Malacañang confirmed that loan agreements and contracts between Philippines and China will also undergo scrutiny, evaluation and review following the directive of President Rodrigo Duterte to Solicitor General, the Department of Justice Secretary and all legal departments.

“Well definitely, every contract,” Panelo said when asked about the inclusion of Chinese loans and contracts in the legal review ordered by President Duterte.

According to Sec. Panelo, the president “found out that during the Ramos administration, there was a contract between Maynilad and the Republic of the Philippines” of which in that contract, the government was prohibited into interfering, intruding into the terms of the contract.

Panelo said, that’s why the Philippine government lost in the arbitration tribunal and was made to pay around P3.5 billion because according to the ruling, the government intervened, and by reason of the intervention, Maynilad suffered damages.

The presidential spokesman added, President Duterte will not allow repetition of onerous provision in any contract that “will put the Filipino people in disadvantage or in violation of the Constitution.”

“Yes, because even if it is executed if it is in violation of the Constitution, you can rescind it, you can strike it down. And ask the court to rescind it,” Sec. Panelo added.