Philippine government to address World Bank corruption claims
MANILA (AFP) — The Philippine government said Tuesday it will address corruption issues raised by the World Bank that has led to 265 million dollars in funding for road-building projects being withheld.
The lender announced Monday that it had withdrawn 33 million dollars in financing for two contracts signed between 2003 and 2006 due to "strong signs of collusion and excessive pricing".
It also deferred consideration on another 232 million-dollar loan for more road projects, according to regional vice president Jim Adams in a statement from Washington which was released in Manila late Monday.
"The government supports all efforts to curb corruption," President Gloria Arroyo's legal adviser Ricardo Saludo said in a statement.
Arroyo is currently out of the country attending the Association of Southeast Asian Nations (ASEAN) leaders' summit in Singapore and has only just been briefed on the World Bank report.
"We have had many years of cooperation with the World Bank, especially in procurement reform," Saludo said.
He said the government's anti-graft agencies will "look into and act on any solid evidence of corruption."
Another Arroyo aide, Cerge Remonde, said the president recently formed a "performance team" composed of government officials and the private sector to "ensure the transparency and efficiency of road and other infrastructure projects."
Finance Secretary Margarito Teves said despite the accusations over the road project, "our other World Bank loans won?t be affected."
The country could also look elsewhere for loans, he said.
"Given our revenue situation we are in a better position to consider other options," he said.
He said the World Bank had recently described the Philippines as the best performer among Southeast Asian middle economies.
"I see no reason why they will change their view on the Philippines. Our macroeconomic fundamentals are strong."
Adams said Manila must adopt "stringent anti-corruption measures" and form a "citizen and road user" group to monitor the project before the World Bank board will consider the 232 million-dollar loan request.
The World Bank said it had originally pledged between 580 million dollars and 630 million dollars for a multi-phased national road improvement and management programme.
It disbursed about 138 million dollars between 2000 and 2007 for contracts covering the first phase of the project, while rejecting two other contracts.
The second phase of the project would have involved improvements on 450 kilometres (279 miles) of national arterial roads and bridges.
