Recto questions possible conflict of interest in PNR project
Senate Pro Tempore Ralph Recto. PHOTO from Ralph Recto’s office
MANILA, Philippines — Senate President Pro Tempore Ralph Recto questioned Wednesday the possible conflict of interest in the Chinese-financed project Philippine National Railways (PNR) South Long Haul connecting Metro Manila to Bicol.
Recto raised concern on the possible conflict of interest given that a Chinese firm is in charge of both the project’s management and consultancy.
“So umutang tayo, umutang ang Pilipinas for consultancy and project management? At sino yung consultant and project manager? Chinese din,” Recto said during his interpellation at the plenary of Department of Transportation’s (DOTr) proposed 2020 budget.
(So we borrowed, the Philippine borrowed for consultancy and project management? And who is the consultant and the project manager? Chinese too?)
Senator Sherwin Gatchalian, who sponsors the budget, answered affirmative: “Also Chinese firm.”
“Umutang tayo at ibabalik natin sa kanila, project management at consultancy. Sila din ang gagawa. Don’t you think malaking conflict of interest yun?” Recto said.
(We loaned and we will return it to them, project management and consultancy. They are also the one building it. Don’t you think that’s a big conflict of interest?)
“Sila ang financer, sila yung contractor, ang project management natin sila, ang consultant natin sila. Eh di walang check and balance?” he stressed.
(They are the financer, they are the contractor, they are also our project manager, they are our consultant. Then there is no check and balance?)
“Ang trabaho ng project manager, tignan yung contractor na kung niloloko ka ba o tama yung ginagawa,” Recto further said.
(What a project manager does is to check whether the contractor is fooling you or doing the right thing.)
Gatchalian, in defense, said the consultants and contractors will be “different entities” but are both from China.
“I was advised that the consultants and the contractors will be different entities in this particular case. Parehong China [Both China],” Gatchalian said.
The PNR South Long Haul project is among the projects that will be funded by Chinese overseas development assistance loans amounting to P175.32 billion.
The DOTr earlier announced it signed a consultancy contract with China Railway Design Corp. and Guangzhou Wanan Construction Supervision Co. Ltd. Consortium for the 639-kilometer project.
