“INFRASTRUCTURE deals that had been detected to a negative report by the Commission on Audit, should outrightly postpone or cancel by the new government.”
These were the statements made by the Committees on Trade and Commerce and Ways and Means chair Councilor George Goking to economic planners of the incoming administration, Friday.
“For an economic stimulant (funds to be used) to recover the economy, we need to review further the ongoing infrastructure projects, either local or national under the Duterte administration,” Goking said.
He said the government has to postpone public works' controversial deals at the onset of the pandemic to pour its resources on social interventions.
Goking said the Budget and Management department (DBM) earlier attributed the recovery in infrastructure spending to the lower base in 2020 due to the cancellation of some projects.
In an earlier report, COA said that the Kaliwa Dam project, in which the audit commission said that there appeared to have been a simulated bid by Chinese contractors.
Goking said these types of activities should have no place under a new government.
Suspending controversial infrastructure deals undertaken under the current administration would be an immediate source of fiscal space in infrastructure projects, according to Goking.
In the public works department list of priority projects proposed for implementation under the implementing rules and regulations of Build-Operate-Transfer law according to Goking are the Villanueva-Cagayan de Oro City-Opol Expressway and Opol-Naawan Expressway.
“At this time, we need an economic stimulant,” Goking said adding that the massive spending on infrastructure projects is critical to other government agencies' social programs and cash aids.
The government resumed the faster pace of its infrastructure expenses last year with nearly P900 billion spent on public works, made possible by the easing of quarantine restrictions nationwide.
According to the DBM, infrastructure spending spiked by 31 percent to P895.1 billion in 2021 from P681.5 billion in 2020.
The DBM said infrastructure disbursements during the period exceeded what the government allocated, reaching P761.2 billion.
Similarly, the DBM said the Department of Public Works and Highways carried out multiple road network, flood control and building construction projects throughout 2021.
Goking added the new NEDA chief, should prioritize which infrastructure projects to continue, suspend, cancel or transform into public-private partnerships in order to effectively manage the country’s climbing debt load.
Meanwhile, in an earlier statement issued by the DPWH said implementation of large-scale infrastructure projects properly reviewed by the NEDA-Investment Coordination Committee (NEDA-ICC) board deserves continuity to ensure economic progress and recovery from the pandemic. (Ben Balce)
