Thursday, February 21, 2008 Lawmaker wants all proposed loans submitted to Congress
SENATOR Francis Escudero on Wednesday called on Malacañang to submit all contracts and agreements entered into by the government under the official development assistance (ODA) to the oversight committee for ODA, which he chairs.
This even after the Palace had announced the suspension of 11 infrastructure projects under the ODA fund.
Escudero also said 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 so these can also be approved.
"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.
According to Escudero, the congressional oversight committee on ODA under the law is tasked to review all ODA contracts and agreements, in addition to the National Economic and Development Authority (Neda) and the Commission on Audit (COA).
"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 (RA) 8182, as amended by RA 8555," he said.
Section 8 of RA 8182, as amended by RA 8555 said: "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 (2) 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."
Escudero said 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 government including the now controversial national broadband network (NBN) 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," Escudero said.
Escudero had been calling for the convening of the congressional oversight committee for 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.
Escudero called for the convening of the oversight committee, together with Senate's counterpart in the House of Representatives, after Neda botched up a couple of ODA projects.
"The Commission on Audit has yet to present its review of each and every ODA contract entered into by government as required by law," he 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, said Escudero.
Press Secretary Ignacio Bunye said President Gloria Macapagal-Arroyo decided to cancel ODA projects adding that there is no need to borrow if the country has the funds.
The cancellation of the projects is in accordance with the plan of the President to use the benefits derived from the fiscal reforms as payback in terms of infrastructure, in terms of investing in people.
The installed projects with a total cost of P104 billion are:
* The New Communications, Navigation, Surveillance and Air Traffic Management Systems Development Project in North Luzon worth P2.64 billion;
* Regionalization of Mental Health Services in Luzon Urban Beltway, P1.32 billion;
* Redevelopment of Tacloban Airport Development Project Phase II, P1.12 billion; construction of elementary and secondary classrooms in acute shortage, P45.67 million;
* Cyber-Education Project, P26.48 billion;
* Light Rail Transit Line 1 South extension (Pasay-Bacoor) Phase 1 and 2, US$683 million;
* Mainline South Railway Project Phase 1A (Laguna-Quezon), P15.30 billion;
* LRT Line 2 Phase 2 East Extension (Santolan-Masinag, Antipolo), P10.33 billion;
* Bataan Manila Pipeline Project, US$180 million;
* LRT Line 1 North Extension (closing the MRT-LRT loop), P5.98 billion; and
* Angat Water Utilization and Aqueduct Improvement Project Phase 2 Metro Manila, P5.75 billion. (CPB/FP/Sunnex)
