republic of the philippines - Philippine Center for Investigative ...

44. CNMEC cannot therefore engage as a contractor in the
Philippines and the Northrail Contract is therefore void for failure to
comply with R.A. 4566.
IV.
THE LOAN AGREEMENT (BCLA No. BLA 04055) IS VOID AB
INITIO.
45. Article VII, Section 20 of the Constitution provides:
Section 20. The President may contract or guarantee
foreign loans on behalf of the Republic of the Philippines
with the prior concurrence of the Monetary Board, and
subject to such limitations as may be provided by law. The
Monetary Board shall, within thirty days from the end of
every quarter of the calendar year, submit to the Congress a
complete report of its decisions on applications for loans to
be contracted or guaranteed by the Government or
government-owned and controlled corporations which would
have the effect of increasing the foreign debt, and containing
other matters as may be provided by law. (Emphasis
supplied.)
46. The Loan Agreement as it stands, and its schedules and
annexes, contains no certification that it has been approved or concurred
to by the Monetary Board prior to its execution, a requirement that is
unequivocally made in the above-quoted provision of the Constitution.
This flaw renders the agreement not only illegal but unconstitutional,
which renders it and other contracts flowing from it, such as the
Northrail Contract, null and void.
V. PETITIONERS ARE ENTITLED TO THE ISSUANCE OF A WRIT
OF CERTIORARI AND PROHIBITION TO DECLARE AS NULL
AND VOID THE NORTHRAIL AGREEMENTS AND TO
PERMANENTLY PROHIBIT THE IMPLEMENTATION OF THE
21