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Palace: Probe into gov't spending for 2019 SEA Games up to House


Conducting an investigation into the use of government funds for the country's hosting of the 30th Southeast Asian (SEA) Games last year is up to the House of Representatives, Malacañang said Sunday.

Presidential spokesperson Harry Roque made the remark after the Commission on Audit (COA) flagged as disadvantageous to the government the P12-billion deal for the construction of the National Government Administrative Center (NGAC) and facilities used in the sporting event.

In a statement, Roque said that the Office of the Ombudsman has already created a panel to conduct a fact-finding investigation.

"We welcome this move of the [Ombudsman] in the same way that we leave the matter to the House of Representatives to conduct an investigation, if need be, on the use of government funds during last year’s SEA Games," he said.

Roque pointed out that the SEA Games showcased not only Filipino athletes but also the country's "successful" hosting of the sporting event.

"Let us, therefore, not dishonor the men and women who gave honor and glory to the country by engaging in political innuendos and witch hunts," he added.

According to COA, the Bases Conversion Development Authority (BCDA) made the government spend P1 billion more when it incorporated the P8.5-billion construction of sports facilities and athlete's village with the initial P4.18-billion joint venture deal with Malaysian firm MTD Capital Berhad.

“If only BCDA did not incorporate the construction of its sports facilities with the NGAC joint venture project but rather subjected to the more stringent requirements of RA 6957, as amended by RA No. 7718, the government will not entail additional expenses by paying interest or construction cost," the COA said.

RA 7718 is the Act Authorizing the Financing, Construction, Operation and Maintenance of Infrastructure Projects by the Private Sector, and for Other Purposes.

But in response, the BCDA said that paying MTD Berhad over P9 billion in cash for the SEA Games facilities rather than the other option of paying them P2.2 billion annually for five years as provided for by the same JV deal saved the government as much as P1 billion.

Likewise, BCDA argued that fusing the two projects under one joint venture deal was approved by the Office of the Corporate Government Counsel, and that the Asian Development Bank (ADB) deemed that such move "was best suited for the NGAC Project that has a unique component."

Further, BCDA argued that the part of the payment to the developer MTD Berhad is the financing cost with the agreed interest rate of 7.5%—a fair and reasonable amount as provided for in the joint-venture deal.  —LBG, GMA News

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