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  • Why only 11 ODA projects?
     
    By Rene Acosta
    Reporter

    IT may do well for the government to audit all public debts and not stop with just the suspension of official development assistance (ODA) funding for 11 projects because many more may be qualified for the ax, said an antidebt advocate Wednesday.

    The Freedom from Debt Coalition (FDC) said the administration should do the wholesale audit even if this leads to the suspension of more projects and the filing of charges against responsible officials in order to prove its claim of transparency and accountability.

    The FDC also asked the Senate and the House of Representatives to immediately pass Joint Resolution 04 calling for a congressional audit of all public-sector debt and all contingent liabilities.

    This would serve not only to oversee the executive’s own investigations but would assert the congressional power of the purse.

    As if in response, it was soon reported that Sen. Francis “Chiz” Escudero demanded that Malacañang submit all ODA contracts and agreements to the oversight committee for ODA that he chairs.

    He also said that existing, proposed, and potential “project loans and program loans” for future fiscal years should be submitted ahead to Congress together with the proposed national budget for proper and unhurried appreciation.

    “The practice now is to submit the budget with program loans and project loans proceeds already embedded in it. What we want are prospective ones, not the ones that are already signed, sealed and delivered,” he said.

    Earlier, the government announced it was suspending ODA funding for the cyber-education project, the phase one of the Southrail project, and nine others suspected to have been stained with anomalies.

    The FDC said the suspension was only logical in view of a declaration by Congress that “no amount shall be used for the payment of interest payments on debts which are challenged as fraudulent, wasteful and/or useless.”

    According to the FDC, some of these loans include the Austria Medical Waste Project, Small Coconut Farms Development Project and the Telepono sa Barangay Project.

    The FDC faulted Press Secretary Ignacio Bunye for trying to mitigate the situation by saying the suspension was decided upon because there is enough local financing to cover the projects.

    “Evasive to say the least. His statement conveniently ignores the fact that the suspension precedes the controversies which surrounded the ZTE-NBN deal, also another loan-financed project,” said FDC secretary-general Mario Tanchuling.

    Tanchuling said the absence of a corresponding investigation prior to the suspension still raises a question. “For one, the administration may have all along been prepared to suspend a handful of projects as token palliative to dilute the call for a more comprehensive systemic change following the Senate investigation on the ZTE-NBN deal.”

    “Also, FDC wonders if the recent suspension is in anyway related to Malacañang’s silence on the results of Administrative Order 210, which was primarily meant to investigate $232-million World Bank ODA for road projects,” added Tanchuling.

    Escudero stressed that under the law, the congressional oversight committee on ODA is tasked to review all ODA contracts and agreements, in addition to the Neda and the Commission on Audit.

    “If Malacañang, through the Procurement Transparency Group [PTG] that it created, had submitted these ODA contracts to the business sector for scrutiny and review, it is but proper that my committee be also given copies as this is readily mandated by Republic Act 8182, as amended by RA 8555,” Escudero said.

    Section 8 of RA 8182, as amended by RA 8555, says that “pursuant to its constitutional duties, the Executive Department, particularly Neda, the Commission on Audit and Congress shall discharge oversight functions, to wit: (c) there shall be a Congressional Oversight Committee composed of the Chairmen of the Committee on Ways and Means of both the Senate and the House representing the majority and two members each from the Senate and the House representing the minority to be designated by the leaders of the majority and minority in the respective chambers.”

    He said that more than the private sector and the PTG, it is the oversight committee on ODA that has the power to look into these contracts entered into by the government including the now controversial national broadband network project.

    “For greater transparency in all government transactions, Malacañang should heed this call, otherwise, this PTG is just another moro-moro in the fashion of the Ombudsman’s initiative to investigate the ZTE scandal.”

    Senator Escudero had been calling for the convening of the congressional oversight committee for overseas development assistance (ODA) to prevent and avoid wanton approval of loans contracted with neither congressional consultation nor consent. “Congress has been reduced to a rubber stamp, with no choice but to provide budgetary cover, because it cannot rescind   what have become sovereign guarantees,” he said.

    “I have been calling for the convening of the oversight committee, together with our counterpart in the Lower House, after Neda botched a couple of ODA projects,  particularly in this NBN-ZTE deal and the Commission on Audit has yet to present its review of each ODA contract entered into by government as required by law,” Escudero said.

    If this scheme will be followed then future loans will have the effect of getting “the imprimatur” of Congress and wanton loans like the ZTE and Cyber Ed projects could be already avoided, he said.

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