Continuing System of Review by the President of Privileges Granted by the State

February 19, 1980

PRESIDENTIAL DECREE NO. 1677-A

PROVIDING FOR A CONTINUING SYSTEM OF REVIEW BY THE PRESIDENT OF CONTRACTS, FRANCHISES, PERMITS AND OTHER FORMS OF PRIVILEGES GRANTED BY THE STATE

WHEREAS, Section 12 of Article XVII of the 1973 Constitution, as amended, provides that "All treaties, executive agreements, and contracts entered into by the Government, or any subdivision, agency, or instrumentality thereof, including government-owned or controlled corporations, are hereby recognized as legal, valid, and binding. When the national interest so requires, the incumbent President of the Philippines or the interim Prime Minister may review all contracts, concessions, permits or other forms of privileges for the exploration, development, exploitation, or utilization of natural resources entered into, granted, issued, or acquired before the ratification of this Constitution";

WHEREAS, under the same Constitution, the incumbent President/Prime Minister is vested with the legislative power and authority to act on contracts, franchises for public utilities, titles to land and similar matters which are subject to legislative approval;

WHEREAS, an implementing law is necessary to carry out the function and duty of the President referred to in Section 12 of the Constitution and in relation to such contracts, franchises and other similar matters which are within the scope of the President's legislative functions and responsibilities during the period of transition;

NOW, THEREFORE, I, FERDINAND E. MARCOS, President of the Philippines, by virtue of the powers vested in me by the Constitution, do hereby order and decree:

SECTION 1. The President of the Philippines shall review all contracts, concessions, permits or other forms of privilege for the exploration, development, exploitation or utilization of natural resources; all franchises for public utilities; foreign exchange borrowings converted into pesos, otherwise known as swaps; Central Bank rediscounting arrangements; titles to land; construction and architectural design contracts; and other forms of contract entered into by the government or any of its sub-divisions, agencies or instrumentalities, including government-owned or -controlled corporations;

SECTION 2. For the purpose of undertaking the review provided for in the foregoing section, all heads of office, including national government agencies, government-owned or -controlled corporations, and local government units, shall compile contractual agreements existing as of the date of approval of this Decree and shall submit these for review by the Cabinet Standing Committee, which shall submit its findings and recommendations for the President's consideration. Contracts which may hereafter come into existence shall likewise be submitted for review in the same manner in accordance with such procedure and timetable as may be approved by the President.

The Office of the President may also assign to the head of a ministry or office any such contract, concession, franchise or similar instrument as relates or pertains to, or is under the jurisdiction of, said ministry or office for proper study, comment and recommendation, after which the head of the ministry or office shall submit his findings and recommendations to the Cabinet Standing Committee.

The Cabinet Standing Committee shall, after conducting its own analysis and review, submit its findings and recommendations to the President for approval.

SECTION 3. All laws, decrees, orders, rules or regulations which are in conflict or are inconsistent with the provisions of this decree are hereby repealed or modified accordingly.

SECTION 4. This decree shall take effect immediately.

DONE in the City of Manila, this 19th day of February, in the year of Our Lord, Nineteen Hundred and Eighty.