Leftists to SC: Declare $62-million Chico River irrigation loan agreement “unconstitutional, void”

Leftists on Thursday, April 4, urged the Supreme Court to declare as void and unconstitutional the $62-million Chico River irrigation loan agreement./Moira Encina/Eagle News/

(Eagle News)–Leftists on Thursday, April 4, urged the Supreme Court to declare as unconstitutional and void the $62-million Chico Irrigation River Pump irrigation loan agreement.

In their petition, Makabayan Chairman Neri J. Colmenares, Bayan Muna Partylist Rep. Carlos Isagani T. Zarate, Anakpawis Partylist Rep. Ariel B. Casilao, Gabriela Women’s Partylist Reps. Emerenciana A. De Jesus and Arlene D. Brosas, Act Teachers Partylist Reps. Antonio L. Tinio and Francisca L. Castro, Kabataan Partylist Rep. Sarah Jane I. Elago, Kilusang Magbubukid ng Pilipinas Chairperson Danilo H. Ramos, and Kalinga leader Elma A. Tuazon also asked the High Court to issue a temporary restraining order and/or writ of preliminary injunction to enjoin the respondents from enforcing the loan agreement, which they said was violative of the Constitution.

Named as respondents in the petition were  President Rodrigo R. Duterte, Executive Secretary Salvador C. Medialdea, Finance Secretary Carlos G. Dominguez III, National Economic and Development Authority Secretary Ernesto M. Pernia, Justice Secretary Menardo I. Guevarra and National Irrigation Authority Administrator Ricardo R. Visaya.

According to the petitioners, the loan violated the Constitution because  it “contains a confidentiality clause” that is contrary to the constitutional provision that “provides for the right to information of the Filipino people on foreign loans contracted by the government.”

They added the loan was also “approved after-the-fact by the Monetary Board which is not in conformity with the 1987 Constitution that requires prior concurrence” and  was “conditioned on the signing of a contractor’s agreement awarding the project to a Chinese construction firm and, thereby, doing away with the country’s procurement laws and the Filipino First Policy of the 1987 Constitution.”

“It hauls the country to a Chinese arbitration tribunal, officiated by Chinese arbitrators using Chinese laws, in violation of Art. II, Sec. 7 of the Constitution,” and
“contains an express waiver of sovereign immunity over the State’s patrimonial assets in favor of a foreign government in violation of the Constitution,” they said.

Senior Associate Justice Antonio Carpio had warned the Chinese could seize the oil and gas in Reed Bank, allegedly patrimonial assets, if the loan was not paid by the Philippines under the terms of the agreement.

But the Palace denied this, saying these were not patrimonial assets as there was no enabling law nor proclamation that declared them as such.

The Palace added in the first place, the country would not default on the loan.