South Korea scrapping P28-B loan? Gatchalian says it’s ‘embarrassing’

Senate finance committee chairman Sherwin Gatchalian on Wednesday lamented the move of South Korean President Lee Jae-myung to supposedly stop a P28-billion infrastructure loan project from being implemented in the Philippines due to corruption allegations. 

The Department of Finance has denied that such a 700-billion won or P28-billion development assistance loan between South Korea and the Philippines exists. 

But for Gatchalian, the supposed loan cancellation was “embarrassing” for the Philippines as a country.

“Since na sabi nila, ayaw na nilang magpahiram o suspended muna ang pahiram dahil sa corruption, nakakahiya ‘yan. Ibig sabihin nakikita nila itong mga nangyayari sa DPWH at ‘pag nagpahiram sila sa atin, tapos may ganitong korapsyon, mawawaldas ‘yung pinahiram sa atin,” the senator said. 

(Since they said they don't want to offer the loan or suspend the loan because of corruption, that's a shame. That means they see what's happening in the DPWH. When they lend us money and then there's this kind of corruption, the loan will be put to waste.) 

Gatchalian further said that this may have an impact on the country’s development of infrastructure projects. 

“‘Yan ang isang challenge rin dahil malaking bahagi ng gastusin natin dito sa budget ay infrastructure—both locally-funded at foreign-funded. So may impact ‘yan sa pagde-develop natin ng mga tulay, kalsada, mga tren,” he said. 

(That is also a challenge because a big part of what we spend in the budget is for infrastructure—both locally-funded and foreign-funded. So that has an impact on our development of bridges, roads, and trains.) 

“Kaya kailangan maimbestigahan talaga, ma-restore natin ‘yung tiwala ng tao sa atin, at ma-restore natin ang tiwala ng ibang bansa dahil hindi sila magpapahiram sa atin kung alam nilang napupunta lang sa casino o sa bulsa ng mga tiwaling opisyales,” he added. 

(That's why we really need to investigate this. We need to restore people's trust in us, as well as the trust of other countries because they won't lend us money if they know it only goes to the casino or the pockets of corrupt officials.) 

In a Facebook post, Lee announced that he has 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.

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. —AOL, GMA Integrated News