Government contractors reveal that the unpaid accounts go as far back as 1997. However, the bulk of the amount was incurred in the last two years.
According to NACAP, the amount has actually reached P8 billion in the middle of this year but the Department of Public Works and Highways (DPWH) was able to pay P2 billion recently to cover its current accounts.
"We virtually loaned our money to the government for the projects, now it cannot pay us back. What are we to do?" said NACAP vice president Roberto Cerada.
The contractors are getting anxious that the government is set to bid out more projects in December.
"How does the government expect to pay for all that?" asked Cerada. "We should be paid first."
The NACAP official said they understand the government’s dire financial condition due to the massive budget deficit but said it is not totally helpless.
"If a father does not have money to feed his children, he would borrow money. The government can easily borrow money from banks to pay us off. Why is it not doing that?" he said.
Cerada explained though that the government would normally issue treasury bills to guarantee its loans from banks but it will raise interest rates, which will trigger howls of protests from big businesses with huge debts.
"Historically," Cerada said, "all our Presidents had their downfall when interest rates soared so that is the reason the Arroyo administration is not borrowing."