Updated (8:35 p.m.)
Anti-corruption group Filipinos Opposed to Corruption and Unjust System (FOCUS) has called on the Office of the Ombudsman to look into the $167-billion loan from China for the government’s “Build Build Build” program, which is allegedly disadvantageous for the country.
“In behalf of the Filipino people, FOCUS […] would like to request your Honorable Office to conduct an inquiry on the controversial $167 billion from the Chinese government to finance the infrastructure projects of incumbent President Rodrigo Roa Duterte,” FOCUS said on Monday in a letter to Ombudsman Samuel Martires.
When asked for a comment on the letter, Presidential Spokesperon Harry Roque said they are leaving the matter to the Ombudsman.
“Let Ombudsman investigate,” he said.
According to FOCUS, the loan may not be to the country’s interest as Chinese government is asserting its claim on disputed islands.
“The motive of China in providing loan is highly suspicious considering that they are claiming ownership on the West Philippine Sea,” they explained.
FOCUS also highlighted the role of Finance Secretary Carlos Dominguez in the acquisition of the Chinese loan, and his part as former director of Radstock Securities Ltd. which secured a compromise agreement for the Philippine National Construction Corporation (PNCC) loan from Japanese firm Marubeni.
The group claimed that under Dominguez, Radstock collected P6.19 billion from PNCC as settlement for a P2-billion loan acquired 26 years ago. They explained that while the loan has a smaller value compared to the interests that have piled up over the years, still it’s a heavy burden for Filipinos.
They also noted that this situation may be repeated even if the current loan could really help the country boost its infrastructure projects as they believe China would use it for the so-called “debt-trap diplomacy.”
“Although the loan could really help in building infrastructure projects in the country, we should be aware that the strategy of China is known as debt-trap diplomacy that has victimized poor countries in the past decades,” FOCUS explained.
“The payment of the loan is more disturbing since the loan is very expensive and to cope with the same, ordinary citizens shall carry the burden by expecting more or higher taxes to be able to pay back China,” it noted.— WITH REPORTS FROM NESTOR CORRALES /ee