Leila seeks probe on pacts signed in China

MANILA, Philippines - Sen. Leila de Lima said President Duterte is digging himself into a hole in efforts to win over China as the country’s new major strategic ally.

De Lima, whom the President has subjected to public scrutiny over her alleged links to illegal drug trade in the national penitentiary, raised two issues against Duterte: the bilateral deals signed during his recent China state visit as well as his statements about the disputed Panatag or Scarborough Shoal.

The senator said she would file a resolution calling for an inquiry into the agreements signed in China, including the loans committed to the Philippines.

Duterte’s state visit to China was touted to have generated $24 billion in future investments and soft loans. But De Lima said she suspects these are “tied loans,” thus illegal based on Philippine laws.

Under tied loans, De Lima explained, the lender would dictate the terms in implementing the projects to be financed, including the contractors to be hired. 

“This is the essence of tied loans, which is unconstitutional and illegal under our laws,” De Lima said, referring to the Government Procurement Reform Act. 

De Lima pointed out that all projects implemented in the country must go through regular public bidding procedures for the contractor, including the procurement of needed supplies and materials.

De Lima said the Duterte administration might classify the deals with China as executive agreements just to circumvent the procurement law.  

She noted that tied loans are unconstitutional, as stated by Supreme Court Senior Associate Justice Antonio Carpio in a dissenting opinion he issued for one of the cases taken up by the court.

De Lima said the agreements, even if they were just memorandums of understanding, should be scrutinized carefully to see if these contained provisions not compatible with Philippine laws. 

“We must review these because they are the root of fraudulent practices,” she said.