ROXAS TO DoF: RECONSIDER CHINA LOAN
SAYS SIGNING OF LOAN PACT AGAINST NATIONAL INTEREST

Senator Mar Roxas urged the Department of Finance to reconsider the government's $1.8-billion loan contract, which it has signed with China Export and Import Bank to finance the $330-million ZTE contract, among other big-ticket projects, despite unresolved questions about the controversial broadband project.

"Sa ating kasaysayan, ang mga kontratang minadali at ikinubli sa publiko ay naging sanhi ng sigalot at pang-aabuso," he said, citing contracts involving Independent Power Producers, the Venable agreement, among others.

"Now, we are signing an P81-to-P90-billion* loan agreement for a project whose contract we have yet to see, and which obviously was the result of political lobby rather than public interest," he added.

To finance the total loan amount in the future, he said each Filipino** will have to shoulder P920 to P1,023. This is on top of the outstanding debt of the national government of P3.676 trillion as of end-2006, or P45,383 each Filipino.

"Contrary to the position of the DoF, it is highly unusual for government to enter into a blanket loan with the China Ex-Im Bank without defining what this loan is for," he said.

Roxas is disappointed with the turn of events surrounding the NBN project, as these send signals that the Philippine government has not practiced transparency, fairness and good judgment in entering into another foreign loan. Even the loss of the contract documents, and the eventual "reconstitution" of the same, makes the entire transaction highly irregular.

The senator said the broadband project is not even a priority project in the minds of the people. "The executive branch is imposing on the people another dollar-denominated loan without explaining to them what this loan is for. Worse, we may soon start paying this loan without even seeing the ZTE contract itself. I urge the finance department to dump the ZTE project and seriously consider not taking the loan," Roxas said.

The Liberal Party stalwart reiterated his warning that the opening of Philippine communication lines to entities of foreign nations would have national security implications.

"Malayo ang broadband sa bituka ng mga mahihirap. Bakit ito ang uunahin natin samantalang may ilang barangay pa nga sa ating bansa na ni walang ilaw at tubig, paaralan at pampublikong gamutan?"

"I ask all these questions in behalf of taxpayers who deserve a sincere and thorough explanation. After all, this entire loan will be shouldered by all Filipinos, many of who don't even know what a broadband is," Roxas stressed.

*$1=P45 to P50

**NSO projected population (2007) of 88 million