Panelo turns down debate challenge over China loan

MANILA, Philippines — Presidential spokesman Salvador Panelo yesterday rejected senatorial bet Neri Colmenares’ challenge to a debate on a loan agreement between the Philippines and China, saying the candidate was just using the issue to gain publicity.

Colmenares, a former representative of Bayan Muna party-list, has claimed that the P3.6-billion Chico River loan deal between the two countries is disadvantageous to the Philippines because of its “exceedingly high” annual interest rate.

Colmenares added that the loan’s two percent annual interest rate is higher than the 0.25 percent yearly interest rate offered by other countries. 

Colmenares also claimed that the loan, which would partly fund an irrigation project, had clipped Congress’ power of the purse because the Philippines is obliged to include the payment in the national budget. 

Panelo accused Colmenares of politicizing the Philippines’ ties with China and stressed that the concessional interest rate was “quite close” to a Japanese loan deal, if all salient factors are considered.

Panelo also claimed that the Chico River loan agreement was reviewed, negotiated and approved by government agencies. 

Colmenares challenged Panelo to a debate and denied that he was using the issue to bolster his senatorial bid.

But Panelo turned down Colmenares’ challenge and dared the former House of Representatives member to raise his concerns before the court. 

“(Colmenares) should be commended for that but I have better things to do than to provide him the forum he desperately needs,” the spokesman said. 

“If he is not satisfied with our responses he is free to go to the courts, as his usual style for media mileage and we will be happy to oblige him there,” Panelo added. 

Panelo said the issues raised by Colmenares “have been squarely and adequately responded to by the economic managers.” 

“Challenging a publicly visible government official to a debate attracts media attention. Surely (Colmenares) knows how to grab at a media op to improve on his fledgling candidacy,” Panelo said. 

Panelo previously said the P4.3-billion Chico River project would provide a stable supply of water to around 8,700 hectares of agricultural land and benefit 4,350 farmer in the provinces of Kalinga and Cagayan.

‘Junk loan’

Claiming that it would only worsen the displacement of Filipino workers, a labor group yesterday pressed the Duterte administration to junk its loan agreement with China, which totals $24 billion.   

Migrante International said the government’s loan is marred with controversies.

“Chinese workers are not  to be blamed for stealing jobs from Filipinos. It is the unequal trade and investment agreement signed by (President) Duterte with China that is depriving Filipinos of employment opportunities,” Migrante said.

Migrante claimed that China has crafted its Belt and Road Initiative in a bid to take larger control over global trade through the entry of Chinese state-owned and private firms that require the hiring of Chinese workers.

“Unlike in traditional migrant-receiving countries, the influx of Chinese workers in the Philippines is not due to a shortage in our local labor pool but because of the conditions imposed by China’s investments and loans to the Philippines,” Migrante said.

According to Migrante, the government’s infrastructure program did not generate employment for Filipinos contrary to the claim of the Duterte administration. – With Mayen Jaymalin