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Monday, March 03, 2008

 

Senate sets sights on $932-million
southrail investigation

By Efren L. Danao, Senior Reporter

The Senate blue-ribbon committee will look into the $932-million SouthRail project after it finishes the inquiry into the national broadband controversy. Also waiting in the wings are the TransCo and Cyber Education Project investigations.

Sen. Alan Peter Cayetano, the committee chairman, said he has only one witness for the SouthRail controversy so far, not enough to immediately start the investigation. Besides, he added that the blue-ribbon panel is still busy with the broadband issue.

Sen. Panfilo Lacson had filed a resolution calling for a Senate inquiry into the SouthRail project after broadband witness Rodolfo “Jun” Lozada Jr. testified that it was among the graft-ridden projects that had escaped public attention.

Lozada identified Anthony Hwang and a certain “Mallari” as the alleged Malacañang intermediaries who worked for the approval of the project.

“They said they will take care of Malacañang. They are the Abalos of the SouthRail project,” Lozada said, referring to resigned Chairman Benjamin Abalos Sr. of the Commission on Elections whom he had alleged to be brokering the broadband deal. Abalos denied the allegations.

Lozada alleged that the first phase of the project from Manila to Calamba, Laguna, was overpriced by 22 percent, or about $70 million.

The 558-kilometer SouthRail project seeks to rehabilitate the railway line from Manila to Legazpi City, and then build a new line from there to Sorsogon. Like the aborted $330-million national broadband project, the SouthRail will be funded by loans from the Export-Import Bank of China.

Lozada said the project was one of the three projects he had handled for the National Economic and Development Authority, the others being the national broadband and the Philippine Postal Corp. He said the latter project was “clean.”

Earlier, Sen. Joker Arroyo said he is opposed to starting the SouthRail inquiry, since Senate has not come up with the results of its investigation into the $500-million NorthRail project.

He said the Senate still has to produce a report on the “gargantuan” NorthRail project, even after concluding the inquiry in the Thirteenth Congress. For that probe, the Senate constituted itself as the committee of the whole.

   

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