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And the Loan Agreement likewise requires that: 11
“This Agreement shall be governed by and construed
in accordance with the laws of the People’s Republic of
China.”
Hence, neither constitutes an agreement governed by international law
within the purview of the Vienna Convention.
None of the agreements is an executive agreement
38. None of the agreements can be considered an executive
agreement either, which is defined in Executive Order No. 459 (dated
November 25, 1997), Providing for the Guidelines in the Negotiation of
International Agreements and its Ratification, as “similar to treaties
except that they do not require legislative concurrence.” Said definition
only relaxes the requirement of Senate concurrence which is required by
the Constitution, but leaves in place the requirement that it be an
international agreement entered into by the Philippines, i.e., that it be
concluded between states in written form and governed by international
law, as defined by the Vienna Convention.
II.
THE NORTHRAIL CONTRACT IS VOID FOR FAILURE TO
COMPLY WITH THE PROVISIONS OF THE GOVERNMENT
AUDITING CODE AND THE ADMINISTRATIVE CODE OF 1987;
39. Both the Government Auditing Code of the Philippines
(Presidential Decree No. 1445) and the Administrative Code of 1987
(Executive Order No. 292) specifically proscribe the making of any
contract by any government agency involving the expenditure of public
11 Please see Section 15.1.
18