An official of the Malacañang said those were just memorandums of understanding (MOUs) and not binding contracts.
The Malacañang Palace clarified the agreements with companies in China during President Rodrigo Duterte’s visit were memorandums of understanding (MOUs) and not binding contracts.
This was the clarification of presidential spokesperson Ernesto Abella on Friday following reports that some of the companies that bagged infrastructure deals with the Philippines have tainted records.
At a news conference in Malacañang, Abella emphasized those projects will still go through the process needed like submission of feasibility studies needed for the projects to push through.
“Those are simply understandings that they can submit feasibility studies which will still be subject to public biddings and the necessary processes. So these are not necessarily contracts or commitments to contract,” Abella said.
Members of the Congress expressed concerns following reports that World Bank blacklisted China Road and Bridge Corp. (CRBC) until January 2017 due to bid-rigging.
Duterte was also warned against China CAMC Engineering, an affiliate of China National Machinery Industry Corporation (SINOMACH), the contractor of the anomalous North Rail project.
“Those are not hard contracts. Those are simply an invitation to – What do you call it? – an understanding that they can submit feasibility studies. And these are also open to others, okay? So there are no hard and fast rules that say, ‘Yes we have to accept this particular company’,” Abella added.
CCCC Dredging was another company that signed a deal during Duterte’s four-day state visit to China. The company said to be involved in reclamation activities in the disputed South China Sea which is claimed by Beijing.
Abella said Malacañang has yet to confirm if indeed CCCC Dredging is one of the companies that signed an MOU during Duterte’s visit when asked about the implication of the deal on claim of the Philippines on the West Philippine Sea.
