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    Litigation worries business
    PRESIDENT SETS FIRST MEETING, GETS S.C. CONSENT FOR NEW COUNCIL
     
    By Mia M. Gonzalez
    Reporter

    PRESIDENT Arroyo is preparing to call a meeting that will have the judiciary, executive and legislature poring over the problem of how to harmonize laws and regulations with the situation obtaining on the ground so as to help improve the business climate.

    Questions such as, “Is the action of the court and the pace of court action on big government projects tied up in litigation so that investors are discouraged?” would be on the agenda.

    The body will be similar to the Legislative-Executive Development Advisory Council (Ledac). Mrs. Arroyo has ordered the solicitor general to review whether a law is needed to set up a “Legislative-Executive-Judiciary Advisory Council” and make other necessary legal preparations.

    Solicitor General Agnes Devanadera reported that the President’s directive also included instructions for her to plan the first meeting, to be held “most likely in September.”

    The Chief Executive had a dialogue with the leaders of local and foreign business chambers and key business groups in Malacañang on Friday, and it was possible the idea for such a body, which has long been on her mind, according to Devanadera, finally ripened.

    She said the President has obtained Chief Justice Reynato Puno’s consent for such a council. “Apparently, it has always been in her mind already. Because she was saying, ‘Just like Ledac, I have thought of really coming up with something [like it].’”

    “So the President announced at the dialogue there that there will be something like the Ledac, a legislative-executive and judiciary advisory Council. She ordered me to prepare for the first meeting of the ‘Lejac’.”

    Devanadera said she needs to find out if the body would have to be created by law, considering that it would involve different branches of government.

    She said for the first “Lejac” meeting, it is possible that among the topics is the “action of the court and the pace of court action” on big government projects tied up in litigation.

    “We can talk about the expropriation on the road right of way because [in] SLEX [South Luzon Expressway] for example. . .They cannot implement [connect it to the Star Tollway going to Batangas port] because of the writ of possession.”

    She said the primary aim is to discuss the “interrelationship (of laws and court decisions) and the effects of decisions, let’s say, of the court . . . . The court may say that the reasons why we have this kind of decision is because the law that you have enacted does not give us some other [choice].”

    Devanadera cited the case of the Banilad Friars Land Estate in the First District of Cebu City, where the Supreme Court ruled that “all lands should revert to the government,” but this did not happen because of a technicality provided by a law “that requires that some documents must be signed by the Cabinet secretary,” or the Secretary of the Interior.

    “Unfortunately, the land title [did not have the required signature] so Congress passed a law to cure that defect of an existing law. Things like that.”

    Also, during the dialogue, the President asked Devanadera to report about the government’s victory against German firm Fraport AG at the International Center for Settlement of Investment Disputes (Icsid) of the World Bank in Washington, where the WB investment referee junked the claims of Fraport for the return of its $425-million investment in the controversial Ninoy Aquino International Airport Terminal 3.

    This drew a lot of reaction developing into a discussion of the foreign businessmen’s concerns about the antidummy law.

    “They’re just concerned about how the antidummy law will have to be complied with. There are legal theories but that was fully discussed in the decision of Icsid.”

    The Chief Executive then stressed to the businessmen that foreign investments are safe in the country for as long as they comply with Philippine laws. “That was reiterated by the President during her subsequent meeting with the different chambers of commerce and the international community.”

    Devanadera said other topics included concerns about power costs, and the growing “mismatch” between Philippine graduates and the kind of jobs available in the country. “There was a longer discussion on quality manpower because we have an oversupply of what we don’t need.”

    She added the peso was not discussed because at the time, the “market was correcting itself” and the “businessmen were very happy with the performance of our revenues.”

    Other officials at the meeting were Finance Secretary Margarito Teves, Trade Secretary Peter Favila, Energy Secretary Angelo Reyes and Bangko Sentral Governor Amando Tetangco Jr.

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