Press Release
January 21, 2009

Do house cleaning before wooing investors, Loren tells government

Senator Loren Legarda said today the government would well in promoting the country's business climate if it makes first a "thorough house cleaning' before wooing foreign investors.

The Chair of the Senate Agriculture Committee, Loren cited the recent World Bank's revelation that seven firms allegedly involved in bid rigging may be turning off potential foreign investors.

Loren stressed that serious efforts to lessen, if not totally eradicate, corruption must be done, especially in this time of global financial distress where the "name of the game is anchored on confidence."

Loren made the statements in reaction to the government's economic team embarking on road show in Tokyo, Japanto convince investors that "the Philippines is a favorable business location despite the global economic crisis."

Nonetheless, Loren acknowledged the government economic team's effort to woe businessmen abroad, but added "the government must first address corruption or, at least, exert effort to obliterate the perception of widespread corruption."

"First things first," she said.

The Philippines has been getting negative remarks from foreign agencies with eerie regularity, and Loren said the perception of widespread corruption has a natural tendency for businessmen to shun investment destinations where they can become victims of corrupt activities.

It can be recalled that last December, the Philippines got the same serious failing remarks from the US Millennium Challenge Corp. (MCC), which had threatened to suspend economic assistance to the Philippines until its problem with corruption is solved.

Loren said that if the government is not in anyway involved in the corruption charges being revealed right and left, it must at least show the international scene that it does not tolerate corruption.

Earlier, the World Bank has withheld projects in phase one of the National Road Improvement and Management Program (NRIMP) until the firms allegedly involved in bid rigging are blacklisted.

News Latest News Feed