‘Duterte admin will honor contracts between gov’t, private sectors’ | Inquirer Business
Close  

‘Duterte admin will honor contracts between gov’t, private sectors’

/ 09:27 PM June 20, 2016

DAVAO CITY, Philippines – The new administration of President-elect Rodrigo Duterte will respect the sanctity of contracts, incoming Department of Transportation and Telecommunications Secretary Arthur Tugade said, sending a wave of assurance among beleaguered telecommunications companies.

“We have to honor contracts,” incoming Justice Secretary Vitaliano Aguirre II also said in reply to a businessman’s question on the incoming government’s view regarding protecting contracts with the private sector, which usually affect business’ ability to enter into contracts with the government.

ADVERTISEMENT

“Unless the contract violates specific law, then the contract is valid and must be honored at all times,” Aguirre said.

“All contracts, as a matter of course will have to be honored,” Tugade also said.

FEATURED STORIES

“We will assume that the contracts are in order, but in cases when there are provisions in the contract that are found to be spurious, those spurious provisions should be addressed separately but the contract will have to be honored; it will have to be honored,” Tugade said.

The businessman, who belonged to the information technology sector, said Tugade and Aguirre’s answers would reassure large telcos.

He did not name a particular telecom firm but the Philippine Long Distance and Telephone Company (PLDT), which runs the big telecom firm Smart Communications Inc., has recently been questioning the decision of anti-trust body Philippine Competition Commission (PCC) to do a comprehensive review of the contract signed between PLDT and Globe Telecom to buy San Miguel Corporation (SMC)’s telecom firm Vega Telecom Inc. for P69.1 billion, before the contract can be approved.

The telecom firms signed the deal only four days before the implementation of the new anti-trust law’s guidelines. TVJ

Subscribe to our business newsletter

By providing an email address. I agree to the Terms of Use and acknowledge that I have read the Privacy Policy.
Read Next
Don't miss out on the latest news and information.

Subscribe to INQUIRER PLUS to get access to The Philippine Daily Inquirer & other 70+ titles, share up to 5 gadgets, listen to the news, download as early as 4am & share articles on social media. Call 896 6000.

TAGS: Arthur Tugade, Duterte admin, Globe, Government Contracts, Philippine Competition Commission, PLDT, San Miguel Corp., smart, Vega Telecom, Vitaliano Aguirre II
For feedback, complaints, or inquiries, contact us.

Subscribe to our business news

By providing an email address. I agree to the Terms of Use and
acknowledge that I have read the Privacy Policy.



© Copyright 1997-2022 INQUIRER.net | All Rights Reserved

We use cookies to ensure you get the best experience on our website. By continuing, you are agreeing to our use of cookies. To find out more, please click this link.