to a performance
audit.
"Beyond review performance
audit 0f ALI multilateral, bilateral
econ0m ic, security engaqements and
arrangements to determine ifthey
have served mutudlint€rests in the
short-, medium-, and long-term,,,
Mr Honasan iold reporters in a
phone message on Wednesday.
Charmaine A. Tidalan
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'Talae z-/51