Duterte orders review of China loans, other gov’t contracts

President Rodrigo Duterte in a Cabinet meeting last April 1, 2019. Malacañang Photo

MANILA – President Rodrigo Duterte has ordered the members of his Cabinet to review all the contracts entered to by the government, including with China, and remove all onerous provisions.

Presidential spokesman Salvador Panelo said on Tuesday that Duterte issued the directive to the Office of Solicitor General and Department of Justice during the Cabinet meeting held last Monday evening at the Malacañang Palace.

Panelo added that Duterte said during the meeting that government contracts can be cancelled and certain provisions in the deals can also be removed if it is proven to be burdensome to the country.

“The Chief Executive instructed all agencies to check and review all contracts entered into and remove onerous provisions that might be detrimental to the lives of the Filipinos,” Panelo said in a statement.

“The President issued a directive to the Solicitor General and Department of Justice to study all contracts entered by the government to find out whether there are provisions that are onerous and against the interest of the Filipino people,” he added.

“And to do something about it, either to rescind or to cancel those contracts or to sue people who are behind those contracts which are unconstitutional,” the Palace spokesman further said.

The review of the government contracts were ordered after Senior Associate Justice Antonio Carpio issued warnings last week against the controversial loan deals with China.

According to Carpio, the Philippines’ patrimonial assets are being used as collateral in the China-funded Kaliwa Dam Project and the Chico River Irrigation Pump Project.

China can seize in case the Philippines is unable to pay the loans and the patrimonial assets and assets dedicated to commercial use through arbitration will be in it’s favor./PN

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