PRESIDENT Rodrigo Duterte on Tuesday issued a memorandum circular to ensure that all agreements entered into by the government will have a thorough evaluation.
“The Memorandum Circular ensures that all agreements entered into by the government undergo thorough evaluation of all the agencies concerned, specially the DFA which is the lead agency for PH’s foreign relations,” said Presidential Spokesperson Ernesto Abella in a statement. “©”©
“Considering the massive and growing interest of foreign governments and investors in the country, the Office of the President has deemed it appropriate to issue the MC to ensure the effective and efficient coordination among agencies,” said Abella.
Duterte issued Memorandum Circular No. 16, titled: “Requests for Authorization to Negotiate and Sign International Agreements, and Agreements Covering Borrowings, Guarantees, and Foreign Grants.”
Memorandum Circular No. 16 said the President was the sole organ of the country’s foreign relations and the constitutionally assigned chief architect of its foreign policy.
Section 2, Title I, Book IV of Executive Order No. 292 or the Administrative Code of 1987, designates the Department of Foreign Affairs as the lead agency that shall advise and assist the President in planning, organizing, directing, coordinating and evaluating the total national effort in the field of foreign relations.
EO No. 459 (s. 1997) defines an international agreement as a contract or understanding, regardless of nomenclature, entered into between the Philippines and another government in written form and governed by international law, whether embodied in a single instrument or in two or more related instruments, and provides guidelines for the negotiation and ratification thereof.
Section 20, Article VII of the 1987 Constitution provides that 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.
Under Section 3 (5), Title II, Book IV of EO No. 292, the Department of Finance is tasked to undertake and supervise activities related in the negotiation, servicing and restructuring of domestic and foreign debt incurred or guaranteed by the government and its instrumentalities.
Memorandum Circular No. 68 (s. 2004) directs all departments and agencies to submit requests for Presidential issuances and/or approvals only after a complete staff work has been conducted, and submitting therewith the basic papers and all pertinent documents, with a covering Memorandum containing a brief statement of the jurisdiction, legal basis, coordination done with other agencies, potential problems and fund availability, and attaching therewith a draft action document.
To enhance the coordination between and among various departments and agencies in the negotiations and signing of international agreements and agreements covering borrowings, guarantees and foreign grants, the following are hereby ordered:
All heads of departments, bureaus, offices, agencies or instrumentalities of the government, including government-owned-or-controlled corporations and state universities and colleges, are hereby directed to coordinate closely with the DFA prior to the negotiation and signing of international agreements as defined in EO No. 459, and/or with the DOF prior to the negotiation and signing of agreements covering borrowings, guarantees and foreign grants.