Senate to investigate P50-B GMA bridge program

MANILA, Philippines - The Senate would investigate the P50-billion presidential bridge program of the Arroyo administration that was made through the United Kingdom’s Export Credits Guarantee Department in 2004.

Sen. Sergio Osmeña III disclosed the plan during the budget hearing of the Department of Public Works and Highways (DPWH) last Monday.

Osmeña asked Public Works Secretary Rogelio Singson about the deal between the Philippine government and British firm Mabey & Johnson regarding the multi-billion-peso bridge program entered into during the term of former President and now Pampanga Rep. Gloria Macapagal-Arroyo.

“The contract (with Mabey & Johnson) was terminated on Feb. 6, 2008,” Singson said.

“This was investigated by the British Parliament so this is embarrassing,” Osmeña told Singson, who was not able to provide more details on the case during questioning by the senator.

The Senate finance committee has started to scrutinize the DPWH budget for 2012.

The British parliament had investigated the bridge program in 2006.

Osmeña blocked the passage of the P125-billion budget of the DPWH at the committee level at the Senate until he gets a full explanation on the issue.

Reports said that it was suggested that several bridges under Mabey & Johnson’s previous contracts have been installed in locations that do not need bridges and the project was only implemented to get funds and votes for Arroyo and her allies in the 2004 polls.

The British parliament website had reported that there were questions on why the National Economic and Development Authority (NEDA) technical board did not require the evaluation of the bridge projects as mandated by its rules.

“So we are asking for the final time for a detailed information on these, and I hope this time we can get cooperation from your staff,” Osmeña added.

Osmeña wanted to know how much had been spent on the contracts, and Singson said P5.2 billion out of the original P10 billion.

“But the total Mabey & Johnson contracts amount to P40 billion,” Osmeña said, prompting him to move to defer the approval of the DPWH budget.

Singson said there were four contract packages involving billions of pesos, but Osmeña was concerned over the varying amounts he had on the same contracts, which differ from information in the hands of the DPWH secretary.

‘Stimulative spending’

Sen. Edgardo Angara proposed more “stimulative” spending in the face of imminent crisis, urging the DPWH to boost infrastructure development to stimulate growth and job creation.

Angara warned the Aquino administration that underspending of public funds, and the consequent slowing down of infrastructure building in the country, would undermine the country’s resilience against crisis.

“Twenty to thirty percent of every infrastructure project is spent on labor,” said Angara, vice chairman of the Senate committee on finance. “That is why infrastructure spending is important, it generates jobs in the right places, particularly in rural areas.”

The DPWH had committed to disburse more than P80 billion to help raise domestic growth.

“The DPWH has to focus its efforts on stimulative spending — that is, the people’s money spent on what will generate the most benefits and opportunities for the country,” said Angara. “We have to concentrate on employment because this is our answer not only to poverty, but also to the onset of another financial crisis.”

He stressed that stimulative spending will promote growth, income generation and job creation that will cushion the effects of a crisis.

The DPWH’s proposed budget for 2012 is P125.5 billion, which is 13.48 percent higher than the current year’s. The finance committee has yet to approve the DPWH budget.

Singson assured Osmeña of cooperation. “I am sorry that we are unable to provide you with the information you asked. I thought that after our last conversation… that we have established coordination between your staff and my staff,” Singson said.

Finance committee chairman Sen. Franklin Drilon directed the DPWH to submit the necessary documents by Thursday so that the department’s budget would also be submitted for plenary approval.

After the hearing, Drilon said the finance committee is generally satisfied with the presentation of Singson and the efforts he has taken in order to implement reforms in the DPWH.

Drilon said the questions raised were on the bridge program, which happened before Singson came into the picture.