COA Questions the P767.72 Million Paid by Aquino Admin to Foreign Law Firms for the PH Arbitration Case

The Commission on Audit (COA) questioned the Office of the Solicitor General for paying over P767.72 million in attorney's fees for foreign law firms that represented the Philippines in three international cases during the term of former President Noynoy Aquino.


COA said in the 2017 OSG Annual Audit Report released recently stated that "The engagement of private lawyers and law firms for legal services and professional fees was unauthorized due to the absence of prior acquiescence of the OSG and written concurrence of COA pursuant to COA Circular No. 95-011, as amended by COA Circular No. 980002 dated June 9, 1998,”



According to COA, they were never informed about the engagement of the foreign lawyers that were commissioned by Office of the Solicitor General (OSG) during the Aquino administration to represent the country in the arbitration cases filed by the Philippines against China in connection with the international law issues relative to the West Philippine Sea (WPS) dispute.

COA stated that based on their audit observation was raised against the OSG for hiring two foreign private law firms for legal services in connection with two cases filed against the Philippine government before the International Centre for Settlement of Investment Disputes (ICSID).

The West Philippine Sea case filed by the Aquino admin before the International Arbitral Tribunal cost P149,060,125.61 in attorney fees paid to Foley Hoag LLP from 2013 to 2017. The Philippines stand on the legal issues on the United Nations Convention on the Law of the Sea was upheld by the tribunal.

The OSG and the Department of Transportation commissioned the Paul Hastings, Janofsky for the legal dispute in the deal between government and the Metro Rail Transit Corporation.



For the same case, government also engaged the legal services of Gibson, Dunn, and Crutcher (GDC) LLP. COA said government paid P200,809,586.84 to the two international law firms.

The largest professional fee for professional services paid by government was for White and Case LLP which received P417,853,362.24 to provide legal assistance in the international arbitration case filed by the BaggerwerkenDeCloedt En Zoon N.V. against the Philippines.

The Philippines was ordered to pay the Belgian investor at least $16 million as a result of the refusal of former President Aquino to honor a Laguna Lake dredging contract that his predecessor, former President Gloria MacapagalArroyo, entered into with Baggerwerken.

Source: Manila Bulletin

COA Questions the P767.72 Million Paid by Aquino Admin to Foreign Law Firms for the PH Arbitration Case COA Questions the P767.72 Million Paid by Aquino Admin to Foreign Law Firms for the PH Arbitration Case Reviewed by Phil Newsome on June 04, 2018 Rating: 5
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