Bayan press statement
10 February 2008

Umbrella group Bagong Alyansang Makabayan (Bayan) called for a suspension of all ongoing and approved infrastructure projects funded by foreign loans in the country in light of the testimony of Rodolfo Lozada Jr. The multi-sectoral alliance also demanded for an independent and credible review of all these projects to ensure that they are not overpriced and that Filipino taxpayers will not be burdened with odious foreign debts.

The group also reiterated its earlier call that the Arroyo couple and all those involved in the abduction and harassment of Lozada be prosecuted. It added that justice will only be complete if the onerous and anomalous projects are scrapped.

Lozada disclosed in his Senate testimony that aside from the national broadband network (NBN) project, which was overpriced by $130 million, the Southrail project is also overpriced by $70 million. The padded costs cover the commissions and kickbacks of high-level public officials including First Gentleman Jose Miguel Arroyo and former Commission on Elections (Comelec) chair Benjamin Abalos.

Bayan said that the suspension and review of all infrastructure projects funded by foreign loans is urgent because as Lozada narrated, “there are other more that have escaped scrutiny”.

The group maintained that the people are oppressed thrice over by these anomalous transactions – firstly, by repaying debts bloated hugely by kickbacks; secondly, by repaying debts used for projects that do not benefit them; and thirdly, by being deprived of social services as public resources are diverted to pay for these debts.

Bayan proposed that the initial review cover the loan agreements contracted by Mrs. Gloria Arroyo with the Chinese government. They include the Northrail project ($1.07 billion); Banaoang Pump Irrigation project ($35 million); General Santos Fishing Port Complex Expansion/Improvement project ($24.99 million); Manila South Railway project phase 1 ($314.8 million); and the Non-Intrusive Container Inspection System project phase 2 ($115 million). (END)