Gutoc: Public deserves honest details on China-PH loan deals, foreign debts

MANILA, Philippines — Opposition senatorial candidate Samira Gutoc on Thursday called on the Duterte administration to be more transparent and to stop dismissing valid questions on the Chinese-funded River Pump Irrigation Project in Kalinga amid the government’s growing foreign debts.

“With the country incurring more foreign debts, I appeal to our statesmen in government to be more transparent, yield to the demands of the people and start answering valid concerns now,” Gutoc, a Marawi civic leader and peace advocate, said in a statement.

“…(W)e are entering these deals at what cost? Para kanino (For whom)? I hope the administration will not just dismiss these concerns as a non-issue and opt to be more transparent,”  the former Autonomous Region in Muslim Mindanao (ARMM)  assemblywoman added.

According to the Bureau of Treasury, the country’s foreign debt reached ₱2.58 trillion by end-January. This was 2.7 percent or ₱68.68 billion higher than end-December 2018.

READ: Philippine debt up to new high of P7.494 trillion in January 

Makabayan senatorial candidate Neri Colmenares also recently surfaced a copy of the loan agreement between China and the Philippines for the Chico River Pump Irrigation Project, the first China-funded program under the administration’s “Build, build, build” infrastructure program.

READ: Ex-lawmaker raises alarm over onerous’ China loan

Gutoc echoed the concerns of her fellow Makabayan-backed candidate that the $62.09-million deal highly favored China.

“First, why did the government choose China to fund this program with a 2 percent interest rate when Japan offers a lower interest rate of 0.25 to 0.75 percent? Second, aren’t we at a disadvantaged position when a section of the contract states that our government ‘irrevocably waives any immunity on the grounds of sovereign …’ on ‘patrimonial assets and assets dedicated to commercial use?'” the senatorial candidate asked.

“Lastly, why did the government agree to Section 8.4, which indicates that the agreement ‘as well as the rights and obligations of the parties hereunder, shall be governed by and construed in accordance with the laws of China?’” she added.

READ: Palace: Colmenares politicizing China loan agreement to seek media mileage

Presidential Spokesperson Salvador Panelo earlier downplayed the issue, saying Colmenares was only raising this to boost his candidacy. Panelo also turned down Colmenares’ dare to engage in a debate.

READ: Colmenares dares Panelo to debate on PH loan agreements with China  
READ: Panelo rebuffs ‘desperate’ Colmenares: I have better things to do

Department of Finance Assistant Secretary Antonio Joselito Lambino II meanwhile claimed that the agreement was not “onerous” and was vetted by several state agencies.

READ: DOF: China loan deal vetted vs graft