MANILA, Philippines -- Campaigners from more than a hundred local and national organizations will gather in Quezon City on Saturday to launch a “people's petition” for the creation of an Independent Citizens' Debt Audit Commission composed of civil society leaders, political analysts and respected economists.
In a press briefing, leaders of the People Against Illegitimate Debt (PAID!) movement said the event would mark the first general assembly of its member groups and affiliate organizations and individuals. The event will also feature speakers from the debt campaigns of other countries who will share their experiences and recent major developments in the international debt movement.
Lidy Nacpil, vice president of the Freedom from Debt Coalition (FDC), said they first sounded the alarm on a full-blown fiscal and debt crisis five years ago but still, “the government failed to do what is right for the country.”
She said that among the indicators of the debt and fiscal crisis included the government's huge deficit since 1999; skyrocketing interest payments on the national government debt; and government borrowings reaching unprecedented levels.
FDC has been campaigning for an official Congressional Audit of Public Debt and Contingent Liabilities. Nacpil said the group has been working with lawmakers in the House of Representatives, especially Albay Representative Edcel Lagman, who re-filed a legislative resolution calling for an official audit of all public debts and contingent liabilities.
“We believe that an independent citizens debt audit is also crucial. Hence, together with the People Against Illegitimate Debt Movement, we are starting the process this new year,” she added.
Nacpil said the citizen's initiative would raise questions beyond the limits of the parliamentary initiatives, and put forward bolder recommendations based on people's perspectives on the problem.
PAID! leaders explained that a citizen's debt would conduct a critical, comprehensive, participatory and transparent examination of the Philippine public debt and contingent liabilities based on: data and existing studies by resource persons and organizations; studies prepared by working groups and technical teams; and, testimonies and inputs from affected communities, sectors and people's organizations.
The audit also aims to formulate policy proposals and advocacy platforms.
Nacpil recalled that in 2007, the country witnessed a lot of controversial loan agreements entered into by the current administration as well as its predecessors. The ZTE-National Broadband Network project, the questionable World Bank textbook deal, the Cyber Education Project and the Austrian Medical Waste Loan were just some examples of “illegitimate” debts.
FDC said 2007 saw the “great white elephant stampede,” referring to loan agreements and “'development projects” that were on the pipeline or had overwhelming potential of becoming “white elephant,” the label on useless yet expensive projects.
“This gives further credence to our assertion that a big chunk of debts claimed from the Philippines were spent on unnecessary and over-priced infrastructure programs and projects. These are hidden in our national government budget and expenditure books," Nacpil said.
During the 13th Congress, the debt watchdog was successful in getting the joint resolution on debt audit passed unanimously by the House of Representatives. However, it was stalled in the Senate.
