Business groups: Flood control issue may affect investments, loans

The controversies surrounding the flood control projects may affect foreign investments in the Philippines and loans to the country, some business groups said.

According to Sandra Aguinaldo’s Thursday report on “24 Oras,” business leaders say foreign investors are paying attention to the flood control project news, and may back out of investing.

“Sa ganitong lakas ng ingay sa politika ngayon, marami ang magda-dalawang isip at magho-hold back. Mag i-invest ka ba sa ganitong klaseng klima, sa ganitong klaseng environment,” said economist Emmanuel Leyco, fellow at the Center for People Empowerment in Governance.

(With the current noise in politics, many will have second thoughts and hold back. Would you invest in this kind of climate, this kind of environment?)

The Philippine Chamber of Commerce and Industry said if the issue is not resolved, foreign institutions may hold back in giving loans to the Philippines.

“They are careful also kung ganitong lumalabas ang pera nila, hindi naman properly used for the projects. Ang pinakatalagang nadismaya kami is the staggering amount. You can imagine how much can be done with those billions, you can actually build a new city,” PCCI chairperson George Barcelon said.

(They are careful if the money they provided was not properly used for the projects. We’re really disappointed in the staggering amount. You can imagine how much can be done with those billions, you can actually build a new city.)

South Korean President Lee Jae-myung earlier announced that he had stopped a P28-billion infrastructure loan project to the Philippines, supposedly for a bridge construction, citing corruption, though the Department of Finance claimed the country scrapped the loan with Korea in 2024 since it plans to borrow money from France.

PCCI and the Makati Business Club expressed support for the Marcos administration’s move to fight corruption in infrastructure projects.

The Makati Business Club also expressed alarm at the amount of funds allocated to flood control projects over the years, especially with the persistent flooding that occurs in several parts of the country.

It said the convergence and special support programs under the national budget should be scrutinized.

The construction of multi-purpose buildings, local roads, streetlights, basketball courts, and waiting sheds are under these programs, in which the utilization of funds is hard to monitor.

Leyco added that the Filipino public knows that the problem is not only with the contractors.

“Sa lawak at tindi ng katiwalian na ito, hindi naman naniniwala ang mga mamayan na yung mga kontratista lamang ang nag-isip at nakapagpatupad ng proyekto na punong puno ng katiwalian,” Leyco said.

(With the issue’s impact and scope, Filipinos do not believe that only contractors are involved in and implement these projects that are full of corruption.)

“Sa PDAF scam, at the end of the day, eh alam natin na ilang politicians na nakulong sa detention. So, I take with this gravity of this flood protection scam, marami hindi lang yung nasa political position pero dito sa government agencies like DPWH,” Barcelona said.

(In the Priority Development Assistance Fund scam, we know some politicians were detained. So, I take with this gravity of this flood protection scam that not only politicians are involved but also officials of government agencies like the Department of Public Works and Highways.

“Some of the former or incumbent [officials] went to casinos and lost almost one billion. We’ll have to do the money trail,” he added. — Mariel Celine Serquiña/BM, GMA Integrated News