South Korea halts P28-B loan to PH citing corruption, DOF says no such loan exists

South Korean President Lee Jae-myung has stopped a 700-billion won or about P28-billion infrastructure loan project from being implemented in the Philippines, citing corruption, but the country’s Finance Department denies that such a loan exists.

In a Facebook post, Lee announced, “I have ordered an immediate halt to the proceedings for the project.”

“What is most fortunate is that the project has not yet commenced, meaning funds such as the Economic Development Cooperation Fund (EDCF) support have not been expanded,” the South Korean leader said.

“There is significant meaning in preventing the unnecessary waste of 700 billion Korean won in taxpayer money and preemptively blocking risks that could lead to poor management and corruption,” Lee added.

He also posted a link of a report by The Hankyoreh about the halt of proceeding with the Philippines’ request in 2023, through EDCF, for a loan to construct 350 bridges across the country. 

The South Korean chief executive’s announcement came in the midst of a corruption scandal in the Philippines involving contractors for flood control projects, government officials, and lawmakers.

The Department of Finance (DOF), however, issued a statement that it “categorically clarifies that no such loan exists” concerning the supposed P28-billion development assistance loan between South Korea and the Philippines.

“Nevertheless, we reaffirm to our bilateral partners that the Philippine government will match their trust and confidence with full transparency and accountability,” the DOF said.

Lee ended his statement by citing the media’s role “as a watchdog of power and a salt that prevents societal corruption, playing a pivotal role in building a fair world.”

“I deeply appreciate the media's courage and efforts in widely revealing the truth through this investigative report and ensuring the public's right to know,” the South Korean leader said. —AOL, GMA Integrated News