ROXAS ON COA REPORT: IS OVERPRICING THE NORM?
PUSHES STRONGER CHECKS ON ODA PROJECTS

Senator Mar Roxas today decried the irregularities attendant to Overseas Development Assistance (ODA)-funded projects as exposed by the Commission on Audit (COA), which has unearthed concrete instances of overpricing, non-completion, unliquidated advances, among others--involving billions of pesos.

"Is overpricing the norm? We're not talking of loose change here - this is our people's money in the billions of dollars apparently being stolen or frivolously spent," Roxas, Chairman of the Senate Committee on Trade and Commerce said.

"We should heed the COA's recommendation for a thorough review of the process by which ODA funds are used and approved. The Senate is already into this with its probe into the ZTE-National Broadband Network deal mess, where the executive branch's cooperation is clearly lacking," he added.

Roxas pointed out that while the necessary checks are in place to ensure transparency and fairness in government procurement, there are certain "exceptions to the rule" that eventually become loopholes, where billions in anomalous transactions leak through.

"As a nation, we have agreed to subject all government procurement to bidding and other forms of price competition. Pero dito sa mga proyekto na pinopondohan ng ODA, para bang nagiging 'exception to the rule,' kaya nagkakaroon ng ganitong mga anomalya," Roxas said.

"Bilyun-bilyon mula sa mga maanomalyang ODA project ang napupunta sa kung kani-kanino lamang. Pero hindi naman maibigay ng gobyerno sa mga tsuper, maybahay at konsyumer ang P4 kada litro ng diesel o P65 kada 11-kilo tangke ng LPG mula sa pagsuspinde ng VAT sa langis," he added.

Roxas had earlier filed Senate Bill No. 1793 to enforce the rule that even executive agreements are subject to public bidding, and SB 1794, to tighten rules on ODA loans and which would require all ODA-funded projects to undergo Senate ratification.

The Liberal Party President said the current Senate investigation on the terminated NBN deal was "a good start" in finding ways to make the approval process for government projects more transparent.

"I call on the cabinet to cooperate with the Senate instead of dodging the issue by invoking executive privilege. There is no legitimate reason for holding back the Senate's efforts to come up with a better procurement system," Roxas said.

"Oras na para tigilan ang mga ma-anomalyang transaksyon, na lumulusot dahil hindi dumadaan sa bidding. Oras na rin para ibunyag sa publiko ang totoo kung paano ginagastos ng pamahalaan ang pera nila," he added.

According to the COA's report in 2006, commitments for 301 ODA loans as of end-2006 totalled almost $10 billion, or more than P860 billion. Of these, P107 billion worth of loans were cancelled and P102 million were suspended due to non-compliance with procurement rules.

Involved in these loans were "unnecessary and overpriced" land acquisitions that cost more than P36 billion; double-recording, unrecorded or erroneous transactions that resulted into a net overstatement of P2.6 billion; unliquidated cash advances and fund transfers amounting to P1.56 billion; "irregular, unnecessary and uneconomical use of funds" worth P475 million; and P13.6 million worth of "excessive and defective" school implements, among others.