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Tuesday, September 04, 2007

 

Budget hearing starts

By Maricel V. Cruz Reporter

The House Committee on Appropriations on Monday began deliberations on the P1.227-trillion national budget for 2008, with the minority questioning the supposed $1.8 billion “for unspecified projects.”

House Minority Leader Ronaldo Zamora of San Juan grilled Budget Secretary Rolando Andaya Jr. on what he perceived to be suspicious amounts itemized in the budget. He feared that the amount could allow the Arroyo administration to forge contracts with foreign firms, like the controversial Cyber-Education Project of the Department of Education and the National Broadband Network-ZTE Corp. with China.

“I just got the presentation that we are borrowing $1.8 billion for unspecified projects. $1.8 billion distinguished colleagues!” Zamora told the committee, headed by Rep. Edcel Lagman of Albay.

Under the proposed budget, a total of P682 billion is allocated for debt-servicing, comprising almost half of the capital expenditures for next year.

Given this, Zamora said it appears that the education sector is no longer the top priority of the government.

Andaya did not categorically answer Zamora’s query into the $1.8-billion borrowings. He also said that the so-called Cyber-Education Project is “not in the budget.”

“I have likewise read this project in the newspaper, but from the Department of Bud­get and Management standpoint there is no loan package to talk about,” said Andaya, adding that there is no basis to have it reflected in the 2008 budget under the Department of Education.

“But we will reflect it sooner or later, Mr. Secretary on the budget, if needed?” Zamora asked.

Andaya said, “Mr. Chairman, I cannot venture into an answer I haven’t seen any loan agreement at this point in time.”

Zamora further said: “But when we see the loan agreements, Mr. Secretary, and that includes the ZTE, more than 330 million dollars, cyber education more than 400 million dollars plus un-specified loans that were supposed to have been signed in… aside from other contracts. How do we pay for that Mr. Secretary?”

Andaya answered Zamora by saying: “First of all, as regards to the 2008 budget Mr. Chairman neither the ZTE is contained in the 2008 budget presentation.”

“I understand when the Budget Secretary tells me that it is not in the budget, it is not in next year’s budget, and should not be in the budget. For all of the talk in the newspapers about kickbacks here, about illegal conversations there, about impeachment proceedings, about this and that individual, isn’t it time for Congressman Zamora to get a plain and simple answer like, ‘Congressman Zamora you have nothing to fear because there is no contract, there will be no contracts and we will fall on our soil if we are found to be lying to the Committee on Appropriations on this important issue,’” Zamora said.

Having the $1.8-billion borrowings unexplained by the budget department, Zamora called on the government to reexamine its priorities.

   
 

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