Palace defends DBM amid allegations gov't owes contractors P100B

MANILA, Philippines — Malacañang Monday defended the Budget department from allegations that the government owes several private contractors billions because of corruption.

House appropriations committee chairman and Camarines Sur Rep. Rolando Andaya Jr. has claimed that the Department of Budget and Management and the Department of Public Works and Highways owe contractors about P100 billion because of a system that forces them to give kickbacks for completed projects.

Citing unnamed sources, Andaya said the release of payment from DBM to DPWH varies per engineering district, depending on the amount of kickback. 

He claimed officials were given the discretion to choose who among the contractors would receive payments, forcing contractors to resort to bribery.  

Presidential spokesman Salvador Panelo said he could not understand the connection between unsettled obligations and corruption. 

"Malabo yata iyon (That's unclear). Why should the government owe the contractors because of corruption?" presidential spokesperson Salvador Panelo said in a press briefing. 

"Why would the government owe contractors because of corruption? There seems to be no connection. There is corruption if contractors resort to bribes to get something. But if the government owes them something, I do see the connection with corruption," he added. 

Panelo said a contractor would not receive full payment if he fails to finish the project assigned to him. He said contractors, not Andaya, should file a complaint if they think the government did something wrong. 

"Congressman Andaya cannot be lawyering to these contractors. If the contractors have something to complain, they should themselves file the complaint and address their concerns to the respective department or to Department of Public Works (and Highways)," the presidential spokesman said. 

"The contractors do not seem to be complaining... how can you be more popish than the pope?" he added.