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By Efren L. Danao, Senior Reporter
Two new Senate probes are expected to start
today—one on the deferment of the World Bank loans to the
Philippines because of alleged anomalies, the other on reported
violations of environmental laws by miners.
Leading the investigation on the loan suspension
is the Senate Committee on Economic Affairs chaired by Sen. Loren
Legarda. The World Bank suspended loans to the Philippines because
of alleged irregularities in the bidding and implementation of the
National Road Improvement and Management Program (NRIMP).
Legarda said her panel would pursue its
investigation despite the announcement by Peter Stephens, the World
Bank spokesman for East Asia and the Pacific, that the bank was
ready to fund the second phase of the road project worth $232
million—if government provides safeguards against anomalies.
The World Bank had rejected two large road
contracts in three successive rounds of bidding “because of strong
signs of collusion and excessive pricing.”
Legarda said she would invite the contractors in
the questioned road projects in Surigao and Negros Occidental,
including the China State Construction Engineering Corp. represented
by a certain Fu Yu Cheng. Fu had recently denied any involvement in
alleged bid-rigging.
The losing bidders for the World Bank-funded
projects were China Road and Bridge Corp., China Geo Engineering
Corp., China Wuji Co, Italian-Thai Development Public Co., C.M.
Pancho Construction and Cavite Ideal International Construction and
Development Corp.
Besides Fu, Legarda’s committee also invited
Budget Secretary Rolando Andaya Jr., National Economic Development
Authority (NEDA) Director General Augusto Santos and Public Works
Secretary Hermogenes Ebdane Jr.
Earlier, Andaya blamed the World Bank for the
alleged irregularity in the bidding, saying the bank’s system was
“more prone to corruption.” He maintained that the Philippine
system of electronic bidding was superior to that of the World Bank.
Ebdane had said the government would continue
with the National Road Improvement and Management Program even
without World Bank funding.
Miners probe
Meanwhile, the Senate Committee on Environment
and Natural Resources headed by Sen. Pia Cayetano will look into
alleged violations of environmental safeguards by small-scale miners
and encroachment of ancestral lands by mining firms without the
consent of indigenous peoples in the area. The hearing aims to look
at the amending or repealing the Philippine Mining Act of 1995.
Two bills filed by Legarda and Cayetano seek to
strengthen the decision-making of local governments with regards to
mining and make mining firms more directly accountable to the
community where they are operating.
The amendatory bills were filed amid reports of
violations of environmental safeguards by mining firms. Cayetano’s
bill requires mining firms to shoulder the medical treatment of
residents for any illnesses attributable to the mining activity.
Legarda’s bill seeks to exempt from mining
applications areas declared as “no mining zones” by local
governments.
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