DOJ Opinion No. 169, s. 1980

DOJ OPINION NO. 169 , s. 1980 November 21, 1980 The Minister of Economic Planning National Economic and Development Authority Manila Sir : This has reference to the Agreement entitled "Amendment No. 3 to Project Loan Agreement No. 492-W-048", dated June 30, 1980, between the Republic of the Philippines (Borrower) and the United States of America, acting through the Agency for International Development (A.I.D.) whereby the Borrower and A.I.D. agreed to amend Project Loan Agreement No. 492-W-048 [Real Property Tax Administration Project], dated May 19, 1978, by (a) increasing the loan amount from $5,600,000.00 to $7,600,000.00 and (b) increasing the Borrower's resources for the project from $2,301,800.00 to $3,198,720.00. Pursuant to the second paragraph of the abovesaid Amendment No. 3, relating to the conditions precedent for disbursement thereunder, opinion is requested showing "that this Amendment No. 3 has been duly authorized and/or ratified by, and executed on behalf of, the Borrower, and that it constitutes a valid and legally binding obligation of the Borrower in accordance with all of its terms." Considering that the herein Agreement consists merely in amending certain sections on the loan amount and the Borrower's resources for the project of Project Loan Agreement No. 492-W-048, which loan agreement was the subject of Opinion No. 106, series of 1978 of this Office, the said opinion insofar as it affirms the statutory authority of the Borrower and the compliance with the legal requirement that the project to be financed by the loan proceeds should be approved by the National Economic and Development Authority and the President of the Philippines would necessarily be applicable to the instant amendatory agreement. Thus, portions of the said opinion pertaining to these two points are incorporated herein by reference. While the President of the Philippines is the official authorized under the enabling act to contract, on behalf of the Republic of the Philippines, foreign loans, credits or indebtedness for the purposes indicated therein, he may designate a representative and clothe him with the authority to do the formal act of signing the agreement. (See Ops., Secretary of Justice, dated Nov. 22, 1966, May 26, 1969, Feb. 22, 1972, Aug. 2, 1974, Aug. 2, 1974, May 26, 1976, Sept. 6, 1978 and April 30, 1980) This was done in the instant case when he authorized, on April 13, 1978, the Honorable Gerardo P. Sicat, Minister of Economic Planning and Director General, National Economic and Development Authority to "sign such agreement and other documents related thereto, with the Agency for International Development covering the aforesaid loan" of "approximately TEN MILLION U.S. DOLLARS ($10,000,000) for the Real Property Tax Administration Project" and invested him "with full and all manner of power and authority for this purpose." (Annex "A") Thus, the signature of Minister Gerardo Sicat on the amendatory Agreement is in pursuance of the authority conferred upon him by the President of the Philippines. Compliance with the ceiling requirement provided in Section 2 of the enabling act with respect to the increased amount of the loan provided in this Amendment No. 3 is shown by the certification of the National Treasurer, dated September 9, 1980, that the additional amount of the loan "is within the ceiling of Five Billion United States Dollars (or its equivalent in other foreign currencies), direct loans, credits or indebtedness which the President [of the Philippines] is authorized to incur under Section 2 of Republic Act No. 4860, as amended." (Annex "B") Premises considered, the undersigned is of the opinion that Amendment No. 3 to Project Loan Agreement No. 492-W-048 has been duly authorized and/or ratified by, and executed on behalf of, the Republic of the Philippines and constitutes a valid and legally binding obligation of the Republic of the Philippines in accordance with all of its terms. Very truly yours, By Authority of the Minister of Justice: (SGD.) JESUS N. BORROMEO Deputy Minister of Justice