The Philippine government Wednesday confirmed a million-dollar lobbying consultancy contract with an American law firm to lobby the US Congress to support President Gloria Macapagal-Arroyo-proposed Charter change for the possible shift to parliamentary-federal system of government.

"Yes there is a contract," Executive Secretary Eduardo Ermita told a news conference at the Palace, but said that it was up to National Security Adviser Norberto Gonzales Jr. to justify it.

Press Secretary Ignacio Bunye earlier denied in New York such a deal, which as reported by the Philippine Center for Investigative Journalism (PCIJ), was signed by President Arroyo on July 25, 2005, with the US-based Venable LLP, one of America's top 100 law firms, for a substantial sum of 75,000 US dollars a month, or 900,000 dollars for 12 months.

The amount, the report added, excludes "costs for travel, telephone, fax, copying," and "professional services" of up to 720 dollars per hour for Venable's senior associates. These expenses, for which no ceilings were mentioned, could double the contract cost.

Ermita said that Gonzales would send a written report to the executive secretary so he would be enlightened about the issue.

The Executive Secretary dismissed anything wrong for the government to hire a foreign lobby firm since the previous administrations also did so.

For instance, the Arroyo administration has engaged the services of a lobby firm to push for the passage of a law in US Congress for the claims of the World War II veterans from the Philippines.

The contract was reportedly signed as President Arroyo called for citizens and civil servants to tighten their belts amid surging oil prices.

Source: Xinhua